subject: addendum 3 response to additional vendor …...houston independent school district life,...

Houston Independent School District Life, AD&D and Disability Insurance Plans

Project 16-02-03

Subject: ADDENDUM 3 – RESPONSE TO ADDITIONAL VENDOR QUESTIONS

Date: March 11, 2016

This addendum is issued to explain, modify or correct the original Request for Proposals document. This addendum and

any subsequent addenda are hereby made a part of the Request for Proposals document and related specifications. In

the event of a conflict, the most recent document will govern. Please acknowledge the receipt of all addenda when

submitting your Proposal. Addenda should be inserted under Tab 8 of your proposal.

1) This addendum is issued to answer the following questions

Question

# Date Received Question Response

1. 03/08/16 Please confirm the notice of rate change that is being requested. The RFP lists three different ones (210 days, 240 days, & 300 days) in different areas of the RFP.

210 days.

2. 03/08/16 Please confirm that Houston ISD is exempt from state premium tax as well as sales tax.

I do not find any reference

to a “state premium” tax in

the code.

HISD is a political

subdivision of the State of

Texas. As such, we are

exempt from taxes under the

following Sections of the

Texas Tax Code.


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Date Received Question Response

Sec.

151.301. "EXEMPTED FROM THE

TAXES IMPOSED BY THIS

CHAPTER". If a taxable item

is exempted from the taxes

imposed by this chapter, the

sale, storage, use or other

consumption of the item is

not subject to the sales tax

imposed by Section 151.051 of

this code or the use tax

imposed by Section 151.101 of

this code if the item meets

the qualifications for

exemption as provided in this

subchapter; and when an item

is exempted from the taxes

imposed by this chapter the

receipts from its sale are

excluded from the computation

of the taxes.

http://www.statutes.legis.state.tx.us/GetStatute.aspx?Code=TX&Value=151.051



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Acts 1981, 67th Leg., p.

1559, ch. 389, Sec. 1, eff.

Jan. 1, 1982.

Section 151.30- GOVERNMENTAL

ENTITIES. A taxable item

sold, leased, or rented to,

or stored, used, or consumed

by, any of the following

governmental entities is

exempted from the taxes

imposed by this chapter:

(1) the United

States;

(2) an

unincorporated

instrumentality of the United

States;

(3) a corporation

that is an agency or

instrumentality of the United

States and is wholly owned by

the United States or by


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another corporation wholly

owned by the United States;

(4) this state;

(5) a county,

city, special district, or

other political subdivision

of this state; or

(6) a state, or a

governmental unit of a state

that borders this state, but

only to the extent that the

other state or governmental

unit exempts or does not

impose a tax on similar sales

of items to this state or a

political subdivision of this

state.

Acts 1981, 67th Leg., p.

1560, ch. 389, Sec. 1, eff.

Jan. 1, 1982. Amended by

Acts 1993, 73rd Leg., ch.


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719, Sec. 1, eff. July 1,

1993.

Sec. 151.311. TAXABLE

ITEMS INCORPORATED INTO OR

USED FOR IMPROVEMENT OF

REALTY OF AN EXEMPT

ENTITY. (a) The purchase of

tangible personal property

for use in the performance of

a contract for an improvement

to realty for an organization

exempted under Section

151.309 or 151.310 of this

code is exempt if the

tangible personal property is

incorporated into realty in

the performance of the

contract.

(b) The purchase of

tangible personal property,

other than machinery or

equipment and its accessories




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and repair and replacement

parts, for use in the

performance of a contract for

an improvement to realty for

an organization exempted

under Section 151.309 or

151.310 of this code is

exempt if the tangible

personal property is:

(1) necessary and

essential for the performance

of the contract; and

(2) completely

consumed at the job site.

(c) The purchase of a

taxable service for use in

the performance of a contract

for an improvement to realty

that is performed for an

organization exempted under

Section 151.309 or 151.310 of

this code is exempt if the






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service is performed at the

job site and if:

(1) the contract

expressly requires the

specific service to be

provided or purchased by the

person performing the

contract; or

(2) the service

is integral to the

performance of the contract.

