NOTICE OF REQUEST FOR PROPOSAL

Transcription

1 NOTICE OF REQUEST FOR PROPOSAL RFP# CITY OF NOGALES EMPLOYEE BENEFIT TRUST (EBT) June 3, 2016 Issued by: THE CITY OF NOGALES EMPLOYEE BENEFIT TRUST 777 N. GRAND AVENUE NOGALES, AZ Proposals are sought for Professional Broker / Consulting services for the City of Nogales Employee Benefit Trust (EBT). The full Request for Proposals material including a sample agreement may be obtained from: Martin Piñon, Human Resource Director 777 N. Grand Avenue Nogales, AZ (520) Deadline extended to Friday, July 29, 2016 Proposals are due by 4:00 p.m., Thursday the 30 th day of June, LATE PROPOSALS WILL NOT BE ACCEPTED Submit proposals to: Martin Piñon, Human Resource Director 777 N. Grand Avenue Nogales, AZ (520)

2 NOTICE OF REQUEST FOR PROPOSAL RFP# REQUEST FOR PROPOSALS FOR PROFESSIONAL BROKER / CONSULTING SERVICES FOR THE CITY OF NOGALES EMPLOYEE BENEFIT TRUST The City of Nogales Employee Benefit Trust (EBT) will receive from persons or firms qualified to provide broker / consulting services to the EBT with regard to the City of Nogales self-insured and partially self-funded group health insurance, group life insurance, group disability policies and Section 125 benefits. The full Request for Proposals may be obtained at: to download a copy of the bid packet, or contact: Human Resources at to receive a bound copy. or from Martin Piñon, Human Resource Director; 777 N. Grand Avenue, Nogales, AZ 85621; (520) The RFP must be received by the Human Resource Office, on or before 4:00 p.m. on Thursday the 30 th day of June, All RFP s must be submitted in a sealed envelope clearly marked on the outside with Statements of Qualifications and Proposals. Any RFP received after the time specified will be returned unopened. LATE RFP S WILL NOT BE ACCEPTED. If you have questions about obtaining the RFP, please contact Martin Piñon, Human Resource Director; 777 N. Grand Avenue, Nogales, AZ 85621; (520)

3 REQUEST FOR PROPOSAL RFP# REQUEST FOR PROPOSALS FOR PROFESSIONAL BROKER / CONSULTING SERVICES FOR THE CITY OF NOGALES EMPLOYEE BENEFIT TRUST PROPOSALS DUE BY 4:00 P.M. THURSDAY THE 30 TH DAY OF JUNE, Submit proposals to: Martin Piñon, Human Resources Director 777 N. Grand Avenue Nogales, AZ (520) I. GENERAL INFORMATION The purpose of this request for proposal is to solicit and select an independent insurance broker (hereinafter referred to as Broker) to act as the representative of the City of Nogales Employee Benefit Trust (hereinafter referred to as EBT) for employee health and welfare benefits management. In general, the Broker shall seek and recommend the most advantageous placement of insurance coverage including but not limited to the terms and conditions of coverage, continuity and cost. In addition, the Broker must be capable of providing a full range of value-added services, including but not limited to, those outlined in the Scope of Services section. II. SCOPE OF SERVICES EMPLOYEE BENEFIT CONSULTING The services detailed below are those services expected to be provided by Broker pertaining to health and welfare benefits. Actual work will be as directed and requested by the EBT and may involve other consulting services that are not listed below. 1. Serve as designated broker of record for City health, life, and disability benefits and flexible benefits. 2. Negotiate and recommend placement of employee benefit plans. 3. Analyze insurance proposals and present the results of such analysis to the EBT. 4. Negotiate all insurance renewals, including meeting directly with insurance company underwriters and place insurance as directed. 5. Analyze claim experience/financial development for all insurance coverages. 2

