ESBD_File_350505_01 - RFP 24-17906-KM.pdf

RFP 24-17906-KM

Employee Benefits Consultant/Broker Services

1. INSTRUCTIONS TO OFFERORS

1.1 Offerors may submit proposals electronically by uploading required documents at the City of

Lubbock’s partner’s website, Bonfire. Refer to Bonfire for Submission Instructions. This

Request for Proposals is for your convenience in submitting an offer for the specified services.

If submitting electronically, do not submit paper documents. If you choose to submit in hard copy, submit one original paper copy of your submittal to the office of the Director of

Purchasing and Contract Management:

Physical: Marta Alvarez, Director of Purchasing and Contract Management

City of Lubbock

1314 Avenue K, 9th Floor

Lubbock, Texas 79401

Mailing: Marta Alvarez, Director of Purchasing and Contract Management

City of Lubbock

P.O. Box 2000

Lubbock, Texas 79457

MARK ENVELOPE WITH THE SOLICITATION NUMBER, TITLE, AND DUE DATE/TIME

The City of Lubbock appreciates your time and effort in preparing your proposal. All offerors should familiarize themselves with the following Instructions to Offerors and General

Requirements, attached.

Sealed proposals and electronic submittals submitted through the Bonfire portal, shall be received until:

March 14, 2024 prior to 3:00 P.M.

Please allow time to upload required documentation. 24hrs in advance is recommended.

Offerors are responsible for making certain proposals are submitted to the Purchasing and

Contract Management Department.

Offerors are responsible for making certain proposals and proposed contracts are delivered to the

Purchasing and Contract Management Department. Mailing of a proposal does not ensure that the proposal will be delivered on time or delivered at all. If offeror does not hand deliver a proposal, we suggest that he/she use some sort of delivery service that provides a receipt. The

City of Lubbock assumes no responsibility for errant delivery of a proposal, including those relegated to a courier agent who fails to deliver in accordance with the time and receiving point specified.

1.3 Proposals will be accepted in person, by United States Mail, by United Parcel Service, or by private courier service. THE CITY WILL NOT ACCEPT FAX PROPOSALS.

1.4 Proposals may be withdrawn prior to the above scheduled time set for closing. Alteration made before RFP closing must be initialed by the offeror guaranteeing authenticity.

1.5 The City of Lubbock reserves the right to postpone the date and time for accepting proposals through an addendum.

Proposals may be withdrawn prior to the above scheduled time set for closing. A proposal will be subject to being considered irregular and may be rejected if it shows omissions, alterations of form, conditional alternate proposals, additions or alternates in lieu of the items specified, if the unit prices are obviously unbalanced (either in excess of or below reasonably expected values), or irregularities of any kind.

2. PRE-PROPOSAL MEETING - DELETED

3. CLARIFICATION OF REQUIREMENTS

3.1. It is the intent and purpose of the City of Lubbock that this request permits competitive proposals.

It is the offeror’s responsibility to advise the City of Lubbock Director of Purchasing and

Contract Management if any language, requirements, etc., or any combinations thereof, inadvertently restricts or limits the requirements stated in this RFP to a single source. Such notification must be submitted in writing and must be received by the City of Lubbock

Purchasing Office no later than five (5) calendar days prior to the proposal closing date. A review of such notifications will be made.

3.2 ALL REQUESTS FOR ADDITIONAL INFORMATION OR CLARIFICATION

CONCERNING THIS REQUEST FOR PROPOSAL (RFP) MUST BE SUBMITTED IN

WRITING NO LATER THAN FIVE (5) CALENDAR DAYS PRIOR TO THE PROPOSAL

CLOSING DATE AND ADDRESSED TO:

Kiara Morgan, Buyer IV

City of Lubbock

1314 Avenue K, 9th Floor

Lubbock, TX 79401

Fax: (806) 775-2164

Email: KMorgan@Mylubbock.us mailto:KMorgan@Mylubbock.us

4. CONTRACT TERM

4.1. The contract shall be for a term of one (1) year, with the option of four (4), one year extensions, said date of term beginning upon formal approval. This Contract will renew automatically for the additional terms, unless either Party gives 90-day written notice to terminate the Contract.

Actual usage may be more or less. Order quantities will be determined by actual need. The City of

Lubbock does not guarantee any specific amount of compensation, volume, minimum, or maximum amount of services under this bid and resulting contract. The Contractor must maintain the insurance coverage required during the term of this contract including any extensions. It is the responsibility of the Contractor to ensure that valid insurance is on file with the Purchasing and

Contract Management Department as required by contract or contract may be terminated for non-compliance.

5. PRICE INCREASE

5.1. Prices quoted shall be guaranteed for a period for six (6) months upon City approval. The rate may be adjusted at the City’s discretion for the effective change in Consumer Price Index (CPI) or

Product Price Index (PPI) as appropriate.

5.2. Further, if the Contractor can provide documentation for actual charges for material, labor, etc. that demonstrates that the change in CPI or PPI is not sufficient, the Contractor shall provide such documentation to the City, and at the City’s sole discretion, the contractual rate may be further adjusted. If agreement regarding a new rate cannot be reached, the City shall terminate at the end of the current contract period.

