To: Board of Supervisors
From: Karen Caoile, Director of Risk Management
Report Title: Contract Amendment with Riskonnect (formerly Ventiv Technology, Inc.)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Director of Risk Management, or designee, to execute a contract amendment with Riskonnect to increase the payment limit by $854,640 to a new payment limit of $2,481,098 for a hosted workers’ compensation and liability claims management software system and extend the term through December 31, 2026.
FISCAL IMPACT:
Costs are supported 100% through Countywide inter-departmental charges to the Internal Service Funds for workers’ compensation and general liability.
BACKGROUND:
Riskonnect (formerly Ventive Technology, Inc.) provides the Claims Enterprise claims management system used by Risk Management to process current and historical claims data for administration of claims, premium charges, actuarial analysis, and identification of loss trends.
The agreement obligates the County to indemnify Riskonnect for third party claims arising from the County’s use of results obtained through use of the System (provided the System has functioned in accordance with the Documentation) and claims the County's data infringes the rights of a third party.
The original Master Agreement was in the amount of $1,176,123 for the term of December 31, 2020, through December 31, 2023. The contract, in consultation with County Counsel, is continuous and automatically renews for one year every December absent prior notification of an intent to terminate. When a cost increase is appropriate after the initial contract term, the Department seeks Board approval for the updated rates and payment limit, per the executed Master Agreement.
Amendment #1 extended the term to December 31, 2024, and increased the payment limit to $1,626,458 for continuing services and the addition of new service modules. Amendment #2 would extend the term for two more years and increase the payment limit to not exceed $2,481,098 with annual fees as shown below. The Department negotiated the two-year term to leverage a 5% annual rate increase, in contrast to the higher 7% annual rate increase applied to the prior one-year extension.
Amendment #2 annual fees:
• Year 1 (Jan. 1, 2025 - Dec. 31, 2025): $416,897.09
• Year 2 (Jan. 1, 2026 - Dec. 31, 2026): $437,741.95
The Department is pursuing a Request for Proposals (RFP) to identify a new vendor and anticipates the process taking up to two (2) years from RFP to full transition and implementation. The proposed contract extension allows services to continue with Riskonnect during that time and avoids gaps in the County’s access to a claims management system. If a new vendor is successfully implemented prior to the Amendment #2 expiration in December 2026, the termination conditions allow the County to exit the contract with 120 days written notice.
CONSEQUENCE OF NEGATIVE ACTION:
The County will not have the licensing for the workers’ compensation and liability claims management system software.