Group Life and Group Long Term Disability

The City of Tucson, located in Pima County, Arizona, is soliciting proposals for a fully insured group life and long-term disability (LTD) insurance contract effective July 1, 2025. The procurement, identified as RFP #240151, requires vendors to provide comprehensive group insurance coverage for approximately 4,300 employees and 4,000 retirees, with mandatory bidding on both life and LTD insurance together. Offerors must have integrated disability management capabilities and agree to integrate with Workday for Evidence of Insurability processing, bearing all integration programming costs. The contract will be fully experience-rated, non-dividend eligible, and net of commissions, with a pre-submittal conference scheduled for June 26, 2024, and proposal submissions due by July 24, 2024, at 2:00 P.M. local Arizona time. Current life insurance offerings include city-paid basic life for employees and retirees, city-paid dependent basic life, and employee-paid optional supplemental life, with LTD offerings consisting of city-paid basic LTD and an employee-paid buy-up LTD option. The initial contract term is one year, with the potential to extend for up to four additional one-year periods, and vendors must maintain performance standards and provide comprehensive reporting and customer service throughout the contract period.

The solicitation does not explicitly mention specific set-aside designations or restrictions on respondent types, though standard federal procurement guidelines regarding equal opportunity and minority business participation likely apply. The current incumbent vendor is The Hartford, and the City requires vendors to provide group policies exclusively, explicitly prohibiting individual policy offerings. Integration requirements mandate compatibility with the City's existing Workday system for Evidence of Insurability processing, with vendors responsible for all associated programming and integration costs. Life insurance coverage options range from 1x to 6x annual base salary, with a maximum coverage of $300,000, and LTD options include core and buy-up selections. While specific budget ranges are not detailed in the documents, the comprehensive nature of the contract covering both life and long-term disability insurance for over 8,300 employees and retirees suggests a significant potential contract value. The City anticipates conducting open enrollment in May 2025, with benefits becoming effective July 1, 2025, and requires vendors to demonstrate robust administrative services, claims processing capabilities, and ongoing customer support.