HomeMy WebLinkAboutCORRESPONDENCE - RFP - P751 BENEFITS CONSULTANTAdministrative Services
Purchasing Division
City of Fort Collins
February 24, 2003
William M. Mercer, Incorporated
Attn: Mr. Thomas R. Pung, FSA, MAAA
370 17`h Street Ste 4000
Denver, CO 8020
Re: Renewal, #P-751 Benefits Consultant
Dear Mr. Pung,
MAR 0 3 200�
The City of Fort Collins wishes to extend the agreement for the above captioned proposal signed
December 3, 2000 and revise the renewal term to January 1, 2003 through December 31, 2003 with
(1) one additional year renewal option. The rate will be as proposed in the above referenced
agreement, Exhibit "B" page 1; total cost not to exceed $41,000.
If the renewal is acceptable to your firm, please sign this letter in the space provided and return it to
the City of Fort Collins, Purchasing Division, P. O. Box 580, Fort Collins, CO.85022, within the next
fifteen days.
If this extension is not agreeable with your firm, we ask that you send us a written notice stating that
you do not wish to renew the contract and state the reason for non -renewal.
If you have any questions regarding this matter, please contact James B. O'Neill II, CPPO, FNIGP
Director of Purchasing and Risk Management.
Sincerely,
- YD
Jam s B. O'Neill II, CPPO, FNIGP
Di ctor of Purchasing and Risk Management
Encl: Exhibit "B" page 1
cc: Vincent H. Pascale, Jr. Benefits Administrator
Proposal #P-751
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Si ture I f Date
(Please indicate your desire to renew Proposal #P-751 by signing this letter and returning it to
Purchasing Division within the next fifteen days.)
215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
Proposed cost of basic duties:
The length of the contract will be for a period of one year plus up to four additional one-year periods.
It is expected that the firm will provide all of the Scope of Services described in Section If. The proposed fees should
include all costs (i.e., miscellaneous administrative, travel, etc.). State an annual cost for each of the contract years, the
maximum annual consulting cost for the proposed services (Do not respond with hourly rates.)
Mercer typically works with our clients on a time and expense basis. Based upon your request to provide a "maximum" annual
cost, we have segregated the scope of services into a "base" consulting fee and estimated additional components that would not
be charged on a year over year basis. Based upon the Scope of Services outlined in your RFP and our subsequent discussions
with the City, our fees will not exceed those shown below. Additionally, we have the ability to receive reimbursement through
commission arrangements with your various carriers if that arrangement would be more acceptable to the City. Our experience
has shown that commissions can offset a great deal of the fees.
Total Cost not to exceed:
"Retainer" Tees
Special Services*
Total
June 2000 — May 2001
June 2001— May 2002
June 2002 — May 2003
June 2003 — May 2004
$359000
$379000
$395000
$41,000
$135000
$30,000
$487000
$679000
$39,000
$41,000
June 2004 — May 2005
$439000
$439000
* Special Services: We have assumed that the review of and restatement of plan documents would be conducted in year one
and that "bidding" services (as outlined in App6ndix E) would be performed in year two and. While not required to happen
in these years, the costs would only apply in the year in which the service was rendered.
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William M. Mercer, Incorporated 1 CITY OF FORT COLLINS