Title
Flexible Spending Account and COBRA Administration Services (Ordinance S-46757)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with ConnectYourCare, LLC to provide Flexible Spending Account (FSA) administration services in an amount not to exceed $200,000 and to provide Consolidated Omnibus Budget Reconciliation Act (COBRA) administration services in an amount not to exceed $20,000 over five years. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
FSA is a tax-favored program offered by employers which allows its employees to pay for eligible out-of-pocket health care and dependent care expenses with pre-tax dollars. This contract will continue to offer the same benefit to employees. Currently, there are approximately 850 employee healthcare FSA accounts and 300 employee dependent care FSA accounts.
COBRA requires employers with group health plans to provide temporary continuation of group health coverage (medical, dental and vision), when such coverage would otherwise be lost, to covered employees and their dependents. The City typically has 500 to 600 COBRA qualified participants.
Procurement Information
RFP HR 20-107 was conducted in accordance with Administrative Regulation 3.10. The solicitation included both FSA and COBRA administration services. Offerors could submit for one or both services. The Human Resources Department received eight proposals for both services, and one proposal for FSA only. The Notice of Solicitation was emailed to 335 vendors registered in ProcurePHX.
The offers were scored on the following criteria (1,000 total points): Qualifications and Experience (300 points), Method of Approach (400 points) and Price (300 points). The evaluation committee determined that two proposals were within the competitive range, and those proposers were invited to participate in interviews. At the completion of the interviews, all proposals within the competitive range moved forward to the Best and Final Offer (BAFO) process. After reviewing the BAFO responses, it was the consensus of the evaluation committee to recommended awarding the contract to ConnectYourCare, LLC for FSA and COBRA.
The Finalists and their scores are listed below:
FSA
ConnectYourCare, LLC: 878.00 Points
ASIFlex: 796.84 Points
COBRA
ConnectYourCare, LLC: 845.5 Points
ASI COBRA: 744.00 Points
The Human Resources Director recommends the offer from ConnectYourCare be accepted as the highest scored, responsive, and responsible offeror.
Contract Term
The five-year contract shall begin on or about Jan. 1, 2021.
Financial Impact
The aggregate five-year FSA contract value shall not exceed $200,000; the aggregate five-year COBRA contract value shall not exceed $20,000. The contract value is based on current and projected enrollment. Funds are available in the FSA and COBRA Trust Accounts.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.