CITY OF CHANDLER

NOTICE OF REQUEST FOR PROPOSAL HR2-948-4465

SOLICITATION TITLE: BASIC AND VOLUNTARY LIFE AND

ACCIDENTAL DEATH AND DISMEMBERMENT

INSURANCE

SOLICITATION NO.: HR2-948-4465

PROPOSAL DUE DATE: February 22, 2022

PROPOSAL DUE TIME: 4:00 pm local Arizona time

SUBMIT TO: Via email to:

christina.pryor@chandleraz.gov

Email and attachments may not exceed 50 MB

PRE-PROPOSAL CONFERENCE: February 1, 2022

10:00 am local Arizona time

CONFERENCE ATTENDANCE: Dial in number: 415-655-0001

Meeting number: 2597 531 2912

CONTACT: Christina Pryor, CPPO, CPPB

Purchasing Manager

Phone: (480) 782-2403

Email: christina.pryor@chandleraz.gov

ISSUE DATE: January 20, 2022

Proposals for the commodity or service specified will be received by the Purchasing Division, City of

Chandler, via email to christina.pryor@chandleraz.gov, until the time and date cited above.

Proposals must be received in the email inbox of the responsible Procurement Officer on or prior to the exact time and date indicated above.

Instructions for preparing proposals are provided on the following pages.

RFP Summary: The City is requesting proposals from qualified offerors to provide the City with basic and voluntary life and accidental death and dismemberment insurance pursuant to the attached agreement.

INFORMATION AND INSTRUCTIONS TO PROPOSERS

1. Vendor Registration. Proposers must register via the on-line vendor registration system to automatically receive notification of addenda to this solicitation or notice of other solicitation opportunities. Visit https://www.chandleraz.gov/business/vendor-services/purchasing, select Vendor Registration and Management.

2. Addendum. This RFP may only be modified by a written addendum. Proposers are responsible for obtaining all addenda. A Proposer must not rely on verbal responses to inquiries. A verbal reply to an inquiry does not constitute a modification of the solicitation.

3. Late Proposals. Late proposals will not be accepted. It is the sole responsibility of the

Proposer to ensure that its proposal is received at or prior to the exact date and time indicated on the Notice Page. The time stamp of the City’s email system will govern timeliness of submission.

4. Cost of Proposal Preparation. The City will not reimburse any Proposer the cost of responding to a solicitation.

5. Duty to Examine. It is the responsibility of each Proposer to examine the entire solicitation, seek clarification and make inquiries, and examine its proposal for accuracy before submitting it. Lack of care in preparing a proposal will not be grounds for modifying or withdrawing the proposal after the due date and time, nor will it give rise to any claim.

6. Inquiries. Any inquiry related to this solicitation, including any requests for or inquiries regarding standards referenced in the solicitation must be directed solely to the

Procurement Officer listed on the cover page of the solicitation. Proposers will not contact or direct inquiries concerning this solicitation to any other City employee unless the solicitation specifically identifies a person other than the Procurement Officer as a contact.

All inquiries, except those at the Pre-Proposal Conference, should be submitted in writing and refer to the appropriate solicitation number, page and paragraph. The City will consider the relevancy of all inquiries but is not required to respond in writing.

Any inquiry must be submitted as soon as possible and should be submitted at least ten days before the proposal due date and time for review and determination by City. Failure to do so may result in the inquiry not being addressed in a solicitation addendum.

7. Remote Attendance at Pre-Proposal Conference. The City may offer remote attendance at the Pre-Proposal Conference via a City-hosted dial-in meeting. If remote attendance is offered, meeting details will be provided on the Notice Page. Interested Offerors attending remotely may be required to register and provide, at a minimum, attendee name and company name.

Remote attendance is provided as a courtesy. Attendees are responsible for all aspects of their attendance. The City will not provide technical support for remote attendance.

8. Exceptions to the Solicitation. Any exception to the solicitation must be submitted as soon https://www.chandleraz.gov/business/vendor-services/purchasing as possible and should be submitted at least ten days before the proposal due date and time for review and determination by City. Failure to do so may result in the exception not being addressed in a solicitation addendum.

9. Proposal Amendment or Withdrawal. A proposal may be withdrawn at any time before the due date and time. A proposal may not be amended or withdrawn after the due date and time except as otherwise provided by applicable law.

10. Unit Price Prevails. In the case of discrepancy between the unit price or rate and the extension of that unit price or rate, the unit price or rate will govern.

11. Non-Collusion and Non-Discrimination. By signing and submitting the proposal, the

Proposer certifies that the Proposer did not engage in collusion or other anti-competitive practices in connection with the preparation or submission of its proposal; and the Proposer does not discriminate against any employee or applicant for employment or person to whom it provides services because of race, color, religion, age, sex, national origin, or disability, and that it complies with all applicable Federal, state and local laws and executive orders regarding employment.

14. Waiver and Rejection Rights. The City reserves the right to waive any immaterial defect or informality; or reject any or all proposals, or portions thereof; or reissue the Request for

Proposal; and will be the sole judge of the merits of the proposals received.

15. Proposal Opening. Proposals will be opened as indicated on the Notice Page, unless amended in writing by the Procurement Officer issuing the solicitation. The name of each

Proposer will be public information following the proposal opening. No other information will be publicly disclosed at that time.

