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City committee selects USI Insurance Services as benefits consultant after competitive RFP
Summary
The Providence POCS committee recommended awarding a three-year health benefits consulting contract to USI Insurance Services LLC after a competitive RFP; members said the firm matched the city's desired flat-fee structure and offered training, actuarial services and data analytics.
The Providence POCS (People, Culture and Service) committee on July 25 recommended awarding a health-care consulting contract to USI Insurance Services LLC, citing the firm's flat-fee proposal and services tailored to the city's complex employee benefits program. The committee discussed four proposals received in response to a March request for proposals.
The city's presenter said Mercer, the city's consultant for roughly 12 to 13 years, did not submit a timely proposal; two bidders proposed commission-based models, which staff said could create future variable costs. The presenter said USI matched the city's preferred flat-fee approach for years 1 and 2 at $190,000 per year, with an increase to $210,000 in year 3. The city's current contract is $190,000 per year.
Staff described USI's offering as including training and employee engagement support, actuarial and data-analytics services, benchmarking, and a focus on cost containment strategies. The city noted the lowest bidder's commission-based structure and additional variable charges for auditing and certain services as reasons to prefer USI.
Committee members asked about transition timing (the current consultant's contract expires July 31) and whether USI could begin implementation quickly; staff said USI represented it could mobilize promptly. Committee members also asked how the consultant interacts day-to-day with human resources and finance staff; staff said the consultant is a regular contact for carrier issues, budgeting, utilization and compliance matters.
A motion to approve the resolution authorizing the contract award was made and seconded; the committee recorded the motion as approved during the meeting. The contract value listed in the meeting materials was $590,000 (the packet listed the award by vendor and department under the board-of-contract-and-supply procedure). The award will move to the Board of Contract and Supply for final contract execution as required by the procurement code.
Votes at the committee meeting were recorded by voice as "Aye." No roll-call tally with individual member names was transcribed in the meeting record.