5.3. If an adjustment to pricing is granted under this section, the Contractor must provide the Director of Purchasing and Contract Management written, quarterly documentation to justify the ongoing adjustment. If no such documentation is timely received, the rate will automatically revert to the initial, awarded rate.

6. TERMINATION OF CONTRACT

6.1. This contract shall remain in effect until the first of the following occurs: (1) the expiration date,

(2) performance of services ordered, or (3) termination of by either party with a 30 day written notice. The City of Lubbock reserves the right to award the canceled contract to the next lowest and best bidder as it deems to be in the best interest of the city.

7. ADDENDA & MODIFICATIONS

7.1. The City of Lubbock reserves the right to postpone the date and time for accepting proposals through an addendum.

7.2. Any changes, additions, or clarifications to the RFP are made by ADDENDA information available over the Internet at https://ci-lubbock-tx.bonfirehub.com/portal/. We strongly suggest that you check for any addenda a minimum of forty-eight hours in advance of the response deadline. BUSINESSES WITHOUT INTERNET ACCESS may use computers available at most public libraries.

7.3. Any offeror in doubt as to the true meaning of any part of the RFP or other documents may request an interpretation thereof from the Purchasing and Contract Management Department. At the request of the offeror, or in the event the Purchasing and Contract Management Department deems the interpretation to be substantive, the interpretation will be made by written addenda issued by the Purchasing and Contract Management Department. Such addenda issued by the Purchasing https://ci-lubbock-tx.bonfirehub.com/portal/ http://library.ci.lubbock.tx.us/ and Contract Management Department will be available over the Internet at https://ci-lubbock-tx.bonfirehub.com/portal/ and will become part of the proposal package having the same binding effect as provisions of the original RFP. No verbal explanations or interpretations will be binding.

In order to have a request for interpretation considered, the request must be submitted in writing and must be received by the City of Lubbock Purchasing and Contract Management Department no later than five (5) days prior to the proposal closing date.

7.4. The City does not assume responsibility for the receipt of any addendum sent to offerors.

8. EXAMINATION OF DOCUMENTS AND REQUIREMENTS

8.1. Each offeror shall carefully examine all RFP documents and thoroughly familiarize itself with all requirements prior to submitting a proposal to ensure that the proposal meets the intent of this

RFP.

8.2. Before submitting a proposal, each offeror shall be responsible for making all investigations and examinations that are necessary to ascertain conditions and requirements affecting the requirements of this RFP. Failure to make such investigations and examinations shall not relieve the offeror from obligation to comply, in every detail, with all provisions and requirements of the

Request for Proposal.

8.3. All proposals, responses, inquiries, or correspondence relating to or in reference to this RFP, and all electronic media, reports, charts, and other documentation submitted by offerors shall become the property of the City of Lubbock when received.

9. PROPOSAL PREPARATION COSTS

9.1. Issuance of this RFP does not commit the City of Lubbock, in any way, to pay any costs incurred in the preparation and submission of a proposal.

9.2. The issuance of this RFP does not obligate the City of Lubbock to enter into contract for any services or equipment.

9.3. All costs related to the preparation and submission of a proposal shall be paid by the proposer.

10. TRADE SECRETS, CONFIDENTIAL INFORMATION AND THE TEXAS PUBLIC

INFORMATION ACT

10.1. If you consider any portion of your proposal to be privileged or confidential by statute or judicial decision, including trade secrets and commercial or financial information, clearly identify those portions.

10.2. Proposals will be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the proposals secret during negotiations. All proposals are open for public inspection after the contract is awarded, but trade secrets and confidential information in the proposals are not open for inspection. Tex. Loc. Govt. Code 252.049(b)

10.3. The City of Lubbock will honor your notations of trade secrets and confidential information and decline to release such information initially, but please note that the final determination of whether a particular portion of your proposal is in fact a trade secret or commercial or financial information that may be withheld from public inspection will be made by the Texas Attorney General or a court of competent jurisdiction. In the event a public information request is received for a portion of your proposal that you have marked as being confidential information, you will be notified of such request and you will be required to justify your legal position in writing to the Texas Attorney

General pursuant to Section 552.305 of the Government Code. In the event that it is determined by opinion or order of the Texas Attorney General or a court of competent jurisdiction that such information is in fact not privileged and confidential under Section 552.110 of the Government

Code and Section 252.049 of the Local Government Code, then such information will be made available to the requester.

10.4. Marking your entire proposal CONFIDENTIAL/PROPRIETARY is not in conformance with the

Texas Public Information Act.

10.5. Pursuant to Section 552.234(c) of the Texas Government Code, submit your open records request using the link provided below.

https://lubbocktx.govqa.us/WEBAPP/_rs/(S(quiyirflbtihahjnycegwpcs))/SupportHome.aspx

10.6. For more information, please see the City of Lubbock Public Information Act website at:

https://ci.lubbock.tx.us/pages/public-information-act

11. DISADVANTAGED BUSINESS ENTERPRISE (DBE) REQUIREMENTS

11.1. The City of Lubbock hereby notifies all offerors that in regard to any contract entered into pursuant to this RFP, Disadvantaged Business Enterprises (DBE's) will be afforded equal opportunities to submit proposals and will not be discriminated against on the grounds of race, color, sex, disability, or national origin in consideration of an award.

