TO: Board of Trustees
THROUGH: Carolyn Gonot, Executive Director
FROM: Kim Shanklin, Chief People Officer
PRESENTER(S): Kim Shanklin, Chief People Officer
TITLE:
title
Change Order: Life Insurance Contract Extension - Bargaining Employees (Lincoln National Life Insurance Co)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and ratify contract extension and authorize the Executive Director to execute the contract amendment and associated disbursements with Lincoln National Life Insurance Co.
BACKGROUND:
This contract represents life insurance benefits for UTA’s bargaining unit employees through Lincoln National Life Insurance Co.
DISCUSSION:
Lincoln National Life Insurance Co has been utilized by UTA since 2016 as a life insurance provider. UTA would like to renew their services for the 2021-2022 Benefit Plan year. The provider did not increase the life insurance rates. The expected cost for this one-year extension is projected to be $89,686, bringing the total for the six-year contract to approximately $538,118. The contract value is based on past years’ cost and the number of participating employees. Following this one year extension, UTA intends to issue a new RFP for procurement of life insurance.
CONTRACT SUMMARY:
Contractor Name:
Lincoln National Life Insurance Co
Contract Number:
16-1752-1
Base Contract Effective Dates:
5-1-2016 through 4-30-2021
Extended Contract Dates:
5-1-2021 through 4-30-2022
Existing Contract Value:
$448,432.27
Amendment Amount:
$89,686.45
New/Total Amount Contract Value:
$538,118.72
Procurement Method:
Original contract procured through RFP.
Funding Sources:
UTA-ATU Joint Insurance Trust Fund
ALTERNATIVES:
Not approving this extension/change order would require UTA to exercise the competitive bid process to locate a provider. This would delay life insurance benefits for employees and possibly require employees to switch providers mid benefit year.
FISCAL IMPACT:
No fiscal impact to UTA.
ATTACHMENTS:
1. Extension Letter 2. Original Contract