Workers Compensation Claim Administrator

OFFICE OF HEALTH AND SAFETY
REQUEST FOR PROPOSALS
WORKERS COMPENSATION CLAIM ADMINISTRATOR
SPECIFICATION NO. CM25-0292F
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City of Tacoma
The Office of Health and Safety
REQUEST FOR PROPOSALS CM25-0292F
Workers Compensation Claim Administrator
Submittal Deadline: 11:00 a.m., Pacific Time, Tuesday, May 5, 2026
Submittals must be received by the City's Procurement and Payables Division by 11:00 a.m. Pacific Time.
For electronic submittals, the City of Tacoma will designate the time of receipt recorded by our email server, as
the official time of receipt. This clock will be used as the official time of receipt of all parts of electronic bid
submittals. Include the specification number in the subject line of your email. Your submittal must be sent as
an attachment, links to your electronic submittal will not be accepted.
For in person submittals, the City of Tacoma will designate the time of receipt recorded by the timestamp
located at the lobby security desk, as the official time of receipt. Include the specification number on the
outside of the sealed envelope. Late submittals will be returned unopened and rejected as non-responsive.
Submittal Delivery: Sealed submittals will be received as follows:
By Email: In Person:
sendbid@tacoma.gov Tacoma Public Utilities Administration Building North,
Maximum email size including attachments: 35 MB. Main Floor, Lobby Security Desk
Multiple emails may be sent for each submittal. 3628 South 35th Street
Tacoma, WA 98409
Note: Email may pass through multiple servers before arriving Monday - Friday 8:00 am to 4:30 pm
at its destination. Please allow sufficient time for email delivery
of submittals. Timely electronic delivery is at the risk of the
supplier.
Bid Opening: Submittals must be received by the City's Procurement and Payables Division prior to 11:00
a.m. Pacific Time. Sealed submittals in response to a RFB will be opened Tuesday's at 11:15 a.m. by a
purchasing representative and read aloud during a public bid opening held at the Tacoma Public Utilities
Administrative Building North, 3628 S. 35th Street, Tacoma, WA 98409, conference room M-1, located on the
main floor. They will also be held virtually Tuesday's at 11:15 a.m. Attend a Zoom meeting via this link or call 1
(253) 215 8782, using meeting ID # 884 0268 0573, passcode # 070737.
Submittals in response to an RFP, RFQ or RFI will be recorded as received, but not read at bid opening. As
soon as possible, after 1:00 PM, on the day of submittal deadline, preliminary results will be posted to
www.TacomaPurchasing.org.
If you believe your submittal was sent timely and was not read at bid opening, please contact
sendbid@tacoma.gov immediately.
Solicitation Documents: An electronic copy of the complete solicitation documents may be viewed and
obtained by accessing the City of Tacoma Purchasing website at www.TacomaPurchasing.org.
* Register for the Bid Holders List to receive notices of addenda, questions and answers and related updates.
* Click here to see a list of vendors registered for this solicitation.
Pre-Proposal Meeting: A pre-proposal meeting will not be held.
Project Scope: Third Party Provider to Administer Workers' Compensation Claims
Estimate: $2,000,000
Paid Sick Leave: The City of Tacoma requires all employers to provide paid sick leave in accordance with
State of Washington law.
Form No. SPEC-040C Revised: 06/03/2024
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Americans with Disabilities Act (ADA Information: The City of Tacoma, in accordance with Section 504 of
the Rehabilitation Act (Section 504) and the Americans with Disabilities Act (ADA), commits to
nondiscrimination on the basis of disability, in all of its programs and activities. Specification materials can be
made available in an alternate format by emailing the contact listed below in the Additional Information section.
Title VI Information:
"The City of Tacoma" in accordance with provisions of Title VI of the Civil Rights Act of 1964, (78 Stat. 252, 42
U.S.C. sections 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively
ensure that in any contract entered into pursuant to this advertisement, disadvantaged business enterprises
will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated
against on the grounds of race, color, national origin in consideration of award.
Additional Information: Requests for information regarding the specifications may be obtained by contacting
Hailey Erichsen by email to Herichsen@tacoma.gov.
Protest Policy: City of Tacoma protest policy, located at www.tacomapurchasing.org, specifies procedures for
protests submitted prior to and after submittal deadline.
Meeting sites are accessible to persons with disabilities. Reasonable accommodations for persons with
disabilities can be arranged with 48 hours advance notice by calling 253-502-8468.
