CTR059484_Contractor_Proposal_Response.pdf

REQUEST FOR

BEST AND FINAL OFFER ARIZONA STATE

RETIREMENT SYSTEM

3300 N Central Ave

14th Floor Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900

Page of

January 31, 2021

Pursuant to A.A.C. R2-7-C315, the Arizona State Retirement System (ASRS) hereby requests a Best and Final Offer from your company. This represents an opportunity to officially amend your original Offer with changes that would make the Offer more competitive.

1. Using Attachment A: Offer and Acceptance included in this document, indicate which services you are offering, sign and resubmit.

2. Using Attachment B: Exceptions included in this document, indicate the negotiated exceptions that will replace the language in the original Solicitation documents. ASRS requests Offeror submit only those exceptions that ASRS has indicated it can agree to consider as part of negotiation discussions.

Submissions of exceptions not agreed upon during negotiation discussions may impact evaluation of the Offer.

3. Using Attachment C: Pricing Schedule included in this document, present your company’s best and final pricing for any and all items.

4. As a follow up to the ASRS Determination on Confidential Information, when uploading your Offer documents ensure the confidential box is checked for any documents that were determined to be confidential; ensure that the confidential box is not checked for any documents that were determined not to be confidential.

5. In APP, on the Items (F) tab, a Unit price of $1.00 must be entered and saved.

6. If you wish to make any revisions to your original Offer, include the changes in your response to this request. In order to make any such changes, in the Suppliers Documents section, remove the original attachment(s) that require changes, and then add the new, revised attachment.

Your response to this request will supersede any previous Offers or discussions. If you do not respond to an item, your original Offer will be considered your final Offer.

All Offerors must select one of the following:

Offeror is not submitting any revisions. Offeror understands that the original response will be considered the final Offer.

Offeror is submitting the following revised attachment(s), in its entirety, with this form as part of the Best and Final Offer. (List all documents, identifying the revised sections, below)

Pricing schedule updated

Broadspire Services, Inc.

Company Name Signature of Person Authorized to Sign

2-2-2022 Geoffrey Paul Date Printed Name

REQUEST FOR

BEST AND FINAL OFFER ARIZONA STATE

RETIREMENT SYSTEM

3300 N Central Ave

14th Floor Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900

Page

This document must be completed and submitted, along with any other Best and Final Offer documents, in APP.

In order to ensure your Best and Final Offer will be considered, it must be submitted in the APP system no later than 12:00 P.M. (MST), February 3, 2022 unless otherwise subsequently communicated by ASRS in the APP Discussion Forum. After a final Offer is received, it is extremely difficult to change it; therefore, if you need clarification on any item, please do not hesitate to send a message through the APP Discussions with Buyer tab before submitting the Offer.

**IMPORTANT NOTES AND REMINDERS REGARDING SUBMISSION IN APP

All Attachments should be uploaded in the APP system via the Your Offer Infos & Docs tab by going to the Supplier Documents section and selecting “Add Document”. Always select document type “Supplier Technical Document.”

Items that are not confidential should be uploaded and the “Confidential” box should not be checked.

On the Items (F) tab, a Unit price of $1.00 must be entered and saved.

Online tutorials and quick reference guides for using APP are accessible from the APP website at https://spo.az.gov/suppliers/app-support/quick-reference-guides , including links to “Submitting a Best and Final Offer”. For technical questions regarding the system, the APP helpdesk staff is available to assist by telephone at 602-542-7600 or by email at app@azdoa.gov. Due to a fluctuating volume of calls and emails, allow at least 24 hours to receive a response.

https://spo.az.gov/suppliers/app-support/quick-reference-guides

BEST AND FINAL OFFER

ATTACHMENT A: Offer ad Acceptance ARIZONA STATE

RETIREMENT SYSTEM

3300 N Central Ave

14th Floor Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900

Page

CERTIFICATION: By signature in the section above, the Offeror certifies it:

1. Will not discriminate against any employee or applicant for employment in violation of Federal Executive Order 11246, [Arizona] State Executive Order 2009-9 or A.R.S. §§ 41−1461 through 1465.

2. Has not given, offered to give, nor intends to give at any time hereafter any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with the submitted Offer. Failure to provide a valid signature affirming the stipulations required by this clause shall result in rejection of the Offer. Signing the Offer with a false statement shall void the Offer, any resulting contract and may be subject to legal remedies provided by law.

3. Is not debarred by, or otherwise prohibited from participating in any publically-funded contract awarded by any Federal, State or local jurisdiction.

4. Is lawfully authorized to conduct business in Arizona or has no impediments to conduct business in Arizona.

5. Does not participate in, and agrees not to participate in during the term of the Contract, a boycott of goods or services from the state of Israel in accordance with A.R.S. §35-393 and §35-393.01. This certification does not include boycotts prohibited by 50 United States Code Section 4842 or a regulation issued pursuant to that section in accordance with A.R.S. §35-393.03.

