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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Kim Shanklin, Chief People Officer |
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PRESENTER(S): |
Kim Shanklin, Chief People Officer |
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TITLE:
title
Change Order: Retirement Plan Services Agreement Modification No. 001 - Term Extension (Milliman, Inc.)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute the additional term of contract through January 31, 2025, with Milliman, Inc. for retirement plan services in the amount of $720,000.00.
BACKGROUND:
Milliman, Inc. was chosen as part of an RFP process in 2018 when UTA made efforts to separate the pension administration services from UTA staff to a separate legal entity, the Utah Transit Authority Employee Retirement Plan and Trust. That initial contract term was 5-years and ended on January 17, 2023. The RFP process for a new contract has been started but the work will not be completed until fourth quarter 2023.
DISCUSSION:
The Chief Procurement Officer can extend a contract longer than 5-years if needed to properly ensure continuity of services. Given the dollar amount for the additional term, approval by the Board of Trustees is needed for this modification to be executed
CONTRACT SUMMARY:
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Contractor Name: |
Milliman, Inc. |
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Contract Number: |
18-2578TP-1 |
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Base Contract Effective Dates: |
1/17/2018-1/17/2023 |
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Extended Contract Dates: |
1/25/2023-1/31/2025 |
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Existing Contract Value: |
$1,500,000 estimated |
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Amendment Amount: |
$720,000 |
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New/Total Contract Value: |
$2,220,000 estimated |
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Procurement Method: |
Chief Procurement Officer extension |
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Budget Authority: |
Pension Operating |
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ALTERNATIVES:
The Board of Trustees can shorten the contract extension length, or extend the length, but services being currently rendered for pension administration will no longer be under contract without an extension.
FISCAL IMPACT:
The expenses are in line with previous year expenses for administration, so the pension should be able to maintain current full funding with the 16.3% contribution rate from UTA
ATTACHMENTS:
Modification No 001
Original Contract 18-2578TP