4 6. Prepare annual reports, for each line of coverage, analyzing financial developments, network utilization, insurer cost structures, etc., and make recommendations regarding changes, modifications and or benefit enhancements. 7. Conduct strategic planning meetings to establish goals, priorities and identify areas of concern. 8. Provide financial underwriting and claims analysis, including renewal analysis and negotiations, budget projections, funding levels and alternatives, large claims analysis and quarterly reporting of the plan s financial performance. 9. Evaluate plan design in light of industry trends and labor market conditions, claims cost trends, alternative delivery systems and legal requirements. 10. Evaluate eligibility, cost-sharing and benefit structure and network savings. 11. Prepare requests for Proposals for insurance services or other employee benefit programs; analyze and make appropriate recommendations. 12. Apprise the EBT of local and national trends and innovative ideas, and recommend new products, programs and services to ensure a competitive benefits plan. 13. Review and analyze claims experience data, claims service, efficiency and accuracy of claims administration to ensure that the EBT is receiving optimum service and benefits from all carriers and vendors. 14. Review on-going employee communications program, including a review of booklets, announcement materials and benefit statements. 15. Assist in COBRA, HIPPA, DOL, and ERISA compliance and reporting to include Summary Plan Descriptions and other Plan Documents. 16. Assist with projections on future costs of benefit programs for short, mid and long term sustainability of plan. 17. Review contracts with providers for accuracy in rates, benefits, eligibility, and coverage definitions. 18. Assist with claims and billing issues as requested. Provide point of contact for assistance with claims processing and coverage options for plan participants. 19. Attend meetings of the EBT, employees, or other meetings as requested and provide a plan review once per year with all employees. THE SCOPE OF SERVICES HEREIN SET FORTH SHALL BE PROVIDED AS SPECIFICALLY REQUESTED BY THE EBT AND SHALL BE COMPENSATED AS SET FORTH IN SECTION VI OF THIS PROPOSAL. III. PROPOSAL INSTRUCTIONS ALL PROPOSALS SUBMITTED BY THE BROKER MUST BE PRESENTED IN THE FORMAT PROVIDED BELOW AND MUST CLEARLY SHOW BROKER S RESPONSE IN THE APPROPRIATE DESIGNATION SECTION. FAILURE TO FOLLOW THIS 3

5 DIRECTIVE WILL CAUSE THE PROPOSAL TO BE DEEMED UNRESPONSIVE AND IT WILL BE REJECTED FROM ANY FURTHER CONSIDERATION. Broker should submit one (1) original and five (5) copies of the proposal. In the event multiple proposals are received from the Broker, Broker will be asked to select one proposal for consideration and the others will be returned to the Broker. IV. PROPOSAL REQUIREMENTS Proposals are to be submitted in 8 ½ x 11 size, typed and bound with a simple method fastening. LENGTHY NARRATIVE IS DISCOURAGED; PRESENTATIONS SHOULD BE BRIEF AND CONCISE AND NOT TO INCLUDE EXTRANEOUS OR UNNECESSARILY ELABORATE PROMOTIONAL MATERIAL. THE PROPOSAL SHOULD NOT EXCEED FIFTEEN (15) PAGES IN LENGTH, EXCLUDING APPENDICES, IF ANY. No oral, telegraphic, telephone or facsimile proposals will be accepted. One (1) original and five (5) copies shall be submitted in one proposal package. Proposals must be submitted to: CITY OF NOGALES, HUMAN RESOURCES DIRECTOR, 777 N. GRAND AVENUE, NOGALES, AZ 85621, ON OR BEFORE 4:00 P.M. ON THURSDAY THE 30 TH DAY OF JUNE, LATE SUBMITTALS WILL NOT BE ACCEPTED. Proposals must be clearly marked Statements of Qualifications and Proposal for consulting services to City of Nogales Employee Benefit Trust. Questions regarding this solicitation, or for obtaining bid specifications, may be addressed by contacting Martin Piñon, Human Resource Director, City of Nogales, 777 N. Grand Avenue, Nogales, Arizona, 85621; (520) ; mpinon@nogalesaz.gov. V. PROPOSAL CONTENT All proposals must include the following requested information in the appropriate sections as defined below: Section A Company Information 1. Provide the following information 1.1 Name of the proposed firm and name of the representative submitting the proposal. Include all contact information. 1.2 Provide an overview of your firm and its ownership/organizational structure, philosophy/culture and number of employees. 1.3 Furnish full background information about your firm, including date of founding, legal form (i.e. sole proprietorship, partnership, LLC, corporation/state of incorporation), number and location of offices, principal lines of business, any conditions; bankruptcy or other financial problems, pending litigation, planned office closures, impending merger, that may affect the Proposer s ability to perform contractually. Certify that the firms are not debarred, suspended or otherwise declared ineligible to contract by any federal, state or local public agency. 4