TO THE ARIZONA STATE RETIREMENT SYSTEM (ASRS): The Undersigned hereby offers and agrees to provide long-term disability administration services in compliance with the Scope of Work, Special and Uniform Terms and Conditions, Instructions to Offerors, Attachments (Response Forms), Solicitation or Contract Amendments, and Offeror’s Best and Final Offer as accepted by ASRS, as part of the Solicitation.

The Offer and Acceptance form within the Solicitation shall be submitted with the Offer in the State’s eProcurement system and shall include a signature by a person authorized to sign the Offer. The signature shall signify the Offeror’s intent to be bound by the Offer and the terms of the Solicitation and that the information provided is true, accurate and complete. Failure to submit verifiable evidence of an intent to be bound, such as a signature, shall result in rejection of the Offer.

Broadspire Services, Inc.

Company Name Signature of Person Authorized to Sign Offer

1391 NW 136th Avenue

Geoffrey Paul

Address Printed Name and Title

Sunrise, FL 33323

Director, Business Development

City State Zip Contact Name and Title

36-3917295

Phone: 646-303-8710 Email: Geoffrey_paul@choosebroadspire.com

Federal tax identifier (EIN or SSN) Contact Phone and Email Address

ATTACHMENT A: Offer ad Acceptance ARIZONA STATE

RETIREMENT SYSTEM

3300 N Central Ave

14th Floor Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900

Page

ACCEPTANCE OF OFFER BY ASRS: The Offer is hereby accepted. The Offeror is now bound (as Contractor) to carry out the Work outlined in the Contract and based upon the Solicitation.

Contract No. ________________________________________________________________________

The effective date of the Contract is ____________________________________________________

Awarded this _______ day of __________ 20 ______________

ASRS Signature

ASRS Name

ASRS Title

Note: The Contractor is cautioned not to commence any billable work or to provide any service under this Contract until Contractor receives a purchase order, contract release document or written notice to proceed.

ATTACHMENT B: Exceptions ARIZONA STATE

RETIREMENT SYSTEM

3300 N Central Ave

14th Floor Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900

Page

Indicate below any exceptions taken to the requirements or terms contained in this Solicitation. Provide both an explanation for the exception and Offeror’s recommended alternative language.

Certain exceptions may have a negative impact on the evaluation of the Offeror’s proposal. As indicated in the Instructions to Offerors, Section 6.4 (Consideration of Exceptions) “. . . if an Offer is conditioned on exceptions to the Scope of Work and Terms and Conditions, the Offer may be determined to be not susceptible for award and rejected . . .”

Please indicate as appropriate:

☐ TAKES NO EXCEPTIONS

☒ TAKES EXCEPTIONS TO THE FOLLOWING:

Identify the section of the Scope of Work or the Special or Uniform Terms and Conditions of the Solicitation, and any Attachments. Identify the clause name and number (where applicable), provide the reason for the exception, and propose requested alternative language by restating and redlining the clause. Copy and paste a new row for each new exception.

Section /

Paragraph or Exhibit Reference

Solicitation Language (Copy and Paste from Solicitation) Proposed Changes / Alternate Language

5.1.1

Monthly reporting due within five (5) days of the last day of the month:

5 Business Days

Enter redline.

Explanation In order to ensure reports are delivered timely, we would need the 5 Business days.

Enter Solicitation Section.

Paste language here.

Enter Solicitation Section.

Paste language here.

ATTACHMENT C: Pricing Schedule ARIZONA STATE

RETIREMENT SYSTEM

3300 N Central Ave

14th Floor Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900

Page

Fees, charges, or costs that are not stated on this Pricing Schedule will not be authorized. All pricing (fixed, project basis, etc.) must be inclusive of travel.

Offeror must complete the Items tab in APP by entering $1 in the Unit Price field.

1. ADMINISTRATIVE FEES

In the Excel file included below, provide pricing for the administrative services described in the Scope of Work. Offeror must identify any and all qualifications, conditions, and limitations/maximums (e.g., on the number of claims, appeals, etc.).

Double click on the icon labeled Administrative Fee Detail.xlsx below. Complete the spreadsheet, and save and close the Excel file to retain it in this document. Do NOT save as a separate document to attach to Offer.

Pricing attached for 5 year rate guarantee.

Worksheet in C Broadspire BestandF

2. OPTIONAL/ALTERNATIVE PRICING

The Offeror may propose alternative pricing structures, including multi-year pricing, provided it has submitted pricing information under item 1 above. The Offeror has full discretion in what it may propose, however, the ASRS is under no obligation to accept such proposals.

Alternate pricing provided – 3 year rate guarantee.

Worksheet in C Broadspire BestandF

3. PAYMENT DISCOUNT OPTIONS

For the services specified herein, the following apply:

If payment is made within calendar days after acceptance of services, the above quoted price, shall be discounted by .

We do not offer early payment discounts.

SERVICES DESCRIPTION

FEE TYPE

(Fixed/Actual Fee Reimbursement)

FEE OR UNIT COST

(If Cost, provide estimated averages)

UNIT OF

MEASUREMENT

FREQUENCY OR

QUANTITY

Example:

New Claim

One-time charge in month claim is approved for benefit

Fixed $200.00 Per Claim One time

Example:

Open Claim

Charge for an open claim approved in a previous month; action may/may not be taken on the claim in a given month

Fixed $25.00 Per Claim Per Month

Example:

Medical Record Expenses

Charges from physician office and other medical facilities to provide records received by the participant and requested by Contractor to make a claim determination.

