HomeMy WebLinkAboutRFP - P928 CONSULTING SERVICES TO REVIEW MARKET ANALYSIS AND EMPLOYEE BENEFITS PRACTICES22//99//00
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REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
Proposal Number P928
Consulting Services to Review
Market Analysis and Employee Benefits Practices
The City of Fort Collins is seeking proposals from qualified consulting firms.
Written proposals, fifteen (15) will be received at the City of Fort Collins' Purchasing Division, 215
North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be received before 3:00 p.m.
(our clock), March 17, 2004. Proposal No. P-928. If delivered, they are to be sent to 215 North Mason
Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins,
80522-0580.
Questions concerning the scope of the project should be directed to Project Manager, Rick
DeLaCastro (970) 221-6845.
Questions regarding proposals submittal or process should be directed to James B. O’Neill, II, CPPO,
FNIGP (970) 221-6775.
A copy of the Proposal may be obtained as follows:
1. Call the Purchasing Fax-line, 970-416-2033 and follow the verbal instruction to request
document #30928.
2. Download the Proposal/Bid from the Purchasing Webpage,
www.fcgov.com/purchasing.
3. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request a copy
of the Bid.
Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have a
financial interest in the sale to the City of any real or personal property, equipment, material, supplies
or services where such officer or employee exercises directly or indirectly any decision-making
authority concerning such sale or any supervisory authority over the services to be rendered. This rule
also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment,
kickback or any items of monetary value from any person who has or is seeking to do business with the
City of Fort Collins is prohibited.
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be rejected
and reported to authorities as such. Your authorized signature of this proposal assures that such
proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities
or informalities.
Sincerely,
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
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City of Fort Collins
Request for Proposal
Consulting Services to Review
Market Analysis and Employee Benefits Practices
INTRODUCTION
The City Council (Council) of the City of Fort Collins (City) seeks an independent external consultant to
review the City’s compensation and benefits policies and practices. The selected consultant will be
proficient in the analysis of both employee benefit and compensation programs. This consultant will be
retained by Council and will report directly to the Ad Hoc Council Compensation and Benefits
Committee.
SCOPE OF WORK
The selected consultant will deliver by July 30, 2004 a comprehensive report addressing the following
issues.
Market
The City wishes to be competitive in the recruitment and retention of qualified personnel. The twelve
cities that the City currently uses to benchmark its compensation and benefits programs are:
Arvada Littleton
Aurora Longmont
Boulder Loveland
Englewood Northglenn
Greeley Thornton
Lakewood Westminster
Benefits. The City benchmarks its benefits (medical and dental) plans against the above twelve
Front Range municipalities that are similar to the City in size and services provided. The City sets the
value of its benefits plans so that in total the plan design approximates the 70th (seventieth) percentile
of the market.
Compensation. The City benchmarks its compensation (pay plan) program against the private
sector in addition to the same twelve Front Range municipalities. The City sets its pay range maximums
at the 70th percentile of the market. Other survey sources used for compensation data collection are
obtained from Colorado Municipal League (public sector data), Mountain States Employers Council
(private and public sector data), and City of Fort Collins special surveys conducted by Human
Resources staff.
The selected consultant will:
1. Provide information on whether this market is appropriate and in keeping with best practices.
2. Report on the benchmarking practices of other municipalities, as well as other possible
employers the City may wish to benchmark itself against.
3. Provide guidance on the manner in which the City should proceed in future benchmarking
projects.
The selected consultant will also provide recommendations to the following questions:
1. Should the City expand its market to include other local organizations?
2. Should the City include regional or national data obtained from survey sources other than
previously mentioned?
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3. What is the impact/benefit of setting our compensation and benefits targets at the 70th
percentile of the market (e.g. how does this practice impact our ability to recruit and retain
qualified employees, etc.)? Is this competitive?
4. What would be the impact of using the calculated 70th percentile of the market to set pay range
midpoints, as opposed to pay range maximums?
Benefits
The City offers eligible employees with a choice between four self-funded medical plans: two PPO
Options and two POS Options. All four plans are administered by Great-West Health Care. The
specific stop loss deductible is $120,000. Benefit provisions are shown in Appendix A. The costs of
coverage are shared between the City and enrolled employees.
The City contributes a flat $642/month/eligible employee in 2004. Employees pay 10% of the
equivalent premium rate, depending upon the plan and tier of coverage selected. Employee
contributions are shown in Appendix B. In 2005, employees are budgeted to pay 15% of the
equivalent premium. Eligible employees who waive coverage receive $44 per pay check.
