HomeMy WebLinkAboutMemo - Award RecommendationCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Daniel J. Alfonso, DATE: August 4, 2017 FILE:
City Manager
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FROM: Annie Perez, CPPO G�`SUBJECT: Recommendation of Award of a Contract for
Director, Procurement Employee Long Term and Short Term Disability
Insurance Program
REFERENCES: Request for Proposals (RFP) No. 680381
ENCLOSURES: Rejection Letter, RFP 607381;
Recommendation to Negotiate Memo
Recommendation
Based on the findings below, the Procurement Department (Procurement) hereby recommends
award of Contract No. RFP 680381 to Standard Insurance Company (Standard) to provide an
insured employer sponsored Executive Employee Group Short -Term Disability (STD), and
Long -Term Disability (LTD) Insurance Program (Program), with the option to allow executive
employees to buy -up to a Premier Long -Term Benefit ("Premier LTD"), and related services.
Currently, there are no disability benefits in place for the City's executive employees. There are
approximately 117 lives eligible for participation in this Program.
Fiscal Impact
The fiscal impact to the City if Miami (City) for the initial three (3) years for the Employer Funded
LTD Plan is $164,016 ($54,672 annually/$4,556 monthly). The STD and Premier LTD Plans are
voluntary.
Background
On July 6, 2016, the City issued a Request for Proposals (RFP) No. 607381 under full and open
competition, to obtain proposals from qualified, experienced firms interested in providing a fully -
insured employee disability insurance program, for the benefit of City executive employees.
Subsequently, on December 23, 2016, all proposals were rejected as negotiation was
unsuccessful with the highest ranked proposer, and the second highest ranked proposer was
scored within the low sixty (60) percentile (see enclosed rejection letter).
On March 30, 2017, the City re -issued the solicitation as RFP No. 680381, under full and open
competition. On May 1, 2017, two (2) proposals were received in response to the RFP
(Metropolitan Life Insurance Company, and Standard); both proposals were deemed responsive
to the RFP requirements. The proposals were reviewed and evaluated by an Evaluation
Committee (Committee), following the guidelines and technical criteria published in the RFP.
Following evaluations, the Committee recommended Standard, the highest ranked, responsive
and responsible proposer, for negotiations.
Subsequently, the Negotiations Team met on June 12, 2017, as Standard took some exceptions
to the Professional Services Agreement's terms and conditions that was part of their proposal.
Negotiation was successfully completed on June 19, 2017. As a result of the negotiations,
Standard agreed to guarantee their price for the initial three (3) year term (previously
guaranteed for the first two years), and agreed to accept minimum participation of twenty
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percent (20%) versus the twenty-five percent (25%) in their proposal. The negotiated LTD and
STD Plans are as follows:
1) Employer Funded LTD Plan includes 180 day benefit waiting period; benefits to age 65
or normal Social Security retirement age; and 60% benefit to a monthly maximum of
$10, 000.
2) Voluntary STD Plan includes 30 day benefit waiting period; 150 day maximum benefit
period; and 60% benefit to a maximum weekly benefit amount of $2,000.
Standard demonstrated in their proposal that they meet the minimum qualifications and have
the technical capabilities to provide the Program, as evidenced by their experience and
proposed approach.
Approved: Date: r
D niel J. Alfonso, City Manager
c: Fernando Casamayor, Assistant City Manager/Chief Financial Officer
Rafael Suarez -Rivas, Senior Assistant City Attorney
Pablo J. Velez, Assistant City Attorney
Ann -Marie Sharpe, Director, Department of Risk Management
Lydia Osborne, CPPO, Assistant Director, Procurement
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