Actual Fee Reimbursement Variable; historical experience indicates average

(avg) of $25

Per Participant Avg of 3 facilities upon initial claim; avg of 2 facilities upon review in claim year 3

Account Management Fee A recurring charge to be billed monthly Fixed $14,500 Per Month Per month

New Claims One-time charge in month claim is approved for benefit

Fixed $521. 00 Per Claim One Time

Open Claims Charge for an open claim approved in a previous month; action may/may not be taken on the claim in a given month

Fixed $36 .00 Per claim Per Month

Late Claims No additional charge, any late filed claims would be considered part of the new claim

No Charge

Pre-Existing Review No additional charge, Pre-X claims would be considered as part of a new claim No Charge

Contractor Level Appeals Appeals reviewed and processed by

Broadpsire Fixed

$395 .00 Per Claim One Time

Medical Records Expenses Charges from physician office and other medical facilities to provide records received by the participant and requested by Contractor to make a claim determination.

Actual Fee Reimbursement Variable Per Participant

Avg of 3 facilities upon initial claim; avg of 3 facilities upon review in claim year 3

Peer Review Services $405 .00

Per hour, one hour minimum, $94.00 for each additional 15 minute increments over an hour

As Needed

Vocational Rehabilitation

When an individual cannot return to work with their employer, we can assist in the development and implementation of a retraining program to help enable the individual to return to gainful employment within a new occupation

$3,800.00 -$4,200.00 Per Participant As Needed

Transferable Skills Analysis

Compares the individuals’ current skills or competencies based on their prior work experience. These competencies are then compared to the current job market to determine if there are transferrable employment opportunities that align with limitations/restrictions to identify suitable or realistic alternative occupations.

$730 .00 Per Participant As Needed

Independent Medical Exam

This cost is variable based on the type of exam and location of the employee.

The average cost is approximately $1,500.00 -

$2,000.00

Per Participant As Needed

Ad Hoc Reports $150 .00 Per Hour As Needed

Labor Market Survey

Provides assessment of the existence of positions, wages, and availability within the individual’s geographical region. Analyzes the feasibility of that position and verify the qualifications and employment potential of the individual within that occupation. We are assessing, job requirements, wages, physical demands, and availability. Max of 8 contacts included. Additional contacts billed at T&E

$950.00, $112.00 Plus Expenses

Per Participant As Needed

Vocational Rehabilitation Plan Monitoring

We monitor the retraining plan, handling issues that may arise from the school or the individual from their first day to their last day of the training program.

$112 .00 Per Participant, Per Hour As Needed

Broadspire System Access These are the licenses granted to no more than 22 ASRS employees to perform system work

No Charge

BEST AND FINAL OFFER

ATTACHEMENT C: ADMINISTRATIVE FEE DETAIL

The below fees are gauranteed for:

FEE GUARANTEE

ASRS COSTS

PARTICIPANT COSTS (fees or costs that may be collected from a participant, if applicable)

Account Management: (Including but not limited to)

Reimburseable Expenses: (Including but not limited to)

Other: (include additional fees as necessary)

SOLICITATION CODE: BPM003900

ASRS Long-Term Disability Program Administration

Complete the table below in the format provided. All fees or charges to the ASRS or fees that may be charged or collected from an ASRS LTD Participant and that are associated with this Contract shall be listed.

Offeror shall provide pricing in each of the Service category (in Bold type) offered. Offeror should further break-out pricing in the administrative fee detail areas (non-bold type).

Additional rows may be inserted, as necessary.

Use the Description field to clearly explain all qualifications or conditions.

If optional services that may be offered as part of the Scope of Work are not part of Offer, indicate N/A.

Any fee not stated herein is deemed to be included in the Total Account Management Fee.

Any additional fees not included in the provided list should be added in the "other" section.

ADMINISTRATIVE FEE DETAIL SUMMARY

Other Services:

1 year 5 years

SERVICES DESCRIPTION

FEE TYPE

(Fixed/Actual Fee Reimbursement)

FEE OR UNIT COST

(If Cost, provide estimated averages)

UNIT OF

MEASUREMENT

FREQUENCY OR

QUANTITY

Example:

New Claim

One-time charge in month claim is approved for benefit

Fixed $200.00 Per Claim One time

Example:

Open Claim

Charge for an open claim approved in a previous month; action may/may not be taken on the claim in a given month

Fixed $25.00 Per Claim Per Month

Example:

Medical Record Expenses

Charges from physician office and other medical facilities to provide records received by the participant and requested by Contractor to make a claim determination.

