Title
Drug and Alcohol Testing Third Party Administrator
History
LexisNexis is a professional service that provides comprehensive substance abuse program administration since 1991. As our third party administrator of several years, they have provided Medical Review Officer (MRO) services, random drug program administration, statistical reporting services, and emergency collection sites for the Village’s drug and alcohol testing program.
LexisNexis recently announced that it has entered an agreement to sell its screening business to the private equity firm Symphony Technology Group (STG). The screening business will be combined with First Advantage, an STG company, which is also a key player in the background screening industry. The transaction is subject to regulatory review and certain other customary conditions. Operations will continue to be based around the country, and LexisNexis is working closely with the First Advantage team to ensure a smooth transition so that you experience no disruptions. They have assured clients that they can expect business as usual.
Our service agreement automatically renews on 4/1/2013. We have been very satisfied with LexisNexis serving as our drug and alcohol program third party administrator and expect the transition to be a smooth one. We experienced this type of transition while working with Choicepoint which then merged with LexisNexis. Pricing is competitive costing $20.50 per drug screen and $21.50 per DOT drug screen. In addition our occupational health provider utilizes LexisNexis in the processing of all drug and alcohol collections. To provide for continued high level of service and continuity with our occupational health provider we recommend exercising the service agreement’s automatic renewal provision for additional one year term.
This is a professional service; therefore I request to waive bids and recommend that the Board approve that authorization be given to the Village Manager to authorize the one year renewal of our service agreement with LexisNexis, Inc.
On February 4, 2013, this item was reviewed and approved by the Finance Committee and referred to the Board for approval.
Financial Impact
The estimated annual cost for this service is approximately $10,900. Adequate funds have been included in the in the FY2012 budget to support this expenditure.
Recommended Action/Motion
I move to approve the continued use of LexisNexis, Inc. as the third party administrator for the drug and alcohol testing program at an amount not to exceed $10,900 annually.