Title
Property and Casualty Claims Third Party Administration Services
Action
Action:
A. Approve unit price contracts with the following companies for Property and Casualty Claims Third Party Administration Services for an initial term of three years:
- Davies Claims North America, Inc.,
- Preferred Adjusters of the Carolinas, Inc., dba Preferred Solutions (SBE), and
B. Authorize the City Manager to renew the contracts for up to two, one-year renewal terms with possible price adjustments and to amend the contracts consistent with the purpose for which the contracts were approved.
Body
Staff Resource(s):
Teresa Smith, Finance
Matthew Hastedt, Finance
Tammy Wrobleski, Finance
Explanation
§ The city’s Risk Management division coordinates the investigation and payment of property and casualty claims for the City, Mecklenburg County, and Charlotte-Mecklenburg Schools.
§ Property and casualty claims requiring field and after-hours responses and investigations are outsourced to a third-party administrator.
§ Third-party administrator services may include:
- Performing field investigations;
- Maintaining claim files and records;
- Coordinating investigations on litigated claims;
- Investigating and pursuing opportunities for subrogation;
- Providing loss mitigation services; and
- Establishing initial reserves.
§ On October 22, 2024, the city issued a Request for Proposals (RFP); six responses were received.
§ The companies selected best meet the city’s needs in terms of qualifications, experience, cost, and responsiveness to the RFP requirements.
§ At renewal, potential price adjustments may be considered based on legitimate and justified increases in the cost of doing business. The ability to consider price adjustments also allows the city to accept decreases, if warranted.
§ Annual aggregate expenditures are estimated to be $1,100,000.
Charlotte Business INClusion
The following Prime Consultant is an SBE firm and will self-count participation of the total contract amount:
§ Preferred Adjusters of the Carolinas, Inc. Solutions (SBE) (consulting)
The city negotiates contract participation after the proposal selection process. Davies Claims North America, Inc. has committed 10.00% of the total contract amount to the following certified firm(s):
§ Absolute Staffing & Consulting Solutions (MBE) (personnel, employment consulting)
Fiscal Note
Funding: City of Charlotte Risk Management Fund; Mecklenburg County Risk Management Fund; Charlotte-Mecklenburg Schools Risk Management Fund