State of California

M E M O R A N D U M

									Date:  October 25, 1994
TO:		PERSONNEL MANAGEMENT LIAISONS		Reference Code:  94-60

		THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:

		ALL PERSONNEL OFFICERS, PERSONNEL TRANSACTION
		SUPERVISORS AND PERSONNEL TRANSACTION STAFF


FROM:	Department of Personnel Administration
		Benefits and Training Division


SUBJECT:	VISION PROGRAM - REQUEST FOR PROPOSAL


		This is to advise you that the Department of Personnel Administration 
(DPA) has decided to reject "any and all bids" regarding the Vision 
Program Request for Proposal (RFP) issued in April 1994.  All bidders 
have been formally notified of our decision.

		It is our intention to begin a new procurement process by the end of the 
year.  The new procurement process will be modified to correct any 
identified discrepancies in the original process and to provide all 
interested parties with equal opportunity to present their 
qualifications for consideration.  Further, staff will work with any 
interested parties to clarify the Minority, Women and Disabled Business 
Enterprise (MBE/WBE/DVBE) requirements.  All interested parties will be 
sent a copy of the new proposal.

		The DPA takes this action in light of numerous protests regarding this 
procurement and the prospect of long and costly litigation which will 
not serve the best interest of our employees or the taxpayers.  Further, 
upon advice from counsel, it is apparent to us that regardless of the 
outcome of the administrative protest or ensuing litigation it is 
possible that the procurement may have to be redone in any event.  We 
are not inclined to prolong a process which would result in excessive 
expense to all parties, public discord and damage to the bidding 
process.

		The contract with the current vision carrier, Vision Service Plan (VSP), 
will expire on December 31, 1994.  The DPA intends to seek approval from 
the Department of General Services, Office of Procurement, to extend 
VSP's contract to provide interim vision care coverage to employees.  
Employees will receive the same level of benefits with no disruption in 
service.

		Any questions regarding this information may be directed to Susan 
Barnes, Vision Program Coordinator, at (916) 324-0432.




		Patricia Pavone, Chief
		Benefits and Training Division