HomeMy WebLinkAboutTerm Sheet 12-16-10Term Sheet for the Award of a Professional Services Agreement
in Response to RFP 207193 for Claims Administration Services
Contract Type: Professional Services Agreement (PSA)
Parties: City of Miami (City) and Gallagher Bassett Services, Inc. (Provider)
Subject Matter: Provision of claims administration services and managed care services for Workers'
Compensation related claims,andclaimsadministration services for general liability,
auto liability, law enforcement liability and public officials/professional liability
related claims.
Term: One three-year term, with five one-year renewal options
Cancellation Provisions: Termination without notice or liability for material default. Termination by
City at its sole discretion upon providing notice of sixty (60) calendar days
prior to the effective date of such termination.
Fee Structure: Professional services to be provided on a cost plus pricing basis employing a cost
multiplier of 2.35. Based on both projected and existing claims volume and claims
frequencies, it is projected that a staff of 14 claims administration personnel will need to
be dedicated by the Provider. Annual costs of Professional Services will be between
$1,790,000 to $2,497,345 depending on actual servicing activities provided.
Hold Harmless/Indemnification: Full indemnification of City by Provider per Item 10 of the PSA.
Compliance with All Laws: Per Item 9 of the PSA, Provider is responsible for compliance.
Insurance: Per Item 14 of the PSA: General Liability: $1M/$2M/$1M; Auto Liability $1M
Workers' Compensation: Statutory ; Employer's Liability: $100,000/$500,000
Special Provisions:
Provider has committed to provide the necessary claims administration
system and associated training to assist the City with self-administering
selected claims.