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Contract - Gallagher Benefit Services, Inc. - 7/9/2026 CITY OF ROUND ROCK AGREEMENT FOR EMPLOYEE BENEFITS CONSULTING SERVICES WITH GALLAGHER BENEFIT SERVICES,INC. THE STATE OF TEXAS § CITY OF ROUND ROCK § KNOW ALL BY THESE PRESENTS: COUNTY OF WILLIAMSON § COUNTY OF TRAVIS § THIS AGREEMENT for employee benefits consulting services for the City of Round Rock (the"Agreement")is entered into on this_A�!day of , 2026,by and between the CITY OF ROUND ROCK, TEXAS, a home-rule municipWity, with offices located at 221 East Main Street, Round Rock, Texas 78664-5299 (the "City") and GALLAGHER BENEFIT SERVICES, INC., with offices located at 12750 Merit Drive, Dallas, Texas 75251 (the "Consultant"). This Agreement supersedes and replaces any previous agreement between the named parties,whether oral or written, and whether or not established by custom and practice. RECITALS: WHEREAS, City has determined that there is a need for employee benefits consulting services("services"); and WHEREAS,City has issued its"Request for Proposals"for the provision of said services; and WHEREAS,City has determined that Consultant provides the bast value for said services; and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties and obligations hereunder; NOW,THEREFORE,WITNESSETH: That for and in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: 1.0 DEFINITIONS A. Agreement means this binding legal contract between City and Consultant whereby City agrees to buy specified services, and Consultant is obligated to provide same. The Agreement includes the following: (a) City's Request for Proposal, designated Solicitation 1 Number 25-004 dated January 2026 ("RFP"); (b) Consultant's Proposal; and (c) any exhibits and/or addenda thereto. Any inconsistencies or conflicts in the contract documents shall be resolved by giving preference in the following order: (1) This Agreement; (2) Consultant's Proposal; (3) City's Request for Proposals,Addenda,exhibits, and attachments. B. City means the City of Round Rock, Williamson and Travis Counties, Texas. C. Effective Date means the date set out in the introductory paragraph above. D. Services mean the specified services, supplies, materials, commodities, or equipment. E. Standard Terms and Conditions means the City's Standard Terms and Conditions as set forth at: https://www.roundrocktexas.gov/wp-content/uploads/2021/12/Terms- and-Conditions-November-2021-Final.pdf F. Consultant means Gallagher Benefit Services, Inc., or any successors or assigns. 2.0 EFFECTIVE DATE AND TERM A. This Agreement shall be effective on the Effective Date and shall remain in full force and effect unless and until it expires by operation of the term indicated herein or is terminated or extended as provided herein. B. The term of this Agreement shall be for sixty(60)months from the Effective Date. C. City reserves the right to review the relationship at any time and may elect to terminate this Agreement with or without cause or may elect to continue. 3.0 CONTRACT DOCUMENTS AND EXHIBITS A. City selected Consultant to supply the Services as outlined in the RFP;any Addenda to RFP; and the Proposal submitted by Consultant, all as specified in Exhibit "A," incorporated herein by reference for all purposes. The intent of these documents is to formulate an Agreement listing the responsibilities of both parties as outlined in the RFP and any Addenda to RFP and as offered by Consultant in its Proposal. B. The Services which are the subject matter of this Agreement are described in Exhibit"A"which is fully a part of this Agreement as if repeated herein in full. 2 4.0 SCOPE OF WORK Consultant shall satisfactorily provide all Services described in Exhibit "A," attached hereto,within the contract term specified in Section 2.0.Consultant's undertakings shall be limited to performing services for City and/or advising City concerning those matters on which Consultant has been specifically engaged. Consultant shall perform its services in accordance with this Agreement, in accordance with the appended exhibits, in accordance with due care, and in accordance with prevailing industry standards for comparable services. 5.0 COSTS A. In consideration for the Services to be performed by Consultant,City agrees to pay Consultant the amounts set forth in"Attachment C—Cost Proposal"of Exhibit"A." B. The City shall is authorized to pay the Consultant an amount not-to-exceed $300,000.00 for the term of this Agreement. 6.0 INVOICES A. All invoices shall include,at a minimum,the following information: 1. Name and address of Consultant; 2. Purchase Order Number; 3. Description and quantity of Services provided; and 4. Delivery dates. 7.0 INTERLOCAL COOPERATIVE CONTRACTING/PURCHASING A. Authority for local governments to contract with one another to perform certain governmental functions and services, including but not limited to purchasing functions, is granted under Government Code, Title 7, Chapter 791, Interlocal Cooperation Contracts, Subchapter B and Subchapter C, and Local Government Code, Title 8, Chapter 271, Subchapter F, Section 27 1.101 and Section 271.102. B. Other governmental entities within the State of Texas may be extended the opportunity to purchase off of the City's proposal,with the consent and agreement of the successful service provider(s)and the City. Such agreement shall be conclusively inferred for the Consultant from lack of exception to this clause in the service provider's response.However,all parties hereby expressly agree that the City is not an agent of, partner to, or representative of those outside agencies or entities and that the City is not obligated or liable for any action or debts that may arise out of such independently-negotiated"piggyback"procurements. 3 8.0 NON-APPROPRIATION AND FISCAL FUNDING This Agreement is a commitment of City's current revenues only. It is understood and agreed that City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of City does not appropriate funds sufficient to purchase the Services as determined by City's budget for the fiscal year in question. City may affect such termination by giving Consultant a written notice of termination at the end of its then-current fiscal year.The City shall be responsible for paying Consultant for any satisfactorily work completed up until the date Consultant received notice of non-appropriation or until the termination date set forth in the notice, whichever is later. 9.0 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, any payment to be made by City to Consultant will be made within thirty (30) days of the date City receives the Services under this Agreement,the date the performance of the Services under this Agreement are completed, or the date City receives a correct invoice for the services, whichever is later. Consultant may charge interest on an overdue payment at the "rate in effect" on September 1 of the fiscal year in which the payment becomes overdue, in accordance with V.T.C.A., Texas Government Code, Section 2251.025(b).This Prompt Payment Policy does not apply to payments made by City in the event: 1. There is a bona fide dispute between City and Consultant, a contractor, subcontractor, or supplier about the Service performed that cause the payment to be late; or 2. There is a bona fide dispute between Consultant and a subcontractor or between a subcontractor and its supplier about the Services performed that causes the payment to be late; or 3. The terms of a federal contract, grant, regulation, or statute prevent City from making a timely payment with federal funds;or 4. The invoice is not mailed to City in strict accordance with any instruction on the purchase order relating to the payment. 10.0 GRATUITIES AND BRIBES City may, by written notice to Consultant, cancel this Agreement without liability to Consultant if it is determined by City that gratuities or bribes in the form of entertainment, gifts, or otherwise were offered or given by Consultant or its agents or representatives to any City officer, employee or elected representative with respect to the performance of this Agreement. In addition, Consultant may be subject to penalties stated in Title 8 of the Texas Penal Code. 4 11.0 TAXES City is exempt from Federal Excise and State Sales Tax;therefore,tax shall not be included in Consultant's charges. 12.0 INSURANCE Consultant shall at all times during the term of this Agreement and for a period of two (2) years thereafter, obtain and maintain in force the following minimum insurance coverages and limits at its own expense: Commercial General Liability (CGL) insurance on an ISO form number CG 00 01 (or equivalent) covering claims for bodily injury, death, personal injury, or property damage occurring or arising out of the performance of this Agreement, including coverage for premises, products, and completed operations, on an occurrence basis, with limits no less than$2,000,000.00 per occurrence and $4,000,000.00 in the aggregate; Workers Compensation insurance with statutory limits,as required by the state in which the work takes place, and Employer's Liability insurance with limits no less than $1,000,000.00 per accident for bodily injury or disease. Insurer will be licensed to do business in the state in which the work takes place; Automobile Liability insurance on an ISO form number CA 00 01 covering all hired and non-owned automobiles with limit of$1,000,000.00 per accident for bodily injury and property damage; Umbrella Liability insurance providing excess coverage over all limits and coverages with a limit no less than $10,000,000.00 per occurrence or in the aggregate; Errors & Omissions Liability insurance, including extended reporting conditions of two (2) years with limits of no less than $5,000,000.00 per claim, or $10,000,000.00 in the aggregate; Cyber Liability, Technology Errors & Omissions, and Network Security & Privacy Liability insurance, including extended reporting conditions of two (2) years with limits no less than $2,000,000.00 per claim and in the aggregate, inclusive of defense costs; and Crime insurance covering third-party crime and employee dishonesty with limits of no less than $1,000,000.00 per claim and in the aggregate. All commercial insurance policies shall be written with insurers that have a minimum AM Best rating of no less than A-VI,and licensed to do business in the state of operation.Any cancelled or non-renewed policy will be replaced with no coverage gap, and a Certificate of Insurance evidencing the coverages set forth in this section shall be provided to City upon request. 5 13.0 CITY'S REPRESENTATIVE City hereby designates the following representative authorized to act in its behalf with regard to this Agreement: Tyler Jarl,Benefits Manager Human Resources Department 221 East Main Street Round Rock, TX 78664 tiarl(&roundrocktexas.gov 14.0 RIGHT TO ASSURANCE Whenever either party to this Agreement, in good faith, has reason to question the other party's intent to perform hereunder, then demand may be made to the other party for written assurance of the intent to perform. In the event that no written assurance is given within the reasonable time specified when demand is made,then and in that event the demanding party may treat such failure as an anticipatory repudiation of this Agreement. 15.0 DELIVERABLES City shall own all final deliverables provided to City by Consultant as part of the services provided under this Agreement, provided however, Consultant shall retain sole and exclusive ownership of all right,title,and interest in, and to, its intellectual property and derivatives thereof which no data or confidential information of the City was used to create and was developed entirely using Consultant's own resources, including any and all pre-existing or independently developed know-how, methods, processes and other materials prepared by Consultant. To the extent Consultant's intellectual property is necessary for the City to use the deliverables provided under this Agreement, Consultant grants to City a non-exclusive, royalty-free license to Consultant's intellectual property solely for City's use of such deliverables. This Section 15.0 shall supersede Section 43 of the City's Standard Terms and Conditions. 16.0 DEFAULT If Consultant abandons or defaults under this Agreement and is a cause of City acquiring the specified goods elsewhere. Consultant shall be declared in default of this Agreement if it does any of the following and fails to cure the issue within thirty(30)days of receipt of written notice: 1. Fails to fully, timely and faithfully perform any of its material obligations under this Agreement; 2. Becomes insolvent or seeks relief under the bankruptcy laws of the United States, and is unable to perform its material obligations under the Agreement. 6 17.0 TERMINATION AND SUSPENSION A. City has the right to terminate this Agreement, in whole or in part,for convenience and without cause, at any time upon ninety (90)days' written notice to Consultant. B. In the event of any default by Consultant, City has the right to terminate this Agreement for cause, upon ten(10)days' written notice to Consultant. C. Consultant has the right to terminate this Agreement only for cause, that being in the event of a material and substantial breach by City, or by mutual agreement to terminate evidenced in writing by and between the parties. D. In the event City terminates under subsections (A) or (B) of this section, the following shall apply: Upon City's delivery of the referenced notice to Consultant, Consultant shall discontinue all services in connection with the performance of this Agreement and shall proceed to cancel promptly all existing orders and contracts insofar as such orders and contracts are chargeable to this Agreement. Within thirty (30) days after such notice of termination, Consultant shall submit a statement showing in detail the goods and/or services satisfactorily performed under this Agreement to the date of termination. City shall then pay Consultant that portion of the charges, if undisputed. The parties agree that Consultant is not entitled to compensation for Services it would have performed under the remaining term of the Agreement except as provided herein. 18.0 INDEMNIFICATION Each party agrees to defend, indemnify and hold the other party and its affiliates and respective directors,officers,employees and agents harmless to the fullest extent permitted by law from any and all losses, liabilities, exposures, damages and all related costs and expenses, including reasonable legal fees, to the extent arising from or relating to any third party claims, demands, suits, allegations, or causes or threats of actions based on the indemnifying party's: (i) breach of any representation, warranty or covenant made by such party hereunder, or(ii) grossly negligent acts or omissions or intentional misconduct; provided, however, that the indemnifying party's indemnification obligations hereunder shall be reduced to the extent that such losses and damages arise from the acts or omissions of the other party or its employees or agents. 19.0 LIMITATION OF LIABILITY Notwithstanding any other term or provision of this Agreement, each party shall only be liable for actual, direct damages incurred by the other party, and shall not be liable for indirect, special, exemplary,reliance, consequential, or punitive damages. 20.0 COMPLIANCE WITH LAWS, CHARTER, AND ORDINANCES A. Consultant, its agents, employees and subcontractors shall use best efforts to comply with all applicable federal and state laws,the Charter and Ordinances of the City of Round Rock, as amended, and with all applicable rules and regulations promulgated by local, state and 7 national boards,bureaus and agencies. B. In accordance with Chapter 2271, Texas Government Code, a governmental entity may not enter into a contract with a company for goods or services unless the contract contains written verification from the company that it: (1)does not boycott Israel; and (2)will not boycott Israel and will not boycott Israel during the term of this contract. The signatory executing this Agreement on behalf of Consultant verifies Consultant does not boycott Israel and will not boycott Israel during the term of this Agreement. C. In accordance with Chapter 2274,Texas Government Code,a governmental entity may not enter into a contract with a company with at least ten(10)full-time employees for a value of at least One Hundred Thousand and No/100 Dollars ($100,000.00) unless the contract has a provision verifying that it: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or firearm trade association. The signatory executing this Agreement on behalf of Consultant verifies Consultant does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association,and it will not discriminate during the term of this Agreement against a firearm entity or firearm trade association. D. In accordance with Chapter 2274, Texas Government Code, a governmental entity may not enter into a contract with a company with at least ten(10)full-time employees for a value of at least One Hundred Thousand and No/100 Dollars ($100,000.00) unless the contract has a provision verifying that it: (1)does not boycott energy companies; and(2)will not boycott energy companies during the term of this Agreement. The signatory executing this Agreement on behalf of Consultant verifies Consultant does not boycott energy companies, and it will not boycott energy companies during the term of this Agreement. 21.0 ASSIGNMENT AND DELEGATION The parties hereby bind themselves, their successors, assigns and legal representatives to each other with respect to the terms of this Agreement.Neither party shall assign,sublet or transfer any interest in this Agreement without prior written authorization of the other party. 22.0 NOTICES A. All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: 1. When delivered personally to recipient's address as stated in this Agreement; or 2. Three(3)days after being deposited in the United States mail,with postage prepaid to the recipient's address as stated in this Agreement. 8 Notice to Consultant: Gallagher Benefit Services, Inc. 12750 Merit Drive Dallas,TX 75251 Notice to City: City Manager Stephanie L. Sandre, City Attorney 221 East Main Street AND TO: 309 East Main Street Round Rock,TX 78664 Round Rock, TX 78664 B. Nothing contained herein shall be construed to restrict the transmission of routine communications between representatives of City and Consultant. 23.0 APPLICABLE LAW, ENFORCEMENT, AND VENUE This Agreement shall be enforceable in Round Rock,Texas,and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for same shall lie in Williamson County,Texas.This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas. 24.0 EXCLUSIVE AGREEMENT This document, and all appended documents, constitutes the entire Agreement between Consultant and City.This Agreement may only be amended or supplemented by mutual agreement of the parties hereto in writing. 25.0 DISPUTE RESOLUTION City and Consultant hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding,including without limitation,any proceeding under the Federal Arbitration Act(9 USC Section 1-14)or any applicable state arbitration statute. 26.0 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion or provision of this Agreement void shall in no way affect the validity or enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion or provision held to be void.The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this section shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. 9 27.0 MISCELLANEOUS PROVISIONS A. Exceptions. The City's Standard Terms of Conditions are amended for the purposes of this Agreement as follows: (1)Terms and Conditions, Section 4, Acceptance of Terms & Conditions — Last sentence is removed. (2) Terms and Conditions, Section 31, Governing Law and Venue — Last sentence is removed. (3) Terms and Conditions, Section 32, Indemnity — Section removed and replaced by Sections 18.0 and 19.0 in this Agreement. (4) Terms and Conditions, Section 34, Insurance — Section removed in and replaced by Section 12.0 of this Agreement. (5) Terms and Conditions, Section 43, No Warranty by City Against Infringements—Subsection (i)removed and replaced by Section 15 of this Agreement. (6) Terms and Conditions, Section 44,Non-Appropriation— Section removed and replaced by Section 8.0 of this Agreement. (7) Terms and Conditions, Section 51.1, Right to Audit — Section shall be amended to read,"The Vendor agrees that the representatives of the Office of the City Auditor or other authorized representatives of the City shall have the rights to audit, examine, or reproduce, any and all records of the Vendor related to the performance of this Agreement during the term of this Agreement if requested by the City. Audits shall not include access to Consultant's facilities." (8) Terms and Conditions, Section 59, Termination Without Cause — First sentence shall be amended to read, "The City shall have the right to terminate the Agreement, in whole or in part, without cause and for convenience any time upon ninety(90)calendar days' prior written notice. (9) Terms and Conditions, Section 65, Workforce - Section shall be removed due to services not being performed principally at the City's premises or on public rights-of-way. from B. Standard of Care. Consultant represents that it employs trained, experienced and competent persons to perform all of the services, responsibilities and duties specified herein and that such services,responsibilities and duties shall be performed in a manner according to generally accepted industry practices. 