Agenda 04/12/2016 Item #16E 3 4/12/2016 16.E.3.
EXECUTIVE SUMMARY
Recommendation to approve Amendment #3 of Agreement #11-5729 with Allegiance, Inc.,for Group
Health Third Party Administration Services,providing for an additional one year renewal term,at the
existing rates and terms,and with the incorporation of an extension provision.
OBJECTIVE: To incorporate an additional renewal term and an extension provision to the current
agreement with Allegiance, Inc., at the current rates in order to facilitate a joint competitive solicitation with
the District Schools in calendar year 2017. The additional one year renewal would commence on January 1,
2017.
CONSIDERATIONS: The Board of Commissioners through the Risk Management Division offers a
comprehensive group insurance program to its employees and their eligible dependents. The program
includes a partially self-funded group health and dental insurance plan also known as the"Plan".
In order to properly manage the Plan, the County employs the services of a professional third party claims
administration company to adjudicate claims. In addition, the vendor provides services which include
HIPAA and COBRA administration services, flexible spending account services, dependent care
reimbursement account services, health reimbursement account services, Affordable Care Act consulting
services, and access to preferred provider networks as needed. Since 2012, the County has utilized
Allegiance,Inc. The existing agreement will expire on December 31,2016.
In order to leverage the number of covered members and thus, attract favorable rates and terms as part of a
formal solicitation, the County participated in a joint solicitation with the District School Board in 2011.
Staff is recommending that a similar approach be utilized for the upcoming solicitation. However, the
District School's agreement does not terminate until December 31,2017. Therefore, in order to participate in
a joint competitive solicitation process, Staff is recommending that the Board amend the current agreement
with Allegiance by providing for one additional renewal year, commencing on January 1, 2017 and
terminating on December 31, 2017, and the incorporation of an extension period. The extension period is
being incorporated, as permissible pursuant to Procurement Ordinance No. 15-37, Section C Section 19 C
(4). During the last renewal term, a joint competitive solicitation will be released and evaluated and a vendor
will be recommended for approval to be effective January 1, 2018. Allegiance has agreed to renew the
current agreement for one additional year and the extension period at the existing rates and terms.
Allegiance has demonstrated professional and responsive services during the term of the agreement.
Therefore, given the above, Staff recommends an additional one year renewal term and the extension period.
FISCAL IMPACT: The annual fees paid to Allegiance, Inc. are approximately $628,336 per year based
upon current enrollment. Funds are budgeted within Fund 517,Group Health and Life for this purpose.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires majority
vote for approval.—CMG
RECOMMENDATION: That the Board awards an additional one year renewal term and the extension
period to the existing agreement with Allegiance,Inc, for Group Health Third Party Administration Services,
at the existing rates and terms; and authorizes the Chairman to execute the attached County Attorney
approved Amendment.
PREPARED BY: Jeff Walker, CPCU,ARM,Director,Risk Management
Attachments: Amendment
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4/12/2016 16.E.3.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.E.16.E.3.
Item Summary: Recommendation to approve Amendment#3 of Agreement#11-5729
with Allegiance, Inc., for Group Health Third Party Administration Services, providing for an
additional one year renewal term and incorporation of an extension provision; and the rates
will remain the same.
Meeting Date: 4/12/2016
Prepared By
Name: WalkerJeff
Title: Division Director-Risk Management,Risk Management
3/18/2016 1:34:09 PM
Submitted by
Title: Division Director-Risk Management,Risk Management
Name: WalkerJeff
3/18/2016 1:34:11 PM
Approved By
Name: pochopinpat
Title: Operations Coordinator,Administrative Services Department
Date: 3/18/2016 4:46:36 PM
Name: HerreraSandra
Title: Manager-Procurement,Procurement Services
Date: 3/21/2016 4:10:30 PM
Name: MarkiewiczJoanne
Title: Division Director-Procurement Services,Procurement Services
Date: 3/21/2016 6:46:39 PM
Name: BurnsRhonda
Title: Procurement Specialist,Procurement Services
Date: 3/22/2016 4:34:32 PM
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4/12/2016 16.E.3.
Name: PriceLen
Title: Department Head-Administrative Svc,Administrative Services Department
Date: 3/24/2016 11:10:00 AM
Name: GreeneColleen
Title: Assistant County Attorney, CAO General Services
Date: 3/24/2016 11:17:24 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 3/25/2016 5:40:59 PM
Name: WellsLaura
Title: Management/Budget Analyst, Senior, Office of Management&Budget
Date: 3/28/2016 9:41:42 AM
Name: CasalanguidaNick
Title: Deputy County Manager, County Managers Office
Date: 4/2/2016 12:16:59 PM
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4/12/2016 16.E.3.
EXHIBIT A-3 Contract Amendment#3 to Contract#11-5729
"Third Party Administrator for Health Benefits"
This amendment,dated ,2016 to the referenced agreement shall be by and between the
parties to the original Agreement, Collier County Government (to be referred to as "the Plan Sponsor")
and Allegiance Benefit Plan Management, Inc.,(to be referred to as"the TPA").
Statement of Understanding
RE: Contract# 11-5729"Third Party Administrator for Health Benefits"
In order to continue the services provided for in the original agreement document referenced above, the
TPA agrees to amend the existing Agreement by extending the original renewal term and incorporating an
extension period,as provided below.
Note: Language deleted has been strue4E-thr-eugh. New language has been underlined.
Change No.1: Amend Page 1 of the Agreement as follows:
THIS Administrative Services Agreement (hereinafter "Agreement"), effective for the thirty-six (36)
month period beginning January 1, 2012, and ending December 31, 2014, and may be renewed for two
(three(3)additional one(1)year periods as mutually agreed by the parties in writing, is entered into by
COLLIER COUNTY GOVERNMENT, a political subdivision of the State of Florida,Collier County,
Naples, (hereinafter referred to as the "Plan Sponsor"), ALLEGIANCE BENEFIT PLAN
MANAGEMENT, INC., a corporation duly organized and existing under the laws of the State of
Montana(hereinafter referred to as the"TPA").
Change No.2: Amend Article V:Duration of Agreement,Page 10 as follows:
5.1 The Plan Sponsor may, at its discretion, extend the Agreement under all of the terms and conditions
contained in this Agreement for up to one hundred eighty(180)days. The Plan Sponsor shall give TPA
written notice of the Plan Sponsor's intention to extend the Agreement term not less than thirty(30) days
prior to the end of the Agreement term then in effect.
All other terms and conditions of the agreement shall remain in force.
(Signature page to follow)
I1Pdp,'
Amendment#3 to Contract#11-5-729
"Third Party Administrator for Health Benefits"
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4/12/2016 16.E.3.
IN WITNESS WHEREOF,the parties have each, respectively, by an authorized person or agent, have
executed this Amendment on the date(s)indicated below.
Accepted: ,2016
THE PLAN SPONSOR:
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY,FLORIDA
Dwight E.Brock,Clerk
BY: By:
Deputy Clerk Donna Fiala,Chairman
TPA's First Witness: THE TPA:
Allegiance Benefit Plan Management, Inc.
By: ,LL,/ ?,-2
...-----2. " "..
Print Name
Print Name and Title
PA's Secan• ' itness:
By: ( .__,_, --
Print Name
Approv i,. . , ., , :a IV:
Jeffrey Al la kow, County Attorney
2IPasc
Amendment#3 to Contract#11-5729
"Third Party Administrator for Health Benefits"
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