City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00089 6/27/2023 Consent Item 27.
Approval of Professional Services Agreements for Workers Compensation Sub-Rosa Investigation Services
File ID: 2023-00089
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager, or City Manager’s designee, to execute professional services agreements for sub rosa investigative services with 1) APEX Investigation, 2) Veracity Research Co., L.L.C., and 3) Freese and Gianelli Inc., dba as Status Investigative Group, each contract for a cost not to exceed $200,000, and for a term of three years.
Contact: Natalie Dempsey, 916-808-7260, [email protected], Human Resources Presenter: None
Attachments:
1-Description/Analysis
2-Apex Investigation Services contract
3-Status Investigative Group contract
4-Veracity Research Co. LLC contract
Additional Description/Analysis
Issue Detail: The City’s current three-year contract for Workers Compensation Sub-Rosa Investigation Services is expiring in June 2023. On May 2, 2023, the City initiated Request for Proposals (RFP) P23081371001 for Sub-Rosa Investigation Services to identify a qualified firm or firms to provide quality investigation services for Worker Compensation claims. Ten proposals were received in response to the RFP. Each proposal was reviewed by a four-person review panels which included City staff with knowledge and understanding of the needs related to the City’s Workers’ Compensation Program.
Proposal ratings were based on the evaluation criteria listed in the RFP:
Cost of services 25
Prior experience 30
Technical compliance with the RFP Specifications 15
Quality, ability, capacity and skill of the proposer to perform the duties specified in the RFP
15 The character, integrity, reputation, judgement, experience and efficiency of the proposer
10 Local Business Enterprise (LBE) 5
File ID: 2023-00089 6/27/2023 Consent Item 27.Cost of services 25 Prior experience 30
Technical compliance with the RFP Specifications 15
Quality, ability, capacity and skill of the proposer to perform the duties specified in the RFP
15 The character, integrity, reputation, judgement, experience and efficiency of the proposer
10 Local Business Enterprise (LBE) 5
APEX Investigation, Veracity Research Co., L.L.C. (formerly known as Probe), and the newly proposed contractor, Freese and Gianelli Inc., operating as Status Investigative Group, have been awarded the highest rankings and have demonstrated a comprehensive understanding of the City's requirements for Sub-Rosa and Investigation services for Workers Compensation claims.
As the incumbent contractors, APEX Investigation and Veracity Research Co. have consistently delivered full-service anti-fraud investigations, exceptional customer service, and offered innovative solutions to safeguard the City against the financial risks associated with insurance abuse and fraud.
These companies possess highly skilled, extensively trained investigators capable of conducting various types of investigations to identify, deter, and prevent potential instances of insurance fraud and abuse. They also employ state-of-the-art technology to enhance operational efficiency and reduce claim expenses. Freese and Gianelli Inc., doing business as Status Investigative Group, is a new addition to the panel of Sub-Rosa Investigation services. Their selection was based on decisive references, experience working with public entities, established presence in the industry, and competitive pricing.
Considering these factors, Staff recommends approving a Professional Services Agreements with APEX Investigation, Veracity Research Co., and the new vendor, Freese and Gianelli Inc., operating as Status Investigative Group.
Policy Considerations: City Council approval is required to execute agreements for services if the amount to be expended under each such agreement is $250,000 or more. This recommendation is consistent with City Code section 3.56 and in accordance with Procurement Policy Number AP-4101 Section 1.1(b)
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by CEQA Guidelines sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA. (CEQA Guidelines, section 15060(c)(3).)
File ID: 2023-00089 6/27/2023 Consent Item 27.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: In accordance with City and State policies, as well as legal requirements, the Workers' Compensation Unit of the Human Resources Department is mandated to investigate and report potential Workers Compensation abuse and fraud. When an insurer or licensed rating organization knows or reasonably believes it knows the identity of a person or entity whom it has reason to believe committed a fraudulent act relating to a workers' compensation insurance claim, they shall notify the local district attorney's office and the Fraud Division of the Department of Insurance under Insurance Code 1877.3(b)(1). These proposed contractors will aid in the complete investigation and state-mandated reporting requirements. To continue providing these crucial services beyond the expiration of the current contract, new contracts are necessary.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): LBE Preference was included in the sourcing event. APEX Investigation Services and Veracity Research Co., L.L.C. qualified as local business enterprises.