10 C. Time is of the Essence. The parties agree that, from time to time, certain unique transactions may have special requirements relative to timing and, accordingly, the parties will identify those transactions and exercise best efforts to accomplish those transactions within the stated timeframe. Other timing requirements will be met in a commercially reasonable manner. Where damage is caused to City due to Consultant's failure to perform in the special timing requirement circumstances,City may pursue any remedy available without waiver of any of City's additional legal rights or remedies. D. Binding Agreement. This Agreement shall extend to and be binding upon and inure to the benefit of the parties' respective heirs, executors, administrators, successors and assigns. E. Multiple Counterparts. This Agreement may be executed in multiple counterparts, any one of which shall be considered an original of this document; and all of which, when taken together, shall constitute one and the same instrument. [Signatures on the following page.] 11 IN WITNESS WHEREOF, City and Consultant have executed this Agreement on the dates indicated. Gallagher Be fit rvices,Inc. By: Printed me: Title: Date Signed: City ofand Rock, Texas By: 1% r Printed Name: ; Title: Q Date Signe For City,Attest: By: "4-.2 Ann Franklin, City Clerk For City,Approved as to Form: B y: fE �G�- tephanie L. Sandre, City Attorney 12 Exhibit"A" Request for Proposal, Proposal, Addenda 13 ROUND ROCK TEXAS PURCHASING DIVISION City of Round Rock, Texas Purchasing Division 221 East Main Street Round Rock, Texas 78664-5299 www.roundrocktexas.gov REQUEST FOR PROPOSAL EMPLOYEE BENEFITS CONSULTING SERVICES SOLICITATION NUMBER 26-004 JANUARY 2026 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 EMPLOYEE BENEFITS CONSULTING SERVICES PART GENERAL REQUIREMENTS 1. PURPOSE AND BACKGROUND: The City of Round Rock, hereinafter"the City," seeks proposals from firms experienced in employee health benefits consulting services. The Employee Benefits Consultant shall serve as a full-service advisor to the City of Round Rock, providing strategic, financial, actuarial, compliance, communication, wellness, and administrative support related to the City of Round Rock's employee and retiree benefits and wellness programs. Services shall be customized to meet the City's specific needs and strategic long-term objectives. The City of Round Rock currently has approximately 1,150 benefits-eligible employees and is self-funded for health, pharmacy, and dental benefits. The current self-funded health benefits include two different co-pay plans(PPO and EPO types), cover approximately 2,400 individuals, and include an on-site health clinic. The health clinic provides personal health and occupational health services. The City pays a high percentage of the employee's health insurance premium and provides subsidies for dependent coverage. The FY 2026 self- funded health insurance budget totals$24,785,000. In addition to health insurance, employees may enroll with dental, vision, EAP, disability, life insurance, accident, critical illness, hospital indemnity, and pre-paid legal/identity theft prevention benefits, and the City's wellness program. Retirement benefits are with the Texas Municipal Retirement System, and 457b Deferred Compensation benefits are with Nationwide Retirement. 2. SOLICITATION PACKET: This solicitation packet is comprised of the following: Description Index Part I —General Requirements Page(s) 2-4 Part II—Definitions, Standard Terms and Conditions, and Insurance Requirements Page 5 Part III —Supplemental Terms and Conditions Page(s)6-8 Part IV—Scope of Work Page(s) 9-11 Part V—Proposal Preparation Instructions and Evaluation Factors Page(s) 12-14 Attachment A- Proposal Submittal Form Separate Attachment Attachment B—Reference Sheet Separate Attachment Attachment C-Cost Proposal Sheet Separate Attachment Attachment D-2026 Employee Benefits Guide Separate Attachment Attachment E-2026 Retiree Benefits Guide Separate Attachment Attachment F- Insurance Instructions Separate Attachment 3. SCHEDULE OF EVENTS: It is the City's intention to follow the solicitation timeline below. EVENT DATE Solicitation released January 7 2026 Deadline for submission of questions January 19, 2026 @ 5:00 PM, CST City responses to questions or addendums Approximately January 21, 2026, 5:00 PM, CST Deadline for submission of responses Feb 10, 2026 @ 3:00 PM, CST Page 2 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 All questions regarding the solicitation shall be submitted through Bonfire in writing by 5:00 PM, CST on the due date noted above. A copy of all questions submitted and the City's response to the questions shall be posted on the City's webpage in the form of an addendum at: https://roundrocktexas.bonfirehub.com The City reserves the right to modify these dates. Notice of date change will be posted to the City's website: hftps://roundrocktexas.bonfirehub.com 4. SOLICITATION UPDATES: Respondents shall be responsible for monitoring the City's website at https://roundrocktexas.bonfirehub.com for any updates pertaining to the solicitation described herein. Various updates may include addendums, cancellations, notifications, and any other pertinent information necessary for the submission of a correct and accurate response. The City will not be held responsible for any further communication beyond updating the website. 5. RESPONSE DUE DATE: Appropriately submitted responses are due at or before 3:00 PM, on the due date noted in PART I, Section 3—Schedule of Events. The Offeror shall respond via the City's electronic bidding platform, Bonfire: https://roundrocktexas.bonfirehub.com A. This request for qualifications (RFQs)does not commit the City to contract for any supply or service. B. No paper or submittals outside of Bonfire will be accepted by the City. C. Responses cannot be altered or amended after digital opening. D. No response can be withdrawn after opening without written approval from the City for an acceptable reason. E. The City will not be bound by any oral statement or offer made contrary to the written specifications. F. Samples and/or copies shall be provided at the Respondent's expense and shall become the property of the City. G. Late responses will not be considered. 6. CERTIFICATE OF INTERESTED PARTIES: Section 2252.908 of the Texas Government Code requires the successful offeror to complete a Form 1295"Certificate of Interested Parties"that is signed for a contract award requiring council authorization. The"Certificate of Interested Parties"form must be completed on the Texas Ethics Commission website, printed, signed, and submitted to the City by the authorized agent of the Business Entity with acknowledgment that disclosure is made under oath and under penalty of perjury prior to final contract execution. Link to Texas Ethics Commission Webpage: https://www.ethics.state.tx.us/whatsnew/elf info form1295.htm 7. EX PARTE COMMUNICATION: Please note that to insure the proper and fair evaluation of an offer, the City of Round Rock prohibits ex parte communication (e.g., unsolicited) initiated by the Offeror to the City Official, Employee, City Consultant, or Evaluation Team member evaluating or considering the offers prior to the time an award decision has been confirmed. Communication between an Offeror and the City will be initiated by the appropriate City Official or Employee in order to obtain information or clarification needed to develop a proper and accurate evaluation of the offer. Ex parte communication may be grounds for disqualifying the offending Offeror from consideration of award in evaluation or any future bid. 8. OPPORTUNITY TO PROTEST: The Purchasing Manager for the City of Round Rock ("City"), in consultation with the City Attorney, shall have the authority to settle or resolve any dispute concerning the solicitation or award of a contract. The Purchasing Manager may solicit written responses to the protest from other interested parties. The aggrieved person must prepare his or her complaint in writing and send it by electronic mail to the City's Purchasing Department at protest( ),roundrocktexas.gov. In the event of a timely protest, the City shall not proceed further with the solicitation or award of a contract unless it is determined that the award must take place without delay, to protect the best interests of the City. The procedures for notifying the City of an alleged deficiency or filing a protest are listed below. If you fail to comply with any of these requirements, the Purchasing Office may dismiss your complaint or protest. A. Prior to Offer Due Date: If you are a prospective offeror for the award of a contract("Offeror') and you become aware of the facts regarding what you believe is a deficiency in the solicitation process before the Page 3 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 due date for receipt of offers in response to a solicitation ("Offers"), you must notify the City in writing of the alleged deficiency before that date, giving the City an opportunity to resolve the situation prior to the Offer due date. B. After Offer Due Date: If you submit an Offer to the City and you believe that there has been a deficiency in the solicitation process or the award, you have the opportunity to protest the solicitation process, or the recommended award as follows: i. You must file a written notice of your intent to protest within four(4)working days of the date that you know or should have known of the facts relating to the protest. If you do not file a written notice of intent within this time, you have waived all rights to protest the solicitation process or the award. ii. You must file your formal written protest within ten (10)working days of the date that you know or should have known of the facts relating to the protest unless you know of the facts before the Offer has been closed. If you know of the facts before those dates, you must notify the City as stated in section (A)above. iii. You must submit your protest in writing and must include the following information: a. your name, address, telephone number, and email address. b. the solicitation number. c. a specific identification of the statutory or regulatory provision that you are alleging has been violated. d. a detailed statement of the factual grounds for your protest, including copies of any relevant documents. e. a statement of any issues of law or fact that you contend must be resolved; and f. a statement of the argument and authority that you offer in support of your protest. iv. Your protest must be concise and presented logically and factually to help with the City's review. C. Receipt of Timely Protest: When the City receives a timely and complete written protest, the Purchasing Manager, with assistance from the City Attorney, shall make one of the following determinations: i. Determine that a violation of rules and statutes has occurred prior to the award of the contract and inform you and other interested parties of the determination. The City will prepare updated solicitation documents and will re-solicit. ii. Determine that no violation of rules or statutes has occurred and inform you and other interested parties of the decision by letter. The reasons for the determination will be presented in the letter. iii. Determine that a violation of rules and statutes has occurred after the award of the contract and inform you and other interested parties of the determination. However, the awarded contract will not be canceled. As needed, corrective actions may be taken with purchasing or any other pertinent City staff. iv. A determination will usually be made within fifteen (15) business days after receipt of the formal protest. v. Any written decisions by the Purchasing Manager shall be the final administrative action for the City. All documentation pertaining to a protest will be kept on file at the City and are subject to open records requests. Page 4 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 PART II DEFINITIONS, STANDARD TERMS AND CONDITIONS, AND INSURANCE REQUIREMENTS 1. DEFINITIONS, STANDARD TERMS AND CONDITIONS: By submitting a response to this solicitation, the Respondent agrees that the City's Definitions and Standard Terms and Conditions, in effect at the time of release of the solicitation, shall govern unless specifically amended otherwise in a separate agreement or on the face of a purchase order. These can be obtained from the City's website at: https://www.roundrocktexas.gov/city-departments/purchasing/. In addition, the Supplemental Terms and Conditions listed in Section III, shall also be enforced as part of the contract unless amended otherwise in a separate agreement. In the event of conflicting terms between the Standard Terms of Conditions/ Supplemental Terms and Conditions and the terms in the separate agreement, the terms in the separate agreement shall supersede. 2. INSURANCE: The Respondent shall meet or exceed all insurance requirements set forth in a separate agreement. Page 5 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 PART III SUPPLEMENTAL TERMS AND CONDITIONS 1. AGREEMENT TERM: The terms of the awarded agreement shall include but not be limited to the following: A. The term of the Agreement shall begin from date of award and shall remain in full force for sixty (60) months. B. Upon expiration of the contract term, the Contractor agrees to hold over under the terms and conditions of this agreement for such a period as is reasonably necessary to re-solicit and/or complete the project up to 120 days. 2. RESPONDENT QUALIFICATIONS: The City has established the following minimum qualifications. Respondents who do not meet the minimum qualifications will not be considered for award. The Respondent shall: A. Be firms, corporations, individuals, or partnerships normally engaged in providing Employee Benefits Consulting Services as specified herein and have adequate organization, facilities, equipment, financial capability, and personnel to ensure prompt and efficient service to the City. B. In order to confirm financial stability, the City may choose to review audited financial statements at any time throughout the RFQs evaluation process. Upon request, the Respondent shall provide two years audited financial statements, including any notes or supplemental schedules within 2 business days of the original request. C. The Respondent shall include in the proposal a list of all litigation the company or its principals have been involved in within the last three (3) years. D. Be domiciled in or have a home office inside the United States. Respondents domiciled outside the United States, or not having a home office inside the United States will not be included for consideration in this solicitation process. 3. SUBCONTRACTORS: Respondent shall not subcontract or otherwise engage subcontractors to perform required services. The City seeks to do business directly with a company experienced in human resources benefits consulting services. 4. SAFETY: The Gity Fe6erves the Fight to remove aRy employee fFGFn City propeFty foF violation of fedeFal, -A.P.d le-ea. health, safety and eAViFenmental �Jes and r ulati`.n Th spen,I 4 hall• aM/S-�f�+RaHG2S, �crc�vrT�s—�-rre•�Cc"Y"�„'eRrs�n�rr. A. EnSUFe that all empleyees eemply with all OGGHpational Safety and Health AdministFation (OSHA), State safety, and eRVOWFnental laws eFdinanees, Riles, and FegulatiORS in the peFfOffnanGe Of these SeNiGeS. B. Be held Fespensible feF the safety ef their employees and unsafe a6tS OF eORd*t'E)ns that PI-Y____ -j,+Fy G. Indemnify and he'd the Qty haFffliess ftem and aga nst all elaims, demands, suits, aetions, judgments, fines, penalties, and liability of eveFy kind arising frem the breaGh of the GORtFaisteF'S obligations un 5. WORKFORCE: Successful Respondent shall: A. Ensure Respondent's employees perform the services in a timely, professional, and efficient manner. B. Ensure Respondent's employees, while working on City property, wear a company uniform that clearly identifies them as the Respondent's employee. C. Employ all personnel for work in accordance with the requirements set forth by the United States Department of Labor. The City reserves the right to verify citizenship or right to work in the United States. 6. PRICE INCREASE: Contract prices for human resources benefits consulting services shall remain firm throughout the initial twelve (12) month term of the contract. A price increase to the agreement may be considered on the anniversary date of the Contract each year and shall be equal to the consumer price index Page 6 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 for that year, but at no time can the increase be greater than 10%for any single line item unless otherwise approved by the City. A. Consumer Price Index (CPI): Price adjustments will be made in accordance with the percentage change in the U.S. Department of Labor Consumer Price Index(CPI-U)for all Urban Consumers. The price adjustment rate will be determined by comparing the percentage difference between the CPI in effect for the base year six-month average (January through June OR July through December), and each (January through June OR July through December six month average)thereafter. The percentage difference between those two CPI issues will be the price adjustment rate. No retroactive contract price adjustments will be allowed. The Consumer Price Index (CPI) is found at the Bureau of Labor Statistics, Consumer Price Index website: http://www.bis.gov/cpi B. Procedure to Request Increase: i. Email the written price increase request to purchasing(aa-)roundrocktexas.gov with the rate detail comparison, a comprehensive calculation, and any supporting documentation to the designated City Contract Specialist a minimum of 45 days prior to the annual Contract anniversary date. The detailed written calculation will be verified and confirmed. All written requests for increases must include the City of Round Rock contract number, solicitation reference information and contact information for the authorized representative requesting the increase. ii. Upon receipt of the request, the City reserves the right to either accept the escalation and make change to the purchase order within 30 days of the request or negotiate with the Vendor or cancel the agreement or purchase order if an agreement cannot be reached on the value of the increase. 7. ACCEPTANCE/INSPECTION: Acceptance/Inspection should not take more than five(5)working days. The Contractor will be notified within the time frame if the services delivered are not in full compliance with the specifications. In the event the services are not performed to the satisfaction of the City the Contractor shall agree to reperform services to specification at no additional cost to the City. If any agreement or purchase order is cancelled for non-acceptance, the needed services may be purchased elsewhere. 8. PERFORMANCE REVIEW: The City reserves the right to review the awarded Contractor's performance anytime during the contract term. 9. ORDER QUANTITY: The quantities shown on the solicitation are estimates only. No guarantee of any minimum or maximum purchase is made or implied. The City will only order the services/goods needed to satisfy requirements within budgetary constraints, which may be more or less than indicated. 10. AWARD: The City reserves the right to enter into an Agreement or a Purchase Order with a single award, split award, primary and secondary award, non-award, or use any combination that best serves the interest and at the sole discretion of the City. Respondents to the solicitation will be notified when City staff recommendation of award has been made. The award announcement will be posted to the City's website at https://roundrocktexas.bonfirehub.com once City Council has approved the recommendation of award and the agreement has been executed. 11. POINT OF CONTACT/ DESIGNATED REPRESENTATIVE: A. Contractor's point of contact: In order to maintain consistent standards of quality work performed across the City, the City shall be provided with a designated and identified point of contact upon award of the contract to include contact information. The City's designated representative shall be notified by the Respondent immediately should the point of contact change. B. The City's designated representative: The City's designated representative shall be: Tyler Jarl Human Resources Manager Human Resources Department Phone: (512) 341-3143 E-mail: tiarl Pdroundrocktexas.gov C. Do not contact the individual listed above with questions or comments during the course of the solicitation. Page 7 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 12. INTERLOCAL PURCHASING AGREEMENTS: A. The City has entered into Interlocal Agreements with other Governmental agencies pursuant to the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code. B. The Contractor may offer the same price and terms and conditions to other eligible agencies that have an interlocal agreement with the City. C. The City does not accept any responsibility or liability for the purchases by other government agencies through an interlocal cooperative agreement. Page 8 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 PART IV SCOPE OF WORK 1. PURPOSE AND BACKGROUND: The City of Round Rock, hereinafter"the City," seeks proposals from firms experienced in employee benefits consulting services. The Employee Benefits Consultant shall serve as a full-service advisor to the City of Round Rock, providing strategic, financial, actuarial, compliance, communication,wellness, and administrative support related to the City of Round Rock's employee and retiree benefits and wellness programs. Services must be customized to meet the City's specific needs and strategic long-term objectives. 2. FINANCIAL, BUDGET,AND ACTUARIAL SERVICES: The Consultant shall provide comprehensive financial and actuarial support, including but not limited to: A. Reforecasting the current plan year budget based on finalized enrollment. B. Analyzing and recommending active employee and retiree contribution strategies. C. Assisting with the development of annual strategic benefit plan objectives and initiatives. D. Negotiating renewals for all benefit-related products and services to secure cost-effective terms aligned with budget projections. E. Providing monthly financial reporting for medical, dental, and prescription drug claims for active employees and retirees. F. Developing actuarial projections using proprietary modeling tools to forecast future costs and assess the financial impact of potential plan design changes. G. Monitoring network, clinic, and vendor performance, including utilization, discounts, and overall plan efficiency. H. Advising on cost management strategies and programs to improve financial sustainability. 