Department: Resource Management
Staff Contact: Dianna Wright
Subject: Acceptance of proposal and consideration of award of contract to Lockton Companies, LLC for a Benefit Plan Management Consultant for the Resource Management Department.
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Item Description:
title
Acceptance of proposal and consideration of award of contract to Lockton Companies, LLC for a Benefit Plan Management Consultant for the Resource Management Department.
Body
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Summary:
To assist with the management of the City’s self-funded and fully insured benefit plans the services of a Benefit Plan Management consultant is utilized. The services provided assist with plan designs, funding criteria, data analytics and bidding of fully insured programs. The City’s current consultant has served the city for the past eleven (11) years.
The City requested proposals from full-service benefit brokers that had experience with:
1) public sector clients
2) self-funded benefit arrangements
3) experience with the City’s current carrier partners along with all major carriers
4) expertise in data analytics
On May 24, 2019, six (6) proposals were received: Arthur J. Gallagher, CBIZ, Garry & Associates, Holmes Murphy, Lockton and Mercer. An evaluation team evaluated proposals based on proposed plans for addressing scope of services, company and personnel’s relevant experience, qualification, record of performance, completeness and clarity of proposal submitted, and cost. Lockton Companies, LLC. was the highest scoring vendor. Staff recommends award of the contract to Lockton Companies, LLC.
Lockton is a full-service benefit broker headquartered in Kansas City, MO. Lockton is the largest independent agency in the United States with forty percent (40%) of their business with self-funded plans. They have public sector clients, including Johnson County. Lockton has in-house actuarial expertise, legal services, clinical management, prescription management, wellness services and data management services.
There are no Olathe vendors that provide this service.
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Financial Impact:
Lockton’s five-year guaranteed annual fee is $135,00 to provide benefit broker services. This is an annual savings of approximately $48,354. Funding is from the Risk Management Fund.
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Action Needed:
Approve 3-year contract with Lockton Companies, LLC for benefit broker services with an option for a two-year renewal.
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Attachment(s):
A. Proposal Composite Score Sheet