Title
Benefits Consulting Services Contract - RFP 25-0462 - Request for Award (Ordinance S-51972) - Citywide
Description
Request to authorize the City Manager, or his designee, to enter into a contract with The Segal Company (Western States), Inc., to provide benefits consulting and actuarial services for the Human Resources Department. Further request to authorize the City Controller to disburse all funds related to this item. The total value of the contract will not exceed $4,500,000.
Report
Summary
The Contractor will provide a wide range of consulting services to the Human Resources Department, including benefits consulting services, actuarial services, pharmacy benefit management services, and solicitation services. The services are needed to provide expert guidance to the Health Care Trust Board, Health Care Task Force and Human Resource management on the City's employee and retiree benefits to include medical, dental, pharmacy and other health care benefits. Deliverables include, but are not limited to: developing comprehensive cost-sharing strategies to attract and retain employees with utilizing cost containment measures without significantly impacting the integrity of plans; claims cost and utilization analysis, calculating annual premium, evaluating the performance on the pharmacy carrier; reviewing pharmacy spend and utilization of coverage; recommending pharmacy plan changes; ensuring program compliance with legal requirement; and will assist with various phases of the City employees and retirees benefits-related solicitations.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
A Request for Proposal procurement was processed in accordance with City of Phoenix Administrative Regulation 3.10.
Seven offerors submitted proposals, two were deemed non-responsive and five were deemed responsive and responsible. An evaluation committee of City staff evaluated those offers based on the following criteria with a maximum possible point total of 1,000:
Qualifications, Experience, and References (0-325 points)
Method of Approach (0-375 points)
Pricing (0-300 points)
After reaching consensus, the evaluation committee recommends award to the following vendor:
The Segal Company (Western States), Inc.: 869 points
Contract Term
The Employee Benefits Consulting Services will begin November 1, 2025 and the Pharmacy Benefit Management Consulting Services will begin May 1, 2025, for a five-year term ending on December 31, 2030 with no options to extend.
Financial Impact
The aggregate contract value will not exceed $4,500,000. Funding is available in the Health Care Benefits Trust Fund.
Department
Responsible Department
This item is submitted by Deputy City Manager David Mathews and the Human Resources Department.