The City is seeking proposals from qualified auditing firms specializing in Pennsylvania workers’ compensation claims audits to provide an audit of the City’s indemnity payments issued by its Third-Pa...

The City of Philadelphia, Office of the Director of Finance, Risk Management Division, is requesting proposals from qualified auditing firms to conduct a comprehensive audit of Pennsylvania workers' compensation claims payments, with proposals due October 23, 2026, at 5 p.m. Philadelphia time and applicant questions due October 2, 2026, at 5 p.m.

Participation from Local Business Entity (LBE) certified firms and Small Business Enterprise (SBE) certified firms will be considered as positive factors in evaluation. The City requires respondents to complete a Solicitation & Participation Form documenting all solicitations and commitments made to SBE and LBE participants and to exercise best and good faith efforts to meet established participation goals. All listed SBE and LBE participants must be certified at the time of contract award.

The scope is a statistically valid audit of indemnity payments issued by the City's Third-Party Administrator covering July 1, 2018, through July 1, 2026, encompassing a sample of 350 claims per fiscal year to achieve 95% confidence with a 5% margin of error. The audit will involve line-by-line review of randomly selected claims to identify duplicate payments, overpayments, non-compliance with City requirements, Civil Service Regulation 32, the Pennsylvania Workers' Compensation Act, and the Pennsylvania Heart and Lung Act, and operational inefficiencies. The selected auditor must deliver bi-weekly progress reports and a comprehensive final report with actionable recommendations and a corrective action plan due within 180 days of assignment. The auditor must demonstrate expertise in Pennsylvania workers' compensation law, Civil Service Regulation 32, and the Heart and Lung Act, and ability to navigate the TPA's Risk Management Information System and the City's OnePhilly payroll system. The City will provide detailed system overviews and technical support.

The fixed contract value is a maximum of $160,000 with monthly invoicing and payment within 30 days of receipt. The contract term runs December 1, 2026, through November 30, 2027, with the City retaining the option to amend the contract to add up to four additional one-year terms. Interviews and presentations are anticipated November 2–6, 2026, with applicant selection on November 13, 2026, and contract execution by November 30, 2026. The selected contractor must comply with Philadelphia's 21st Century Minimum Wage and Benefits Standard, maintain HIPAA compliance, and obtain professional liability insurance of $2 million with deductible not exceeding $100,000, general liability of $1 million per occurrence, and cyber/technology E&O liability of $1 million per claim/aggregate. All proposals must be submitted electronically through eContract Philly.