REQUEST FOR PROPOSAL RFP # 05-16-17 Section 125 Cafeteria Plan FOR THE CITY OF VALDOSTA REQUESTED BY PURCHASING DEPARTMENT 216 E. CENTRAL AVE. P.O. BOX 1125 VALDOSTA, GA 31603-1125 PHONE 229-259-3525 RELEASE DATE: September 23, 2016 PROPOSAL DUE DATE: October 21, 2016 TIME: 11:00 AM EST
NOTICE TO PROPOSERS 1. Any prices offered by proposers on any item or service offered to the City of Valdosta shall be the price effective at the date of delivery. 2. No delivery date of ASAP (As Soon As Possible) shall be considered acceptable on items that have a maximum delivery date listed in the specifications. 3. The City of Valdosta reserves the right to accept any or all items where maximum delivery date, as listed in the specifications if not met by proposer. 4. Signature below of authorized agent for proposer shall constitute recognition and acceptance of all conditions of the sale as listed above. Company Name Authorized Agent
GENERAL SPECIFICATIONS It is the intent of these specifications and scope of work to furnish the City of Valdosta with the following requisitioned equipment or services, according to the attached. It is clearly understood that the following are minimum specifications and are made in order to show the exact specifications of the equipment or services proposed. The City of Valdosta reserves the right to accept any or all conditions or to choose the proposer considered to be in their best interest. The final decision will be made by the City of Valdosta Mayor and Council. NO RFP WILL BE CONSIDERED IF RECEIVED AFTER THE DATE AND TIME SPECIFIED. THE CITY OF VALDOSTA CISCO PHONE SYSTEM CLOCK WILL BE USED AS THE OFFICIAL TIME STAMP. Please put the RFP No. on the outside of your return envelope. FUND APPORPRIATION CONTINGENCY The proposer and the City recognize that the continuation of any contract after the close of any given fiscal year of the City of Valdosta shall be subject to the approval of the budget of the City of Valdosta providing the contract is an approved expenditure. The City does not guarantee that the expenditure will be actually adopted each year by Mayor and Council. INDEMNIFY AND HOLD HARMLESS Contractor further agrees to indemnify, defend and hold harmless the City against (1) any and all losses, claims, damages, law suits and liabilities for any personal injury, death or property damage arising out of or as a consequence of any work performed pursuant to this contract, (2) any and all expenses related to claims or lawsuits resulting from the above including courts cost and attorney fees, (3) any and all penalties and damages incurred by reason of contractor s failure to comply with any applicable laws, ordinances or regulations. Any court action or litigation will be performed in the State of Georgia.
INSTRUCTIONS TO PROPOSERS 1. Proposals must be enclosed in a sealed plain envelope, with the RFP number written on the outside and endorsed with the title of the proposal, and must be filed with the Purchasing Agent of the City of Valdosta, located at 216 E. Central Ave., 3 rd floor. In the event you choose to mail your proposal, it should be mailed to City of Valdosta Purchasing, Greg Brown, P.A., P.O. Box 1125, Valdosta, Ga. 31603. 2. No proposer will be allowed to withdraw his proposal for any reason whatsoever after the RFP s have been opened. 3. The specifications and scope of work following represent the minimum general size, weight, capacity and performance characteristics desired in the equipment or services to be purchased. These requirements are not intended to prevent obtaining fair prices or to eliminate competition, but to insure, if possible, that all proposals submitted shall not be subject to correction or alteration after the RFP has been filed, opened, and publicly read. In view of an unusually wide disparity in details of design and manufacture, complete descriptive literature and manufacturer s specifications must be submitted on each type of equipment offered. The City of Valdosta reserves the right to evaluate any or all RFP s, particularly where there is a range in specifications. Special consideration will be given to the ready availability of repair parts and service. 4. Federal or State taxes are not applicable to Georgia Municipalities under the United States Code Title 26 and Georgia Exemption Certificate Number 3-465-686-300-1. 5. It is expressly understood by the proposer that written notice of the award or purchase order the City of Valdosta will constitute an agreement and consummate the transaction and will serve together with the proposal, the advertisement, these instructions and the detailed specifications, as the entire form of contract between the parties. 6. The proposer agrees that the City of Valdosta reserves the right to reject any or all proposals, or to accept the part of the RFP considered in the best interest of the City. 7. Specifications and the scope of work referred are minimum so therefore unless otherwise indicated by the proposer, the City will assume proposals meet or exceed all specifications. 8. The names of a certain brand, make or definite specifications are to denote quality standard of the article desired, but do not restrict proposers to the specific brand, make or manufacturer named; it is to set forth and convey to prospective proposers the general style, type, character and quality of the article desired. 9. The City of Valdosta reserves the right to reject all RFP s as appears in its own best interest and to waive technicalities.