11.2. A DBE is defined as a small business concern which is at least 51% owned and controlled by one or more socially and economically disadvantaged individuals, or in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more socially and economically disadvantaged individuals. Socially and economically disadvantaged include Women, Black

Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, and Asian-Indian

Americans.

12. HISTORICALLY UNDERUTILIZED BUSINESS (HUB) REQUIREMENTS

12.1. The City of Lubbock hereby notifies all offerors that in regard to any contract entered into pursuant to this RFP, Historically Underutilized Businesses (HUB's) will be afforded equal opportunities to submit proposals and will not be discriminated against on the grounds of race, color, sex, disability, or national origin in consideration of an award.

12.2. A HUB is defined as a small business concern which is at least 51% owned and controlled by one or more socially and economically disadvantaged individuals, or in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more socially and economically disadvantaged individuals. Socially and economically disadvantaged include Women, Black

Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, and Asian-Indian

Americans.

13. CONFLICT OF INTEREST

13.1. The Offeror shall not offer or accept gifts or anything of value nor enter into any business arrangement with any employee, official or agent of the City of Lubbock.

https://lubbocktx.govqa.us/WEBAPP/_rs/(S(quiyirflbtihahjnycegwpcs))/SupportHome.aspx https://ci.lubbock.tx.us/pages/public-information-act

13.2. By signing their proposal, the offeror certifies and represents to the City the offeror has not offered, conferred or agreed to confer any pecuniary benefit or other thing of value for the receipt of special treatment, advantage, information, recipient's decision, opinion, recommendation, vote or any other exercise of discretion concerning this RFP.

13.3. It is not necessary to fill out the CIQ Form unless you have a business relationship that might cause a conflict of interest with the City of Lubbock

13.4. Effective January 1, 2006, Chapter 176 of the Texas Local Government Code requires that any vendor or person considering doing business with a local government entity disclose in the

Questionnaire, Form CIQ, the vendor or person’s affiliation or business relationship that might cause a conflict of interest with a local government entity. By law, the questionnaire must be filed with the records administrator of the City of Lubbock not later than the Seventh business day after the date the person becomes aware of the facts that require the statement to be filed.

The questionnaire can be found at:

https://www.ethics.state.tx.us/forms/conflict/

For the City of Lubbock, these forms should be filed with the City Secretary’s Office, P.O. Box

2000, Lubbock, Texas, 79457

See Section 176.006, Local Government Code:

http://www.statutes.legis.state.tx.us/SOTWDocs/LG/htm/LG.176.htm.

A person commits an offense if the person violates Section 176.006, Local Government Code.

An offense under this section is a Class C misdemeanor.

14. CERTIFICATE OF INTERESTED PARTIES

14.1. Effective January 1, 2016, Section 2252.908, as amended, of Chapter 2252 of the Texas

Government Code requires certain business entities to submit an electronic disclosure form to the

Texas Ethics Commission before entering into a contract with a local government entity when any of the following apply:

1) Contract requires an action or vote by the City Council (governing body); OR

2) Contract value is $1 Million or greater; OR

3) Contract is for services that would require a person to register as a lobbyist under Chapter

305 of the Government Code.

This must be done before executing the contract. The disclosure form may be found at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm. You must log in and create an account the first time you fill out the form. Tutorial videos on how to log in for the first time and how to fill out the form can be found through the link above. After you electronically submit the disclosure form, a screen will come up confirming the submission and assigning a certificate number. Then, you must print the form, have an authorized agent complete the declaration and sign, and provide it to the City (scanned email copy is acceptable).

14.2 A contract described by Subsection (b) of Government Code Section 2252.908 entered into by a governmental entity or state agency is voidable for failure to provide the disclosure of interested parties required by this section only if: (1) the governmental entity or state agency submits to the business entity written notice of the business entity ’s failure to provide the required disclosure;

https://www.ethics.state.tx.us/forms/conflict/ http://www.statutes.legis.state.tx.us/SOTWDocs/LG/htm/LG.176.htm https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm and (2) the business entity fails to submit to the governmental entity or state agency the required disclosure on or before the 10th business day after the date the business entity receives the written notice under Subdivision (1).

15. ANTI-LOBBYING PROVISION

15.1. DURING THE PERIOD BETWEEN PROPOSAL SUBMISSION DATE AND THE

CONTRACT AWARD, PROPOSERS, INCLUDING THEIR AGENTS AND

REPRESENTATIVES, SHALL NOT DIRECTLY DISCUSS OR PROMOTE THEIR

PROPOSAL WITH ANY MEMBER OF THE LUBBOCK CITY COUNCIL OR CITY STAFF

EXCEPT UPON THE REQUEST OF THE CITY OF LUBBOCK PURCHASING

DEPARTMENT IN THE COURSE OF CITY-SPONSORED INQUIRIES, BRIEFINGS,

INTERVIEWS, OR PRESENTATIONS.

15.2. This provision is not meant to preclude offerors from discussing other matters with City Council members or City staff. This policy is intended to create a level playing field for all potential offerors, assure that contract decisions are made in public, and to protect the integrity of the RFP process. Its purpose is to stimulate competition, prevent favoritism and secure the best work and materials at the lowest practicable price, for the best interests and benefit of the taxpayers and property owners. Violation of this provision may result in rejection of the offeror's proposal.

