REPORT TO COUNCIL
SUBJECT
Title
Award of a Three-year Contract for Third Party Worker's Compensation Claim Administration Services (F18-289)
Report
REPORT IN BRIEF
Approval is requested to award a three-year contract, not to exceed $1,313,023 to Keenan & Associates of Oakland to provide workers' compensation claims administration services. Approval is also requested to authorize the City Manager to renew the contract for an additional two one-year periods depending on the services, pricing, and available funding.
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 $100,000 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 administration services consist of four components:
* Claims Administration - The largest component of the services provided, this includes the contracted cost for day-to-day handling of workers' compensation claims, and making disability payments and payments to doctors.
* Utilization Review - This is the assessment of the medical necessity of any medical treatment requested on the workers' compensation claim.
* Nurse Case Management - Services provided by nurses both telephonically and in the field t...
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