Actual Fee Reimbursement Variable; historical experience indicates average

(avg) of $25

Per Participant Avg of 3 facilities upon initial claim; avg of 2 facilities upon review in claim year 3

Account Management Fee A recurring charge to be billed monthly Fixed $14,500 Per Month Per month

New Claims One-time charge in month claim is approved for benefit

Fixed $505. 00 Per Claim One Time

Open Claims Charge for an open claim approved in a previous month; action may/may not be taken on the claim in a given month

Fixed $35 .00 Per claim Per Month

Late Claims No additional charge, any late filed claims would be considered part of the new claim

No Charge

Pre-Existing Review No additional charge, Pre-X claims would be considered as part of a new claim No Charge

Contractor Level Appeals Appeals reviewed and processed by

Broadpsire Fixed

$382 .00 Per Claim One Time

Medical Records Expenses Charges from physician office and other medical facilities to provide records received by the participant and requested by Contractor to make a claim determination.

Actual Fee Reimbursement Variable Per Participant

Avg of 3 facilities upon initial claim; avg of 3 facilities upon review in claim year 3

Peer Review Services $405 .00

Per hour, one hour minimum, $94.00 for each additional 15 minute increments over an hour

As Needed

Vocational Rehabilitation

When an individual cannot return to work with their employer, we can assist in the development and implementation of a retraining program to help enable the individual to return to gainful employment within a new occupation

$3,800.00 -$4,200.00 Per Participant As Needed

Transferable Skills Analysis

Compares the individuals’ current skills or competencies based on their prior work experience. These competencies are then compared to the current job market to determine if there are transferrable employment opportunities that align with limitations/restrictions to identify suitable or realistic alternative occupations.

$730 .00 Per Participant As Needed

Independent Medical Exam

This cost is variable based on the type of exam and location of the employee.

The average cost is approximately $1,500.00 -

$2,000.00

Per Participant As Needed

Ad Hoc Reports $150 .00 Per Hour As Needed

Labor Market Survey

Provides assessment of the existence of positions, wages, and availability within the individual’s geographical region. Analyzes the feasibility of that position and verify the qualifications and employment potential of the individual within that occupation. We are assessing, job requirements, wages, physical demands, and availability. Max of 8 contacts included. Additional contacts billed at T&E

$950.00, $112.00 Plus Expenses

Per Participant As Needed

Vocational Rehabilitation Plan Monitoring

We monitor the retraining plan, handling issues that may arise from the school or the individual from their first day to their last day of the training program.

$112 .00 Per Participant, Per Hour As Needed

Broadspire System Access These are the licenses granted to no more than 22 ASRS employees to perform system work

No Charge

BEST AND FINAL OFFER

ATTACHEMENT C: ADMINISTRATIVE FEE DETAIL

FEE GUARANTEE

ASRS COSTS

PARTICIPANT COSTS (fees or costs that may be collected from a participant, if applicable)

Account Management: (Including but not limited to)

Reimburseable Expenses: (Including but not limited to)

Other: (include additional fees as necessary)

SOLICITATION CODE: BPM003900

ASRS Long-Term Disability Program Administration

Complete the table below in the format provided. All fees or charges to the ASRS or fees that may be charged or collected from an ASRS LTD Participant and that are associated with this Contract shall be listed.

Offeror shall provide pricing in each of the Service category (in Bold type) offered. Offeror should further break-out pricing in the administrative fee detail areas (non-bold type).

Additional rows may be inserted, as necessary.

Use the Description field to clearly explain all qualifications or conditions.

If optional services that may be offered as part of the Scope of Work are not part of Offer, indicate N/A.

Any fee not stated herein is deemed to be included in the Total Account Management Fee.

Any additional fees not included in the provided list should be added in the "other" section.

ADMINISTRATIVE FEE DETAIL SUMMARY

Other Services:

3 years

ATTACHMENT D: Designation of Confidential, Trade Secret and Proprietary

Information ARIZONA STATE

RETIREMENT

SYSTEM

3300 N Central Ave

14th Floor Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900 Part 3 of 3 – Instructions to Offerors, Offer Forms, and Exhibits

Page

All materials submitted as part of a response to a Solicitation are subject to Arizona Public Records Law and will be disclosed if there is an appropriate public records request at the time of or after the award of the Contract. Recognizing there may be materials included in a Solicitation response that are proprietary or a trade secret, a process is set out in A.A.C. R2-7-103 (attached) that will allow qualifying materials to be designated as confidential and excluded from disclosure. For purposes of this process the definition of “trade secret” will be the same as that set out in A.A.C. R2-7-101(50).

This form must be completed and returned with your Offer along with supporting information to assist the ASRS in making its determination as to whether any of the materials submitted as part of your Offer should be designated confidential because the material is proprietary or a trade secret and therefore not subject to disclosure.

THE ASRS WILL NOT CONSIDER ANY MATERIAL IN YOUR OFFER “CONFIDENTIAL” UNLESS DESIGNATED ON THIS FORM.

Select one of the following – if neither is checked the ASRS will assume that as equivalent to “does not”:

☐ My response does not contain proprietary or trade secret information. I understand that my entire response will become public record in accordance with A.A.C. R2-7-C317.

☒ My response does contain trade secret information because it contains information that:

1. Is a formula, pattern, compilation, program, device, method, technique or process; AND

2. Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; AND

3. Is the subject of efforts by myself or my organization that are reasonable under the circumstances to maintain its secrecy.

