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Committee backs $5.2 million contract to manage city workers' compensation claims
Summary
The Human Resources Committee recommended approval of a contract not to exceed $5,200,764 over four years with Work Partners (incumbent) to provide third‑party administration of the city’s workers’ compensation program.
The Human Resources Committee voted Wednesday to recommend approval of a professional services contract authorizing third‑party administration of the City of Pittsburgh’s workers’ compensation program for a total cost not to exceed $5,200,764 over four years.
Paula Kellerman, Human Resources director, and Pam Petro Ott, assistant director of employment compensation and benefits, explained that the contract was procured through an RFP process and that Work Partners, the incumbent administrator, was the only respondent. Kellerman said the contract extends through 2028 and includes modest annual increases (about 2.9% per year) that cover 2024 and subsequent years.
Council members asked how the vendor is paid and what the city pays in compensation claims. Kellerman said she would provide the total city payout for workers’ compensation claims upon request; she and staff stated that Work Partners has produced savings that offset management costs during prior contract periods.
Council members also asked why the city received a single bid. Kellerman and staff said a small number of firms have capacity to manage complex municipal programs, and that the city extended the RFP period to encourage competition but received no other bids. The staff added that UPMC and other large regional organizations have the depth to serve municipal clients.
A motion to approve the contract passed in committee and was recorded as an affirmative recommendation.
Votes at the meeting: Committee approved Bill 1375 with an affirmative recommendation.