(d) For purposes of

this section, tangible

personal property is

completely consumed if after

being used once for its

intended purpose it is used

up or destroyed. Tangible

personal property that is

rented or leased for use in

the performance of the

contract cannot be completely


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consumed for purposes of this

section.

2. 03/08/16 Please provide an updated census that includes Date of Birth, correct annual salary (there are 538 employees with salary less than $5,000), Supplemental AD&D elections; and Supplemental Life, Dependent Life and Supplemental AD&D coverage amounts.

For security reasons, date of birth will not be provided for the census. For employees with annual salary amounts under $150, a system error has been found (approximately 81 employees). This is being corrected, however correct information will not be available until a later date.

3. 03/08/16 Please confirm that the “paid claims” shown in the LTD premium and claim report represent paid on incurred claims.

The paid claims and premium report reflects the claims on a paid basis.

4. 03/08/16 Please provide an updated LTD claim list, preferably in Excel format, that includes Gross Benefit, Offsets, Net Benefit, and Plan Option for each claim.

An additional Exhibit (Exhibit K) will be provided to all carriers that submitted an NDA with additional LTD claim detail.

5. 03/09/16 On page 26 of the RFP, they list “Executive Acknowledgment Signature/Date Form”. Can you please point us to the section of the RFP where we can locate this form?

A signed cover letter will meet this requirement.

6. 03/09/16 Can you please clarifying the hard copy submission. Within the RFP document we are required to submit 1 original and 5 copies (on page 1) to HISD. On ProposalTech, it is stated that we submit one(1) signed original, one(1) electronic copy (ProposalTech), and two(2) hard copies with an electronic copy included of our proposal to HISD. Then we must submit one (1) signed original, one (1) electronic copy (ProposalTech), and two (2) hard copies (which also include an electronic copy of your full submission) of our proposal to both Mercer and W.J. Alexander. Please confirm the correct submission instructions.

Please submit one original and 5 hard copies of the proposal to the following address. Please include an electronic copy with each binder: Houston Independent School District Board Services - Room 1C03 Attn: Deyen Greene-Evans RFP To provide Group Life, AD&D and Disability Insurance Plans 16-02-03 4400 West 18th Street Houston, TX 77092


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As a reminder, only Houston ISD is soliciting quotes through this RFP.

7. 03/09/16 Regarding the Questionnaire attachments/supplemental material that go in Tab 5 of the hard copies, can we provide them on a CD in the binders rather than print each one out?

All attachments/supplemental materials will need to be printed out and provided in hard copy as well as in an electronic format with each copy submitted. See question 7 above for additional instructions.

8. 03/09/16 Regarding the M/WBE, is the 25% subcontractor participation goal a percentage of overall premium or a percentage of retention?

Please reach out to the following contact for any MWBE related questions: Iva Martinov Supplier Diversity Specialist Tel: 713-556-7273 Tel: 713-556-7217 Fax: 713-556-7274 [email protected]

9. 03/09/16 Please advise whether proposers’ quotes for each line of coverage should be individually underwritten on a self-supporting basis.

Yes.

10. 03/09/16 Please advise if Houston ISD has issued this RFP for reasons other than the mandatory five-year bid cycle.

It is mandatory for Houston ISD to market the plan every five years.

11. 03/09/16 Please confirm the number of hard copy proposals required by Houston ISD. The RFP materials indicate both five (5) and two (2) copies to HISD.

Please see question 7 above.

12. 03/09/16 Please clarify what proposers should include in the original hard copy binders for Tab 2 – MWBE Attachment Form B, as we are required to submit this form to the district prior to the proposal deadline.

Please submit the same paperwork.

mailto:[email protected]


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13. 03/09/16 Please provide the ‘Executive Acknowledgement Signature/Date Form’ referenced in the required submission documents; we were unable to locate this form in the RFP materials.

Please see question 6 above.

14. 03/09/16 Please advise how proposers should respond to the Performance Guarantee sections of the online questionnaire if our Performance Measures or Premium at Risk falls outside of the items in the pull-down list, but we wish to offer a performance guarantee in that category. If we select “Decline to Quote” that particular category, but offer our proposed PG in that category in a separate exhibit, will that be acceptable?

Yes. We will accept a separate exhibit if your Performance Guarantee’s fall outside the scope of the options provided in Form H/ProposalTech. Please submit the proposed Performance Guarantee as Attachment 4 under Tab 5.

