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: Long Term Disability Insurance Extension (Lincoln National Life Insurance Co)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and ratify award and authorize the Executive Director to execute the one-year amendment and associated disbursements with Lincoln Financial Group in the amount of $102,240.90 for Long Term Disability Insurance.
BACKGROUND:
UTA provides employee paid Long Term Disability insurance through a contract with Lincoln National Life Insurance Co. Lincoln has provided this service to UTA employees since 2016.
DISCUSSION:
UTA solicited for an LTD Insurance provider in 2016. Lincoln National Life Insurance Co was selected through a competitive bid process which compared both technical scores and pricing for the best overall value for the requested benefit. The base term of this contract was from May 2016-May 2019. Two additional extensions were executed taking the contract from May 2019-May 2021. This 6th year extension was executed to ensure all employee benefit contracts are on the same cycle, which allows UTA better options as we conduct RFPs for all employee benefits. The contract value is based on past years’ pricing and varies depending on the number of employees who participate in the plan.
CONTRACT SUMMARY:
Contractor Name:
Lincoln National Life Insurance Co.
Contract Number:
UTA 16-1750
Base Contract Effective Dates:
May 1, 2016 - May 1, 2019
Extended Contract Dates:
May 1, 2019 - May 1, 2022
Existing Contract Value:
$511,204.50
Amendment Amount:
$102,240.90
New/Total Amount Contract Value:
$613,445.40
Procurement Method:
Original selection via RFP
Funding Sources:
2021 budget
ALTERNATIVES:
Have a lapse in the offering of UTA’s Long Term Disability Insurance offering to employees.
FISCAL IMPACT:
This is already budgeted in UTAs 2021 budget.
ATTACHMENTS:
1. Letter of Extension 2. Original Contract