DATE: March 29, 2019
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 Willis Towers Watson of Nashville, Tennessee in the total annual fixed flat fee amount of $56,000 for group employee insurance benefits consulting services for the Human Resources Department (Purchasing Office Procurement Solicitation No. 2019-007; $50,000 budgeted in 110-82560-41650 for fiscal year 2019; Contract No. 2019-0107) (04/23/19 WS)
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Purpose
The purpose of this procurement is to purchase group employee insurance benefits consulting services for the Human Resources Department. These services would be used in support of the City’s self-funded group health plan and other employee insurance benefit programs. The consulting services are intended to provide expert advice on a continuing basis in areas such as, but not limited to, cost containment strategies, wellness programs, compliance with state and federal regulations including the Patient Protection and Affordable Care Act (PPACA), procurement of group insurance benefits (both City-provided and voluntary), and benefits communications.
Background
The City published on January 31, 2019 a Notice to Proposers in the Williamson Herald for group employee insurance benefits consulting services. In addition, solicitation documents were sent on or about the same date directly to eighteen (18) potential proposers known or thought to be interested in this solicitation. Proposals from five (5) vendors were publicly opened at the submittal opening held on March 5, 2019. A tabulation of the proposals received for this solicitation is attached.
Using evaluation criteria included in the request for proposals, the proposal evaluation team, consisting of Human Resources Department staff, recommended the City interview the two firms submitting the proposals ranked highest by the proposal evaluation team, namely HUB International Gulf South of Brentwood (which is the incumbent service provider) and Willis Towers Watson of Nashville. The evaluation criteria included in the request for proposals consisted of (a) competency, experience and qualifications (40%), (b) unique strengths of the proposer/proposal (15%), (c) thoroughness and quality of proposal (10%), (d) methodology and approach; pricing and payment clarity (10%), and (e) fee for proposed products and services (25%). The proposal evaluation team scored these two firms’ proposals among the top two for 75% of the eligible points for the evaluation criteria included in the request for proposals. The next closest firm’s proposal was scored among the top two for only 25% of the eligible points.
The two finalists were subsequently invited to interview, at City Hall. Both firms accepted. After interviewing both finalists, using the same evaluation criteria included in the request for proposals, the interview panel (consisting of the same individuals as comprised the proposal evaluation team) recommends the City select the firm of Willis Towers Watson. The interview panel scored this firm’s proposal top for 75% of the eligible points for the evaluation criteria included in the request for proposals.
A reference check by staff for Willis Towers Watson has yielded favorable feedback.
Financial Impact
The proposal ranked highest by the interview panel, from Willis Towers Watson, is in the total annual fixed flat fee amount of $56,000 for the proposed services. The Human Resources Department budget for fiscal year 2019 allocates $50,000 out of the General Fund for the purchase of group employee insurance benefits consulting services. The proposal amount for the proposal from Willis Towers Watson is $6,000 (12%) over budget. However, please note the fiscal year would be nearly complete by the time a contract with Willis Towers Watson, if executed, takes effect.
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. 2019-0107, the proposal ranked highest by the interview panel, from Willis Towers Watson of Nashville, Tennessee, in the total annual fixed flat fee amount of $56,000 for the proposed services, 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. Pursuant to authority previously granted by the Board of Mayor and Aldermen, Contract No. 2019-0107 has been prepared for execution by the City Administrator and is attached pending approval by the Board of Mayor and Aldermen of the staff recommendation to accept the bid from and award the procurement to Willis Towers Watson.