REPORT TO COUNCIL
SUBJECT
Title
Award of a Five-year Contract to LWP Claims Solutions, Inc. for Third Party Workers' Compensation Claim Administration Services (F25-042)
Report
REPORT IN BRIEF
Approval is requested to award a five-year contract in an amount not to exceed $2,431,620 to LWP Claims Solutions, Inc. of Mill Valley to provide workers' compensation claims administration services. Approval is also requested to authorize the City Manager to increase the not-to-exceed amounts and extend the contract for up to two additional one-year periods, with both actions subject to available budgeted funding, need, acceptable pricing ad services.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, contracts for this type of service are awarded pursuant to a Request for Proposals (RFP) best value process, unless otherwise exempt from the competitive bidding process. Additionally, City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
BACKGROUND AND DISCUSSION
The City utilizes a state-licensed third-party administrator (TPA) to manage workers' compensation claims of injured workers through a contract managed by the Department of Human Resources. Workers' compensation claim administration services consist of the daily management of claims by a designated account manager and two claim adjusters who:
* Communicate with injured workers, medical providers, and City staff;
* Issue disability payments to injured workers, review medical bills for medical necessity, and issue medical payments for medical treatment;
* Coordinate care for injured w...
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