6 1.4 Describe, if applicable, how your firm is functionally tied to any insurer or provider of service and how that relationship may influence your ability to provide Broker services to the EBT. 1.5 Identify members of your staff that would be assigned to this contract and provide a summary of their qualifications, percentages of their time you anticipate they would be dedicating to this contract and their availability for travel as required. Section B Company Expertise / Experience 1. Describe your firm s expertise in each of the following areas: 1.1 Describe your firm s most noteworthy qualifications for providing the required services to the City. Specifically highlight those qualifications that distinguish you from your competitors. 1.2 Identify not less than three (3) current and three (3) former clients the City may contact as references and who can independently evaluate the Proposer s expertise in this area. Describe the work performed and include the name, job title, address and telephone number of a contact for each reference. 1.3 Provide other lines of business in which your firm is engaged. If your organization is a subsidiary or division of a parent firm, provide similar background information on the parent company and identify any other affiliated companies. 1.4 Provide your firm s policy on accepting contingent commissions, or other sources of income, revenue consideration, compensation or overrides, in connection with services provided to your clients and disclose all such relationships and payments. Describe your firm s disclosure policy. 1.5 Disclose any existing or potential conflicts of interest between the scope of work required by the City and your firm s other business activities. 1.6 Furnish certificates of insurance showing the types and amounts of insurance carried by your firm. 2. Marketplace Position 2.1 Describe your firm s marketplace leverage in negotiating with carriers in regards to rates, policy terms and plan design. 2.2 Describe your view of the role of a Broker in this type of relationship and what differentiates your firm from other brokerage-consulting firms. 2.3 Identify a minimum of three (3) other accounts similar in size and scope for which you are presently service as Broker which can serve as a reference for your service. 5

7 3. Insurance Carrier and Health Plan Selection Process 3.1 Describe how your firm would handle the selection of insurance carriers and other service providers for the EBT. 3.2 Describe your firm s consulting approach for bidding and selecting the most appropriate health plan alternative. 4. Staffing and Project Organization 4.1 Please discuss the staff who would be assigned to service the City s account, their projected levels of work, and their reporting relationships. 4.2 Identify the key personnel who would be assigned to this project. Include a brief description of their qualifications, current job functions (including other accounts to which they are committed), proposed roles on the City of Nogales account team, and office location(s). Designate a principal of the firm who would be ultimately responsible for the relationship who would provide day-to-day direction of the required work. Furnish brief resumes (not more than one page long) for all key personnel; include these as an appendix, not in the body of the proposal. 4.3 If more than two (2) people will be assigned to the EBT s project, include a simple organization chart that clearly delineates communication and reporting relationships among the project staff. 5. Work Plan 5.1 Please set forth the Proposer s understanding of the EBT s objectives and requirements. Please demonstrate the Proposer s ability to meet those requirements and outline clearly and concisely the plan for accomplishing the specified work. 5.2 Describe succinctly how your firm would accomplish the work and satisfy the EBT s objectives described in this RFP. If appropriate, divide the work into segments or tasks to represent milestones for measuring progress. 5.3 Attach as an appendix a sample insurance renewal proposal your firm prepared for a client of the size and complexity of the City of Nogales. You may exclude information deemed proprietary to the client. 5.4 List all the names of the insurance companies that underwrite 30% or more of your firm s book of business. Project whether you would approach the same markets on behalf of the EBT account or source other markets. VI. COMPENSATION 1. Compensation for the services described in Section II, shall be provided on an hourly basis for the specific services requested in writing by the EBT. Billing for services provided shall be itemized setting forth in detail the services provided and the hours devoted. Hourly rates shall not exceed the amount of $ Total annual hours billed shall not exceed two thousand eighty (2,080) hours. 2. Broker shall specify the rates to be charged by broker and members of their staff. 6