List and provide an explanation for all parts of Offeror’s response that are separately marked as “Confidential.”

Exhibit B - 2021 BSI SOC 1 Type II_CLICKWRAP ACCESS LETTER: Please note that this service organization control report contains private and confidential information intended solely for the management of Crawford & Company, its customers, and the independent auditors of its customers. Use or reproduction of this report and/or its contents by any other party is strictly prohibited.

Follow Instructions to Offerors, Section 4.1 (Offeror Confidential Information) to ensure items are correctly separated, attached, and marked in the Arizona Procurement Portal (APP) as part of Offeror’s response.

Please note that failure to include an explanation may result in a determination that the information does not meet the statutory trade secret definition. All information that does not meet the definition of trade secret as defined by A.A.C. R2-7-101(50) will become public in accordance with A.A.C. R2-7-C317. The State reserves the right to make its own determination of Offeror’s trade secret materials through a written determination in accordance with A.A.C.

R2-7-103.

If the ASRS and State of Arizona agree with the Offeror’s designation of trade secret or confidentiality and the determination is challenged, the undersigned hereby agrees to cooperate and support the defense of the determination with all interested parties, including legal counsel or other necessary assistance.

ATTACHMENT D: Designation of Confidential, Trade Secret and Proprietary

Information ARIZONA STATE

RETIREMENT

SYSTEM

3300 N Central Ave

14th Floor Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900 Part 3 of 3 – Instructions to Offerors, Offer Forms, and Exhibits

Page

By submitting this response, Offeror agrees that the entire Offer, including confidential, trade secret and proprietary information may be shared with an evaluation committee and technical advisors during the evaluation process. Offeror agrees to indemnify and hold the State, its agents and employees, harmless from any claims or causes of action relating to the State’s withholding of information based upon reliance on the above representations, including the payment of all costs and attorney fees incurred by the State in defending such an action.

Broadspire Services, Inc.

Company Name Signature of Person Authorized to Sign

1391 NW 136th Avenue Geoffrey Paul Address Printed Name

Sunrise, FL 33323 Director, Business Development City State Zip Title

R2-7-103. Confidential Information A. If a person wants to assert that a person’s offer, specification, or protest contains a trade secret or other proprietary information, a person shall include with the submission a statement supporting this assertion. A person shall clearly designate any trade secret and other proprietary information, using the term “confidential”. Contract terms and conditions, pricing, and information generally available to the public are not considered confidential information under this Section.

B. Until a final determination is made under subsection (C), an agency chief procurement officer shall not disclose information designated as confidential under subsection (A) except to those individuals deemed by an agency chief procurement officer to have a legitimate state interest.

C. Upon receipt of a submission, an agency chief procurement officer shall make one of the following written determinations:

1. The designated information is confidential and the agency chief procurement officer shall not disclose the information except to those individuals deemed by the agency chief procurement officer to have a legitimate state interest;

2. The designated information is not confidential; or

3. Additional information is required before a final confidentiality determination can be made.

D. If an agency chief procurement officer determines that information submitted is not confidential, a person who made the submission shall be notified in writing. The notice shall include a time period for requesting a review of the determination by the state procurement administrator.

E. An agency chief procurement officer may release information designated as confidential under subsection (A) if:

1. A request for review is not received by the state procurement administrator within the time period specified in the notice; or

2. The state procurement administrator, after review, makes a written determination that the designated information is not confidential.

R2-7-101. Definitions “Trade secret” means information, including a formula, pattern, device, compilation, program, method, technique, or process, that is the subject of reasonable efforts to maintain its secrecy and that derives independent economic value, actual or potential, as a result of not being generally known to and not being readily ascertainable by legal means.

R2-7-C317. Contract Award A. An agency chief procurement officer shall award the contract to the responsible offeror whose offer is determined to be most advantageous to the state based on the evaluation factors set forth in the solicitation. The agency chief procurement officer shall make a written determination explaining the basis for the award and place it in the procurement file.

B. The agency chief procurement officer shall notify all offerors of an award.

C. After contract award, the agency chief procurement officer shall return any offer security provided by the offeror.

D. Within 3 days after contract award the agency chief procurement officer shall make the procurement file, including all offers, available for public inspection, redacting information that is confidential under R2-7-103.

ATTACHMENT E: Questionnaire

ARIZONA STATE

RETIREMENT

SYSTEM

3300 N Central Ave 14th Floor

Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900 Part 3 of 3 – Instructions to Offerors, Offer Forms, and Exhibits

Page

Table of Contents Instructions

Experience and Qualifications

Company History Account Management Organizational Processes and Resources

Methodology and Administrative Capability

Claims Administration Customer Service Reporting Financial Management Performance Guarantees Implementation/Transition Processes

RETIREMENT

SYSTEM

3300 N Central Ave 14th Floor

Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900 Part 3 of 3 – Instructions to Offerors, Offer Forms, and Exhibits

Page

Instructions All Offerors, including any incumbent or previous service providers, must complete the Questionnaire and provide detailed responses, without assuming the ASRS is familiar with or will accept Offeror’s experience, approach, systems, or methodologies.

