Explanation
Background Information:
This ordinance authorizes and directs the Director of the Department of Human Resources to modify and renew a contract with Brown & Brown of Massachusetts, LLC for employee benefit audits for the following lines of business: medical, pharmacy, dental and pharmacy market check. In addition, this ordinance authorizes the expenditure and establishes a maximum obligation liability of $145,000.00 to be paid from the employee benefits fund. This ordinance represents the second extension of the available two extensions under this contract or year five of the contract. Every year the contract renewal is subject to available appropriation and funding. This is the final available extension. The time period for this contract is August 1, 2024 through December 31, 2025. This contract is for seventeen (17) months to allow for the auditors to complete annual audit services, which is the basis for this modification and renewal legislation. At the time the contract was initially executed, pharmacy reconciliation files were available earlier in the year. At this time, pharmacy reconciliation files are not available until the fall of the following year (i.e., 2024 plan year reconciliations files will be available in the fall of 2025). The Department of Human Resources is going out to bid for audit services in 2025 and will set the new contract dates to line up with the service deliverables. Appropriations for this expense were approved under ordinance 3012-2023.
Previous contract and expenditure authority was provided under 1774-2020, 1239-2021, 1619-2022 (merger), 1861-2022 and 1313-2023.
The maximum fees for these services from August 1, 2020 through December 31, 2025 will not exceed
$684,500.00
Fiscal Impact: Funding for this contract totals $145,000.00 and is budgeted in the 2024 employee benefits fund budget. Every year, contract renewal is subject to available and adequate appropriation and funding. The appropriations for this expense...
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