3. STRATEGIC PLANNING, REPORTING,AND ANALYSIS: The Consultant shall support data-driven decision-making through the following services: A. Conducting quarterly (or more frequent, as requested) strategy and review meetings to evaluate actual costs versus budget, utilization trends, and improvement opportunities. B. Performing a comprehensive audit and review of existing benefit programs to identify strengths, gaps, and improvement opportunities. C. Providing ongoing budget analysis and monthly variance monitoring to proactively identify emerging trends. D. Translating vendor reports into concise, actionable summaries, including claim detail and key performance indicators. E. Conducting plan efficiency and utilization analyses to assess financial and clinical performance. F. Performing benchmarking analyses using national and custom data sources to evaluate CORR's competitive positioning. 4. PLAN DESIGN AND VENDOR MANAGEMENT: The Consultant shall assist with benefit plan design and vendor oversight, including: A. Evaluating and modeling plan design alternatives and selection patterns. B. Conducting internal underwriting analyses to support data-driven vendor negotiations. C. Evaluating market alternatives and supporting the development and administration of Requests for Proposal (RFPs), as applicable. D. Supporting and participating in vendor negotiations, including contract term reviews. E. Managing benefit renewals and presenting renewal summaries and recommendations. 5. COMMUNICATIONS AND EMPLOYEE ENGAGEMENT A. The Consultant shall assist CORR with benefit-related communications, including: B. Developing strategies and communications for annual health screenings, as applicable. Page 9 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 C. Assisting with the development and editing of benefit guides, newsletters, and wellness communications. D. Supporting Open Enrollment communications for: i. Active employees ii. New hires iii. Retirees E. Creating targeted, on-demand communications (e.g., letters and emails)to address administrative or program needs. 6. WELLNESS AND HEALTH MANAGEMENT SERVICES: The Consultant shall support wellness and health improvement initiatives, including: A. Developing and executing a comprehensive wellness program implementation plan B. Advising on the selection, contracting, and management of wellness vendors C. Designing incentive strategies tied to program participation and medical/pharmacy budget outcomes D. Reviewing contracts and managing annual on-site health screenings E. Conducting year-over-year cohort analyses of health risk factors and program outcomes. 7. OPTIONAL-PHARMACY BENEFITS CONSULTING: The City currently utilizes external pharmacy-related services. During the term of this agreement, CORR may elect to modify its approach to pharmacy consulting. The Consultant shall be prepared to provide pharmacy consulting services, as authorized by CORR, in accordance with the optional services scope. A respondent's decision not to propose on this optional service shall not impact the evaluation or consideration of the respondent's proposal. These services may include, but not be limited to: A. Pharmacy Financial and Contract Analysis B. Pharmacy strategy and market evaluation C. Pharmacy reporting and education Pharmacy consulting services shall be provided only if authorized by City staff and may be scoped, scheduled, or priced separately from the core health benefits consulting services. 8. COMPLIANCE AND REGULATORY SUPPORT: The Consultant shall provide ongoing compliance guidance, including: A. Reviewing benefit-related contracts for accuracy, compliance, and completeness. B. Advising on legislative and regulatory changes impacting employee benefit plans. C. Providing guidance and strategic planning related to the compliance with all employee benefit plans laws and regulations. D. Delivering written compliance alerts and updates on a monthly or as-needed basis. E. Offering access to compliance resources, including webinars, alerts, and training on regulatory topics such as HIPAA and IRS requirements 9. ADMINISTRATIVE AND BENCHMARKING SUPPORT: The Consultant shall assist with administrative and benchmarking activities, including: A. Gathering and analyzing industry benchmarking data related to benefit offerings, plan designs, enrollment, and financial performance. B. Comparing the City's benefit programs against peer organizations and industry standards. C. Providing ongoing advisory support to Human Resources and benefits staff as needed. 10. EDUCATION AND TRAINING: The Consultant shall provide education and training services, including: A. Conducting customized educational sessions for City staff on benefit trends, plan performance, and regulatory changes, Page 10 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 B. Providing access to seminars, webinars, and archived training materials on relevant benefits topics. C. Supporting City staff with ongoing education to ensure informed decision-making and compliance_ 11. CITY RESPONSIBILITIES: The City will: A. Coordinate all scheduling with the Contractor B. Provide all relevant data to Contractor for report development. Page I I of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 PART V PROPOSAL PREPARATION INSTRUCTIONS AND EVALUATION FACTORS 1. PROPOSAL ACCEPTANCE PERIOD: All proposals are valid for a period of one hundred and twenty (120) calendar days subsequent to the RFQs closing date unless a longer acceptance period is offered in the proposal. 2. PROPOSAL RESPONSE: Responses shall be clear and concise while appropriately responding to the evaluation criteria listed below in Section 3. In order to do business with the City of Round Rock you must be registered with the City's Vendor Database. To register, go to: https://roundrocktxvendors.munisselfservice.com/Vendors/default.aspx Proposal Submittal Instructions: The Respondent shall include all of the following documents in their response- • Attachment A- Proposal Submittal Form o Attachment B- Reference Sheet o Attachment C-Cost Proposal Sheet o Acknowledged Addenda (if applicable) o Company Information-which gives in brief, concise terms, a summation of the proposal. Include the following- • Business Organization: State full name and address of your organization and identify parent company if you are a subsidiary. Specify the branch office or other subordinate element which will perform, or assist in performing, work herein. Indicate whether you operate as a partnership, corporation, or individual. Include the State in which incorporated or licensed to operate. o Project Management Structure: Provide a general explanation and chart which specifies project leadership and reporting responsibilities; and interface the team with City project management and team personnel. If use of subcontractors is proposed, identify their placement in the primary management structure, and provide internal management description for each subcontractor. o Authorized Negotiator: Include the name, email address, and telephone number of the person(s) in your organization authorized to negotiate Contract terms and render binding decisions on Contract matters. o Segment requirements listed below. o A statement of your compliance with all applicable rules and regulations of Federal, State and Local governing entities. o List of Exceptions (if any)-Be advised that exceptions to any portion of the Solicitation may jeopardize acceptance of the Proposal by the City. Exceptions to this solicitation if any, shall be submitted on a separate sheet labeled "Exceptions"with the Respondent's proposal. 3. EVALUATION CRITERIA: A. Segment 1 —Respondent's Solution, Approach, &Timeline i. System Concept and Solution: Define in detail your understanding of the requirement presented in the Scope of Work of this request for qualifications and your system solution. Provide all details as required in the Scope of Work and any additional information you deem necessary to evaluate your proposal. ii. Program Approach and Timeline: Describe your technical plan for accomplishing required work and the estimated timeline for a project. Include such time-related displays, graphs, and charts as necessary to show tasks, sub-tasks, milestones, and decision points related to the Scope of Work and your plan for accomplishment. Specifically indicate: a) Understanding of the City's current benefits environment and key challenges b) Proposed consulting model and service delivery structure c) How the proposed solution aligns with the Scope of Work and supports both short-term and long- term objectives Page 12 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 d) Value-added services, tools, or methodologies relevant to employee benefits consulting. e) Work Plan by Functional Area-A description of the proposed work program organized by major service areas (e.g., financial and actuarial support, plan design, vendor management, communications, wellness, compliance, and optional pharmacy consulting). Describe how services will be delivered throughout the contract term. f) Key Activities and Methodologies-An explanation of the tools, analytical methods, and best practices that will be used to perform required services, including budgeting, actuarial modeling, vendor negotiations, benchmarking, utilization analysis, and reporting. g) Timeline and Service Cadence-A proposed timeline or service schedule showing key activities, recurring services (e.g., monthly reporting, quarterly strategy meetings, annual renewals), milestones, and decision points. Visual timelines, tables, or charts are encouraged. h) Deliverables and Reporting- Identification of written reports, presentations, dashboards, or other deliverables that will be provided during the contract term, including the frequency and purpose of each deliverable. i) Flexibility and Responsiveness-A description of how the respondent will adapt its approach to changes in program needs, regulatory requirements, vendor arrangements, or benefit delivery models during the term of the contract. j) Optional Services Acknowledgment(if applicable)- If proposing optional services (e.g., pharmacy consulting), respondents should describe how those services would be integrated into the overall consulting approach if authorized by the City. Proposals for optional services will be considered separately and are not required for responsiveness. B. Segment 2—Company Work Experience and Personnel i. Prior Experience: State the number of years the Respondent company has been providing the services requested in the solicitation. Describe only relevant municipal, governmental, corporate, and individual experience for the company and personnel who will be actively engaged in the project. Do not include corporate experience unless personnel assigned to this project actively participated. Do not include experience prior to 2014. Supply the project title, year, and reference name, title, present address, and phone number of principal persons for whom prior projects were accomplished. ii. Contractors' past performance with the City may be evaluated. iii. Personnel: Include names, qualifications, and resumes of all personnel who will be assigned to the account. State the primary work assigned to each person and the percentage of time each person will devote to this work. Identify key personnel by name and title. C. Segment 3—Cost Proposal: Information described in the following subsections is required from each Proposer. Your method of costing may or may not be used but should be described. A firm fixed price or not-to-exceed Contract is contemplated. i. The Proposer shall submit pricing in the form of a monthly flat fee for consulting services. The monthly fee shall include all labor, materials, administrative costs, travel, and any other expenses required to fully perform the services outlined in the Scope of Work. 1) The City does not anticipate or authorize additional line items, pass-through costs, or miscellaneous fees beyond the proposed monthly flat fee. Invoices shall reflect only the approved monthly fee unless otherwise authorized in writing by the City. 2) Proposers may describe their pricing methodology; however, the proposed pricing shall be presented as a single, all-inclusive monthly amount. ii. OPTIONAL Pharmacy Benefits Consulting-Contractor shall provide pricing schedule if applicable. A respondent's decision not to propose on this optional service shall not impact the evaluation or consideration of the respondent's proposal. 4. EVALUATION SCORING: The intent of the City is to award to one Respondent in accordance with the evaluation criteria below. The purpose of this evaluation criteria is to determine which proposal best meets the requirements and provides the best overall value to the Citv. A. Evaluation Criteria: Weights: Page 13 of 14 City of Round Rock Employee Benefits Consulting Services RFP No. 25-004 Commodity Code: 918-40 January 2026 • Respondent's Solution, Approach, &Timeline (Segment 1) 40 pts • Company Work Experience and Personnel (Segment 2) 30 pts • Cost 30 Pts Maximum Weight: 100 pts B. An evaluation committee will be established to evaluate the proposal. The committee will include employees of the City and may include other impartial individuals who are not City employees. The evaluation committee will determine if discussions and/or Best and Final Offers (BAFO)are necessary. Award of a contract may be made without discussions or BAFO, if in the best interest of the City. The evaluation committee may determine that discussions are necessary to clarify or verify a written proposal response. The City may, at its discretion, elect to have respondents provide oral presentations of their proposal. The City reserves the right to rescore an offer based on provided demonstrations. A request for a BAFO is at the sole discretion of the City and will be requested in writing. The evaluation committee will evaluate the finalists and make a recommendation for award. C. The City reserves the right to reject any or all proposals submitted, or to award to the respondent who in the City's opinion, offers the best value to the City. The City also reserves the right to cancel the RFQs process and pursue alternate methods for providing the requirements. D. The City reserves the right to conduct studies and other investigations as necessary to evaluate any proposal. E. The City reserves the right to waive any minor technicality, irregularities, or informalities noted in the submission process. Submission of proposal confers no legal rights upon any Respondent. F. The City reserves the right to request further documentation or information and to discuss proposal response with any Respondent in order to answer questions or to clarify any aspects of the proposal. G. The City may develop a "short list" of qualified proposal and may determine that the Respondent(s) should submit a Best and Final Offer(BAFO). Each "short listed" Respondent will be given a reasonable opportunity for discussion and revision of their proposal. 5. AGREEMENT NEGOTIATIONS AND AWARD PROCESS: A. A proposal presented in response to this RFQs is subject to negotiation concerning any issues deemed relevant by the City. The City reserves the right to negotiate any issue with any party. Any unsolicited communication by the Respondent to a City official, undesignated employee, or an evaluation team member evaluating or considering the offers may be grounds for disqualifying the offending Offeror from consideration of award. B. Submission of proposal indicates the Respondent's acceptance of the evaluation process and recognition that the City may make subjective judgments in evaluating the proposal to determine the best value for the City. C. If negotiations are successful, the City and Respondent may enter into an agreement. If negotiations are unsuccessful, the City may formally end negotiations with that Respondent. D. The City also reserves the right to reject any or all submittals, or to accept any submittal deemed most advantageous, or to waive any irregularities or informalities in the submittal received. E. An independent signed authorized Contract will be sent to the successful Respondent(s). Execution of a City of Round Rock contract is required prior to starting work and processing any payments to the Contractor. 6. POST AWARD MEETING: The City and the Respondent may schedule a post award meeting to discuss, but not be limited to the following: A. The method to provide a smooth and orderly transition of services performed from the current Contractor. B. Provide City contact(s) information for implementation of the Agreement. C. Identify specific milestones, goals, and strategies to meet objectives. Page 14 of 14 i February 10, 2026 City of Round Rock, Texas Employee Benefits Consulting Services Gallagher's Response to Request for Proposal Solicitation Number 25-004 Natalie Haskett I Benefits Consultant Betty Gwinn I Sr. Area Vice President, Public Sector Director CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. Cover Letter City of Round Rock, Texas Purchasing Department 221 East Main Street Round Rock, Texas 78664-5299 February 10, 2026 Thank you for the opportunity to submit a Statement of Qualifications to provide Employee Benefits Broker for City of Round Rock, Texas(hereafter"the City')on behalf of Gallagher Benefit Services, Inc. (Gallagher). We are confident you will find that Gallagher has the experience, integrity, resources,and innovative people necessary to meet your benefit needs as addressed in our Statement of Qualifications. As business associates for the Public Sector, Gallagher acknowledges that a quality community is driven by your mission, budget, and staff. As one of the largest insurance brokerage firms in the country, our team brings competitive resources to your organization where you need them. We serve hundreds of clients throughout Texas and tens of thousands nationwide, giving us the depth of experience necessary to be a proactive and effective partner for the City. Our team is committed to understanding and addressing your unique challenges while delivering tailored solutions for your employee benefits, program administration, and enrollment needs. While our resources and experience give us a strategic perspective to help your organization best attract. retain.. and engage employees, our I in the trenches with you" mentality empowers us to deliver unique.. cost-conscious solutions for your health insurance, HR consulting, and other insurance needs. We offer targeted consultation in the following: • Unmatched Public Sector experience • Dedicated local presence • Strategic industry and employer population benchmarking • Cost containment strategies and design in conjunction with proven results Proprietary reporting, analytics, and benchmarking capabilities • Innovative wellbeing, employee engagement, and communication solutions As your strategic partner. Gallagher will function as an extension of your human resources department and help you develop long-term healthcare and cost savings strategies. We hope for the opportunity to support you through our work. Natalie Haskett Betty Gwinn Benefits Consultant Sr. Area Vice President Health & Benefits Consulting Public Sector Director Gallagher Benefit Services, Inc. Gallagher Benefit Services, Inc. 9442 Capital of Texas Highway N, 9442 Capital of Texas Highway N. Suite 950 Suite 950 Austin. TX 78759 Austin, TX 78759 0,,2026 Arthur J.Gallagher&Co. agher Way.Since 1927. .ri � fry a { Table of Contents CoverLetter.....................................................................................................................................................................................2 CompanyInformation......................................................................................................................................................................2 SegmentRequirements...................................................................................................................................................................4 VendorManagement..................................................................................................................................................................21 Wellness .....................................................................................................................................................................................20 Compliance.................................................................................................................................................................................20 Statementof Compliance..............................................................................................................................................................38 Listof Exceptions..........................................................................................................................................................................39 CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. 461 Gallagher Company Information • Business Organization: State the full name and address of your organization and identify parent company if you are the subsidiary. Specify the branch office or other subordinate element which will perform, assist in performing, work herein. Indicate whether you operate as a partnership, corporation or individual. Include the State in which incorporated or licensed to operate. The legal entity name of our organization is Gallagher Benefit Services, Inc., "Gallagher". Founded in 1927, Arthur J. Gallagher&Co. (AJG) is an international corporation domiciled in Illinois, incorporated in Delaware, and publicly traded on the NYSE under the trade symbol AJG. AJG started as a single office in Chicago and has grown to a publicly traded global organization with more than $11.3 billion in adjusted revenues. 