Title
Dept/ Agency: Administration/Division of Personnel
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Contract for Pharmacy Benefits Administration
Purpose: To provide Pharmacy Plan Administration (CaremarkPCS Health, L.L.C.)
Entity Name: CaremarkPCS Health, L.L.C.
Entity Address: One CVS Drive, Woonsocket, Rhode Island 02895
Contract Amount: Not to exceed $6,336,556.00
Funding Source: 2024 Budget
Contract Period: July 1, 2024 through June 30, 2027
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. (X) Insurance in compliance with the requirements of EUS
( ) Fair & Open (X) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
Estimated Annual Maximum Costs = $6,336,556
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WHEREAS, as a result of collective bargaining negotiations, the City of Newark, New Jersey (the “City”), is required to provide prescription plan services, with co-payments as individually negotiated with each of the City’s bargaining units, to all eligible active employees, and to their eligible dependents represented by the various bargaining units with which the City negotiates, who are eligible to receive the prescription plan services provided by CaremarkPCS Health, L.L.C. (“Caremark”); and
WHEREAS, Caremark has submitted a proposal indicating they will provide prescription services with a contract period of July 1, 2024 through June 30, 2027 for an annual estimated cost of $6,336,556.00; and
WHEREAS, this contract is awarded without competitive bidding as an exception to Local Public Contracts Law, pursuant to N.J.S.A. 40A:11-5(m), and in accordance with the requirements of an Extraordinary Unspecifiable Service, N.J.S.A. 40A:11-5(1)(a)(ii); and
WHEREAS, Local Public Contracts Law, N.J.S.A. 40A:11-1, et seq. requires a Resolution of the Governing Body authorizing the award of contracts for Extraordinary Unspecifiable Services and further requires that the contract itself must be available for public inspection; and
WHEREAS, the contract is exempt from the requirements of State Pay-to-Play Law, N.J.S.A. 19:44A-20.5, as insurance companies are state-regulated companies by the Department of Banking and Insurance and are statutorily barred from making a reportable contribution pursuant to N.J.S.A. 19:34-32; and
WHEREAS, the Mayor of the City of Newark signed into law Executive Order Number MEO-07-0001 (hereinafter “Pay-to-Play Executive Order”), which requires reporting of political contributions to Newark Municipal Candidates and prohibits certain political contributions during the duration of the contract.
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 and the Personnel Director, are hereby authorized to ratify and enter into and execute a contract with CaremarkPCS Health, L.L.C., One CVS Drive, Woonsocket, Rhode Island 02895, for the provision of prescription plan services for all eligible active employees and to their eligible dependents for the period commencing July 1, 2024 and terminating on June 30, 2027, pursuant to N.J.S.A. 40A:11-15(6).
2. A copy of the fully-executed contract shall be filed in the Office of the City Clerk by the Personnel Director.
3. The contract is awarded without competitive bidding as an exception to Local Public Contracts Law, pursuant to N.J.S.A. 40A:11-5(m), in accordance with the requirements of N.J.S.A. 40A:11-5(1)(a)(ii), Extraordinary Unspecifiable Services, and is in compliance with Executive Order MEO-07-0001, effective March 31, 2007.
4. A Certification of Extraordinary Unspecifiable Services is attached and shall be filed with the Office of the City Clerk.
5. The contract is exempt from the requirements of State Pay-to-Play Law, N.J.S.A. 19:44A-20.5, as insurance companies are state-regulated companies by the Department of Banking and Insurance and are statutorily barred from making a reportable contribution pursuant to N.J.S.A. 19:34-32.
6. The estimated cost of providing the aforesaid services for the period July 1, 2024 through June 30, 2027 is $6,336,556.00.
7. Attached hereto are partial Certifications of Funds, which states that there are available sufficient and legally appropriated funds in the amounts and under the codes provided within the 2024 Municipal Budget, designated for CaremarkPCS Health, L.L.C., for the purposes set forth herein:
8. This is an open-ended contract to be used as needed during the term of the contract. Thus, for any and all expenditures against this contract, certification of the availability of sufficient funds, as required by N.J.A.C. 5:30-5.5(b)(2), shall be executed before a contractual liability is incurred each time an order is placed, covering the amount of the order. If operating under a temporary budget, the City shall comply with N.J.A.C. 5:30-5.5(a)(1) and (2).
9. There shall be no amendments or changes to this contract without approval of the Municipal Council.
10. There shall be no advance payments on this contract in accordance with N.J.S.A. 40A:5-16.
11. 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.
12. If required by Law, the City Clerk shall provide the appropriate notice of award of the contract to the State Comptroller, no later than twenty (20) business days following such award, in accordance with N.J.S.A. 52:15C-10 and the Notice of the Office of the State Comptroller dated May 7, 2008.
STATEMENT
This Resolution ratifies and authorizes the Mayor of the City of Newark and/or his designees, the Business Administrator and the Personnel Director to enter into and execute a contract with CaremarkPCS Health, L.L.C., One CVS Drive, Woonsocket, Rhode Island 02895 for the provision of prescription plan services for all eligible active employees and their eligible dependents, for the period commencing July 1, 2024 and terminating on June 30, 2027. This contract is awarded without competitive bidding as an exception to Local Public Contracts Law, pursuant to N.J.S.A. 40A:11-5(m), and in accordance with the requirements of N.J.S.A. 40A:11-5(1)(a)(ii) Extraordinary Unspecifiable Services, and is in compliance with Executive Order MEO-07-0001, effective March 31, 2007.