26-AA25 RFP for Employee Benefits Consultant Addendum 2

Purchasing Division, Finance Department
218-730-5340 | purchasing@duluthmn.gov
Room 120 | 411 West First Street | Duluth, Minnesota 55802
www.duluthmn.gov
Request for Proposals
on Behalf of the Joint Powers Enterprise
Human Resources/Employee Benefits Consultant
RFP Number 26-AA25
Issued Thursday, September 24, 2026
Proposals due Thursday, October 15, 2026, 3:00 pm Central Time
Submit to
City of Duluth
Attn: Purchasing Division
City Hall, Room 120
411 West 1st Street
Duluth, MN 55802
The City of Duluth is an Equal Opportunity Employer.

TABLE OF CONTENTS
PART I - GENERAL INFORMATION
I-1. Introduction and Project Summary
I-2. Calendar of Events
I-3. Pre-Proposal Conference
I-4. Questions & Answers
I-5. Addenda to the RFP
I-6. Interviews/Demonstrations
I-7. Rejection of Proposals
I-8. Small Diverse Business Information
I-9. Award
I-10. Term of Contract
I-11. Mandatory Disclosures
I-12. Notification of Selection
PART II - PROPOSAL REQUIREMENTS
II-1. Proposal Submission
II-2. Proposal Content
PART III - CRITERIA FOR SELECTION
PART IV - PROJECT DETAIL
IV-1. Benefit Program Information
IV-2. Scope of Work
A. Account Management and Client Services
B. Core Services
C. Health and Benefits Strategy Support
D. Wellness Strategy Support
E. Plan Management
F. Implementation Services
IV-3. Compensation
A. Itemized Fee Schedule
B. Payment Plan Based on Measurable Milestones
C. Contract Performance Requirements
D. Budget Transparency and Cost Controls
PART V - APPENDICES
Appendix A - Proposal Cover Sheet
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PART I - GENERAL INFORMATION
I-1. Introduction and project Summary. The City of Duluth, on behalf of the Joint Powers
Enterprise (JPE) which is comprised of the City of Duluth, Duluth Entertainment and Convention
Center, Duluth Airport Authority, and Housing and Redevelopment Authority of Duluth, is seeking
an Employee Benefits Consultant to act as a strategic partner in the procurement and
administration of employee benefits programs. Additional details are provided in Part IV of this
RFP.
I-2. Calendar of Events. The City will make every effort to adhere to the following schedule:
Activity Date
Pre-proposal Conference at 10:00 AM central time 10/1/2026
Deadline to submit Questions via email to 10/7/2026
purchasing@duluthmn.gov is 12:00 NOON central time
Answers to questions will be posted to the City website no later 10/8/2026
than this date.
Proposals must be received in the Purchasing Office by 3:00 PM 10/15/2026
on this date.
Interviews tentatively scheduled the week of: 10/26/2026
I-3. Pre-proposal Conference. The City will hold a pre-proposal conference as specified in the
Calendar of Events. Interested Bidders can attend via Teams call. Please visit the Purchasing
Bids & Request for Proposals web page for the link to the meeting.
I-4. Questions & Answers. Any questions regarding this RFP must be submitted by e-mail to the
Purchasing Office at purchasing@duluthmn.gov no later than the date indicated on the Calendar of
Events. Answers to the questions will be posted as an Addendum to the RFP.
I-5. Addenda to the RFP. If the City deems it necessary to revise any part of this RFP before the
proposal response date, the City will post an addendum to its website,
http://www.duluthmn.gov/purchasing/bids-request-for-proposals/. Although an e-mail notification
will be sent, it is the Bidder's responsibility to periodically check the website for any new
information. Any addenda issued must be acknowledged on the Proposal Sheet attached as
Appendix A.
I-6. Interviews/Demonstrations. The City reserves the right to request interviews or
demonstrations with top scoring proposers.
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I-7. Rejection of Proposals. The City reserves the right, in its sole and complete discretion, to reject
any and all proposals or cancel the request for proposals, at any time prior to the time a contract is
fully executed, when it is in the City's or JPE's best interests. Neither the City nor the JPE is liable
for any costs the Bidder incurs in preparation and submission of its proposal, in participating in the
RFP process or in anticipation of award of the contract.
I-8. Small Diverse Business Information. The City encourages participation by minority, women,
and veteran-owned businesses as prime contractors, and encourages all prime contractors to make
a significant commitment to use minority, women, veteran-owned and other disadvantaged business
entities as subcontractors and suppliers. A list of certified Disadvantaged Business Enterprises is
maintained by the Minnesota Unified Certification Program at http://mnucp.metc.state.mn.us/ .
I-9. Award. The agreement award amount will be based on the time and materials submitted in the
proposal, but will be a lump sum, not-to-exceed agreement.
I-10. Term of Contract. The term of the contract is anticipated to begin January 1, 2027, and end
by December 31, 2029. The selected Bidder shall not start the performance of any work nor shall
the City or JPE be liable to pay the selected Bidder for any service or work performed or expenses
incurred before the contract is executed.