The City provides two dental options through Delta Dental to eligible employees, including a basic and
a comprehensive dental plan. Employees pay a dental premium, depending upon the plan and tier of
coverage selected. Employee dental contributions are shown in Appendix B. Eligible employees who
waive coverage receive $4 per pay check.
Currently, the City compares its plan provisions (deductibles, co-pays, coinsurance, out-of-pocket
maximums, etc.) with its market. In addition, the City compares its employee contributions with
contributions paid by employees at the other twelve benchmark cities (see Appendix C). Together,
this information is analyzed to determine whether the City’s benefit plans are valued at approximately
the 70th percentile.
The selected consultant will:
1. Provide information on whether the City’s current methodology is appropriate and in keeping
with best practices.
2. Provide information on whether the City’s benefit plan provisions and required employee
contributions are valued at approximately the 70th percentile of the market.
3. Report on the benchmarking practices of other municipalities, as well as other possible
employers the City may wish to benchmark itself against.
Cost Containment through Plan Design
The City is very interested in developing a strategy for containing or slowing the expected increases in
medical costs. This is the number one goal the City is interested in. At the same time, the City is also
concerned about the impact any such cost containment strategies might have on our ability to remain
an employer of choice in the eyes of employees and prospective employees.
The selected consultant will:
1. Provide guidance on steps the City might take in order to reduce the rates of future cost
increases.
2. Develop a menu of cost containment options, along with projected cost savings, that the City
might consider in addressing medical cost increases.
The selected consultant will also provide recommendations to the following questions:
1. Should the City continue offering four plan options?
2. Which plan(s), if any, should be eliminated and why?
3. Should plan provisions (e.g., co-pays, covered services, etc.) be adjusted?
4. Should employee contributions be increased, and if so to what level?
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5. Is the discount provided by Poudre Valley Hospital appropriate? How could the discount be
increased?
The selected consultant will also provide recommendations to the following questions:
1. Would the City continue to be competitive in the market place if the consultant recommended
changes to the medical plans were implemented?
2. How should the recommended changes be implemented?
Other
The City continues to emphasize its commitment to employees to offer competitive compensation and
benefit programs, in exchange for employee commitment to outstanding productivity and customer
service.
The selected consultant will:
1. Provide recommendations on what programs could be implemented at little or no cost to the
City in order to offset increased cost to employees.
2. Provide an impact analysis, including detailed cost projections, from both taxpayer and
employee perspectives, for any recommended changes.
The selected consultant will also provide recommendations to the following questions:
1. Would performance bonuses or other incentives to excellent performers be appropriate?
The following documents are provided for your use in crafting your response. They include:
ITEM APPENDIX
Benefit plan booklets/comparisons A
Employee contribution levels for medical plan participation B
2004 survey of market city employee
contribution levels for health care
C
The following documents are available for download on the City of Fort Collins Public Records
page located at: http://citydocs.fcgov.com/ . Search using “P928”, and then scroll down to
“Purchasing Documents” to locate the records that match to your search.
Document Description: POS Plan Document
Document Description: PPO Plan Document
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CONSULTANT QUESTIONNAIRE
1. Has your firm ever performed a project of this nature? If so, please describe up to three such
projects. Specify the scope of work for the project, and the topics you were asked to
investigate. Please provide three client references for your performance in this type of project.
2. Describe your firm, its history and size, the locations in which it operates and the number of
employees.
3. What is the location of the office from which consulting services would be provided?
4. What is the turnover rate among consultants and staff personnel during the past two years?
5. What is your firm’s philosophy in the approach to benefits consulting?
6. Provide information on the principal consultant who would be responsible for this project. What
is his/her professional background and experience? Specifically, include the individual’s
experience in dealing with public employers. If you expect to utilize other personnel to
accomplish the duties specified in this RFP, provide the same information requested above for
each of the personnel listed.
7. Has the principal consultant performed a project of this nature? If so, please describe three
such projects. Specify the scope of work for the project, and the topics you were asked to
investigate.
8. How do you define an organization’s “market” for benchmarking purposes? How many
organizations should be included to achieve a credible market?
9. What is your firm’s experience in working with self-funded governmental plans? Please provide
three references for your work with such plans, including the client’s name, a contact at the
client and the number of employees of each client.
10. Describe any pending litigation against your firm.
11. Describe any litigation that has been brought against your firm during the last 3 years.
12. Describe the professional liability coverage carried by your firm.
13. Beyond the stated scope of this project, what additional information would be required for the
successful completion of this project? Have any vital questions or concerns been omitted?
14. Describe any problems you foresee in your ability to conduct the services described in this
RFP.
15. What is your estimated cost to complete this project? Please describe the methodology used
to derive your estimate.
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REVIEW AND ASSESSMENT
Professional firms will be evaluated on the following criteria. These criteria will be the basis for review
of the written proposals and interview session.