16. Public Record. All proposals submitted in response to this solicitation and all evaluation related records will become property of City and will become a matter of public record for review, subsequent to publication by the City of the proposed award in the agenda for the

City Council Meeting, or upon award by the appropriate approving authority or as otherwise required by law.

17. Confidential Information. A request for nondisclosure of data such as trade secrets or other proprietary information must be submitted with the proposal and must contain the basis for the request. Any information included in the request must be submitted as a separate file. Price is not confidential and will not be withheld. A blanket statement of confidentiality will not be considered. It is the Proposer’s responsibility to identify and segregate the information in the proposal provided to the City.

The City will review all requests for confidentiality and may approve or deny all or portions of the request. Information denied confidentiality will be released as public information. In the event of a public records request for information granted confidentiality, the City will endeavor provide 48-hours’ notice before releasing materials in order for the Proposer to apply for a court order blocking the release of the information.

18. Proposal Acceptance Period. All proposals will remain valid for 120 days after the day of the opening of proposals. The City may, at its sole discretion, release any proposal and return any security (as applicable) prior to that date. No Proposer may withdraw a proposal during this period without written permission from the City. Should any Proposer refuse to enter into an agreement, under the terms and conditions of the procurement, the City may retain any security (as applicable) as liquidated damages.

19. Discussions with Proposers and Revisions to Proposals. Discussions and additional investigations may be conducted with responsible Proposers who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Proposers will be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final proposals.

In conducting discussions, there will be no disclosure of any information derived from proposals submitted by competing Proposers. The purposes of such discussions will be to:

determine in greater detail such Proposer’s qualifications; explore with the Proposer the scope and nature of the project, the Proposer’s proposed method of performance, and the relative utility of alternate methods of approach; determine that the Proposer will make available the necessary personnel and facilities to perform within the required time; agreeing upon compensation, which is fair and reasonable, taking into account the estimated value of the required services, and the scope, complexity and nature of such services.

20. Clarifications. City reserves the right to obtain Proposer clarifications where necessary to arrive at full and complete understanding of Proposer’s product, service, and solicitation response. Clarification means a communication with a Proposer for the purpose of eliminating ambiguities in the proposal and does not give Proposer an opportunity to revise or modify its proposal.

21. Agreement Negotiations. City reserves the right to conduct exclusive or concurrent negotiations with responsible Proposer(s) for the purpose of agreeing to the conditions, terms and price of the proposed agreement unless prohibited. Proposers will be accorded fair and equal treatment in conducting negotiations and there will be no disclosure of any information derived from proposals submitted by competing Proposers. Exclusive or concurrent negotiations will not constitute an agreement award nor will it confer any property rights to the successful Proposer. In the event the City deems that negotiations are not progressing, the City may formally terminate these negotiations and may enter into subsequent concurrent or exclusive negotiations with the next most qualified Proposer(s).

22. Payment. Proposers may agree to accept the City Procurement Card (Mastercard) for payment. Proposers should indicate on the Proposer Information and Offer Section of this

RFP, their willingness to accept City Procurement Card payments. The inability to accept payment by City Procurement Card will not disqualify a Proposer’s response.

Proposers may also agree to accept other traditional payment methods, including automated clearinghouse (ACH). Payment terms for traditional payment methods are Net

30 upon receipt of an accurate invoice. Proposers may propose additional discounts for early payment within their proposal.

23. Local Business Consideration. Where the Chandler Administrative Regulation MS-16 Local

Business Consideration is applicable, any applicable Chandler Transaction Privilege Tax will be deducted from the net cost for the purpose of evaluation.

24. Protests. A protest must be in writing and be filed with the Purchasing Division. To be considered filed, a protest must be submitted via email to the Procurement Officer identified on the Notice Page.

A protest of a solicitation must be received not less than five days before the solicitation opening date.

A protest of a proposed award requiring City Council approval must be filed within five calendar days of the first posting of the award recommendation. Award recommendations are posted on the Purchasing web site at www.chandleraz.gov/purchasing and/or the City

Clerk web site at http://www.chandleraz.gov/default.aspx?pageid=1007 If the protest due date occurs on a weekend or holiday, the protest must be filed the next business day.

A protest of an award not requiring City Council approval (less than $50,000 or $30,000 for Consultants) must be submitted within ten calendar days of the date the protester knows or should have known the basis of the protest.

A protest must include:

• The name, address and telephone number of the protester;

• The signature of the protester or its representative;

• Identification of the project and the solicitation or agreement number;

• A detailed statement of the legal and factual grounds of the protest including copies of relevant documents; and the form of relief requested.

The City will review the protest and may issue a written response.

25. Award. Unless otherwise provided in this solicitation, the City reserves the right to make multiple awards, award by item, group or as a total, as is deemed most advantageous to the

City.

26. Execution of Agreement. Within ten days of notice that Proposer is the recommended awardee, Proposer will execute and return the Agreement to Purchasing.