I-11. Mandatory Disclosures. By submitting a proposal, each Bidder understands, represents,
and acknowledges that:
A. Their proposal has been developed by the Bidder independently and has been
submitted without collusion with and without agreement, understanding, or planned
common course of action with any other vendor or suppliers of materials, supplies,
equipment, or services described in the Request for Proposals, designed to limit
independent bidding or competition, and that the contents of the proposal have not
been communicated by the Bidder or its employees or agents to any person not an
employee or agent of the Bidder.
B. There is no conflict of interest. A conflict of interest exists if a Bidder has any interest
that would actually conflict, or has the appearance of conflicting, in any manner or
degree with the performance of work on the project. If there are potential conflicts,
identify the municipalities, developers, and other public or private entities with whom
your company is currently, or have been, employed and which may be affected.
C. It is not currently under suspension or debarment by the State of Minnesota, any other
state or the federal government.
D. The company is either organized under Minnesota law or has a Certificate of Authority
from the Minnesota Secretary of State to do business in Minnesota, in accordance with
the requirements in M.S. 303.03.
I-12. Notification of Selection. Bidders whose proposals are not selected will be notified in
writing.
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PART II - PROPOSAL REQUIREMENTS
II-1. Proposal Submission. To be considered, hard copies of proposals must arrive at the City
on or before the time and date specified in the RFP Calendar of Events. The City will not accept
proposals via email or facsimile transmission. The City reserves the right to reject or to deduct
evaluation points for late proposals.
Proposals must be signed by an authorized official. If the official signs the Proposal Cover Sheet
attached as Appendix A, this requirement will be met. Proposals must remain valid for 60 days or
until a contract is fully executed. Terms of the awarded proposal as stated must be valid for the
project length of time.
Please submit in a sealed envelope or package one (1) paper copy of the Technical Submittal and
one (1) paper copy of the Cost Submittal. The Cost Submittal is to be in its own sealed envelope
but may be within the same package as the sealed Technical Submittal. The Technical Submittal
must be able to be reviewed without revealing any Cost information.
All materials submitted in response to this RFP will become property of the City and will become
public record after the evaluation process is completed and an award decision made.
II-2. Proposal Content.
1. Cover letter providing the history of your company
2. Comprehensive services offered (limit to 10 pages)
3. Three references
The proposal shall contain the following information:
A. Overview of the firm's history, including servicing location, number of clients, average size of
clients, client retention rate, industries you serve, number of employees, and how your benefit
practice is structured within your organization, as well as your financial status and stability.
B. Experience working with self-insured health and dental plans within a governmental and union
environment. Provide references of municipalities or other government entities for whom bidder
has completed similar work. Include the name and phone number of a contact person at each
entity, as well as a description of the services performed, implementation date, and the names
of the personnel from your office who worked on the project at each entity.
C. Names and relevant experience of the personnel to be assigned to the project, and description
of customer support philosophy and service model. Specify whether your firm has in-house
compliance lawyers who provide counsel to your clients.
D. Work plan detailing your organization's approach to the Scope of Work outlined below in
Section IV-2. Include plans and proposed outcomes and deliverables for the services
requested. Provide any examples of similar work.
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E. Any additional service you offer, including employee focus groups and/or surveys, HR
consulting services, or other services that may be of interest. Include the cost for each
additional service, but do not include them in the total annual cost.
PART III - CRITERIA FOR SELECTION
The proposals will be reviewed by City Staff. The intent of the selection process is to review
proposals and make an award based upon qualifications as described therein. A 100-point scale
will be used to create the final evaluation recommendations. The factors and weighting on which
proposals will be evaluated are:
Qualifications of the Bidder and Personnel 25%
Prior experience with similar work 30%
Work Plan 25%
Cost 20%
PART IV - PROJECT DETAIL
IV-1. Benefit Program Information:
The City of Duluth currently offers the following benefit programs to its employees and eligible
retirees:
1. Medica Health Plan - Self-funded and Fully Insured (actives and eligible retirees)
2. Delta Dental Plan (actives and eligible retirees)
3. AllOneHealth (SandCreek) EAP - Employee Assistance Program
4. Benefit Resource (BRI) - Flexible Spending Account Plan (medical, dependent
daycare, and commuter benefits)
5. Minnesota Life - Group Life Insurance (actives and eligible retirees)
6. PERA Life - Group Decreasing Life Insurance (actives)
7. Deferred Compensation (457) - Minnesota State Retirement System, Empower,
MissionSquare, and Nationwide
8. Health Care Savings Plan (Minnesota State Retirement System)
9. Defined benefits for public employees (PERA)
10. Worker's Comp (SFM)
11. Minnesota Paid Leave - Self-funded
IV-2. Scope of Work:
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Services requested include the following but are not limited to:
A. Account Management and Client Services
i. Inform Human Resources of changes in the insurance marketplace
ii. Provide written update on new State or Federal legislation or judicial decisions
impacting the City of Duluth's benefits and suggested action or changes in
operations or procedures to assure compliance
iii. Attend and present at Joint Powers Enterprises (JPE) board meetings -
typically five meetings each year
iv. Review programs to compare against benchmark data and determine if
competitive
v. Quarterly review with City leadership regarding actual claims, financial
comparisons, cost drivers, and other relevant data
vi. Monthly financial tracking and reporting
vii. Completion of annual Stewardship reviews
viii. Meet with Human Resources staff on an as needed basis to discuss issues
and open items
ix. Attend monthly meetings virtually with Human Resources staff and medical
plan team
B. Core Services
i. Strategic Planning - Assist us in outlining a benefits strategy consistent with
our current and future business plans and in identifying optimal benefits for our
workforce.
