Title
Dept/ Agency: Administration/Office of the Business Administrator
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Exception to Public Bidding for Health Insurance Brokerage Services
Purpose: To provide Health Insurance Brokerage Services for Prescription (Active and Retiree) and Magnacare.
Entity Name: Group Health Experts
Entity Address: 111 Old Forge Road, P.O. Box 341, Millington, New Jersey 07946
Contract Amount: Not to exceed $100,000.00
Funding Source: 2023 Budget/Office of the Business Administrator/NW011-200-2001-A-60210-B2023
Contract Period: September 1, 2023 through August 31, 2024 with two (2) one (1) year options to extend the contract not to exceed three (3) years in aggregate
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open (X) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
Exception to Public Bidding: N.J.S.A. 40A:11-5(m) Insurance, which includes brokerage services.
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WHEREAS, the City of Newark (“City”) needs an Insurance Broker Services for various Employee Benefits more specifically, active and retiree prescription and Magnacare benefits; and
WHEREAS, New Jersey Local Public Contract Law authorizes exception to public bidding in compliance with N.J.S.A. 40A:11-5(m) Insurance, which includes brokerage services; and
WHEREAS, Group Health Experts, 111 Old Forge Road, P.O. Box 341, Millington, New Jersey 07946 has submitted a proposal and have determined it is in the best interest of the City to award a contract to Global Health Services based upon expertise, extensive training, and proven reputation in the field for the purpose of providing Health Insurance Brokerage Services for prescription for active and retiree populations and Magnacare Population beginning September 1, 2023 through August 31, 2024, with an option to extend the contract after August 31, 2024 with two (2) one (1) year options to extend the contract not to exceed three (3) years in aggregate; and
WHEREAS, the City wishes to enter into a contract with Group Health Experts, to provide health insurance consulting/brokerage services for active and retiree prescription for active and retiree populations, as well as brokerage services for the Magnacare population for the City, in an amount not to exceed One Hundred Thousand Dollars and Zero Cents ($100,000.00); and
WHEREAS, the Business Administrator and Personnel Director have determined and certified, in writing, that the value of this contract will exceed $17,500.00; and
WHEREAS, the actions contemplated by this Resolution shall result in the award of a Non-Fair and Open Contract in accordance with N.J.S.A. 19:44A-20.5; and
WHEREAS, Group Health Experts has completed and submitted a Business Entity Disclosure Certification, which certifies that Group Health Experts has not made any reportable contributions to a political or candidate committee in the City of Newark in the previous one (1) year, and the contract will prohibit Group Health Experts from making any reportable contributions through the term of the contract; and
WHEREAS, the Municipal Council adopted New Jersey Municipal Code § 2:4-22C.1, which adopted the State of New Jersey's Pay-to-Play statutory requirements pursuant to N.J.S.A. 19:44A-20.5, as may be amended and supplemented, governing eligibility for municipal contracts.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark and/or his designees, the Business Administrator or the Personnel Director, are hereby authorized and directed to enter into and execute a contract with Group Health Experts, 111 Old Forge Road, P.O. Box 341, Millington, New Jersey 07946 to provide management and oversight support for all health insurance consulting/brokerage services, as well as brokerage services for the Magnacare population for the City of Newark, for the period of one (1) year commencing September 1, 2023 and terminating on August 31, 2024 for an amount not to exceed One Hundred Thousand Dollars and Zero Cents ($100,000.00) per year, with two (2) one (1) year options to extend the contract not to exceed three (3) years in aggregate.
2. This contract a multi-year contract is subject to the availability and appropriation of sufficient funds in the year in which it takes effect, pursuant to N.J.A.C. 5:30-5.5 (e). Funds for this contract in the amount not to exceed One Hundred Thousand Dollars and Zero Cents ($100,000.00) shall be provided from the Office of the Business Administrator Funding Line: 011-200-2001-A-60210-B2023.
3. This contract is being awarded pursuant to the Non-Fair and Open Procedures of the Pay-to-Play Law, N.J.S.A. 19:44A-20.5 et seq., and pursuant to the provisions of the Local Public Contracts Law, (N.J.S.A. 40A:11-5(1)(x)), which authorizes the award of a contract for management and oversight support for all health insurance consulting/brokerage services, as well as brokerage services for the Magnacare population for the City of Newark, without public bidding.
4. The contract will contain language prohibiting any contributions in violation of any state or local law, ordinances, and regulations.
5. The Business Entity Disclosure Certification and the Determination of Value shall be placed on file with this Resolution.
6. There shall be no amendments or changes to the contract without approval of the Municipal Council.
7. There shall be no advance payments on this contract in accordance with N.J.S.A. 40A:5-16.
8. A copy of this executed contract herein authorized shall be filed in the Office of the City Clerk by the Business Administrator and shall be made available for public inspection.
9. A notice of this action shall be published in the newspaper authorized by law to publish a legal advertisement and as required by law within ten (10) days of its passage.
STATEMENT
This Resolution authorizes the Mayor the City of Newark /or his designees, the Business Administrator or the Personnel Director, pursuant to N.J.S.A. 40A:11-5(m) to enter into and execute a contract with Group Health Experts, 111 Old Forge Road, P.O. Box 341, Millington, New Jersey 07946, to health insurance consulting/brokerage services for prescription for active and retiree populations, as well as brokerage services for the Magnacare population for the City of Newark, for an amount not to exceed $100,000.00 per year, for a period of one (1) year commencing September 1, 2023 and ending August 31, 2024, with two (2) one (1) year options to extend the contract not to exceed three (3) years in aggregate.