TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 20, 2014
COMMITTEE ON Procurement
Mr. David St. Pierre, Executive Director
Title
Authority to increase the purchase order and amend the agreement for Contract 12-RFP-34 for a Third-Party Administrator for Workers' Compensation and Other Services, with PMA Management Corp. in an amount of $7,000.00, from an amount of $528,759.50 to an amount not to exceed $535,759.50, Account 101-25000-601170, Purchase Order 3076578
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Dear Sir:
On February 7, 2013, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with PMA Management Corp. to administer Workers' Compensation claims and related services for the District in an amount not to exceed $395,000.00. The original agreement term is for one year, with options to renew in years two and three. The contract will expire on April 15, 2015.
As of November 7, 2014, the attached list of change orders has been approved. The affect of these change orders resulted in an increase in the amount of $133,759.50 from the original amount awarded of $395,000.00. The current contract value is $528,759.50. The prior approved change orders reflect a 33.863% increase in the original contract value.
The change order increase requested in this letter is required to assure adequate funding for the workers' compensation claims handling services that include the daily data feed, Section 111 reporting, and Utilization Review. This change order is in compliance with the Illinois Criminal Code because it is germane to the contract as signed, and is in the best interest of the District.
In view of the foregoing, it is requested that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the purchase order to PMA Management Corp. in an amount of $7,000.00 (1.32 % of the current contract value) from an amount of $528,759.50 to an amount of $535,759.50.
Funds are available in Account 101-25000-601170.
Requested, Denice E. Korcal, Director of Human Resources
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 20, 2014
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