DATE: May 31, 2018
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator / CFO
Kevin Townsel, Human Resources Director
Sara Sylvis, Risk Manager
Brian Wilcox, Purchasing Manager
SUBJECT:
title
Consider Recommendation To Reject All Proposals For Third-Party Administrator Services For Workers Compensation Self-Insurance Program Effective July 1, 2018, For The Risk Management Division Of The Human Resources Department (Purchasing Office Procurement Solicitation No. 2018-016)
body
Purpose
The purpose of this procurement would be to purchase third-party administrator services for workers compensation self-insurance program, if implemented, effective July 1, 2018.
Background
In case the City implemented a workers compensation self-insurance program effective July 1, 2018, the City published on March 29, 2018 a Notice to Proposers in the Williamson Herald for third-party administrator services for workers compensation self-insurance program, if implemented. In addition, solicitation documents were sent on or about the same date directly to seven (7) potential proposers known or thought to be interested in this solicitation. Proposals from four (4) service providers were publicly opened at the submittal opening held on April 26, 2018. A tabulation of the proposals received for this solicitation is attached.
All proposals received were evaluated, using the selection criteria included in the Request for Proposals, by the City’s insurance agent for workers compensation coverage, the firm of Public Risk Insurors. The two proposers whose proposals were scored the highest (and the only two proposers that offered both the life-of-claim and the life-of-contract claims management pricing options requested in the Request for Proposals) were invited to interview. The two finalists were then evaluated, using the same selection criteria, this time by staff of the City’s Human Resources Department.
After the evaluation of the proposals and after the finalists were interviewed and evaluated, the Human Resources Department determined that it would not be recommending implementation of a workers compensation self-insurance program effective July 1, 2018. The Department expects to revisit the possibility of recommending implementation of a workers compensation self-insurance program, and for the City to solicit proposals for third-party administrator services for workers compensation self-insurance program, if implemented, all at a later date.
Financial Impact
As implementation of a workers compensation self-insurance program effective July 1, 2018 is not being pursued, staff recommends all proposals be rejected.
Recommendation
rec
As implementation of a workers compensation self-insurance program effective July 1, 2018 is not being pursued, staff recommends the Board of Mayor and Aldermen reject all proposals for third-party administrator services for a workers compensation self-insurance program effective July 1, 2018.