BOARD MEETING DATE: January 8, 2010
AGENDA NO. 9

PROPOSAL:

Execute Contract for Health Insurance Brokerage and Consultant
Services

SYNOPSIS:

To ensure AQMD continues to provide a cost-effective employee health insurance program, on September 11, 2009, the Board approved release of an RFP to solicit proposals from firms interested in providing health insurance brokerage services. This action is to execute a contract with Mercer, effective February 1, 2010, through January 31, 2013. This is a no-cost contract as payment for services is through insurance carrier commissions.

COMMITTEE:

Administrative, December 11, 2009, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to execute a contract with Mercer to provide health insurance consultant and brokerage services for the period February 1, 2010, through January 31, 2013. This is a no-cost contract, as all fees for these services will be paid directly to Mercer as commissions from insurance carriers.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD’s current contract for consulting and brokerage services directed toward assuring cost-effective medical, dental, vision, life, and other health insurance products for employees and their dependents, which is with Alliant Insurance Services, is scheduled to expire August 31, 2010. However, to align the term of the contract with AQMD’s benefits plan year, this new contract will begin February 1, which will allow consultants time to review existing plans, receive input from employee unions, develop recommendations, and market AQMD insurance needs. The new contract term will also permit AQMD to have plans and premiums in place by the July 2010 open enrollment period and to have consultant support in resolving issues that arise during the first part of the plan year. In September, the Board approved release of RFP #P2010-04 to seek proposals from firms interested in providing these services for the next three-year period.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP has been mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s web site (http://www.aqmd.gov). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Fifteen proposals, all of which were complete and responsive to the RFP, were received when bidding closed at 5:00 p.m., October 13, 2009.

The panel that evaluated proposals included AQMD’s Chief Financial Officer, a Principal Deputy District Counsel, a Human Resources Manager, and a Human Resources Analyst, as well as representatives of both AQMD unions—the president of the South Coast Professional Employees Association, who is an engineer with the agency, and Secretary-Treasurer of Teamsters Local 911. Of these, one is Asian, four are Caucasian, and one is Hispanic; one female, five male.

The panel scored the fifteen proposals based on criteria set forth in the RFP, which included understanding of the requirements, contractor qualifications, previous experience providing insurance consultant/brokerage services for comparable public agencies, and client references. Eight of the proposals did not receive the minimum technical score required by AQMD’s contracting policy, and these firms are not included in the final list of scores. Scores of the remaining seven proposals are listed in the attachment. 

Proposal

This action is to execute a contract with Mercer for the period February 1, 2010, through January 31, 2013. If this action is approved, AQMD will terminate the current contract with Alliant Insurance Services, effective January 31, 2010, at no cost to AQMD, as provided for in the terms of the contract.

Resource Impacts

There is no cost to AQMD associated with this contract, as all costs will be paid to Mercer as commissions from insurance carriers.

Attachment (DOC, 36k)

Evaluation Summary