Title
Resolution to Approve a Three Year Professional Services Agreement (with an Additional Two Year Option) with Hylant Group for Property, Casualty and Automotive Third Party Claims Administration Services Not to Exceed $48,300.00 for Fiscal Year 2008/2009
Memorandum
The resolution before you is to approve a professional services agreement with Hylant Group for property, casualty and automotive third party claims administration services. The current contract with ASU Group expires April 16, 2008. Funding for this project is budgeted and available in the Risk Fund.
Request for Proposals (RFP) #693 was issued January 29, 2008. Six responses were received. Based on preliminary review of the responses, three firms were selected for interview, ASU Group (ASU), Risk Management Services Corp. (RMSC) and Hylant Group (Hylant), before a panel including the Treasurer, Risk Management Specialist and Risk Management Consultant.
The interviewed firms were evaluated based on:
q Past experience, generally and as it related to specific types of insurance claims
q Staffing turn-over rates
q Cost proposals
Hylant was selected based on its demonstrated comprehension of Michigan No Fault law and governmental immunity defenses, commitment to customer service and understanding of the importance of managing claimant expectations. They answered all interview questions correctly and used the appropriate methodology to arrive at their answers. Following the interviews, references of Hylant were contacted with positive results.
RFP #693 asked respondents to submit pricing on per claim and per year bases. Below is a table representing the bids of the three qualified respondents:
Annual (Annualized based
Per Claim Claims on 70 claims/year)
HYLANT $55,000 $575 $40,250*
RMSC $48,900 $485 $33,950
ASU $35,000 $750 $52,500
* Hylant also provided a $50 per claim fee for non-investigated claims, which could reduce the annualized claim cost by up to 25%.
The recomm...
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