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An ordinance approving Amendment Number 1 to the contract between the Metropolitan Government of Nashville and Davidson County and iTEDIUM, Inc., for COBRA administration and compliance services as well as direct and retiree billing of benefits.
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WHEREAS, through the competitive bidding process, the Metropolitan Government of Nashville and Davidson County (“Metropolitan Government”) entered into a contract with iTEDIUM, Inc. (“iTEDIUM”), for the provision of COBRA administration and compliance services as well as direct and retiree billing of benefits (“COBRA services contract”); and,
WHEREAS, the term of the Metropolitan Government’s COBRA services contract with iTEDIUM (Contract No. 6492814) commenced on August 23, 2021 and will expire on August 23, 2026; and,
WHEREAS, due to the recent conversion to the new Oracle Cloud system, the Procurement Division paused all requisitions until January 2026 and requested that the timeline for upcoming competitive bidding solicitations be extended for six months; and,
WHEREAS, extending the term of the COBRA services contract for six months through February 22, 2027 is necessary to allow time for these services to be competitively solicited; and,
WHEREAS, extension of the COBRA services contract will cause the contract term to exceed 60 months; and,
WHEREAS, Section 4.12.160 of the Metropolitan Code limits the term of contracts for services to sixty months, unless otherwise authorized by the Metropolitan Council; and,
WHEREAS, it is in the best interest of the Metropolitan Government to extend the COBRA services contract to provide the necessary time to competitively solicit and award the contract to the vendor that best fits the needs of the Metropolitan Government.
NOW THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1: That Amendment Number 1 to the contract between the Metropolitan Government of Nashville and Davidson County and iTEDIUM, Inc., for the provision of COBRA administration and compliance services as well as direct and retiree billing of benefits (Contract No. 6492814), attached hereto and incorporated herein, is hereby approved.
Section 2: That this ordinance shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This ordinance approves the first amendment to a contract between the Metropolitan Government and iTEDIUM, Inc., for COBRA administration and compliance services and the direct and retiree billing of benefits.
The original contract, which did not require Metropolitan Council approval, had an estimated value of $200,000 and a term from May 15, 2021, to May 14, 2026.
The proposed amendment extends the contract term by 60 to 66 months. If approved, the contract term would end on February 22, 2027. Metropolitan Code of Laws Section 4.12. 160(B) requires Council approval of contracts for supplies or services “with terms exceeding a period of sixty months, either initially or by virtue of amendments, renewals or extensions thereof.”
Procurement of this service through a renewed solicitation process has been delayed due to the Metropolitan Government’s transition to Oracle Cloud.
The proposed amendment also removes the requirement for a RFQ, project name, or project description to appear on a certificate of insurance and adds language regarding the boycott of Israel, as required by state law.
Fiscal Note: This amendment increases contract value of contract 6492814 with iTEDIUM, Inc. for the Cobra Administrative Services by $20,000 for a revised contract amount of $220,000 to be paid from Fund 52177, Cost Center 125101000. However, actual expenses may be paid from various funds and cost centers when purchase orders are issued.