RFP-2026-10-02-LAKEWAY Fully Insured Dental, Vision, Basic Life/AD&D, Vol. Life/AD&D, LTD, Vol. STD, Worksite Products

REQUEST FOR PROPOSALS
City of Lakeway
Fully Insured Dental, Vision, Basic Life/AD&D, Vol. Life/AD&D, LTD, Vol. STD, Worksite Products
PROPOSAL NUMBER: 2026-10-01-LAKEWAY
PROPOSALS MUST BE RECEIVED ON OR BEFORE:
5:00 PM (CST) on June 25, 2026
PROPOSAL SUBMISSION
DEADLINE: Proposals must be received on or before 5:00 PM on June 25, 2026.
COPIES: Proposals shall be delivered via electronic mail attachment to:
Gallagher Benefit Services, Inc.
Attn: Rebecca Hawes, Consultant
Rebecca_Hawes@ajg.com
SUBMITTING PROPOSALS: There will be no formal proposal opening at the expiration of the
response deadline. Respondent submissions received by the due date and time will be duly noted. Any
proposal received after the time and date stated above, regardless of delivery, will not be considered and
will be returned unopened.
Questions regarding this Proposal must not be directed to City of Lakeway employees, City of Lakeway
Council, commission, nor committee members. Clarification requests will not be accepted by telephone.
All responses to clarification requests will be provided to all known proposers in writing by email and
publication on the City's website. All questions should be sent to Rebecca_Hawes@ajg.com. Questions
pertaining to this proposal must be received no later than June 25, 2026.

TABLE OF CONTENTS
Page
RFP Requirements 3
Award of Agreement 4
Terms and Conditions 5
Specifications and Conditions 6
Proposal Contacts 9
Evaluation Criteria 10
Signature of Acceptance 11
References 13
Debarment Certification 14
Conflict of Interest 15
Copyright Material 17
Form W-9 18
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RFP REQUIREMENTS
PROPOSALS: All proposals shall be delivered via electronic mail attachment to Rebecca Hawes
(rebecca_hawes@ajg.com) of Gallagher Benefit Services, Inc., with the Respondent's name, address, RFP
number and name indicated within the email.
TABLE OF CONTENTS: Please submit your proposal information in order as shown in the "The
Table of Contents". Your proposal should mirror "The Table of Contents" section of the City's Request
for Proposal (RFP). Please tab each section of your proposal so the City can easily determine each section
of your submission. Your proposal must include all items set forth in this section of the RFP.
LEGIBILITY: Proposals must be legible and of a quality that can be reproduced.
FORMS: All complete proposals shall also include forms provided in this RFP packet. Changes to the
RFP packet made by respondents may disqualify their proposal. Proposals cannot be altered or amended
after the submission deadline other than those obtained during the negotiation process.
LATE PROPOSAL: Proposals received after the submission deadline will be returned to the respondent
as they are considered void and unacceptable.
RESPONSIBILITY: It is expected that a prospective respondent will be able to affirmatively
demonstrate the respondent's responsibility. A prospective respondent should be able to meet the
following requirements:
a) Have adequate financial resources, or the ability to obtain such resources as required;
b) Be able to comply with the required or proposed delivery schedule;
c) Have a satisfactory record of performance;
d) Qualified and eligible to receive an award.
The City may request representation and other information sufficient to determine respondent's ability to
meet these minimum standards listed above.
WITHDRAWAL OF PROPOSAL: A respondent may withdraw a proposal that has been submitted at
any time up to the RFP closing date and time. To accomplish this, a written request signed by an authorized
representative of the respondent shall be submitted to the RFP contacts listed within this proposal. Once
the proposals are opened, all proposals shall be valid for a period of sixty days (60) after the RFP closing
date with an effective date of October 1, 2026.
QUALIFICATIONS:
All companies submitting proposals must be licensed by the State of Texas and be permitted to
contract with the State or any of its subdivisions. Further, it is preferred that companies be
recommended in the ratings from A.M, Best with a general policyholder's rating of at least A.
Your current A.M. Best rating shall be included in your response.
Companies who fall under the guidelines of the Texas Political Subdivision Uniform Group
Benefits Act (Chapter 172 Local Government Code) and the Interlocal Cooperation Act (Article
4413 (32e)) Vernon's Texas Civil Statutes will be acceptable.
