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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: December 14, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to an Administrative Services Agreement between the City of Denton and United Behavioral Health dba Optum, amending the contract approved by purchasing on February 1, 2021; said first amendment for Employee Assistance Program services for the City of Denton employees; providing for the expenditure of funds therefor; and providing an effective date (RFP 7776 – Employee Assistance Program (EAP)) – awarded to United Behavioral Health dba Optum, for three (3) years, with the option for two (2) additional one (1) year extensions, in the total five (5) year ($1.53 per employee per month (pepm)) not-to-exceed amount of $172,000.00). INFORMATION/BACKGROUND The City has offered an Employee Assistance Program (EAP) to our employees since 1999. The City’s EAP provides up to six face-to-face counseling sessions, at no cost, to employees and their dependents. These sessions can address issues affecting the whole person, including mental health, family, work, stress, financial, legal, substance abuse, and health concerns. The EAP also provides many services to the City as an employer. Licensed specialists provide assistance for supervisors and managers who are working with employee issues in the workplace. Additionally, each year the City receives designated hours of on-site training that can be provided to employees on a variety of topics. The EAP also provides unlimited Critical Incidence Response Services (CIRS) in the case of traumatic or catastrophic events (e.g., workplace violence, major weather events). Due to service concerns, the City changed EAP vendors on an interim contract basis. Effective February 1, 2021, Optum began providing EAP services. The City’s current relationship with Optum has been very positive. Because the current Optum contract is interim only, the City conducted a formal RFP process to receive bids for a new multi-year EAP contract for the 2022 plan year to be effective January 1, 2022. The City received three proposals from Alliance Work Partners (AWP), Humana, and Optum, the incumbent vendor. The three proposals were reviewed by an evaluation committee comprised of Staff from the benefits team and members of the Employee Insurance Committee (EIC). The proposals were evaluated using the following criteria: City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 30% - Ability to comply with the Scope of Services Specifications 30% - Pricing 40% - Probable Performance The evaluation committee ranked Optum as the top finalist. As a result of the rankings, Staff recommends that the contract be awarded to Optum as the committee believes Optum provides the best value for the City. The City’s medical plans are “in-network only” plans, meaning a member must use a provider who is on the carrier's approved network for the services to be covered under the insurance plan. It is vital that if an employee needs continued counseling after using the six visits provided under the EAP, that the EAP be able to “match to insurance” to ensure the provider the member is referred to will accept the City’s insurance. AWP and Humana cannot provide a “match to insurance” to allow employees to continue counseling sessions with an in-network provider if the employee does not get a resolution within those six visits. Optum is affiliated with the incumbent medical insurance carrier, UnitedHealthcare (UHC); all EAP providers are also part of UHC’s provider network to ensure continuity of care and coverage. Project Description Estimated 5-Year Expenditure EAP – Year 1* 32,000 EAP – Year 2* 32,000 EAP – Year 3* 32,000 EAP – Year 4 (10% increase from year 3) 36,000 EAP – Year 5 (10% increase from year 4) 40,000 Total $172,000 *Average employee monthly count is 1,740 x 12 months x $1.53 pepm = $31,942.27 Requests for Proposals was sent to 73 prospective suppliers, including two (2) Denton firms, of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Three (3) proposals were received, references were checked, and proposals were evaluated based upon published criteria including compliance with specifications, probable performance, and price. Based upon this evaluation, United Behavioral Health dba Optum 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: 73 Number of Suppliers that viewed Solicitation in IonWave: 12 HUB-Historically Underutilized Business Invitations sent out: 5 SBE-Small Business Enterprise Invitations sent out: 21 Responses from Solicitation: 3 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On February 1, 2021, Purchasing approved a contract with United Behavioral Health dba Optum, in the not-to-exceed amount of $172,000. RECOMMENDATION Award Amendment 1 to United Behavioral Health (“Optum”) for Employee Assistance Program (EAP) services for the Risk Management division, for a three (3) year term with the option for two (2) additional one-year renewals in the not-to-exceed amount of $172,000. PRINCIPAL PLACE OF BUSINESS United Behavioral Health dba Optum San Francisco, CA 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. FISCAL INFORMATION These services are funded from the Risk Retention Funds. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: Original Administrative Services Agreement 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.