MURIEL BOWSER
MAYOR
October 31,2024
The Honorable Phil Mendelson
Chairman, Council ofthe District ofColumbia
1350 Pennsylvania Avenue NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code § 1-
204.51) and section 202 ofthe Procurement Practices Reform Act of2010 (D.C. Official Code§
2-352.02), enclosed for consideration and approval by the Council ofthe District ofColumbia is
proposed Modification N o. MOO14 to Contract No. CW76697 with UnitedHealthcare Insurance
Company (UnitedHealthcare) to extend the term of the contract in the not-to-exceed amount of
$100,223,376.78. The period ofperformance is from January 1, 2025, through December 31, 2025.
Under the proposed modification, UnitedHealthcare will continue to provide and administer health
insurance plans and prescription drug coverage for employees of the District of Columbia
government, their eligible dependents, and retirees.
My administration is available to discuss any questions you may have regarding the proposed
contract. In order to facilitate a response to any questions you may have, please have your staff
contact Marc Scott, ChiefOperating Officer, Office ofContracting and Procurement, at (202) 724-
8759.
I look forward to the Council's favorable consideration ofthis contract modification.
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, as amended, D.C.
Official Code § 2-352.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Sole Source Extension)
(A) Contract Number: CW76697
Modification No. M0014
Proposed Contractor: UnitedHealthcare Insurance Company (United)
Proposed Contractor’s Principals: Tracy Arney, Nyle Cottington, Marilyn Hirsch, Gary
Iannone, Heather Lang, Courtney Mattson, Timothy Noel,
Jessica Paik, Thomas Roos, Linda Thiery, Jessica Zuba
Contract Amount (Extension Period): Not-to-exceed (NTE) $100,223,376.78
Unit and Method of Compensation: Biweekly premium rates per enrollee
Term of Contract: January 1, 2025, through December 31, 2025
Type of Contract: Indefinite Delivery/Indefinite Quantity
Source Selection Method: Sole Source Extension
(B) For a contract containing option periods, the contract amount for the base period and for
each option period. If the contract amount for one or more of the option periods differs from
the amount for the base period, provide an explanation of the reason for the difference:
Base Period Amount: $0
The contractor commenced transition services during the base period at no cost to the District.
Option Period One Amount: NTE $103,920,700
Council Approval Legislation #: CA23-0384
Explanation of difference from base period (if applicable): The contract amount for option
period one differs from the base period amount since the base period was at no cost.
Option Period Two Amount: NTE $116,910,950
Council Approval Legislation #: CA23-0772
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Explanation of difference from base period (if applicable): Per the terms of the contract, the
contractor submits revised fixed unit prices annually for all line items for each option period. The
prices are reviewed and approved by the agency prior to each option exercise.
Option Period Three Amount: NTE $87,011,109.37
Council Approval Legislation #: CA24-0356
Explanation of difference from base period (if applicable): Per the terms of the contract, the
contractor annually submits revised fixed unit prices for all line items for each option period. The
prices are reviewed and approved by the agency prior to each option exercise.
Option Period Four Amount: NTE $93,640,804.16
Council Approval Legislation #: CA24-0766
Explanation of difference from base period (if applicable): Per the terms of the contract, the
contractor submits revised fixed unit prices annually for all line items for each option period. The
prices are reviewed and approved by the agency prior to each option exercise.
Sole Source Extension Period Amount (2024): NTE $123,759,490.26
Council Approval Legislation #: CA25-0510
Explanation of difference from base period (if applicable): Per the terms of the contract, the
contractor submits revised fixed unit prices annually for all line items for each contract period. The
prices are reviewed and approved by the agency prior to extension.
Sole Source Extension Period Amount (2025): NTE $100,223,376.78
Explanation of difference from base period (if applicable): Per the terms of the contract, the
contractor submits revised fixed unit prices annually for all line items for each contract period. The
prices are reviewed and approved by the agency prior to extension.
(C) The goods or services to be provided, the methods of delivering goods or services, and any
significant program changes reflected in the proposed contract:
The contractor will continue to provide and administer the fully insured health benefits program to
District employees and their dependents. United will provide the following plan types: Preferred
Provider Organization, Health Maintenance Organization, and Medicare Advantage.
(D) The date on which a competitive procurement for these goods or services was last conducted,
the date of the resulting award, and a detailed explanation of why a competitive procurement
is not feasible:
Solicitation Doc450677 was issued as a request for proposals (RFP) on the open market on July 1,
2019. The closing date was August 2, 2019. An award was made to United on November 7, 2019.
The Office of Contracting and Procurement (OCP) issued a new solicitation, Doc723054, on June
6, 2024. However, none of the offerors submitted a compliant subcontracting plan, and therefore,
they were all deemed nonresponsive in accordance with District law. Given the urgency of the
requirement, completing another competitive process before services are needed is not feasible.
