6-26-2019 City Council Report.pdf

City Council Formal Meeting
City Council Report
Agenda Date: 6/26/2019, Item No. 55
Workers’ Compensation Bill Review Services Contract (Ordinance S-45880)
Request to authorize the City Manager, or his designee, to enter into a contract with
Corvel to provide workers’ compensation bill review services. Further request
authorization for the City Controller to disburse all funds related to this item over the
life of the contract, as necessary. The aggregate contract value including all option
years will not exceed $1,200,000 per year. Funding for this contract is available in the
Workers’ Compensation Program Trust Account.
Summary
A Request for Proposals (RFP) for Workers’ Compensation Bill Review services was
conducted in accordance with Administrative Regulation 3.10. Bill Review Services
include reviewing and re-pricing bills associated with medical and indemnity benefits
payments for City of Phoenix employees who have sustained an injury arising out of or
in the course of their work, while employed with the City.
Procurement Information
An RFP for Workers’ Compensation Bill Review services was issued on April 30, 2019,
with a deadline of May 21, 2019, to submit responses. In addition to the solicitation
post on the City of Phoenix website, direct email notification was sent to vendors who
submitted in the past, vendors who stated their interest, and vendors who requested
information from Human Resources.
Five proposals were received and found to be responsive; and, therefore submitted to
the RFP selection committee (three employees from Human Resources, one
representative of LIUNA 777, and one representative of PLEA) for evaluation and
selection.
The RFP Selection Committee met on June 3, 2019, to review and evaluate proposals
from the following: CCMSI, Corvel, Innovative Claims Strategies, LLC, InterMed Cost
Containment Services, and Rising Medical Solutions. Proposals were scored based on
the following criteria: qualifications and experience; other qualifications; and pricing.
After much discussion, the Committee selected Corvel for the following reasons: ability
to meet the scope of work, industry experience, and price. Based on the information
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Agenda Date: 6/26/2019, Item No. 55
provided above and the recommendation of the selection committee, staff is
recommending approval to enter into contract negotiations with Corvel.
The scores, out of 1,000 available points, for the top three proposers are:
Corvel:  956
CCMSI:  860
Rising Medical Solutions:  822
Contract Term
The initial contract term will be three years, effective on about July 1, 2019, with the
option to renew for two additional years in one-year increments, which may be
exercised by the City Manager or his designee.
Financial Impact
The aggregate contract value including all option years will not exceed $1,200,000 per
year. Funding for this contract is available in the Workers’ Compensation Program
Trust Account.
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone and the Human
Resources Department.
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