27. Persons with Disabilities. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Procurement Officer.

Requests must be made as early as possible to allow time to arrange the accommodation.

http://www.chandleraz.gov/purchasing http://www.chandleraz.gov/default.aspx?pageid=1007

28. RFP Exhibits. Proposers must request to receive the Exhibits to this RFP. Contact Jeanna

Carlton with Segal at jcarlton@segalco.com for the attachments and exhibits not contained in this document. Since some of this information contains confidential data, Proposers will be required to have a current executed Confidentiality Agreement or NDA on file with Segal to receive the documents. If a Proposer does not have a current executed Confidentiality

Agreement or NDA on file with Segal, the Proposer will be sent the necessary form via secure email service for completion and submission before the data will be released.

RFP EXHIBIT A – Proposal Requirements, Proposal Evaluation Criteria, Questionnaire fillable Word Document

EXHIBIT B – Financial Workbook

EXHIBIT C – Claims Experience Reports and Data

EXHIBIT D – Census including DOB, Zip Code, Gender, Class and Employment Status (i.e., Active or Retiree)

EXHIBIT E – Benefit Booklets and Benefit Summaries

E1 – Active Employee Life Certificate

E2 – Retiree Life Certificate

EXHIBIT F - Open Enrollment Guide mailto:jcarlton@segalco.com

PROPOSAL CONTENT

Proposers must submit one copy of the proposal via email to the responsible Procurement Officer.

The REQUEST FOR PROPOSAL TITLE, NUMBER AND OFFEROR NAME should be in the subject line of the email. Emails and attachments may not exceed 50 MB in size. Attachments should be in

.pdf format and named with the RFP number and Offeror name. A single email is preferred, however multiple emails are permissible provided that all are received prior to the due date and time.

Proposals should include the following information in the order listed:

1. Completed Proposer Information and Offer Section. Complete and submit the Proposer

Information and Offer Section in the format provided in this solicitation. Failure to do so may result in the proposal being rejected as non-responsive. The Proposer Information and Offer

Section within the solicitation must include a signature by a person authorized to sign the proposal. The signature must signify the Proposer’s intent to be bound by its Proposal and the terms of the solicitation and that the information provided is true, accurate and complete.

2. Responses to Proposal Evaluation Criteria. Submit information requested in the

Evaluation Criteria Section provided in this solicitation. Forms, such as pricing forms, must be completed in the format provided in the solicitation. Failure to do so may result in the proposal being rejected as non-responsive.

3. Exceptions to Agreement. The City’s standard Agreement is included as a part of this solicitation. By submitting a proposal, the Proposer acknowledges having reviewed the

Agreement. Any exceptions to the Scope of Work or Specifications or to Agreement terms and conditions must be included with the proposal and be clearly identified. Exceptions not included in the proposal may not be introduced in the future. Any exceptions to the Scope of Work, Specifications or the Agreement language will be considered and included in City’s evaluation of the proposal. A proposal that takes exception to a material requirement of any part of the Scope of Work, Specifications or Agreement language may be rejected as non-responsive.

4. Disclosure. If the Proposer has been debarred, suspended or otherwise lawfully precluded from participating in any public procurement activity, including being disapproved as a subcontractor with any Federal, state or local government, or if any such preclusion is currently pending, the Proposer must make disclosure. In the proposal, the Proposer must include information including the name and address of the governmental entity, the effective date and duration of this suspension or debarment, and the relevant circumstances. The City reserves the right to reject a proposal received from a Proposer, including each of its principals, who is currently debarred, suspended or otherwise lawfully prohibited from any public procurement activity.

PROPOSER INFORMATION AND OFFER SECTION

Company Name

Business Type (Corporation, Partnership, etc.)

State of Incorporation (if applicable)

Federal Tax I.D. No.

Address

City, State, Zip

Authorized Signature

Name and Title

Contact Name

Title

Telephone

E-mail

Chandler Transaction Privilege Tax (TPT)

No. (if applicable) Date of issue:

Is proposed purchase subject to TPT? _______yes _______no

Will you accept a City Procurement Card

(MasterCard) for payment of invoices? _______yes _______no

If you accept a MasterCard for payment, do you charge a fee?

_______yes _______no If yes, what is the fee?______

Will you accept automated clearinghouse

(ACH) for payment of invoices? _______yes _______no

Prompt Payment Terms Offered _______% Net _________ days

Disclosure of Debarment or Suspension

_______yes _______no

(If yes, please attach description of the circumstances)

Exceptions Taken

_______yes _______no

(If yes, please attach a clearly identified section)

Date Addendum #1

Acknowledged/Received

Date Addendum #2

Acknowledged/Received

Date Addendum #3

Acknowledged/Received

SCHEDULE OF EVENTS

The following dates are for informational purposes only and are subject to change.

Event Date

Issue Date of RFP January 20, 2022

Pre-Proposal Conference February 1, 2022

Questions about RFP due by January 31, 2022 by 12:00 p.m.

Response to Proposer Questions by February 8, 2022 by Close of Business

Proposal Due Date and Time February 22, 2022 at 4:00 p.m.

Proposal Contract Award May, 2022

Contract Start Date January 1, 2023

INTRODUCTION AND BACKGROUND INFORMATION

INTRODUCTION

The City of Chandler (the “City”) is soliciting proposals from qualified firms to provide basic and voluntary life insurance, basic and voluntary accidental death and dismemberment (AD&D) insurance as applicable to eligible employees and retirees, and their dependents. The City is requesting proposals for “bundled” services, that is, for the services to be provided or secured by a single Contractor. The City of Chandler is now accepting proposals for the services and requirements stated in this RFP.

