NORWALK-LA MIRADA UNIFIED SCHOOL DISTRICT

NORWALK-LA MIRADA UNIFIED SCHOOL DISTRICT EMPLOYEE BENEFITS INSURANCE BROKER AND CONSULTING SERVICES RFP NO. 1516-2 I. INTRODUCTION A. PURPOSE The purpose of this Request for Proposal ( RFP ) is to solicit offers for insurance broker and consulting services related to marketing and administration of the employee benefit programs for the Norwalk-La Mirada Unified School District ( District ). The District seeks consulting services to enable the District to provide, on a cost-effective basis, quality health insurance products to employees and retirees. The District seeks a Consultant that is well versed in the employee benefits market, experienced in advising comparable public agencies, and that works well with various levels of labor, staff and management. B. PROPOSAL SUBMISSION AND OPENING Proposals must be received by 2:00 p.m. April 14, 2016. Proposals will be date stamped to record receipt thereof. Any proposal received after this date and time, may, at the sole discretion of the District be returned without consideration. It is the practice of the District not to consider late offers unless it is determined that a selection cannot be made from the proposals received on time. The address for submission of proposals is: Norwalk-La Mirada Unified School District Attn: Cindy Jimenez, Director of Purchasing & Warehouse 12820 Pioneer Boulevard, Norwalk, California 90650 C. DISTRICT CONTACT PERSONS Proposers with any questions regarding the Scope of Work should submit their request, in writing, via email: Norwalk-La Mirada Unified School District Attn: Anthony Nahale, Director of Risk Management, email: anahale@nlmusd.org Subject Line of Email to Read: RFI for RFP No. 1516-2 Proposers with any questions regarding any other aspect of this RFP should submit their request, in writing, via email: Norwalk-La Mirada Unified School District Attn: Cindy Jimenez, Director of Purchasing & Warehouse, email: cjimenez@nlmusd.org, Subject Line of Email to Read: RFI for RFP No. 1516-2

D. DISPOSITION OF PROPOSALS All material submitted in response to this RFP becomes the property of the District and will become public records after the award of contract, except for information identified by the Proposer as being proprietary and which is eligible for non-disclosure under the California Public Records Act. E. STANDARD AGREEMENT The Proposer selected for contract award, through this RFP, shall be required to enter into a written agreement with the District, which can be found at www.nlmusd.org/apps/pages/index.jsp?type=d&urec_id=342350&prec_id=749485 for viewing. The Standard Agreement presented, at the link above, is the contract proposed for execution. Exceptions and requested additions to the terms and conditions of the Standard Agreement, or the Proposer s inability or unwillingness to comply with any of the provisions of the Standard Agreement, must be declared in the proposal and will be considered as part of the proposal evaluation process. F. ORAL COMMUNICATIONS Any oral communications by the District s Contact Person or their Consultant concerning this RFP is not binding and shall in no way modify the RFP or the obligations of the District or the Proposer. G. AMENDMENTS TO REQUEST FOR PROPOSAL If it is necessary to make material changes to the RFP, the District or their Consultant, will post written RFP addenda at www.nlmusd.org/apps/pages/index.jsp?type=d&urec_id=342350&prec_id=749485, 72 hours prior to the proposal opening due date. H. AUTHORIZATION TO DO BUSINESS Proposer must be authorized to do business in California. If a Proposer is a sole proprietorship or partnership, the Proposer should furnish with the Proposal a copy of a current business license issued in California. If the Proposer is a corporation, it must be approved by the California Secretary of State. The Proposer should furnish the corporate number issued by the Secretary of State with the Proposal. I. PROPOSER S COST The cost of developing a proposal is the Proposer s responsibility and is not chargeable to the District. The District further reserves the right to reject any and all proposals. Proposer acknowledges the District s right to reject any and all proposals. J. SUBCONTRACTORS If a subcontractor will be used by the Proposer to comply with any portions of this RFP, that fact must be stated in the proposal. The names of the subcontractors and their duties shall be specified in the proposal. 2

