Illinois Public Higher Education Cooperative
Announcement of a Sole Source Purchase
Vendor: Mercer Health And Benefits, LLC., New York, NY
Amount: An estimated $12,000,000
An estimated start date of 1/1/2020 through 12/31/2025, 72 months
Under the federal Affordable Care Act (ACA), IPHEC universities are required to offer medical coverage to all employees averaging 30+ hours/week, or else pay significant fines. IPHEC universities have identified a population of employees working 30+ hours that are not currently eligible for coverage under the State Employees Group Insurance Program (SEGIP) administered by the State of Illinois Department of Central Management Services (CMS). The existing SEGIP eligibility requirements are legislated and there are no current plans to change the legislation to extend coverage for these identified employees.
Additionally, because CMS provides health plan administration for all employees covered under the SEGIP plan, the IPHEC Universities do not have an infrastructure in place for administration of employee medical plan(s).
The University award process may be delayed up to thirty days as this award goes through a state approval process.
The hearing has been cancelled since no vendors registered to attend or submitted comments regarding this notice.
The Chief Procurement Officer for this procurement is now Ben Bagby.
First published Tuesday, June 25, 2019
The University awarded a contract for ACA Employee Benefits Broker to Mercer Health And Benefits, LLC., New York, NY, for an estimated $12,000,000.
The IPHEC has a need for Employee Benefits Brokerage. This is needed due to requirements under the Federal Affordable Care Act. The end result of this will be adequate insurance coverage for part time University employees working more than 30 hours weekly but do not reach full time status.
The IPHEC, on information and belief, has concluded that only one vendor can meet its need or can meet the need economically. That vendor is Mercer Health and Benefits LLC. The IPHEC has provided detailed justification to support its conclusion as shown on the attached Sole Source Justification Form.
Although the IPHEC has presented this as a sole source procurement, we are seeking competitive information from firms with the capability of meeting the IPHEC's need (even if performed in a manner different from what has been presented) to contact us and provide sufficient information to show the need can be met. If we receive that information, the Chief Procurement Officer will offer a public hearing to consider the matter. Hearing information is described below.
The University has determined that this purchase is only economically available from this source because the Specialized Brokerage service covering employee insurance to varying levels of staff regulated by the Federal Affordable Care Act
For additional information, contact:
Phone: (217) 300-3545
State Purchasing Officer - Catherine Bradbury
We will hold a public hearing at the date, time and location specified below, if we
receive a request to testify regarding the sole source determination. We will also
hold a hearing if any vendor submits a signed statement showing the capability to
provide the stated supplies/services at or below the amount indicated.
The public hearing allows any interested party the opportunity to testify for or against
the sole source determination as described in this notice. The purpose of the hearing
is to receive information from the public in a reasonable manner. Formal rules of evidence
will not apply. The hearing officer will produce minutes of the hearing and may record
it in order to aid in the production of the minutes. After conclusion of the hearing we
will decide whether the sole source determination was appropriate.
We must receive any request to testify and any vendor statement no later than the
registration date and time indicated below. If we do not receive a timely request or statement, we will not hold
the hearing. We reserve the right to cancel the procurement prior to any scheduled hearing.
Please confirm the status of the hearing with the Hearing Contact.
July 10, 2019
401 S. Spring Street
Date, time, and location are
subject to change and/or cancellation. It is the responsibility of potential
participants to confirm these details prior to attendance.
July 5, 2019
The State of Illinois has a policy to encourage prospective vendors to hire
qualified veterans, minorities, females, persons with disabilities and ex-offenders.