Explanation
BACKGROUND
This ordinance authorizes the Director of the Department of Human Resources to enter into a service contract with Sedgwick Claims Management Services, Inc. in the amount of up to $55,000.00 for the Workers Compensation Third-Party Administrator (“TPA”) contract.
The Department of Human Resources, Risk Management Office, requires services to verify the accuracy of the Bureau of Workers' Compensation payroll and claims data for the City of Columbus; to provide occupational injury management data, general workers' compensation consulting services; to calculate the allocation of workers' compensation claims experience by department, division, and fund; to conduct claims management on a per request basis; and to attend Industrial Commission hearings on a per request basis.
The Department of Human Resources solicited Requests for Proposals (RFP) for the Workers Compensation TPA contract. The RFP was formally advertised on the Vendor Services and Bonfire website from March 26, 2024, to April 26, 2024. The city received five (5) responses. All proposals were deemed responsive and were fully evaluated. The responding firms were:
Company Name City/State Diversity Compliance
Insurance Program Managers Group St. Charles, IL Unknown
Matrix Claims Management Cincinnati, OH Unknown
Minutemen HR Management Services LLC Cleveland, OH Majority
Sedgwick Claims Management Services, Inc. Cleveland, OH Majority
Spooner Incorporated Westlake, OH Majority
Sedgwick Claims Management Services, Inc. received the highest score from the evaluation committee and will be awarded the Workers Compensation TPA contract.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against Sedgwick Claims Management Services, Inc.
CONTRACT COMPLIANCE
Sedgwick Claims Management Services, Inc.’s contract compliance number is CC-035107 and expires on 9/26/2026.
FISCAL IMPACT
Funding for this contract will be available within Fund 5502, the Employee Benefits Fund. This ordinance is contingent on the passage of the 2025 Other Funds operating budget, Ordinance 3036-2024.
EMERGENCY DESIGNATION
Emergency action is requested so Workers Compensation TPA services may continue without disruption.
Title
To authorize the Director of the Department of Human Resources to enter into a service contract with Sedgwick Claims Management Services, Inc. for the Workers Compensation TPA services; to authorize the expenditure of up to $55,000.00 from the Employee Benefits Fund to pay for this contract; and to declare an emergency. ($55,000.00)
Body
WHEREAS, there is a need to enter into a service contract to provide Compensation TPA services; and
WHEREAS, the Department of Human Resources solicited Requests for Proposals for the Compensation TPA service contract; and
WHEREAS, Sedgwick Claims Management Services, Inc. submitted the best overall proposal for this service; and
WHEREAS, the term of the contract is three years, with the option to extend, upon mutual agreement, for two additional one-year contracts, subject to appropriation; and
WHEREAS, this ordinance represents funding authority for the first year of the three-year contract; and
WHEREAS, it is necessary to enter into a contract with Sedgwick Claims Management Services, Inc. for the provision of professional services described above in the amount of up to $55,000.00; and
WHEREAS, it is necessary to authorize the expenditure of up to $55,000.00 from the Employee Benefits Fund to pay for the contract; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Human Resources in that it is immediately necessary to authorize the Director of the Department of Human Resources to enter into contract with Sedgwick Claims Management Services, Inc. in order to provide funding for the Compensation TPA services so that services may continue without disruption, all for the immediate preservation of the public health, peace, property, safety and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Human Resources be, and hereby is, authorized to enter into a service contract with Sedgwick Claims Management Services, Inc., of PO Box 89456, Cleveland, OH 44101, for the Compensation TPA service contract from March 1, 2025, through February 29, 2028, in an amount up to $55,000.00. The contract may be renewed for two additional one-year terms, upon mutual agreement of the Department and Sedgwick Claims Management Services, Inc., subject to sufficient appropriations and City Council authorization.
SECTION 2. That the expenditure of $55,000.00, or so much thereof as may be needed, is hereby authorized in Fund 5502 (Employee Benefits Fund), Dept-Div 4601 (Human Resources), in Object Class 03 (Purchased Services) per the accounting codes in the attachment to this ordinance.
SECTION 3. Funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.