K. WITHDRAWAL The Proposer may withdraw a proposal at any time prior to the opening by submitting a request in writing. Proposal irrevocable for 90 calendar days. A proposal is an irrevocable offer valid at the date scheduled for the proposal opening and for 90 calendar days thereafter. The Proposer is responsible for the accuracy of the proposal submitted and no allowance will be made for errors or price increases that the Proposer later alleges are retroactively applicable. L. NUMBER OF COPIES AND MAILING OF THE PROPOSAL Six (6) copies of the proposal shall be submitted in a sealed envelope/package and shall be sealed and marked accordingly: Proposal Responding to RFP No. 1516-2. One of the copies shall be unbound and marked Master and shall contain original signatures in all locations requiring a signature. The envelope/package containing the proposal will clearly identify the Proposer in the return address location. The sealed envelopes/packages will be addressed as follows: Norwalk-La Mirada Unified School District Attn: Cindy Jimenez, Director of Purchasing & Warehouse 12820 Pioneer Blvd., Norwalk, California 90650 II. GENERAL BACKGROUND Norwalk-La Mirada Unified School District ( District ) is a K-12 school district serving the cities of Norwalk and La Mirada. Currently the District offers their employees a choice of eleven medical insurance plans through the CalPERS health benefits program. Delta Dental has two options available: Delta Preferred (PPO) and Delta Care (HMO). Vision Service Plan (VSP) administers the vision program. Employee Assistance Service for Education (EASE) offers outpatient counseling for medical and nervous conditions. All employees are provided group life insurance through Mutual of Omaha. Supplemental life insurance is offered at the employee s expense, and Discovery Benefits administers a Section 125 Flexible Spending Account. Retiree benefits are available based on age and length of service. A full description of the District s benefit plans and Evidence of Coverage documents are available upon request. The District is seeking proposals from qualified Consultants to provide consulting services to enable the Health Benefits Committee to: Seek to lower the cost (or improve the value) of the premiums spent; Improve the stability of the Plans; 3

Proactively analyze the existing coverage and develop cost savings recommendations and projection of potential savings; Assure that the plan designs NLMUSD are offering are administratively feasible; Comply with the Affordable Care Act. Health Insurance Current enrollment is as follows: Employee & Retirees March 2016 Monthly Premium & Fees CalPERS Medical Plan 1,798 $ 1,676,824.60 Delta Preferred PPO 1,322 $ 171,999.59 Delta Care (PMI) HMO 279 $ 9,974.52 VSP 1,592 $ 55,258.62 Mutual of Omaha Group Life 1,725 $ 5,003.40 III. GENERAL SCOPE OF THE PROJECT Financial Provide cost analysis on benefit programs to project changes to programs and assist the Norwalk-La Mirada Unified School District with timely budget projections and analysis; Determine and recommend the most economical funding methods for benefits; Identify, investigate, analyze and implement efficiency measures that have the effect of reducing cost associated with employee benefit programs without reducing services to employees; Solicit bids from appropriate insurance markets, if requested by the District; Analyze factors driving plan costs and recommend opportunities to better manage cost, access and quality; Vendor Management Assist in selecting new vendor relationships; Perform market research for new carriers; Represent the District in negotiations with providers on all issues, including those related to premiums, benefit levels, coverage, and special terms and conditions; Monitor AM Best ratings of suppliers/carriers; Assist with billing issues and other vendor problems; 4