SECTION 125 CAFETERIA PLAN I. Introduction IRS Section 125 permits employers to structure a benefits program allowing employees to have the option of designating pre-tax dollars to pay for certain qualified benefits. The City of Valdosta is requesting proposals from qualified vendors for a model IRS Section 125 Plan and implementation of the plan for employees of the City of Valdosta. The plan should follow the contents described in this Request for Proposal. Plan year begins January 1, 2017 and expires on December 31, 2018 or after formal award by Mayor and Council. Two (2), one year renewal periods will be offered if both parties are in agreement and pricing does not increase. This contract can be cancelled with 90 days written notice to the vendor by the City. Open Enrollment will have to be performed only after formal award made by the City of Valdosta Mayor and Council. Open enrollment will occur at a predetermined time as specified by the Human Resources Department which is typically during the month(s) of November/December. The City reserves the right to change the dates and times as necessary at no cost to the City. This plan will be offered to full-time City employees in all departments. Employees eligible for this plan are approximately 604. II. General Description of the Program This program will be premium only to include those premiums which qualify for pre-tax treatment and which are paid for on a voluntary payroll deduction basis. The successful vendor must provide to the City of Valdosta employees the option of the following core policies on a voluntary basis only: Short Term Disability Cancer Accidental Injury Universal Life Term Life Critical Illness/Specified Diseases Vision Hospital Indemnity III. Provider Qualifications Organizations will be considered on the basis of premium charges to employees, past experience relative to similar Section 125 Plans, overall record of service, ability to provide enrollment data and changes, and financial stability. Any insurance companies submitting bids should have at least an A (Excellent) rating by the A.M. Best Company.
Organizations submitting proposals must be legally qualified and licensed to do business in the State of Georgia. IV. Analysis of Proposal Proposals will be evaluated based on the following criteria: Schedule of benefits offered and premiums charged to employees for each of the core policies listed in section II. The model plan design. Implementation Program. Experience of organizations with Section 125 Experience of the organization in providing service to similar sized accounts. Financial stability of the organization. V. Format of Proposal The proposal should include five copies (The original and four copies) of your proposal in a sealed envelope addressed to: City of Valdosta Attention: Mr. Greg Brown, Purchasing Agent 216 East Central Avenue, 3rd Floor Valdosta, GA 31601 The proposals should be mailed or delivered to the above address no later than October 21, 2016, at 11:00 AM EST. The proposal should be marked on the outside RFP # 05-16-17, Section 125 Proposal for City of Valdosta. The City of Valdosta reserves the right to reject any and all proposals. The proposal must comply with the RFP in its entirety. If for any reason there is a need to deviate from the RFP, indicate the reason in detail. Other than minor deviations no alternate proposals will be considered. Sections I through V of this RFP provide information about the Section 125 Plan that the City desires. These sections also describe the criteria the City will use in evaluating the proposal and the vendor. Section VI defines what should be included in the proposal. In providing the information and material please keep it in the order in which it is requested in Section VI. Section VII lists the services to be provided to the City by the vendor. Section VIII describes the method of the payment by the City to the vendor. An officer of the vendor should sign the Agreement form (Section IX) and submit it as part of the proposal. VI. Contents of Proposal The proposal must include the information and material requested in this section.