16. AUTHORIZATION TO BIND SUBMITTER OF PROPOSAL

16.1. Proposals must show vendor name and address of offeror. The original proposal must be manually signed by an officer of the company having the authority to bind the submitter to its provisions.

Person signing proposal must show title or AUTHORITY TO BIND THEIR FIRM IN A

CONTRACT. Failure to manually sign proposal will disqualify it.

17. ABOUT THIS DOCUMENT

17.1. This document is a Request for Proposal. It differs from an Invitation to Bid in that the City of

Lubbock is seeking a solution, as described in the following General Requirements section, not a bid/quotation meeting firm specifications for the lowest price. As such, the lowest price proposed will not guarantee an award recommendation. Sealed proposals will be evaluated based upon criteria formulated around the most important features of a product or service, of which quality, testing, references, availability or capability, may be overriding factors, and price may not be determinative in the issuance of a contract or award. The proposal evaluation criteria should be viewed as standards that measure how well an offeror's approach meets the desired requirements and needs of the City of Lubbock. Those criteria that will be used and considered in evaluation for award are set forth in this document. The City will thoroughly review all proposals received. The City will also utilize its best judgment when determining whether to schedule a pre-proposal conference (before proposals are accepted), or meetings with offerors (after receipt of all proposals). A Purchase Order/Contract will be awarded to a qualified offeror submitting the best proposal. The City reserves the right to select, and subsequently recommend for an award, the proposed service which best meets its required needs, quality levels, and budget constraints.

18. EVALUATION PROCESS

18.1. All proposals will be evaluated by an evaluation committee and may include senior management representatives, a financial officer, and/or an independent consultant.

18.2. Respondents to this RFP may be required to submit additional information that the City may deem necessary to further evaluate the offeror’s qualifications.

18.3. The committee will evaluate and numerically score each proposal in accordance with the evaluation criteria included in the Request for Proposal.

18.4. The committee will arrive at a short list of the top respondents and these short-listed respondents may be scheduled for a structured oral presentation and interview. Such presentations will be at no cost to the City of Lubbock. At the end of the oral presentation and interview, the evaluation of the short-listed respondents will be completed. The oral interview may be recorded and/or videotaped.

19. SELECTION

19.1. Selection shall be based on the responsible offeror(s) whose proposal(s) is/are determined to be the most advantageous to the City of Lubbock considering the relative importance of evaluation factors included in this RFP.

19.2. The successful offeror(s) will be expected to sign a contract substantially like that in the example provided.

19.3. NO INDIVIDUAL OF ANY USING DEPARTMENT HAS THE AUTHORITY TO LEGALLY

AND/OR FINANCIALLY COMMIT THE CITY TO ANY CONTRACT, AGREEMENT OR

PURCHASE ORDER FOR GOODS OR SERVICES, UNLESS SPECIFICALLY

SANCTIONED BY THE REQUIREMENTS OF THIS REQUEST FOR PROPOSAL.

20. EQUAL EMPLOYMENT OPPORTUNITY

20.1. Offeror agrees that it will not discriminate in hiring, promotion, treatment, or other terms and conditions of employment based on race, sex, national origin, age, disability, or in any way a violation of Title VII of 1964 Civil Rights Act and amendments, except as permitted by said laws.

21. NON-APPROPRIATION

21.1. All funds for payment by the City under this contract are subject to the availability of an annual appropriation for this purpose by the City. In the event of non-appropriation of funds by the City

Council of the City of Lubbock for the goods or services provided under the contract, the City will terminate the contract, without termination charge or other liability, on the last day of the then-current fiscal year or when the appropriation made for the then-current year for the goods or services covered by this contract is spent, whichever event occurs first. If at any time funds are not appropriated for the continuance of this contract, cancellation shall be accepted by the Seller on thirty (30) days prior written notice, but failure to give such notice shall be of no effect and the

City shall not be obligated under this contract beyond the date of termination.

22. PROTEST

22.1. All protests regarding the RFP process must be submitted in writing to the City Director of

Purchasing and Contract Management within 5 working days after the protesting party knows of the occurrence of the action which is protested relating to advertising of notices deadlines, proposal opening and all other related procedures under the Local Government Code, as well as any protest relating to alleged improprieties with the RFP process. This limitation does not include protests relating to staff recommendations as to award of contract. Protests relating to staff recommendations may be directed to the City Manager. All staff recommendations will be made available for public review prior to consideration by the City Council as allowed by law.

FAILURE TO PROTEST WITHIN THE TIME ALLOTTED SHALL CONSTITUTE A

WAIVER OF ANY PROTEST.

23. THE CITY RIGHT TO AUDIT

23.1. At any time during the term of the contract, or thereafter, the City, or a duly authorized audit representative of the City or the State of Texas, at its expense and at reasonable times, reserves the right to audit Contractor's records and books relevant to all services provided to the City under this Contract. In the event such an audit by the City reveals any errors or overpayments by the

City, Contractor shall refund the City the full amount of such overpayments within thirty (30) days of such audit findings, or the City, at its option, reserves the right to deduct such amounts owing the City from any payments due Contractor.