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OCP is extending the current contract with United and intends to issue a new competitive
solicitation in 2025.
(E) A description of any bid protest related to the award of the contract, including whether the
protest was resolved through litigation, withdrawal of the protest by the protestor, or
voluntary corrective action by the District. Include the identity of the protestor, the grounds
alleged in the protest, and any deficiencies identified by the District as a result of the protest:
One protest concerning the original multi-award RFP was filed before the Contract Appeals Board
(CAB), protest no. P-1113. The protestor, Aetna Life Insurance Company and Aetna Health, Inc.,
argued first that CareFirst’s proposal was not responsive to the solicitation requirements for
infertility coverage and second that CareFirst failed to submit a valid subcontracting plan. The CAB
denied their first claim and dismissed their second.
(F) A description of any other contracts the proposed contractor is currently seeking or holds
with the District:
None.
(G) The background and qualifications of the proposed contractor, including its organization,
financial stability, personnel, and performance on past or current government or private
sector contracts with requirements similar to those of the proposed contract:
The proposed contractor has provided the District with health benefits for over ten years under the
current and prior contracts and has demonstrated through their technical approach and past
performance reports that they have the organization, financial stability, personnel, and performance
history required to successfully meet the requirements of the proposed contract.
(H) A summary of the subcontracting plan required under section 2346 of the Small, Local, and
Disadvantaged Business Enterprise Development and Assistance Act of 2005, as amended,
D.C. Official Code § 2-218.01 et seq. (“Act”), including a certification that the subcontracting
plan meets the minimum requirements of the Act and the dollar volume of the portion of the
contract to be subcontracted, expressed both in total dollars and as a percentage of the total
contract amount:
The Department of Small and Local Business Development (DSLBD) approved an adjustment to
the CBE subcontracting requirements since the District’s healthcare benefits contributions are
shared by District and employees. The District funds 75% of the contract, and employees fund the
remaining 25%. At OCP’s request DCHR’s actuary confirmed that 96% of the contract amount
goes to direct payments for employee medical claims and that these are straight pass-through
payments that cannot be subcontracted. The remaining 4% of the contract amount covers
administrative costs such as operational expenses, overhead, retention costs, and marketing, some
of which are eligible for subcontracting to CBEs. Utilizing that 4%, DCHR’s estimated enrollment
for United for the 2024 benefit year, and the premium rates for the year, DSLBD and OCP agree
that the percentage of the extension period amount to be subcontracted should be 1.4%, which
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equates to $1,403,127.27 for the extension period. The contractor has submitted a compliant
subcontracting plan.
(I) Performance standards and the expected outcome of the proposed contract:
The proposed contractor will adhere to specific performance requirements in the contract related to
implementation, enrollment assistance, claims administration, financial accuracy, customer service
response, reporting, employee wellness, and network management and will be required to
administer claims completely and accurately regarding managing employee care, diseases, and
wellness.
(J) The amount and date of any expenditure of funds by the District pursuant to the contract
prior to its submission to the Council for approval:
None.
(K) A certification that the proposed contract is within the appropriated budget authority for the
agency for the fiscal year and is consistent with the financial plan and budget adopted in
accordance with D.C. Official Code §§ 47-392.01 and 47-392.02:
The Office of the Chief Financial Officer has certified by funding certification dated October 7,
2024, that the proposed contract is within the appropriated budget authority for the fiscal year.
(L) A certification that the contract is legally sufficient, including whether the proposed
contractor has any pending legal claims against the District:
The Office of the Attorney General has certified that the contract is legally sufficient and that the
proposed contractor does not have any pending legal claims against the District.
(M) A certification that the Citywide Clean Hands database indicates that the proposed contractor
is current with its District taxes. If the Citywide Clean Hands Database indicates that the
proposed contractor is not current with its District taxes, either: (1) a certification that the
contractor has worked out and is current with a payment schedule approved by the District;
or (2) a certification that the contractor will be current with its District taxes after the District
recovers any outstanding debt as provided under D.C. Official Code § 2-353.01(b):
The proposed contractor’s Citywide Clean Hands report issued on September 16, 2024, indicates no
outstanding liabilities with the District.
(N) A certification from the proposed contractor that it is current with its federal taxes, or has
worked out and is current with a payment schedule approved by the federal government:
The proposed contractor has certified via their Bidder-Offeror Certification Form, dated September
4, 2024, that they’re current with their federal taxes.
