Title
[Contract Supplement] Workers' Compensation Sub-Rosa Investigation Services
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FileID
File ID: 2026-001011
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute a Supplemental Contract with APEX Investigation to increase the not-to-exceed (NTE) amount by $250,001 for Sub-Rosa Investigation Services.
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Contact
Contact: Natalie Dempsey, Risk Manager, (916) 808-8587, ndempsey@cityofsacramento.org, Department of Human Resources
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Apex Investigation Services Supplemental Contract
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Description/Analysis
IssueDetail
Issue Detail: On June 28, 2023, the City executed Contract No. PRC2428 with APEX Investigation to provide Sub-Rosa Investigation Services. Under this agreement, APEX conducts investigations related to claims, including surveillance, background research, and analysis to identify potential fraud or inconsistencies with workers' compensation claims.
The initial contract term was for three years, with provisions for two one-year extensions. The total cost for the initial term was $200,000. The contract was recently extended through June 29, 2027, and the NTE was increased an additional $49,999. It has since been determined that funding required to support services for the additional year exceeds initial projections. As of April 6, 2026, $269,395 has been expended. Based on the current expenditure rates, the current NTE of $249,999 is expected to be depleted well before the end of the contract term. Therefore, an additional $250,001 is requested, which would increase the total NTE amount to $500,000.
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PolicyConsiderations
Policy Considerations: City Council approval is required to execute agreements for services if the amount to be expended under each such agreement is $250,000 or more. This recommendation is consistent with City Code section 3.56 an...
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