Title
Contract No.: GLWA-CS-006
Proposed Change Order No. 2
Third Party Claims Administrator
Body
Agenda of: July 25, 2018
Item No.: 2018-815
Amount: $625,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: June 26, 2018
RE: Contract No.: GLWA-CS-006
Proposed Change Order No. 2
Third Party Claims Administrator
Vendor: Broadspire, Inc.
MOTION
Upon recommendation of William M. Wolfson, Chief Administrative and Compliance Officer, The Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Change Order No. 2 of Contract No. GLWA-CS-006, "Third Party Claims Administrator" (TPA) with Broadspire, at a cost not to exceed $1,225,000.00 and for a duration of an additional three (3) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA-CS-006 was initiated on January 1, 2016 for a period of three (3) years expiring December 31, 2018. A TPA performs all services required to supervise and administer a self-insured workers' compensation program for GLWA, and to act as GLWA's representative in matters relating to GLWA's obligations under the workers' compensation laws of the State of Michigan. The initial contract was later amended to include the administration of GLWA's general liability and automobile claims.
JUSTIFICATION
Longer term contracts with third party claims administrators help to avoid end of contract costs that "carry over" to a successor firm or stay with the incumbent firm who continues to charge administrative "fees" for retaining pending files (workers' compensation claims tend to have long tail periods before closure as opposed to general liability and auto claims).
In addition, a change in administrators will result in the following, all of which are not conducive to a hi...
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