The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and 5
being an outstanding rating.
WEIGHTING
FACTOR
QUALIFICATION
STANDARD
2.0
Scope of Proposal
Does the proposal show an understanding of the
project objective, methodology to be used and results
that are desired from the project?
2.0
Assigned Personnel
Do the persons who will be working on the project have
the necessary skills? Are sufficient people of the
requisite skills assigned to the project?
1.0
Availability
Can the work be completed in the necessary time?
Can the target start and completion dates be met? Are
other qualified personnel available to assist in meeting
the project schedule if required? Is the project team
available to attend meetings as required by the Scope
of Work?
1.0
Motivation
Is the firm interested and are they capable of doing the
work in the required time frame?
2.0
Cost and
Work Hours
Do the proposed cost and work hours compare
favorably with the project Manager's estimate? Are the
work hours presented reasonable for the effort
required in each project task or phase?
2.0
Firm Capability
Does the firm have the support capabilities the
assigned personnel require? Has the firm done
previous projects of this type and scope?
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Reference evaluation (Top Ranked Firm)
The project Manager will check references using the following criteria. The evaluation rankings will
be labeled Satisfactory/Unsatisfactory.
QUALIFICATION
STANDARD
Overall Performance
Would you hire this Professional again? Did
they show the skills required by this project?
Timetable
Was the original Scope of Work completed
within the specified time? Were interim
deadlines met in a timely manner?
Completeness
Was the Professional responsive to client
needs; did the Professional anticipate
problems? Were problems solved quickly and
effectively?
Budget
Was the original Scope of Work completed
within the project budget?
Job Knowledge
a) If a study, did it meet the Scope of Work?
b) If Professional administered a construction
contract, was the project functional upon
completion and did it operate properly?
Were problems corrected quickly and
effectively?
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APPENDIX “A”
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APPENDIX “B”
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APPENDIX “C”
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PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into the day and year set forth below, by and between
THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the
"City" and _____, [insert either a corporation, a partnership or an individual, doing business
as____________], hereinafter referred to as "Professional".
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed by and
between the parties hereto as follows:
1. Scope of Services. The Professional agrees to provide services in accordance with the
scope of services attached hereto as Exhibit "A", consisting of _____ (_____) page[s], and
incorporated herein by this reference.
2. The Work Schedule. [Optional] The services to be performed pursuant to this
Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit "B",
consisting of _____ (_____) page[s], and incorporated herein by this reference.
3. Time of Commencement and Completion of Services. The services to be performed
pursuant to this Agreement shall be initiated within _____ (_____) days following execution of this
Agreement. Services shall be completed no later than _____. Time is of the essence. Any extensions
of the time limit set forth above must be agreed upon in writing by the parties hereto.
4. Early Termination by City. Notwithstanding the time periods contained herein, the City
may terminate this Agreement at any time without cause by providing written notice of termination to
the Professional. Such notice shall be delivered at least fifteen (15) days prior to the termination date
contained in said notice unless otherwise agreed in writing by the parties.
All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to
the following addresses:
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Professional:
City: With Copy to:
In the event of any such early termination by the City, the Professional shall be paid for services
rendered prior to the date of termination, subject only to the satisfactory performance of the
Professional's obligations under this Agreement. Such payment shall be the Professional's sole right
and remedy for such termination.
5. Design, Project Indemnity and Insurance Responsibility. The Professional shall be
responsible for the professional quality, technical accuracy, timely completion and the coordination of
all services rendered by the Professional, including but not limited to designs, plans, reports,
specifications, and drawings and shall, without additional compensation, promptly remedy and correct
any errors, omissions, or other deficiencies. The Professional shall indemnify, save and hold harmless
the City, its officers and employees in accordance with Colorado law, from all damages whatsoever
claimed by third parties against the City; and for the City's costs and reasonable attorneys fees, arising
directly or indirectly out of the Professional's negligent performance of any of the services furnished
under this Agreement. The Professional shall maintain commercial general liability insurance in the
amount of $500,000 combined single limits, and errors and omissions insurance in the amount of
___________.
6. Compensation. [Use this paragraph or Option 1 below.] In consideration of the
services to be performed pursuant to this Agreement, the City agrees to pay Professional a fixed fee in
the amount of _____ ($_____) plus reimbursable direct costs. All such fees and costs shall not
exceed _____ ($_____). Monthly partial payments based upon the Professional's billings and itemized
statements are permissible. The amounts of all such partial payments shall be based upon the
Professional's City-verified progress in completing the services to be performed pursuant hereto and
upon the City's approval of the Professional's actual reimbursable expenses. Final payment shall be
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made following acceptance of the work by the City. Upon final payment, all designs, plans, reports,
specifications, drawings, and other services rendered by the Professional shall become the sole
property of the City.