ii. Cost Projections - Assist us in developing cost projections tied to our rates.
iii. Competitive Marketing and Placement of Plans - Assist us with the
competitive marketing and the placement of health and welfare plans,
including the development of marketing specifications, identification of market
conditions, evaluations of proposals, negotiations and placement of insurance
contracts. This includes market research of new and existing markets with
competitive assessments.
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iv. Annual Renewals - Provide analysis and support through the annual renewal
process, including information to assist with setting premium rates.
v. Industry Trends and Emerging Issues - Provide timely benefit consulting
services on trends in the benefit industry and emerging benefit issues,
including pending and/or new state or federally mandated changes and new
solutions to systematic industry problems.
vi. Employee Communications - Assist in developing employee communication
and related tools. Create and distribute benefit communication pieces directed
to employees, including open enrollment information.
vii. Benchmarking and data analysis - Utilize claims analysis and other tools to
assist us with benchmarking against industry standards and similar entities,
and providing other custom data analysis to support strategic decision making.
C. Health and Benefits Strategy Support
i. Analyze factors driving plan costs and recommend opportunities to better
manage cost, access, and quality. Provide select claims reports on a monthly
or quarterly basis. Provide cost projections for current medical, prescription
drug, and dental plans - as needed.
ii. Provide actuarial support for premium rate setting process for self- funded
medical and dental plans. Benchmark medical plan costs and employee
contributions on an annual or as needed basis (using published benchmark
data).
iii. Conduct as-needed review of HMO, PPO, and other network analysis to
estimate cost savings potential with alternative plans and delivery
mechanisms. Develop alternative employee contribution strategies and
formulas, as needed.
iv. Conduct review of business provisions in supplier/carrier contract.
v. Prepare requests for proposals for benefit plans, including defining scope of
services and service performance standards, marketing proposals, analyzing
proposals, presenting a comparative analysis, completing finalist interviews,
and providing a recommendation to City leadership and HR teams, as well as
negotiating with selected providers for the following administrative services:
a. Health Plan
b. Medicare Supplement Plan
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c. Pharmacy Benefit Manager
d. Dental Plan
e. Employee Assistance Program
f. Life Insurance
g. Flexible Spending Account (including Travel Reimbursement)
h. FMLA and Short- and Long-Term Disability Management (including
Worker's Compensation)
i. Deferred Compensation (457)
j. Health Care Savings Plan
k. Workers' Compensation
D. Wellness Strategy Support
i. Analyze factors driving plan costs and recommend opportunities to better
manage cost, access, and quality using wellness strategy.
ii. Benchmark wellness plans and employee engagement on an annual or as
needed basis (using published benchmark data).
iii. Work with Wellness Coordinator and Wellness Committee to develop long
term strategic plan/goals.
iv. Assist in vendor selection for wellness platforms/initiatives.
E. Plan Management
i. Negotiate/re-negotiate performance standards for carriers/suppliers, if
applicable.
ii. Conduct regular meetings with carriers/suppliers to identify issues/problems
and monitor performance against performance standards.
iii. Renewal/proposal processing, management, and negotiations, including
premium, claims experience, pooling levels and charges, expense charges for
plan administration, provider reimbursement arrangements within managed
care delivery systems.
F. Implementation Services
i. Help negotiate final contracts to ensure they conform to bid specifications.
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ii. Participate in design and system review meetings.
iii. Review contracts and booklets.
iv. Establish procedures and protocols with vendors (e.g., corporate reporting and
communication).
v. Establish procedures and protocols for healthcare/benefit provider access to
and sharing of information.
vi. Complete discount and disruption financial analysis.
IV-3. Compensation:
A. The Consultant shall propose clear and comprehensive contract terms that support
successful delivery of all services outlined in the Scope of Work. The proposal must
include the following components:
i) Itemized Fee Schedule The Consultant shall provide an itemized fee
schedule that includes, at minimum:
1) A detailed breakdown of costs for each task or deliverable identified in
the Scope of Work.
2) Hourly rates for all personnel assigned to the project, along with
estimated hours per task.
3) Any anticipated reimbursable expenses, with cost estimates and
justification.
4) Costs associated with optional or post-contract services, if applicable.
5) A total not-to-exceed annual project cost.
B. Payment Plan Based on Measurable Milestones The Consultant shall propose a
payment plan tied to the achievement of clearly defined and measurable contract
milestones. At a minimum, the payment plan must outline:
i) Identification of each milestone.
ii) A description of deliverables or performance outcomes required for milestone
completion.
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