HomeMy WebLinkAboutRFP - P751 BENEFITS CONSULTANT (2)REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
BENEFITS CONSULTANT (ANNUAL)
PROPOSAL NO. P- 751
PROPOSAL DATE: 2:00 p.m. (Our clock) April 14, 2000
TABLE OF CONTENTS
8. List the five (5) largest clients in which principal consultant is involved on an ongoing basis
and which the company can provide as a reference. Provide name of client, contact name,
address, telephone number and number of employees.
9. List other self -funded governmental plans for which the firm has served, the capacity in
which it served, and whether it is an active account. Provide name of client, contact name,
address, telephone number and number of employees.
10. Who would be directly responsible for handling problem claims review and appeals when
requested by the City. What are their qualifications? Would your firm be willing to render a
determination on such claims?
11. Submit a sample of annual and periodic reports you provide similar clients.
12. One area of interest for the City is improving its management reporting and analysis of the
self -funded healthcare plan. Provide a description of how your firm assists clients in this
area, along with a sample report you would offer the City as part of this contract.
13. What is your experience in dealing with demographic area healthcare delivery concerns,
such as a single hospital, limited PPO arrangements, consolidated specialty physicians?
14. What is your experience in developing/evaluating/maintaining Section 125 plans?
15. What is your experience with negotiating for services of third party administrators, utilization
review, HMO's, stop loss, long term disability, prescription drug discount and life insurance
carriers?
16. What resources does your firm have available in the area of developing technical employee
communications?
17. Describe any pending litigation against your firm.
18. Describe the professional liability coverage carried by your firm.
19. Describe any problems you foresee in your ability to conduct the services described in this
Request for Proposal.
20. 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 ll.
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 costfor
the proposed services. (Do not respond with hourly rates.)
Total Cost not to exceed:
10
June 2000 - May 2001
June 2001 - May 2002
June 2002 - May 2003
June 2003 - May 2004
June 2004 - May 2005
Cost of additional services:
The City recognizes that at times various projects and services may develop that are not part
of the proposed Scope of Services. State the current hourly billing rates for each level of
employee that may be involved in conducting additional services.
21. Beyond the stated scope of services, what additional services would you anticipate for a
client like the City? What would be the estimated cost of those additional services?
11
Attachment A
City of Fort Collins
Eligibility
Classified and Unclassified Management: (1,150 employees)
Medical
Dental
Vision
Flexible Spending Accounts
Life Insurance
Long Term Disability (excludes fire and police)
Employee Assistance Program
457 Deferred Compensation Plan
401(a) Money Purchase Plan
Defined Benefit Pension Plan
Dental Reimbursement Plan
Contractual: (40 employees)
Medical
Dental
Vision
Flexible Spending Accounts
Life Insurance
Employee Assistance Program
Seasonals: - must work minimum of 30 hours/week at least six months out of year.) (200
employees)
Medical (HMO only)
Retirees: (39 employees currently)
Medical only
This Request For Proposal (RFP) only includes consulting services for medical, dental, dental
reimbursement, vision, prescription drug, flexible spending accounts, life insurance, stop loss,
utilization review/case management, and long term disability. It does NOT include consulting
services for the Employee Assistance Program, 457 deferred compensation plan, 401(a) money
purchase plan, or defined benefit plan.
1
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 QUALIFICATION STANDARD
FACTOR
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?
1
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.
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 1, hereinafter referred to as "Professional'.
W ITNESSETH:
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:
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 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 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. 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
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.
9. 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 hereunderforthe payment of
FICA, Workers' Compensation, other taxes or benefits or for any other purpose.
10. 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.
11. 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.
12. 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.
13. 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.
14. Bindinq Effect. This writing, together with the exhibits hereto, constitutes the entire
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.
15. 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.
16. Special Provisions. [Optional] Special provisions or conditions relating to the
services to be performed pursuant to this Agreement are set forth in Exhibit "C", 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
Director of Purchasing & Risk Management
DATE:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney
Invitation to Bid
Page 3-4
Section I - Purpose and Plan Information
A. Purpose
Page 5
B. Eligible Employees
Page 5
C. Plan Year and Open Enrollment
Page 5
D. Present Benefit Plans
Page 5-6
E. Wellness Program
Page 6
Section II - Scope of Services
A. Ongoing
1. Self -Insured Health Plan
Page 7
a) Statistical analysis
Page 7
b) Policy analysis
Page 7
c) Administrative Support
Page 7
2. Other Benefits
Page 8
3. Contract Negotiation
Page 8
4. Legal Support
Page 8
5. General Guidance
Page 8-9
6. Additional Request for other Services
Page 9
Section III - Qualifications
Page 9
Section IV - Questionnaire
Page 9-11
Attachment A
Page 1
Review and Assessment
Page 1
Reference Evaluation
Page 1
Professional Services Agreement
Page 1-6
REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
BENEFITS CONSULTANT (ANNUAL)
PROPOSAL NO. P-751
[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 Secretary
(Corporate Seal)
CITY OF FORT COLLINS
ADDENDUM No. 1
Description of Proposal No. P-751, Benefits Consultant
OPENING DATE: 2:00 p.m. April 14,2000
To all prospective Proposers under the specifications and contract documents described above,
the following changes are hereby made.