Troubleshoot problem claims issues; Coordinate with vendor to resolve issues on delivery, enrollment and other contract issues; Compliance Assist the District in complying with all related laws and regulations, and contract requirements Review all existing benefit plan documents to determine compliance with federal and state laws; Send bulletins on hot topics and legislative issues; Review all benefit procedures to ensure compliance with COBRA, FMLA, HIPAA etc; Consultation and assistance with IRS Sec. 125 plans, GASB 43/45 compliance, Medicare D and the Affordable Care Act; Help negotiate final contracts to ensure they conform to bid specifications; Review contracts and booklets; Reports and Communication Prepare and present reports to the District as requested; Review claim costs vs. paid premium and provide a monthly analysis; Compare the District s population to other similar groups, plans and design. Are the District s benefits, premiums, retention, reserves comparable to other school districts; Recommend and help develop enhancements and improvements for communications specific to the needs of the District and their employees; Assist with benefit communications to be disseminated to employees and retirees; Other Develop long-range employee benefit goals and strategies for the District; Research and advise the District of developments and trends in the market; Attend District Health Benefits Committee meetings and other benefits related meetings as necessary; Plan, conduct and participate in annual Wellness Faire; attend Wellness Committee meetings as scheduled; 5

Assist and support in creating annual open enrollment materials; Assist with online benefits administration system; Prepare a quarterly health benefits newsletter. IV. QUALIFICATIONS, RELATED EXPERIENCE AND REFERENCES This section should establish the ability of the Proposer to satisfactorily perform the required work by reasons of demonstrated competence in the services to be provided; the nature and relevance of similar work currently being performed or recently completed; competitive advantages over other firms in the same industry; Strength and stability as a business concern; and supportive client references. Furnish background information about your firm, including date of founding, legal form (corporation, partnership etc), number and location of offices; principal line of business, number of employees days/hours of operation and any other pertinent data. Describe your firm s most noteworthy qualifications for providing the required services to the District. Specifically highlight those qualifications that distinguish your firm from your competitors. Proposer shall list in the proposal at least four (4) references where the Proposer has provided similar services to Districts, the size of District, and who can independently evaluate the Proposer s expertise in this area. Proposer shall provide at least three (3) clients that have terminated your services in the last three years and the reason for the termination, similar to the size of Norwalk-La Mirada Unified School District. Furnish as an Appendix financial information that accurately describes the financial stability of your firm. Within the past five (5) years, have there been any significant developments in your organization, such as changes in ownership, personnel etc. If yes, please describe. What other business lines does your firm handle? Is any litigation pending against your firm? V. PROPOSED STAFFING AND PROJECT ORGANIZATION Overview: This section should discuss the staff of the proposing firm who would be assigned to work on the District s project. Identify the key personnel from your firm that would be assigned to the District s project. Include a brief description of their qualification, professional certification, job functions and office location(s). Designate a Project Manager who would provide day-to-day 6

direction of the required work and become the District s primary contact person. Furnish brief resumes for all key personnel and provide a simple organization chart for the District account. VI. WORK PLAN/TECHNICAL APPROACH Overview: This section should establish the Proposer s understanding of the District s objectives and requirements, demonstrates the Proposer s ability to meet those requirements, and outline clearly and concisely the plan for accomplishing the specified work. Describe how your firm would accomplish the work and satisfy the District s objectives described in this RFP. VII. SERVICE FEES Overview: This section should disclose all charges to be assessed to the District for the Scope of Work and declare the Proposer s preference for payment method and billing. Quote a total fixed flat annual fee for completing all requirements outlined in the Scope of Work. Quote a flat annual fee for years 2, 3, 4 and 5 should the contract be extended. The Proposer s only source of income, revenue or compensation in connection with the District s account is the total fixed flat annual fee paid to the Proposer by the District. Any other source of income, revenue, consideration, or compensation, including commissions and overrides received by the Proposer in connection to the District s account must be disclosed and reimbursed back to the District. VIII. PROPOSAL EVALUATION During the evaluation process, the District may be unable to determine a Proposer s ability to perform under the contract. The District has the option of requesting from the Proposer any additional information that is deemed necessary to determine the Proposer s ability. If such information is requested, the Proposer will be notified and will be permitted approximately five (5) working days to submit the information. A subcommittee of the District will review, analyze and evaluate all proposals. A decision will be made to conduct interviews with a few selected firms. Evaluation Criteria: 1. Qualifications, experience and references of Proposer; 2. Staffing and organization with respect to working with a joint labor management employee benefits committee; 3. Work plan; 4. Cost and Price; 7

