TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 20, 2025
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase purchase order and amend agreement with Unum Life Insurance Company of America, a wholly owned subsidiary of Unum Group to provide group term life insurance for employees in an amount of $40,500.00, from an amount of $357,267.83, to an amount not to exceed $397,767.83, Account 101-25000-601250, 501-50000-601250, Purchase Orders 3120773 and 3120774 (As Revised)
Body
Dear Sir:
On May 19, 2022, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase orders and enter into an agreement with Unum Life Insurance Company of America, a wholly owned subsidiary of Unum Group to provide group term life insurance for employees. Purchase orders were issued for a three-year period beginning August 1, 2022.
As of February 28, 2025, the attached list of change orders have been approved.
Original Contract Amount $350,000.00
Date of Board Approval 05/19/2022
Cumulative Change Order (02/28/2025) $7,267.83
% Change of Original Contract Value 2.08%
Current Contract Value $357,267.83
Requested Increase or Decrease $40,500.00
New Contract Value $397,767.83
% Change of Current Contract Value 11.34%
Total % Change of Original Contract Value 13.65%
The scheduled end date of the current purchase orders is July 31, 2025. This date results in the life insurance policy expiring in the middle of the plan year for District employee benefits which runs on a calendar-year basis (January 1st - December 31st annually). This expiration date will require the District to market the life insurance contract mid-year and potentially result in a change to the life insurance provider and the premium costs off-cycle from the rest of the benefits programs and outside of the benefits open enrollment period.
Authorization is requested to extend the current purchase order through December 31, 2025, to allow the District to align the contract period for the life insurance benefits with the plan year. This will eliminate confusion for plan participants and allow all the employee insurance benefits to be administered on the same calendar-year basis. This extension would not impact any other terms of the life insurance policy or the premium cost.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the purchase orders and amend the agreement with Unum Life Insurance Company of America, a wholly owned subsidiary of Unum Group in an amount of $40,500.00 (11.34% of the current contract value), from an amount of $357,267.83, to an amount not to exceed $397,767.83.
Funds are available in Account 101-25000-601250 and 501-50000-601250.
Recommended, Thaddeus J. Kosowski, Director of Human Resources
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairman, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for March 20, 2025
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