The City reserves the right, during the term of this contract and in subsequent renewal years, to change the rate structure, plan designs offered, or to explore any other options available in the future.

CITY OF CHANDLER BACKGROUND

The City of Chandler is one of the fastest growing communities in the nation with a current population of approximately 270,000. More information about the City can be found at www.chandleraz.gov.

The City of Chandler provides basic life and AD&D benefits to 1,614 employees and 590 retirees for a grand total of 2,204. There are approximately 792 employees, 413 spouses and 211 child contracts on the voluntary life and AD&D. The City also has 4 grandfathered employees whose dependents have coverage that equals more than 100% of the employee’s voluntary coverage amount.

Since January 1, 2012, the City has had group life insurance with Reliastar Life insurance Company dba Voya Financial. It is the intent of the City to require Contractors to provide coverage on a no-loss basis to all employees and their dependents that are currently covered under the plans.

CURRENT AND HISTORICAL INFORMATION

Currently life and AD&D insurance is provided by Reliastar Life Insurance Company dba Voya

Financial. This policy became effective January 1, 2017. Effective June, 2018 the following changes have occurred:

• Class 1 and 2 Maximum from $300,000 to $400,000

• Voluntary benefit amounts not rounded.

• Reduced benefit amounts are not rounded.

• Employee guarantee issue amount for initial eligibility is the lesser of $200,000 or 5 times the employee’s basic yearly earnings

• Spouse guarantee issue increased to $100,000

CURRENT LIFE BENEFIT PLAN DESIGN

The complete benefits Certificates are available as Exhibit H:

Employee Basic Life and AD&D Insurance An active employee residing in the United States who is regularly scheduled to work on at least a 20-hour-per-week basis.

Voluntary Life Insurance An active employee residing in the United States who is regularly scheduled to work on at least a 20-hour-per-week basis.

Dependent Voluntary Life Insurance A lawful spouse, or child less than 26 years of age, of an active employee residing in the United States who is regularly scheduled to work on at least a 20-hour-per-week basis.

Retiree Basic Life Insurance An employee who retires on a pension plan controlled and administered by the City.

Basic Life and AD&D:

Class Description Life

Amount

AD&D

Amount

Basic Maximum

Benefit

1 City Manager The lesser of: 1.5 times the Employee’s

Basic Yearly Earnings or $400,000

The lesser of: 1.5 times the Employee’s

Basic Yearly Earnings or $400,000

$400,000

2 City Attorney, City

Clerk, City Magistrate and Presiding City

Magistrate

The lesser of: 1.5 times the Employee’s

Basic Yearly Earnings or $400,000

The lesser of: 1.5 times the Employee’s

Basic Yearly Earnings or $400,000

$400,000

3 Council Members $50,000 $50,000 $50,000

4 All Regular Status

Employees The lesser of: 1 times the Employee’s Basic

Yearly Earnings or

$200,000

The lesser of: 1 times the Employee’s Basic

Yearly Earnings or

$200,000

$200,000

5 Retirees 50% of the Employee’s amount of Basic Life

Insurance in force prior to retirement.

N/A $50,000

Minimum Benefit for all classifications $50,000

Voluntary Life Insurance:

Benefit Amount An Employee may elect an amount of Voluntary Life Insurance in

$10,000 increments

Voluntary Maximum Benefit The lesser of $500,000; or 5 times the Employee’s Basic Annual Earnings.

Guaranteed Issue Amount The lesser of $200,000; or 5 times the Employee’s Basic Annual Earnings.

Dependent Life Insurance:

Spouse

Basic Life Maximum Benefit Amount $1,000

Voluntary Benefit Amount An Employee may elect an amount of Dependent Spouse Voluntary Life

Insurance in $5,000 increments.

Voluntary Maximum Benefit $250,000; the amount of dependent Voluntary life insurance cannot exceed 50% of the Employee’s amount of Voluntary Life Insurance.

Guaranteed Issue Amount $100,000

Child(ren) from Birth to age 26

Basic Life Maximum Benefit Amount $1,000

Benefit Amount Flat $10,000 from birth to age 26, unless meets the handicapped dependent definition

Voluntary Maximum Benefit $10,000

Guaranteed Issue Amount $10,000

EMPLOYEE CONTRIBUTIONS (ON A PER $1,000 BASIS)

Monthly employee contributions are shown below.

Coverage Categories 01/01/18 – 12/31/22 01/01/18 – 12/31/22

Basic Life $0.105 $0.105

Basic AD&D (Employee) $0.020 $0.020

Voluntary Employee Life Smoker Non-Smoker

< 20 $0.050 $0.050

20 - 24 $0.070 $0.050

25 - 29 $0.082 $0.060

30 - 34 $0.106 $0.080

35 - 39 $0.144 $0.090

40 - 44 $0.234 $0.138

45 - 49 $0.374 $0.216

50 - 54 $0.676 $0.400

55 - 59 $1.030 $0.795

60 - 64 $1.550 $1.305

65 + $2.220 $2.060

Dependent Spouse Life Smoker Non-Smoker

< 20 $0.005 $0.050

20 – 24 $0.050 $0.050

25 – 29 $0.060 $0.060

30 – 34 $0.082 $0.080

35 – 39 $0.114 $0.090

40 – 44 $0.187 $0.105

45 – 49 $0.290 $0.150

50 - 54 $0.492 $0.333

55 - 59 $0.707 $0.615

60 - 64 $1.152 $0.950

65 + $2.060 $2.060

Dependent Child Life

Flat $10,000 $0.123

Voluntary AD&D Per $1,000

Employee/Spouse/Child $0.035

CLAIMS EXPERIENCE

Refer to claims experience Exhibit C.

