STRATEGIC PRIORITY: Core
AGENDA DATE: June 11, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
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SUBJECT
Title
Authorize a three-year service contract, with two one-year renewal options, for dental and vision insurance plans for the Department of Human Resources - Delta Dental Insurance Company and Metropolitan Life Insurance Company, most advantageous proposer of six - Financing: No cost consideration to the City (see Fiscal Information)
Body
BACKGROUND
This service contract will provide for dental and vision insurance plans for the Department of Human Resources. The Department of Human Resources operates and manages the City's dental and vision insurances plans to provide coverage to eligible employees, retirees, and dependents. However, enrollment in these programs does not involve any financial contribution from the City. Employees may choose to enroll at their discretion, but they are responsible for their premiums. There are approximately 11,300 active employees and 2,000 retirees who have enrolled in the dental plans and approximately 10,250 active employees and 1,700 retirees enrolled in the vision plan.
This benefits program is structured on a calendar-year basis. During the annual enrollment held in September or October each year, employees and retirees may elect plan changes that will become effective on January 1st of the following year. The City currently uses Workday as the eligibility system.
A five-member committee from the following departments reviewed and evaluated the qualifications:
• Dallas Police Department (1)
• Dallas Water Utilities Department (1)
• Department of Human Resources (1)
• Office of Procurement Services (2)*
*The Office of Procurement Services evaluated cost, local preference, and the Business Inclusion and Development Plan, if applicable.
The committee selected the successful respondents on the basis of demonstrated competence and qualifications under the following criteria:
• Cost and pricing structure 30 points
• Expertise 25 points
• Business Inclusion and Development Plan 15 points
• Technical match to requirements 15 points
• Capability match to requirements 10 points
• Local Preference 5 points
As part of the solicitation process and in an effort to increase competition, the Office of Procurement Services used its procurement system to send out email notifications to vendors registered under relevant commodity codes. To further increase competition, the Office of Procurement Services uses historical solicitation information, the Internet, and vendor contact information obtained from user departments to contact additional vendors.
On November 10, 2015, the City Council authorized a living wage policy that requires contractors to pay their employees a “living wage” rate as established annually by the Massachusetts Institute of Technology Living Wage Calculator for Dallas County by Resolution No. 15-2141. The calculated living wage during the solicitation process of this contract is $22.05; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On, June 24, 2020, the City Council authorized a three-year Health and Welfare Benefits and related Services Third Party Administrator Contract, with two one-year renewal options, for health and welfare benefits, disease management, wellness and communications support, pharmacy benefit management services, hospital audit functions, COBRA, Health Savings Account and Flexible Spending Account administration; a fully-insured Post-65 Retiree Medicare Advantage-Prescription Drug Coverage Contract; a two year application, with one one-year renewal option, for stop loss coverage with Blue Cross Blue Shield of Texas, a three-year service contract, with two one-year renewal options, for a fully insured dental plan with Delta Dental Insurance Company, and a three-year service contract, with two one-year renewal options, for a fully insured vision plan with Davis Vision, Inc. by Resolution No. 20-1122.
The Government Performance and Financial Management Committee will be briefed by memorandum regarding this matter on June 10, 2025.
FISCAL INFORMATION
No cost consideration to the City.
Note: There is no City contribution associated with these voluntary benefit plans. Employees and retirees are responsible for 100% of premium costs.
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
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Request for Competitive |
• Utilized for high technology procurements, insurance procurements, and other goods and services |
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Sealed Proposal |
• Recommended offeror whose proposal is most advantageous to the City, considering the relative importance of price, and other evaluation factors stated in the specifications |
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• Always involves a team evaluation |
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• Allows for negotiation on contract terms, including price |
The Office of Procurement Services received the following proposals from solicitation number BGZ25-00026980. We opened them on March 7, 2025. We recommend the City Council award this service contract to the most advantageous proposers.
*Denotes successful proposers
Proposers Address Score
*Delta Dental Insurance 1130 Sanctuary Pkwy. Group 1 - 81.59
Company Alpharetta, GA 30009 Group 2 - 75.84
*Metropolitan Life 200 Park Ave. Group 1 - 77.33
Insurance Company New York, NY 10166 Group 2 - 76.69
Avesis Third Party 1295 West Washington St. Group 1 - No bid
Administrators, LLC Suite 212 Group 2 - 59.42
Tempe, AZ 85281
Blue Cross Blue Shield 1001 East Lookout Dr. Group 1 - 63.87
of Texas Richardson, TX 75082 Group 2 - 67.63
EyeMed Vision Care, LLC 4000 Luxottica Pl. Group 1 - No bid
Mason, OH 45040 Group 2 - 74.11
National Vision Administrator, 1200 Route 46 West Group 1 - No bid
LLC Clifton, NJ 07013 Group 2 - 74.33
OWNERS/EXECUTIVES
Delta Dental Insurance Company
Sarah Chavarria, President
Metropolitan Life Insurance Company
Michel A. Khalaf, President