24. NON-ARBITRATION

24.1. The City reserves the right to exercise any right or remedy available to it by law, contract, equity, or otherwise, including without limitation, the right to seek any and all forms of relief in a court of competent jurisdiction. Further, the City shall not be subject to any arbitration process prior to exercising its unrestricted right to seek judicial remedy. The remedies set forth herein are cumulative and not exclusive, and may be exercised concurrently. To the extent of any conflict between this provision and another provision in, or related to, this document, this provision shall control.

25. ASSIGNING OR SUBLETTING THE CONTRACT

25.1. The Contractor shall not assign or sublet the contract, or any portion of the contract, without written consent from the Director of Purchasing and Contract Management. Should consent be given, the Contractor shall insure the Subcontractor or shall provide proof on insurance from the

Subcontractor that complies with all contract Insurance requirements.

26. TEXAS GOVERNMENT CODE SECTION 2252.152

26.1. Contracts with Companies Engaged in Business with Iran, Sudan, or Foreign Terrorist

Organization Prohibited. Pursuant to Section 2252.152 of the Texas Government Code, prohibits the City from entering into a contract with a vendor that is identified by The Comptroller as a company known to have contracts with or provide supplies or service with Iran, Sudan or a foreign terrorist organization.

27. TEXAS GOVERNMENT CODE SECTION 2271.002

27.1. Pursuant to Section 2271.002 of the Texas Government Code, a) This section applies only to a contract that: (1) is between a governmental entity and a company with 10 or more full-time employees; and (2) has a value of $100,000 or more that is to be paid wholly or partly from public funds of the governmental entity. (b) A governmental entity may not enter into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract.

28. TEXAS PUBLIC INFORMATION ACT

28.1. The requirements of Subchapter J, Chapter 552, Government Code, may apply to this contract and the contractor or vendor agrees that the contract can be terminated if the contractor or vendor knowingly or intentionally fails to comply with a requirement of that subchapter. To the extent

Subchapter J, Chapter 552, Government Code applies to this agreement, Contractor agrees to: (1) preserve all contracting information related to the contract as provided by the records retention requirements applicable to the governmental body for the duration of the contract; (2) promptly provide to the governmental body any contracting information related to the contract that is in the custody or possession of the entity on request of the governmental body; and (3) on completion of the contract, either: (A) provide at no cost to the governmental body all contracting information related to the contract that is in the custody or possession of the entity; or (B) preserve the contracting information related to the contract as provided by the records retention requirements applicable to the governmental body.

29. CONFIDENTIALITY

29.1. The Contractor shall retain all information received from or concerning the City and the City's business in strictest confidence and shall not reveal such information to third parties without prior written consent of the City, unless otherwise required by law.

30. INDEMNITY

30.1. The Contractor shall indemnify and save harmless the city of Lubbock and its elected officials, officers, agents, and employees from all suits, actions, losses, damages, claims, or liability of any kind, character, type, or description, including without limiting the generality of the foregoing, all expenses of litigation, court costs, and attorney's fees, for injury or death to any person, or injury to any property, received or sustained by any person or persons or property, to the extent arising out of, related to or occasioned by, the negligent acts of the Contractor, its agents, employees, and/or subcontractors, related to the performance, operations or omissions under this agreement and/or the use or occupation of city owned property. The indemnity obligation provided herein shall survive the expiration or termination of this agreement.

31. SUSPENSION AND DEBAREMENT

31.1. Contractor certifies that at the time of submission of its bid, Contractor was not on the federal government’s list of suspended, ineligible or debarred contractors and that Contractor has not been placed on this list between the time of bid submission and the time of execution of the

Contract. If Contractor is placed on this list during the term of the contract, Contractor shall notify the Lubbock County Director of Purchasing. False certification or failure to notify may result in termination of the contract for default.

31.2. Federal Law (A-102 Common Rule and OMB Circular A-110) prohibits non-Federal entities from contracting with or making sub-awards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred. Covered transactions include procurement contracts for goods or services equal to or in excess of $25,000 and all non-procurement transactions (e.g., sub-awards to sub-recipients). Contractors receiving individual awards of $25,000 or more and all sub-recipients must certify that their organization and its principals are not suspended or debarred by a Federal agency. Before an award of $25,000 or more can be made to your firm, you must certify that your organization and its principals are not suspended or debarred by a Federal agency.

31.3. By submitting a proposal in regard to this request, this firm certifies that neither this firm nor its principals are suspended or debarred by a Federal agency.

32. INSURANCE REQUIREMENTS

32.1. Prior to the approval of this contract by the City, the Contractor shall furnish a completed

Insurance Certificate to the City, which shall be completed by an agent authorized to bind the named underwriter(s) to the coverages, limits, and termination provisions shown thereon, and which shall furnish and contain all required information referenced or indicated thereon. THE

CITY SHALL HAVE NO DUTY TO PAY OR PERFORM UNDER THIS CONTRACT UNTIL

SUCH CERTIFICATE SHALL HAVE BEEN DELIVERED TO THE CITY.

32.2. The City reserves the right to review the insurance requirements of this section during the effective period of the contract and to require adjustment of insurance coverages and their limits when deemed necessary and prudent by the City based upon changes in statutory law, court decisions, or the claims history of the industry as well as the Contractor.