970+offices globally, and over 56.000 team members with service capabilities in 130-plus countries. Gallagher's history is a compelling story of the insurance business, to learn more visit aiq.com/about-us/. The City's local servicing branch is located at 9442 Capital of Texas Highway N, Suite 950,Austin, Texas 78759 and your servicing team is licensed in the state of Texas. • Project Management Structure: Provide a general explanation and chart which specifies project leadership and reporting responsibilities; and interface the team with City project management and team personnel. If use of subcontractors is proposed, identify their placement in the primary management structure, provide internal management structure, and provide internal management description of each subcontractor. Gallagher is dedicated to meeting the City's needs. If our firm is selected, you can expect a highly skilled and dedicated team to be assigned to your account. Your team will consist of professionals with expertise in various areas relevant to your project. The typical team structure of a client is comprised of these key roles: • Lead Consultant with dedicated areas of focus to provide comprehensive strategic direction. • Account Executive who oversees all client deliverables and vendor performance. Client Manager who plays a crucial role in day-to-day plan management. They will work closely with the City's Project Manager to execute strategies and participate in client-facing strategy and renewal meetings. We believe in the power of teamwork. In urgent situations, all Gallagher employees are ready to support each other until the issue is resolved.With a vast network of offices across the nation,we have access to regional support and can collaborate with them if necessary. Our multi-tiered team structure provides clear reporting lines and streamlined communication. A dedicated primary contact will manage day-to-day needs, monitor emerging issues, and proactively address potential concerns. Once an issue is identified, your Gallagher team will collaborate to prevent and resolve problems. This primary contact. along with a designated backup, will be formally introduced to your organization at the time of agreement-ensuring we assign the right person to fit the City's needs. We have full confidence in your service team's ability to handle tasks related to your account efficiently. Your Gallagher service team will regularly touch base with you to discuss open items and address any identified issues or challenges. We understand that larger concerns or issues may arise spontaneously that require immediate attention-we are prepared to provide the necessary support and resources to address these urgent matters. 2 1©2026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. Gallagher Sponsor1014- James Wright 1#4 Executive Core Team Subject Matt er Experts ., Andrew ' r 11 PP— L-�q Carol Colley coosuftnt .1 josh Parish1 Our comprehensive account management approach enables our service team to extend beyond routine program administration and vendor oversight. Team members are trained to take a holistic view, proactively identifying strategic solutions. This approach allows us to effectively manage client needs across multiple lines of coverage and program functions. You can trust that Gallagher is committed to providing comprehensive and proactive support to meet your organization's needs. • Authorized Negotiator: Include the name, email address, and telephone number of the person(s) in your organization authorized to negotiate Contract terms and render binding decisions on Contract matters. Authorized Negotiator: James Wright, Executive Sponsor ` Email:james_wright@ajg.com Telephone Number: 972.663.6128 3 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. Gallagher Segment Requirements Segment 1 - Respondent's Solution, Approach, and Timeline i. System Concept and Solution: Define in detail your understanding of the requirement presented in the Scope of Work of this request for qualifications and your system solution. Provide all details as required in the Scope of Work and any additional information you deem necessary to evaluate your proposal. Gallagher agrees to the Scope of Work provided by the City in the RFP. The City's ask is standard, and we ensure that our financial, actuarial, and consultative resources will be utilized to elevate current state benefits and identify future state opportunities.We will go into further detail throughout the RFP but have provided the following outline of the requested services along with confirmation that these items are in scope of Gallagher and our team. Requested . .- . 1. PURPOSE AND BACKGROUND:The City of Round Rock, hereinafter"the City"seeks proposals from firms experienced in employee benefits consulting services. The Employee Benefits Consultant shall serve as a full-service advisor to the City of Round Rock, providing strategic, financial, actuarial, compliance, communication, wellness, and administrative support related to the City of Round Rock's employee and retirement benefits and wellness programs. Services must be customized to meet the City's specific needs and strategic long-term objectives. 2. FINANCIAL, BUDGET,AND ACTUARIAL SERVICES: The Consultant shall provide comprehensive financial and actuarial support, including but not limited to: x A. Reforecasting the current plan year budget based on finalized enrollment. x B. Analyzing and recommending active employee and retiree contribution strategies. x C. Assisting with the development of annual strategic benefit plan objectives and initiatives. x D. Negotiating renewals for all benefit-related products and services to secure cost-effective terms aligned with budget projections. x E. Providing monthly financial reporting for medical, dental, and prescription drug claims for active employees and retirees. x F. Developing actuarial projections using proprietary modeling tools to forecast future costs and x assess the financial impact of potential plan design changes. G. Monitoring network, clinic, and vendor performance, including utilization,discounts, and overall plan efficiency. x H. Advising on cost management strategies and programs to improve financial sustainability. x 3.STRATEGIC PLANNING, REPORTING,AND ANALYSIS: The Consultant shall support data-driven decision-making through the following services x 4 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. Gallagher A. Conducting quarterly(or more frequent, as requested)strategy and review meetings to evaluate actual costs versus budget, utilization trends, and improvement opportunities. B. Performing a comprehensive audit and review of existing benefit programs to identify strengths, gaps, and improvement opportunities. C. Providing ongoing budget analysis and monthly variance monitoring to proactively identify emerging trends. D. Translating vendor reports into concise,actionable summaries, including claim detail and key performance indicators. E. Conducting plan efficiency and utilization analyses to assess financial and clinical performance. x F. Performing benchmarking analyses using national and custom data sources to evaluate CORR's x competitive positioning. 4. PLAN DESIGN AND VENDOR MANAGEMENT: The Consultant shall assist with benefit plan design and vendor oversight. including: X A. Evaluating and modeling plan design alternatives and selection patterns. B. Conducting internal underwriting analyses to support data-driven vendor negotiations. X C. Evaluating market alternatives and supporting the development and administration of Request for Proposals(RFPs), as applicable. x D. Supporting and participating in vendor negotiations, including contract term reviews. x E. Managing benefit renewals and communications for annual health screenings,as applicable x 5.COMMUNICATIONS AND EMPLOYEE ENGAGEMENT x A. The Consultant shall assist CORR with benefit-related communications, including: x B. Developing strategies and communications for annual health screenings, as applicable. x C. Assisting with the development and editing of benefit guides, newsletters, and wellness X communications. D. Supporting Open Enrollment communications for: i.Active employees X ii. New hires iii. Retirees E. Creating targeted, on-demand communications(e.g., letters and emails)to address administrative or program needs x 6.WELLNESS AND HEALTH MANAGEMENT SERVICES:The Consultant shall support wellness and X health improvement initiatives. including A. Developing and executing a comprehensive wellness program implementation plan x B. Advising on the selection, contracting, and management of wellness vendors x 5 1©2026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. 4tx_) Gallagher C. Designing incentive strategies tied to program participation and medical/pharmacy budget outcomes D. Reviewing contracts and managing annual on-site health screenings 1 E. Conducting year-over-year cohort analyses of health risk factors and program outcomes. x 7.OPTIONAL-PHARMACY BENEFITS CONSULTING: The City currently utilizes external pharmacy- related services. During the term of this agreement, CORR may elect to modify its approach to pharmacy consulting. The Consultant shall be prepared to provide pharmacy consulting services. as authorized by CORR, in accordance with the optional services scope.A respondent's decision not to propose on this optional service shall not impact the evaluation or consideration of the respondent's proposal. These services may include, but not be limited to: A. Pharmacy Financial and Contract Analysis x B. Pharmacy strategy and education x C. Pharmacy reporting and education x Pharmacy consulting services shall be provided only if authorized by City staff and may be scoped, scheduled, or priced separately from the core health benefits consulting services. F. 8. COMPLIANCE AND REGULATORY SUPPORT: The Consultant shall provide ongoing compliance guidance, including: X A. Reviewing benefit-related contracts for accuracy, compliance, and completeness. x B. Advising on legislative and regulatory changes impacting employee benefits. x C. Providing guidance and strategic planning related to the compliance with all employee benefit plans laws and regulations. x D. Delivering written compliance alerts and updates on a monthly or as-needed basis. x E. Offering access to compliance resources, including webinars, alerts, and training on regulatory topics such as HIPAA and IRS requirements. x 9.ADMINISTRATIVE AND BENCHMARKING SUPPORT:The Consultant shall assist with administrative and benchmarking activities, including: x A. Gathering and analyzing industry benchmarking data related to benefit offerings, plan designs, enrollment, and financial performance. x B. Comparing the City's benefit programs against peer organizations and industry standards x C. Providing ongoing advisory support to Human Resources and benefits staff as needed. x 10. EDUCATION AND TRAINING:The Consultant shall provide education and training services, including: x A. Conducting customized educational sessions for City staff on benefit trends, plan performance, and regulatory changes, x B. Providing access to seminars,webinars, and archived training materials on relevant benefits topics. x 6 1 @2026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. 4tj_) Gallagher C. Supporting City staff with ongoing education to ensure informed decision-making and compliance. I 11.CITY RESPONSIBILITIES:The City will: A. Coordinate all scheduling with the Contractor B. Provide all relevant data to Contractor for report development Please note:administration cost for certain products will be determined based on the awarded vendor. 7 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. G—) Gallagher ii. Program Approach and Timeline: Describe your technical plan fo, accomplishing required work and the estimated timeline for a project. Include such time-related displays, graphs, and charts as necessary to show task, sub-tasks, milestones and decision points related to the Scope of Work and your plan for accomplishment. While every entity is unique and the chosen approach may vary, Gallagher begins the process by outlining the steps that will take place over specific periods of time, producing measured and effective results. Your service team will guide the City through the process with care and precision. The following is an outline of this process. To support the City early on. we will focus on two things: 1. Managing immediate needs and concerns • Capturing Utilization Data and formatting into actionable content • Reviewing key financials—IE, are premium rates properly fixed? • Preparing for key RFPs: ASO, PBM, and other identified needs • Present key benchmarking data to the City to help position and strategize benefit and compensation against competitors (both local and across the State). • 2. Establishing a foundation for future growth and innovation while reviewing all existing programs: • Identify and define current benefits philosophy 0 Compliance Audit • Dissect employee ee po ulation through our People Insights • Conduct a Wellness Inventory report and our Workforce Evaluation. These studies Assessment of current and future Point Solutions include analysis of Social Determinants of Health and 0 Set-up or get connected with Data Warehousing other factors to help identify various employee Develop multi-year Strategy challenges, needs. and opportunities Develop multi-year calendar(s)to account for • Public Entity Specific Benchmarking service, communication, procurement, and core • Perform Forensic Contract Reviews on existing LoCs strategic goals • Review budget methodology and as needed, make recommendations regarding reserves or budgeted rates • Review service, outcomes, and actions to date to ensure that the City has been and continues to be properly served across all domains that we support. • Present recommendations and collaborate with the City to identify and prioritize initiatives • Provide case studies and financial analysis regarding potential moves • Discuss upcoming opportunities. changes, challenges, innovation. and things that we see going on in the marketplace, _ legislative landscape, and the performance of the City's plans • Establish framework for evaluating programs and actions IE, what is the ROI or VOI of various point solutions? Did changes in plan designs result in migrations or desired outcomes? How has employee perception of benefits shifted? • Evaluate other key areas for service, support: or solutions: Mental Health, Leave • Determine and begin acting on identified timeline for program RFPs, emphasizing forensic contract review and other contract enhancements • Evaluate service and outcomes • Review goals and objectives:what has worked, what has not worked,what new opportunities or needs can we address •• 0 By this point the actions we take with you will be measured by their alignment with your benefits philosophy and in relation to the strategic initiatives we have already undertaken and implemented. We will also have implemented our feedback processes both with you and your employees to ensure that the actions we are taking support your team and support the overall wellbeing of your employees. We believe we can do a lot to support you. and we believe in exploring new opportunities and ideas, however, we want to do everything in a measured way that shows results 8 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. ' ) Gallagher Specifically indicate: a) Understanding of the City's current benefits environment and key challenges Gallagher has extensive experience working with public sector entities, including government agencies, municipalities, and educational institutions.We understand the unique challenges and requirements of the public sector and have tailored solutions to meet their specific needs.With over 3,000+public sector clients, Gallagher built a Public Sector and K-12 Education Practice serving those who support the public good by offering benefits management and support states, counties, cities,state government municipalities and pooling organizations. In today's rapidly evolving business landscape, clients face a multitude of complex issues and challenges that require careful consideration and strategic planning. Clients must navigate a wide range of obstacles to achieve their goals and maintain a competitive edge. These challenges can vary across industries and organizations, but they often revolve around key areas such as attracting and retaining talent,cost management, pharmacy spend,and mental health. Attracting and Retaining Talent Recent studies suggest that the majority of the workforce is minimally engaged in their work. In many settings, close to 50%of the workforce is actively seeking other employment opportunities. By fostering effective communication channels, employers can not only enhance employee engagement but also ensure that their workforce remains informed and knowledgeable about their benefits and compensation.This consistent and frequent communication demonstrates a genuine investment in employees, reinforcing their connection with the organization. Cost Management As healthcare costs continue to rise, employers are tasked with managing expenses related to their benefit plans. Our strategy involves addressing both fixed and claims costs. To counteract increases in stop loss pricing,we employ benchmarking and actuarial analysis to determine appropriate stop loss levels and pricing.We've partnered with national carriers to negotiate favorable contract terms, such as no new laser clauses and lower-than-average renewal caps for ongoing protection. By leveraging data from various warehouse partners,we provide analytic insights into the root causes of claim costs, converting these insights into actionable items and offering point solutions to manage costs and influence employee behaviors. Initiatives like"Go to Doctor"campaigns and plan design alternatives help manage claim costs from the first year onward. From exploring stop loss captives to localizing care at on-site clinics, we offer a holistic approach to cost containment and enhancing the employee experience. Pharmacy Spend Pharmacy costs continue to be one of the fastest growing components of an employer's benefits spend, in some cases exceeding 50% of total claims. Increases in the number of available specialty medications and utilization of these drugs is the number one cost driver of this trend. In fact,for many of our clients, Specialty drug utilization is incurred by less than 2%of members but the spend accounts for —50%of prescription spend. In addition to Specialty drug use we are seeing a large increase in GLP-1 utilization which cost$10k-$12k annually per utilizer.We believe active monitoring will be critical going forward, as pharmacy costs continue to grow at a double-digit pace. Mental Health Employers are wrestling with a significant challenge related to emotional wellbeing. The importance of mental health in the workplace has never been more pronounced,with 65%of employers ranking emotional wellbeing as the most highly valued benefit under consideration for their plans. How We Assist We are in a strong position to assist the City in creating a strategic action plan to address your challenges. Our team of Subject Matter Experts, specializing in areas such as Wellbeing,Analytics, Pharmacy, and HR Consulting, actively develops comprehensive and integrated strategies to tackle ongoing challenges as they arise. 9 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. 46-) Gallagher b) Proposed consulting model and service delivery structure Gallagher understands that benefits are a key part of how your employees protect their health and their financial stability. Benefits are a key part of how you show appreciation to employees for the work that they do for you and in the service of your mission. That is why Gallagher prides itself in the various key resources offered to meet the needs of different entities. In our experience supporting the Texas Public Sector, there are a lot of key resources. We have found that there are a few areas where our resources really shine: • Intentional blending of internal resources and vendor partnerships • RFP process designed to maximize value while accounting for customer service • Significant data reporting and analysis capabilities Many firms keep services like flex account management, COBRA, billing reconciliation; common remitter, and even benefit platforms in- house. At Gallagher, over the years we have learned that oftentimes the best version of these services is oftentimes offered on a standalone basis. What does best mean? It can mean functionality, administrative ease, support for employees or the employer. It can also mean,whatever you tell us it means to you. While our experience with the vendors and other organizations is a key part of the process, our experience with you, the client, will also help inform you of the programs and structure that we develop for you. When going to RFP for benefit programs, our experience has shown that our marketplace leverage and insurer agnostic position results in better savings. We have provided a case study below from work in the past year. When our team drives the RFP process.we consistently achieve the following results compared to other organizations: • Outcome 1. Better benefits for the same price. • Outcome 2. Equivalent benefits for a lower price. • Outcome 3. Enhanced benefits for a lower cost. Lastly,we have significant data reporting and analysis capabilities. These tools are relevant to you because of how they help us monitor the performance of your programs and find opportunities for future investments. Sometimes a dollar can be more than a dollar. If an employee gets a benefit that they don't value, it simply won't be worth that much. Sometimes a dollar can be worth more than a dollar. When an employee gets a benefit that they really value. We use our tools and resources to help you and your employees find the dollars that are worth more. We help you communicate your benefits and enrollment in a way that makes each dollar worth more. As you move forward, please consider the following case study: Industry: Texas School District I Size: 1,400 employees Objective Strategic Approach Results Delivered Establish marketing principles for Gallagher worked with internal For more than 12 different lines of voluntary benefit programs that voluntary benefit and ancillary coverage Gallagher achieved are just as robust as those used benefit experts to craft a Request either cost savings with no for medical coverage. for Proposal (RFP) that would reduction in benefit value. generate apples to apples enhanced benefits with no comparisons of different lines of increase in cost, or both. For coverage. example, employees now have 14% lower dental, 18% lower vision, and 20% lower disability costs. 