HomeMy WebLinkAboutContract 54879-A2R1AMENDMENT NO. 2 RENEWAL NO. 1
TO CITY OF FORT WORTH CONTRACT NO. 54879
This Amendment is entered into by and between the City of Fort Worth (hereafter
"City"), and Sedgwick Claims Management Services, Inc.(“Vendor”). City and Vendor may
be referred to individually as a Party and collectively as the Parties.
WHEREAS, the Parties entered into City Secretary Contract 54879 a non-exclusive
agreement for Vendor to provide mediation services (“Agreement”);
WHEREAS,the Parties acknowledge that this is a non-exclusive agreement and there is
no guarantee of any specific amount of purchase;
WHEREAS it is the collective desire of both City and Vendor to remove Exhibit A
Schedule 1 TDVDWC Performance- Based Oversight Assessment of Carrier, and
Performance and At-Risk Levels; therefore, eliminating any incentive payouts based on
performance.
WHEREAS, the Parties wish to renew the Agreement for its Renewal Term,
beginning November 20, 2025, to November 19, 2026.
NOW, THEREFORE, the Parties, acting herein by and through their duly authorized
representatives, enter into the following agreement:
1.
AMENDMENTS
Exhibit A., TPA and URA Performance Standards and Compliance (Worker’s
Compensation Account Requirements and Instructional Manual-Attachment H from RFP)
provision of the Agreement, shall be deleted in its entirety and amended to read as follows:
City will no longer make incentive payments for performance ratings, but vendor shall continue to
adhere to the Texas Workers’ Compensation Act as per the 88th Legislature, 2023.
2.
ALL OTHER TERMS SHALL REMAIN THE SAME
All other provisions of the Agreement which are not expressly amended herein shall
remain in full force and effect.
3.
ELECTRONIC SIGNATURE
This Amendment may be executed in multiple counterparts, each of which shall be
an original and all of which shall constitute one and the same instrument. A facsimile copy
or computer image, such as a PDF or tiff image, or a signature, shall be treated as and shall
have the same effect as an original.
38599
CITY OF FORT WORTH:
By: ___________________________
Name: Dianna Giordano
Title: Assistant City Manager
Date: ___________________________
APPROVAL RECOMMENDED:
By: ______________________________
Name:
Title: Human Resources Director
ATTEST:
By: ______________________________
Name: Jannette Goodall
Title: City Secretary
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 and reporting requirements.
By: _______________________________
Name: Danielle Caster
Title: Human Resource Manager
APPROVED AS TO FORM AND LEGALITY:
By: ______________________________
Name: Keanan Matthews Hall
Title: Sr. Assistant City Attorney
CONTRACT AUTHORIZATION:
M&C: 20-0648
Vendor: Sedgwick Claims Management, Services
By:
Name: J. Edward Peel
Title: Vice President
Date: ____________________________
October 16, 2025
M&C Review
CITY COUNCIL AGENDA
DATE: 9/15/2020 REFERENCE **M&C 20- LOG NAME:
NO.: 0648
CODE: P TYPE: CONSENT PUBLIC
HEARING:
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Official site of the Ciry of Fort Worth, Texas
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13P 20-0148 WORKERS'
COMPENSATION
ADMINISTRATION HRD JPB
NO
SUBJECT: (ALL) Authorize Execution of an Agreement with Sedgwick Claims Management
Services, Inc. for Workers' Compensation Administration and Related Services for a Flat
Fee Up to $725,967.00 for the First Year and about a 2.5% Increase in the Subsequent
Years (Year 2-$744,116.00, Year 3-$762,719.00, Year 4-$781,878.00, and Year 5-
$801,332.00), for a Five-Year Initial Term with Option to Renew Up to Two Additional
One-Year Terms at the City's Sole Discretion
RECOMMENDATION:
It is recommended that the City Council authorize the execution of an agreement with Sedgwick
Claims Management Services, Inc. for workers' compensation administration and related services for
a flat fee up to $725,967.00 for the first year and about a 2.5\% increase in the subsequent years
(year 2-$744,116.00, year 3-$762,719.00, year 4-$781,878.00, and year 5-$801,332.00), for a
five-year initial term with option to renew up to two additional one-year terms at the City's sole
discretion, and authorize claims and associated costs to be paid for estimated claims expenses in the
initial one-year period up to $9,400,000.00 and an estimated 5 percent increase in future years (year
2-$9,870,000.00, year 3-$10,380,000.00, year 4-$10,890,000.00, and year 5-$11,430,000.00).
DISCUSSION:
The Human Resources Department (HRD) approached the Purchasing Division to secure an
agreement for workers' compensation administration and related services. The services includes: (1)
third party claims administration services for a self-funded workers' compensation program to
include claims adjusting, claims investigations, claims payments, establishing reserves, and claims
management reports; (2) medical case management to include field and telephonic case
management and vocational case management; (3) medical cost containment to include field and
telephonic case management, early intervention, medical bill auditing, preauthorization and
reconsideration determinations, utilization review, and durable medical equipment management; (4)
pharmacy benefits management to include developing and maintaining a drug formulary, contracting
with pharmacies, negotiating discounts and rebates with drug manufacturers, processing and paying
prescription drug claims, and working with the City and the vendor to maintain or reduce pharmacy
expenditures and improving health care outcomes of City employees; (5) 504 medical provider
program — administration of the City's "BlackStone Provider Panel" to include provider credentialing,
website maintenance, and maintenance of claimant and healthcare provider policies and
procedures; (6) related services, such as Department of Workers' Compensation Austin
Representatives, actuarial services, claims auditing, private investigations, legal representation at
hearings; and (7) other such services. The York Risk Services Group, Inc. has been providing these
services since November 1, 2015 under its previous Agreement (City Secretary Contract (CSC)
No. 47186; Mayor and Council communication (M&C) C-27435) with the City. This agreement will
expire on October 31, 2020.
