DATE: April 19, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Shirley K. Harmon-Gower, Director of Human Resources
Sara E. Sylvis, Risk/Benefits Manager
Brian Wilcox, Purchasing Manager
SUBJECT:
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Consideration of procurement award to Aetna Life Insurance Company of Hartford, Connecticut, in the total estimated annual amount of $119,908 for life, accidental death and dismemberment, and supplemental life group employee insurance benefits for a three-year term of award with two one-year options to extend, for the Human Resources Department (Purchasing Office Procurement Solicitation No. 2016-018; Contract No. 2016-0112; 05/10/16 WS)
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Purpose
The purpose of this procurement is to purchase life, accidental death and dismemberment, and supplemental life group employee insurance benefits for a term of award of three (3) policy years, effective upon acceptance by the City for the policy year to begin July 1, 2016, with two (2) options to extend the term of award, each time for one (1) additional policy year, for a maximum possible term of award of five (5) policy years total.
Background
The City published on February 18, 2016, a Notice to Bidders in the Williamson Herald for the following two (2) separate and independent group employee insurance procurements: (a) group life, accidental death and dismemberment, and supplemental life (Purchasing Office Solicitation No. 2016-018); and (b) long-term disability (Solicitation No. 2016-019). In addition, solicitation documents were sent on or about the same date directly to nineteen (19) potential proposers known or thought to be interested in this solicitation. Proposals from eight (8) vendors were publicly opened at the submittal opening held on March 22, 2016. A tabulation of the proposals received for this solicitation is attached.
The proposals were evaluated according to the weighted evaluation criteria identified in the Request for Proposals issued by the City. Two of the top-three scored proposals for the group life, accidental death and dismemberment, and supplemental life lines of coverage were also among the top-three scored proposals for the long-term disability line of coverage. As it is to the City’s advantage to award both lines of coverage to a single carrier, these two proposers, namely Aetna Life Insurance Company and Lincoln Financial Group, were invited for interviews which were conducted on April 18, 2016. The two finalists were then scored again, using the same weighted evaluation criteria as for evaluation of the proposals.
Financial Impact
The proposal ranked highest by the interview panel, from Aetna Life Insurance Company of Hartford, Connecticut, is in the total estimated annual amount of $119,908 for life, accidental death and dismemberment, and supplemental life group employee insurance benefits. Aetna is the City’s current carrier for these lines of insurance coverage. The Aetna proposal for these lines of coverage is for the same limits of coverage and is for the same premium rates as the City is paying currently.
Options
In accordance with the solicitation documents, the City reserves the right to reject any and all proposals.
Recommendation
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Staff recommends that the City accept, contingent upon Law Department and City Administrator approval of City Contract No. 2016-0112, the proposal ranked highest by the interview panel, from Aetna Life Insurance Company of Hartford, Connecticut, in the total estimated annual amount of $119,908 for life, accidental death and dismemberment, and supplemental life group employee insurance benefits, and award this procurement to this proposer. Purchasing Manager Brian Wilcox is of the opinion that the prepared solicitation documents as distributed allowed for competition among multiple vendors, and that the staff recommendation appears to be made in a fair and impartial manner based upon the proposals received. Contract No. 2016-0112 is not yet in final form and therefore is not attached. When it is in final form, and if the staff recommendation to accept the proposal from and award the procurement to Aetna Life Insurance Company is approved by the Board of Mayor and Aldermen, then, pursuant to authority previously granted by the Board of Mayor and Aldermen, Contract No. 2016-0112 will be executed by the City Administrator and reported to the Board of Mayor and Aldermen.