6. Compensation. [Option 1] In consideration of the services to be performed pursuant to
this Agreement, the City agrees to pay Professional on a time and reimbursable direct cost basis
according to the following schedule:
Hourly billing rates: _____
Reimbursable direct costs: _____
with maximum compensation (for both Professional's time and reimbursable direct costs) not to exceed
_____ ($_____). Monthly partial payments based upon the Professional's billings and itemized
statements of reimbursable direct costs are permissible. The amounts of all such partial payments
shall be based upon the Professional's City-verified progress in completing the services to be
performed pursuant hereto and upon the City's approval of the Professional's reimbursable direct
costs. Final payment shall be made following acceptance of the work by the City. Upon final payment,
all designs, plans, reports, specifications, drawings and other services rendered by the Professional
shall become the sole property of the City.
7. City Representative. The City will designate, prior to commencement of work, its
project representative who shall make, within the scope of his or her authority, all necessary and
proper decisions with reference to the project. All requests for contract interpretations, change
orders, and other clarification or instruction shall be directed to the City Representative.
8. Project Drawings. [Optional] Upon conclusion of the project and before final payment,
the Professional shall provide the City with reproducible drawings of the project containing accurate
information on the project as constructed. Drawings shall be of archival quality, prepared on stable
mylar base material using a non-fading process to prove for long storage and high quality
reproduction.
9. Monthly Report. Commencing thirty (30) days after the date of execution of this
Agreement and every thirty (30) days thereafter, Professional is required to provide the City
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Representative with a written report of the status of the work with respect to the Scope of Services,
Work Schedule, and other material information. Failure to provide any required monthly report may, at
the option of the City, suspend the processing of any partial payment request.
10. Independent Contractor. The services to be performed by Professional are those of an
independent contractor and not of an employee of the City of Fort Collins. The City shall not be
responsible for withholding any portion of Professional's compensation hereunder for the payment of
FICA, Workers' Compensation, other taxes or benefits or for any other purpose.
11. Personal Services. It is understood that the City enters into this Agreement based on
the special abilities of the Professional and that this Agreement shall be considered as an agreement
for personal services. Accordingly, the Professional shall neither assign any responsibilities nor
delegate any duties arising under this Agreement without the prior written consent of the City.
12. Acceptance Not Waiver. The City's approval of drawings, designs, plans,
specifications, reports, and incidental work or materials furnished hereunder shall not in any way
relieve the Professional of responsibility for the quality or technical accuracy of the work. The City's
approval or acceptance of, or payment for, any of the services shall not be construed to operate as a
waiver of any rights or benefits provided to the City under this Agreement.
13. Default. Each and every term and condition hereof shall be deemed to be a material
element of this Agreement. In the event either party should fail or refuse to perform according to the
terms of this agreement, such party may be declared in default.
14. Remedies. In the event a party has been declared in default, such defaulting party
shall be allowed a period of ten (10) days within which to cure said default. In the event the default
remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek
damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail himself
of any other remedy at law or equity. If the non-defaulting party commences legal or equitable actions
against the defaulting party, the defaulting party shall be liable to the non-defaulting party for the
non-defaulting party's reasonable attorney fees and costs incurred because of the default.
15. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire
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agreement between the parties and shall be binding upon said parties, their officers, employees,
agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal
representatives, successors and assigns of said parties.
16. Law/Severability. The laws of the State of Colorado shall govern the construction,
interpretation, execution and enforcement of this Agreement. In the event any provision of this
Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding
shall not invalidate or render unenforceable any other provision of this Agreement.
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17. Special Provisions. [Optional] Special provisions or conditions relating to the services
to be performed pursuant to this Agreement are set forth in Exhibit "_", consisting of _____ (_____)
page[s], attached hereto and incorporated herein by this reference.
THE CITY OF FORT COLLINS, COLORADO
By: _________________________________
John F. Fischbach
City Manager
By: _________________________________
James B. O'Neill II, CPPO, FNIGP
Director of Purchasing & Risk Management
DATE: ______________________________
ATTEST:
_________________________________
City Clerk
APPROVED AS TO FORM:
_________________________________
Assistant City Attorney
[Insert Professional's name] or
[Insert Partnership Name] or
[Insert individual's name]
Doing business as ____[insert name of business]
By: __________________________________
Title: _______________________________
CORPORATE PRESIDENT OR VICE PRESIDENT
Date: _______________________________
ATTEST:
_________________________________ (Corporate Seal)
Corporate Secretary