Title
Contract Amendment for Pharmacy Benefit Management Consultant Agreement (Ordinance S-45883)
Description
Request authorization to amend the contract with Towers Watson Delaware Inc., City Contract 143398, to provide one year of management oversight of the new pharmacy vendor, EnvisionRx, in an amount not to exceed $130,000. There is no impact to the General Fund. The costs for these services are paid by the Health Care Benefits Trust Fund. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The City entered into contract with Towers Watson Delaware Inc. on May 1, 2016 to provide pharmacy benefit consulting services, Ordinance S-41814. The scope of work amendments include pharmacy post-implementation auditing to ensure plan administration and contractual compliance; creating and implementing a strategic plan including a review of the EnvisionRx system set-up and formulary structure to ensure alignment with the City’s intent; and evaluating recorded calls between EnvisionRx and City plan members to provide feedback.
Procurement Information
In 2015, a formal Request for Proposals was conducted with Towers Watson Delaware Inc. being awarded the contract.
Contract Term
The existing contract is for a three-year period, with the option to extend the contract for two, one-year terms totaling $510,000. The first amendment is effective May 1, 2019.
Financial Impact
There is no impact to the General Fund. The costs for these services are paid by the Health Care Benefits Trust Fund.
Concurrence/Previous Council Action
The Health Care Benefits Trust Board approved this expenditure on March 28, 2019.
Department
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone and the Human Resources Department.