This Questionnaire is designed to assist the ASRS in gaining an understanding of the firm’s qualifications for consideration for this engagement. It is important to provide accurate, complete, and thorough information as requested. The ASRS may award contracts for all or any portion of the work for which an Offeror has provided a response.

Requested Supplemental documents that cannot be included or embedded within this Questionnaire itself should be clearly labeled and included as a single separate attachment entitled “Supplemental Information-Document Title.” If Offeror believes any information is confidential in its response to this Questionnaire, include that section of your response in a separate attachment entitled “Confidential Responses” and mark as “Confidential” as indicated in Sections 4 of the Instructions to Offerors.

Experience and Qualifications

Company History

1. Provide a narrative history of your company. This should include the primary function of your company, the number of years your company has provided the services described herein, affiliated companies/underwriters, and locations. Keep the response to this question to one page or less.

Broadspire is fully owned by Crawford & Company. Based in Atlanta, GA, Crawford & Company is the world's largest independent provider of claims management solutions to the risk management and insurance industry, as well as self-insured entities, with an expansive global network that serves clients in more than 70 countries. The Company’s shares are traded on the NYSE under the symbols CRDA and CRDB.

Broadspire had long been recognized as an innovator and leader in the integrated absence management space for a number of years. This achievement created external market interest in acquiring key resources and assets, which ultimately led to the sale of the disability and leave administration platform in 2006 to a third party. While delivering full administration was not an option initially, Broadspire continued to provide clinical and medical case management expertise to disability and leave business partners as well as third-party markets.

In 2014, Broadspire returned to the market and launched a new, comprehensive administrative platform to support an enhanced integrated disability and leave management solution. The solution includes short- and long-term disability, Family Medical Leave administration (federal, state and municipal), customized company leaves, ADA/ADAAA and workers compensation.

Broadspire represents the Crawford & Company service line for third-party administration of Disability & Leave of Absence benefits. The Broadspire leave management solution is based on holistic management of the suite of paid and unpaid leaves, both federal and statutory in origin. Broadspire takes on all aspects of absence management from claim intake, leave notification, information gathering and recordkeeping, follow-up, employee and employer communications, and reporting.

RETIREMENT

SYSTEM

3300 N Central Ave 14th Floor

Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900 Part 3 of 3 – Instructions to Offerors, Offer Forms, and Exhibits

Page

Disability claim administration is housed in our home office located at:

1391 NW 136th Ave., Sunrise, FL 33323.

Broadspire’s corporate headquarters is located at:

5335 Triangle Parkway, NW, Peachtree Corners, GA 30092

2. Provide a brief written explanation as to how you meet each minimum qualification and requirement listed in the Instructions to Offerors, Section 5.3.

• Offeror shall have the capability of providing the services requested herein.

Broadspire has been recognized as an innovator and leader in the integrated absence management space for a number of years. This achievement created external market interest in acquiring key resources and assets which ultimately led to the sale of the disability and leave administration Platform in 2006 to a third party. While delivering full Administration was not an option initially, Broadspire continued to provide clinical and medical case management expertise to disability and leave business partners as well as third party markets.

In 2014, Broadspire launched a new comprehensive Administrative Platform to support an enhanced Integrated Disability and Leave Management Solution, inclusive of Workers’ Compensation, Short and Long- Term Disability, Family Medical Leave Administration (Federal, State and Municipal) and customized Company Leaves. Due to our required hiatus, we are unable to provide comprehensive historical data around staffing, administrative outcomes, clinical comparisons and customer outcomes.

As a large third-party administrator (TPA) we have experience and success in both occupational and non-occupational programs. Our current book of business boasts over 500 client programs that encompass virtually every industry and vertical market. Programs include clients ranging from fewer than 100 employees to clients with workforces exceeding 200,000.

• Offeror must have a minimum of five (5) years of business experience providing like or similar services.

The Broadspire approach to disability management is unique in that it is truly innovative, customized to the client’s unique needs and a model that is integrated across all types of absence. Flexibility and customization are fundamental to our approach. We know that there is no one-size-fits-all program and that each customer’s needs are unique. Whether a full-scope program or an unbundled service is needed, Broadspire's extensive suite of tools and resources can help.

As the incumbent, we have been providing LTD services since 2016.

• Offeror must use qualified and credentialed medical professionals to conduct independent medical examinations/reviews.

Broadspire agrees.

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3300 N Central Ave 14th Floor

Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900 Part 3 of 3 – Instructions to Offerors, Offer Forms, and Exhibits

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• Offeror must illustrate comparable experience providing services for a client with work of similar scope, complexity, and size. References provided must be verifiable and should be able to comment on the Offeror’s related experience and past performance.

As a large third-party administrator (TPA), we have experience and success in both occupational and non-occupational programs. Our current book of business boasts over 500 client programs that encompass virtually every industry and vertical market. Programs include clients ranging from fewer than 100 employees to clients with workforces exceeding 200,000. Although the tenure of these business relationships greatly varies, we are proud to note many have been Broadspire customers for 15 to 20 years and some for more than 30 years.

