Title
Benefits Consultant and Actuarial Services (Ordinance S-47185)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Foster & Foster Consulting Actuaries, Inc. to provide benefits consulting and actuarial services in an amount not to exceed $3,000,000 for a five-year period. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The benefits consulting and actuarial services agreement is needed to provide expert guidance to the Health Care Benefits Trust Board, Task Force and Human Resources management on the City’s employee and retiree medical and dental plans. Deliverables include but are not limited to developing comprehensive benefits strategies to attract and retain employees while utilizing cost containment strategies without significantly impacting the integrity of the plans; claims analysis; website development and maintenance; calculating annual premiums; evaluating Trust Fund solvency and project plan costs; informing of pending legal requirements; ensuring program compliance with legal requirements; and creating open enrollment materials and other communications.
Procurement Information
RFP HR 20-117 was conducted in accordance with Administrative Regulation 3.10. The solicitation included both benefits consulting and actuarial services. Offerors could submit for one or both services. The Human Resources Department received seven proposals all of which offered to provide both benefits consulting and actuarial services. Two Offerors were deemed nonresponsive for not meeting the requirements of the solicitation, and one Offeror was deemed nonresponsive for not meeting the requirements of the Best and Final Offer (BAFO).
The Notice of Solicitation was emailed to 404 vendors registered in ProcurePHX.
The offers were scored on the following criteria: Qualifications and Experience (300 points), Method of Approach (500 points) and Price (200 points). Evaluation occurred by a six-person panel. The evaluation committee determined that three proposals were within the competitive range, and those proposers were invited to participate in presentations. At the completion of the presentations, all proposals within the competitive range moved forward to the BAFO process. After reviewing the BAFO responses, one Offeror was deemed nonresponsive and it was the consensus of the evaluation committee to recommend awarding the contract to Foster & Foster Consulting Actuaries, Inc.
The following are the scores of the finalists:
Foster & Foster Consulting Actuaries, Inc. 851.04
The Segal Company 733.39
The Human Resources Director recommends the offer from Foster & Foster Consulting Actuaries, Inc. be accepted as the highest scored, responsive, and responsible offeror.
Contract Term
The five-year contract shall begin on or about Jan. 5, 2021.
Financial Impact
The aggregate five-year contract value for these services shall not exceed $3,000,000. Funds are available in the Health Care Benefits Trust Fund.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.