15. 03/09/16 General: Confirm count of new hires per year, as well as expected new hires/layoffs.

While new hire information is not available, Exhibit L1 shows monthly enrollment headcounts from 2012 – 2015.

16. 03/09/16 General: What is the definition of age for the purpose of determining premium age bracket – end of plan year, 1st of each month, etc.? Is the age only determined once for the whole year, or does it change during the year?

Age is determined on January 1 each year.

17. 03/09/16 General: Will premiums be paid within a 30-day grace period?

Example: ADP provides premium reports based on March 1 enrollment by approximately March 15. Those premiums are typically paid by the end of March. So yes, premiums are typically paid within the 30 day grace period. There are some instances where this schedule may need to be modified because if the school district specific schedule. As a reminder, historically all premiums for voluntary coverages are self-billed.

18. 03/09/16 All Coverages: “All costs for open enrollment, including travel must be included in your rates”. Is this regarding the carrier’s costs or is

All carrier costs should be included in rates (enrollment materials, travel etc.).


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this a request to include some of the customer’s or broker’s costs. Please clarify expectation.

19. 03/09/16 All Coverages: Have there been any plan design changes over the past 4 years? If so, please provide the details and dates of any change(s).

Yes. Please see policies for amendment information (Exhibits F and G).

20. 03/09/16 All Coverages: Please provide monthly or yearly average lives and volume for all coverages (Basic life, PAD&D, etc.)

Additional Exhibits (Exhibit L1 and L2) will be provided to all carriers that submitted an NDA with monthly enrollment counts for 2012-2015 and January 1 volume amounts for 2012 - 2016.

21. 03/09/16 Life: Are all the employees on the census eligible for the flat $10,000 basic life benefit?

Yes. The census provided includes all benefits-eligible employees only.

22. 03/09/16 Life: Please provide details of any groups outside of the main contract such as retirees, union plan, etc. Please also provide a full census for these individuals.

There are no covered groups outside of the benefits eligible employees as noted on the census.

23. 03/09/16 Life: Will all employees that ported their coverages remain with the incumbent carrier? What are the current port rates and conditions required to elect portability?

Yes, ported coverage will remain with incumbent carrier. Conditions may be found in the policy booklet, Exhibit F. Rates are not available at this time.

24. 03/09/16 Life: For the Minnesota Life HISD claims detail 2012-2015 report, please provide what time period the “Current Reserve” represents and what time period the “Prior Reserve” represents.

Current reserve = pending claim payment amount at end of given plan year (first column)

Prior reserve = pending claim payment amount at beginning of given plan year (first column)

25. 03/09/16 Life: Have all claims been provided - even those from employees who died while they were disabled?

All death claims have been provided, even those who were disabled before death.

26. 03/09/16 Disability: Please verify that the disability plan is 100% employee paid

Confirmed.


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27. 03/09/16 Disability: Is EAP being requested? If so, what sessions and options should be included?

No.

28. 03/09/16 Disability: For the Unum LTD HISD Claims Listing report, the following is included: gender, date of disability, age at disability, benefit start date, maximum duration date, gross benefit amount and closed date. Please also provide (1) division number as on the Unum LTD HISD premium claims report 2012-2015 report (2) net benefit (3) total amount paid on claim and (4) social security status.

An additional Exhibit (Exhibit K) will be provided to all carriers that submitted an NDA with additional LTD claim detail.

29. 03/09/16 Disability: For the Unum LTD HISD premium claims report 2012-2015 report, are the 2012 paid claims, 2013 paid claims, etc. paid claims by incurral year or by paid year. If they are by paid year, then we will need claims by incurral year.

The paid claims and premium report reflects the claims on a paid basis. We are unable to provide claims on incurred basis.

30. 03/09/16 Please confirm no retiree coverage to be quoted. Confirmed – no retiree coverage.

31. 03/09/16 Are there any rate changes in the experience? No. Houston ISD has had a rate guarantee January 1, 2012 through December 31, 2016 for both products.

32. 03/09/16 Are there any plan changes in the experience? Yes. Please see policies for amendment information (Exhibits F and G).