3. Within the past two (2) years, describe any significant development in your company (e.g. changes in ownership, personnel reorganization, change in business emphasis, etc.).

No, there have not been any changes in ownership within the last 18 months. In regards to the company structure, it was announced in May 15, 2020, Crawford & Company appointed Rohit Verma, as CEO and Joseph Blanco, as Crawford President.

3.1 Does your company anticipate any transactions to expand or to become acquired by another business entity within the next five (5) years? If yes, explain the impact in both organizational and directional terms.

No. There are there no plans at this time.

4. For the most recent ten (10) year period, describe any past or pending litigation, regulatory proceedings, investigations and/or complaints filed against your company, or any proposed subcontractor or affiliated organization, or individual identified to perform services for the ASRS. (If Offeror believes the information is confidential, include response in a separate attachment named Attachment E: Confidential Responses and mark as “Confidential” as indicated in Instructions to Offerors, Section 4.1)

Broadspire, because of its size and market presence, has occasionally paid fines or settlements for civil violations, such as workers’ compensation penalties or settlements to claimants for allegations of violations of an Unfair Claims Practices Act of a particular state. Broadspire has occasionally been required to resolve various employment-related complaints before state and federal agencies and has occasionally had regulatory matters relating to claim professional licensing.

As a third-party administrator, Broadspire is occasionally named in a lawsuit where an injured employee’s plan benefits have been denied. In most cases, Broadspire is indemnified by either the underlying account or the responsible insurance carrier as benefits are either self-insured by the underlying account or insured by a private carrier.

There is no pending litigation against Broadspire that would impact our operation, financial strength or the ability to meet the obligations of this proposal.

5. Is your company currently in default on any financing agreement with any bank, financial institution, or other entity? If yes, specify date(s), details, circumstances, and prospects for resolution. (If Offeror believes the information is confidential, include response in a separate attachment named Attachment E: Confidential Responses and mark as “Confidential” as indicated in Instructions to Offerors, Section 4.1)

No.

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3300 N Central Ave 14th Floor

Phoenix, AZ 85012

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6. Provide a copy of the company’s audited financial statements for the past two (2) years. (If Offeror believes the information is confidential, include response in a separate attachment named Attachment E: Confidential Responses and mark as “Confidential” as indicated in Instructions to Offerors, Section 4.1)

Please refer to Exhibit A for copies of our 10K and annual reports for 2019 and 2020.

7. Provide a financial rating of your company and any documentation that indicates the financial stability of your company.

Our banks do not require us to have a credit rating from the rating agencies due to our financial strength, liquidity and flexibility, as well as our strong performance demonstrated while our Term Loan obligations were outstanding. Crawford repaid in full, and retired, its syndicated Term Loan in December 2011, at which time our S&P and Moody's ratings were withdrawn as the obligations being rated were paid in full. We then entered into a revolving credit facility with our relationship banking group which is in place today. Revolving credit facilities are generally reserved for borrowers with investment grade credit profiles.

8. List any current recognized accreditations and the applicable modules.

Licenses, certifications and accreditation held include:

• The Broadspire Peer Review Services Department is a fully accredited URAC Independent Review Organization

(IRO)

• The Broadspire UM Department is certified in all jurisdictions which require state certification, as well as URAC certified

• Broadspire Case Management Services are URAC certified

• Broadspire’s parent company, Crawford & Company, has a fully implemented IT & Infrastructure Risk

Governance and Content Policy, as well as an Information Security Policy

SSAE16

• Security controls are audited every six months in compliance with SSEA 16 auditing standards SOC 1 and SOC 2 (RMIS) Type II reports.

Please refer to Exhibit B - 2021 BSI SOC 1 Type II attached. Please note that this service organization control report contains private and confidential information intended solely for the management of Crawford & Company, its customers, and the independent auditors of its customers. Use or reproduction of this report and/or its contents by any other party is strictly prohibited.

9. Provide the following information regarding your current LTD clients:

Number of Clients Number of Covered Lives

Insured 0 0

Self-insured 8 293,600

9.1. How many are public sector clients?

Broadspire is very familiar with the public sector clients. We are presently providing services to 45 public sector clients, including LTD administration for the Arizona State Retirement System. Our current book of

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SYSTEM

3300 N Central Ave 14th Floor

Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900 Part 3 of 3 – Instructions to Offerors, Offer Forms, and Exhibits

Page business boasts over 500 client programs that encompass virtually every industry and vertical market.

Programs include clients ranging from fewer than 100 employees to clients with workforces exceeding 200,000.

9.2. What is the largest public sector client?

Our largest public sector client is a state entity totaling more than five million dollars in annual revenues.

Account Management

10. Provide an organizational chart of the company’s employees to be utilized in support of the ASRS LTD Program for account management, claims administration, and customer service; clearly distinguish between client-specific claims administration and general service operations.

We look to preserve and maintain the claim/program management staff that we currently provide for the ASRS program. Please refer to Exhibit C – Organizational Chart.

10.1. Provide a brief biography, including name, function and responsibilities, location, years of industry service, and years with the company for any staff who will routinely be assigned to the ASRS account.

