Approval of Third Modification to Agreement with Origami Risk, Inc. for Claims Management Software Subscription Services
Information
Department: Finance Department, Risk Management
Administration
Sponsors:
Category: 03. Consent Calendar
Attachments
3.22.2016 Staff ReportOrigami Oaks Initiatve Form
Recommended Action
Recommended ActionStaff recommends that the City Council authorize the City Manager to negotiate and execute a third modification to agreement #10275 for an additional three years in the amount of $362,400 with Origami Risk, Inc., an Illinois-based company, for claims management software subscription services for the Finance Department. This will result in an eight-year amended agreement with a new total amount not to exceed $953,753, with future year funding contingent on Council budget approval.
Staff Report Body
SummaryIn 2016, the City purchased an automated claims management system from Origami Risk, Inc. (Origami). The system is necessary for staff totrack, manage, and report on the City’s liability and workers’ compensation claims in compliance with various laws and regulations. The currentagreement with Origami that includes an ongoing software subscription and maintenance and support services is set to expire in May 2021. To continue using the existing claims management system and receive critical technical support, a modification to extend the term of the agreement by an additional three years is required. This third modification would increase the contract by $362,400 resulting in an 8-year amended agreement in an amount not to exceed $953,753. Origami is the only vendor qualified to provide support for its proprietary claims management City of Santa Monica
California
Staff Report
4510
Approval of Third Modification to Agreement with Origami Risk, Inc. for Claims Management... http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1265&MediaPos... 1 of 3 4/28/2021, 8:55 AM
software system. As such, staff seeks authority to proceed with the modification on a sole source basis under the exception to the competitive process set out in Santa Monica Municipal Code Section 2.24.250 (b). DiscussionThe Finance Department oversees the City’s two Self-Insurance Programs. The Liability Program provides funding to investigate, defend and pay all damages for general, auto and transit liability claims, and lawsuits filed against the City. The Workers’ Compensation Program funds allexpenses associated with employee work-related injuries, including medical care and indemnity payments. Risk Management staff isresponsible for processing all liability claims and most workers’ compensation claims. Staff utilize a claims management system for routine taskssuch as issuing payments, tracking claim activity, updating reserves, and generating notices. The system is also used to provide required workers’ compensation reporting to the California Department of Industrial Relations and the Centers for Medicare and Medicaid Services. In addition, a claims system generates data to track the overall financial and operational performance of the Self-Insurance Programs. On March 22, 2016 (Attachment A), Council approved an agreement with Origami for claims management software subscription services after staff completed an extensive RFP process. The implementation of the Origami claims management system was completed in January 2017.Since then, it has been a highly functioning and easy-to-use system, with several unique features that have enabled staff to efficiently administerclaims. The most valuable feature is the portal for employees to submit injury reports online, which allows workers’ compensation claims to beset-up faster, which in turn, has sped up authorization of initial medical care, commencement of the investigation process, issuance of benefitpayments, and return of injured employees to work. The Origami system has other robust capabilities, such as automated reporting, system generated emails, and integration with other systems. Lastly, the customer service from Origami has been dependable.The first and second modifications to the original agreement were executed in March 2018 and July 2019, respectively. These modificationsincluded additional system features and did not require Council approval, as they did not impact the agreement’s previously authorized total cost of $591,353.The current agreement with Origami expires this May. A modification extending the agreement is necessary to continue to receive regularsystem updates and support services. The Origami software is a proprietary product and only Origami can provide these services for its software. Engaging a new software maintenance and support company would necessitate purchasing a new claims management system, which would be much more costly than maintaining the current system and would involve significant disruption to Risk Management’s operations.
Past Council Actions
Meeting Date Description
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March 22, 2016
(attachment A)
Authorize agreement with Origami Risk, Inc. following RFP process Financial Impacts and Budget ActionsThe annual cost for each year under the proposed modification is $120,800, a four percent increase from the last year of the original agreement.
The agreement will continue to be funded by the City’s Self-Insurance Funds, which are financed with contributions from all City Departments.Staff seeks authority to approve funding from the General Liability/Auto, Transit, and Workers’ Compensation Funds to increase the amount of the agreement with Origami Risk, Inc. for claims management software subscription services. Funds are available in the adopted FY 2020-21budget. Future year funding is contingent on Council budget approval.
Contract Modification Request
Agreement #
Current
Authorized
Amount
Modified
Request
Amount
Dept Account #
Total Revised
Contract
Amount
10275 $147,838 $90,600 72800002.529230 $238,43810275 $147,838 $90,600 73800002.529230 $238,43810275 $295,677 $181,200 74800002.529230 $476,877 Total $953,753
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Approval of Third Modification to Agreement with Origami Risk, Inc. for Claims Management... http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1265&MediaPos... 3 of 3 4/28/2021, 8:55 AM