32.3. Subject to the Contractor's right to maintain reasonable deductibles in such amounts as are approved by the City, the Contractor shall obtain and maintain in full force and effect for the duration of this contract, and any extension hereof, at Contractor's sole expense, insurance coverage written by companies approved by the State of Texas and acceptable to the City, in the following type(s) and amount(s):

Commercial Liability Requirements: $1M occurrence / $2M aggregate (can be combined with an Excess Liability to meet requirement). CGL is required in ALL contracts. It is perhaps the most important of all insurance policies in a contractual relationship. It insures the Contractor has broad liability coverage for contractual activities and for completed operations. Commercial General

Liability to include Products – Completion/OP, Personal and Advertising Injury, Contractual

Liability, Fire Damage (any one fire), and Medical Expenses (any one person).

Auto Liability Requirements: $1M/occurrence is needed

Workers Compensation Requirements: Statutory. If the vendor is an independent contractor with no employees and are exempt from providing Workers' Compensation coverage, they must sign a waiver (obtained from COL Purchasing) and include a copy of their driver's license.

Employer Liability ($1M) is required with Workers Compensation.

Cyber Liability Requirements: $2M of coverage is needed for Cyber Liability

Technology Errors and Omissions Requirements: $3M per claim

Crime Protection Coverage Requirements: Employee Dishonesty or Fidelity Bond coverage

REQUIRED in an amount equal to the maximum exposure.

• The City of Lubbock (including its officials, employees and volunteers) shall be afforded additional insured status on a primary and non-contributory basis on all liability policies except professional liabilities and workers' comp.

• Waivers of Subrogation are required for CGL, AL, and WC.

• To Include Products of Completed Operations endorsement.

• Carrier will provide a 30-day written notice of cancellation, 10-day written notice for non-payment.

• Carriers must meet a A.M. Best rating of A- or better.

• Subcontractors must carry same limits as listed above.

IMPORTANT: POLICY ENDORSEMENTS

The Contractor will provide copies of the policies without expense, to the City and all endorsements thereto and may make any reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any of such policies). Upon such request by the City, the Contractor shall exercise reasonable efforts to accomplish such changes in policy coverages, and shall pay the cost thereof. Any costs will be paid by the Contractor.

REQUIRED PROVISIONS

The Contractor agrees that with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment, the following required provisions:

a. Name the City of Lubbock and its officers, employees, and elected representatives as additional insureds, (as the interest of each insured may appear) as to all applicable coverage;

b. Provide for 30 days notice to the City for cancellation, nonrenewal, or material change;

c. Provide for notice to the City at the address shown below by registered mail;

d. The Contractor agrees to waive subrogation against the City of Lubbock, its officers, employees, and elected representatives for injuries, including death, property damage, or any other loss to the extent same may be covered by the proceeds of insurance;

e. Provide that all provisions of this contract concerning liability, duty, and standard of care together with the indemnification provision, shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policies.

NOTICES

The Contractor shall notify the City in the event of any change in coverage and shall give such notices not less than 30 days prior the change, which notice must be accompanied by a replacement CERTIFICATE OF

INSURANCE.

All notices shall be given to the City at the following address:

Marta Alvarez, Director of Purchasing & Contract Management

City of Lubbock

1314Avenue K, 9th Floor

Lubbock, Texas 79401

Approval, disapproval, or failure to act by the City regarding any insurance supplied by the Contractor shall not relieve the Contractor of full responsibility or liability for damages and accidents as set forth in the contract documents. Neither shall the bankruptcy, insolvency, or denial of liability by the insurance company exonerate the Contractor from liability.

GENERAL REQUIREMENTS

Scope of Services

1| Intent 2| Scope of Work

a. Benefits Philosophy

b. Health Plan Structure

c. Services

d. Claims Experience

3| Evaluation Criteria

4| Proposal Format

5| Exhibits List

• Exhibit A - 2024 Employee Benefits Guide

• Exhibit B - 2024 Retiree Non- Medicare Open Enrollment Guide

• Exhibit C - 2024 Employee & Retiree Non-Medicare Monthly Rates

• Exhibit D - 2024 Medical Plan Summary

• Exhibit E - Plan Claims and Census Information

Note*** To receive a copy of this census information an email must be sent to Dprice@mylubbock.us.

• Exhibit F - Confidentiality and Non-Disclosure Agreement

• Exhibit G- Health Plan Presentation

• Exhibit H- Medical RX Paid Claims Experience by Month

• Exhibit I - Last Three Participants Enrollment by Month

• Exhibit J - Large Claimants with Paid Claims over 25% (2021)

• Exhibit K - Large Claimants with Paid Claims over 25% (2022)

• Exhibit L - Large Claimants with Paid Claims over 25% (2023)

• Exhibit M - BCBS Pharmacy Plan Description, pages 64-108

• Exhibit N - Stop Loss Policy

Table of Contents mailto:Dprice@mylubbock.us

• Exhibit R – BCBS Davis Vision Contract

• Exhibit S - BCBS Basic Life Insurance Policy

• Exhibit T - BCBS LTD Disability Policy

• Exhibit U - Voluntary Worksite Policy

• Exhibit V - Most Recent Invoices for all Lines of Coverage

City of Lubbock, TX

RFP 24-17906-KM

Employee Benefits Consultant/Broker Services

GENERAL REQUIREMENTS

1. INTENT

The City is seeking an Employee Benefits Consultant/Broker to assist with employee benefit plans and services and is looking for continuity of services in the rapidly changing area of employee benefits. The

