Broward County Commission Regular Meeting


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AI-28681 35.       
Meeting Date: 04/16/2019  
Director's Name: George Tablack
Department: Finance & Administrative Services Division: Purchasing

Information
Requested Action
MOTION TO APPROVE Agreement between Broward County and Corvel Healthcare Corporation, for the provision of Workers' Compensation Medical Cost Containment and Case Management Services, RFP No. GEN2115794P1 for the Risk Management Division, and authorize the Mayor and Clerk to execute same. The contract period will be effective July 1, 2019 for an initial three-year term estimated at $624,000, which includes optional services of $42,210, and authorize the Director of Purchasing to renew the contract for two additional one-year renewal terms, for an estimated total contract value of $1,040,000.

(Transferred to the Consent Agenda.)

ACTION:  (T-11:36 AM)  Approved. 

VOTE: 9-0.  Commissioner Geller voted in the affirmative telephonically.
Why Action is Necessary
In accordance with the Broward County Procurement Code, Section 21.31.a.4, Award Authority, Board approval is required for awards exceeding $500,000.
What Action Accomplishes
Provides case management and medical cost containment services for Workers' Compensation claims.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT/RISK MANAGEMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.

The Office of Economic and Small Business Development did not establish a County Business Enterprise participation goal for this project (Exhibit 3).

The purpose of this Agreement is to provide professional medical cost containment and case management services designed to control and reduce overall medical costs of the County's self-insured Workers' Compensation program while assuring that injured employees receive prompt, high quality and efficient medical care. The goal is to provide all statutory Workers' Compensation benefits provided by State Law while mitigating costs to the greatest possible extent.

On April 24, 2018 (Item No. 51), the Board approved the Request for Proposals (RFP) No. GEN2115794P1, Workers' Compensation Medical Cost Containment and Case Management Services. Three firms submitted proposals in response to the RFP.

On July 20, 2018, an Initial Evaluation Committee meeting was held. The Evaluation Committee determined that all three firms: Corvel Healthcare Corporation (Corvel); Relation Insurance Services of Florida, Inc., dba Relation Insurance Services; and USIS, Inc. dba AmeriSys were responsive and responsible to the requirements of the RFP and would proceed to final evaluation.

After Demonstration Meetings on August 9, 2018 and August 30, 2018, a Final Evaluation Committee Meeting was held on October 18, 2018. After presentations, evaluation, scoring and ranking, the Evaluation Committee named: Corvel as the first-ranked firm; USIS, Inc. dba AmeriSys as the second-ranked firm; and Relation Insurance Services of Florida, Inc. dba Relation Insurance Services as the third-ranked firm.

The Evaluation Committee's proposed recommendation of ranking was posted on the Purchasing Division website from October 22, 2018 to October 24, 2018, which provided an opportunity for any proposer or interested party to present any new or additional information regarding the responsibility of the proposers. There was no additional information submitted within this timeframe.

The Evaluation Committee's final recommendation of ranking was posted on the Purchasing Division website from October 25, 2018 to October 31, 2018, which provided an opportunity for any aggrieved proposer to file a formal protest. There was no protest filed within this timeframe.

Additional supporting documentation provided to the Evaluation Committee regarding this procurement can be found on Broward County’s Purchasing Division website at http://www.broward.org/Purchasing/Pages/Repository.aspx.

On November 21, 2018, the County Administrator approved the Evaluation Committee's final ranking of the qualified firms and authorized staff to proceed with negotiations.

Two negotiation meetings were held on January 9, 2019 and February 28, 2019. The second negotiation meeting was recessed on February 28, 2019 and reconvened on March 1, 2019 to finalize negotiations.  These meetings were attended by representatives of Corvel, the Risk Management Division, the County Attorney's Office, and the Purchasing Division. Through negotiations, Corvel agreed to the negotiated terms and conditions outlined in the Agreement (Exhibit 2).

The Evaluation Committee consisted of:
Jacqueline Chapman, Purchasing Agent, Senior, Purchasing Division, Finance and Administrative Services Department (Chair and Non-Voting Member)
Kimm Campbell, Director, Human Services Department
Roger Moore, Assistant Director, Risk Management Division, Finance and Administrative Services Department
Karen Gaither, Information Systems Supervisor, Risk Management Division, Finance and Administrative Services Department 
Source of Additional Information
Brenda J. Billingsley, Director, Purchasing Division, (954) 357-6070

Fiscal Impact
Fiscal Impact/Cost Summary:
The fiscal impact of the Workers' Compensation claims on a self-insured basis is estimated to cost Broward County $6.34 million annually. Claims Management Fees are dependent on the number of claims and will be paid per the Exhibit B in the Agreement.

The estimated annual cost for the contracted services is $208,000, which includes optional services in the estimated annual amount of $14,070.

Funding for this requirement will be from the Workers' Compensation Payments Fund.
Attachments
Exhibit 1 - Agreement Summary
Exhibit 2 - Agreement
Exhibit 3 - Goal Memorandum dated February 13, 2018


    

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