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DISQUALIFICATIONS: Disqualification may occur for any of the following reasons:
The respondent is involved in any litigation against the City.
The respondent is in arrears on any existing contract or has defaulted on a previous contract with
the City.
The respondent is debarred, suspended, or otherwise excluded from or ineligible for
participation in State or Federal assistance programs.
CONSULTANT: The City has retained the services of Gallagher Benefit Services ("Consultant") to
assist the City in analyzing respondents pricing, services, and capabilities for plans proposed to the City.
The Consultant has been paid standard commissions for assisting the City in creating this RFP and in
assisting the City with obtaining the most advantageous proposals.
COMMISSIONS: It is required that standard commissions be submitted as follows, unless otherwise
dictated by carrier:
Dental - Flat 10%
Vision - Flat 10%
Basic Life/AD&D - Flat 15%
Vol. Life/AD&D - Flat 15%
LTD - Flat 15%
Vol. STD - Flat 15%
Worksite - Standard Commission
ACCEPTANCE OF PROPOSAL CONTENT: Before submitting a proposal, each respondent shall
make all investigations and examinations necessary to ascertain all conditions and requirements affecting
the performance of the contract and to verify any representations made by the City upon which the
proposal will rely. If the respondent receives an offer because of its proposal, failure to have made such
investigation and examinations will in no way relieve the respondent from its obligation to comply in
every detail with all provisions and requirements.
EQUAL EMPLOYMENT OPPORTUNITY: Respondents need to adhere to the requirement for
ensuring that employees and applicants for employment are not discriminated against because of their
race, color, religion, sex, national origin, age, disability or political affiliation or belief. Also, no insurance
policy should be offered, that would discriminate against any employee of the City.
AWARD OF AGREEMENT
The RFP award(s) are anticipated to be made within a reasonable time after the RFP closing date. The
City may reject or award an RFP on a per item or service basis. Results may be obtained by contacting the
consultant.
AWARD OR REJECTION: All proposals may be awarded or rejected in total or in part at the sole
discretion of the City. The City may waive any informality or irregularity. Proposals may be awarded or
rejected in any combination the City selects.
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The City will select the most highly qualified respondent(s) of the requested services based on
demonstrated competence and qualifications and then attempt to negotiate with respondent(s) a
contract(s) at a fair and reasonable price.
AGREEMENT: This proposal, when properly accepted by the City, shall constitute an agreement
equally binding between the successful Respondent and the City. The successful respondent may be
required to sign an additional agreement containing terms necessary to ensure compliance with the
proposal.
AGREEMENT PERIOD(S): Agreement term shall be for one (1) year beginning October 1, 2026, with
two (2) optional annual renewals.
AGREEMENT PRICE AND TERM RENEWALS: Pricing shall remain firm during the initial term
of the agreement. It is the intent of the City of Lakeway to enter into a one (1) year contract, including
annual renewal options. This contract shall become effective October 1, 2026. The City shall have the
option of renewing the contract for a maximum of two (2) additional one (1) year terms to be awarded
one (1) year at a time, subject to approval of funding and review of the service provided by the Contractor,
and if mutually agreed to by the City and the contracted vendor. The City is requesting that the successful
vendor guarantee the pricing of the Dental, Vision, Basic Life/AD&D, Vol. Life/AD&D, LTD, Vol. STD
and Worksite Products for a minimum of one (1) year. Consideration of Contract renewals shall be
contingent upon the next year's contract pricing being received by the City and the City at least three (3)
months prior to the expiration of the current contract.
TERMS AND CONDITIONS
STATEMENTS: No oral statement of any person shall modify or otherwise change, or affect the terms
and conditions; plans and/or specifications stated in this RFP packet and/or RFP
instructions/requirements.
ETHICS: The respondent shall not accept or offer gifts or anything of value nor enter into any business
arrangement with any employee or official of the City prior to an award of contract or during the
agreement performance dates.
DOCUMENTATION: Respondent shall provide with this RFP response, all documentation required
by this proposal. Failure to provide this information may make the RFP non-responsive and as a result
the RFP may be rejected by the City.
