CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of RFP 26-003, Employee Benefits Broker, to Segal Group, Inc. for an amount not to exceed $248,460 and for a three-year term
body
DEPARTMENT: Human Resources
SUBMITTED BY: Helga Oles, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City offers medical and dental plans to the employees, dependents and retirees of the City of Naperville, Library, Naper Settlement, Naperville Development Partnership, and NCTV.
Staff utilizes the services of an experienced insurance broker to provide expertise and guidance on the best health and wellness offerings as well as other benefit programs to offer a competitive and comprehensive benefit package covering over 2,500 participants and dependents.
The City Council awarded Contract 21-174 to Alera Group on September 21, 2021, for
a three-year term from January 1, 2022, to December 31, 2024, with two one-year extensions. There are no remaining option years on the existing contract.
DISCUSSION:
In January 2026, the Human Resources Department issued RFP 26-003, Employee Benefits Broker, to initiate a new contract with a benefits broker to strategically plan, analyze, negotiate, implement and comprehensively support the employee benefits programs, including medical insurance, prescription drug plans, stop loss policies, dental insurance, life insurance, Flex Spending Accounts (FSA), Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage, and other voluntary benefits.
While during the term of the current contract Alera Group provided excellent service, they did not meet the RFP deadline for proposal submittal for a new contract. Proposals were received from the following vendors:
|
Vendor |
|
Segal Group, Inc |
|
Brown & Brown Insurance |
|
USI |
A selection team comprised of staff from the Human Resources Department, the Finance Department, and the City Manager’s Office evaluated the responses, which were scored based on the criteria outlined in the RFP:
1. Capability, Capacity and Qualifications of the Proposer (35%)
2. Suitability and Quality of the Approach (35%)
3. Milestone and Deliverables (30%)
After reviewing and scoring the proposals, the selection team invited the top two vendors, Segal Group, Inc and Brown & Brown Insurance, to attend interviews. Following the completion of the interviews, the selection team rescored the vendors. The vendor with the highest qualifications score, Segal Group, Inc is recommended for the award. The table below provides a summary of the final qualification scores:
|
Vendor |
Qualification Score |
|
Segal Group, Inc |
89.4 |
|
Brown & Brown Insurance |
79.8 |
The term of the contract is three years from January 1, 2027, through December 31, 2029, with two one-year options to extend.
FISCAL IMPACT:
CIP#: N/A
Medical insurance broker services are expensed to the other fees and taxes account listed below. A total of $84,000 has been budgeted for the services in 2027 as a part of the budget development process. The remainder of the agreement will be budgeted appropriately for the duration of the agreement.
|
Account Number |
Fund Description |
Total Budget Amount |
|
60101600-523168 |
Self-Insurance |
$108,091 |