Title
Pharmacy Benefits Management Consulting Services (Ordinance S-47568)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Foster & Foster Consulting Actuaries, Inc. to provide pharmacy benefits management consulting services in an amount not to exceed $600,000 for a five-year period. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The pharmacy benefits management consulting services agreement is needed to provide expert guidance to the Health Care Benefits Trust Board, Task Force and Human Resources management on the City’s employee and retiree pharmacy benefits provided in conjunction with the medical plans. Deliverables include but are not limited to: developing comprehensive cost-sharing strategies to attract and retain employees while utilizing cost containment measures without significantly impacting the integrity of the plans; evaluating the performance on the pharmacy carrier; reviewing pharmacy spend and utilization of coverage; recommending pharmacy plan changes; ensuring program compliance with legal requirements; and, participating in the employee and retiree plans pharmacy provider Request for Proposal processes.
Procurement Information
RFP HR 20-124 was conducted in accordance with Administrative Regulation 3.10. The Human Resources Department received six responsive and responsible offers.
The Notice of Solicitation was emailed to 394 vendors registered in ProcurePHX.
The offers were scored on the following criteria: Qualifications and Experience (300 points), Method of Approach (400 points) and Price (300 points). Evaluation occurred by a five-person panel. The evaluation committee determined that two offers were within the competitive range, and those offerors were invited to participate in presentations. One of the two offerors in the competitive range was deemed non-responsive due to their inability to meet the solicitation terms. The remaining competitive offeror submitted a Best and Final Offer (BAFO). After reviewing the BAFO responses, it was the consensus of the evaluation committee to recommended awarding the contract to Foster & Foster Consulting Actuaries, Inc.
The scores were as follows:
- Foster & Foster Consulting Actuaries, Inc. 885.75
- Buck Global, Inc 842.50
- Milliman Inc. 746.25
- Gallagher Benefit Services, Inc. 615.00
- CBIZ Benefits & Insurance Services, Inc. 580.00
- USI Insurance Services, LLC 398.75
The Human Resources Director recommends the offer from Foster & Foster Consulting Actuaries, Inc. be accepted as the highest scored, responsive, and responsible offeror.
Contract Term
The five-year contract shall begin on or about May 19, 2021.
Financial Impact
The aggregate five-year contract value for these services shall not exceed $600,000. Funds are available in the Health Care Benefits Trust Fund.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.