Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
SEPTEMBER 18, 2025
Subject
SUBJECT: PUBLIC LIABILITY/PROPERTY DAMAGE THIRD PARTY CLAIMS ADMINISTRATION SERVICES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Modification No. 1 to Contract No. PS75821000, with Carl Warren & Company, LLC (CWC), to exercise the first, two-year option in the amount of $6,666,674, increasing the total contract value from $12,148,152 to $18,814,826, and to extend the period of performance from November 1, 2025, to October 31, 2027.
Issue
ISSUE
Consistent with the practice of many other public agencies, such as the County of Los Angeles, and the Los Angeles Unified School District, Metro uses the services of a Third-Party Administrator (TPA) to investigate, evaluate, and resolve a majority of third-party claims filed against Metro. Third-party claims generally arise out of bus and rail operations.
The contract's four-year base period expires on October 31, 2025. To continue to process property liability and property damage claims timely and seamlessly, a contract modification is required to exercise the first, two-year option, extending the period of performance from November 1, 2025, to October 31, 2027.
Background
BACKGROUND
In September 2021, the Board awarded a four-year base term and two, two-year option term firm fixed price Contract No. PS75821000 to CWC to provide public liability (PL) and property damage (PD) third-party claims administration services.
Metro's PL/PD Claims Program is administered through a blend of in-house and CWC (consisting of 26 individuals who provide claims adjusting support and subcontractor staff). In-house Risk Management staff handles the more severe injury claims, while CWC staff handles the more frequent, less severe claims. CWC's subcontractor performs all field investigations and responds to accident scenes upon notification from Metro dispatch. Und...
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