A. Model Plan and Implementation B. Questions C. Other Data A. Model Plan and Implementation 1. Describe in detail the model Section 125 Plan proposed. Provide necessary information on how each aspect of the program will work. 2. Provide a complete explanation of how the plan will be implemented. Describe the initial enrollment process fully. How will it be achieved? What will it consist of? Who will conduct the enrollment process? Be specific. 3. Describe what information will be provided to employees to help them understand and evaluate the Section 125 Program. Will computerized proposals be made available to each employee? 4. Describe in detail the enrollment process for new employees. How will it be achieved and by whom? 5. With the proposal include any forms, documents, and brochures that will be provided to the City of Valdosta relating to the model plan, implementation, enrollment changes and administration. B. Questions. Provide complete details to each of the following questions. 1. Describe your experience with and administering Section 125 Plans? 2. Will toll-free access be made available to City of Valdosta employees and staff when questions and issues arise? Describe your customer service program in detail. Are you capable of conducting an electronic enrollment? 3. How many permanent full-time local agents will be assigned to cover initial and ongoing enrollment and account service? 4. Will there be a minimum number of participants required in the Section 125 Plan or any of the policies? If so, how many? 5. Describe the types of reports available on a monthly basis that will allow the City of Valdosta to track the number of employees enrolled in each product and the corresponding deductions being taken. 6. How are product and premium changes communicated to employees and the City s Human Resources Office? 7. What is your turn around time on responding to claims? 8. Do you have the ability to disburse payments to multiple companies for the City of Valdosta?
C. Other Data. To be complete, the proposal must include the following. 1. A copy of the agency s or plan administrator s latest audited financial report. 2. A copy of the latest rating and commentary by the A.M. Best Company. 3. A list of at least five (5) accounts in which the vendor has provided services similar to those requested in this RFP. 4. Information about other city and county governments, or school boards which insurer currently provide services. VII. Service rendered by the provider The provider must complete, file, and provide fees for filing if outsourced for all documents pertaining to the annual administration of the City s Premium Only Plan (POP). The provider selected must comply with all required IRS regulations, provide Set-up, Plan Document, Copy of IRS supporting regulations pertaining to the plan, enrollment service, all necessary forms, complete IRS Form 5500 and 1099 as requested by IRS along with any other forms that might be required. The forms must be submitted within the time frame required by the IRS and the provider must be responsible for any penalty or late charge imposed upon the City of Valdosta. The provider must furnish to the City master policies for all insurance coverage purchased by City personnel. Open enrollment shall be completed annually with employee changes becoming effective January 1 of each calendar year. VIII. Method of payment by the City of Valdosta City of Valdosta will issue a check for the total amount of bi-weekly payroll deductions to the vendor as appears on the bi-weekly payroll deduction register and attach a copy of the register for reconciliation purposes. The vendor selected for the Section 125 Plan will be the only company authorized to sell supplemental insurance to employees of the City of Valdosta with the exception of the City s 457 Deferred Compensation Plans and employer provided life insurance options, which may include voluntary employee participation. The city currently offers employees a paid long term disability plan. IX. Census Information Points from 0 5 will be assigned to the core policies questionnaires as listed below that are listed in Section II of the RFP with 0 being low and 5 being exceptional. Once this is done by the evaluation committee, scores will be totaled up for ranking. The top numerical ranking does not necessarily guarantee the City will contract with your company as a successful presentation or new initiative could move a company higher up in the ranking outside of just the proposal. The City reserves the right to act in our best interest without regard to scoring sheets. The top rated firms may be required to conduct a presentation in support of their proposal at their own expense.