CENSUS

Refer to Exhibit D for the Census.

ELIGIBILITY AND ELECTION RESTRICTIONS

City employees are eligible to participate in the Plan if they are (1) a full-time budgeted employee, averaging at least 30 hours per week or (2) a part-time budgeted employee who is averaging at least

20 hours per week, a non-budgeted employee averaging at least 30 hours of service per week or an

Elected Official. The effective date of an eligible employee’s coverage is the first of the month following one full month of employment.

The effective date of a City Councilmember’s coverage is the first day of the month following the full calendar month that follows the month in which the councilmember is sworn in.

City retirees are eligible to participate in the Plan if they were enrolled in active coverage immediately prior to their retirement, elected retiree coverage at the time of their retirement, and at the time of their retirement, were qualified for retirement benefits under the Arizona State

Retirement System, Elected Official’s Retirement Plan, or the Arizona State’s Public Safety Personnel

Retirement System. A retiree who drops coverage is not eligible to re-enroll.

Dependents of the above participants are eligible for coverage under the Plan. Dependents are defined as the participant’s legally married spouse, and child(ren) as defined by the I.R.S. regulations for purposes of qualified dependents, children who are the subject of a valid QMCSO and disabled child(ren) age 26 or older if the child is unmarried, primarily supported by the employee and incapable of sustaining employment by reason of mental or physical disability. Dependent child(ren) are eligible to stay on the plan, to the age of 26 without student status verification.

SCOPE OF SERVICES AND MINIMUM REQUIREMENTS

SCOPE OF WORK

1. The initial rates shall be guaranteed at a minimum for three (3) years effective January 1, 2023.

2. The Contractor shall provide detailed life insurance and AD&D claims experience for actives and retirees by employee, dependent spouse, and dependent child(ren) as specified by the City and at minimum annually at no cost to the City.

3. The Contractor shall provide final renewal rates, costs, and underwriting analysis and documentation to the City at least 210 days prior to the contract anniversary date as well as any data relevant to the renewal at the request of the City at no cost to the City.

4. The Contractor must cover all benefits from the effective date of the contract such that no employee or dependent currently insured will suffer a loss of coverage by virtue of a change in contractors other than by a change in plan design as specified by the City. No employee or dependent shall lose benefits because of transition issues from the current carrier to the awarded carrier.

5. Commissions are not to be included in the rates submitted unless included in the carrier’s filing with the State for Employer paid or Employee paid premiums. Any proposal that includes payment of commissions or any other form of remuneration shall be deemed non-responsive unless fully disclosed and approved by the City. If commissions or fees are included in the filed rates and cannot be removed from the rates provided, the level of commissions included in the proposed rates must be disclosed and noted.

6. The Contractor must agree to provide and administer, at a minimum, the current plans as specified in the City’s policy documents.

7. The Contractor will comply with all HIPAA Privacy Rule Regulations where applicable.

8. The Contractor will provide all Summary Plan Descriptions, Summary Benefit Booklets, and other customized communications (i.e. fliers, postcards, etc.) at no additional cost to the City.

9. The Contractor will provide any professional service representatives the City requires to understand, analyze, and/or plan for any plan changes including but not limited to general account servicing, underwriting-actuarial, clinical, and/or operational support.

10. The Contractor shall agree to participate in any open enrollment or special enrollment activities as specified by the City and shall provide materials and staff support as required at no additional cost to the City.

11. The Contractor agrees, that if awarded, the City may at any time request a change in key personnel assigned to service their account. In addition, should there be a change in key assigned personnel, the City will be immediately notified and replacement personnel will be replaced with personnel of substantially equal ability and qualifications as established at the time of the award.

12. The Contractor will agree to maintain all pertinent claim records for up to seven years including claim records, individual case review and notes, and any member inquiry records as prudent business practice and provisions dictate.

13. The Contractor shall maintain identical eligibility requirements and continued coverage provisions as identified by the City, and as may be amended from time to time. The Contractor shall provide coverage to all eligible employees and dependents as determined by the City.

14. The Contractor shall provide coverage for members on approved leave of absence (with or without pay) provided the member continues to pay premiums according to City rules for the period of approved leave of absence, other than those that are covered under an accepted waiver of premium arrangement. The Contractor shall also accept waiver of premium retrospectively at a minimum of 90 days.

15. The City shall determine eligibility for benefits while the Contractor shall determine benefits payable.

16. The Contractor’s “actively at work” provision will be waived for current covered employees.

EVALUATION CRITERIA

Proposal Evaluation Criteria Categories

Minimum Contractual Requirements 5%

Qualifications and Experience 20%

Method of Approach 45%

Financial and Underwriting 30%

General Proposal Requirements

In order for the proposal to be considered, Proposers must provide answers to the questions presented in this RFP. Each question must be answered specifically and in detail. Reference should not be made to a prior response, or to a Proposer’s contract, unless the question involved specifically provides such an option. Provide an answer to each question even if the answer is “not applicable” or “unknown.”

