Agenda Item
Meeting Date:
9/17/2019 - 6:30 PM  
Category:
ITEMS OF BUSINESS  
Type:
Action  
Subject:
9. Action on Request to Waive Administrative Policy 3.09(9)(e) and to Extend a Contract with Gallagher Bassett Services, Inc., for Third-Party Administration of the District's Self-Insured Workers' Compensation Program  
Strategic Plan Compatibility Statement:
Goal 3
Effective and Efficient Operations
 
Policy:
Admin Policy 3.09 - Purchasing and Bidding Requirements  
Attachments:
Original Contract and Proposed Extension  
File Attachment:
1. C025823 Gallagher Bassett Services, Inc., Original Contract.pdf
2. C025823 Gallagher Bassett Services, Inc., Extension.pdf
 
Background:
The Administration is requesting authorization to waive the three-year term limit of Administrative Policy 3.09(9)(e) and to extend a contract with Gallagher Bassett Services, Inc., (“Gallagher Bassett”) for third-party administration of the District’s self-insured workers’ compensation program.

In 2015, a Request for Proposal (RFP) was issued for the third-party administration of the District’s self-insured workers’ compensation program. At the conclusion of the RFP process, Gallagher Bassett was selected as the awardee. In September 2016, the Board authorized a three-year contract with Gallagher Bassett, with two one-year options to extend.

While in discussions with Gallagher Bassett to use the first one-year extension, the Administration was able to negotiate better pricing upon the agreement of a three-year extension. Considering the quality of services received and the overall satisfaction which the Administration has with Gallagher Bassett’s performance, the Administration believes a three-year extension is an ideal option for the District.

As such, the Administration is requesting a waiver of the three-year term limit of Administrative Policy 3.09 to extend the current contract with Gallagher Bassett for an additional three-year term. This contract extension will run from October 1, 2019, through October 1, 2022. The cost of each extension year will not exceed $250,000, and the total cost of the three-year extension term will not exceed $750,000.
 
Fiscal Impact Statement:
This item authorizes expenditures as indicated in the attachment.

INJ-0-0-DIJ-DW-EWCM..........$750,000
 
Implementation and Assessment Plan:
Upon approval by the Board, the extension will begin as indicated in this item.  
Recommendation
The Administration recommends that the Board authorize the waiver of Administrative Policy 3.09(9)(e) and approve the extension with Gallagher Bassett Services, Inc., as set forth in this item.  
Approvals:
Recommended By:
Signed By:
Leila Sadoughian - Procurement Coordinator
Signed By:  
Adria D Maddaleni - Director
Signed By:  
Regina Flores - Contract Compliance Supervisor II
Signed By:  
Martha Kreitzman - Chief Financial Officer
Signed By:  
Christopher Hauser - Deputy Superintendent
Signed By:  
Keith Posley, Ed.D. - Superintendent