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March 27, 2025 City Council Regular Meeting
Title
20. Authorize the City Manager to Execute a Contract for Third Party Administrative Services with Gallagher Bassett Services, Inc. in an Amount Not to Exceed $292,341. The Risk Management Department will use the Third-Party Administrative Services for adjusting services for workers' compensation and auto liability claims. (Risk Management)
Strategic Priority
Good Government
Description

This is to award an annual contract for Third Party Administrative Services to Gallagher Bassett Services, Inc. in an amount not to exceed $292,341. The Risk Management Department will use Third-Party Administrative Services for adjusting services for workers' compensation and auto liability claims.  The estimated fee per claim amount will increase by 3% annually per the approval of the original award.  The 3% fee per claim increase would typically result in a nominal annual cost increase; however, despite this 3%, the overall cost has decreased in recent years based on great claims management and overall lower claim count by the City of Savannah.

Gallagher Bassett Services has produced great results regarding handling and closure rates.  In 2024, the City of Savannah had its highest claim closure rate in 10 years.  Gallagher Bassett’s services are continuously needed to control workers’ compensation costs for The City of Savannah, its injured employees, and costs associated with City vehicles involved in collisions.

The method used for this procurement was the request for proposals (RFP), which evaluates criteria in addition to cost. The proposals were evaluated on the basis of Specialized Experience and Technical Competence, Program Management, Coordination, and Quality Assurance, Capacity and Functionality of Claims Management, Local Participation, and Fees.

 

Three (3) proposals were received in response to this RFP. All proposals were reviewed and fully evaluated by a selection committee of City staff.

 

The proposal was advertised, opened, and reviewed. Delivery: As needed. Terms: Net 30 days. The proposers were:

 

B.P.       Gallagher Bassett Services, Inc.  (Rolling Meadow, IL)(D)                   $292,341

              Corvel Corporation  (Duluth, GA)(D)                                                     $349,181

              Brentwood Services (Brentwood, TN)(D)                                                       $582,650

 

A pre-proposal conference was not conducted. (D) Indicates non-local, non-DBE business.

 

Local available: No

Total sent: 258

Total received: 3

Recommendation

Approval

Contact
Bryan Hollis, Director, Risk Management
Financial Impact
Expenditure of $292,341 from the Risk Management Fund
Review Comments
Attachments
Exhibit 1: Funding Verification- Third Party Administrative Services.pdf
Exhibit 2: Purchasing Notes- Third Party Administrative Services.pdf
Agenda Plus