INDEMNIFICATION: To the fullest extent permitted by applicable law, the respondent, and its
partners, employees, (collectively "Indemnitors") shall and do agree to indemnify, protect, defend with
counsel approved by the City, and hold harmless City, representatives of the City, the Council of the City,
its various departments, and their respective officers, directors and employees (collectively "Indemnitees")
from and against all claims. Damages, losses, liens, causes of action, suits, judgments, and expenses,
including attorney fees, of any nature, kind, or description (collectively "Liabilities") of any person or
entity whomsoever arising out of, caused by, or resulting from the performance of the services or any part
thereof which are caused in whole or in part by any negligent act or omission of the respondent, anyone
directly or indirectly employed by it or anyone for whose acts it may be liable, even if it is caused in part
by the negligence or omission of any Indemnitee, so long as it is not caused by the sole negligence or
willful misconduct of any Indemnitee. In the event more than one of the Indemnitors are connected with
an accident or occurrence covered by this indemnification, then each of such Indemnitors shall be jointly
and severally responsible to the Indemnitees for indemnification and the ultimate responsibility among
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such Indemnitors for the loss and expense of any such indemnification shall be settled by separate
proceedings and without jeopardy to any Indemnitee. The provisions of this Article shall not be construed
to eliminate or reduce any other indemnification or right which the City or any of the Indemnitees has by
law.
LAW AND VENUE: In the event of any suit at law or inequity involving the Contract,
venue shall be in Travis County, Texas and the laws of the state of Texas shall apply to the
interpretation and enforcement of the Contract.
SILENCE OF SPECIFICATIONS: The apparent silence of these specifications as to any detail or to
the apparent omission from it of a detailed description concerning any point, shall be regarded as meaning
that only the best practices are to prevail. All interpretations of these specifications shall be made on the
basis of this statement.
INDEPENDENT RESPONDENT: The agreement does not create an employee/employer
relationship between the award respondent and the City. It is the City's intention that the awarded
respondent will be an independent respondent and not an employee of the City for all purposes, including
but not limited to, the application of the Fair Labor Standards Act minimum wage and overtime payments,
Federal Insurance Contribution Act, the provisions of the Internal Revenue Code, and all State of Texas
revenue, workers compensation, and unemployment Insurance laws. The respondent will retain sole and
absolute discretion over the manner and means of carrying out the activities and all responsibilities listed
herein. The respondent agrees that it is a separate and independent enterprise from the City and that it
has full opportunity to find other business, that it has made its own investment in its business, and that it
will utilize a high level of skill necessary to perform the work. This agreement shall not be construed as
creating any joint employment relationship between the respondent and City, and the City will not be
liable for any obligation incurred by the respondent.
MASTER APPLICATION: All respondents shall submit a sample agreement that it expects the City
to sign should the respondent be select for award.
SPECIFICATIONS AND CONDITIONS
The specifications cover the minimum requirements for the City's need for Employee Benefits
outlined in this RFP. The specifications are not intended to eliminate any potential respondent from
proposing; however, they are intended to outline the quality and service desired. If "exception" is the
response, an explanation of the exception must be noted. Failure to complete any sections may be
considered as a non-responsive respondent.
The respondent should not assume that any other insurance product or service will be placed through the
carrier when submitting proposed rates in response to this RFP. The City reserves the right to place other
insurance products with the vendor that is most advantageous to the City. The City may consider in the
evaluation discounts available from respondents for placing multiple insurance products with the same
vendor.
The City reserves the right to conduct discussions with respondents who submit proposals who are
reasonably qualified for the award of the contract. Respondents shall be treated fairly and equally with
respect to any opportunity for discussion and revision of proposals. The City reserves the right to request
post-proposal modifications, including, but not necessarily limited to, best and final offers. In order to
obtain best and final offers, revisions may be permitted after submission of the proposal and before the
award of the contract.
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The City reserves the right to negotiate a contract with the selected respondent. The City reserves the
right to negotiate with proposers prior to finalist offer selection. However, the City reserves the right to
award a contract or contracts on the basis of best and final offer with no negotiations, interviews and/or
presentations should they so choose. Therefore, each proposal must contain the proposers best
terms from a financial and technical standpoint at time of original submittal.
The City has been working diligently to come up with solutions to increase the overall health of its
employees. While the City understands that realized saving may not come into play immediately, it would
ask that all respondents consider the long term effects of wellness on the overall employee population in
underwriting policies for the City.
