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February 25, 2021 City Council Regular Meeting
20. Authorize the City Manager to Execute a Contract Renewal for Third Party Administrator Adjusting Services for Workers Compensation and Auto Liability Claims with Gallagher Bassett for $235,005 (Event No. 6494)
Strategic Priority
Good Government

Recommend renewal of annual contract for Third Party Administrator (TPA) adjusting services for workers' compensation and auto liability claims with Gallagher Bassett(D) for up to $235,005.  The estimated amount includes a 2% increase per the approval of the original contract awarded in December 2018. However, even with the 2% fee per claim increase, the estimated cost of the contract reduced nearly $35,000.00 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 10-years.  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 based on experience and technical competence, program management, coordination and quality assurance, capacity and functionality of claims management information systems, local participation and fees.

The original contract was awarded and approved by Council in December 2018. This is the second of four renewal options. 

Gallagher Bassett(D)            Tampa, FL

(D) Indicates non-local, non-DBE owned business.



Bret Bell, Chief of Operations
Financial Impact
Expenditure of $235,005 from the Risk Management Fund
Review Comments
Exhibit 1: Purchasing Summary - Workers Comp TPA Services.pdf
Exhibit 2: Funding Verification - Workers Comp TPA Services.pdf
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