APPOXIMATE AGE BREAKDOWN OF CITY OF VALDOSTA EMPLOYEES AGE: 20-30 31-40 41-50 51-65 over 65 Total EMPLOYEES: 99 141 150 149 7 546 Current Product Distribution: Product # Employees Cancer 134 Critical Illness 98 Universal Life 157 Term Life 67 Short Term Disability 99 Accidental 216 Hospital Indemnity 39 The numbers above are not guaranteed and may vary from year to year. Cancer Questionnaire 1. Which diseases are covered? 2. Amount of wellness benefit 3. Amount of initial diagnosis payment: Adult Child 4. Additional diagnosis riders available: 5. Amount paid for outpatient surgery: Inpatient 6. Hospitalization amount per day: 7. Amount of chemotherapy coverage: 8. Amount of radiation therapy coverage: 9. Amount of blood/plasma/platelet coverage: 10. Amount paid for new/experimental drug therapy: 11. Amount paid for stem cell transplant: 12. Amount of ICU confinement: 13. Portable with no rate increase: With rate increase: 14. Bi-weekly Premiums: 15. Rate Guarantee period:
Critical Illness Questionnaire 1. Guaranteed Issue? Any age limit? 2. Lump sum benefit levels: 3. Categories of Illness for which benefits paid? 4. Amount of wellness benefit: 5. Reoccurrence benefit available? 6. Portable with no rate increase: Rate increase: 7. Rate Guarantee period: 8. Bi-weekly premiums: Universal Life Questionnaire 1. Permanent coverage? 2. Rate guarantee until age: 3. Dependent coverage available: 4. Portable with rate increase: No increase: 5. Bi-weekly premiums: 6. Rate Guarantee period: Term Life Questionnaire 1. Guaranteed issue? 2. Guaranteed term period: 3. Dependent coverage available? 4. Portable with conversion rate: No increase: 5. Rate Guarantee period: 6. Bi-weekly premiums:
Accident Questionnaire 1. Coverage on and off job? 2. Amount and length of coverage: 3. Amount of coverage for medical expenses: 4. Amount of hospital confinement coverage: 5. Portable with conversion rate: No rate increase: 6. Rate Guarantee period: 7. Bi-weekly premiums: Hospital Indemnity Questionnaire 1. Guaranteed issue? 2. Hospital confinement benefits: 3. Inpatient or outpatient benefits: 4. Amount paid for doctor s office visits: Frequency: 5. Portable with conversion rate: No rate: 6. Rate Guarantee period: 7. Bi-weekly premiums: Short Term Disability Questionnaire 1. Percentage of income replacement: 2. Covers on and off job? 3. Maximum benefit paid: 4. Benefit waiting period: 5. Multiple elimination periods and benefit levels available? 6. Rate Guarantee period: 7. Bi-weekly premiums per $100 of payroll:
Vision Questionnaire 1. Eye exam co-pay amount: 2. Lenses co-pay: Any allowances? 3. Frame co-pay: Any allowances? 4. Contact lens co-pay: Any allowances: 5. Laser vision benefit: 6. Multiple eye glass benefit: 7. Is there a network available? 8. Bi-weekly premiums: 9. Rate Guarantee period:
AGREEMENT DATE: September 23, 2016 TO: RE: City of Valdosta Purchasing Department City of Valdosta Section 125 Cafeteria Plan RFP For clarification or additional details contact in writing via e-mail: L. Mark Barber, Assistant City Manager E-mail: mbarber@valdostacity.com AND Renassa J. Small, Human Resources Director E-mail: rsmall@valdostacity.com All inquiries must be submitted in an email by 2:00 PM EST on October 7, 2016.
VENDOR INFORMATTION The undersigned offers and agrees to furnish the service and material described in the enclosed proposal at no cost to the City of Valdosta. Date: Company Name: Address: Phone Number: Signature: Fax: Title: Printed Name: Email: E-Verify Number: Have you (company) or are you currently debarred from performing any work for any governmental entity? Yes No Include a W9 with your proposal. Include your E-Verify form