Recommend renewal of annual contract for third party administrator adjusting services for workers' compensation and auto liability claims with Gallagher Bassett in the estimated amount of $219,515.  The estimated amount includes a 2% increase per the approval of the original contract award in December 2018. However, even with the 2% increase the estimated cost of the contract reduced nearly $ 40,000 due to recent years with lower claim counts and higher closure rates. Gallagher Bassett Services has produced great results in regards to claims handling and closure rates.  The City of Savannah has its highest claim closure rate in a 10 years span.  Gallagher Bassett’s services are continuously needed to control workers’ compensation costs for employees injured on the job and auto liability costs associated with City vehicles involved in collisions.

The method used for this procurement was the request for proposal, which evaluates criteria in addition to cost. Proposals were evaluated on the basis of experience and technical competence, program management, coordination and quality assurance, capacity and functionality of claims management information systems, local participation, and fees.

This contract was approved by Council on December 20, 2018 in the amount of $262,191.  This is the first of four renewal options available.  The contract term shall be January 1, 2020 through December 31, 2020.

Approval