HomeMy WebLinkAboutMemo - Manager's ApprovalCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Daniel J. Alfonso, DATE: March 22, 2017 FILE:
City Manager
SUBJECT: Recommendation to Award
Contracts for Third Party Claims
Administration and Managed Care
Services
FROM: Annie Perez, CPPO,
Procurement Department irector REFERENCES: RFP No. 605386
ENCLOSURES: Non -Responsiveness Letter;
Recommendation to Negotiate Memo
Recommendation:
Based on the findings below, the Procurement Department ("Procurement") hereby recommends
approval for the award of two (2) contracts for the provision of Third Party Claims Administration and
Managed Care Services, pursuant to Request for Proposals (RFP) No. 605386, to USIS, Inc. ("USIS").
USIS will serve as a neutral party to prepare, manage, investigate, and maintain claims on behalf of the
City's Risk Management Department (Risk). The impact of this item is Citywide in nature.
Background:
On October 17, 2016, Procurement on behalf of Risk, issued RFP No. 605386 under full and open
competition, to obtain proposals from experienced and qualified Proposers for the purpose of providing.
third party claims administration and managed care services. The RFP was divided into two (2)
categories: Part 1-Third Party Claims Administration; and Part II -Managed Care Services. Proposers
could propose on one or both categories. The RFP required that Proposers submit separate proposals
if proposing on Part I and Part I1. Proposers were also required to meet all of the minimum qualification
requirements established in the RFP in order to be deemed qualified to provide the services. On
November 30, 2016, five (5) proposals were received in response to the RFP; one (1) Proposer was
deemed non responsive (see non -responsiveness letter).
The Evaluation Committee (Committee) met on February 22, 2017, to evaluate and score the proposals
following the guidelines published in the RFP. The Committee decided not to hold oral presentations,
as the proposals did not required further clarification. Following evaluations, the Committee
recommended USIS, the highest ranked responsive and responsible Proposer for both categories, for
negotiations. Accordingly, the Negotiations Team met on March 16, 2017 to negotiate the contracts.
Fiscal Impact:
The term of the contract for the Third Party Claims Administration Services and Managed Care Services
is three (3) years, with two (2) additional one (1) year option to renew periods.
The fiscal impact for the negotiated initial term of the contract for Third Party Claims Administration
Services is $5,154,575. If the two (2) additional one (1) option to renew year periods are exercised the
fiscal impact will be $3,623,159, for an aggregate amount of $8,777,734 over the five (5) year term of
the contract. As a result of successful negotiations, the City realized savings on the proposed price of
approximately $684,841 ($364,243 for the initial term and $320,598 for the option to renew periods).
The fiscal impact for the negotiated initial three (3) year term of the contract for Managed Care Services,
is a floating number based on the medical savings over the period. However, the reduction in the
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negotiated fees is approximately six percent (6%), The City also realized savings on the proposed cost
of Compliance Services of approximately forty percent (40%).
Due diligence was conducted by Procurement to determine responsibility, including verifying corporate
status. There were no performance or compliance issues, and no adverse findings related to USIS.
USIS has demonstrated that the firm has the necessary qualifications, relevant experience, and
demonstrated past performance, in providing the requested services. USIS" contractual history with the
City and the City's presumption claims, a significant part of the City's overall exposure, will allow for a
smooth transition of services.
After successfully completing the negotiations process, an agreement was reached with USIS.
Procurement hereby recommends award of the Contracts to USIS. Your signature below will indicate
approval of this recommendation.
Approved: r PArai t 4rJ
Daniel J. Alfonso, City Manager
AP:yc
c: Fernando Casamayor, Assistant City Manager/Chief Financial Officer
Ann -Marie Sharpe, Risk Management Director
Rafael Suarez -Rivas, Sr. Assistant City Attorney
William A. Juliachs, Sr. Assistant City Attorney
Erica Carr, Consultant, Beecher and Carlson
Lydia Osborne, PhD, CPPO, CPPB Assistant Director, Procurement
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