The following changes or amendments are made to the above captioned RFP.
Section 1. Item D. (Present Benefit Plans) add:
Transplant Coverage
BCS Transplant Insurance
Stop Loss Coverage
American Stop Loss Coverage takes effect after individual
has $120,000 of total claims in one
calendar year.
Section III. Qualifications
Add:
5. Proposals shall be accepted on a fee only basis. The City of Ft. Collins
will not consider a commission -based proposal.
RECEIPT OF THIS ADDENDUM MUST BE ACKNOWLEDGED BY A WRITTEN STATEMENT
ENCLOSED WITH THE PROPOSAL STATING THAT THIS ADDENDUM HAS BEEN
RECEIVED.
The City of Fort Collins is requesting proposals from firms for securing employee benefits consulting
services.
Written proposals, four (4) will be received at the City of Fort Collins' Purchasing Division, 256 West
Mountain Avenue, Fort Collins, Colorado 80521. Proposals will be received before 2:00 p.m. (our
clock), April 14, 2000. Proposal No. P-751
A copy of the Proposal may be obtained as follows:
Call the Purchasing Fax -line, 970-416-2033 and follow the verbal instruction to
request document #30751. (The proposal number must be preceded by a 30
when using the Fax -line.)
Download the Proposal from the Purchasing Webpage, Current Bids page, at:
www.ci.fort-collins.co. us\CITY_HALL\PURCHASING then via the Current
Bids pushbutton.
3. Come by Purchasing at 256 W. Mountain Ave., Fort Collins, and request a copy
of the Proposal.
Questions concerning the scope of the project should be directed to the Project Manager:
Vincent Pascale, Human Resources (970) 221-6828.
Questions regarding proposals submittal or process should be directed to:
Carl Yost, Buyer (970) 221-6775.
Sales prohibited/conflict of interest: No officer, employee, or their dependent or person residing in
and sharing the expenses of their household, shall have a financial interest in the sale to the City of
any real or personal property, equipment, material, supplies, or services. This rule also applies to
subcontracts with the City. This shall not apply to members of any authority, board, committee or
commission of the City, other than the members of the City Council. Soliciting or accepting any gift,
gratuity favor, entertainment, kick -back 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. Any vendor knowing of this type
of activity is encouraged to report in confidence to the Director of Purchasing and Risk Management,
Director of Finance, City Attorney or City Manager so the matter can be dealt with.
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
Director of Purchasing & Risk Management
BENEFITS CONSULTANT
REQUEST FOR PROPOSAL
Section I. Purpose and Plan Information
A. Purpose
This document is a request for proposals from qualified firms, related to securing employee benefits
consulting services.
B. Eligible Employees
The City of Fort Collins has approximately 1,400 employees with benefits. Benefits are provided for
all full and part-time classified and unclassified management employees. Certain seasonal and
contractual employees are also eligible. The City added retirees to its current plans for coverage
(January 1, 1996). * See attachment A.
C. Plan Year and Open Enrollment
Open enrollment is traditionally held in Novemberwith an effective date of January 1 to coincide with
the calendar year and the CityOs fiscal year.
D. Present Benefit Plans
The benefit plans for which services are requested are listed below. Plans indicated by asterisk
(*) are incorporated into a Section 125 flexible benefits plan. In addition, the medical plans are
protected from claims over $120,000 through a Stop Loss insurance contract through American
Stop Loss.
* Health Plans (Self -Funded, Employee/Employer Shared Cost)
PPO: 2 Options, High and Low Deductible
TPA: National Health Systems, Inc.
Managed Care Services: Sloans Lake
PBM: Express Scripts, Inc.
EPO 1 Option
Administered by PacifiCare
POS 1 Option
Administered by PacifiCare
* Dental Plans (Self -Funded, Employee/Employer Shared Cost)
5
2 Options: Basic and Comprehensive
Administered by Delta Dental
Vision Plan (Self -Funded, Employee Paid)
One Option
Administered by Vision Service Plan
Term Life Insurance
" Basic Life & ADD: Sun Life of Canada
Mandatory 1x salary, Employer Paid
Voluntary 1, 2 or 3x salary
Supplemental Life & AD&D: Sun Life of Canada (AD&D for Employees Only)
Voluntary 1,2, or 3x salary
Voluntary Spousal Coverage $25,000-100,000
Voluntary Childrens' Coverage $5,000 or $10,000
Voluntary 1, 2, or 3X salary: Rocky Mountain Life
Voluntary, $10,0004300,000, in $10,000 units
Voluntary Family Coverage Available
* Long-term Disability
Sun Life of Canada
Long Term Care
First Penn Pacific
* Flexible Spending Accounts
Health Care and Day Care
E. Wellness Program
Fully Insured, Employer Paid
Funded through whole life insurance, Employee paid
Administered in-house; employee paid
The City has a wellness program which includes educational seminars, exercise programs, and
healthy lifestyle incentive programs. A self -care education program was instituted in 1991 and again
in 1995.
