The servicing carriers for the association may be competitively bid as provided for in this subsection. Separate bidding processes may be done for private passenger and commercial automobile insurance. If the carriers are competitively bid, then the director or his designee must appoint a committee or committees of individuals as he considers qualified to establish standards and procedures for the consideration and evaluation of bids. The committee must include incentive and disincentive programs that encourage proper claims processing of policies and claims handling. Insurers, or other vendors in conjunction with a licensed insurer, may submit bids. The committee or committees must evaluate and award contracts pursuant to the final approval of the director or his designee. The director may require a bid fee to cover the expenses of implementing this section. A serving carrier may be an entity other than a licensed insurance carrier if that entity can prove to the satisfaction of the director that it has the experience and capability to perform the duties of a servicing carrier and if that entity has a licensed automobile insurance carrier to which a policyholder can be issued an automobile insurance policy.