If the proposal is different in any way (whether more or less favorable) from that indicated in this

RFP, clearly indicate on the Deviations and Exceptions form and explain the difference. If a Proposer does not, the submission of the proposal will be deemed a certification that you will comply in every respect (including, but not limited to, coverage provided, funding method requested, benefit exclusions and limitations, underwriting provisions, etc.) with the requirements set forth in this RFP.

If a Proposer is unable to perform any required service, indicate clearly: a) what the Proposer is currently unable to do, and, b) what steps will be taken (if any) to meet the requirement, the timetable for that process and who will be responsible for the implementation, along with that person's qualifications.

All products should be priced individually. If pricing terms are provided for combining services, show the pricing terms as a separate line item.

Financial Section: When displaying the proposed fees, the tables in the Financial Section included with this RFP must be used. Information provided in any other format will not be considered.

Footnotes to the form(s) may be used to provide voluntary explanations, if necessary.

Minimum Contractual Requirements: The Minimum Contractual Requirement section will become part of the actual contract document. Agreement to the terms and language in this section will be a critical factor in Offeror evaluation and selection and an authorized binding signature will be required.

Instructions for Completing Evaluation Criteria Questionnaires

▪ DO NOT ALTER THE QUESTIONS OR QUESTION NUMBERING

▪ Provide answers to the questionnaires in native MS Word format.

▪ Provide an answer to each question even if the answer is “not applicable” or “unknown.”

▪ Answer the question as directly as possible.

• If the question asks “How many…” provide a number.

• If the question asks, “Do you…” indicate Yes or No followed by any additional narrative explanation.

▪ Lengthy responses may be truncated when displayed…to avoid this, be concise in the response.

Use bullet points as appropriate. Reconsider how to word any response that exceeds 200 words in length so that the response contains the most important points Proposers want displayed.

Refer the reader to an appendix/attachment for further information.

▪ Where Proposers desire to provide additional information to assist the reader in more fully understanding a response, refer the reader of the proposal to the appendix/attachments.

▪ Proposers will be held accountable for accuracy/validity of all answers. Failure to provide required information may cause the proposal to be deemed non-responsive. Incomplete or inaccurate answers may result in the disqualification of the proposal.

▪ All references to “Client or City” in the questionnaire refer to the City of Chandler.

▪ All references to “Plan” in the questionnaire refer to the City of Chandler’s basic and voluntary life/AD&D insurance program.

EXHIBIT A

QUALIFICATIONS AND EXPERIENCE, METHOD OF APPROACH AND FINANCIAL AND

UNDERWRITING QUESTIONNAIRES

Minimum Requirements

Qualifications and Experience

1. Qualifications and Experience

Method of Approach

1. General Information

2. Basic Life/AD&D

3. Voluntary Life/AD&D

Financial and Underwriting

1. Basic and Voluntary Life

2. Performance Guarantees

Questionnaires begin on the following page.

MINIMUM CONTRACTUAL REQUIREMENTS QUESTIONNAIRE

Indicate “Yes” or “No” as to the Proposer’s ability to meet the minimum requirements. Failure to complete this form and include it with the response may result in elimination from consideration.

A “Yes” response shall result in the provision being adopted into the final contract. No deviations will be accepted for “Yes” answers in this section.

MINIMUM CONTRACTUAL REQUIREMENTS YES NO

1. Proposal, Interview, and Best and Final Responses Become Part of

Contract: Do you agree that your written response to this RFP, written information provided as part of an interview and written responses provided during a Best and Final negotiation become part of the contract between your organization and City of Chandler?

2. Effective Date of Offer: Bid terms are guaranteed for at least 180 days from the proposal due date.

3. Your contract has a length of two (2) years with the option to renew for three (3) additional two year periods.

4. Rates/Fees are guaranteed for a minimum of 3 years.

5. Renewal Notification: The vendor must provide any rate changes in writing with full justification, and detailed underwriting calculations, by June 1 of the prior plan year for a January 1 effective date. Additionally, the vendor must provide the following with each renewal package:

a. Any contract language changes requested

b. Specific justification of rate/fee changes

c. Current enrollment by rate class

d. Additional options for consideration

e. All underwriting caveats

a. Any proposed plan design or benefit changes

6. Variance Provision: Any provisions, references, or guidelines relating to reevaluation of proposed fees due to variation in enrollment in the plan must not be less than 15% of the enrollment at the beginning of each plan year.

Any provisions relating to reevaluation of proposed rates due to variation in enrollment or other contingencies of the quote must be clearly noted in the financial section of the questionnaire.

7. Do you agree that your proposal is not contingent on acceptance of other coverages or services outside the Scope of this RFP?

MINIMUM CONTRACTUAL REQUIREMENTS YES NO

8. Right to Audit: The City of Chandler reserves the right to review and audit the life plan’s files and financial accounting data to assure that claims subject to each proposed coverage are evaluated in accordance with the plan provisions.

Additionally, the vendor agrees to allow for no less than one claim audit per year at no cost to the City of Chandler using the auditor of the City of Chandler’s choice (so long as the auditor is not a competitor or involved in any legal proceedings with the vendor). The vendor will cooperate with any outside auditor the City of Chandler selects to perform the audit. This provision shall survive the termination of the agreement between the parties for a period of 3 years.

