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HomeMy WebLinkAboutCOD-002-02 . , ';~ UNFINISHED BUSINESS CI!1ljQglon REPORT CORPORATE SERVICES DEPARTMENT Meeting: COUNCIL Date: January 28, 2002 Report #: COD-002-02 ADDENDUM File#_ By-law # SUBJECT: RFP2001-S, PROVISION OF GROUP BENEFITS CONSULTING AND RELATED SERVICES Recommendations: It is respectfully recommended to Council the following: 1. THAT Report COD-002-02 be lifted from the table; 2. THAT addendum to Report COD-002-02 be received; 3. THAT the firm of William Mercer, Toronto, Ontario, being the lowest qualified bidder, be awarded RFP2001-8, Option 1, for the provision of Group Benefits Consulting and Reiated Services as required by the Municipality of Clarington; 4, THAT the contract be awarded for a one-year term commencing May 2,2002; 5. THAT the subsequent contract be extended for a second and third year pending satisfactory pricing and service; and 6, THAT the firm of Mosey and Mosey be notified that their services will no longer be required effective May 2, 2002. rie Marano, H.B.Sc., C,M.O. Director of Corporate Services Reviewed by:Q Hzc.....,~-(.J-...)!.c . nklin Wu, Chief Administrative Officer MM\LAB\km , REPORT NO.: COO-002.Q2 PAGE 2 Background and Comments: At the General Purpose and Administration Committee meeting of January 21, 2002, Report COD-002-02 was tabled and additional clarification requested from staff. The recommendation as outlined in the report is to continue with the existing price structure, which is a percentage fee based on the totai cost of the benefits premium. At the 1 % fee quoted by the low bidder, the total annual cost is approximately $9,000.00, This option is estimated to be less costly for the Municipality as regardless of how often or what services are required the fee does not change. Mr, Ashe's comments were in reference to option #2, which is not the recommended option. With option 2, which is the hourly rate based on a per service requirement, the total costs are unknown and can easily escaiate. As indicated by Mr. Ashe in his presentation, approximately 30 hours of consulting time was required to assist in the CUPE and Emergency Services Union Negotiations which supports the recommendation to retain the contract on a percentage fee basis. It appears that Mr. Ashe's estimation of costs by Mercer under option #2 is calculated based on the high end hourly rate. From experience we have found that generally calls are only referred to top consultants when issues are complex. Therefore this calculation is not reliable and again is one of the reasons option #1 is recommended. A question was raised regarding the cost associated with the transfer to a different consultant. Since the benefit carrier will not change, only the independent consultant, there is effectively no associated cost. Due to the accessibility of information, with the benefit providers, over the internet, even the time involved in transferring information is minimal. The only other question raised was with regard to the reference provided in the report. As was indicated by Mr. Ashe, the firm of William Mercer does not currently have the contract for The City of Pickering, however they have provided satisfactory service to them in recent years. As the recommendation proposed accepts the lowest qualified bid for option 1, it is respectfully recommended that report COD-002-02 be lifted from the table and that the recommendations as proposed be approved, ON: H:RPOHTS/COOREPORTS/2002lCOO-002.02add Clwiggton REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: January 21, 2002 Report #: COD-002-02 File # f/ 11;:: By-law # SUBJECT: RFP2001-8, PROVISION OF GROUP BENEFITS CONSULTING AND RELATED SERVICES Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-002-02 be received; 2, THAT the firm of William Mercer, Toronto, Ontario, being the lowest qualified bidder, be awarded RFP2001-8, Option 1, for the provision of Group Benefits Consulting and Related Services as required by the Municipality of Clarington; 3, THAT the contract be awarded for a one-year term commencing May 2, 2002; 4, THAT the subsequent contract be extended for a second and third year pending satisfactory pricing and service; and 5, THAT the firm of Mosey and Mosey be notified that their services will no longer be required effective May 2, 2002, -'--) s""";~6~ . Marie Marano, H.B.Sc., C,M.O, Director of Corporate Services /J . /J () rL0~ Reviewed by; ~~". Franklin Wu, Chief Administrative Officer MMILABlkm Background and Comments: REPORT NO.: COD-002-02 PAGE 2 The Municipality has retained the services of Mosey and Mosey Benefit Plan Consultants since 1998 as benefit administrators for all health and dental consulting service, The existing contract expires May 1, 2002. A request for proposal was issued with bids being received as per Schedule "A" attached. Interviews were held with the three lower proponents to review their submission and their qualifications to service the Municipality of Clarington's requirements. Note, Mosey and Mosey & Mosey did quote on a third option which is a "fee commission offset". However, as this opportunity was not provided to all bidders and to protect the integrity of the bidding process, this option cannot be considered at this time. In addition it felt that this option would not financially benefit the Municipality of Clarington. Subsequently it is recommended that the low bidder from William Mercer, Toronto, Ontario be awarded the contract for the Provision of Group Benefits Consulting and Related Services, Option 1, as per all terms, conditions and specifications of RFP2001-8. Note, although pricing for option 2, which is on a fee for service basis as required, was requested, this option is not being considered at this time, Mercers' low 1 % commission rate offered for option 1 is more financially attractive at this time, as the total overall annual cost would be less than if paying an hourly rate on a per service basis. Although the subject firm have not provided service in the past for the Municipality of Clarington, they have provided excellent service to the Regional Municipality of Peel, the City of Mississauga and the City of Pickering, CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T(905)623-3379 F (905)623-4169 BID SUMMARY - RFP2001-8 GROUP BENEFITS SCHEDULE "A" William Mercer Toronto, Ontario BIDDER OPTION 2 Buffett Taylor & Associates Whitby, Ontario Mosey & Mosey Pickering, Ontario Health Lambert Benefits Consulting Toronto, Ontario Canadian Benefits Toronto, Ontario $115. To $190. Hr (for Team) rate could be lower depending project and team required for project, $225. Hr $125. Hr hourly rate not provided, rate would be based on staff involved. $150. Hr "Mosey quoted an additional option, please refer to report.