STATE OF NEW MEXICO
New Mexico Retiree Health Care Authority
General Services Department/Risk Management Division
Albuquerque Public Schools
REQUEST FOR PROPOSALS
RFP #2016-IBAC-0001
Actuarial and Benefit Consulting Services
Proposal Issue Date: February 26, 2016
Proposal Due Date: March 17, 2016
TABLE OF CONTENTS
I. INTRODUCTION PAGE
A. Purpose of this request for proposals 3
B. Summary Scope of Work 3
C. Scope of Procurement 3
D. Procurement Manager 3
E. Definition of Terminology 4
F. Background Information 5
II. CONDITIONS GOVERNING THE PROCUREMENT
A. Sequence of Events 7
B. Explanation of Events 7
C. General Requirements 10
III. RESPONSE FORMAT AND ORGANIZATION
A. Number of Responses 14
B. Number of Copies 14
C. Proposal Format 14
IV. SPECIFICATIONS
A. Detail Scope of Work 15
B. Mandatory Specifications 16
V. EVALUATION OF PROPOSALS
A. Evaluation Process 16
APPENDICES
Appendix A. Acknowledgment of Receipt Form 18
Appendix B. Sample Contract 19
Appendix C. Detail Scope of Work 20
Appendix D. Cost Proposal Form 24
Appendix E. General Questionnaire 25
Appendix F. Proposal Certification 27
Appendix G. Campaign Contribution Disclosure Form 28
Appendix H. Letter of Transmittal Form 31
I. INTRODUCTION
A. PURPOSE OF THIS REQUEST FOR PROPOSALS
The New Mexico Retiree Health Care Authority (NMRHCA), General Services Department Risk Management Division (RMD) and Albuquerque Public Schools (APS), are requesting proposals from qualified offerors to provide actuarial and benefit consulting services for its retiree and employee benefit programs. Each participating agency, (NMRHCA, RMD and APS) individually reserve the option of renewing the initial contract on an annual basis for three (3) additional successive fiscal years pursuant to Section 13-1-150 NMSA 1978.
B. SUMMARY SCOPE OF WORK
1. Actuarial and Benefit Consulting Services
The participating agencies are seeking proposals from qualified offerors to provide actuarial and benefit consulting services for its retiree and employee benefit plans. The consultant selected pursuant to this RFP process will begin providing consulting service July 1, 2016.
2. Proposal Discussions with Individual Offerors
The above mentioned agencies reserve the right to conduct discussions with responsible offerors who submit acceptable or potentially acceptable proposals.
3. Amendments
This RFP shall not be modified in any way except by written amendment. Offerors shall acknowledge receipt of any and all amendments in writing.
C. SCOPE OF PROCUREMENT
The scope of procurement is to establish a professional services contract with a qualified offeror(s) to perform actuarial and benefit consulting services. The initial agreement will end one (1) year from the date of award. The participating agencies reserve the option of extending the contract on an annual basis for three (3) additional years, or any portion thereof. In no case will the contract, including all amendments thereof, exceed a total of four (4) years in duration.
D. PROCUREMENT MANAGER
The participating agencies have designated a Procurement Manager who is responsible for the conduct of this procurement whose contact information is listed below.
David Archuleta, Deputy Director
New Mexico Retiree Health Care Authority
4308 Carlisle Blvd. NE, Suite 104
Albuquerque, New Mexico 87107
Email:
Phone: (505) 222-6416
Fax: (505) 884-8611
All deliveries via express carrier should be addressed as follows:
David Archuleta, Deputy Director
New Mexico Retiree Health Care Authority
4308 Carlisle Blvd. NE, Suite 104
Albuquerque, New Mexico 87107
Email:
Phone: (505) 222-6416
Fax: (505) 884-8611
Any inquiries or requests regarding this procurement should be submitted to the Procurement Manager in writing. Offerors may contact ONLY the Procurement Manager regarding this procurement. Other state employees do not have the authority to respond on behalf of the participating agencies.
E. DEFINITION OF TERMINOLOGY
This section contains definitions and abbreviations that are used throughout this procurement document.
"APS" means Albuquerque Public Schools.
“Close of Business” means 5:00 PM Mountain Standard or Mountain Daylight Time, whichever is in effect on the date given.
"Contract" means a written agreement for the procurement of items of tangible personal property or services.
"Contractor" means a successful offeror who enters into a binding contract.
"Determination" means the written documentation of a decision by the Procurement Manager including findings of fact supporting a decision. A determination becomes part of the procurement file.
"Desirable" - The terms "may", "can", "should", "preferably", or "prefers" identifies a desirable or discretionary item or factor (as opposed to "mandatory”).
