It is recommended that the Mayor and City Commission approve the Resolution authorizing Administration to enter into negotiations with Foundation Risk Partners Corp. DBA Foundation Risk Partners Public Entity Services, the top ranked proposer, and authorizing the City Manager and City Clerk to execute an Agreement upon conclusion of successful negotiations by the Administration and the City Attorney’s Office.

On March 11, 2016 pursuant to Resolution 2015-29245, the City executed an Agreement with Gallagher Benefit Services, Inc. to assist and support the Administration with the City’s self-funded medical and dental plans with services that include actuarial and market analysis, assistance with solicitations for medical, dental and voluntary benefits plans, and assistance with compliance of all legislation related to group health plans. The existing Agreement is currently on a month-to-month extension until such time as a replacement agreement is executed. 

On February 10, 2021, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) 2021-108-WG for health care benefits consulting services.  RFP responses were due and received on April 9, 2021.  The City received proposals from the following four firms: Foundation Risk Partners DBA Foundation Risk Partners Public Entity Services, Gallagher Benefit Services, Inc., Southeast Series of Lockton Companies LLC, and The Gehring Group, Inc. The proposal received from The Gehring Group, Inc. was deemed non-responsive for failure to execute the cost proposal form as required in the RFP and could not be further considered.

On April 7, 2021, the Evaluation Committee appointed by the Interim City Manager convened to consider the proposals received.  The Committee was comprised of Marvin Adams, Employee Benefits Manager, Human Resources Department; Jair Espinoza, Benefits Manager, City of Miami; Frank Estevez, Compensation Manager, Human Resources Department; and Vyomie Greene, Accounting Manager, Finance Department. The Committee was provided an overview of the project, information relative to the City’s Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided with general information on the scope of services and a copy of each proposal.  The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP.

The evaluation process resulted in the proposers being ranked by the Evaluation Committee in the following order with Foundation Risk Partners being unanimously ranked as the top-ranked respondent (See Attachment A):

                                                                        Proposed Annual Management Fee

1^st Foundation Risk Partners Corp. DBA Foundation Risk    $177,914.88

     Partners Public Entity Services

2^nd Southeast Series of Lockton Companies, LLC                $202,014.72                           

3^rd Gallagher Benefit Services, Inc.                                       $247,104.00

Aside from its excellent qualifications, the cost proposal submitted by Foundation Risk is $24,099.84 less than the cost proposal submitted by the second ranked firm and a savings of $12,165.12 over the City’s existing Agreement with Gallagher Benefit Services, Inc. 

Summary of Foundation Risk Partners DBA Foundation Risk Partners Public Entity Services

Foundation Risk Partners began with the convergence of two large, established consulting and brokerage platforms that now provide comprehensive employee benefits and property and casualty insurance services. The firm currently operates in fourteen states with more than 1200 employees and are among the top 20 largest insurance consulting and brokerage firms in the United States. It can leverage its position to develop and negotiate cost controlled, high-value benefit programs on behalf of the City and its employees.

Foundation Risk Partners represent large national brands such as, ABC Fine Wine & Spirits, IKEA, and H&M, along with numerous cities and municipalities in the U.S., such as City of Destin, Florida, City of North Miami, Florida, City of Deltona, Florida, Jackson County, BOCC, and City of Winter Garden, Florida. The firm understands the unique needs associated with a public entity, helping these employers manage people, compensation, and benefits programs in the face of mounting costs, regulatory pressures and ongoing changes in the healthcare and insurance industries.

The costs of the related services are subject to funds availability approved through the City’s budgeting process. The City has budgeted approximately $200k annually for health care benefits consulting services.  Grant funding will not be utilized for this project.

After reviewing all the submissions and the Evaluation Committee process, I concur with the Evaluation Committee and find Foundation Risk Partners DBA Foundation Risk Partners Public Entity Services to be the best qualified firm to assist the Administration with actuarial and other services regarding employee insurance and benefits programs.

The Evaluation Committee, which unanimously ranked Foundation Risk as the top-ranked firm, noted that the following points were particularly important when considering the firm:

- Foundation Risk has broad experience designing and managing insurance and benefit programs for other organizations of similar size, demographics, and complexity to the City.

- The firm has strong ties in Florida and, as such, has an excellent working knowledge of Florida law and the Florida market for health insurance and employee benefits programs.

- Finally, the firm has demonstrated a successful record in negotiating insurance contracts that result in cost savings to its clients. 

It is important to note that, in addition to its top score for qualifications and services, Foundation Risk also provided the lowest cost proposal of all respondents.