TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 16, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to amend the agreement for Contract 17-RFP-26, Vision Plan Administrator, with Vision Service Plan
Body
Dear Sir:
Authorization is requested to amend the agreement with Vision Service Plan (VSP) related to employee vision benefits.
On October 19, 2017, the Board of Commissioners authorized the District to enter into an agreement with VSP to provide a vision plan for employees for a three-year period from January 1, 2018 to December 31, 2020.
As a result of the COVID-19 crisis, many health care provider offices for non-emergent care have been closed since early March. These closures have been particularly evident in the dental and vision provider space. This has resulted in a significant reduction in the vision claims for the District plan in 2020. It has also made the projection of future claims expense very difficult with the slow reopening of provider offices, the limiting of patients within those offices and the unknown duration of this pandemic. With the current contract for vision benefits scheduled to expire December 31, 2020, this claims data is particularly important. The existing claims information plays a central role in a potential vendor’s ability to properly evaluate and price the District vision contract. The lack of clarity in the claims data due to the COVID-19 crisis could make it difficult for vendors to develop a proposal and for the District to evaluate and select a vendor to provide these services.
Given this uncertainty, it is recommended that the District extend the current contract with VSP for an additional year ending December 31, 2021 to coincide with the end of the 2021 plan year. This will allow the District to gain some clarity on the impact the COVID-19 crisis is having on the vision plan. VSP has agreed to extend the current pricing through this date. All other terms and conditions of the existing contract would remain unchanged.
The Diversity Section reviewed the scope of work for the existing contract (17-RFP-26) and recommended that Affirmative Action goals of 20% MBE, 10% WBE and 10% SBE be included in the contract. These terms will continue to apply through the extension.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to amend the District agreement with VSP to extend the contract for an additional plan year through December 31, 2021.
Requested, Beverly K. Sanders, Director of Human Resources, BKS:JEF
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, 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 July 16, 2020
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