10 1(D2026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. '6� Gallagher c) How the proposed solution aligns with the Scope of Work and supports both short and long term objectives We apply our financial, actuarial, and consultative resources to evaluate your current benefits programs and identify future state opportunities. Our holistic approach considers both organizational objectives and employee needs to enhance benefit offerings and optimize the value of your benefits investment. We focus on long-and short-term strategy, designing and managing programs that address current demands and competitiveness while incorporating cost-containment measures for the years ahead.Working collaboratively,we develop a multi-year plan that aligns your benefits program with short-and long-term goals. While this RFP provides further detail on how we plan to serve the City based on your scope of work, below is an overview of our process for determining a plan design that meets both the City's current and future needs. Discovery&Analysis r Demographics:Analyze employee characteristics. • Cost and Financial Modeling: Inventory employee benefit programs while focusing on key cost drivers, outcomes, and comparisons with benchmarks. • Satisfaction: Survey the population and assess current employee benefit programs, including the communication of these programs and benefits. Desired State and Goal Setting • Determine Differences: Identify areas where meaningful changes are expected for the organization, employees, and macro environment. 13 • Identify Impacts: Evaluate the preferred future state and the impacts of changing variables on benefits program stakeholders. • Develop Goals: Outline goals for present and future strategy Identify Opportunities • Evolving Needs:Align offerings with the changing needs in your employee benefits program due to environmental impacts. 13 • Compliance Review: Conduct a compliance review to identify any potential gaps or opportunities for improvement. Strategic and Tactical Options Evaluation • Develop Strategic Alternatives: Leverage the gaps and opportunities analysis to create options for reaching goals and objectives. El • Propose Tactics: Evaluate tactics that support strategic alternatives while considering institutional culture, benchmarking data, and other factors. Implementation and Management • Vendor Selection: Select and secure the most qualified vendors with the most favorable terms to deliver the programs and designs determined by this strategic planning process. 13 • Implementation: Onboard newly customized programs based on identified needs. • Integration: Introduce programs to employees ensuring a positive onboarding experience. • Measurement: Identify key metrics that will be regularly tracked to determine performance and provide insight into continued strategic opportunities. • Communication and Engage: Develop a communication strategy to educate and engage staff so they understand the value. • Advocacy: Provide a dedicated support team to offer ongoing assistance for employees and management, answering questions, educating members, and helping to resolve claims issues. 11 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. ' J Gallagher d) Value-added services, tools, or methodologies relevant to employee benefits consulting This RFP outlines the many value-added resources Gallagher brings to the City of Round Rock—tools that enhance decision-making, support financial stewardship, and advance long-term goals. Before exploring these offerings in detail,we highlight several key differentiators that demonstrate the value Gallagher provides. Data-Driven Analytical Tools We provide advanced analytics platforms that integrate medical, pharmacy, and demographic data to identify cost drivers, forecast trends, and support evidence-based plan design decisions. These tools allow the City to monitor utilization, model plan changes, and evaluate financial outcomes with transparency and accuracy. National Benchmarking Resources Gallagher maintains one of the largest national benchmarking databases in the public sector. This allows the City to compare its plans against similar municipalities, identify opportunities for improvement, and validate the competitiveness of its benefit offerings. Compliance Support Tools Our in-house compliance team provides comprehensive toolkits, alerts, checklists, and guidance covering ACA, ERISA, COBRA, HIPAA, and state-specific requirements.These resources help ensure the City remains compliant and informed as regulations evolve. Vendor Performance Monitoring Gallagher utilizes structured scorecards, performance tracking tools, and standardized evaluation methodologies to help the City assess vendor service levels, contract adherence, and financial accountability throughout the year. Communication and Engagement Resources We offer customizable communication templates, employee education tools,digital content, benefit guides, and targeted messaging strategies to ensure City employees clearly understand and appreciate their benefits. These materials support open enrollment, new hire onboarding, and year-round engagement. Wellbeing and Population Health Tools Value-added wellness resources include monthly wellbeing communications, health promotion toolkits, and access to Gallagher's wellbeing inventories and assessments. These tools help identify key health risks and support development of initiatives that improve workforce wellbeing. Risk Management and Forecasting Models Our actuarial and underwriting teams leverage proprietary models to project future claims exposure, evaluate alternative funding arrangements, and identify emerging trends that may impact the City's financial planning. Benefit Advocate Support Gallagher's Benefit Advocate Center(BAC)offers no-cost assistance to employees and dependents with benefit questions, claims navigation, ID cards, provider searches, and issue resolution—reducing administrative burden on City staff. 12 1 rJ--2026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. Gallagher Voluntary Benefits Gallagher manages a variety of voluntary benefits, including Voluntary benefit solutions play a crucial role in developing a health and wellness plans like dental and vision insurance, life comprehensive benefit package. Gallagher's Voluntary and disability insurance, work-life balance options, personal Benefits Services will confidently recommend holistic and family benefits, and career development opportunities. solutions that enhance employee recruitment and retention, These benefits are tailored to meet the diverse needs of increase job satisfaction, boost productivity, and differentiate employees and support overall wellbeing. our clients in the marketplace. Working with over 70 different - carrier and vendor partners, Gallagher's agnostic approach to HR technologies, insurance plans, and value-added services lF Disability allows us an opportunity to develop a truly customized Income &Cancer solution for our complex clients. '0 L By actively listening to your current and future needs,we Idesign, implement, and deploy voluntary solutions using data- driven solutions. Those solutions consider employee demographics and psychographics. Utilizing Gallagher's Insuranco' workforce evaluation tool and National Benchmarking resources,we're able to provide insights on plan utilization, core and supplemental health alignment, and potential opportunities for risk/rate(spend)stabilization. While voluntary benefits are typically employee-funded plans, they can also be employer-subsidized. By introducing Orr ppo�te Legal _ emrksployee-funded solutions, our clients can provide cost- effective solutions tailored to their employees' needs and interests. Gallagher Marketplace is a centralized hub offering Sales Consulting year-round access to unique benefit options for Identify VB opportunity, define objective, communicate scope, employees and their friends and families. It's sell solution, and measure success convenient, easy to use and offers competitive online National Service Team quotes from 50+ carriers. With simple sign-up, Request proposals, analyze carrier responses, prepare payment options, potential cost savings for bundling, market scan, implement programs, and ongoing client support licensed insurance advisors and access to specialty Gallagher Enrollment Solutions products—it's your gateway to providing employees with cost savings on things they are already buying. Review communications and engagement strategy, determine enrollment options, implement programs, and value-added Designed with you in mind: services • No administrative burden Technology • No payroll deductions • Enroll any time of the year Empowering benefit strategies with tailored Ben Admin& • Full-time, part-time&contract eligible HCM solutions e) Work Plan by Functional Area- A description of the proposed work program organized by major service areas (e.g., financial and actuarial support, plan design, vendor management, communications, wellness, compliance, and optional pharmacy consulting). Describe how services will be delivered throughout the contract term. Gallagher plans to provide the City with a fully integrated, data-driven approach to employee benefits consulting that supports fiscal responsibility, regulatory compliance, and a high-quality employee experience. Our services are designed to align with the City's objectives while addressing the evolving needs of its workforce. 13 1 62026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. tF ) Gallagher By combining financial and actuarial expertise, advanced analytics, customized reporting, strategic plan design, vendor oversight. employee communications,wellness consulting, compliance support, and pharmacy management, Gallagher serves as a trusted partner to the City. We leverage proprietary tools, national benchmarking, and deep market relationships to manage risk, control costs, and optimize plan performance. The following sections outline our comprehensive service model and demonstrate how Gallagher supports the City of Round Rock in delivering sustainable, competitive, and well-managed employee benefit programs. Financial & Actuarial Your Financial and Actuarial consultant, part of your core team, provides services including underwriting, actuarial analysis, reporting, claims analysis, renewal review, forecasting, and financial consulting. We deliver financial utilization tracking reports to benchmark performance and identify cost drivers, aiding in program cost reviews, trend identification; and renewal negotiations. Gallagher's proprietary algorithms help manage medical risk by capturing, diagnosing. and optimizing claims data, and offering predictive and prescriptive modeling for high-risk consumers. Reporting Analytical Tools Gallagher customizes reporting packages to meet your The tools below are designed to provide current information on organization's exact needs. We will work with you at the trends and analytics, bringing complex data into focus and beginning of the program to identify the reports you require and helping clarify your long-term strategy. the frequency you'd like to receive them. Monthly Reports UNDERWRITING MODELER CUSTOM BENCHMARKING • Summary of plan costs Assumption based renewal industry specific data cuts • Analysis of actual vs. Budget projections • Identification of employee contributions, • Tracking of large claims • Comparison of claims to aggregate stop loss • Identification of plan costs by specific line of coverage IBNR RESERVE MODEL DATA WAREHOUSE (i e., medical. dental.. Rx. etc.) Global Team Members Data analytics platform Quarterly Reports EMPLOYEE STOP LOSS • Comparison of plan costs to projections incurred but not CONTRIBUTION MODELER Renewal & reported dollar projections(as needed) Develop contribution coverage analysis • Identification of services provided strategy&options Utilization review • Plan trends HEALTHCARE PEOPLE MODELRATING REPORT Annual Reports Develop specific medical Aggregated ' • plan premiums data analysis • Executive summary of program expenses • Comparison of current costs to renewal costs • Renewal alternatives PHARMACY UNDERWRITING BENEFIT MANAGER • Incurred but not Reported projections(as needed) IndependentlyAnalysis of carve-in vs. • • Overview of stop loss projections(as needed) " carrier carve-out solutions • Future cost projections • Dollars saved by contract negotiation • Percent of benefit dollars paid by members • LYTIC Claims by sizeACTION` REPORT TRACKING • Benefits paid by type of service Clinical insights& Custom built for each client• Plan Funding/budget comparison recommended actions • Fixed expense Comparison 14 �'D2026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. s Gallagher Financial Gallagher will provide financial utilization tracking reports with varying levels of analysis. This allows us to benchmark performance and identify cost drivers that are favorable or unfavorable. This data is invaluable when reviewing program costs, identifying trends, and negotiating renewals. Gallagher can customize your reporting package to meet your City's exact needs.We will work with you at the beginning of the program to identify the reports you require, including an analysis of actual claims to budget,tracking large claims, and identification of plan costs by specific lines of coverage. Gallagher's solutions use proprietary algorithms to uncover, pinpoint, and automate the information process to help you manage your medical risk across the health plan.We capture, diagnose, and optimize actual claims data and provide predictive and prescriptive modeling for high-risk consumers. Underwriting and Actuarial Services Our FAC team provides critical actuarial and underwriting services for testing assumptions regarding various enrollment scenarios and benefit designs. They review data in a data warehouse and provide customized benchmarking information based on your demographics, geography, and industry. We provide underwriting and actuarial support to our clients, including but not limited to: • Underwriting the plan independently from the insurance carrier. • Projecting renewal rate actions before the renewal. • Identifying financial objectives,goals,and risk tolerance • Forecasting total plan cost and offering alternate cost-saving measures • Recommending competitive employee and employer contribution strategies • Developing reserves, COBRA premiums, maximum exposure, and potential savings • Financial comparison and evaluation of managed care network discounts • Evaluating the cost-effectiveness of prescription drug carve-out via a pharmacy benefit manager • Providing benchmark information to compare costs and lines of coverage across all lines • Providing Incurred But Not Reported(IBNR)calculations • Providing captive feasibility, historical rate analysis, and forecasting Gallagher utilizes a range of surveys and tools to perform competitive benchmarking analysis, assess best practices, analyze emerging trends, and provide plan design recommendations. These include: • Proprietary National Benefits Survey: We conduct an annual Benefits Strategy& Benchmarking Survey that collects comprehensive data from over 3,500 organizations across the United States. It covers various employee benefits categories and allows for comparisons by industry, region,organization revenue, and size. • Best-In-Class Benchmarking Analysis: This analysis focuses on top-performing organizations and provides insights and best practices for managing benefit costs while attracting and retaining top talent. It is based on data from our National Benchmarking Survey and is segmented into separate reports for mid-and large-size employers. • Client Plan Information Database:A robust national database of client benefit plans, including design features, cost sharing, vendor relationships, and other relevant data points. This database allows for benchmarking against industry,geography, and employer size. • Health Plan Claims, Utilization, and Cost-Driver Database: This database provides a fundamental understanding of the costs associated with clients'medical benefit plans. It includes Healthcare Benchmarking Analysis Reports that analyze plan cost and utilization data and compare results with benchmarks. The database covers millions of employee life years in health benefit plans across the United States. • Organizational Wellbeing Polls: Regular Organizational Wellbeing polls are released to provide clients with up-to-date insights and industry information.These surveys assist clients in staying informed and making decisions amidst rapidly changing environments. These surveys and tools, along with conversations with clients, enable us to perform competitive benchmarking analysis, assess best practices, analyze emerging trends, and translate those insights into plan design recommendations. By leveraging data-driven insights and industry expertise,we aim to optimize benefits offerings, improve employee satisfaction, and align with the City's goals. 15 1 C-2026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. ,y Gallagher Qy Plan Design Gallagher conducts annual reviews of insurance products, performance, and status to assess the integrity and effectiveness of the benefits offered to employees.These reviews are a critical part of our consulting services and are designed to ensure that the benefit plans remain competitive, cost-effective,and aligned with the needs of the employees and the strategic goals of the employer. The annual review process typically includes the following components: 1. Plan Performance Analysis: • Claims Data Review:Analyzing claims data to identify trends, utilization patterns, and areas for potential cost savings. • Financial Performance:Assessing the financial performance of the benefit plans, including premium costs, claims expenses, and overall plan sustainability. 2. Market Benchmarking: • Competitive Analysis: Comparing the current benefit offerings with those of similar organizations in the industry to ensure competitiveness. • Market Trends: Keeping abreast of market trends and innovations in employee benefits to recommend new or improved offerings. 3.Carrier Performance Evaluation: • Service Quality: Evaluating the performance of insurance carriers in terms of service quality, claims processing efficiency, and customer satisfaction. • Financial Stability:Assessing the financial stability and reputation of the insurance carriers to ensure they are reliable partners. 4. Regulatory Compliance: • Compliance Review: Ensuring that the benefit plans comply with all relevant federal,state, and local regulations, such as ERISA, HIPAA, and the Affordable Care Act(ACA). • Updates and Changes: Keeping clients informed about regulatory changes that may impact their benefit plans and making necessary adjustments. 5. Employee Feedback: • Surveys and Focus Groups: Gathering feedback from employees through surveys and focus groups to understand their satisfaction with the current benefits and identify areas for improvement. • Utilization Reports: Reviewing utilization reports to see which benefits are most valued by employees and which may need enhancement. 6. Strategic Recommendations: • Plan Design Adjustments: Recommending adjustments to plan design,such as changes in coverage options, cost-sharing arrangements, and wellness programs. • Cost Management Strategies: Proposing strategies to manage and control benefit costs while maintaining or improving the quality of benefits offered. By conducting these comprehensive annual reviews, Gallagher ensures that the benefit programs they manage are effective, compliant, and aligned with the evolving needs of both the employer and the employees. This proactive approach helps employers maintain a competitive edge in attracting and retaining talent while managing their overall benefits costs. Vendor Management Proper vendor management begins with selecting the right partners for the City's employee benefits program.As one of the leading employee benefits consulting and brokerage companies, Gallagher maintains strong working relationships with the top markets in the industry.We actively engage with them on both national and local levels to fully understand their capabilities, offerings, and innovations. Our selective recommendations ensure we match you with companies, products, and services that meet your specific needs. Gallagher regularly negotiates performance guarantees with vendors and reviews their performance against these set standards. Vendor management is always on the agenda during our regular meetings. With thousands of clients nationwide, Gallagher possesses tremendous negotiating leverage and knowledge of the range of health and welfare vendors, both locally and nationally. This is invaluable to our clients as they seek ways to ensure they get the most value for their dollar. Our team members serve on the advisory boards for many local and national insurance carriers.We stay closely connected to the carriers to stay current on new product offerings, changes in underwriting, or other matters that may affect our clients. We also 16 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. '`Tat/ Gallagher share ideas from the marketplace and client feedback.We maintain high-level contacts locally and nationally to have leverage when needed. Communications Communication with your employees empowers them with a greater understanding of their benefits program while providing appreciation and organizational value. Your dedicated team will want to understand your organization's unique communication style, brand guidelines, and priorities that need to be communicated. Before applying our insights to the strategy, design, and delivery of your communications,we'll work collaboratively with you to ensure we capture your preferences, and the needs and concerns of your employees. We will work with you to develop a communications strategy and roadmap to ensure your employees feel confident they understand :- the benefits you offer and can choose the benefits that are best for - _ them. • �, We offer a variety of communication services that go beyond open Client Name enrollment. We create deliverables such as health education resources, interactive media, informational meetings,ongoing BENEFITS education, leadership support, and branding throughout the year 2 OXX using multiple channels. ENROLLMENT Benefit Guides LOGO The annual benefit guide is a vital communication tool for open I enrollment and new hires. We assist in designing guides tailored to { your organization for your employees. These user-friendly resources educate employees on benefit options and fulfill annual legal notification requirements.Additionally, these materials are available online in electronic format,which can include audio/visual presentations detailing plan choices and the enrollment process. MEDICAL El I BENEFITS Customized Materials Campaign Planning and Deliverables: Strategic timing for release of guides, posters, postcards, articles for internal newsletters. ,. N�. I Guides: Open Enrollment and new hire guides, benefits-specific and audience-specific guides Letters and Emails:Announcement letters and emails; reminder, confirmation, and post-enrollment emails r Videos: Short videos, about two minutes long, can be an effective .' way to reinforce messages provided through other channels ..