9. Prior Notice of Major Operational Changes: Do you agree to provide no less than 30-day notice to the City of Chandler for any changes involving the sale, merger, data breaches, layoffs, participating provider facility terminations, consolidation or outsourcing of services to foreign workers that will impact the

City?

10. Do you agree to maintain proper licensure as required by any state law where it relates to the services that you will be performing for the City of Chandler?

11. Indemnification: Do you agree the contract will contain an indemnification provision pursuant to which the contractor must indemnify, defend, and hold harmless the City and its officials, agents, and employees?

12. Subcontracting: Unless otherwise explained in this RFP, do you agree that you will disclose all subcontractor arrangements, and any additional fees associated with the subcontractor arrangements, that involve the services provided to the

City of Chandler?

a. List any services related to the Scope of Work of this RFP that you currently subcontract (or plan to subcontract for this contract) and the name of the vendor(s) to whom you subcontract.

b. Do you agree to provide advanced written notice to the City if you decide to subcontract for any services related to the Scope of Work?

c. Do you understand that if you use subcontractors in the delivery of your services under this proposal your firm is responsible for the timeliness, accuracy, privacy, comprehensiveness, and reporting components of the subcontractor’s services?

d. Explain any of your current contractual relationships with a third-party firm in which the third party firm will be paid by the City either directly or indirectly during the course of the contract with the City (e.g. % of savings).

13. Rights to Claims Data: All member claim records are the sole property of the

City of Chandler. Selling of the City’s data to outside entities must be disclosed and approved in writing in advance by the City of Chandler. All claims data obtained during the contract period and for up to seven years after the contract termination is the property of the City of Chandler and must be available upon request.

14. On-Line Historical Data: Maintain at least seven years of City of Chandler’s claims data (all fields indicated on the billing) and eligibility information at all times.

MINIMUM CONTRACTUAL REQUIREMENTS YES NO

15. Maintenance, Ownership, and Transfer of Records:

a) The vendor will be required to maintain all pertinent records for seven years. This is in conjunction with prudent business practice and (as applicable); and

b) The vendor will be charged with the safekeeping of plan experience information; and

c) In the event of contract termination, and related to contract termination, the vendor will be required to cooperate with The City of Chandler, or their representative, in the prompt, accurate, and orderly transfer of the City’s plan experience, claims and utilization information to the City or its designated succeeding carrier at no added fee.

16. Eligibility Rules and Uncertain Claimant Eligibility Situations: The vendor agrees to the specified eligibility rules established by the City of Chandler. The vendor(s) must communicate directly with the City regarding any uncertain claimant eligibility situations before notifying the claimant of ineligibility.

17. No Member Communication Without the City’s Consent: The vendor will not automatically enroll the City of Chandler in any programs that involve any type of communication with members, without express written consent from the

City.

18. Termination Provisions: The City of Chandler may terminate the contract at any time after the first complete plan year without cause, by giving 30 days written notice. The City can terminate with cause with 30-day notice unless proper remedy is provided by the vendor. The vendor may only terminate for cause with proper legal minimum notice requirements.

19. Assignment or Transfer of Rights: Do you agree that you will not assign or transfer the rights or obligations of the contract or any portion thereof, without the prior written approval of the City of Chandler?

20. The successful vendor's proposal must contain provisions reserving these rights to The City of Chandler:

No-Loss, No-Gain & Waiver of Actively-at-Work: Current participants in any of the City’s sponsored life plans will be provided coverage on a "no-loss, no-gain" basis. Any “actively-at-work” or non-confinement requirements will be waived on the effective date for all members or dependents participating in the plan immediately prior to the effective date of your contract with the City.

21. a. Scope of Work: Are you able to provide all of the services outlined in the scope of work?

b. If not, have you listed all deviations or exceptions on the “Deviations and

Exceptions form”?

22. Commissions:

a) Is your proposal submitted net of commissions?

b) If commissions are built into your rates, and cannot be stripped out, will you pay them to the City’s consultant, Segal?

If you answered “No” to any of the questions above, please provide an explanation below:

Requirement No. Explanation

QUALIFICATIONS AND EXPERIENCE

1. QUALIFICATIONS AND EXPERIENCE VENDOR RESPONSE

1. Please complete the following background information about your organization:

a. Organization’s name

b. Address of your corporate headquarters

c. Address of the location that will service the City of

Chandler’s account

d. Date your firm became operational

e. Date your firm became operational for the services requested in this RFP

f. Ownership of your firm

2. In what other businesses are you involved? Describe their ownership.

3. a. Has your organization acquired, been acquired, or merged with another organization in the past 24 months?

b. Is your firm anticipating restructuring or reorganizing in the next two years? (include any major staff relocations or office closings.)

c. What is your plan for continuance of principles in the event of a reorganization or restructuring?

4. Is any aspect of your business outsourced? If yes, explain.

5. Identify any services under any subsequent contract that may be awarded as part of this RFP that are currently or planned to be performed outside the borders of the United States.

