DATE: April 27, 2018
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator / CFO
Kevin Townsel, Human Resources Director
Sara Sylvis, Risk and Benefits Manager
Brian Wilcox, Purchasing Manager
SUBJECT:
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*Consideration Of Procurement Award To Symetra Life Insurance Co. Of Enfield, Connecticut For Voluntary Group Term Life Insurance With Accidental Death & Dismemberment Benefits And Voluntary Short-Term Disability Insurance For A Three-Year Term Of Service To Be Effective July 1, 2018, With Two (2) One-Year Options To Extend The Term Of Service (Purchasing Office Procurement Solicitation No. 2018-015; Contract No. 2018-0082)
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Purpose
The purpose of this procurement is to select for optional purchase by eligible employees voluntary group term life insurance with accidental death & dismemberment benefits and voluntary short-term disability insurance, benefits that may be purchased at the employee’s sole expense at designated opportunities.
Background
The City published on March 29, 2018 a Notice to Proposers in the Williamson Herald for voluntary group term life insurance with accidental death & dismemberment benefits and voluntary short-term disability insurance. In addition, solicitation documents were sent on or about the same date directly to twenty (20) potential proposers known or thought to be interested in this solicitation. Proposals from eleven (11) respondents were publicly opened at the submittal opening held on April 19, 2018. A tabulation of the proposals received for this solicitation is attached.
All proposals received were evaluated, using the selection criteria included in the Request for Proposals, by the City’s group employee insurance benefits consultant, the firm of Cowan Benefit Services, a division of Hub International. The two proposals that were scored the highest (and the only two proposals that offered both the requested three-year rate guarantee and rates that are comparable or better than the rates currently paid by City employees) were invited to interview. The two finalists were then evaluated, using the same selection criteria, by staff of the City’s Human Resources Department. The finalist that was scored the highest is Symetra Life Insurance Co. of Enfield, Connecticut. Substantive distinctions were perceived in favor of the recommended finalist for the criteria of online capability, customer service and administrative requirements, and in favor of the non-recommended finalist for the criterion of rates.
Financial Impact
Premiums for voluntary benefits are deducted from employee payroll and thus are not budgeted. Therefore, this procurement would have no direct financial impact on the City.
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. 2018-0082, the proposal scored highest by the finalist evaluation team, from Symetra Life Insurance Co. of Enfield, Connecticut, for the specified voluntary insurance products for a three-year term of service to be effective July 1, 2018, with two (2) one-year options to extend the term of service, and award this procurement to this proposer. Purchasing Manager Brian Wilcox believes 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. 2018-0082 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 Symetra Life Insurance Co. of Enfield, Connecticut is approved by the Board of Mayor and Aldermen, then, pursuant to authority previously granted by the Board of Mayor and Aldermen, Contract No. 2018-0082 will be executed by the City Administrator and subsequently reported to the Board of Mayor and Aldermen.