Whereas the Purchasing By-Law 80-2020 requires Council approval to award contracts greater than $2,000,000; and,
Whereas Council approved CF-23-93, to issue a Request for Proposal (R.F.P.) in 2024 to secure Benefit Provider(s) for services commencing in 2025; and,
Whereas the benefit plan designs will remain the same; and,
Whereas the overall cost of the employee group benefit plan contracted through external benefits providers is made up of premiums for the experience rated benefits, namely Group Life, L.T.D., and A.S.O. expenses (Extended Health and Dental); and,
Whereas Procurement issued R.F.P. C2024-024 Benefits Providers(s) for an initial five (5) year term, with the option to extend for an additional five (5) year term, subject to favourable service and pricing; and,
Whereas the R.F.P. allowed for the contract to be awarded in whole or part (by Life/L.T.D., and Health/Dental) based on the best overall value for the City; and,
Whereas Proponents do not have any control over the cost of the paid A.S.O. claims and these costs are determined by the plan design and would be the same for all benefit proponents; and,
Whereas three (3) bids were received and opened by Procurement on March 25, 2024; and,
Whereas bids received are publicly posted on the City website at Oshawa's Bids and Tenders; and,
Whereas proposals were evaluated on qualification, experience, plan management, deliverables, and pricing; and,
Whereas the evaluation team unanimously scored the proposal received by Sun Life as comprehensive, thorough, addressed all requirements of the R.F.P. is the highest-ranking proponent and best satisfied the City’s requirements; and,
Whereas the proposal received from Sun Life in the annual amount of approximately $2.3 million ($11.6 million over 5 years not including the cost of the A.S.O. claims, as these amounts will vary based on usage) for an initial 5 year term, plus H.S.T.; and,
Whereas the funds are provided in the annual operating budget;
Therefore, be it resolved that, pursuant to Item CF-24-41:
- That the Manager, Procurement be authorized to award a contract to Sun Life in the amount of $11,563,000 plus H.S.T. for C2024-024 Benefits Provider(s); and,
- That the Manager, Procurement be authorized to extend the contract an additional five (5) year term, subject to favourable service and pricing