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Renewal of Third-Party Administrator [“TPA”] Contract with Hammerman and Gainer, Inc. [“HGI”]
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DESCRIPTION: Exercise Option to Renew Contract for TPA of Automobile and General Liability Claims with HGI |
AGENDA NO: 21-169 |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize Chief Executive Officer to proceed with exercising option to renew contract with HGI for Third-Party Administration [“TPA”] of automobile and general liability claims.
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ISSUE/BACKGROUND:
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HGI has been the TPA of RTA automobile and general liability claims for over twelve (12) years.
The most recent contract by and between RTA and HGI for these services was issued and signed on February 28, 2018. This contract specified a term of three (3) years with an option to renew for an additional two (2) years. Exercise of this Option to Renew, to be effected retroactively, will extend the contract until February 28, 2023.
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DISCUSSION:
HGI has fully performed its work as TPA for the handling of automobile and general liability claims per recent contract requirements throughout the original term of three (3) years. Further, HGI has continued to perform this work in a professional and timely manner since the expiration of the three (3) year term per mutual understanding by and between RTA and HGI. The cost components of the contract for the initial three (3) year term remain fair and reasonable, with competitive pricing within the industry. Exercise of the Option to Renew for an additional term of two (2) years, in the amount of $16,500 per month for twenty-four (24) months, is in the best interests of RTA.
FINANCIAL IMPACT:
$396,000
Funds for this contract are available from the RTA Operational budget. (See attachments for details.)
NEXT STEPS:
Proceed with renewal of contract for third-party administration of automobile and general liability claims with HGI as indicated above.
ATTACHMENTS:
o Resolution for Contract Award of Excess Workers’ Compensation Coverage
o Independent Cost Estimate [“ICE”] Form
o Contract for Third Party Administrator for Automobile and General Liability Claims
by and between RTA and HGI [dated February 28, 2018]
Prepared By: Marc Popkin
Title: Risk Analyst
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
Reviewed By: Mark A. Major
Title: Deputy CEO, Administration and Finance
11/4/2021
Alex Wiggins Date
Chief Executive Officer