Title
SERVICE CONTRACT WITH PENSER NORTH AMERICA, INC. FOR ADMINISTRATION OF WORKERS COMPENSATION CLAIMS HANDLING
COUNCIL STRATEGIC INITIATIVE ADDRESSED:
Continue effective financial management
CITY ATTORNEY REVIEW: REQUIRED
SUMMARY STATEMENT:
The City of Longview is a Washington State Labor and Industries, self-insured employer and uses the professional services of a Third Party Administrator (TPA) for the handling and processing of all workers compensation claims. The Safety & Risk Manager solicited a request for proposal for vendors that could provide this service to the city. The City of Longview was slated to conduct its due diligence of this professional services contract, as it was previously reviewed in the fall of 2012.
Using the self-insured employers list from the Washington State Labor and Industries website, a request for proposal was extended to nine (9) candidate vendors that provide similar services to self-insured municipalities and corporations within the State of Washington in September 2016. Five (5) requests for proposals were received and subsequently evaluated by a selection committee. These requests for proposal were initially evaluated and score was compiled by each committee member. The top three (3) scoring proposals were brought in for a formal interview with their proposed claim handling team and the city selection committee. After the formal interview process, the selection committee identified the top vendor candidate and brought them back for a second interview. The selection committee verified their top vendor candidate, and extended an opportunity for the finalist to enter into an agreement with the City of Longview.
Abbreviated cost analysis by proposal - Figures are based on City of Longview, 10 year average of 33 claims per year.
(Approximately 16.5 indemnity and 16.5 medical only)
Penser North America, Inc. (Rates are guaranteed up to 45 claims per year)
2017 ...
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