Title
Pet Insurance - RFP HR 20-114
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Metropolitan Life Insurance Company (MetLife), administered by PetFirst Healthcare, LLC (a MetLife company) and underwritten by Independence American Insurance Company, to provide pet insurance for employees and retirees. There is no disbursement of funds or impact to the General Fund, as plan participants will pay the vendor directly.
Report
Summary
Pet insurance is a value-added employee and retiree benefit. This optional benefit is not a group plan. It is wholly paid by the participant to the vendor. However, offering pet insurance to employees and retirees provides them a 10 percent discount of their premiums. Employees and retirees work directly with the vendor to select highly customizable plan design options which meet individual needs. Premiums are determined by the pet's gender, age, breed, location, plan deductible, co-insurance percentage, and annual limit amount. Plan options include a "Routine Care" rider to cover annual visits and vaccinations.
Procurement Information
RFP HR 20-114 was conducted in accordance with Administrative Regulation 3.10. The Notice of Solicitation was emailed to 306 vendors registered in ProcurePHX and directly to 10 pet insurance providers. Two proposals were received by the Human Resources Department on April 3, 2020. An evaluation committee comprised of three voting members evaluated the offers. The offers were evaluated based on the following criteria (1,000 points total): Qualifications and Experience (250 points), Method of Approach (350 points) and Price (400 points). The evaluation committee determined that one offer was in the competitive range. The committee did not pursue a Best and Final Offer as it does not apply because policies are individually owned by the employee or retiree. The evaluation committee recommended awarding the contract to MetLife. The Offerors and final scores are listed below:
MetLife: 835 points
Embrace Pet Insurance: 440 points
The Human Resources Director recommends the offer from MetLife 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
There is no cost to the City and no impact to the General Fund. Pet insurance premiums are 100 percent paid by enrolled employees and retirees directly to the vendor.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.