HomeMy WebLinkAboutContract 52069-A1 CITY SECRETARY
0 2019
TY OF FORTWORm
SECRETARY FIRST AMENDMENT TO
FORT WORTH CITY SECRETARY CONTRACT NO. 52069
This First Amendment to Fort Worth City Secretary Contract No. 52069 ("First
Amendment") is made between the City of Fort Worth ("City"), a municipal corporation, acting
herein by and through, its duly authorized Assistant City Manager and SmartLight Analytics,LLC
("Consultant") acting herein through its duly authorized CEO.
WHEREAS, FORT WORTH and Consultant entered into Fort Worth City Secretary
Contract No. 52069 beginning March 15, 2019 (the "Agreement"); and
WHEREAS, City and Consultant desire to amend the "Scope of Services" of the
Agreement to add ongoing monitoring; and
WHEREAS, City and Consultant desire to update the Compensation paid to Consultant to
include the additional services.
NOW THEREFORE, KNOWN ALL BY THESE PRESENT, City and Consultant, acting
herein by the through their duly authorized representatives,enter into this First Amendment,which
amends the Agreement as follows:
1. Exhibit A, Scope of Services is hereby amended to add the following:
DELIVERABLE
Ongoing analysis ('Concurrent Review) of City of Fort Worth's medical
claims data to identify new cost reduction opportunities based on customer's
monthly data feed as well as monitor ongoing behavior on previously identified
wasteful spend areas
r Regular coordination with claims administrators to implement action plan to
reduce and eliminate identified wasteful spend
Detailed analysis of pharmacy claims for detection of fraud, waste, and abuse in
pharmacy, prescriber and member driven cases.
Coordination with PBM to remediate findings
y Quarterly Business Review with City of Fort Worth's benefits team to track
progress and formulate action plan to remediate unaddressed findings
ASSUMPTIONS
Customer will facilitate secure data transfer of all required data from the claims
administrator and pharmacy benefits manager to SmartLight servers
i- Customer will provide applicable SPD documents and details on applicable drug
formulary documents prior to initiating work
OFFIVAL RECO
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Second Amendment to City Secretary Contract No.52069 age 1 of 4
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Customer will provide information on exceptions to plan guidelines in a timely
fashion
➢ Pricing based on membership of 11,248 members(as provided)
2. Section 3. Compensation of the Agreement is deleted and replaced in its entirety
with the following:
Compensation. City shall pay Consultant an amount not to exceed four-hundred and five thousand
dollars($405,000.00)in accordance with the provisions of this Agreement and Exhibit"B,"Price
Schedule, which is attached hereto and incorporated herein for all purposes. Consultant shall not
perform any additional services for City not specified by this Agreement unless City requests and
approves in writing the additional costs for such services.City shall not be liable for any additional
expenses of Consultant not specified by this Agreement unless City first approves such expenses in
writing.City agrees to pay all invoices of Vendor within thirty(30)days of receipt of such invoice.
3. Exhibit B,Price Schedule is hereby amended to add the following:
PRICING AND TERMS
NBR OF MEMBERS CONCURRENT REVIEW FEE MONTHLY FEE ANNUAL FEE
11,248 $3 PMPM $33,744 $404,928
Quoted prices are valid for 30 days from November 7,2019
GUARANTEED RETURN ON INVESTMENT (ROI)
The Concurrent Review solution is guaranteed
The Guaranteed Amount will include:
' (i)dollar amounts recovered,refunded,denied or credited back to the City;(ii)recoverable dollar amounts
identified,but not pursued pursuant to a decision made by City,and(iii)the demonstrated dollar value of
wasteful spend that was prevented as a result of Consultant's efforts;and(iv)savings as a direct result of
policy or contractual change recommendations made by the Consultant.
Guarantee on Fees:Consultant guarantees two times(2X)the annual fees(the"Guaranteed Amount"),up to a maximum of fees
paid,provided Customer shall also provide support to referral and remediation efforts as requested, including efforts related to
discussions with the claims administrators and authority to act on behalf of the City in remediation efforts.
The Guaranteed Amount will be assessed following the end of each 12-month period given reasonable time for refunds and
recoveries to be processed.
The table below illustrates examples of the fee guarantee.
1 YEAR 2X ROI SAVINGS GUARANTEE
b 1 1 D
$400,000 $800,000 $650,000 1.6 $150.000 2.0
$400,000 $900,000 $760,000 1.9 $40,000 2.0
$400,000 $800,000 $870,000 12 $0 2.0
$400,000 $800,000 $1,800MO 4.5 $0 2.0
$400,000 $800,000 $2,700,000 6.8 $0 2.0
S400,000 $800,000 $3,300,000 8.3 $0 2.0
Second Amendment to City Secretary Contract No.52069 Page 2 of 4
Data Intake Setup Fee: A one-time set-up fee,equal to$7,500 shall be due and payable at the time of the initial monthly data
feed from the Customer's claims administrator and pharmacy benefits manager.This set-up fee applies to each initial data source
that requires intake.This set-up fee includes the cost of the initial set up for automated monthly intake of customer's medical and
pharmacy data into SmartLight Analytics'secure server.
Additional Services Not Specified
Company may provide additional services not specified in this Agreement;such services will be mutually agreed upon between
the parties in writing prior to their performance and may be subject to Supplemental Charge.
4. All other terms,provisions,conditions,covenants and recitals of the Agreement not
expressly amended herein shall remain in full force and effect.
(signature page follows)
Second Amendment to City Secretary Contract No. 52069 Page 3 of 4
Executed effective as of the date signed by the Assistant City Manager below.
FORT WORTH:
City of Fort Worth Contract Compliance Manager:
By signing I acknowledge that I am the person
responsible for the monitoring and administration
of this contract,including ensuring all performance
By: �—
L.5 and reporting requirements.
Name• �,�, `�
Title: Assistant City-Manager
Date: _ t2�'[�c%l9' By: —'
Name:
Approval Recommended: Title:
Approved as to Form and Legality:
By:
Name:
Title: By:
Name: Zistant
B.'StrOtgAttest: Title: City Atto
Contract Authorization:
By: l �`
Name: t.Is.
TitleCity Secretary
m
CONSULTANT:
SmartLight Analytics, LLC
By:
Name: B. Asha George
Title: Chief Executive Officer
Date: 12/16/2019
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UAL RECORD
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SECRETARYY
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