DATE: January 24, 2023
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Suspension of Competition Agreement with Public Risk Innovation, Solutions, and Management
RECOMMENDED ACTION(S):
TITLE
1. Make a finding that is in the best interest of the County to suspend the competitive bidding process consistent with Administrative Policy No. 34 for unusual or extraordinary circumstances for an internet-based software system to track claims and obtain reports. Public Risk Innovation, Solutions, and Management (PRISM) is the only vendor with a Master Agreement with Insurity Software, which allows PRISM to offer the software to clients at a discounted rate; and,
2. Approve and authorize the Chairman to execute a retroactive Agreement with PRISM for the software license for Insurity Software to track the County’s general liability and medical malpractice claims, effective July 1, 2022, not to exceed five consecutive years which includes a three-year base contract and with two optional one-year extensions, at a total not to exceed $78,456.
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow for continued software support for the County’s general liability and medical malpractice claims. This item is Countywide.
ALTERNATIVE ACTION(S):
If your Board does not approve the recommended actions, the Department of Human Resources, Risk Management, will be required to obtain the software directly through a vendor at a much greater cost.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
PRISM provides the County’s general liability and medical malpractice excess insurance coverage. The Risk Management Division of Human Resources administers all general liability and medical malpractice claims against the County. A claims software system is essential to track those claims. The County has utilized Insurity Software offered through PRISM since 2014. The Department’s request to waive the competitive bidding process is consistent with Administrative Policy No. 34 as PRISM is a governmental agency and is the only vendor that can provide continuity of services at the negotiated discounted rate. This claims system is necessary to administer the County’s general liability and medical malpractice programs as it allows the County to track and document claims, reserves, litigation, payments and support loss prevention efforts through statistical analysis of the claims history and obtain reports. A letter of interest was not issued, as this agreement is for the continued use of the Insurity Software as provided by PRISM through Agreement No. P-19-581-O. ISD-Purchasing concurs with the Department’s request to suspend the competitive bidding process.
RETROACTIVE AGREEMENT:
The recommended agreement is retroactive to July 1, 2022. The prior Procurement Agreement No. P-19-581-O expired on July 14, 2022, and because PRISM is a government agency, Board of Supervisor approval is required for this new Agreement for services that commenced on July 1, 2022. Once the inability to extend Procurement Agreement P-19-581-O was discovered the Department of Human resources drafted the new Agreement. After lengthy negotiations, the recommended agreement was finalized on November 21, 2022, by the Department of Human Resources and PRISM. Subsequent time for processing delayed this item from being placed on an earlier Board date.
An invoice for services for FY 22/23 was received from PRISM on July 13, 2022, in the amount of $12,722.66. However, due to the addition of two additional user licenses, the total amount due upon approval of the Agreement will be $19,922.66.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. Sufficient appropriations for this agreement have been included with Human Resources Risk Management Org 8925 FY 2022-23 Adopted Budget. The total estimated cost of this agreement will be part of program costs recovered through the Risk Management Internal Service Fund (ISF) general liability rates.
DISCUSSION:
On April 4, 2013, The California State Association of Counties Excess Insurance Authority (CSAC EIA) entered into a Master Software License and Professional Services Agreement with Systema Software, LLC (Systema), by which CSAC EIA was authorized to license the Systema claims management system to its clients. PRISM is a successor in interest to CSAC EIA, including to all rights and obligations of CSAC EIA pursuant to the Master Services Agreement. Insurity, Inc. is a successor in interest to Systema, including to all rights and obligations of Systema Pursuant to the Master Services Agreement. PRISM conducted a Request for Proposal and determined that Insurity, Inc. provided the best claims management system and the best license agreement for PRISM members. The Insurity license provides the use of the software at a reduced price.
On July 15, 2014, the County entered into an Agreement with PRISM to provide a license for use of Insurity software for tracking the County’ general liability and medical malpractice claims. On November 18, 2019, the agreement was renewed through Procurement Agreement P-19-581-O for three years, with two optional one-year extensions.
Insurity provides an internet-based system that is accessible to PRISM to provide direct support to the County as well as claims reporting services. The software allows the County to input valuable data, such as the location of the incident, type of claim, reserves, amount paid, along with the ability to upload emails and other documents, which facilitates the timely handling of the County’s general liability and medical malpractice claims.
REFERENCE MATERIAL:
BAI #58, July 15, 2014
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition
On file with the Clerk - Agreement with PRISM
CAO ANALYST:
Greg Reinke