= Presentations: Create In-person, recorded and virtual open enrollment presentations 17 1 i02026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. Gallagher OPEN ENROLLMENT We participate in open enrollment meetings and presentations to establish a connection with your employees. We will collaborate with you to develop a communication campaign including creating and managing the content and design of an open enrollment guide, a benefit summary/newsletter, and any other materials to promote open enrollment. We will also assist in preparing supporting materials for open enrollment meetings and can attend and facilitate these meetings annually. Open enrollment plays role in shaping the employee experience. Employees have greater appreciation for th eir benefits wh- they - Benefits Enrollment 20xx! Open Enrollment for 20xx benefits will be held greater • — . • • [Month Day]-[Month Day] ASM a wa4xar to earn,Gout d,n Nmpes anE wiue etltlatl rtfourcoa! Onsite or Virtual Enrollment and Employee Meetings We participate in open enrollment meetings and presentations to establish a connection with your employees.We will collaborate to develop a communication campaign for open enrollment. This campaign includes creating and managing the content and design of an open enrollment guide, a benefit summary/newsletter, and any other necessary materials to promote open enrollment.We will also prepare supporting materials for open enrollment meetings and can attend and facilitate these meetings annually, as needed. Additionally,we work with vendor partners on SBCs, SPDs, and benefit grids as required.. Furthermore,during our planning discussions,we assess opportunities each year for ongoing education on available benefits and strategies to optimize them for your workforce. Customizing open enrollment information at the individual level to enhance engagement is currently a growing trend. Gallagher utilizes proprietary tools and services to deliver this level of customization to our clients. Open Enrollment and New Hire Orientation Open enrollment plays a crucial role in shaping the employee experience, making it essential to approach it strategically.We can assist you in planning and executing open enrollment based on your specific communication style,which includes: • Creating communication materials such as announcements, branded letters from your enrollment forms, open enrollment brochures, and • Customizing the presentation of open enrollment programs • Conducting open enrollment meetings, both in-person and virtual as desired • Attending employee health fairs Gallagher's Benefit Advocate Center(BAC)is a resource for employees and their dependents, addressing inquiries related to all the client's employee benefit products. The BAC provides support for new hires, offers guidance and education during open enrollment, assists with locating providers,explains benefits, and facilitates ID card requests. The service also addresses questions related to eligibility rules and coordination of benefits(COB). Support with claims, billing codes, and appeals is also included in the service offering. 18 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. 4Gr J Gallagher Employee Online Tools Communicate effectively and efficiently through online tools of benefits administration vendors, decision support tools and other enrollment tools and techniques. Your employees can clearly understand their benefit options and gain a deeper appreciation of their value. Connect2MyBenefits provides customized. up-to-date communications and decision support tools for employers and employees to span the entire workforce life cycle—from hire to retire. It serves as a virtual HR assistant providing information : when needed. Connect2MyBenefits is included in the scope of - services with no cost . CORE CAPABILITIES + w OP QL--4 • Benefit and HR forms Healthcare advisor • Benefit summaries aEducational content • Branded homepage 0Employee handbooks • Carrier links 0Syndicated news feeds • Comparison charts • Create event checklists w►�i1 � • Create announcements • Glossary of healthcare W terms Brite Communications Enhancing Open Enrollment Brite offers a digital solution for enrollment materials, benefit education, decision support and powerful communication tools. Brite's platform allows you to create. communicate. and distribute all education around your benefit programs year-round; not just during open enrollment. Brite seamlessly integrates with Paylocity and other HRIS systems, offering a streamlined solution for managing HR processes efficiently. This integration ensures that data flows smoothly between platforms, enhancing accuracy and reducing administrative burdens. Brite supports employees spread out in various locations. It brings the relevant benefits details to your employees through the channels they are already actively seeking information. Your Recommendations Super-charge your Open Enrollment meetings M•tll`010Ptior3 r...w.r•,.a. 1 .. aosa. kJri., Unlock the power of your benefit offerings Provide a superior benefits education experience; vauaw.c«.s«wtns """ arr ...,....„..,. �t Introduce and educate on new carriers easier than ever. K^M•q y,Me,•k Benefit walk-through a^wnioay the app i Integrated decision support �, - Scan the QR code for a demo of the MEIncreased engagement Brite communications platform MEar Is. 19 02026 Arthur J.Gallagher&Co. Please note:Depending on scope of services,additional fees may apply. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. Gallagher Wellness The following provides basic detail on standard wellness resources that Gallagher provides. However, for the City we would have dedicated expert in both wellness and disease management. Gallagher is experienced in helping our clients successfully implement wellbeing initiatives and programs.As a part of the Gallagher team,the City's Wellbeing Consultant will be included in your annual strategic planning meetings as well as medical and pharmacy utilization reviews with your carrier.Your Wellbeing Consultant will use their knowledge of your organizational goals,your current resources, industry trends, and your carrier's capabilities to build or evolve an impactful wellbeing program that is tailored to your workforce. • First,we will assess your current wellbeing programs.We will utilize Gallagher's Wellbeing Resource Inventory to understand what resources your organization has today and begin to develop a gap analysis for future opportunities. • Second,we will look to collect employee feedback about current initiatives and potential future support.We find that it is critical to consider your people's interests and opinions when assessing the potential for a wellness initiative. • Third,we will look at available data.We will gather data from a variety of sources such as medical and pharmacy claims, health risk assessments, biometric screenings, and workers compensation to gauge overall employee health and program utilization/participation. With those three steps completed,we will collaborate with you to develop and implement a comprehensive short-term and long-term action plan that will encompass both health promotion and health risk solutions. This action plan will act as our path forward,together as partners, to achieve meaningful and measurable outcomes. On an annual basis and throughout the year,we will revisit the strategy, evaluate action steps for change, monitor data, and proactively bring you relevant ideas and trends to continuously make your programs better. Together with the rest of your Gallagher team,we will focus on your goals and leverage your resources to efficiently and effectively design a strategy that makes the most impact on the strength of your overall employee value proposition. In addition to the consulting provided, as a Gallagher client, you will have access to the following wellness resources: • Live Well Monthly,Gallagher's wellbeing resource featuring • Live Well Toolkits, a valuable set of documents with ideas the following materials in English, Spanish, and French for establishing or evolving your wellbeing initiatives in the Canadian: following areas: - Monthly newsletters you can send out to your employees - Implementing Tobacco Cessation Initiatives with tips,tricks, and information about living a healthy - Building a Wellbeing Committee lifestyle including healthy recipes Planning a Flu Vaccine Clinic - Printable posters to hang in your workplace that - Planning a Health Fair correspond to a theme from the newsletter - Examples of Common Incentives - Templates for total wellbeing activities or challenges with Utilizing Carrier Wellbeing Dollars tracking cards tied to each month's theme that can easily be executed by HR, the wellbeing champions, or a team of employees Compliance Gallagher has an in-house benefits compliance team that consists of over 30 team members across the country. We regularly monitor critical developments at the federal and state level, including federal issues under the ACA, ERISA, COBRA, HIPAA, and similar laws, and state law issues such as state individual mandates and related reporting requirements, state and local benefit mandates for employers doing business in those jurisdictions, and other state law issues affecting your health and welfare plans. We maintain a comprehensive compliance database for our advisors, offering summaries of legislative and regulatory requirements along with practical tools like FAQs, sample forms, and checklists. Gallagher's compliance team provides essential resources that allow us to thoroughly review and ensure the compliance of your benefit program, both initially and on an ongoing basis. By subscribing to IRS, DOL, and other federal and state distribution lists, as well as materials from the Employee Benefits Institute of America(EBIA)and the American Benefits Council(ABC),we stay informed with up-to-date information.We then review, interpret, and share this information with our Gallagher service teams and clients. Our proprietary compliance review tool enables us to assess and identify any potential compliance gaps under ACA, ERISA, COBRA, HIPAA, and state laws, including newer legislative requirements affecting your benefit program.Additionally, our annual notices and reporting checklists help your Gallagher service team meet participant disclosure and governmental reporting requirements.As new regulations arise from Congress, regulatory agencies, or the courts, our compliance team quickly creates new tools, newsletters, and alerts to keep you informed and minimize compliance risks. 20 1©2026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. I\ Gallagher In addition to these tools, our standard consulting services include a full range of compliance services, providing valuable resources as part of our core offerings: • Compliance Toolkits,Guides,and r FAQs:We offer detailed information onr key topics such as employer shared "• • 0A responsibility rules ACA reporting, i • l C iancePublicMbra wellness programs, HSAs, FSAs, HRAs, A 3 W, � w � •.�y�,»» a. moor -° and more. ,,. a • Compliance Education: Our experts analyze and explain legislative changes """ "' 1p related to ACA, ERISA, COBRA, HIPAA, 1' and others.We distribute this information � �" through newsletters,technical bulletins, educational guides, compliance alerts, and webinars.We prioritize creating user- _a. . n,_ _ x friendly,jargon-free educational resources. _ • Compliance Consulting: Our compliance ■e _ _ =` = = � experts collaborate with your Gallagher consulting team,staff, and legal counsel to address complex issues and provide " guidance on any compliance-related questions. This approach ensures that your compliance obligations are met and that potential gaps are minimized.We utilize a variety of formats to communicate compliance developments to our clients, ranging from a concise"just the facts"approach to a deeper dive into the complexities of new laws and regulations. Pharmacy The pharmacy benefit is one of the largest and most complicated components of a healthcare benefits package. It's a challenge to stay informed about issues that affect your plan, making it more difficult to ensure the pharmacy benefit delivers optimal value to you and your employees. We leverage real-world expertise and clinical insights to keep you current on issues that affect your prescription drug plan. By assessing your PBM contract,we can help design your next contract and provide consultation focused on audits, managing costs and increasing plan satisfaction. Gallagher's Pharmacy&Health Plan Services team is comprised of a highly experienced team that has worked with several different complex organizations to exceed their pharmacy program goals and objectives. Our team of over 100 pharmacy experts, over 12 pharmacists with a collective experience of over 500 years in pharmacy benefit management, is well-versed in PBM, pharmacy consulting, managed care pharmacy, and health plan environments. Our unique perspective enables us to effectively assist clients in managing their pharmacy programs,offering a comprehensive range of services. Pharmacy PBM Selection, Analysis, Contract Reviews: Prescription Utilization Benefits Design Services, Fees, and Strategies and Implementation Rebate Guarantees Review Drug Cost Analysis and Clinical Program Claims Audits Reduction Strategies Formulary Management Strategies Pharmacy Alliance Therapeutic Patient& Physician Disease Management Interventions Communication 21 1 62026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. 46—) Gallagher Client Experience:We support complex and prestigious organizations around the country, including large employers, governmental entities, union and labor groups, health systems and health plans. Utilizing our perspective and capabilities,we can fully-leverage the experience and insights that we continuously gain across our entire client base. We have a significant volume of long-term clients that we have served with distinction for many years. Clinical Expertise: The Gallagher's Pharmacy& Health Plan Services team has eleven clinical pharmacists on staff, most of whom have achieved PharmD credentials. Our pharmacists have all led clinical efforts within PBMs. health plans and pharmacy consulting firms. This inside clinical expertise offers leverage over our competition and brings valuable ideas to our clients relative to managing drug mix, formularies, clinical programs, and drug coverage. Additionally, our pharmacists are instrumental in the underwriting process to assist with predicting potential drug exposure regarding future trend. RFP Management and Underwriting: Our RFP process has proven to consistently create value and to secure and optimal PBM contract. While our references will validate this claim, we consistently achieve both significant cost avoidance and improved contract terms in every procurement that we facilitate. Leveraging our expertise from the forty-five members of our Gallagher's Pharmacy& Health Plan Services team,we will work with you to create, evaluate and negotiate an RFP and contract that will result in meaningful savings, improved contract terms, and a well-managed pharmacy program. Audit Expertise: Gallagher's PBM audits aim to hold PBMs accountable for their financial and operational performance, adhering to the expectations outlined in the PBM contract. Through our diligent efforts in 2023, Gallagher's Pharmacy& Health Plan Services team auditors successfully recovered$4.5 million through 141 PBM audits, with 27%of audits resulting in some type of recovery from financial discrepancies and coding errors. f) Key Activities and Methodologies- An explanation of the tools, analytical methods, and best practices that will be used to perform required services, including budgeting, actuarial modeling, vendor negotiations, benchmarking, utilization analysis, and reporting. Financial Actuarial Consulting (FAC) and Reporting Data drives the decisions related to your current and future benefit offerings. Our consulting approach is rooted in the way we collect, analyze, and report data. Gallagher does not view actuarial, reporting, and/or underwriting services as silos, rather, as a unified offering we provide. Your Financial and Actuarial Consulting (FAC)team member is a part of your core team whose services(e.g.. underwriting, actuarial, reporting, claims analysis, renewal review, and financial consulting)are included in the standard scope. Our FAC team has deep industry knowledge. expertise, and a wide range of tools and data to provide the City comprehensive financial analyses. This enables clients to make informed decisions throughout the benefits design process, maximize value, retain talent, and control costs. Underwriting and Actuarial Services Our FAC team provides critical actuarial and underwriting services for testing assumptions regarding various enrollment scenarios and benefit designs. They review data in a data warehouse and provide customized benchmarking information based on your demographics, geography, and industry. We provide underwriting and actuarial support to our clients, including but not limited to: • Underwriting the plan independently from the insurance carrier. Projecting renewal rate actions before the renewal. • Identifying financial objectives, goals, and risk tolerance • Forecasting total plan cost and offering alternate cost-saving measures • Recommending competitive employee and employer contribution strategies • Developing reserves, COBRA premiums, maximum exposure, and potential savings • Financial comparison and evaluation of managed care network discounts • Evaluating the cost-effectiveness of prescription drug carve-out via a pharmacy benefit manager • Providing benchmark information to compare costs and lines of coverage across all lines • Providing Incurred But Not Reported (IBNR)calculations • Providing captive feasibility, historical rate analysis, and forecasting 22 i L2026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. 4tz_) Gallagher Our advanced data warehousing and analytics platform employs filtering capabilities to drill down on endlessly customized segments of an organization's member population. This allows our team of actuaries and strategic consultants to stratify risk, determine key drivers of cost and utilization of your health plan, and identify top opportunities for cost optimization. wareh h peer organizations . ... - - 4 demographics, geography, million annual member lives and plan design edictive ytics to drive future strategy I 2 - . - 5 . opportunities-.. . . . 3 trends, predictivescores, ._. data and insights at their fingertips 6 opportunities,in-care, clinical risk Financial Reporting Gallagher will provide financial utilization tracking reports with varying levels of analysis. This allows us to benchmark performance and identify cost drivers that are favorable or unfavorable. This data is invaluable when reviewing program costs, identifying trends, and negotiating renewals. Gallagher can customize your reporting package to meet the City's exact needs. We will work with you at the beginning of the program to identify the reports you require, including an analysis of actual claims to budget, tracking large claims, and identification of plan costs by specific lines of coverage. Gallagher's solutions use proprietary algorithms to uncover, pinpoint, and automate the information process to help you manage your medical risk across the health plan.We capture, diagnose. and optimize actual claims data and provide predictive and prescriptive modeling for high-risk consumers. The following are some examples of reporting Gallagher provides. • Monthly financial monitoring report to include a summary of plan costs, actual costs vs budget, and large claimants • Projection and forecasting that include rate development • Plan change modeling • Contribution modeling Disruption analysis with self-funded marketing • Network discount evaluation with self-funded marketing • Utilization analysis and reports 23 1 C2026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. 4tj_) Gallagher Data Drives DecisionsTM Actionable employee benefits strategy starts with a comprehensive analysis of your workforce and benefits data. Data drives the decisions related to your current and future benefit offerings. Our consulting approach is rooted in the way we assess, develop, analyze, measure. and report data for you to make informed decisions. Our Financial and Actuarial Consulting (FAC)team offers comprehensive financial analyses using industry expertise. _ _ • , Assess Initial strategic review to identify key drivers of cost and utilization 2 Develop Data-driven recommendations based on our findings and your needs 1 Measure Monitor the impact of programs, plan changes and interventions Gallagher Drive® Our proprietary data-driven analytics and insights can help you determine how strategic investments in your people's physical, emotional: career and financial wellbeing can lead to organizational profitability and growth. to organizational profitability and growth. Gallagher will provide you an in-depth analysis of cost savings gaps and opportunities enpowering you to make data driven strategies. • • Optimize • Workforce Cost optimization Total reward ROI demographic solutions studies s _ ...... Employee • Benchmarking Plan design Ongoingtracking engagement • Historical report Vendor intelligence and reporting Enhanceresource analytics utilization • Employee communication 24 102026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. tr) Gallagher g) Timeline and Service Cadence- A proposed timeline or service schedule showing key activities, recurring services (e.g., monthly reporting, quarterly strategy meetings, annual renewals, milestones, and decision points. Visual timelines, tables, or charts are encouraged. Sample Transition Timeline Task Due Da - New Client Implementation MM,YYYY • Awarded Broker of Record • Round Rock and Gallagher co-sign Consulting Agreement • Distribute Broker of Record appointment letter to carriers • Collect current contracts, plan documents and rate confirmations • Introduce Benefit Advocate Center to employees, if applicable • Develop client service plan and prioritize strategic objectives Pre-Renewal Strategy Meeting MM,YYYY • Review market trends, innovative solutions and industry benchmarking • Discuss budget objectives • Provide financial claims reporting and cost analysis • Prepare Workforce Evaluation • Discuss medical management/wellness initiatives • Build out long term benefits strategy and project timeline Renewal Analysis MM,YYYY • Presentation of renewal, marketing results and recommendations • Provide new budget rates. Illustrate predictive modeling tool and cost containment strategies • Review contribution analytics results Annual Open Enrollment&Renewal Execution MM,YYYY • Customize deliverables for in-person meetings, benefits fairs, webcasts(live or recorded), and/or self-service online benefits portal • Coordinate calendars and vendor participation for open enrollment • Complete carrier/vendor renewal confirmations • Coordinate enrollment/change submissions • Coverage ID cards issued Renewal Effective Date MM,YYYY • Review contracts and booklets • Gallagher review of legal documents. ASAs, etc. Forward Looking Strategy • Develop client service plan and fine tune strategic objectives • Provide ongoing reporting • Launch an employee engagement survey • Review annual administrative practices for efficiencies • Discuss medical management/wellness initiatives Not all services are included,separate fees may apply. 