Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
SEPTEMBER 15, 2021
Subject
SUBJECT: PUBLIC LIABILITY/PROPERTY DAMAGE THIRD PARTY CLAIMS ADMINISTRATION SERVICES
Action
ACTION: APPROVE CONTRACT AWARD
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to award an eight-year, firm fixed price Contract No. PS75821000, to Carl Warren & Company, LLC to provide Public Liability/Property Damage (PL/PD) claims administration services, in the amount of $12,148,152 for the four-year base term, $6,666,674 for the first, 2-year option term, and $7,111,894 for the second, 2-year option term, for a combined amount of $25,926,720, effective November 1, 2021, subject to resolution of protest(s), if any.
Issue
ISSUE
The current contract will expire on October 31, 2021. PL/PD claims administration services are necessary for the continuity of Metro's liability claims program.
Background
BACKGROUND
Metro utilizes the services of a third party administrator (TPA) to investigate, evaluate, and resolve the majority of third party claims filed against Metro. Third party claims generally arise out of bus and rail operations.
Discussion
DISCUSSION
Metro's Public Liability/Property Damage Claims Program is administered through a blend of in-house, contractor, and subcontractor staff. In-house Risk Management staff handles the more severe injury claims, while Contractor staff handles the more frequent, less severe injury claims. The subcontractor staff performs all field investigations and responds to an accident scene upon notification from Metro dispatch. Under this new contract, the Contractor shall handle all claims valued at $100,000 or less while Risk Management will handle cases valued in excess of $100,000.
Contractor's personnel shall be housed at Metro's Gateway building, similar to the arrangement with the current TPA. Co-locating TPA consultants with Metro's Risk Management's staff has proven to increase efficiencies in claims administ...
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