8 3. Broker shall establish the number of hours expected to be expended in providing the required services as authorized in Section II. 4. Broker shall include any other charges or costs not included in the proposed hourly rate. VII. EVALUATION CRITERIA All proposals received in accordance with these RFP instructions will be evaluated to determine if they are complete and meet requirements specified in this RFP. An award will be made to the Proposer whose offer is judged to be the most advantageous to the EBT. Proposals shall be further evaluated and a selection made using the following criteria: 1. Composition and qualifications of staff. 2. Reputation and experience of the firm with respect to providing employee benefits services in the following areas: self-insured and partially self-funded health, life, disability insurance and Section 125 benefits. 3. Ability to carry out the scope of work. 4. Work plan and technical approach. 5. References from other municipalities and customers within Arizona who have contracted this individual or firm similar work in the past. 6. Demonstration of competence, technical expertise, experience in employee benefits, insurance placement and Human Resources. 7. Demonstrated record of responsiveness and quality of customer service on this type of account. 8. Both the Broker s capabilities and the experience of individual team members assigned to the EBT account will be considered. 9. Availability to travel as needed. 10. Rates, fees or charges including the level of detail provided in the firm s fee information, as well as the willingness of the firm to offer flexible fee arrangements. 11. Broker s awareness and ability to provide timely, accurate communication of emerging trends, opportunities, regulatory updates and liabilities to clients. 12. Broker s ability to provide a broad spectrum of consulting services, including, but not limited to actuarial, claims administration, alternative funding arrangements. 13. Responsiveness of the Broker s proposal to the RFP, including clarity and organization of response, clear presentation of Broker s experience and approach to ensuring the needs of the EBT are fully met. 7

9 VIII. LENGTH OF CONTRACT The duration of the Contract is two (2) years. However, the EBT reserves the right to terminate the contract at any time, for any or no reason, with thirty (30) days notice. The selected firm will have no proprietary interest in the terms of contract or length of contract. IX. AWARD OF CONTRACT EXECUTION The City of Nogales Employee Benefit Trust shall review the proposals and select the most qualified and most responsive. Prior to the execution of a Contract, the successful Offeror shall have a valid City of Nogales business license or have completed a business license application on file with the Revenue Office of the City of Nogales. SUCCESSFUL BROKER WILL BE EXPECTED TO ENTER INTO THE CONTRACT ATTACHED HERETO AS EXHIBIT A. X. REJECTION The EBT reserves the right to waive any errors, omissions, irregularities and deviations from specifications if the EBT determines that such action is in the best interest of the EBT. Furthermore, the EBT may waive any requirement or provision hereof and reserves the right to modify (with the approval of the bidding or proposing party) any bid proposal, to negotiate with any bidding or proposed price and/or condition, including increasing or decreasing a proposed price and or scope of project. This RFP is utilized merely as a vehicle to facilitate the evaluation of prospective contractors. This Statement of Qualifications shall not in any manner grant and shall not be construed in any manner to grant any rights, benefits, or expectations of any manner whatsoever to any person interested in or contemplating submitting a bid or proposal. The EBT reserves the right to negotiate a proposal in the best interest of the City which may include adding or deleting terms and conditions from those specified herein and/or from those bid upon by a responsive bidder or contained in a responsive bidder s bid or proposal. XI. TENTATIVE SCHEDULE Release of RFP June 3, 2016 Due Date of RFP June 30, 2016 Trustee Decision July 28,