RFP 190000002803 Award Recommendation and Synopsis - 09 30 2019.pdf

Version 4 Revised: 8/2019

Award Recommendation Notice of Intent to Award Number 190000001065

September 30, 2019

The Department of Technology, Management, & Budget’s Procurement office has completed the evaluation of RFP No. 190000002803 HMO Services for Michigan Public School Employees’ Retirement System’s (MPSERS) Plans and has recommended an award to Blue Care Network of Michigan and Priority Health Managed Benefits for a total program amount of $993,500,000.00 which includes the one-year base contract term and four one-year options, pending State Administrative Board approval, if applicable. More information on the State Administrative Board can be found at: State Administrative Board.

Bidders who were not recommended for the award are encouraged to schedule a debriefing session with the Solicitation Manager. The debriefing session will provide the bidder with the State’s rationale on why the bidder was not recommended for the award. The Solicitation Manager may be contacted as follows:

Sue Cieciwa, Solicitation Manager cieciwas@michigan.gov 517-249-0458

Background Information:

This Request for Proposal (RFP) was to solicit responses for selection of a Contractor to provide HMO Services for Michigan Public School Employees’ Retirement System’s (MPSERS) Plans. The term of this contract is one year, with up to four additional one-year renewal options.

Bidders:

The RFP was posted on SIGMA VSS on July 18, 2019 for 20 days. The following bidders submitted proposals by the published due date of August 7, 2019.

Bidder Address City, State Zip

SDVOB*

Blue Care Network of Michigan

20500 Civic Center Dr.

Southfield, MI 48076

No

Health Alliance Plan of Michigan

2850 W. Grand Blvd.

Detroit, MI 48202

Priority Health Managed Benefits

1241 East Beltline NE Grand Rapids, MI 49525

*SDVOB: Service-Disabled Veteran Owned Business

Evaluation Synopsis

STATE OF MICHIGAN PROCUREMENT

Department of Technology, Management, and Budget

525 W. ALLEGAN ST., LANSING, MICHIGAN 48913

P.O. BOX 30026, LANSING, MICHIGAN 48909

https://www.michigan.gov/dtmb/0,5552,7-358-82550_85746_48756---,00.html

I. Evaluation Process

A Responsible Vendor is a vendor that demonstrates it has the ability to successfully perform the duties identified by the solicitation. A Responsive proposal is one that is submitted in accordance with the solicitation instructions and meets all mandatory requirements identified in the solicitation.

Proposal Instructions, Mandatory Minimum Requirements

6. MANDATORY MINIMUM REQUIREMENTS. To avoid disqualification, the bidder must provide the following completed form, certifying their agreement:

• Schedule C – Mandatory Requirements Form. Complete and sign, certifying bidder’s agreement.

Only proposals meeting the mandatory minimum requirements will be considered for evaluation.

Proposal Instructions, Evaluation Process

7. EVALUATION PROCESS. The State will evaluate each proposal based on the following factors:

The State will evaluate Bidder’s response to Criteria items on a Pass/Fail basis. The following criteria must be met for a Bidder’s proposal to be considered for award:

Section Criteria Schedule A Statement of Work and Vendor Questions Worksheet

Bidder provided all information requested in Schedule A and Vendor Questions Worksheet.

Standard Contract Terms Yes, we will comply as specified: PASS No, we cannot comply: FAIL Yes, we will comply but with written exceptions in accordance with Section 7. Evaluation Process must be provided with Bidder’s proposal:

PASS if the exception(s), at the sole discretion of the State, is evaluated as acceptable.

FAIL if it is not.

PROPOSALS THAT HAVE A FAIL DETERMINATION FOR ANY SECTION WILL NOT BE CONSIDERED FOR AWARD.

The State strongly encourages strict adherence to the Contract Terms. The State reserves the right to deem a bid non-responsive for failure to accept the Contract Terms. Nevertheless, the bidder may submit proposed changes to the Contract Terms in track changes (i.e., visible edits) with an explanation of the bidder’s need for each proposed change. Failure to include track changes with an explanation of the bidder’s need for the proposed change constitutes the bidder’s acceptance of the Contract Terms. General statements, such as that the bidder reserves the right to negotiate the terms and conditions, may be considered non-responsive.

