Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
CFO: Cassey Ogden
DATE: September 20, 2022
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with Continental American Insurance Company, for
voluntary insurance products, including accident, critical illness with cancer, and hospital indemnity
coverage for the City of Denton employees; providing for the expenditure of funds therefor; and providing
an effective date of January 1, 2023 (RFP 7982-1 – awarded to Continental American Insurance Company,
for three (3) years, with the option for two (2) additional one (1) year extensions, in the total five (5) year
not-to-exceed amount of $1,685,000.00).
INFORMATION/BACKGROUND
In 2021, the City implemented the Aflac products mid-year through a special open enrollment in August
2021 which was effective September 1, 2021. The Aflac voluntary products were also offered in the regular
annual open enrollment period in October 2021, with benefits effective on January 1, 2022. The current
Aflac contract terminates on December 31, 2022.
As with other voluntary benefits the City offers (e.g., dental and vision coverage), the Aflac voluntary
products, including accident, critical illness with cancer, and hospital indemnity coverage, are funded 100%
by employees through payroll deductions. The City does not contribute to the premiums for voluntary
products.
A formal RFP process was initiated in May 2022 to solicit proposals for voluntary products to include
accident, critical illness with cancer, hospital indemnity, and long-term care coverage.
Nine (9) proposals were reviewed and scored by an evaluation team that included representatives from the
City’s Employee Insurance Committee (EIC) and staff members from Human Resources.
The evaluation team ranked Aflac as the proposal that provided the best overall value for the City’s
employees and dependents. The main differentiator between Aflac and the other bidders were the additional
riders for organized sports for adults and children, and the gunshot wound/line of duty that was not fully
available from the other vendors. No proposal included long-term care coverage on a group basis.
Project Description (*Two-year rate guarantee) Estimated 5-Year Expenditure
Year 1* $259,000
Year 2* $285,000
Year 3** $345,000
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Year 4** $379,000
Year 5** $417,000
Total: $1,685,000
**10% premium rate increase each year, starting in year 3 (2025)
Request for Proposals was sent to 97 prospective suppliers. In addition, specifications were placed on the
Procurement website for prospective suppliers to download and advertised in the local newspaper. Nine (9)
proposals were received, references were checked, and proposals were evaluated based upon published
criteria including compliance with specifications, probable performance, and price. Best and Final Offers
(BAFO) were requested from the top firm. Based on this evaluation, Continental American Insurance
Company was ranked the highest and determined to be the best value for the City.
NIGP Code Used for Solicitation: 953 - (Service Only) - Insurance and
Insurance Services, (All Types)
Notifications sent for Solicitation sent in IonWave: 97
Number of Suppliers that viewed Solicitation in IonWave: 18
HUB-Historically Underutilized Business Invitations sent out: 7
SBE-Small Business Enterprise Invitations sent out: 21
Responses from Solicitation: 9
RECOMMENDATION
Award a contract to Continental American Insurance Company, for voluntary insurance products, including
accident, critical illness with cancer, and hospital indemnity coverage for the City of Denton employees, in
a three (3) year, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-
to-exceed amount of $1,685,000.
PRINCIPAL PLACE OF BUSINESS
Continental American Insurance Company
Columbia, SC
ESTIMATED SCHEDULE OF PROJECT
This is an initial three (3) year contract with options to extend the contract for two (2) additional one (1)
year periods, with all terms and conditions remaining the same, starting on January 1, 2023.
FISCAL INFORMATION
The voluntary products are funded 100% by employees through payroll deduction. The City does not
contribute to the premiums for voluntary products.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Linda Kile, 940-349-8388.
Legal point of contact: Marcella Lunn at 940-349-8333.