DEPARTMENT: Human Resources
DEPARTMENT HEAD: Lori Steward, Human Resources Director
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Voluntary Vision Insurance
SUMMARY:
This ordinance authorizes the City Manager or her designee to execute a contract with Davis Vision, Inc. to provide voluntary vision insurance services for civilian and retired employees. The term of this contract is three (3) years, beginning January 1, 2017 and ending December 31, 2019, with the option to renew for two (2) additional one (1) year periods, subject to and contingent upon funding by City Council.
BACKGROUND INFORMATION:
The City currently administers eligibility and enrollment for vision care services for approximately 6,000 full time civilian employees and their dependent(s). Each month the City pays the vendor and participating employees refund the City through payroll deductions. In addition, the City makes the same vision care plan available to its 1,450 retirees and their dependent(s); however, billing and collection is handled directly by the vendor. The City makes no contribution to the vendor for coverage on behalf of active or retired employee participants.
The current enrollment of Civilian employees in the vision plan is as follows;
|
Employee only |
2,011 |
|
Employee plus spouse/domestic partner |
786 |
|
Employee plus child(ren) |
769 |
|
Employee and family |
1,021 |
The current enrollment of retired employees in the vision is as follows:
|
Retiree only |
218 |
|
Retiree plus spouse |
138 |
|
Retiree plus family |
23 |
The Finance Department, Purchasing Division on behalf of the Human Resources Department released a Request for Proposal (RFP) on March 28, 2016 seeking proposals for a qualified Respondent interested in providing voluntary vision insurance services. The RFP was advertised in the San Antonio Express-News on March 28, 2016. A pre-submittal conference was held on April 4, 2016, to allow for Respondent questions and clarification to the RFP. Four (4) proposals were received by the April 29, 2016 deadline; however two (2) proposals were found to be non-responsive. The Evaluation Committee included representatives from the Human Resources Department and Finance Department.
The evaluation of each proposal response was based on a total of 100 points; 25 points allotted for experience, background, qualifications; 35 points allotted for proposed plan and 25 points allotted for Respondent’s price schedule. Local Preference Program was allotted 10 points and 5 points were allotted for the Veteran-Owned Small Business Preference Program.
The Evaluation Committee conducted interviews on June 16, 2016 and recommended Davis Vision, Inc. A Best and Final Offer opportunity was provided to Davis Vision, Inc. on June 17, 2016 with a response received June 20, 2016 with no change to pricing for civilian employees, and during negotiations price for retirees was ultimately reduced by 3%. The Committee recommends Davis Vision, Inc. for award as the firm receiving the highest collective score from the evaluation categories.
The Small Business Economic Development Advocacy (SBEDA) Program was not applied to this evaluation process.
In accordance with Local Preference Program, the recommended Respondent received 10 points for having a local office in the San Antonio City limits.
The Veteran-Owned Small Business Preference Program was applied in the evaluation of responses received for this contract; however, the highest ranked firm is not a veteran-owned small business.
ISSUE:
Award of this contract will allow for continued voluntary vision insurance for civilian employees and their dependent(s) and retired employees and their dependent(s). The vision plan is a popular benefit for employees and retirees. Currently 67% of eligible Civilian employees and retirees have elected to participate for vision insurance coverage. Approval of this contract will provide continuation of vision services for civilian employees and their dependent(s) and retired employees and their dependent(s).
ALTERNATIVES:
Should this contract not be approved, a month-to-month contract with the current vendor, Davis Vision, Inc., would be needed to continue an eye care benefit for Civilian employees and retirees. A month-to-month contract would result in higher monthly premiums.
FISCAL IMPACT:
Funds are included in the FY 2016 Adopted Employee Benefits Insurance Fund for the voluntary vision insurance for civilians as a direct pass-through of employee payroll deductions to the vendor. Retiree premiums are not reflected in this fund since retirees pay directly to the Vendor and the city makes no contributions on their behalf. The impact of this contract will be $575,000 for nine months (January - September 2017). Subsequent funding will be contingent upon City Council appropriations in the Budget for FY 2017 and future fiscal years.
RECOMMENDATION:
Human Resources staff recommends approval of this ordinance to execute a contract with Davis Vision, Inc. to provide voluntary vision insurance services for civilian and retired employees with an estimated annual expense of $766,000 per year beginning January 1, 2017 and ending December 31, 2019, with the option to renew for two (2) additional one (1) year periods, subject to and contingent upon funding by City Council.
This contract is procured by means of Request for Proposals and Discretionary Contract Disclosure Form is attached.