HomeMy WebLinkAboutMemo - Evaluation Committee ReportCITY OF ,!'1CIAN- 11, FLORIDA
INTER -OFFICE MENIORANDUNI
TO: Daniel J. Alfonso,
City Manager
FROM: Annie Perez, CPPO,
Director, Procurement apartment
DATE: May 16, 2017 FILE:
SUBJECT: Recommendation to
Negotiate a Contract for an Employee
Disability Insurance Program
REFERENCES: RFP No. 680381
ENCLOSURES, Evaluation Committee
Appointment Memo; Evaluation Scare
Sheets
Recommendation:
Based on the findings below, the Procurement Department (Procurement) hereby recommends
approval for negotiations to award a contract, pursuant to Request for Proposals No. 680381 (RFP),
Employee Disability Insurance Program (Program), to the highest ranked, responsive and responsible
Proposer, Standard Insurance Company (Standard).
Background:
On May 30, 2017, the City of Miami (City), on behalf of the Risk Administration Department (Risk),
issued RFP No. 680381 under full and open competition, to obtain proposals from qualified,
experienced firms, to provide an insured employer sponsored Executive Employee Group Short -Term
Disability (STD), and Long -Term Disability (LTD) Insurance 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 executive employees. There are approximately
117 lives eligible for participation in this Program
Proposers were required to meet all of the minimum qualifications and other requirements established
in the RFP, in order to be deemed qualified to provide the services. On May 1, 2017, two (2)
proposals were received in response to the RFP; 1) Metropolitan Life Insurance Company (MetLife),
and 2) Standard. Subsequently, the proposals were reviewed by Procurement for responsiveness;
both were deemed responsive. The proposals were further evaluated by an Evaluation Committee
(Committee), comprising of City personnel and subject matter experts from outside of the City (see
attached appointment memo). The Committee evaluated the proposals following the guidelines and
technical and price criteria published in the RFP. Price proposals were scared subjectively, in
conjunction with the written proposals. The final technical and price scores are as follows:
Proposer
Technical Score
Price Score
Total Combined
(max. 425)
(max. 75)
Score
max. 500
1
Standard Insurance Company
397
72.25
469.25
2
Metropolitan Life Insurance Company
374
61
435
The Committee decided not to hold oral presentations. Pursuant to City Code, Section 18-86, the
solicitation included a five percent (5%) evaluation criteria in favor of proposers who maintain a local
office as defined in Section 18-73. Neither of the two proposers qualified for the preference.
Due diligence was conducted to determine responsibility, including verifying corporate status. There
were no performance or compliance issues, and no adverse finding related to Standard's
responsibility. Prior to negotiations, Procurement will further review the proposal submitted by the
recommended Proposer, specifically the exceptions taken, in addition to the terms and conditions of
the Professional Services Agreement, with the City Attorney's Office.
Negotiations,
The Committee recommends that the City enter into negotiations with Standard. Notwithstanding the
foregoing, the Committee further recommends that if the City and Standard cannot reach an
agreement, the City will terminate negotiations and begin negotiations with the second ranked,
responsive and responsible proposer, MetLife.
The following individuals will participate in the negotiations along with the assigned City Attorney:
Lydia Osborne, CPPO, Assistant Director, Procurement
Ann -Marie Sharpe, Director, Risk
Frank Gomez, Property and Casualty Manager, Risk
Consensus Statement:
The Committee determined that Standard has the necessary qualifications, relevant experience,
technical capacity and experienced personnel required to meet the needs of the City and the City's
employees. Standard has over fifty (50) years of experience in underwriting and administering
disability income benefits for public employer groups; the firm has in excess of $70,000,000 in
municipal business in Florida alone. Standard has 2283 employees in the home office and 785 in
other locations. The team proposed for this contract consists of local account management
professionals in the firm's Miami field office. The lead consultant assigned to the City has over
twenty-five (25) years of experience working with group disability on both employer and employee
funded basis. Standard's claims examiners have been with the firm for an average of five (5) years,
while the firm's case managers have an average of twenty-seven (27) years of experience in the field.
Standard proposed that an initial short term disability claim decision can be rendered in three (3) to
five (5) days. For the long terra disability insurance, Standard's Workplace Possibilities (SM) program,
included at no extra cost to the City, can help employees stay on the job and return to work sooner,
This program has proven to reduce disability duration by an average of twenty-four (24) days per
claimant.
Standard's contract price will be negotiated. Consequently, as outlined in the consensus statement
presented above, the Committee recommends Standard as the top ranked Proposer,
Copies of the score sheets are attached for each Committee member, as well as a composite score
sheet.
Approved: �ZDO -> Date:
Daniel J. Alfon o, ity � , nager
cc: Fernando Casamayor, Assistant`City Manager/Chief Financial Officer
Rafael Suarez -Rivas, Senior Assistant City Attorney
Ann -Marie Sharpe, Director, Risk
Lydia Osborne, CPPD, Assistant Director, Procurement