City is interested in an Employee Benefits Consultant/Broker who can offer creative, innovative approaches with a proven track record that allows the City to maintain quality programs and contain or reduce costs. Core services shall include, but are not limited to, preparing specifications, soliciting qualified providers, negotiating agreements/costs, evaluating and monitoring plan performance, preparing actuarial studies and strategic planning, recommending plan structure changes to maximize plan savings, monitoring compliance requirements, and ensuring market competitiveness for the City's health and welfare benefit plans. Additional services shall include premium rate analysis, communication plans, and introducing the City to innovative programs designed to improve the City employees' health while assisting in cost savings. We are looking for a consultant who can partner with us to help identify the best providers and practices to help ensure our employees are getting the best care, which will provide better outcomes and ultimately lead to healthier members and lower costs. The 2024 plan year was ushered in with significant increases to our health plan contributions. As part of the response, please provide your company's perspective on the top three (3) things that we can and should do to reduce overall healthcare costs for the City.

2. SCOPE OF WORK

1. Benefits Philosophy As part of this section, it is important to communicate where the City of Lubbock has come from and its direction. To do this, we will start with 2018. This date is the last time plan design changes were made to the current plan until 2024. From 2018 to 2023, no changes in healthcare plan design were made. During the last five years, cost trends for medical have been 7.2 percent, pharmacy 5.7 percent, and dental 6.2 percent annually. In the most recent three-year period, these costs rose 3.2%, 5.7%, and 4.9% respectively. The health fund budget has risen from $30,961.423 million in 2019 to $42,179,337 million in 2024. Nearly 85% of any municipality's budget is salaries and benefits.

With increasing pressure on wages, growing benefit costs take away from the City's ability to be competitive in recruitment and retention.

Therefore, successful management of the City's health fund costs is essential to the City being able to hire and retain the talent needed to serve the citizenry of Lubbock. To achieve this end, the City has recently developed a philosophy that can be summed up in six words: Better Care. Better Benefit.

Lower Cost.

We believe that the proper management of the City's health fund is to steer employees to better providers and provide a higher quality of care that will produce an overall lower cost of care. With the employees doing their part, it is incumbent upon the Benefits Management team to find ways to more effectively manage the elements (i.e., pharmacy, network, plan design, wellness, etc.) of the health plan. The City is seeking a Consultant who will provide good ideas and execution and will understand the City's culture.

2. Health Plan Structure As of January 2024, the City has approximately 2,458 full-time health and welfare benefit employees; 1,592 are full-time civilians (average age of 43), and 866 are Civil Service employees

(average age of 45.8). Approximately 790 retirees and surviving spouses are eligible for City health and dental coverage.

The City pays 96% of the employee-only health premium and 71% of health premiums for employees with spouses, children, and families. For retirees, the City pays 66% of the retiree-only health premium, 70% for retirees' spouses, 65% for children, and 74% for families. The City ceases to provide coverage to retirees aged 65 and who are Medicare-eligible. Instead, the City provides a

$150 stipend to these retirees through a Health Reimbursement Arrangements (HRA) plan. The City also provides coverage for qualified survivors of vested employees or retirees.

The City has contracted with Marsh & McLennan Agency for benefits consulting services since

November 1, 2016, and the contract will expire on May 31, 2024.

The following attachments highlight the features of the Health Center and Consumer Choice (with a

Health Savings Account) Plans for active employees and pre-65 retirees; Medicare-eligible retirees enroll in a fully-insured Preferred Provider Organization Medicare Advantage Prescription Drug

Plan.

• Exhibit A – 2024 Employee Benefits Guide

• Exhibit B – 2024 Retiree Non-Medicare Open Enrollment Guide

• Exhibit C – 2024 Employee Monthly Rates and 2024 Retiree Non-Medicare Monthly Rates

• Exhibit D – 2024 Medical Plan Summary

• Exhibit E – Plan Claims and Census Information

Note: Access to the Plan Claims and Census Information File. If a bidder wants to review the

Census Claims data, please contact Donna Price-English, Benefits Manager to obtain access to the

Census Information File. An email must be sent to Dprice@mylubbock.us. Please list your name, title, and company.

A signed Confidentiality and Non-Disclosure Agreement, must be signed and returned to the City before you will be able to access the Plan Claims and Census Information. See Exhibit F for a copy of the Confidentiality and Non-Disclosure Agreement.

In 2023, the medical plan was analyzed (Exhibit G), and the philosophy of providing better care to employees to improve employee health and reduce costs was introduced. Along with this philosophy, eleven recommendations were presented to management. Of those recommendations, six were adopted:

• Adopting BlueCross BlueShield of Texas Flex-Access Program to reduce pharmacy costs for the City and employees.

• Eliminating Airrosti co-pay to steer employees to this provider and reduce orthopedic costs.

• Change in Emergency Room benefits to steer employees to urgent care providers.

• Addition of Teledoc benefit to help address after-hours care

• Introduction of 2nd. M.D. to ensure employees had access to the best care possible.