25 1©2026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. /(T ) Gallagher h) Deliverables and Reporting- Identification of written reports, presentations, dashboards, or other deliverables that will be provided during the contract term, including the frequency of each deliverable. Gallagher will provide monthly, quarterly, and annual utilization tracking reports with varying levels of analysis. We work with the vendors to analyze utilization data where available. This allows us to benchmark performance and identify cost drivers that are particularly favorable or unfavorable. This data is invaluable when reviewing program costs, identifying trends and negotiating renewals. Gallagher has the capability to customize your reporting package to meet your organization's exact needs. We will work with you at the beginning of the program to identify the reports you require, including analysis of actual claims to budget, tracking large claims and identification of plan costs by specific lines of coverage. Gallagher's solution utilizes proprietary algorithms to uncover, pinpoint and automate the information process to help you manage your medical risk across the health plan. We capture, diagnose, optimize actual claims data and provide predictive and prescriptive modeling for high-risk consumers. • Monthly Reports I summary of plan costs, analysis of actual vs. budget, identification of employee contributions, tracking of large claims, comparison of claims to aggregate stop loss, and identification of plan costs by specific line of coverage(i.e., medical. dental. Rx. etc.) • Quarterly Reports I comparison of plan costs to projections, identification of services provided, utilization review. and plan trends • Annual Reports I executive summary of program expenses, comparison of current costs to renewal costs, renewal alternatives, Incurred but not Reported projections, overview of stop loss projections, future plan cost projections. dollars saved by contract negotiation, percent of benefit dollars paid by members, claims by size, benefits paid by type of service. plan funding/budget comparison, and fixed expense comparison i) Flexibility and Responsiveness- A description of how the respondent will adapt its approach to changes in program needs, regulatory requirements, vendor arrangements, or benefit delivery models during the term of the contract Adaptability quickly adapt no surprises- underwriting and projections fluidity-economics changing recommendations with written terms- language to support modifications, changes,terminations as needed Flexibility and Responsiveness Gallagher is committed to providing the City of Round Rock with a highly adaptable and responsive benefits consulting partnership. We recognize that program needs, regulatory requirements, vendor relationships. and benefit delivery models evolve over time, and our Year End Client Strategic service approach is intentionally designed to adjust quickly and Review&Go Live Planning effectively as these changes occur. Adaptive Service Model Issue Ongoing Our consulting framework is built around continuous monitoring: Resolution Support proactive communication, and collaborative planning. We meet r� regularly with the City's leadership to review emerging trends: EMP�ovEe Communication BENEFITSProject Marketing operational needs, and stakeholder feedback. When changes arise— &Enrollment SupportCONSULTINGManagement &strategic SERVICES whether driven by internal priorities or external market factors—we Support Analysis promptly adjust strategies. timelines, and deliverables to maintain Vendor Financial alignment with the City's goals. Management Monitorin Our integrated service model incorporates all the expertise and resources needed to help our clients manage their employee benefits program. This integrated team approach allows us always to remain Implemention& Financial Planning Management Meeting completely available and responsive to our clients. The City has a �-— designated team to support your ongoing needs and operations that includes a primary consultant who provides strategic leadership, service oversight and coordination, a client manager who works closely with the 26 1(02026 Arthur J.Gallagher&Co CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. 46-) Gallagher primary consultant in addressing all day-to-day needs, and a financial benefits consultant,who provides analytics, reporting, forecasting, and more. By intent, your consulting team's workload and schedule will allow them to be fully available to meet City's needs. Gallagher has helped thousands of clients develop and communicate their organization-wide employee benefits philosophy. First,we'll listen to determine your perspective on the employee experience you want to deliver and how that aim integrates into your overall business strategy. You will then receive recommendations consistent with your articulated benefits strategy. Finally,we'll work with your staff to consistently and completely communicate your program benefits to your employees as a portion of their total compensation package. 27 1 Ci2026 Arthur J.Gallagher&Co. CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. 4tz_) Gallagher Regulatory Agility With a national compliance team of over 30 specialists and a dedicated member assigned to our team, Gallagher stays ahead of evolving federal and state requirements, including ACA. ERISA HIPAA, COBRA, and Texas-specific mandates. As regulatory changes occur.we immediately evaluate their impact, update processes, and provide clear recommendations and implementation steps. This ensures the City remains compliant while minimizing administrative burden. Compliance Attorney Andrew Malahowski, J.D. I Compliance Counsel Andrew Malahowski joined Gallagher s Dallas, Texas office in 2014. Andrew was previously a partner with an employment and benefits law firm in Chicago, Illinois. where he represented both public and private sector ` employers in a broad range of employee benefits matters. Over a 19-year legal career, his counseling experience includes the design and administration of employee benefit plans, and he has counseled clients with respect to compliance obligations under ERISA, PPACA, COBRA, HIPAA, and various other employee benefits laws and regulations. As Compliance Counsel. he assists the many Gallagher offices with both day-to-day and strategic compliance questions related to health and welfare plans. He has also assisted clients with benefit plan audits and filings with the IRS and DOL. Andrew's additional experience from his prior law practice allows him to strategize with clients on other angles affecting their employee benefit plans, such as collective bargaining, worker classification.. and the management of employee leaves of absence The Gallagher compliance team provides both administrative and strategic support on a variety of benefits compliance n O 1 issues under the ACA, COBRA.. HIPAA, and other laws and 3 T regulations affecting your health and welfare plans. Dedicated Experts We maintain a complete compliance database for our advisors with summaries of legislative, regulatory requirements, and practical tools, such as FAQs, sample forms, and checklists. 23+ In addition, we subscribe to IRS, DOL and other federal and state distribution lists, and materials provided by the In-House Attorneys Employee Benefits Institute of America(EBIA)and the _ American Benefits Council(ABC). As new requirements are set forth by Congress, the regulatory Navigating agencies, or the courts, our compliance team is vigilant in creating additional tools, newsletters, and alerts, so that our A landscape planted thick with laws partnership with you keeps compliance obligations at the forefront and minimizes compliance gaps. In addition to these tools, our standard consulting services include a Annual liance Review comprehensive set of compliance services and resources as • • part of our core scope. Trends : Regulations Communication Compliance Helpdesk & Database Vendor Flexibility and Oversight Because vendor performance and offerings can shift throughout the contract period. Gallagher remains carrier/vendor agnostic, we work to push the contracts to the closest direct comparison of their relative value to their cost. As these programs continue to evolve, 28 1, 2026 Arthur J.Gallagher&Co CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. 4tz_) Gallagher so do employee desires, the equation has two key components. The first is strictly financial: we evaluate how much was paid for the benefit and how much was paid out to employees. We target plans that maximize the employee return. Second we consider what employees find valuable. Much of the work of insurance is to give people peace of mind. In some cases, employees value something that is not the best direct financial value, but: it will offer them the most peace of mind for themselves or their family. Proper vendor management begins with selecting the right partners for City's employee benefits program. As one of the leading employee benefits consulting and brokerage companies, Gallagher maintains strong working relationships with the top markets in the industry. We actively engage with them on both national and local levels to fully understand their capabilities. offerings, and innovations. Our selective recommendations ensure we match you with companies, products, and services that meet your specific needs. Gallagher regularly negotiates performance guarantees with vendors and reviews their performance against these set standards. Vendor management is always on the agenda during our regular meetings. Should the City need to renegotiate terms, modify services, or explore alternative vendors. we quickly mobilize underwriting, analytics, and negotiation teams to support efficient and seamless transitions. With thousands of clients nationwide. Gallagher possesses tremendous negotiating leverage and knowledge of the range of health and welfare vendors, both locally and nationally. This is invaluable to our clients as they seek ways to ensure they get the most value for their dollar. Our team members serve on the advisory boards for many local and national insurance carriers. We stay closely connected to the carriers to stay current on new product offerings, changes in underwriting, or other matters that may affect our clients. We also share ideas from the marketplace and client feedback. We maintain high-level contacts locally and nationally to have leverage when needed. Benefit Model Adaptation As employee needs, utilization patterns. or budget constraints evolve, Gallagher uses real-time analytics and predictive modeling to assess the impact of alternative plan designs, cost-saving strategies, or delivery models. Whether the City shifts toward consumer- driven health plans, integrated wellness strategies, new pharmacy approaches, or innovative digital tools, we have the expertise and resources to support and execute changes without disruption. Our advanced data warehousing and analytics platform employs filtering capabilities to drill down on endlessly customized segments of an organization's member population. This allows our team of actuaries and strategic consultants to stratify risk, determine key drivers of cost and utilization of your health plan, and identify top opportunities for cost optimization. Our data h peer organizations claims . ... _ . - 4 demographics, geography, membermillion annual - design 2Secure warehousing . - _ Predictive o drive future strategy consistent reporting and verification and opportunities -.. . . . 3 predictive 6 .. . . . .- - - utilization trends, ores, gaps- in-care, clinical risk opportunities, - .. . fingertips Rapid Response Commitment The City will have direct access to a dedicated team that prioritizes timely communication and decision-making support. We pride ourselves on fast turnaround times, transparent collaboration, and an approach that ensures the City receives actionable guidance exactly when it is needed. Our goal is to respond to our client inquiries and requests by the end of the business day or within twenty-four hours. We understand the importance of addressing our clients' needs promptly, and we strive to ensure our clients receive the assistance they require. Our client management team is accessible through phone or email during core business hours. 8 am to 5 pm. Monday through Friday. Depending on the severity of the client's need, an in-person meeting may also be scheduled. Our boots on the ground, teamwork approach allows us to always remain available and accessible to our clients. 29 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. 4tx_) Gallagher j) Optional Services Acknowledgement (if applicable)- If proposing optional services (e.g., pharmacy consulting), respondents should describe how those services will be integrated into the overall consulting approach if authorized by the City. Proposals for optional services will be considered separately and are not required for responsiveness. Integration of Optional Pharmacy Consulting Services If the City of Round Rock elects to include pharmacy consulting as an optional service, Gallagher will integrate these services into the City's overall benefits strategy in a manner that is seamless, coordinated. and consistent with public-sector operational expectations. Alignment With the City's Strategic Objectives Optional pharmacy consulting services will be incorporated into the existing governance and communication structure established for the City's benefits program. Our pharmacy specialists will coordinate closely with the City's designated staff, ensuring that recommendations reflect the City's fiscal priorities, employee needs, and long-term program goals. Coordinated Team Structure Pharmacy consulting will be delivered through the same dedicated account team that supports the City's core benefits program. This structure provides a single point of accountability and ensures that pharmacy insights are fully integrated into annual planning. financial reviews. claims reporting, and renewal strategies. Our pharmacy experts participate in scheduled meetings, work sessions, and briefings to support informed decision-making by City leadership. Integrated Data and Analytics When pharmacy services are authorized, Gallagher will incorporate pharmacy claims and utilization data into the City's broader analytics framework. This unified data approach allows for improved forecasting, identification of high-cost trends, evaluation of specialty drug exposure, and coordinated medical—pharmacy cost containment strategies. The City receives clear, actionable reporting that supports transparency and responsible budget planning. Support for PBM Procurement and Oversight Should the City engage in PBM procurement or contract evaluation, our pharmacy consulting team will support the process using competitive, transparent, and defensible public-sector procurement standards. This includes drafting RFP specifications, evaluating proposals, negotiating contractual terms, and conducting audits. All work will be coordinated through the City's established vendor management and contract administration processes. Integration Into Broader Benefit Delivery Models Pharmacy recommendations will be assessed alongside medical,wellness, and financial considerations to ensure alignment across the City's entire benefits program. This integrated approach helps identify opportunities for plan design improvements, clinical management programs, and strategies that support both cost containment and employee wellbeing. Flexible and Scalable Because pharmacy consulting is an optional service, the City may select the scope and level of support that best meets its needs. Whether the City requires periodic contract reviews, annual audits, or ongoing clinical and financial strategy support, Gallagher will adapt our services to fit within the City's existing frameworks without adding administrative burden. 30 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. 46-) Gallagher B. Segment 2 - Company Work Experience aro Personnel i. Prior Experience. State the number of years the Respondent company has been providing the services requested in the solicitation. Describe only relevant municipal, governmental, corporate, and individual experience for the company and personnel who will be actively engaged in the project. Do not include corporate experience unless personnel assigned to this project actively participated. Do not include experience prior to 2014. Supply the project title, year, and reference name, title, present address, and phone number of the principal person for whom prior projects were accomplished. ii. Contractors' past performance with the City may be evaluated. iii. Personnel: Include names, qualifications, and resumes of all personnel who will be assigned to the account. State the primary work assigned to each person and the percentage of time each person will devote to this work. Identify key personnel by name and title. Public Sector Experience With over 3.000+ public entity and scholastic benefits clients. Gallagher's Public Sector Practice is dedicated to serving the needs of public employers. The City will have a partner with extensive experience working with states. counties, cities and government employers. We have built our Public Sector Practice by bringing together over 200 consultants to share best practices, products, resources, benchmarking and data, and practice specialists to best serve our public sector clients. Public sector practitioners at Gallagher have spent decades providing industry-leading solutions in the public sector. We are active in the public sector community, including participation in organizations such as Association of School Business Officials(ASBO), Public Risk Management Association (PRIMA). Government Finance Officers Association(GFOA). National Public Employer Labor Relations Association(NPELRA), National Association of Counties(NACo), International City Managers Association (ICMA)and International Public Managers Association (IPMA-HR). We understand the City faces unique challenges as a public sector employer. Your organization is exempt from certain laws and subject to others that may—or may not—create flexibility and cost efficiency. Tax revenue and other revenue sources are subject to change and drive the design and financing of employee compensation and benefits Often, collective bargaining agreements and intense public scrutiny affect the City's decisions. Your Gallagher team takes these factors into consideration. We bring a broad range of public sector-focused solutions and expertise, including work in collective purchasing, benchmarking data and healthcare utilization review and analysis. In addition, with our industry specialization and large number of public entity clients, you have access to a deep reservoir of industry benchmarks. As a partner with the City, Gallagher will design a strategy that aligns investments in employee health, talent management.. financial wellbeing and career growth with financial realities in the public sector. Well help build a better workplace that inspires employees to give their professional best—and help the City meet its business objectives for years to come. 31 1 D2026 Arthur J.Gallagher&Co. - CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. 4) Gallagher 40 + yearc Gallagher's years of Professionals on the Premium placed for experience in the Public Sector/K-12 public sector public sector team Your dedicated service team will provide consistent support throughout our relationship. Led by your benefits consultant and client manager, the team consists of multiple members who will work closely together to ensure your satisfaction. In the following section, you will read more on the different people who will work with you as well as a summary of their experience. DAILY SUPPORT The City team will have a dedicated Client Manager who will provide daily support. In addition, an accessible Benefit Advocate Center will be available to employees. Your service team is committed to delivering prompt responses and exceptional service daily. THE CORE TEAM Our Core Team structure is strategically designed with you in mind. Lead Consultant—Has dedicated areas of focus to provide comprehensive strategic direction. Client Executive—Will oversee all client deliverables and vendor performance. Client Manager—Serves in a day-to-day plan management capacity. Assists with the execution of strategy and attends scheduled strategy and renewal meetings. Client Associate—Primarily an internal facing role with a focus on supporting the tactical work to enable other team members to spend additional time on the strategic work. 32 1 e2026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. 