Back

PROPOSAL:

Execute Contract for Third-Party Workers’ Compensation and Liability Adjusting Services

SYNOPSIS:

On February 13, 1998, the Board approved the release of an RFP for Third-Party Workers’ Compensation and Liability Adjusting Services. The RFP was released and three proposals were received by the March 13, 1998 deadline. Staff reissued the RFP on June 16, 1998, to incorporate requirements for liability adjusting services, not identified in the previous release. Five proposals were received by the August 7, 1998 deadline. This action is to execute a three-year contract with JT² Integrated Resources in an amount not to exceed $34,508 per year, commencing November 1, 1998 through October 31, 2001. Sufficient funds have been allocated in the FY 1998-99 Budget with appropriation of funds requested for each successive year. This item was reviewed by the Administrative Committee on September 18, 1998, and recommended for approval.

COMMITTEE:

Administrative, September 18, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman of the Board to execute a three-year contract with JT² Integrated Resources for the period of November 1, 1998 through October 31, 2001. The contract shall be in an amount not to exceed $34,508 per year for the three-year period.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

AQMD is self-insured for its workers’ compensation and general liability losses. Workers’ compensation and liability adjusting are highly complex and specialized fields. AQMD has utilized the services of state-certified third-party firms to administer workers’ compensation and liability claims since 1986. These services include receiving and processing claims according to applicable state law and AQMD policies; assisting AQMD to aggressively defend fraudulent claims; establishing reserves for payment of losses; pursuing subrogation recovery opportunities; and maintaining related files and documents.

RFP #9798-26 was originally released on February 13, 1998, and three proposals were received by the deadline of March 13, 1998. The RFP was reissued on June 16, 1998 to more clearly define the requirements for general liability adjusting services, which were not identified in the previous release. All three of the proposers from the first release of the RFP were solicited to resubmit bids on the second release. Two of the three bidders responded again by the deadline of August 7, 1998.

Outreach

In accordance with AQMD’s consulting and contracting policies, a public notice advertising the RFQ and inviting bids was published in the following publications:

Additionally, potential bidders were identified using the Los Angeles County Directory of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Los Angeles County Metropolitan Transportation Authority’s Directory of Certified Firms; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP were mailed to the Black and Latino Legislative Caucuses, various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s 24-hour telephone message line for bidders (909) 396-2724.

Bid Evaluation

Two hundred fourteen (214) copies of the RFP were mailed out. Five proposals were received in response to the RFP by the deadline of 3:00 p.m. on Friday, August 7, 1998. Three of the bidders are MBE-owned firms: one is African-American and two are Hispanic.

The submitted proposals were evaluated based on the technical and cost criteria contained in the RFP. Of the bids received, four were determined to be responsive to the RFP. Attachment A reflects the numerical ordering of all bidders from the highest to the lowest score.

Panel Composition

The proposals were evaluated by a panel of three risk management professionals, who interviewed representatives from each of the firms submitting a proposal on August 27, 1998. The evaluation panel consisted of a Risk Manager from the Metropolitan Water District; an Account Representative from the State Compensation Insurance Fund, and a Workers’ Compensation and Safety Analyst from AQMD’s Administrative and Human Resources. Two of the panelists are men and one is a woman. Additionally, one of the panelist is Asian/Pacific Islander, one is Caucasian, and one is Hispanic.

Resource Impacts

Sufficient funds have been allocated in the FY 1998-99 Budget with appropriation of funds requested for each successive fiscal year for the three-year period of the contract.

Attachment
Attachment A – Evaluation of Proposals for RFP #9798-26

ATTACHMENT A
EVALUATION OF PROPOSALS FOR RFP 9798-26
Third-Party Workers’ Compensation and
Liability Adjusting Services

* Step 2, Cost and Other Factors, include a maximum of 70 points based on bid amount, 10 points for DVBE-owned firms or joint ventures with DVBE firms, and 7 points for use of DVBE subcontractors by other than a DVBE or DVBE joint venture.

/ / /