"DFA" means the Department of Finance and Administration for the State of New Mexico.
"Evaluation Committee" means a body appointed by the state management to perform the evaluation of offeror proposals.
"Evaluation Committee Report" means a document prepared by the Procurement Manager and the Evaluation Committee for submission to the State Purchasing Agent for contract award. It contains all written determinations resulting from the procurement.
"Finalist" is defined as an offeror who meets all the mandatory specifications of this Request for Proposals and whose score on evaluation factors is sufficiently high to merit further consideration by the Evaluation Committee.
"Mandatory" - The terms "must", "shall", "will", "is required", or "are required", identify a mandatory item or factor (as opposed to “desirable”). Failure to meet a mandatory item or factor will result in the rejection of the offeror's proposal.
“NMRHCA” means the New Mexico Retiree Health Care Authority.
"Offeror" is any person, corporation, or partnership who chooses to submit a proposal.
“Participating agencies” means NMRHCA, RMD and APS.
"Procurement Manager" means the person or designee authorized by the IBAC to manage or administer a procurement requiring the evaluation of competitive sealed proposals.
"Request for Proposals" or "RFP" means all documents, including those attached or incorporated by reference, used for soliciting proposals.
"Responsible Offeror" means an offeror who submits a responsive proposal and who has furnished, when required, information and data to prove that its financial resources, production or service facilities, personnel, service reputation and experience are adequate to make satisfactory delivery of the services or items of tangible personal property described in the proposal.
"Responsive Offer" or "Responsive Proposal" means an offer or proposal which conforms in all material respects to the requirements set forth in the Request for Proposals. Material respects of a request for proposals include, but are not limited to, price, quality, quantity or delivery requirements.
“RMD” means the General Services Department, Risk Management Division.
“State Purchasing Agent” or “SPA” means the purchasing agent for the State of New Mexico or a designated representative.
F. BACKGROUND INFORMATION
The Health Care Purchasing Act (Act) of 1997 [13-7-1 NMSA 1978] was enacted to ensure public employees, public school employees and retirees of public employers and the public schools access to more affordable and enhanced quality of health insurance/coverage through cost containment and savings effected by procedures for consolidating the purchasing of publicly financed health insurance/coverage. The Act requires the NMRHCA, RMD, APS and the Public School Insurance Authority (NMPSIA) to enter into a cooperative consolidated purchasing strategy to provide plans of health care benefits for eligible participants of the respective agencies. The Act does not extend to the procurement of actuarial and benefit consulting services. However, this procurement seeks to align the same purchasing strategy for NMRHCA, RMD and APS for actuarial and benefit consulting services.
New Mexico Retiree Health Care Authority (NMRHCA)
www.nmrhca.state.nm.us
NMRHCA was created on February 13, 1990, by the New Mexico Retiree Health Care Act. The Act was created to provide comprehensive group health insurance coverage for individuals who have retired or will retire from public service in New Mexico. NMRHCA is governed by a 12 member Board of Directors responsible for administering the New Mexico Retiree Health Care Act.
The NMRHCA provides health care benefits for eligible retirees and their dependents from public entities that participate in the program. This includes retirees transitioning from the programs administered by RMD, APS and NMPSIA, as well as other public sector organizations. Currently, NMRHCA provides coverage for approximately 60,000 retirees and eligible dependents. According to the most recent actuarial valuation as of June 30, 2014, NMRHCA reported a $3.4 billion unfunded liability and a funded ratio of 10.08 percent. In addition, the latest solvency study performed as of June 30, 2015, indicated a solvency period through 2035 supported by $430 million in assets.
Beginning in fiscal year 2017, NMRHCA will have to begin compliance with Governmental Accounting Standards Board Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. GASB 74 requires enhanced note disclosures and is effective for financial statements for fiscal years beginning after June 15, 2016. In addition, NMRHCA will have to begin compliance with GASB 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions effective for fiscal years beginning after June 15, 2017
The State of New Mexico Risk Management Division (SONM)
http://www.generalservices.state.nm.us/riskmanagement/
The SONM provides insurance coverage for all active employees of the State of New Mexico and includes some 95 New Mexico municipalities, schools, and counties known as local public bodies. The SONM currently covers approximately 75,000 members under its three (3) medical plans, the dental plan, and the vision plan. Additional local governmental plans have joined the SONM plans; the employees will be included in the census. Others may elect to join in the future, but must offer the same plans as the SONM. Regarding annual enrollment opportunities for individual participants, there is an open enrollment in year one, and for years two through four there is a switch enrollment for medical only. Regarding premium / fee billing, SONM prepares a consolidated premium / fee statement that combines all of their entities.