Our leadership staff has on average 10 years of disability and leave administration experience. We have extensive experience in the disability and leave industry working the ASRS account with complicated and unique program needs.

Brief biographies are provided below:

Barry O'Dowd, Account Executive

Barry is an Account Executive with Broadspire, who has experience partnering with large clients to successfully manage their disability programs, in working with management of all levels, and their employees.

Barry has many years of experience in the insurance and TPA industry, 20 plus of those years were working with the Arizona State Retirement in managing their LTD program and with Broadspire since 2016. He lives in Phoenix, Arizona where he enjoys volunteering, and spending time with family and friends.

Tameka Powell, Account Executive

Tameka Powell is an Account Executive with Broadspire, where she works to support each of her clients by developing an understanding of her client’s benefits and processes in order to better access their needs and develop an enhanced client relationship. Tameka has worked in the Account Management field for 6 years with a number of clients ranging in both size and demographic; including experience with government entities. Before transitioning into Account Management, Tameka worked within Human Resources focusing specifically in employee relations and benefits.

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3300 N Central Ave 14th Floor

Phoenix, AZ 85012

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Tameka has a Bachelor’s in Human Resources from Virginia Commonwealth University and her Master’s in Business Administration from Liberty University. She is a native of Virginia where she enjoys spending time with her family and friends.

Phil Syphers, Director, Disability and Leave Operations

Phillip Syphers is a Director for Disability and Absence Management for Broadspire. He acquired nineteen years of hands-on management experience and twenty-one years of insurance-industry experience with Aetna and The Hartford. With Phillip’s success, his vast experience of building and maintaining strong teams that work efficiently / effectively and meet / exceed customer standard. In addition, his leadership skills, industry knowledge of Short-Term/Long-Term Disability, Family Medical Leave, State Leaves, and Company Leaves.

Phillip had overseen more than 60 employees that managed over 16 plus TPA and National Accounts with Short-Term Disability, Leave of Absence, and Long-Term Disability products. He has been part of the sales and implementation of each of the clients. Phillip has been able to work cohesively with his clients to streamline their process, ensuring excellent customer service, and executing on the delivery of their products.

Diane Andrew, Team Manager

Diane Andrew has been with Broadspire for over 5 years handling STD and LTD claims with over 3 ½ years of customer service leadership experience. She has been with the ASRS account since the beginning and has led other teams with LTD clients, therefore, she understands the unique challenges these claims present.

She has been heavily involved in complex customer processes and has worked to improve efficiencies within her teams to improve the client experience.

Please refer to Exhibit D - ASRS Account Team Bios.

11. Will the account management team be 100% dedicated to the ASRS or will it have responsibility for other accounts? If not dedicated, how many clients will the team serve? How will you ensure there is sufficient coverage to meet ASRS’s needs?

We recommend and propose to continue to have co-managing account executives in support of the ASRS program. Account executive Barry O’Dowd will continue to be dedicated to the ASRS account and will remain as your day-to-day contact for the program. Alongside Barry, Tameka Powell, will continue to act as a direct backup. The account executives will stay in constant communication about the program so that each are able to act on the other’s behalf if needed. As a team, they will continue to work together with ASRS in providing the best possible coverage for the entire program.

12. Describe your company’s client account servicing approach. Specifically, address day-to-day contact, problem resolution process/authority, performance analysis, and IT-related issues.

Account executive Barry O’Dowd will remain as your day-to-day contact for the program. Alongside Barry, Tameka Powell, will continue to act as a direct backup. They will stay in constant communication about the

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SYSTEM

3300 N Central Ave 14th Floor

Phoenix, AZ 85012

ASRS Long-Term Disability Program Administration Solicitation Code: BPM003900 Part 3 of 3 – Instructions to Offerors, Offer Forms, and Exhibits

Page program so that each are able to act on the other’s behalf if needed. For any problem or issues that may arise, Barry, will be your main point of contact, who has access to all internal resources and teams as it relates to the presented problem. Barry and Tameka will continue to present the Programs Annual Health Assessment along with the Programs Monthly Plan Highlights.

13. Describe how your company tracks caseloads and how caseload standards are maintained for case managers, claims analysts, and claims examiners.

Caseloads are monitored through our claims management system, as well as reports available to support their efforts.

Our performance assurance analysts work closely with the claim specialists, team leads and account managers to ensure that our colleagues are trained and performing at expected service levels. Quality scores are reviewed on a quarterly basis to evaluate trends within the program and identify both individual and program level training opportunities. Our team leads provide technical/ jurisdictional direction and mentoring to our claims specialists and maintain follow-up diaries at claim specific scheduled intervals throughout the life of all claims to ensure appropriate activities are occurring to result in the best outcome on the claim.

Our case manager caseloads are maintained to be 140-150 open active claims.

14. Describe how you evaluate the performance of your disability management staff.

Broadspire Team Managers and leadership monitor activity daily: volume of new claims received by case manager, tasking due today or past-due, phone activity (ensure logged into our phone system to receive calls and within available status), etc.