Form No. SPEC-040C Revised: 06/03/2024
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TABLE OF CONTENTS
SUBMITTAL CHECK LIST ......................................................................................................... 5
1. BACKGROUND .................................................................................................................. 6
2. MINIMUM REQUIREMENTS .............................................................................................. 7
3. SCOPE OF SERVICES AND DELIVERABLES................................................................... 8
4. CONTRACT TERM ............................................................................................................. 9
5. CALENDAR OF EVENTS ................................................................................................... 9
6. INQUIRIES ........................................................................................................................10
7. PRE-PROPOSAL MEETING..............................................................................................10
8. DISCLAIMER .....................................................................................................................10
9. EVALUATION CRITERIA ...................................................................................................10
10. CONTENT TO BE SUBMITTED - This section represents 100% of the possible scoring
criteria. ......................................................................................................................................11
11. INTERVIEWS / ORAL PRESENTATIONS .....................................................................14
12. RESPONSIVENESS .....................................................................................................14
13. ACCEPTANCE / REJECTION OF SUBMITTALS ..........................................................15
14. CONTRACT OBLIGATION ............................................................................................15
15. STANDARD TERMS AND CONDITIONS ......................................................................15
16. INSURANCE REQUIREMENTS ....................................................................................15
17. PARTNERSHIPS ..........................................................................................................15
18. COMMITMENT OF FIRM KEY PERSONNEL ...............................................................16
19. AWARD .........................................................................................................................16
20. ENVIRONMENTALLY PREFERABLE PROCUREMENT ..............................................16
21. PROPRIETARY OR CONFIDENTIAL INFORMATION ..................................................16
22. ADDENDUMS ...............................................................................................................17
23. LEAP REQUIREMENTS................................................................................................17
24. EQUITY IN CONTRACTING .........................................................................................17
APPENDIX A ............................................................................................................................18
APPENDIX B ............................................................................................................................22
Request for Proposal Specification No. CM25-0292F
Template Revised: 08/01/2025
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SUBMITTAL CHECK LIST
This checklist identifies items to be included with your submittal. Any submittal received without
these required items may be deemed non-responsive and not be considered for award.
Submittals must be received by the City of Tacoma Purchasing Division by the date and time
specified in the Request for Proposal page.
The following items make up your submittal package:
One electronic copy of your complete submittal package
Signature Page (Appendices A)
Price Proposal Form (Appendices A)
Information in Section 10 (Content to Be Submitted)
After award, the following documents will be executed:
Services Contract
Certificate of Insurance and related endorsements
Request for Proposal Specification No. CM25-0292F
Template Revised: 08/01/2025
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1. BACKGROUND
The City of Tacoma has been self-insured since 1977. Responsibility for the day-to-day
operations of the City's Workers' Compensation Program resides with the City's Office of Health
and Safety. The workers' compensation claims are managed currently by a third-party
administrator using proprietary software.
The City of Tacoma has approximately 4,074 employees with 22 separate departments.
Including specialty departments, Police, Fire, Power, Water and Rail. The City averages 250
workers' compensation claims per year. This Request for Proposal (RFP) is to solicit proposals
from qualified companies who can provide the City with workers' compensation claims
administration services.
City of Tacoma employees are expected to return to productive work in a timely manner. The
Third-Party Administrator will coordinate and continually monitor the active modified duty and
return to work program and facilitate the transition from time loss to regular duty status.
All respondents must be able to provide all required services listed in the RFP. No partial
proposals will be accepted. Experience working with Municipalities and Railroads is preferred.
CLAIM HISTORY
Year Indemnity Medical Only Total Open Medical Only Open Indemnity
2020 136 104 240 0 1
2021 117 112 229 0 3
2022 132 111 243 0 4
2023 142 142 284 3 24
2024 121 132 253 2 32
2025 143 116 259 45 88
TOTAL 791 717 1508 50 152
Average Volume 132 120 251
Total Open 152 50 202
Paid Avg Paid/Claim
Average Cost
2025 $1,788,859 $6,907
Average Cost
2024 $2,892,667 $11,433
Average Cost
2023 $6,148,503 $21,650
Average Cost
2022 $3,207,945 $13,201
Average Cost
2021 $3,620,797 $15,811
Average Cost
2020 $5,074,397 $20,143
Request for Proposal Specification No. CM25-0292F
Template Revised: 08/01/2025
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To learn more about the City of Tacoma, visit tacoma.gov
Submittals submitted and/or the selected Consultant(s) may be used for projects of similar type
and scope at the sole discretion of the City for up to one year.
