Title
Worker's Compensation Third Party Administration Claims Management Services, RFP HR 21-027 (Ordinance S-48491)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Cannon Cochran Management Services, Inc. (CCMSI) to provide third party administration of claims management services for the City's Worker's Compensation Program in an amount not to exceed $15,000,000 for a five-year period. Further request to authorize the City Controller to disburse all funds related to this item.
Report
Summary
The City's Worker's Compensation Program has been self-insured since April 2003. The services of a qualified Third Party Administrator (TPA) is required to provide administration of claims management services. The TPA is responsible for the investigation and evaluation of claims to ensure the proper disposition and medical management of each claim, and to follow established City's claim procedures and adhere to claims administration requirements as required by federal, state, and/or local laws. The existing contract for Worker's compensation Third Party Administration Claims Management Services is set to expire Jun. 30, 2022.
Procurement Information
RFP HR 21-027 was conducted in accordance with Administrative Regulation 3.10. The Human Resources Department received four proposals. The Notice of Solicitation was emailed to 325 vendors registered in ProcurePHX.
The offers were scored using the following criteria: Qualifications, Experience and References (250 points), Method of Approach (450 points) and pricing (300 points). Evaluation occurred by a five-person panel. The evaluation panel determined that one offer was within the competitive range. A Best and Final Offer was conducted, which resulted in a price reduction of approximately $1.6 million. After reviewing the BAFO response, it was the consensus of the evaluation committee to recommend awarding the contract to Cannon Cochran Management Services, Inc.
The consensus scores are as follows:
Cannon Cochran Management Services, Inc. 928 points
CorVel Enterprise, Comp., Inc. 706 points
Sedgwick Claims Management Services, Inc. 650 points
TRISTAR Claims Management Services, Inc. 610 points
The Acting Human Resources Director recommends the offer from Cannon Cochran Management Services, Inc., be accepted as the highest scored, responsive and responsible offer most advantageous to the City.
Contract Term
The five-year contract term shall begin on or about Jul. 1, 2022.
Financial Impact
The five-year aggregate contract value will not exceed $15,000,000. Funds are available in the Worker's Compensation Program Trust Account.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Human Resources Department.