CURRENT INSURANCE CARRIERS:
Type of Insurance Insurance Carrier
Dental Sun Life
Vision Sun Life
Life/AD&D Securian
Vol. Life/AD&D Securian
LTD Madison
Vol. STD Madison
Worksite Products Sun Life
CARRIER HISTORY:
Dental Sun Life: 10/01/2024 - present
Lincoln Financial Group: 10/1/2017 - 09/30/2024
Sun Life: 10/1/2008 - 9/30/2017
Vision Sun Life:10/01/2024 - present
Lincoln Financial Group: 10/1/2018 - 09/30/2024
Life/AD&D Securian: 10/01/2024 - present
Lincoln Financial Group: 10/1/2017 - 09/30/2024
Sun Life: 10/1/2008 - 9/30/2017
Vol. Life/AD&D Securian: 10/01/2024 - present
Lincoln Financial Group: 10/1/2017 - 09/30/2024
Sun Life: 10/1/2008 - 9/30/2017
LTD Madison: 10/01/2024 - present
Lincoln Financial Group: 10/1/2017 - 09/30/2024
Sun Life: 10/1/2008 - 9/30/2017
Vol. STD Madison: 10/01/2024 - present
Lincoln Financial Group: 10/1/2017 - 09/30/2024
Sun Life: 10/1/2008 - 9/30/2017
Worksite Products Sun Life: 10/1/2008 - present
Colonial: 10/01/2008 - 9/30/2020
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OBJECTIVES: Proposals should include options that match as closely to current benefits as possible.
Dental: Match Current Benefits
Vision: Match Current Benefits
Basic Life and AD&D: Match Current Benefits
Voluntary Life and AD&D: Match Current Benefits with True Special Open Enrollment and
Grandfathering of current amounts
LTD: Match Current Benefits
Vol. STD: Match Current Benefits
Worksite Products: Provide proposals for Accident, Critical Illness, Cancer and Hospital
The City desires to receive proposals with at least a one (1) year rate guarantee. Multiyear alternatives will
be considered. Further extensions of the contract may be made at the discretion of the City. The
City is not interested in increasing its insurance cost; therefore, one of the options submitted shall be at or
below the current program cost.
REQUIRED ATTACHMENTS: All respondents must complete the appropriate items outlined in
the RFP. Respondents do not have to submit a proposal for each type of insurance desired.
Respondents may include additional information, flyers, brochures, etc. in each tab of their hard copy
responses in addition to the completed required attachments. Respondents must provide proposed
rates in the requested format in order for the proposal to be considered.
ELIGIBILITY: All full-time, active employees, working at least 40 hours per week, are eligible to
participate in the City's benefits plan. All eligible dependents of active employees are allowed to elect
dental coverage, provided the employee has also elected the same coverage's. Dependent children who
are under 26 years old are eligible, regardless of student status. Dental benefits, and vision benefits are
also available for COBRA continuation. The current new hire waiting period is the first of the month
following date of hire. All full-time, active employees, working at least 30 hours per week, are eligible to
participate in the City's health plan.
PLAN EFFECTIVE DATES: October 1, 2026 through at least September 30, 2027 (for initial contract
term, which may be extended if the City and selected respondent(s) agree in writing).
TIMELINE: The tentative timeline for contract award is noted below:
First advertisement for proposals: June 10, 2026
Proposals are due June 25, 2026
Contract start date October 1, 2026
SCOPE OF WORK: The City shall require that the respondents provide all necessary services including,
but not limited to, the following:
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Maintain a fully automated claims adjudication system in compliance with electronic
transmission standards and security requirements and all other regulations as required by
HIPAA, provide WEB access to plan participants that allows for claim status and offers
various customer service functions.
Maintain records and management reports, including claims and accounting information as
required by the contract.
Provide timely response to inquiries from plan participants and providers regarding
eligibility and status of claim, correspondence, payment, and any other information requested by
such parties in a manner that will limit the City's involvement in day-to-day inquiries.
Prepare and review with the Human Resources staff, and print summary plan documents, claim
forms, and any other communication material as required by the contract.
If respondents use ID cards, the City prefers respondent mail identification cards to the
employee's home address.