The State may but is not required to conduct an on-site visit to tour and inspect the bidder’s facilities; require an oral presentation of the bidder's proposal; conduct interviews, research, reference checks, and background checks.

The full evaluation process is stated in the RFP Proposal Instructions.

II. Evaluation Method

Responses to this solicitation were reviewed by Joint Evaluation Committee, which consisted of the following individuals:

Voting Advisory Sarah Humphreys, Departmental Analyst Michigan Office of Retirement Services

Elizabeth Harrison, Business Process Owner, Benefit Plan and Design Michigan Office of Retirement Services

Sue Cieciwa, Category Specialist DTMB, Central Procurement Services

III. Evaluation Results

A. Blue Care Network of Michigan

The Evaluation Team determined that Blue Care Network of Michigan could meet the requirements of this RFP. This determination was accomplished by evaluating their responses to the Pass/Fail Evaluation Criteria noted above.

1. Bidder provided their signed Mandatory Requirements Form (Schedule C) and did not take any exceptions to any of the requirements listed on the form.

The Evaluation Team determined that the Bidder met the requirements for the Minimum Mandatory Requirements section of the RFP with no exceptions.

2. Bidder provided all information requested in Schedule A Statement of Work and Vendor Questions Worksheet.

The Evaluation Team determined the Bidder met the requirements for these Sections of the

RFP.

3. Bidder provided their agreement to the Standard Contract terms with exceptions that were evaluated as acceptable, at the sole discretion of the State.

The Evaluation Team determined the Bidder met the requirements for this Section of the RFP.

Proposal Determination: PASS

B. Health Alliance Plan of Michigan

The Evaluation Team determined that Health Alliance Plan of Michigan did not meet the requirements of being responsive and responsible due to not meeting the Mandatory Minimum Requirements (Schedule C Mandatory Requirements Form). The bidder added the response, “See noted revisions/exceptions in RFP documents.” under the first statement “1. Bidder agrees to provide services exactly as written in Schedule A – Statement of Work of the Request for Proposal and in strict accordance with the Plan Design.”

Proposal Determination: FAIL

C. Priority Health Managed Benefits

The Evaluation Team determined that Priority Health Managed Benefits could meet the requirements of this RFP. This determination was accomplished by evaluating their responses to the Pass/Fail Evaluation Criteria noted above.

1. Bidder provided their signed Mandatory Requirements Form (Schedule C) and did not take any exceptions to any of the requirements listed on the form.

The Evaluation Team determined that the Bidder met the requirements for the Minimum Mandatory Requirements section of the RFP with no exceptions.

2. Bidder provided all information requested in Schedule A Statement of Work and Vendor Questions Worksheet.

The Evaluation Team determined the Bidder met the requirements for these Sections of the

RFP.

3. Bidder provided their agreement to the Standard Contract Terms with no exceptions.

The Evaluation Team determined the Bidder met the requirements for this Section of the RFP.

Proposal Determination: PASS

IV. Technical Evaluation Summary

Selection Criteria Blue Care Network Priority Health 1 Schedule C Mandatory

Requirements Form Pass Pass

2 Schedule A Statement of Work and Vendor Questions Worksheet

Pass Pass

3 Standard Contract Terms Pass Pass Proposal Determination Pass Pass

V. Pricing Summary

MPSERS HMO Premium Rates Effective: 1/1/2020 - 12/31/2020

Without Medicare

Assuming Waiver of

ACA Health Insurer Fee With ACA Health

Insurer Fee Self $682.32 $686.00 Spouse $566.04 $569.10 Per Child $171.04 $171.97

With Medicare

Assuming Waiver of

ACA Health Insurer Fee With ACA Health

Insurer Fee Self $131.21 $143.94 Spouse $113.68 $126.22 Per Child $128.04 $140.59

VII. Award Recommendation:

Award recommendation is made to the responsive and responsible Bidder who meets or exceeds the requirements for the Pass/Fail evaluation. The JEC recommends a multiple-vendor award contract for HMO Services for MPSERS in the amounts specified, as follows:

1-Year Base Contract Term Blue Care Network $ 32,000,000.00 Priority Health Managed Benefits $ 78,000,000.00 Total $110,000,000.00

*NOTE: The total program amount which includes the one-year base contract term and four one-year options is estimated to be $993,500,000.00. Award amounts are based on historical expenditures.