Title
Approve and authorize the Contracts/Purchasing Officer to execute Amendment No. 3 of Agreement #11606 with The Lipman Company (TLC) for benefits administration services, extending the term of the Agreement to September 30, 2013 on a month to month basis and increasing the amount of the contract by $25,000 to a total of $150,000.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors approve and authorize the Contracts/Purchasing Officer to execute Amendment No. 3 of Agreement #11606 with The Lipman Company (TLC) for benefits administration services, extending the term of the Agreement to September 30, 2013 on a month to month basis and increasing the total amount of the contract by $25,000 to a total of $150,000.
SUMMARY:
Extending the Agreement to permit continuation of services will allow Human Resources sufficient time to finalize the Request for Proposal (RFP) process underway while maintaining the third party administration of the existing Alternative Benefit Option Program (ABO), the Dependent Care Assistance Program (DECAP) and the Voluntary Optional Benefits programs, all benefits which are currently offered by the County.
DISCUSSION:
The Agreement with TLC was adopted by the Board of Supervisors in December 2009 during the implementation phase of the Payroll module of the Enterprise Resource Project (ERP). The previous vendor was not capable of interfacing with the new ERP project. In order to avoid delaying the project this Agreement was implemented.
Subsequently, implementation of the Payroll module was delayed until the fall of 2010, and the Agreement was extended (Amendment #1) until December 6, 2011. The Agreement was not amended prior to December 6, 2011, and therefore, expired on that date. Once implementation occurred, a more accurate scope of work was developed, and an RFP was issued for a Third Party Administrator (TPA) for the ABO, DECAP and Voluntary Optional Benefits Programs and Renewal and Amendment #2 which extended the contract to September 30, 2012 on a month to month basis (renewal of the contract that expired January 6, 2011) was approved by the Board of Supervisors.
After reviewing the two responses to the initial RFP, it was determined that neither were acceptable, therefore both responses were rejected. A new scope of work has been developed and another RFP was issued on August 28, 2012. Extending the contract until September 30, 2013 on a month to month basis will allow time for the second RFP to be completed. In addition, the initial contract amount was $125,000. Amendment #3 increases this amount by $25,000 for a not to exceed amount of $150,000 for the duration of the contract. The month to month option in this extension will allow the County to execute a formal contract with the selected vendor from the RFP and if necessary to end the contract with TLC (if they are not the selected vendor) with 30 days notice.
OTHER AGENCY INVOLVEMENT:
None.
FINANCING:
Financing for this amendment is included in the approved FY 2012-13 Budget. Revenues are provided through monthly departmental charges. No additional general fund contribution is necessary for this action.
Prepared by: Approved by:
Terri Cook Kimberley Moore
Management Analyst II Acting Director of Human Resources
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Attachments:
Attachment A - Amendment No. 3 to TLC Agreement #11606
Attachment B - TLC Agreement # 11606 history
cc: Michael Miller, Auditor-Controller