STRATEGIC PRIORITY: Core
AGENDA DATE: June 11, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service contract, with two one-year renewal options, for health savings accounts, flexible spending accounts, COBRA, and direct billing management for City employees and retirees for the Department of Human Resources - HSA Bank, a division of Webster Bank, N.A., most advantageous proposer of seven - Not to exceed $666,609.00 - Financing: Employee Benefits Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service contract is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis.
This service contract will provide for health savings accounts (HSA), flexible spending accounts (FSA), COBRA, and direct billing management for City employees and retirees for the Department of Human Resources. The Employee Benefits Division of the Department of Human Resources operates and manages the City’s health benefits programs related services; therefore, it is crucial for the City to offer and provide health coverage options to eligible employees and their dependents. This contract will provide processing administration, large-case management, customer service, COBRA, direct bill services, FSA, and HSA administration.
To obtain the most competitive pricing, proposals were accepted for bundled services. The following services were bundled:
• Flexible Spending Accounts
• Health Savings Account
• COBRA Administration
• Direct Bill Administration
There are approximately 2,920 active FSA, 476 active dependent care, 3,472 active HSA participants, as well as 198 pre-HSA employees enrolled in the plans.
The 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, and it will continue to be the system of use.
A six-member committee from the following departments reviewed and evaluated the qualifications:
• Budget and Management Services (1)
• Dallas Police Department (1)
• Department of Human Resources (1)
• Office of Emergency Management and Crisis Response (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 to the City 30 points
• Capability and expertise 25 points
• Technical match to requirements 15 points
• Business Inclusion & Development Plan 15 points
• Functional 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
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Employee Benefits Fund |
$222,203.00 |
$222,203.00 |
$222,203.00 |
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$666,609.00 |
Other Services |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
0.00% |
0.00% |
$0.00 |
|
• This item is Other Services which does not have an availability and disparity participation goal. |
|
• HSA Bank, a division of Webster Bank, N.A. - Non-local; Workforce - 0.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Request for Competitive |
• Utilized for high technology procurements, insurance procurements, and other goods and services |
|
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 |
|
|
• Always involves a team evaluation |
|
|
• Allows for negotiation on contract terms, including price |
The Office of Procurement Services received the following proposals from solicitation number BVZ25-00027350. We opened them on April 4, 2025. We recommend the City Council award this service contract in its entirety to the most advantageous proposer.
*Denotes successful proposer
Proposers Address Score
*HSA Bank, a division 515 North River Center Drive 77.5
of Webster Suite 235
Bank, N.A. Milwaukee, WI 53212
Optum 1 Optum Circle 75.74
Eden Prairie, MN 55344
Met Life 200 Park Avenue 71.38
NewYork, NY 10166
Total Administrative Service 2302 International Lane 71.05
Corporation Madison, WI 53704
Fidelity Investments HSA 245 Summer Street 62.54
Boston, MA 02210
Zynera Health 12848 Queensbury Lane 47.50
Suite 208
Houston, TX 77024
Pro Sidian Consulting, LLC 1029 Sedgewood Place Court 41.75
Charlotte, NC 28211
OWNER/EXECUTIVE
HSA Bank, a division of Webster Bank, N.A.
Chad Wilkins, Chief Executive Officer