IX. CLIENT REFERENCE LIST 5. Ability to carry out the scope of work; 6. Miscellaneous (exceptions/deviations, completeness of proposal, adherence to RFP instructions). Please provide a list of clients for whom you have provided employee benefit consulting including (see section IV also): Name of client Contact person and phone number Size of group Number of years with the client X. PROPOSAL REQUIREMENTS The proposal should be concise, well organized and demonstrate the responder s qualifications and experience delivering the services in this request. The proposal shall contain the legal name and address of the company, and the legal form of the company (Partnership, corporation etc). If the company is a wholly-owned subsidiary of a parent company, identify the parent company Xl. AWARD SELECTION Norwalk-La Mirada Unified School District will make a recommendation on award of an agreement. This RFP does not commit the District to award an agreement. The District reserves the right to waive information and irregularities in the proposals received. The District reserves the right to accept or reject any or all proposals or cancel the RFP in part or in its entirety. Xll. PROJECTED TIMELINE RFP issued: RFP s received by the District: April 14, 2016 at 2:00PM Proposal evaluated by the District: April 15, 2016 Finalist Presentations: April 29, 2016 Site Visits, if necessary, week of: May 9, 2016 Recommended selection of Consulting Firm: May 27, 2016 District Board Approval: June 27, 2016 8

TERMS AND CONDITIONS 1. TERM: The period of this agreement shall be from July 1, 2016 to June 30, 2017, inclusive with four (4) one-year options to extend. 2. SERVICES: The Contractor will provide the following services: Provide professional services in marketing employee benefit programs and consulting services; conduct benefits compliance reviews; and other consulting services as identified in the Request for Proposal for Employee Benefit Insurance Broker and Consulting Services. 3. INCORPORATION OF RESPONSE TO REQUEST FOR PROPOSALS: The Contractor s response to the Request for Proposals for Employee Benefits Insurance Broker and Consulting Services forms a part of the agreement. In case of any conflict between the general Contract provisions and the Contractor s response to the Request for Proposals for Employee Benefits Insurance Broker and Consulting Services, the District s terms and conditions shall be followed. 4. PAYMENT: Payment shall be based on submission of invoices, in duplicate, to the following address: Norwalk-La Mirada Unified School District Attn: Benefits Technician Risk/Safety Management Department 12820 Pioneer Blvd. Norwalk, CA 90650 Each invoice shall show the total amount payable, the itemized list of services rendered, the legal name and complete address of the Contractor. In the event of termination of this agreement, the Contractor will invoice the District for all services rendered up to the effective date of termination and the District will pay the Contractor the cost of all services rendered. 5. INDEPENDENT CONTRACTOR: While performing services hereunder, the Contractor is an independent contractor and not an officer, agent, or employee of the District. 6. CONFLICT OF INTEREST: The Contractor shall disclose all conflict of interest in connection with this contract. The District reserves the right, at its sole discretion, to determine the potential of the conflict of interest and whether the conflict represents grounds for immediate termination of this contract. 7. DISCLOSURE: Except for the service fees paid directly by the District, the Contractor shall disclose to the District any and all sources of income, revenue or compensation earned or received by the Contractor in connection with this contract. Any sources of income, revenue, or compensation, including commissions and overrides received by the Contractor and not paid by the District in connection with this contract must be disclosed and reimbursed to the District. 8. NON-LIABILITY OF DISTRICT: The District shall not be liable to the Contractor for personal injury or property damage sustained in the performance of this contact, however caused. 9. DISCONTINUANCE OF SERVICE: The District reserves the right to discontinue service of all or any portion of the contract for any reason. 10. DEFAULT BY CONTRACTOR: If the Contractor at any time during the period of the contract, fails to perform satisfactory service called for under the contract, the District may, without notice, or 9

