TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 21, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authority to increase purchase orders and to exercise an option to extend the agreement for an additional one-year period, for Contract 23-RFP-13 for Third Party Claims Administrator Services with Lodestar Claims & Risk Services Inc., formally known as PMA Management Corp., in an amount of $278,333.00, from an amount of $742,642.32, to an amount not to exceed $1,020,975.32, Accounts 101-25000-612430 and 901-30000-601090, Purchase Orders 3128894, 3128895
Body
Dear Sir:
On January 4, 2024, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders and enter into an agreement for Contract 23-RFP-13 with PMA Management Corp., whose name was changed to Lodestar Claims & Risk Services, Inc. (Lodestar) as of April 13, 2026, in and amount not to exceed $825,000.00, to administer workers’ compensation claims, non-litigated liability claims, and related services for the District. The original agreement was for a three-year term, with an option to extend for an additional one-year period. The contract is set to expire on April 14, 2027.
Under the terms of the agreement, Lodestar will continue to provide third-party claims administration services for the District for an additional one-year period from April 15, 2027, through April 14, 2028. Lodestar will handle all workers’ compensation claims, including claims administration, bill review, Medicare Section 111 reporting, and data feeds, and may also provide utilization review, peer review, independent medical examinations, medical case management, investigations, and other services as outlined in the RFP and pricing, as needed and agreed upon. As requested by the District, Lodestar will also administer non-litigated liability claims and related services for general liability, auto liability, and marine liability. The requested increase will fund service fees for the extension period.
As of May 1, 2026, the attached list of change orders has been approved.
Original Contract Amount $825,000.00
Date of Board Approval 1/4/2024
Cumulative Change Orders (05/01/2026) ($82,357.68)
% Change of Original Contract Value -9.98%
Current Contract Value $742,642.32
Request Increase $278,333.00
New Contract Amount $1,020,975.32
% change of Current Contract Value 37.48%
Total % Change of Original Contract Value 23.75%
The requested increase is necessary to ensure adequate funding for the one-year extension of the contract for third-party claims administration and related services. This option to extend is in the best interest of the District because service will continue to be provided at rates quoted in 2023. Additionally, Lodestar has recently migrated to a shared service platform, Origami Risk, which is expected to result in service efficiencies that will further benefit the District. These change orders are in compliance with the Illinois Criminal Code because they are germane to the contract.
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 extend the agreement for an additional one-year period and to increase the purchase orders issued to Lodestar Claims & Risk Services, Inc. in an amount of $278,333.00 (approximately 37.48% of the current contract value), from an amount of $742,642.32 to an amount not to exceed $1,020,975.32.
Funding for 2027 and 2028 expenditures will be provided in Accounts 101-25000-612430 and 901-30000-601090. The funds for 2027 and 2028 are contingent upon approval of the District’s budgets by the Board of Commissioners for those years.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK:BLW
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for May 21, 2026
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