2. MINIMUM REQUIREMENTS
2.1 A brief history of the company, showing a minimum of five (5) years experience in
administering self-insured worker's compensation claims.
2.2 A transition plan that will minimize the impact of a new program on the self-insured
worker's compensation program in the City.
2.3 The firm's computer capability and include sample automated claims administration
reports.
2.4 An explanation of the firm's internal audit controls maintained to assure quality and
integrity of service.
2.5 A description of the training provided to claims staff to assure that they are current on
legal and defense issues.
2.6 At least five (5) references of current or recent clients serviced through your offices that
are public entities, political subdivisions, or similar accounts. Previous work with railroads
preferred. Please include project description, length of contract, location of where work
was/is being performed, contact name, address, and phone number.
2.7 A list of all former clients within the last three (3) years, their reasons for no longer using
your services; contact name, address, and phone number.
2.8 Location of office that will process our claims and a list of Washington-based accounts
currently handled by local office;
2.9 A detailed description on how the work is to be performed. Proposers must provide a
detailed written description on how their company will manage this contract. Include a
description of administrative systems and procedures; a copy of claims handling
guidelines, supervisory requirements, quality control procedures, protocols, cost
containment methods and evidence of effectiveness, and a description of loss control,
safety and related capabilities.
2.10 Listing of all professionals used to help assess and manage claims, such as nurse
practitioners, vocational counselors, and attorneys (include contact name, address, phone
number). Please provide a notation indicating the professionals most frequently utilized.
Request for Proposal Specification No. CM25-0292F
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2.11 List of "specialists" you have on staff who can help us with claims management. List
additional cost, if any, for their services. Satisfactory evidence that your firm carries an
errors and omissions insurance policy in excess of $5,000,000.00.
2.12 Each proposer must provide one of the following types of financial information or
acceptable substitutes to establish their financial liability:
2.12.1 Latest Audited Financial Statements (preferred).
2.12.2 Latest Quarterly Report
2.12.3 Dunn & Bradstreet and/or Standard & Poors Ratings
2.12.4 City may require further financial information at a later date.
2.13 Self-insured employers must be licensed by the Department of Labor and Industries. A
third-party administrator must:
2.13.1 Have a current business license in the state of Washington
2.13.2 Demonstrate it meets the requirements for handling claims under WAC 296-15-350
2.13.3 Comply with the reporting requirements in accordance with Title 51 RCW
3. SCOPE OF SERVICES AND DELIVERABLES
It is the City's intent to select a consultant based on qualifications and abilities of the firm and
key project individuals.
SCOPE OF SERVICES
The duties and responsibilities of the adjudicator shall be as follows:
1 Review all claims or loss reports made by City and/or claimant for injury, illnesses, or death.
2 Investigate (photos, statements, reports, etc.) all claims made against City.
3 Arrange for surveillance or activity checks as deemed appropriate and upon approval by City.
4 Assist City in preparing the defense of litigated cases.
5 Attend trials and/or settlement conferences as requested by City.
6 Develop and maintain a file on each claim or loss in accordance with specified City guidelines. Make
sure files are available for review by City or its designee upon request. When requested by City, prepare
a case summary on each claim.
7 Notify excess insurers of claims or occurrences that may potentially approach the agency's per-
occurrence retention, and if requested, provide information of the status of those claims to such insurers.
8 Develop and maintain a claims database to be used in the administration of claims and to generate
reports. This database must include all items specified in Statistical Reporting for Workers Compensation
Claims Administration Service document.
9 Within 15 days following the end of each month, provide City a report to account for individual claims
and aggregate loss experience analysis. This report shall show the status of each open claim as specified
in Attachment B. The report shall include all incident reports and their status.
10 Upon request, furnish City with additional data necessary to prepare financial and statistical reports on
losses or claims.
11 Upon request, provide information on methods and controls used in claims administration.
12 Respond to inquiries from employees regarding the status of their claims against City.
13 Assist with training appropriate City staff on proper claims handling procedures, as requested.
Request for Proposal Specification No. CM25-0292F
Template Revised: 08/01/2025
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14 Provide claims handling materials as appropriate (i.e. claims reporting kits, ID cards, etc.).
