Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JULY 18, 2018
Subject
SUBJECT: GENERAL LIABILITY CLAIMS ADMINISTRATION
SERVICES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute Modification No. 5 to Contract No. PS05312717, with Carl Warren & Company (CWC), for general liability claims administration services, to exercise the second, three-year option in the amount of $7,867,714 increasing the total contract value from $18,028,927 to $25,896,641 and extending the contract term from November 1, 2018 to October 31, 2021.
Issue
ISSUE
Contract No. PS05312717 currently provides for public liability and property damage third-party claims administration services. The contract consists of a four-year base period and two, three-year options for a combined total of $25,896,641.
On August 4, 2011, the Board authorized the CEO to award the ten years and two months fixed-price contract to CWC in the amount of $25,896,641 for all ten years inclusive of two, three-year options. CWC was awarded the Contract with a base term from September 1, 2011 to October 31, 2015. Based on our assessment of current industry conditions and regional economic growth occurring since the contract award in 2011, pricing has not improved in the interim.
We are returning to the Board for authorization to exercise the second, three-year option. Staff has determined that the previously negotiated option prices with CWC are fair, reasonable and will result in cost savings to Metro. The approval of this action is required to continue processing public liability claims timely and seamlessly.
Background
BACKGROUND
Consistent with practice of many other public agencies including the County of Los Angeles, the Los Angeles Unified School District and others, staff uses the services of a Third Party Administrator (TPA) to investigate, evaluate and resolve all general liability claims, primarily bus accidents, valu...
Click here for full text