Title
Employee Group Life, Accidental Death and Dismemberment and Occupational Life Insurance (Ordinance S-46758)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Minnesota Life Insurance Company to provide Employee Group Life, Accidental Death and Dismemberment (AD&D), and Occupational Life Insurance benefits in an amount not to exceed $22 million over five years. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
Employee group basic, AD&D, occupational life insurance and commuter benefits are employee benefits paid by the city and represent approximately one-third of the aggregate contract amount. Optional life insurance for employees, spouses, and children are paid by the employees via payroll deduction and represent approximately two-thirds of the aggregate contract amount.
Procurement Information
RFP HR 20-106 was conducted in accordance with Administrative Regulation 3.10. The Notice of Solicitation was emailed to 371 vendors registered in ProcurePHX. Four proposals were received by the Human Resources Department on March 16, 2020. An evaluation committee comprised of four voting members evaluated the offers. The offers were evaluated based on the following criteria (1,000 points total): Qualifications and Experience (400 points), Method of Approach (200 points) and Price (400 points). The evaluation committee determined that three proposals were within the competitive range. The three vendors were interviewed and given the opportunity to provide Best and Final Offers (BAFO). After reviewing the BAFO responses, the evaluation committee recommended awarding the contract to Minnesota Life Insurance Company.
The Offerors and final scores are listed below:
Minnesota Life Insurance Company: 871.81 points
The Hartford: 816.63 points
MetLife: 747.43 points
Voya: 435.78 points
The Human Resources Director recommends the offer from Minnesota Life Insurance Company 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 contract value shall not exceed $22 million over five years. The aggregate five-year cost for City-paid premiums is $8 million paid from the Life Insurance Trust. The $14 million balance is estimated employee-paid premiums.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.