• Facilitating on-site employee services to bring health care to employees to be proactive around employee health status.

The City has no formal Wellness Program.

3. General Consulting Services

3.1. The Consultant shall confer with the City as needed regarding benefit programs;

3.2. Establish a strategy for benefits annually and three to five years in the future. Consider trends, prospective legislations, new delivery systems, and geographic healthcare practices to make long-term projections.

3.3. The Consultant shall assist in the review of health and welfare benefit programs and their cost effectiveness, including the evolution of innovative solutions;

3.4. The Consultant shall provide innovative solutions to current benefit concerns;

3.5. The Consultant shall provide a dashboard to allow the City to review claims data on an aggregate basis to look at trends in medical conditions to assist in deciding what benefits to target;

3.6. The Consultant shall assist in the general management of benefit plans, including but not limited to developing and monitoring administrative processes to ensure performance by selected Consultant(s);

3.7. The Consultant shall evaluate benefit trends and conduct benchmark surveys and market surveys as needed;

3.8. The Consultant shall act as a contact between insurance agents and representatives who make inquiries regarding the City's health and welfare benefits offered through the City;

3.9. The Consultant shall review the performance of the vendor(s) and shall negotiate contract renewal rates for health and welfare benefit plans;

3.10. The Consultant shall assist in drafting and redrafting the health care plan's Plan Document and its Summary Plan Description;

3.11. The Consultant shall attend and make presentations at meetings of any employee committee or management regarding employee/retiree benefits;

3.12. The Consultant shall attend, participate, and make presentations at City Council and or Council

Committee meetings as needed;

3.13. The Consultant shall perform actuarial studies to determine the long-term cost/savings of benefits, benefit revisions, and proposed benefit enhancements and present findings;

3.14. The Consultant shall develop effective benefit communication plans and materials for employees and retirees;

3.15. The Consultant shall provide general consultation on voluntary benefit products and health and welfare benefits or wellness program incentives;

3.16. The Consultant shall assist with the preparation of Federal and State agency reports;

3.17. The Consultant shall provide information and advise the City on Federal and State regulations impacting benefit plans.

3.18. As needed, provide on-site training to City staff regarding regulatory updates and/or Best

Practice plans for effective benefits plan administration.

3.19. Provide communication development and support for new benefit offerings and/or changes to existing benefit offerings. Review and disseminate information to staff on new or revised State and Federal legislation that impacts benefits programs.

3.20. Assisted in developing communication materials and tools for conducting open enrollment, dependent verification audits, or other related activities.

3.21. Provide communication development and support for new benefit offerings and/or changes to existing benefit offerings.

4. Actuarial Services/Financial Services

4.1. The Consultant shall analyze the funding requirements of each plan, including funding levels based on employee and employer contribution policy, projected claims, and other plan expenses;

4.2. The Consultant shall provide actuarial services to assist the City in evaluating the differences, including the relative value and relative cost, between various benefit plan designs;

4.3. The Consultant shall analyze paid claims, losses, and revenue projections monthly.

4.4. The Consultant shall provide actuarial/financial services, benefit-consulting services, examine reports of exposures, expenses, and paid losses at appropriate intervals to determine patterns of risk and assure conformity of the Consultant to the proposal;

4.5. The Consultant shall assist the City in the review, analysis, forecasting, and reporting of financial plan solvency, which will include Government Accounting Standards Board (GASB) evaluations and shall prepare incurred but not reported (IBNR) reports every quarter;

4.6. The Consultant shall assist the City with evaluating actual plan performance and the impact of benefit, financial, and administrative modifications to the City's sponsored plans and with compliance with contract requirements.

4.7. Act as liaison between the City and insurance providers.

4.8. Provide consultation on plan interpretation and problem resolution; provide customer service and staff assistance; assist in vendor disputes; interpret contracts and services, changes, and general troubleshooting.

4.9. Act as an advocate between the City and benefit providers on unresolved issues if needed.

4.10. Assist the City in proactively mitigating negative impacts or disruption of services to participants from any benefit and/or provider network changes.

4.11. Negotiate rates and costs with providers to ensure the City is obtaining the best price for services/products.

5. Contracting & RFPs

5.1. The Consultant shall support the City with the design, development, preparation, and review of contracts and RFPs for new and existing benefit programs;

5.2. The Consultant shall develop bid specifications, which will include but not be limited to health plan administration, Employee Assistance Program, pharmacy, dental, basic and supplemental life insurance, wellness programs, disease management programs, site clinic, optional benefit plans such as dental, long term and short-term disability and other benefits and services the

City deems necessary;

5.3. The Consultant shall work with bidders during the RFP process to answer any questions to ensure their complete understanding of the City's intent;

5.4. The Consultant shall evaluate bids/proposals received and offer recommendations;

5.5. The Consultant shall assist as needed in the transition between the Consultant if the RFP results in a change of Consultant.

6. Audits

6.1. The Consultant shall perform, at the City's request, dependent eligibility verification audits and financial and/or programmatic audits of the third-party administrators or insurance companies under contract with the City or other benefit plans;

6.2. The Consultant shall audit a full review of administrative procedures, customer service utilization review, case management, disease management, eligibility review, performance contract…