Request for Proposal S66-T25539 - Approve an Ordinance awarding a contract to WageWorks, Inc. for a total amount not to exceed $670,080 for Flexible Spending Accounts Program Administration Services for Health and Dependent Care for the Human Resource Department.
Specific Explanation:
The Human Resources (HR) Director and the City Purchasing Agent recommend the City Council approve an ordinance awarding a three-year contract with two one-year options to WageWorks, Inc. for a total amount not to exceed $670,080.00 for Flexible Spending Accounts Program Administration services for the Department of Human Resources. The HR Director may terminate this contract at any time upon giving ninety (90) days written notice to Contractor.
The scope of work requires WageWorks to administer the City of Houston Health and Dependent Care Flexible Spending Accounts program. Such related services shall include, but may not be limited to:
- Administration of claims
- Reimbursement processing
- Debit card services
- Member services
- Utilization reporting
The Request for Proposal (RFP) No. S66-T25539 was advertised in accordance with the requirements of the State of Texas bid laws. Seventy-one prospective proposers downloaded the solicitation document from the Strategic Procurement Division (SPD) Ebid website. As a result proposals were received from WageWorks, Inc., ADP, JEM Resource Partners, PAYFLEX, Pursuit of Excellence and Total Administrative Services Corp.
The Evaluation Committee (EC) was comprised of City of Houston voting members from the HR Department and the Solid Waste Management Department. The EC reviewed and evaluated the qualifications of the firms that responded to the RFP in accordance with the Evaluation Documents, which define policies and procedures to be followed in evaluating each proposal.
The evaluation was based upon the following criteria:
|
1. Responsiveness of Proposal
Proposal shall be responsive to all material requirements that will enable the evaluation committee to evaluate proposals in accordance with the evaluation criteria so as to make a recommendation to City officials.
2. Technical Competence
Extent to which proposed solution(s) meet the needs of the City including, but not limited to, the desired requirements as expressed in this RFP.
a. Qualifications and experience of the Proposer to successfully achieve and perform the services as evidenced by experience on proposal of similar scope of magnitude.
b. Qualifications and specialized experience of key personnel to successfully achieve the project as evidenced by experience in similar role.
c. Quality of proposed implementation plan, timetable, and operational plan including understanding of the scope of services/technical requirements, FSA program design, ability to manage the entire FSA process inclusive of claims processing, training, transition plan, and understanding of the services required in this proposal.
d. Qualifications and specialized experience with information technology to safeguard confidential information obtained from clients.
e. Quality, comprehensiveness and adequacy of proposal.
f. Financial stability of the Proposer.
g. Reasonableness and extent of contract exceptions taken by Proposer.
3. Price Proposal
a. Reasonableness and competitiveness of the overall prices; and
b. Rate guarantees.
|
| |
Based on the evaluation of the proposals, the EC ranked ADP and WageWorks as most qualified and the EC requested a Best and Final Offer (BAFO) from the two firms. Of the two, WageWorks was deemed as the best respondent.
Pay or Play Program
The proposed contract requires compliance with the City's Pay or Play ordinance regarding health benefits for employees of City contractors. In this case, the contractor provides benefits for their employees and are in compliance with the City policy.
MWBE Contract Goal
The Office of Business Opportunity approved a goal modification of 0%
Hire Houston First
The proposed contract requires compliance with the City's Hire Houston First (HHF) ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case WageWorks does not meet the requirements for HHF designation; no HHF firms were within three percent.
________________________________ _________________________________
Calvin D. Wells, City Purchasing Agent Department Approval Authority Signature
Finance / Strategic Procurement Division
|
Estimated Spending Authority
|
|
DEPARTMENT
|
FY2016
|
OUT YEARS
|
TOTAL
|
|
Human Resources
|
$22,336.00
|
$647,744.00
|
$670,080.00
|