TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 4, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order and enter into an agreement for Contract 23-RFP-13 Third Party Claims Administrator Services with PMA Management Corp. for a three-year period, with an additional one-year renewal option, in an amount not to exceed $825,000.00, Accounts 101-25000-612430 and 901-30000-601090, Requisition 1600912
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with PMA Management Corp. for Contract 23-RFP-13 Third Party Claims Administrator Services for Workers’ Compensation claims and Non-litigated Liability claims and related services for the District.
Request for Proposal 23-RFP-13 was advertised on August 23, 2023, and ninety-nine companies were notified. RFP documents were requested by twenty-three companies, resulting in two firms: Cannon Cochran Management Services, Inc. and PMA Management Corp. submitting proposals on September 15, 2023.
An evaluation committee consisting of personnel from the Human Resources Department (Risk Management and Claims), the Law Department and the Procurement and Materials Management Department evaluated the proposals based on understanding of the project, prior experience with public entity clients, proposed approach to the work, technical competence, and the ability to meet the District’s requirements. It was the consensus of the committee that both proposers were qualified to perform the work.
Two firms were interviewed, and both were invited to submit a best and final offer (BAFO). Upon completion of this process, PMA Management Corp. (PMA) received the highest ratings and proposed the lowest BAFO pricing.
PMA is a well-established professional services firm with more than 30 years of experience providing third party claims administrator services for Workers’ Compensation and other lines of coverage. PMA currently provides risk services to more than 200 public entity clients.
PMA will provide third-party claims administration services through a dedicated team that will partner with the District to address issues proactively and within established guidelines. PMA is available 24 hours per day, 7 days per week, 365 days per year to respond to District needs. A claims professional will be available at all times via a toll-free number to answer questions and provide direction. PMA will handle all Workers’ Compensation claims; services include bill review, Medicare Section 111 reporting, and data feeds, and may also include Utilization Review, Peer Review, Independent Medical Examinations, Medical Case Management, Investigations, and other services listed in the RFP or BAFO, as needed and agreed upon. As requested by the District, PMA will also administer Non-litigated Liability claims and related services for General Liability, Employers Liability, Auto Liability, Cyber Liability, and Marine Liability.
The Diversity Section has reviewed the proposal by PMA Management Corp. and has concluded that it has met the requirements of Appendix A. The Minority-owned Business Enterprises (MBE) and Women-owned Business Enterprises (WBE) goals are: 15% MBE and/or WBE.
The estimated expenditures were developed using the rates submitted in the BAFO and are based on estimates of claims activity. The fees are auditable so the District will only pay for services used.
The estimated expenditures for 2024, 2025, 2026 and 2027 are $206,167.00, $273,333.00, $273,333.00, and $72,167.00, respectively. Funds for the 2025, 2026 and 2027 expenditures will be budgeted in Accounts 101-25000-612430 and 901-30000-601090 and will be contingent on the Board of Commissioners’ approval of the District’s budget for those years.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into an agreement with PMA Management Corp. for third-party claims administrator services, in an amount not to exceed $825,000.00.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK:BW
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, 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 January 4, 2024
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