No Cost - Sole Source - Assigned Risk Administrator

This is a sole source procurement by the Illinois Department of Insurance (DOI) to engage the National Council on Compensation Insurance, Inc. (NCCI) as the Plan Administrator for the Illinois Workers' Compensation Assigned Risk Plan. NCCI will provide specialized services including creating and publishing a uniform classification system, calculating rates or loss costs, creating and publishing an experience rating plan, assisting employers with the assigned risk application process, and supporting assigned carriers under the Workers Compensation Insurance Plan (WCIP). The contract will be for a 3-year term from June 1, 2021 to June 1, 2024, with no renewal options. The DOI has determined that NCCI is the only entity that meets the qualifications to serve as the Plan Administrator, as defined in the Illinois Administrative Code. There will be a public hearing on March 17, 2021 to receive comments on the sole source justification, unless an interested party submits written comments or requests a hearing by March 12, 2021.

This is a no-cost contract for the DOI, as NCCI's compensation comes from the Assigned Risk Plan participants rather than state appropriations. If the sole source is not approved, the DOI would need to establish an internal unit at an estimated annual cost of $2 million to perform the required plan administration functions, which would put the state in violation of statutory requirements. There is no incumbent identified, as this appears to be an ongoing requirement. The procurement is not subject to any set-aside designations or restrictions on the types of organizations that can respond.