6. Identify those individuals who would be responsible for the day-to-day service contact for the City. Include

Overall Account Manager and Primary Day to Day

Contact. Include:

Name & Title:

Location (City/State):

Length of Time in Current position:

Name & Title:

Location (City/State):

Length of Time in Current position:

QUALIFICATIONS AND EXPERIENCE

1. QUALIFICATIONS AND EXPERIENCE VENDOR RESPONSE

7. Describe your experience administering plans for other entities similar to our organization.

8. What is the average tenure of your claims staff?

9. What are the most recent ratings for your company by the following: Rating Date

Standard and Poor’s

Duff and Phelps

A.M. Best

Moody’s

10. Is your company "affiliated" with another company? If so, describe the "affiliate relationship." "Affiliated" means owned by another company, owned by a common controlling shareholder or interest, or inter-tied by contract so as to be under the dominion or influence of another.

11. If your firm is not a corporation, please advise who each of the partners, proprietors or other owners are and whether they have interest in any Employee

Benefits services provider firms.

12. Is your firm involved in any current litigation against or from the City? If yes, please describe.

13. Have you been involved in litigation within the last five years arising out of your performance as a Group Life

Insurance provider? Exclude routine matters involving participants that do not reflect on your performance under the contract with your Client. If the answer is yes, explain fully.

14. Describe your company’s expectations for quality of customer service. Describe the training process of your customer service representatives.

15. What is the turnover rate for your customer service representatives?

16. Describe the type of background checks your organization conducts on potential new employees.

METHOD OF APPROACH

1. GENERAL INFORMATION VENDOR RESPONSE

1. All sample forms and communication materials should be provided for approval to the City in advance of distribution (claim forms, enrollment forms, booklets, brochures, flyers, mailers, etc.). Do you agree to this requirement?

2. Does your firm have the capability to provide communication pieces in Spanish and other languages? Please specify.

3. If your company is awarded this business, how soon after notification of the award would you be able to have a draft of the:

a. Master Policy

b. Certificate booklets?

4. If your company is awarded this business:

a. What is the minimum amount of implementation lead-time needed to initiate the proposed services?

b. List any transition issues the City should consider.

c. List any specific administrative procedures or information your firm will need from the City in order to implement your services.

5. Do you agree to provide the City a clear path

(representative phone number or email, etc.) for employees to register complaints?

6. Indicate any enhanced current services (financial planning, EAP, funeral services, etc.) included in your proposal. Include marketing materials you feel would be beneficial in further explaining these services.

7. a. Are you able to match the current accelerated death benefit exactly for all plans as listed in each benefit plan?

b. If not, list all deviations. References to attached plan designs may be provided in addition to listing deviations, but all deviations must be summarized.

8. a. Do you agree to grandfather existing life insurance amounts for all currently covered employees and dependents so that evidence of insurability is not required?

b. If not, what amount of coverage can be provided without evidence of insurability?

1. GENERAL INFORMATION VENDOR RESPONSE

9. Does your accelerated death benefit apply to the following coverage types:

a. Basic Life

b. Voluntary Employee Life

c. Voluntary Spouse Life

d. Voluntary Child Life

10. What benefit improvements are you willing to include for the accelerated death benefit at no additional change to your proposed rates?

11. a. Indicate services you provide, including online service tools that would simplify administration for the City’s benefit staff.

b. Indicate services you provide, including online service tools that would simplify claims submission and information needed by the plan participant or their beneficiaries.

12. Please confirm you will provide the City with a 30-day grace period for fee/premium payments.

13. Please confirm you will allow the City to continue self-administration of the billing.

14. Does your firm provide both paper and electronic billing and reports?

15. Do you agree to attend the Annual Open Fair at the

City’s designated location at no additional cost?

2. BASIC LIFE & AD&D VENDOR RESPONSE

1. Do you agree to waive actively at work requirements / non-hospital confinement rules for existing covered participants on the effective date who were covered by the current carrier, AND do not qualify for waiver of premium (or should have qualified)? Any increase in life insurance amounts on the effective date will not take effect until the employee has returned to work.

2. a. The master contract must reflect the elimination of the actively-at-work restrictions or deferred effective date for employees and dependents eligible on the effective date of the contract. Indicate your agreement to this stipulation.

b. If you are not able to waive actively at work, explain how you will ensure that no employee losses coverage under discontinuance and replacement?

c. List any other takeover limitations and/or restrictions.

3. It is the intention of the City that no employee suffers a loss of coverage by virtue of a change in carriers other than by plan design. Indicate your agreement to this stipulation.

4. a. Are you able to match the current basic life and

AD&D benefit exactly for all plans as listed in each benefit plan?

b. If not, list all deviations. References to attached plan designs may be provided in addition to listing

5. What benefit improvements are you willing to include for the basic life/AD&D benefit at no additional change to your proposed rates?

6. When providing reports, do you agree that the reports will reflect paid premium, paid claims, enrollment, volumes insured, and premium waiver claims on a monthly basis?

7. Do you agree you will deliver certificates of coverage for basic life and AD&D to the City?

8. a. Does your contract include a conversion or portability option?

b. What is your charge per thousand to the policyholder for conversions?

9. May an individual whose insurance terminates convert or port the coverage without evidence of insurability?

10. a. Does your contract include a waiting period for

Waiver of Premium?

b. If so, how long is the waiting period?

11. What is the time period that a disabled employee must file for waiver of premium?

12. If you have a waiting period for waiver of premium and an employee is subsequently approved, are premiums waived back to the initial date of disability or only…