DATE: October 29, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Brock, Assistant City Administrator / CFO
Kevin Townsel, Human Resources Director
Sara Sylvis, Risk/Benefits Manager
Brian Wilcox, Purchasing Manager
SUBJECT:
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*Consideration Of Procurement Award To P&A Administrative Services, Inc. Of Buffalo, New York In The Total Fee Of $3.20 Per Participating Employee Per Month For Healthcare And Dependent Care Flexible Spending Account Administrative Services For A Term Of Award For The Human Resources Department. (Purchasing Office Procurement Solicitation No. 2020-009; Contract No. 2019-0315)
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Purpose
The purpose of this procurement is to purchase healthcare and dependent care flexible spending account (FSA) administrative services for a term of award in order to establish a new term contract for administering the City’s FSA program offered to full-time employees of the City.
Background
The City published on September 26, 2019 a Notice to Bidders in the Williamson Herald for healthcare and dependent care flexible spending account administrative services for a term of award of three (3) years, with two (2) options to extend the term of award, each time for up to one (1) additional year, for a maximum possible term of award of five (5) years total. In addition, bid documents were sent on or about the same date directly to six (6) potential bidders known or thought to be interested in this solicitation. Bids from seven (7) service providers were publicly opened at the bid opening held on October 10, 2019. A tabulation of the bids received for this solicitation is attached.
Financial Impact
The apparent lowest, most responsive and responsible bid, from P&A Administrative Services, Inc. of Buffalo, New York, is in the amount of $3.20 per participating employee per month for the specified products and services. This bid was identified because it is the lowest bid that meets or exceeds the City’s intention as expressed and implied by the City’s specifications as well as the instructions, terms and conditions pertaining to this procurement solicitation. The fee is to be allocated to the respective City funds of the various operating departments of the City in which employees are participating in the FSA program. Currently, the City has 141 participants in the Healthcare FSA and 9 participants in the Dependent Care FSA so, at those same rates of participation, the total value of the purchase would be $5,760 per year.
Options
In accordance with the bid documents, the City reserves the right to reject any and all bids.
Recommendation
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Staff recommends that the City accept, contingent upon Law Department and City Administrator approval of City Contract No. 2019-0315, the apparent lowest best bid, from P&A Administrative Services, Inc. of Buffalo, New York, in the amount of $3.20 per participating employee per month for the specified products and services, and award this procurement to this bidder. The City’s Purchasing Manager believes the prepared solicitation documents as distributed allowed for competition among multiple service providers, 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. 2019-0315 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 P&A Administrative Services, Inc.