Annual Contract for Employee Health and Welfare Benefits

The City of Lewisville, Texas, located in Denton County, is accepting competitive sealed proposals for an annual contract for comprehensive Employee Health and Welfare Benefits through RFP #26-71-P, with a submission deadline of May 26, 2026. The procurement encompasses a complete suite of employee benefit services for approximately 910 active employees, 23 retirees, and 1 COBRA participant, including third-party administrator services for medical and dental coverage, pharmacy benefit management, medical and pharmacy stop loss insurance, administrative services only (ASO) dental, fully insured vision, basic and voluntary life insurance with accidental death and dismemberment (AD&D), long-term disability, employee assistance programs (EAP), health savings accounts (HSA), flexible spending accounts (FSA), and COBRA administration. The contract will be effective January 1, 2027, with three options for initial contract terms: a three-year period with two one-year renewal options, a two-year period with three one-year renewal options, or a one-year period with four one-year renewal options, all subject to City Manager approval. Vendors must submit proposals through the Bonfire platform or in person to the City of Lewisville Purchasing Division, with all questions requiring submission through Bonfire's questions and answers section by specified deadlines, with responses issued via addendum. Evaluation criteria vary by service line but generally include cost (40-50%), customer service (15%), claims processing (15%), population health management programs (10%), integrated systems and technology (5-10%), cost containment and innovative solutions (5%), and past performance (10%). The City requires vendors to demonstrate compliance with the Americans with Disabilities Act, provide AM Best financial ratings (A- or higher for certain services), submit detailed pricing on ADA-compliant bid sheets, and include references, organizational structure, past performance documentation, and all required purchasing documents with proposals; vendors must also certify they have no outstanding lawsuits, current litigation with the City, or other disqualifying factors within the past five years.

The procurement contains no specific set-aside designations for disadvantaged enterprises, though all proposals must comply with Texas Government Code provisions regarding boycotts, discrimination, conflict of interest disclosures under Texas Local Government Code Chapter 176, and Immigration Reform and Control Act requirements. The current incumbent vendors include CIGNA Health and Life Insurance Company for medical, dental, and pharmacy administration; Superior Vision of Texas for vision coverage; and other carriers for specialized benefits, with integration required for transition from Benefit Connector to Workday effective January 1, 2027. The City currently receives wellness credits ($100,000 annually), communication credits ($20,000), and independent claims audit allowances ($30,000 annually) from Cigna, and vendors are expected to propose comparable allowances and credits to offset administrative and technology costs. Current medical plan contributions range from $811.31 to $2,868.81 monthly for employees depending on plan tier and family coverage level, with dental rates from $46.31 to $152.79 monthly and vision rates from $4.15 to $12.20 monthly; the current medical stop loss deductible is $175,000 with unlimited maximum coverage and an aggregate corridor of 120%. The contract requires vendors to notify the City of maximum rate increases at least 120 days prior to renewal effective dates, with price adjustments permitted only for documented material cost changes requiring written verification. The City reserves the right to conduct interviews with top-ranked proposers, make split awards among multiple vendors, conduct a best and final process, and reject any proposals at its sole discretion.