33. 03/09/16 Are premiums paid on a 10 or 12 month basis? 12 month

34. 03/09/16 How is coverage currently handled during “off” or “summer” months?

Benefits continue during periods of time when employees are not scheduled to work but expected to return. Payments are collected from any payment issued during that time or on return.

35. 03/09/16 How is sick time used along with Long Term Disability? Employees are required to use up any paid time off before being placed on unpaid leave.

36. 03/09/16 Are there any unions associated with the school district? If so, please submit a copy of the non-bargaining agreement.

While there are represented groups as well as Unions associated with HISD, there are no collective bargaining agreements in place. All


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benefit eligible employees at HISD have access to the same voluntary benefit program.

37. 03/09/16 How are the current voluntary benefits presented to the employees?

Group benefits communications meetings are held, however, they generally do not include vendors. In addition, additional communications are provided to employees through HISD’s benefit website (hisdbenefits.org), printed, mailed and emailed communication.

38. 03/09/16 How is the enrollment administered? Houston ISD has its own online enrollment portal through their third-party administrator, ADP.

39. 03/09/16 Some of the salaries on the census are very low for both salary or hourly. Can you please confirm that these are the appropriate annual salaries?

For employees with annual salary amounts under $150, a system error has been found (approximately 81 employees). This is being corrected, however correct information will not be available until a later date.

40. 03/09/16 Can you please include date of birth on the census? Due to security concerns, this information is not being provided.

41. 03/09/16 Life: 1-5 years of monthly paid claims, paid premium, lives and volume

Additional Exhibits (Exhibit L1 and L2) will be provided to all carriers that submitted an NDA with monthly enrollment counts for 2012-2015 and January 1 volume amounts for 2012 - 2016. An additional Exhibit (Exhibit J) will be provided to all carriers that submitted an NDA with monthly premiums and claims data for 2012-2015.


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42. 03/09/16 LTD: 1-5 years of monthly paid claims, paid premium, lives and Paid claims

An additional Exhibit (Exhibit K) will be provided to all carriers that submitted an NDA with claim payment activity for 2012-2015. Additional Exhibits (Exhibit L1 and L2) will be provided to all carriers that submitted an NDA with monthly enrollment counts for 2012-2015 and January 1 volume amounts for 2012 - 2016.

43. 03/09/16 LTD: Are the claims on the premium and claims report paid on an incurred basis?

The paid claims and premium report reflects the claims on a paid basis.

44. 03/09/16 LTD: A detailed individual Open claim listing including but not limited to:

o Date of disability

o Gender

o Current reserve by claimant

o Gross monthly benefit

o Paid to date

o Valuation date

An additional Exhibit (Exhibit K) will be provided to all carriers that submitted an NDA with additional LTD claim detail. Exhibit K includes all opened and closed claims.

45. 03/09/16 LTD: A detailed individual Closed claim listing including but not limited to:

o Date of disability

o Claim term data

o Paid to date amount

o Valuation date

An additional Exhibit (Exhibit K) will be provided to all carriers that submitted an NDA with additional LTD claim detail. Exhibit K includes all opened and closed claims.

46. 03/10/16 Can we include all 3 locations in each proposal? So each location is a different option spelled out.

At this time, only Houston ISD is participating in this RFP. Under the inter-local agreement, Aldine ISD and Katy ISD may review the


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submission but they are not currently actively participating in this RFP. Please note in your RFP whether rates are firm if the other districts decide to participate or if they are subject to change. Separate rate exhibits for non-participating districts is not required at this time.

47. 03/10/16 Can we combine all 3 locations in a box when we drop off or separate boxes

Please refer to question 7.

48. 03/10/16 The RFP states to drop off proposal in section 2.3….please clarify if the drop off for all 3 locations is the attention of you at 4400 West 18th Street, Houston, TX 77092

Please refer to question 7.

All other terms, conditions, and requirements of the original RFP remain the same at this time.

Office of Procurement Services Deyen Greene-Evans, Sr. Sourcing Specialist [email protected] PLEASE ACKNOWLEDGE RECEIPT OF THIS ADDENDUM BY SIGNING AND RETURNING WITH YOUR BID PACKAGE. ________________________________ Company Authorized Signature

subject: addendum 3 response to additional vendor …...houston independent school district life,...

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