Staff issued a Request for Proposals (RFP) that consisted of detailed scope of services. The RFP
was advertised in the Fort Worth Star-Telegram every Wednesday from May 13, 2020 through June
24, 2020. Seventeen vendors were solicited from the purchasing database; eleven responses were
received.
An evaluation team consisting of staff from the HRD, the Police Department, the Fire Department, the
Law Department and the Diversity and Inclusions Department evaluated proposals received. The
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M&C Review
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evaluation team ranked the proposals based on pre-defined factors. Three finalists were selected for
presentations. Following the presentations, the evaluation team determined Sedgwick Claims
Management Services, Inc. provides the best overall services and recommended that the City
Council authorize the execution of agreement for an initial five-year term with options to renew up to
two additional one-year terms at the City's sole discretion.
The flat fee for the initial one-year period is up to $725,967.00 and anticipated to trend at about a 2.5
percent increase in subsequent years (year 2-$744,116.00, year 3-$762,719.00, year 4-
$781,878.00, year 5-$801,332.00, year 6-$821,365.00, and year 7-$841,899.00). In addition,
claims and associated cost will be budgeted for in the respective fiscal years and paid. The estimated
claims expenses for the initial one-year period is up to $9,400,000.00 and anticipated to trend
at about a 5 percent increase in future years (year 2-$9,870,000.00, year 3-$10,380,000.00, year 4
-$10,890,000.00, year 5-$11,430,000.00, year 6-$12,000,000.00, and year 7-$12,600,000.00).
An administrative change order or increase may be made by the City Manager up to the amount
allowed by relevant law and the Fort Worth City Code and does not require specific City Council
approval as long as sufficient funds have been appropriated.
Sedgwick Claims Management Services, Inc. is in compliance with the City's BDE Ordinance by
committing to 10 percent MBE-AA (Minority Business Enterprises - African American) participation on
this project. The City's goal on this project is 10 percent MBE-AA.
Upon City Council approval, the five-year term of this contracts shall begin on November 1, 2020 and
expire on October 31, 2025. The contract may be renewed for up to two successive one-year term at
the City's option. This action does not require specific City Council approval, provided that the City
has appropriated sufficient funds to satisfy the City's obligations during the renewal term. The
contract will include a standard fiscal funding out clause that would comply with state law
requirements by allowing the City to terminate the Agreement without penalty, if in the future, the
Council elects not to appropriate funds for contracted services.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations funds are
available upon adoption of the Fiscal Year 2021 Budget by the City Council, funds will be available in
the Fiscal Year 2021 Operating Budget, as appropriated, in the Risk Financing Fund. Prior to an
expenditure being incurred, the Human Resources Department has the responsibility to validate the
availability of funds.
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�Fund Department Account Project Program Activity Budget I Reference # Amount
ID ID � � Year (Chartfield 2)
Fund Department Account Project Program Activity Budget Reference #
ID ID Year IChartfield 7
Submitted for City Manager's Office b�
Oriqinatinq Department Head:
Additional Information Contact:
Jay Chapa (5804)
Reginald Zeno (8517)
Cynthia Garcia (8525)
John Padinjaravila Baby (2279)
Amount
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M&C Review
ATTACHMENTS
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City Secretary’s Office
Contract Routing & Transmittal Slip
*Indicates the information is required and if the information is not provided, the contract will be
returned to the department.
Contractor’s Name:
Subject of the Agreement:
M&C Approved by the Council? *Yes No
If so, the M&C must be attached to the contract.
Is this an Amendment to an Existing contract? Yes No
If so, provide the original contract number and the amendment number.
Is the Contract “Permanent”? *Yes No
If unsure, see back page for permanent contract listing.
Is this entire contract Confidential?*Yes No If only specific information is
Confidential, please list what information is Confidential and the page it is located.
Effective Date: Expiration Date:
If different from the approval date. If applicable.
Is a 1295 Form required?* Yes No
*If so, please ensure it is attached to the approving M&C or attached to the contract.
Project Number:If applicable.
*Did you include a Text field on the contract to add the City Secretary Contract (CSC)
number? Yes No
Contracts need to be routed for CSO processing in the following order:
(Approver)
Jannette S. Goodall (Signer)
Allison Tidwell (Form Filler)
Permanent Contracts
Advanced Funding Agreements
Architect Service
Community Facilities
Completion Agreement
Construction Agreement
Credit Agreement/ Impact Fees
Crossing Agreement
Design Procurement
Development Agreement
Drainage Improvements
Economic Development
Engineering Services
Escrow Agreement
Interlocal Agreements
Lake Worth Sale
Maintenance Agreement/Storm Water
Parks/Improvement
Parks/Other Amenities
Parks/Play Equipment
Project Development
Property/Purchase (Property owned by the City)
Property/Sales (Property owned by the City)
Property/Transfers (Property owned by the City)
Public Art
Sanitary Sewer Main Replacements
Sanitary Sewer Rehabilitations
Settlements (Employees Only)
Streets/Maintenance
Streets/Redevelopment
Streets/Repairs
Streets/Traffic Signals
Structural Demolition (City owned properties)
Utility Relocation
Water Reclamation Facility
Water/Emergency Repair
Water/Interceptor
Water/Main Repairs
Water/Main Replacement
Water/Sanitary Sewer Rehabilitation
Water/Sewer Service
Water/Storage Tank