Title
Voluntary Legal Insurance Benefits - RFP HR 22-017 - Request for Award (Ordinance S-50110)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with ARAG Insurance Company to provide employee and retiree voluntary legal insurance benefits. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The City offers voluntary legal insurance benefits to eligible employees and retirees as part of its Total Rewards package. Employees enroll within 31 days of hire or during the annual Benefits Open Enrollment period and pay the entire plan premium through monthly payroll deductions. Eligible retirees enroll and pay the monthly premium directly to the contracted provider.
This item has been reviewed and approved by the Information Technology Services Department.
Procurement Information
RFP HR 22-017 was conducted in accordance with Administrative Regulation 3.10. A Notice of Solicitation was emailed to 81 vendors registered in the City's eProcurement system. Four proposals were submitted.
The offers were scored using the following criteria:
- Qualifications and Experience (300 points);
- Method of Approach (400 points); and,
- Pricing (300 points).
The evaluation panel determined that two offers were in the competitive range. Both finalists provided Best and Final Offers (BAFO).
After review of the BAFOs, it was the consensus of the panel to recommend an award to the incumbent vendor, ARAG Insurance Company. ARAG was the highest-scored, responsive and responsible offer deemed most advantageous to the City. ARAG's BAFO resulted in lower cost for plan premiums and enhanced plan services compared to the current contract, which expires Dec. 31, 2023.
The final consensus scores are as follows:
- ARAG Insurance Company: 926 points
- Metropolitan Life Insurance Company: 810 points
- Pre-Paid Legal Insurance Services: 616 points
- U.S. Legal Services: 538 points
Contract Term
The five-year contract term shall begin on or about Jan. 1, 2024.
Financial Impact
There is no financial impact to the City for this contract. Services are fully paid by the enrolled employees and retirees. Monthly premiums are fixed and guaranteed through the five-year term.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Human Resources Department.