demand, cancel the contract in its entirety or in part; and may, whether or not the contract is canceled in whole or in part; procure services elsewhere without notice to the Contractor. 11. SEVERABILITY AND APPLICABLE LAW: Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if such provisions of this agreement shall be held invalid under applicable law, such provisions shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this agreement, unless such invalidity would defeat the purpose of this agreement or the intent of the parties. 12. INDEMNIFICATION: The Contractor shall hold harmless, defend and indemnify the District, its Board, officers, employees, and representative from any and all claims, suits, costs, and actions arising out of, incidental to, or relating to this agreement. This indemnity provision shall survive and remain enforceable after the expiration or termination of this agreement. This indemnity provision, however, is not intended to apply to claims against the District arising out of the District s sole negligence. 13. INSURANCE: The Contractor shall, as a material condition of this agreement, procure and maintain at its sole expense, for the duration of this agreement insurance coverage as outlined below: Contractor shall furnish to the District with a Certificate of Insurance or other such verification as may be required by the District. The District reserves the right to require complete, certified copies of the insurance policy. Coverage shall be placed with an insurer admitted in the state of California and having a Best s rating of not less than A-. The policy shall be amended to waive all rights of subrogation against the District, and to provide that coverage will not be suspended, voided, canceled, or reduced in any way except after thirty (30) days written notice by certified mail, return receipt requested is given to the District. Contractor s insurance shall be primary and non-contributory as respects any insurance maintained by the District. COMMERCIAL GENERAL LIABILITY coverage occurrence form only to include bodily injury and property damage of not less than one million dollars ($1,000,000) per occurrence and aggregate. The District shall be named as an additional insured. BUSINESS AUTOMOBILE LIABILITY COVERAGE covering owned, non-owned, and hired automobiles with a combined single limit of not less than one million dollars ($1,000.000) per accident and aggregate. The District shall be named as an additional insured. PROFESSIONAL LIABILITY coverage of not less than two million dollars ($2,000.000) per occurrence and aggregate. If the policy is written on a claims made form, such insurance shall be endorsed to provide an extended reporting period of not less than two (2) years following the termination of this agreement. WORKERS COMPENSATION insurance with limits as required by the labor Code of the State of California and Employers Liability insurance limits of one million dollars ($1,000,000) per accident. By signing this agreement, Contractor hereby certifies that it is aware of the Provisions of Section 3700 et.seq., of the Labor Code of the State of California that requires every employer to be insured against liability for workers compensation or to undertake self-insurance in accordance with the provisions of that code, and will comply with such provisions before commencing any work with the District. 14. NON-DISCRIMINATION: The Contractor hereby certifies that in performing work or providing services to the District, there shall be no discrimination in its hiring or employment practices because of age, sex, race, color, ancestry, national origin, religious creed, physical handicap, medical condition, marital status, or sexual preference, except as provided for in Section 12940 of the California Government Code. The Contractor shall comply with applicable federal and California anti- 10

discrimination laws, including but not limited to the California Fair Employment and Housing Act, beginning with Section 12900 of the California Government Code. 15. AMENDMENT: All modifications and amendments to this agreement shall be in writing and signed by the authorized representatives of the District and the Contractor. 16. ASSIGNMENT: Neither party may assign this agreement or any part thereof without the written consent of the other party. 17. TERMINATION: This agreement may be terminated by the District upon thirty (30) days prior written notice of termination to the Contractor. 18. GOVERNING LAW: This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California. The exclusive jurisdiction for any legal proceeding regarding this Agreement shall be the courts of the State of California, and the parties hereto expressly submit to the jurisdiction of said courts. 19. ATTORNEY FEES: If any legal action is brought to enforce or interpret the provisions of this Agreement, each party shall bear its own attorneys fees and court costs. END OF DOCUMENT 11