G
Section II. Scope of Services
A. Ongoing
Self -Funded Health Plan
a) Statistical analysis:
Provide quarterly report which includes an analysis of income and expense
for the prior quarter.
Provide annual report which includes an analysis of income and expense for
the prior year and a projection for the forthcoming year including projected
adequate reserve levels for plan.
Establish annual premium rates, including COBRA, hourlies, and retirees.
b) Policy analysis:
Provide general guidance on trends in benefits offered and eligibility
requirements. Recommend plan changes based on these trends.
Advise and consult on methods for improving cost containment and claims
administration.
For above, where applicable, provide cost analysis of possible impact on
plan.
c) Administrative Support:
Revise and maintain Plan Document, including preparation of
amendments and the restatement of the Plan Document, as needed.
Review for accuracy and appropriateness revisions to the Summary Plan
Description.
Review unusual claims situations, such as appeals which cannot be resolved
at the peer review level or which require special handling.
2. Other Benefits:
Revise and maintain dental plan document and flexible benefits plan document,
including preparation of amendments and the restatement of the Plan
Documents, as needed. Review for accuracy and appropriateness revisions to
Summary Plan Descriptions.
7
Review contracts with vendors to insure accuracy and comprehensiveness of
coverage. Provide guidance in contract interpretation, as needed.
Advise on required reserves for dental plans.
Assist in the modification and pricing of any current or newly considered flexible
benefit plan provisions.
Advise and consult on trends in benefit plans being offered locally and nationally
(such as dental, vision, PPO, etc.).
Assist with development of Requests For Proposals for various vendors in
compliance with City purchasing requirements. This may include developing
evaluation criteria and evaluating/summarizing proposal information.
3. Contract Negotiation:
Work with City Purchasing and Benefits to advise on negotiations with third party
administrators, utilization review firms, HMO's, PPOOs, stop loss, long term disability,
prescription drug discount programs, and life/AD&D insurance carriers.
4. Legal Support:
Assist in the preparation of governmental filings, such as the Form 5500.
Provide notification and updates on changing laws, regulations, and administrative or
judicial ruling which relate to benefits programs.
Review plan documents to ensure compliance with appropriate laws and regulations
and notify of any necessary plan document amendments.
5. General Guidance:
Provide answers or guidance to any general or technical benefits questions.
If requested, review communication materials (open enrollment, summary plan
descriptions, memos, etc.) for content, appearance, and compliance with laws and
regulations.
The Consultant will be working on a frequent basis with the Benefits Administrator.
The consultant will be expected to assist the City on a regular basis and in a timely
manner to provide guidance to technical problems that may arise. In the past, it is
not uncommon to conduct several telephone calls per week and a meeting every
month.
The Consultant is not expected to attend open enrollment meetings with employees.
However, the Consultant may occasionally be expected to attend a special meeting
to provide expert guidance and discussion of the plans.
3
6. Additional Requests for other Services:
The City reserves the right under the terms of this RFP to request duties unrelated to
this defined set of consulting services. The Scope of these services and related cost
will be agreed to prior to the consultant performing any work. Compensation for
these services will be based on an "not to exceed" amount.
Section III. Qualifications
1. Prior experience with governmental entities as clients.
2. Prior experience with organizations with at least 600 employees as clients.
3. Prior experience with self -funded health and dental plans.
4. Understanding of, and direct experience with, northern Colorado demographic area
healthcare delivery concerns. (e.g. single hospital, limited PPO arrangements,
consolidated specialty physicians).
Section IV. Questionnaire
Describe your firm, its history and size, the locations in which it operates, and the number of
employees.
2. Location of the office from which consulting services would be provided, and the employee
turnover rate among consultants and staff personnel of this office during the past two years.
3. What is your firm's philosophy in the approach to benefits consulting?
4. Provide information on principal consultant who would be responsible for the City of Fort
Collins' account. What is their professional background and experience? Specifically
include individualOs experience 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.
5. If the principal consultant were to leave your firm, how would service be provided? How
soon would a new principal consultant be assigned to the City's account?
6. What is the principal consultant's experience with self -funded benefit plans (specifically,
health & dental)?
7. For how many clients does the principal consultant provide services?
0