4CT ) Gallagher Natalie Haskett I Benefits Consultant Natalie began her Employee Benefits and Human Resources career in 2004, working for Benefit Planners, a large Third Party Administrator. During her time with this organization, she gained valuable experience and knowledge through two acquisitions, the final one taking her to serve on the carrier side as an Account Executive with United Healthcare(UMR). After ten years she decided to take on a leadership role with Rackspace as a Health and Wellness Program Manager. In 2016 she changed her focus to the brokerage/consulting area and joined Gallagher. As a Consultant on our Public Sector team, Natalie is responsible for helping clients develop human capital strategies that attract and retain top talent and engage their workforce. Natalie partners with cities, counties, schools. and other state and federally funded organizations of all sizes to develop employee benefits and total- rewards packages. Our clients look to her for advice and guidance as they navigate through the constantly changing Employee Benefits environment and strive to remain compliant with a multitude of legislative changes. Natalie has received several internal awards, including Employee of the Year and is a proud graduate from the Growing Gallagher Greats leadership development program. She is also a certified Human Resources Professional (PHR)and a Certified Employee Benefits Specialist(CEBS) Brandon Debar I Area Vice President, Consultant I�# Brandon DeBar has been with the Gallagher Public Sector team since 2016. Brandon is primarily responsible for the overall HR and benefits strategy, as well as the maintenance and retention of existing clients. Brandon was instrumental in the creation of the TASB Benefits Cooperative and the development of new resources for his clients. He uses his experience and knowledge to partner with clients to help them maximize the value and effectiveness of the benefit programs that they offer. He works with a solid team of professionals at Gallagher and uses extensive resources to help provide solutions to his clients' unique needs. Brandon's clients look to him for solid, sound advice regarding plan design and funding in the constantly changing legislative environment of Employee Benefits. Education and Professional Designation University of Nebraska Bachelor of Business Administration, Supply Chain Management and Economics Life and Health Counselor, LHIC Betty Gwinn I Director, Texas Public Sector Practice As Director of the Texas Public Sector Practice, Betty focuses on helping her team and clients develop human capital strategies that attract and retain top talent and engage their workforce. Betty partners with cities. counties, schools, and other state and federally funded organizations of all sizes to develop employee benefits and total rewards packages. Her background includes working with some of the largest municipalities and schools in the state, along with consulting many private companies across a range of industries and sizes, from small businesses to Fortune Global 200 employers. Recent projects include health system and physician partnerships with risk sharing arrangements, onsite and near-site clinic strategies. specialty/carve-out benefit plans. and Rx Collective/Pool arrangements. Betty is known for her creativity and thought leadership, pioneering strategic partnerships with local health systems and physicians in rural communities, resulting in lower healthcare costs and a better patient experience. Before joining Gallagher. Betty worked for other professional services firms as well as for both the health insurer and employer 33 I(2026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. 46—) Gallagher Subject Matter Experts Pharmacy Consulting Matt Adams I Pharmacy & Health Plan Services a, Matt joined Gallagher Benefit Services, Inc. in September 2012 as a South-Central Underwriter after earning a B.S. in Actuarial Science from The University of Texas at Dallas. Since joining GBS in 2012, Matt has been an integral part of growing the SCR Pharmacy Department as well as assisting with the training and development of Junior Underwriters. Matt's primary responsibilities include data collection, communication and coordination with the bidding carriers, and evaluating the financial results generated by GBS' proprietary pricing model for all Pharmacy Benefit Manager(PBM) Procurements. Matt also conducts PBM Contract Reviews,Ad Hoc reporting, and routine analysis including but not limited to developing and maintaining intricate Rx dashboards, monitoring drug spend and utilization trends, ROI calculations for the consulting services we provide, and claims repricing. Compliance Attorney Andrew Malahowski, J.D. I Compliance Counsel Andrew Malahowski joined Gallagher's Dallas, Texas office in 2014. Andrew was previously a partner with an IF employment and benefits law firm in Chicago, Illinois. where he represented both public and private sector ` employers in a broad range of employee benefits matters. Over a 19-year legal career, his counseling experience includes the design and administration of employee benefit plans, and he has counseled clients with respect to compliance obligations under ERISA, PPACA, COBRA; HIPAA. and various other employee benefits laws and regulations. As Compliance Counsel.. he assists the many Gallagher offices with both day-to-day and strategic compliance que Gallagher's stions related to health and welfare plans. He has also assisted clients with benefit plan audits and filings with the IRS and DOL. Andrew's additional experience from his prior law practice allows him to strategize with clients on other angles affecting their employee benefit plans, such as collective bargaining, worker classification. and the management of employee leaves of absence. Underwriting & Actuarial Practice Ryan Beasley I Financial & Actuarial Consulting Manager Ryan Beasley is a Financial Benefits Consulting Manager with more than 16 years of experience consulting employers to develop and maintain top-tier health benefits packages. With expertise in healthcare networks and funding arrangements. Ryan helps employers identify opportunities in the ever-changing market conditions that impact their health and welfare plans from both a cost and clinical perspective. He has worked with private and public entities, including experience with Taft Hartley/Union Negotiations. As an account lead and subject expert in financial and clinical strategies for self-funded clients, Ryan's primary goal is to identify opportunities that optimize clients' health and welfare plans. He is responsible for building enterprise tools and resources for financial planning, tracking, analysis, benchmark comparisons, and other ad- hoc tools needed companywide. Additionally, Ryan leads the North and Central Texas actuarial and underwriting teams, training and equipping junior staff for career growth. Before his current role. Ryan served as a Senior Financial Consultant.. creating and maintaining client-specific financial budgets for health and welfare benefits. He collaborated with client account teams to provide industry- leading strategy and design for self-funded health plans. His impact and contributions to large self-funded organizations are highly recognized in Dallas and nationwide. Ryan holds a bachelors degree in accounting and finance from Abilene Christian University, where he honed his skills in financial analysis. modeling, cross-functional team leadership. benefits design, and healthcare. 34 (D2026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. Gallagher Physical & Emotional Wellbeing Carol Colley I Senior Physical & Emotional Wellbeing Consultant As a Senior Physical & Emotional Wellbeing Consultant, Carol, helps clients with strategies to improve the wellbeing of their employees. Among her knowledge and skill set she has used her personal experience with musculoskeletal, (MSK); vendors to help clients find the best fit to lower their MSK spend. She is an active member of a leading MSK vendor consultant partner council, Carol brings her previous vendor experience to Gallagher, where she had extensive experience helping energy and healthcare clients with their wellbeing strategies. As a Senior consultant, Carol provides consulting to internal teams and clients in regards to physical and emotional wellbeing initiatives, trends and solutions. She is a team lead and mentors other team members across the country. Experience Carol began her career focused on fitness which quickly evolved to wellness. The combination of vendor space work, onsite coordination and training and development helps Carol in her role with Gallagher. During her time in the vendor space she lead. developed and supported all global wellness initiatives for top tier clients in the technology, healthcare and energy industries as a Dedicated Client Service Director. Her leadership role resulted in client retention and a reduction in employee turnover amongst her teams. She joined Gallagher in 2015. In addition to her work with Gallagher, Carol is very active in her community participating in local boot camps, soccer leagues and skills coaching. Her knowledge, passion and commitment to wellbeing help her understand client's goals and guide them to success. Education and Professional Designation Stephen F. Austin State University B.S., Kinesiology Voluntary Benefits Consulting Lindsey Shirey I Voluntary Benefits Consultant Lindsey joined Gallagher Benefit Services, Inc. in May 2019 as the Voluntary Benefits Consultant in the Dallas. Texas branch. Lindsey previously worked for Unum as a Senior Sales Consultant. Lindsey has extensive experience with Voluntary Benefits, Life Insurance, Long Term Disability, Short Term Disability, FMLA and PFL. She also has great understanding around the integration of technology and plan designs for Voluntary Benefits. Lindsey's focus is on new business development and the growth of current clients. She seeks to understand each client's unique needs and objectives, through building and maintaining a trusting and genuine relationship with each client. Lindsey's dedication to a well-planned strategy makes her a trusted consultant to her clients. Lindsey graduated from the University of Arkansas in Fayetteville with a Bachelor of Science degree in Biology. 35 1 02026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. tu) Gallagher C. Segment 3 — Cost Proposal : Informatil ulI described in the following subsections is required from each Proposer. Your method of costing may or may not be used but should be described. A firm fixed price or not-to-exceed Contract is contemplated. i. The Proposer shall submit pricing in the form of a monthly flat fee for consulting services. The monthly fee shall include all labor, materials, administrative costs, travel, and any other expenses required to fully perform the services outlined in the Scope of Work. 1) The City does not anticipate or authorize additional line items, pass-through costs, or miscellaneous fees beyond the proposed monthly flat fee. Invoices shall reflect only the approved monthly fee unless otherwise authorized in writing by the City. 2) Proposers may describe their pricing methodology; however, the proposed pricing shall be presented as a single, all-inclusive monthly amount. Service V, Cost 1 Core Consulting Fee annus 0—fixed annual Market Standard Voluntary Benefit Consulting Commissions for Voluntary Benefits Discount Analysis Included Renewal Projections&Rate Structure Analysis Included Actuarial Assistance Included Underwriting Assistance Included Unlimited Compliance Support Included i Network Negotiation&Consulting Included 36 (;2026 Arthur J.Gallagher&Co. CONFIDENTIAL. FOR INSTITUTIONAL USE ONLY. ' d Gallagher 9 Annual Texas Public Sector Benchmark Report Included 10 RFP Creation&Analysis Included 11 Wellness Consulting 'Included 12 OPEB Support Included 13 Ad Hoc Reporting and Analysis Included $60,000-annual Total Direct Cost to the City: As a routine practice Gallagher can also negotiate various carrier credits to support City projects, a few examples include communication,wellbeing and engagement,technology, and implementation credits. iii. OPTIONAL Pharmacy Benefits Consulting- Contractor shall provide pricing schedule if applicable. A respondent's decision not to propose on this optional service shall not impact the evaluation or consideration of the respondent's proposal. 1 PBM Audit Services(Cost typically paid by the awarded PBM),as needed* $45,000 PBM Consulting(Cost typically paid by the awarded PBM), as needed* $55,000 Medical Claims Audit* $40,000 Dependent Audit* $40,000 *additional services may not be applicable for any given year. Oftentimes these fees can be paid, for example. by the winning PBM or TPA and do not reflect a direct cost to the City. 37 1 C-2026 Arthur J.Gallagher&Co. r CONFIDENTIAL.FOR INSTITUTIONAL USE ONLY. Gallagher Statement of Compliance Gallagher Benefit Services, Inc. holds business entity insurance licenses in all 50 states and the District of Columbia, and serves the employee benefits needs of clients through more than 170 offices worldwide. 38 1©2026 Arthur J.Gallagher&Co. Gallagher Insurance Risk Management Consulting Gallagher is pleased to submit this proposal to you. While this proposal is not meant to constitute a formal offer, acceptance, or contract, notwithstanding anything to the contrary contained in the proposal. Gallagher is submitting this proposal with the understanding the parties would negotiate and sign a contract containing terms and conditions that are mutually acceptable to both parties. This material was created to provide accurate and reliable information on the subjects covered by should not be regarded as a complete analysis of these subjects. It is not to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation. Consulting and insurance brokerage services to be provided by Gallagher Benefit Services. Inc. and/or its affiliate Gallagher Benefit Services(Canada)Group Inc. Gallagher Benefit Services, Inc.. a non-investment firm and subsidiary of Arthur J. Gallagher&Co., is a licensed insurance agency that does business in California as"Gallagher Benefit Services of California Insurance Services" and in Massachusetts as"Gallagher Benefit Insurance Services. Attachment C- Bid Sheet Employee Health Benefits Consulting Services RFP 26-004-Best and Final Offer with the solicitation documents contained in RFP 26-004 Employee Health Benefits Consulting Services.The Respondent acknowledges that they have received and read the entire solicitation packet,attachments,and all documents incorporated by reference,and agrees to be bound by the terms therein. Special Instructions:All prices must be quoted in order to be considered responsive,be advised that exceptions taken to any portion of the solicitation will jeopardize acceptance of the bid.Alternative bids will not be considered and unauthorized modifications to the bid sheet format will result in the rejection of the bid.The City reserves the right to purchase more or less than the quantities indicated below Section I: Employee Health Benefits Consulting Services No. Description Estimated Unit Unit Cost Extended Total Quantity 1 Flat Monthly Fee 60 Month $4,166.66 $249,999.60 Annual Totall $50,000.00 Section II: OPTIONAL: Pharmacy Benefits Consulting Services 2 Please Provide Pricing Schedule as a separate attachment if applicable COMPANY NAME: Gallagher Benefit Services PRINTED NAME: Natalie Haskett PHONE NUMBER: 830-388-6547 EMAIL ADDRESS: natalie haskettC@aig.com Soft ATTACHMENT A SOLCITATION SUBMITTAL FORM AND EXECUTION NOTE: RESPONDENTS SHALL COMPLETE, SIGN, AND UPLOAD THIS ATTACHMENT WITH THEIR SUBMITTAL IN BONFIRE. FAILURE TO DO SO MAY RESULT IN DISQUALIFICATION OF THE SUBMITTAL. By signature hereon,the Respondent certifies that: All statements, pricing and information prepared and submitted to the City's Bonfire portal in response to this solicitation are current, complete, and accurate. He/she has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gift, loan gratuity, special discount, trip, favor, or service to a City employee, evaluator, or evaluating entity in connection with the submitted response. Signing the Execution of Solicitation Submittal Form with a false statement shall void the submitted offer or any resulting contracts. Respondent represents and warrants that the individual signing this Execution of Solicitation Submittal Form is authorized to sign this document, represent the Respondent and to bind the Respondent under any contract resulting from this submittal. RESPONDENT(COMPANY): Gallagher. nefit Services, Inc. SIGNATURE (INK/DIGITAL): NAME (TYPED/PRINTED): James Wright TITLE: Area President DATE: 1/27/2026 STREET: 9442 Capital of Texas Highway North, Suite 950 CITY/STATE/ZIP: Austin, TX 78759 TELEPHONE & FAX NO.: Phone: (512) 499-8005 Fax: (512) 499-0412 E-MAIL ADDRESS: james_wright@ajg.com FEDERAL TAX IDENTIFICATION NUMBER(FIN): 36-4291971 By submitting a response to this solicitation, the Respondent agrees that the City's Definitions and Standard Terms and Conditions, in effect at the time of release of the solicitation, shall govern unless specifically provided otherwise in a separate agreement or on the face of a purchase order. In addition, the Supplemental Terms and Conditions listed in Section III, shall also be enforced as part of the contract, and can be obtained from the City's website at: https://www.roundrocktexas.gov/city-businesses/solicitations/ ATTACHMENT B REFERENCE SHEET PLEASE COMPLETE AND RETURN THIS FORM WITH THE SOLICITATION RESPONSE SOLICITATION NUMBER: RFP 25-004 RESPONDENT'S NAME: Gallagher Benefit Services,Inc. DATE: 2/10/2026 Provide the name, address, telephone number and E-MAIL of at least three (3) valid Municipal, Government agencies or firms of comparable size that have utilized services that are similar in type and capacity within the last two (2)years. City of Round Rock references are not applicable. References may be checked prior to award. If references cannot be confirmed or if any negative responses are received it may result in the disqualification of submittal. 1. Company's Name City of Laredo Name of Contact Linda Teniente Title of Contact Director of Human Resources E-Mail Address Lteniente(a)ci.laredo.tx.us Present Address 1110 Houston St. City, State, Zip Code Laredo,TX 78040 Telephone Number ( 956 ) 791-7362 Fax Number: ( ) 2. Company's Name City of Galveston Name of Contact Beverly west Title of Contact Human Resources and Civil Service E-Mail Address bwestagalvestontx.gov Present Address 823 Rosenberg City, State, Zip Code Galveston,TX 77550 Telephone Number ( 409 ) 797-3655 Fax Number: ( ) 3. Company's Name City of Luling Name of Contact Mark McLaughlin Title of Contact City Manager E-Mail Address mmclaughlin(a)citvofluling.net Present Address 509 E Crockett St City, State, Zip Code Luling,TX 78648 Telephone Number ( 830 ) 875-2481 Fax Number: ( ) FAILURE TO PROVIDE THE REQUIRED INFORMATION WITH THE SOLICITATION RESPONSE MAY AUTOMATICALLY DISQUALIFY THE RESPONSE FROM CONSIDERATION FOR AWARD. ROUND ROCK TEXAS PURCHASING UNISION ADDENDUM CITY OF ROUND ROCK, TEXAS Solicitation: RFP 26-004 Addendum No: 1 Date of Addendum: 1/20/26 This addendum is to incorporate the following changes to the above referenced solicitation: I. Added Attachment:Attachment G: R-13-03-28-F5 has been added to the solicitation packet and public documents in Bonfire. This attachment is referenced in the Q&A. II. Questions: Q1: Do you require a member of our team to have CAS credentials for the actuarial services you require? Al: It's not required but is preferred. Q2: There are no questions about wellness in the questionnaire. Should respondents highlight their approach to total wellbeing? A2: Yes, identify how you will partner with the City of Round Rock for employee wellness. Q3: Please provide details around on-site clinic such as utilization, scope of services provided, and how the clinic is included in health plan design. A3: Primary and acute care and occupational health services are provided to employees; primary care and acute care provided to spouses and children. Utilization is at 60% of capacity. RockCare is in-network with both health plans and claims are submitted as $0.00 to health plan carrier to include in reporting and analysis. Q4: Please define critical areas of administrative support needed to conduct day-to-day business and any additional support areas desired that might not be addressed today. A4: Day to Day assistance would include assisting and supporting the City with vendor communication and issues and attending meetings/calls. Q5: Please describe the current workforce demographics for the City of Round Rock. How does your population break down by divisions/departments? If allowable, please provide a census organized by departments, employment classification (hourly versus salary). A5: The City has 14 departments and the Human Resources Department provides benefits administration to all departments and employees. The City is not providing an employee census as part of this RFP. Q6: What is your retiree population size? A6: 37 enrolled retirees with 10 dependents enrolled (total of 47 members in retiree group) Q7: Please provide a copy of your current interlocal agreement referenced in the RFP and if possible, current partners under this agreement. A7: A copy of our current general interlocal agreement has been added. However, Texas Chapter 791 allows any local entity to enter into such an agreement at any time. This does not obligate a contracted vendor to participate. Q8: Please define the City of Round Rock's short term and long-term benefits goals. What role does finance play in these goals?Are there any other decision makers outside of City leadership that will be involved in making these decisions? A8: Overall, our main goal is to provide the best and most cost-effective benefits to our employees. We will partner with the selected vendor to review, revise and define further as needed. The Finance Department assists in the review and finalization of our self-funded health budget. The City Manager's Office is involved in the decision-making process and City Council approval is sought when required III. ALL OTHER TERMS AND CONDITIONS REMAIN THE SAME. By the publication of this document on the City of Round Rock Bonfire website this addendum is hereby incorporated into and made a part of the above referenced solicitation.