Albuquerque Public Schools (APS)
www.aps.edu
APS offers benefits to approximately 11,500 full-time employees, including employees at 89 elementary schools, 27 middle schools, 13 high schools and 13 alternative schools. By statute, APS is the only New Mexico public school not part of the NMPSIA pool. APS currently covers approximately 17,000 members in our self-insured medical plan (one plan design administered by two vendors with distinct provider networks), approximately 18,700 members in our two self-insured dental plans, and approximately 16,200 members in our self-insured vision plan. Participation in the APS plans is exclusive to APS employees.
II. CONDITIONS GOVERNING THE PROCUREMENT
This section of the RFP contains the schedule for the procurement, describes the major procurement events and the conditions governing the procurement.
A. SEQUENCE OF EVENTS
The Procurement Manager will make every effort to adhere to the following schedule:
Action / Responsible Party / Due Dates1. Issue RFP / NMRHCA, RMD, & APS / February 26, 2016
2. Distribution List (Acknowledgment of Receipt) / Procurement Manager / March 2, 2016
3. Deadline to submit
Questions / Potential Offerors / March 4, 2016
4. Response to Written
Questions / Procurement Manager / March 9, 2016
5. Submission of Proposal / Potential Offerors / March 17, 2016
6. Proposal Evaluation / Evaluation Committee / March 21 – 23, 2016
7. Selection of Finalists / Evaluation Committee / March 24, 2016
8. Best and Final Offers / Finalist Offerors / March 31, 2016
9. Oral Presentation(s) / Finalist Offerors / March 31, 2016
10. Finalize Contractual Agreements / Agency/Finalist Offerors / April 8, 2016
11. Contract Awards / Agency/ Finalist Offerors / July 1, 2016
12. Protest Deadline / Procurement Manager / +15 days of contract award
B. EXPLANATION OF EVENTS
The following paragraphs describe the activities listed in the sequence of events shown in Section II, Paragraph A.
1. Issuance of RFP
This RFP is being issued by the participating agencies on the date specified in the Sequence of Events. It will be available on that date from the Internet website http://www.nmrhca.state.nm.us by selecting the “Request for Proposals” link.
2. Distribution List Response Due (Acknowledgment of Receipt)
Potential offerors should hand deliver or return by email or by registered or certified mail the “Acknowledgment of Receipt Form” (Appendix A) that accompanies this document to have their organization placed on the procurement distribution list. The form should be signed by an authorized representative of the organization, dated and returned by 3:00 p.m. on March 2, 2016. The procurement distribution list will be used for the distribution of written responses to questions and any RFP amendments.
Failure to return this form shall constitute a presumption of receipt and rejections of the RFP, and the potential offeror’s organization name shall not appear on the distribution list.
3. Deadline to Submit Written Questions
Potential offers may submit written questions about the RFP until 5:00 p.m. on March 4, 2016. All written question must be addressed to the Procurement Manager.
4. Response to Written Questions/RFP Amendments
Written responses to written question and any RFP amendments will be posted on the NMRHCA website no later than 5:00 p.m. on March 9, 2016.
5. Submission of Proposal
ALL OFFEROR PROPOSALS MUST BE RECEIVED FOR REVIEW AND EVALUATION BY THE PROCUREMENT MANAGER OR DESIGNEE NO LATER THAN 3:00 P.M. MOUNTAIN DAYLIGHT TIME March 17, 2016. Proposal received after this date and time will not be accepted. The date and time will be recorded on each proposal. Proposals must be addressed and delivered to the Procurement Manager at the address listed in Section I, Paragraph D. Proposals must be labeled on the outside of the package to clearly indicate that they are in RESPONSE TO THE BENEFIT CONSULTING SERVICES REQUEST FOR PROPOSALS. Proposals submitted by facsimile will not be accepted. A public log will be kept of the names of all offeror organizations that submit proposals. Pursuant to Section 13-1-116 NMSA 1978, the contents of any proposal shall not be disclosed to competing offerors prior to contract award.
6. Proposal Evaluation
An evaluation committee consisting of members of the participating agencies will perform the evaluation of proposals. This process will take place between the proposal due date and March 23, 2016. During this time, the Procurement Manager may initiate discussions with offerors who submit responsive or potentially responsive proposals, but proposals may be accepted and evaluated without such discussion. Discussions SHALL NOT be initiated by the offerors.
7. Selection of Finalist(s)
The Evaluation Committee will select potential finalists and the Procurement Manager will notify potential finalists on March 24, 2016. Only finalist(s) will be invited to participate in the subsequent steps of the procurement. If the Evaluation Committee requests an oral presentation, the schedule for the oral presentation will be determined at that time.