REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 18, 2025
FROM
VICTOR TORDESILLAS, Deputy Executive Officer, Department of Risk Management
SUBJECT
Title
Amendment to Origami Claim System Contract
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 3 to Contract No. 23-1026 with Origami Risk LLC, for the addition of Environmental Health and Safety System modules to the automated claim system, increasing the total not-to-exceed contract amount by $1,286,525, from $1,813,445 to $3,099,970, with no change to the contract period of September 27, 2023, through September 26, 2028.
2. Ratify the execution of Amendment No. 1 to Contract No. 23-1026 with Origami Risk LLC, for the addition of an enhancement to the claim system to improve and benchmark return to work performance and to set claim reserves based on industry data, increasing the total not-to-exceed contract amount by $128,945, from $1,665,375 to $1,794,320, with no change to the contract period of September 27, 2023, through September 26, 2028.
3. Ratify the execution of Amendment No. 2 to Contract No. 23-1026 with Origami Risk LLC, to develop a two way interface for medical bill review services between the claim system and the medical bill review vendor, increasing the total not-to-exceed contract amount by $19,125, from $1,794,320 to $1,813,445, with no change to the contract period of September 27, 2023, through September 26, 2028.
4. Approve the purchase of Environmental Health and Safety Systems modules as unbudgeted fixed assets through Contract No. 23-1026 with Origami Risk LLC, in an amount not to exceed $691,614.
5. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the budget adjustment to the Department of Risk Management’s 2024-25 budget, as detailed in the Financial Impact section, for the purchases identified in Recommendation No. 4.
6. Authorize the Chief Executive Officer, Assistant Executive Officer, Deputy Executive Officer, or Director of the Department of Risk Management to execute non-substantive amendments, and change orders to Contract No. 23-1026 with Origami Risk LLC, provided that such change orders do not increase the not-to-exceed total contract amount of $3,099,970 or amend the contract period, subject to review by County Counsel.
7. Direct the Director of the Department of Risk Management to transmit copies of all non-substantive amendments and change orders to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Victor Tordesillas, Deputy Executive Officer, 387-4717)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Of the $1,434,595 requested increase, $691,614 is for the purchase of Environmental Health and Safety modules, which are unbudgeted fixed assets. This amount represents the total cost of the fixed asset through the end of the contract period.
Of the $691,614, $201,114 is anticipated for Year 1, which will be offset by salary savings for 2024-25, resulting in no net impact to the 2024-25 budget. Adequate appropriation is included in the Department of Risk Management (DRM) 2025-26 budget and will be included in future recommended budgets.
The necessary budget adjustments for 2024 -25 are as follows:
|
Fund Center |
Commitment Item/GL Account |
Description |
Action |
Amount |
|
7310004120 |
54904099 |
Licensed Software |
Increase |
$201,114 |
|
7310004120 |
51001010 |
Regular Salary |
Decrease |
$201,114 |
BACKGROUND INFORMATION
Recommended Amendment No. 3 (Amendment) to Contract No. 23-1026 (Contract) with Origami Risk LLC (Origami) will allow DRM to add a new software module to the automated claim system (ACS) to increase functionality. The Environmental Health and Safety module will add the ability to manage and track safety programs and data directly from the claim system and streamline the environmental and regulatory compliance process. This will empower employees to quickly and efficiently report on incidents from the field, conduct inspections, and identify hazards to prevent future incidents. It will also allow for additional licenses and professional support hours.
On September 27, 2023 (Item No.63), as the result of a competitive process, the Board of Supervisors (Board) approved the Contract with Origami to develop an integrated claims management system consisting of various service modules, user training, data conversion and integration, and system configuration, set up and implementation, in an amount not to exceed $1,665,375, for the period of September 27, 2023, through September 26, 2028. The Board further authorized the Director of DRM to execute change orders to the Contract, as needed, in a total amount not-to-exceed $50,000 annually, provided that the change orders did not amend the terms of the Contract, subject to review by County Counsel.
On July 2, 2024, the Director of DRM executed a change order for system enhancements, in the amount of $17,364, with an additional annual license fee of $20,645 for the remaining term of the Contract. The department is converting the change order approval to Amendment No. 1 to increase the cost of the contract for the change order amount and the ongoing cost related to the system enhancements.
On October 17, 2024, the Director of DRM executed a change order to add a two-way interface for medical bill review between the Origami claim system and DRM’s new bill review vendor, in the amount of $19,125. The department is converting the change order approval to Amendment No. 2 to increase the cost of the contract for the change order amount for the bill review cost.
Due to an administrative error, the additional amounts in Amendment Nos. 1 and 2 were not included in the contract total approved by the Board in September 2023; however, this was not discovered until staff began working on Amendment No. 3. The ratification of the first two amendments is being brought to the Board for approval at the first available date following discovery of the error. DRM recommends approval of Amendment No. 3 to enhance the ACS for the administration of the County’s risk, safety, and insurance programs. Four votes are not required because there is no increase or change required for the budget due to DRM's use of salary savings for 2024-25 costs.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on June 13, 2025; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on May 22, 2025; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on May 6, 2025; County Administrative Office (Anja Jacobsen, Executive Administrative Analyst, 387-9647, and Victor Tordesillas, Deputy Executive Officer, 387-4717) on May 16, 2025; Finance (Ivan Ramirez, Administrative Analyst, 387-4020) on June 3, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on June 3, 2025.