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(O) A certification that the proposed contractor has been determined not to violate section 334a of
the Board of Ethics and Government Accountability Establishment and Comprehensive
Ethics Reform Amendment Act of 2011, D.C. Official Code § 1-1163.34a; and (2) A
certification from the proposed contractor that it currently is not and will not be in violation
of section 334a of the Board of Ethics and Government Accountability Establishment and
Comprehensive Ethics Reform Amendment Act of 2011, D.C. Official Code § 1-1163.34a:
The proposed contractor has been determined not to violate section 334a of the Board of Ethics and
Government Accountability Establishment and Comprehensive Ethics Reform Act of 2011, and the
proposed contractor has certified on their Bidder-Offeror Certification Form, dated September 4,
2024, that they are not and will not be in violation of section 334a of the Board of Ethics and
Government Accountability Establishment and Comprehensive Ethics Reform Act of 2011.
(P) The status of the proposed contractor as a certified local, small, or disadvantaged business
enterprise as defined in the Small, Local, and Disadvantaged Business Enterprise
Development and Assistance Act of 2005, as amended, D.C. Official Code § 2-218.01 et seq.:
The proposed contractor is not a certified local, small, or disadvantaged business enterprise.
(Q) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
None.
(R) A statement indicating whether the proposed contractor is currently debarred from providing
services or goods to the District or federal government, the dates of the debarment, and the
reasons for debarment:
The proposed contractor is not currently debarred from providing services or goods to the District
or federal government.
(S) Any determination and findings issues relating to the contract’s formation, including any
determination and findings made under D.C. Official Code § 2-352.05 (privatization
contracts):
Determination and Findings for Sole Source Extension
Determination and Findings regarding Contractor Responsibility
Determination and Findings regarding Price Reasonableness
(T) Where the contract, and any amendments or modifications, if executed, will be made
available online:
www.ocp.dc.gov
(U) Where the original solicitation, and any amendments or modifications, will be made available
online:
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www.ocp.dc.gov
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Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: September 16, 2024 Notice Number: L0012640582
UNITEDHEALTHCARE INSURANCE COMPANY FEIN: **-***9571
185 ASYLUM STREET Case ID: 16902505
HARTFORD CT 06103-0450
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
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liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code § 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE § 47-2862 (2006)
PY
§ 47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Melinda Jenkins
Branch Chief, Collection and Enforcement Administration
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
“Validate a Certificate of Clean Hands” hyperlink under the Clean Hands section.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE CHIEF FINANCIAL OFFICER
Glen Lee
Chief Financial Officer
CERTIFICATION OF THE AVAILABILITY OF FUNDING
FOR THE HEALTH INSURANCE CONTRACTS
FOR POST-SEPTEMBER 30, 1987 DISTRICT EMPLOYEES
FOR THE PERIOD JANUARY 1, 2025 THROUGH SEPTEMBER 30, 2025
And
FOR THE PERIOD OCTOBER 1, 2025 THROUGH DECEMBER 31, 2025
The District’s share of premiums (75% of the coverage) for the health plan contracts is estimated
at $450,250,453. Based on estimates using current enrollment data and premium levels, this
statement is to certify that $337,687,839 is available to fund the health insurance contracts
CW76699, CW76697. CW76695, and CW76721, respectively, with Aetna, UnitedHealth Care,
Blue Cross Blue Shield, and Kaiser Permanente for the District of Columbia Employees Health
Benefits (DCEHB) program from January 1, 2025 through September 30, 2025. For the remaining
period of the contract, October 1, 2025 through December 31, 2025, the District will seek budget
authority through the FY 2026 appropriation in the amount of $112,562,613. Premiums are based
on the coverage selected by the employee, with 75 percent of the cost paid by the District and 25
percent of the cost paid by the employee. The total maximum contract amount for the four health
insurance companies is estimated at $600,333,937. The maximum contract amount assumes an
enrollment of 29,239 employees. The District’s cost of health insurance premiums is included in
Account 7014, which is part of each agency’s budget for active employees. The employees’ cost
will be deducted from their paychecks.
Please certify the availability of funding by signing below:
October 7, 2024
Glen Lee Date
Chief Financial Officer
John A. Wilson Building * 1350 Pennsylvania Avenue, N.W. * Suite 203 * Washington, D.C. 20004
Phone: (202) 727-2476 * Fax: (202) 727-1643 * www.cfo.dc.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
ATTORNEY GENERAL
BRIAN L. SCHWALB
Commercial Division
MEMORANDUM
TO: Sarina Loy
Deputy Director
Office of Policy and Legislative Affairs
FROM: Robert Schildkraut
Section Chief
Government Contracts Section
DATE: October 22, 2024
SUBJECT: Contractor: UnitedHealthcare Insurance Company
Contract No.: CW76697
Total Amount: NTE $100,223,376.78
This is to Certify that this Office has reviewed the above-referenced Contract and that we have
found it to be legally sufficient pending receipt of compliant