Deliver utilization reports. The City and its consultants need to be able to access standard
reports online, preferably in Excel format.
May attend annual Open Enrollment meetings. The respondent may be required to give
employees additional information on plan types and give oral presentations about types of plans
offered to City employees.
The City of Lakeway currently uses Employee Navigator for enrollment purposes. Please
confirm that you will accept a standard file from Employee Navigator.
The City of Lakeway would prefer list billing for all lines of coverages. The City of Lakeway does
not want to be self billed for any coverages.
REQUIRED ATTACHMENTS AND ADDITIONAL INFORMATION: Please complete and
return all of the requested attachments. Failure to complete all attachments may result in your proposal
being disqualified.
PROPOSAL PLAN FORMS: Please remember to print a copy of your plan proposal(s) and include it
within your electronic submission. In preparing your premium quotations, include the signature of your
authorized representative.
All who submit proposals, including the current carrier or administrator, shall complete the proposal forms
provided. An authorized official of the carrier must sign all proposal forms submitted. Please remember
to include a declaration of compliance for HIPAA within your RFP submission.
REFERENCES: Include a list of at least (3) three references where like services have been supplied by
your company. Include name of firm, address, telephone number and name of representative.
DEBARMENT CERTIFICATION: All respondents are required to sign a certification or
acknowledgement stating that the respondent is free from suspension or debarment pursuant to federal
regulation 45CFR76. This form must be signed and submitted with the proposal.
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CONFLICT OF INTEREST: No public official shall have interest in an agreement, in accordance with
Local Government Code Title 5, Subtitle C, Chapter 171. As of January 1, 2006, Respondents are
responsible for complying with Local Government Code Title 5, Subtitle C, Chapter 176. The Conflict of
Interest Statement is attached to this RFP packet. This form should be completed, signed, and submitted
with your proposal.
COPYRIGHT MATERIALS: Materials listed in your RFP submission that are copyrighted shall be
listed clearly under a copyrighted materials section within your RFP submission. The City is subject to
the Texas Public Information Act. Any information submitted to the City is presumed to be public
information and available to the public, unless noted. If an outside individual or entity requests to review
copies of the information marked as confidential, the City will request an open records decision from the
State of Texas Attorney General's Office asserting appropriate exceptions to disclosure. The proposer
shall be responsible for substantiating the confidentiality of the information or materials requested at its
own expense.
FORM W-9: Please fill out a current IRS Form W-9. Fillable W-9 forms are also available online at:
http://www.irs.gov/pub/irs-pdf/fw9.pdf
PROPOSAL CONTACTS
RFP QUESTIONS OR REQUEST FOR CLARIFICATIONS: Any questions or requests for
clarification must be submitted in writing to our Consultant Rebecca Hawes (Gallagher Benefit
Services, Inc.) prior to June 22, 2026. Please indicate "RFP 2026-10-01 Questions" in the subject line
of your email. All responses to the questions will be provided as they are made available. Unauthorized
contact regarding this RFP with any City employees, Council members or respondents will result in
disqualification. Any oral communications will be considered unofficial and non-binding for this proposal.
All respondents should rely on written statements only.
The City is aware of the time and effort spent in preparing and submitting proposals. Please let us know
of any requirements in the RFP which are causing difficulty in responding. We want to make this process
as easy as possible so that all responsible vendors can compete for the City's business.
EVALUATION CRITERIA
CONTRACT AWARD / EVALUATION CRITERIA: Gallagher Benefit Services shall evaluate all
proposals and present to the City with recommendations. The applicant(s) selected for the short list may
be invited to attend an interview, at the respondent's expense.
During the evaluation, discussions and negotiations may be initiated with proposers. Additional
information may be accepted during this period from proposers who respond to the original request.
Proposers may not initiate discussions.
The City will evaluate the quotes based on price, coverage area, billing and technical support. The City
reserves the right to negotiate the final fee schedule prior to recommending any respondent a contract and
reserves the right to accept such an offer if it is determined to be in the City's best interest to do
so.
Award of the agreement shall be made to the responsible proposer(s) whose offer is determined to be the
best evaluated offer resulting from negotiations, taking into consideration compliance with instructions,
specifications, and qualities of the respondents which best meets the needs of the City.
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