Benefit Broker Contract

The City of Palo Alto is seeking a benefits broker through Request for Proposal #RFP195086 to provide comprehensive employee benefit products for its approximately 1,000 employees and retirees across multiple municipal departments, including Police and Fire Services, Community Services, Public Works, and Utilities. The three-year contract requires a consultant who is well-versed in the employee benefit market and experienced in advising public agencies on benefits-related issues. Key deliverables include representing the City in provider negotiations, conducting annual benefit program reviews, preparing action plans, evaluating self-funded dental and vision plans, developing employee educational resources, monitoring contracts, and managing the entire RFP process for benefit programs. Proposal submissions are due on October 23, 2025, at 3:00 pm, with a question submission deadline of October 14, 2025, at 1:00 pm. The City will evaluate proposals based on multiple criteria, including proposal quality, proposed solution, experience, cost, financial stability, performance, and compliance. The contract will be a fixed-fee arrangement with a maximum "not to exceed" fee to be determined by the proposer or negotiated with the City.

No specific set-aside designations or restrictions for disadvantaged enterprises are explicitly mentioned in the provided documents. The contract will be awarded as a professional services agreement, with the selected broker expected to provide proactive and responsive customer service. While no incumbent vendor is identified, the City has prepared a comprehensive Professional Services Agreement template and detailed insurance requirements that potential vendors must meet. Insurance requirements include maintaining various coverage types with minimum limits, such as $1,000,000 for General Liability and Automobile Liability, with the City of Palo Alto to be named as an additional insured. The cost sheet indicates a monthly fee structure for the three-year contract term, though specific budget ranges are not explicitly stated. Vendors will need to demonstrate financial stability, provide proof of insurance, and comply with local ordinances and professional liability standards to be considered for the contract.