Explanation
BACKGROUND:
This ordinance authorizes and directs the Director of the Department of Human Resources to modify and renew a contract with Aon Consulting Inc. for employee benefits consulting services including, but not limited to, assistance in determining employee and employer insurance rates, labor negotiation cost estimations, federal reporting mandate under the Consolidated Appropriations Act, 2021 and benefit administration. In addition, this ordinance authorizes the expenditure and establishes a maximum obligation liability of $345,000.00 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 fifth-year contract dates are from March 1, 2024 to March 31, 2025. Originally, the fifth-year contract term was for twelve (12) months. This contract is for thirteen (13) months to allow for the consultant to complete annually required services, which is the basis for this modification and renewal legislation. At the time the contract was initially executed, specific required annual services were not due in the month of March. The Department of Human Resources is going out to bid for consultant services in 2024 and the April 1st start date for the new contract will align with service deliverables.
This contract is an increase of $97,000.00 from the 2023 renewal. The detail for this increase is as follows:
- An increase of $4,000.00 for the federal reporting mandate under the Consolidated Appropriations Act, 2021
- $8,000.00 for optional Credible Coverage Analysis
- $65,000.00 for an optional Wellness platform vendor review, implementation, project development and tobacco cessation vendor assessment (if separate from the Wellness platform vendor)
- Approximately $20,000.00 for the additional month of general consulti...
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