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 $52,000.00 for Fiscal Year 2014)
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 Hylant Group expires April 16, 2013. Funding for this project is budgeted and available in the Risk Fund.
Request for Proposals (RFP) #846 was issued January 18, 2013. Three responses were received. A review panel consisting of the Treasurer and the Risk Specialist reviewed the responses. The three respondents were ASU Group (ASU), Mackinaw Administrators, and Hylant Group (Hylant). Prior to scoring cost proposals, both reviewers scored Hylant the highest, followed by ASU and Mackinaw.
RFP #846 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 Per Claim Per Claim Annual Total Based on 88 claims/yr
Hylant $55,000.00 $50-$575.00 $30,000.00
Mackinaw NA $75-$850.00 $47,000.00
ASU $35,000.00 $450-$750.00 $53,000.00
After scoring the cost proposals, both reviewers total scores ranked Hylant the highest, followed by ASU and Mackinaw. The recommendation of the selection committee is to award the contract to Hylant on a per claim basis. The Insurance Board has reviewed the recommendation of staff and concurs with their conclusions.
The proposed agreement includes a fee structure for services, which consists of a per claim fee of $575.00 for general liability claims, $300.00 for property clams and $50.00 for non-investigated claims. Although we expect the annual cost to be near $30,000.00, the not to exceed amount of $52,000.00 includes a contingency that could accommodate a major increase in c...
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