From
Lisa Norris, Human Resources Director
Title
Price agreement for Dental PPO and Dental HMO insurance from Cigna effective January 1, 2018 in an amount up to $951,362 annually for one year with the option to renew for four additional one-year periods totaling $4,756,812 if all extensions are exercised and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms
Presenter
Human Resources Director
Recommended Action
Approve
Analysis
Human Resources had an existing contract with Metlife for both Dental PPO and Dental HMO insurance for employees, retirees and COBRA participants. That contract was due to expire on December 31, 2017. To ensure our plan is both benefit and price competitive, a bid was issued to review the market. Notice of bid #17097 was advertised in the Fort Worth Star Telegram, the State's Electronic Business Daily, and Bid Sync on April 23rd and 30th and distributed to 25 vendors. There were no Grand Prairie vendors available for this commodity. Ten bids were received and scored with review by Human Resources and the city’s benefit consultant, Holmes Murphy.
Cigna meets specifications and is recommended for award. The award was based on best value criteria set up in the specification and as summarized in the scoring sheets provided in Attachments 1 and 2, including material markup, reputation, quality of service, price, past relationship with the city and other municipalities, if they were local, and other relevant criteria as listed in the specification.
This information has been reviewed and recommended for approval by the Finance and Government Committee on October 17, 2017.
Financial Consideration
Funds are available in FY 2017/2018 budget 213010 for Dental PPO (64070) and Dental DHMO (64200) and wil...
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