STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: August 28, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize (1) a three-year service contract, with three one-year renewal options, for self-insured workers’ compensation claims administration and related cost containment services for the Office of Risk Management, in an amount not to exceed $3,156,590.00; and (2) the ratification of $507,912.16 for the Office of Risk Management to pay outstanding invoices for self-insured workers’ compensation claims administration and related cost containment services - TRISTAR Claims Management Services, Inc., most advantageous proposer of three - Total not to exceed $3,664,502.16 - Financing: Workers' Compensation Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service contract is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis.
This service contract will provide for self-insured workers’ compensation claims administration and related cost containment services for the Office of Risk Management. The third-party administrator is responsible for, but not limited to:
• Evaluating, process, and paying claims
• Medical cost containment through bill auditing review, pre-authorizations pharmacy management, and medical case management
• Surveillance and investigation services
• Providing legal representation for Texas Workers' Compensation Commission issues for the City
A seven-member committee from the following departments reviewed and evaluated the qualifications:
• Department of Information and Technology Services (1)
• Office of Risk Management (2)
• Park & Recreation Department (1)
• Police Department (1)
• Business Enterprise Hub (1)
• Office of Procurement Services (1)*
*The Office of Procurement Services evaluated cost and local preference, if applicable.
The committee selected the successful respondent on the basis of demonstrated competence and qualifications under the following criteria:
• Functional technical match 25 points
• Cost and timeframe 25 points
• Experience, capability and expertise 20 points
• Approach and methodology 10 points
• Business Inclusion and Development Plan 15 points
• Local Preference 5 points
As part of the solicitation process and in an effort to increase competition, the Office of Procurement Services used its procurement system to send out email notifications to vendors registered under relevant commodity codes. To further increase competition, the Office of Procurement Services uses historical solicitation information, the Internet, and vendor contact information obtained from user departments to contact additional vendors.
On November 10, 2015, the City Council authorized a living wage policy that requires contractors to pay their employees a “living wage” rate as established annually by the Massachusetts Institute of Technology Living Wage Calculator for Dallas County by Resolution No. 15-2141. The calculated living wage during the solicitation process of this contract is $18.25; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 26, 20217, the City Council authorized a five-year service contract for workers’ compensation third party claims administration and related medical cost containment services with Tristar Risk Management Services, Inc. by Resolution No. 17-0674.
FISCAL INFORMATION
|
Fund |
FY 2024 |
FY 2025 |
Future Years |
|
Workers' Compensation Fund |
$616,750.16 |
$1,019,173.00 |
$2,028,579.00 |
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$3,156,590.00 |
Other Services |
23.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
8.55% |
8.55% |
$270,000.00 |
|
• This item does not meet the M/WBE subcontracting goal. |
|
• TRISTAR Claims Management Services, Inc. - Local; Workforce - 1.07% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Request for Competitive |
• Utilized for high technology procurements, insurance procurements, and other goods and services |
|
Sealed Proposal |
• Recommended offeror whose proposal is most advantageous to the City, considering the relative importance of price, and other evaluation factors stated in the specifications |
|
|
• Always involves a team evaluation |
|
|
• Allows for negotiation on contract terms, including price |
The Office of Procurement Services received the following proposals from solicitation number BLZ24-00023989. We opened them on April 12, 2024. We recommend the City Council award this service contract in its entirety to the most advantageous proposer.
*Denotes successful proposer
Proposers Address Score
*TRISTAR Claims Management 5525 North MacArthur Blvd. 79.25
Services, Inc. Suite 200/250
Irving, TX 75038
Sedgwick 8125 Sedgwick Way 71.82
Memphis, TN 38125
Athens Insurance Services, Inc 100 Oceangate 70.59
DBA Athens Administrators Suite 700
Long Beach, CA 90802
OWNER
TRISTAR Claims Management Services, Inc.
Thomas J. Veale, President
Denise Cotter, Chief Financial Officer