Group Term Life, AD&D, and Optional Life Insurance Plans

The City of Phoenix has issued Request for Proposal (RFP) PS-26-0032 for Group Term Life, AD&D, and Optional Life Insurance Plans, seeking a comprehensive insurance provider for its approximately 32,000 full and part-time employees and dependents. The procurement is for a five-year contract commencing on January 1, 2027, with two potential optional renewal years. The solicitation requires a vendor to provide multiple insurance plan types, including Basic Life, AD&D, Line of Duty Exposure, Occupational AD&D, and Commuter AD&D insurance, with varying coverage levels based on employee classification and salary. Evaluation criteria will be weighted across technical proposal (42.5%), qualifications and experience (25%), and pricing (32.5%). Key proposal deadlines include a pre-offer conference on July 18, 2025, at 8:00 am via Webex, written inquiries due by July 21, 2025, at 12:00 pm, and the final proposal response deadline on August 8, 2025, at 2:00 pm. Minimum vendor qualifications include being in operation for at least five consecutive years providing Group Term Life, AD&D, and Optional Life Insurance Plans, with experience serving groups comparable to the City of Phoenix.

The RFP includes provisions for Disadvantaged Business Enterprise (DBE) guidelines and emphasizes non-discrimination requirements across all contractor activities. The current incumbent is Minnesota Life Insurance Company, and the new contractor must match existing benefit levels on a no-loss/no-gain basis while providing guaranteed issue coverage for new employees. Contractors must provide comprehensive service capabilities including implementation support, customer service, data integration, reporting, communication materials, and account management with robust technological infrastructure. The procurement requires completion of a mandatory Non-Disclosure Agreement to access sensitive census data, and vendors must comply with HIPAA and HITECH Act regulations through a Business Associate Agreement. While specific award values are not explicitly stated, the comprehensive nature of the contract covering 32,000 employees suggests a significant multi-year contract with potential substantial premium volumes. The City currently pays 100% of certain life insurance premiums, with employees contributing to optional coverage through post-tax payroll deductions.