TITLE
REQUEST TO EXERCISE THE CONTRACT FIRST (1) YEAR EXTENSION OPTION WITH CANNON COCHRAN MANAGEMENT SERVICES, INC. FOR THIRD-PARTY WORKERS COMPENSATION ADMINISTRATIVE SERVICES
SPECIFICATION P-22017
BODY
To the Honorable Board of Commissioners of the Chicago Park District
I. Initial Award Information
It is recommended that the General Superintendent and CEO or his designee enter into a one-year extension of the contract with Cannon Cochran Management Services, Inc. (CCMSI) for third-party administrative (TPA) services. The contractor was selected pursuant to a publicly advertised request for proposals.
Date of Award: August 9, 2023 - Chicago Park District Board Meeting
Contractor: Cannon Cochran Management Services, Inc.
550 West Van Buren Street
Chicago, IL 60607
Company Type: Corporation
Scope of Services: The Administrator’s responsibilities include, but are not limited to the following: 1) effectively managing workers compensation claims that result in i) containment of costs; ii) constructive communication and coordination with all interested and affected parties; iii) education of employees; and iv) maintenance of adequate reserves; 2) reducing expenses and simplifying program administration; 3)initiating prompt investigation and determination of liability; and 4) establishing practical, measurable, and attainable standards against which the Park District can evaluate the effectiveness of the program. This description of Services is intended to be general in nature and is neither a complete description nor a limitation on the Services that Administrator is to provide under this Agreement.
Contract Period: Two (2) years initial term with three one (1) year extension options. If extensions options are exercised, funding shall be based upon annual appropriations.
Contract Amount: Not-to-exceed $163,656.00 for the one-year contract extension.
II. Performance to Date:
CCMSI has been the TPA for the Chicago Park District for over fifteen (15) years. Under CCMSI’s administration, the average cost-per-claim has gone down from $53,200.00 to $18,669.66. The average length of time closing claims went down from 492 days to 268 days. The total number of claims has gone down from over 300 to 154 currently. CCMSI has maintained its status in good standing as a contractor and performed its duties in an efficient and timely manner.
III. Current Expenditures:
Contract Start Date: October 1, 2023
Contract End Date: September 30, 2025
Contract Amount: $327,312.00 for the initial contract term
Payments to Date: $286,398 (87.5% as of June 30, 2025)
IV. Current MBE/WBE Compliance
Original Goals: The Minority and Women Owned Business Enterprise participation for this contract includes 25% Minority Owned and 5% Women Owned.
Current Compliance: MBE 25%
WBE 5%
V. Explanation of Recommendation
The Risk Management Department is responsible for the Chicago Park District’s Workers Compensation (WC) self-insured program. Workers’ Compensation (WC) provides benefits to Chicago Park District employees who sustain work-related injuries or illnesses arising out of and during the course and scope of employment. These benefits include payment for medical treatment, prescriptions, and other expenses related to the injury or illness. Benefits may also include payment for lost time from work due to injury or illness, depending on the number of days the employee is off work. The program is currently administered by third-party administrator Cannon Cochran Management Services Inc. (CCMSI). Having this contract in place will allow the Risk Management Department to efficiently meet the Park District’s obligations to efficiently evaluate claims and administer benefits to injured employees.
Therefore, it is in the best interest of the Chicago Park District to grant the first of three one (1) year extension option, with the negotiated prices and no change to the contract value, to the awarded contracted vendor of CCMSI with a new end date of September 30, 2026.
VI. General Conditions
1. Conflicts: No agreement authorized herein shall be legally binding on the Chicago Park District if entered into in violation of the provisions of the Public Officer Prohibited Activities Act, 50 ILCS 105/0.01 et seq.
2. Ethics: This agreement is subject to Chapter III of the Code of the Chicago Park District (“Governmental Ethics”).
3. Contingent Liability: Any agreement lawfully entered-into for a period of more than one year shall be executory only for the amounts for which the Park District may become liable in succeeding fiscal years pursuant to 70 ILCS 1505/17(i). The agreement shall contain a clause that any expenditure beyond the current fiscal year is subject to appropriation in the subsequent fiscal year budget.
4. Economic Disclosure Statement (“EDS”): Contractor has submitted a full and complete EDS.