DEPARTMENT: Human Resources
DEPARTMENT HEAD: Joe Angelo, Chief Human Resources Officer
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Employee Benefits Consulting Contract
SUMMARY:
This ordinance authorizes the City Manager or her designee to execute a contract with Buck Consultants, LLC, for Employee Benefit Consulting for Civilian and retired employees for total compensation in an amount up to $256,200.00. The term of this contract commences upon execution and terminates upon completion of services, but no later than June 19, 2015.
BACKGROUND INFORMATION:
Benefits consultant services for the City of San Antonio employee benefits includes actuarial valuation analysis, cost analysis and validation studies for plan design changes and the development of strategies to effectively control costs while maximizing benefits to employees, retirees and dependents.
The consultant will provide guidance on services such as strategic planning, actuarial services, vendor management and compliance for all employee benefit plans. These services are an integral part of the annual budget process and legal compliance of the delivery of the employee benefits plans.
As a result of the RFP process, the evaluation committee recommends that Buck Consultants LLC, be awarded the Employee Benefit Plan Consulting contract.
ISSUE:
This Ordinance will execute a contract with Buck Consultants, LLC, authorizing an estimated annual expenditure of up to $256, 200.00 for the present contract year.
Execution of this ordinance will allow the City to use the consultant for services needed throughout the remainder of this fiscal year, without increasing overall costs to the City.
This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee applied the Small and Minority/ Women-Owned Business Enterprise Prime Contract Program with ten (10) evaluation preference points awarded to Buck Consultant, LLC, as they are certified SBE and M/WBE firm located within the San Antonio Metropolitan Statistical Area OR five (5) evaluation preference points awarded to Buck Consultants, LLC, as they are certified SBE firm located within the San Antonio Metropolitan Statistical Area. Additionally, the Goal Setting Committee also set a fifteen percent (15%) Minority/Women Business Enterprise (M/WBE) subcontracting goal. Buck Consultants, LLC has committed to 15% M/WBE subcontractor participation.
In accordance with Local Preference Program, the recommended respondent received 5 points for having a local office in the incorporated San Antonio city limits for the requisite time period and with the requisite number of employees.
There were no proposals submitted from veteran-owned small business respondents for this contract; therefore, the Veteran-Owned Small Business Preference Program was not applied.
ALTERNATIVES:
An alternative to execution of this contract is to utilize City staff to manage the rising cost of medical and prescription care without the expertise of a benefits consultant to recommend plan design changes and an actuarially derived funding strategy.
FISCAL IMPACT:
The total annual contract estimated at $256,200.00 is included in the Employee Benefits Insurance Fund. The FY 2014 impact for the 3 months of this contract is estimated at $74,725.00. The remaining nine months estimated at $181,475.00will be authorized in FY2015 subject to and contingent upon approval by City Council.
RECOMMENDATION:
Staff recommends approval of this ordinance to execute a contract with Buck Consultants LLC, with a term beginning at the date of Council approval (6-19-2014) and ending on June 19, 2015 subject to and contingent upon funding and approval by the City Council. This contract was procured by means of a Request for Proposal and a Contracts Disclosure Form is required.