15 Assume responsibility for subrogating all cases where a potential recovery exists, including
investigation, evaluation, and negotiation of all subrogation cases.
16 Assume all open claims from the contract execution date.
17 Attend quarterly "experience" meetings with City management staff.
18 Be available for frequent requests for information and other duties as requested.
19 Prepare all administrative reports required by Washington State or the Federal Government including
MediCare. Monitor the compliance of City's employer reporting requirements and record keeping
requirements and advise of any deficiencies in City's overall self-insured compliance matters.
20 Prepare all appropriate responses to audits and inquiries of all regulatory agencies.
21 Receive, maintain, adjust, and issue all claim related payments for bills/payment to City; to include, but
not limited to, medical bills, time loss benefits, permanent partial disability payments, travel pay, and
prescription reimbursement.
22 Maintain accurate records to reflect all transactions and disbursements done on behalf of the City. At
City's request, provide City copies of all related financial records for auditing purposes.
23 Establish and adjust as appropriate, reserves levels for all previous and new claims.
24 Prepare and provide to City, periodic (at least quarterly) graphic display reports on trend analysis of
claims history by frequency, severity, medical only, time-loss, and medical costs. For the purpose of
billing and this contract, "Time Loss Claims" is defined as any claim that qualifies for time loss payment
(not sick leave) or a partial permanent disability (PPD) payment.
25 Provide accurate statistical data required to complete annual OSHA 300 Accident Report. Data will be
provided in the format required by OSHA
26 Washington State L&I Certified claims adjuster required for claims management
27 The City of Tacoma provides an additional supplement per the Tacoma Municipal Code (Section
1.12.090). For 120 days working days, the City pays a supplement payment such that the State payment
plus the City Supplement equals 85% of regular normal pay Due to this supplement The TPA Must
provide time loss payments on the Monday that precedes biweekly payroll Friday. Allowing for time for the
supplement to be calculated and processed.
4. CONTRACT TERM
The contract will be for a three-year period estimated period of performance 9/16/2026 -
09/15/2029 with the option to renew the contract two additional one-year terms. The City
reserves the right to cancel the contract for any reason, by written notice, as stipulated in the
contract.
5. CALENDAR OF EVENTS
This is a tentative schedule only and may be altered at the sole discretion of the City.
Contract will be issued after Public Utility Board and/or City Council approval.
The anticipated schedule of events concerning this RFP is as follows:
Publish and issue RFP: 4/8/2026
Pre-Submittal Questions: 4/13/2026
Response to Questions (on or about): 4/17/2026
Request for Proposal Specification No. CM25-0292F
Template Revised: 08/01/2025
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Submittal Due Date: 5/5/2026
Submittal Evaluated (on or about): May 2026
Interviews/presentations (on or about): May 2026
Award Recommendation (on or about): June 2026
Public Utility Board/City Council Approval (on or about): June 2026
6. INQUIRIES
6.1 Questions should be submitted to Hailey Erichsen via email to herichsen@tacoma.gov.
Subject line to read:
CM25-0292F - Workers Compensation Claim Administrator - VENDOR NAME
6.1 Questions are due by 3 pm on the date included in the Calendar of Events section.
6.2 Questions marked confidential will not be answered or included.
6.3 The City reserves the discretion to group similar questions to provide a single answer or
not to respond when the requested information is confidential.
6.4 The answers are not typically considered an addendum.
6.5 The City will not be responsible for unsuccessful submittal of questions.
6.6 Written answers to questions will be posted alongside the specifications at
www.tacomapurchasing.org
7. PRE-PROPOSAL MEETING
7.1 No pre-proposal meeting will be held; however, questions and request for clarifications of
the specifications may be submitted as stated in the inquiries section.
8. DISCLAIMER
The City is not liable for any costs incurred by the Respondent for the preparation of materials,
or a submittal submitted in response to this RFP, for conducting any presentations to the City, or
any other activities related to responding to this RFP, or to any subsequent requirements of the
contract negotiation process.
9. EVALUATION CRITERIA
A Selection Advisory Committee (SAC) will review and evaluate submittals. The relative weight
of each scoring criteria is indicated in the table below.
Criteria Max Points
Qualifications/Experience of Firm 30
Examples of Projects 10
Request for Proposal Specification No. CM25-0292F
Template Revised: 08/01/2025
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