health insurance request for proposal city of san angelo - issued july, 2011

7/28/2019 Health Insurance Request for Proposal City of San Angelo - Issued July, 2011

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Request for ProposalCity of San Angelo

Human ResourcesBenefit Plans

Group Medical, Dental, Prescription Drug, Vision,

FSA, Over 65 Retiree, Life

CITY OF SAN ANGELO106S.CHADBOURNE STREET

SANANGELO,TEXAS 76902

SUBMITTAL DEADLINE

August 19, 2011, 2:00 pm

RFP No. HR-02-11


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TABLE OF CONTENTS

Section PageGENERAL................................................................................................................................................................... 1DOCUMENT,PLANS AND SPECIFICATIONSAVAILABILITY......................................................................................... 1DIGITALFORMAT...................................................................................................................................................... 1INTERPRETATIONS .................................................................................................................................................... 1ORGANIZATIONPROFILE .......................................................................................................................................... 2ELIGIBILITY.............................................................................................................................................................. 3PLANEFFECTIVEDATE ............................................................................................................................................ 3COMMISSIONS/BROKER OFRECORD ......................................................................................................................... 3CONFIDENTIALITY..................................................................................................................................................... 4AWARD OF CONTRACT............................................................................................................................................... 4ACCEPTANCE OFPROPOSAL CONTENT..................................................................................................................... 4EQUALEMPLOYMENTOPPORTUNITY........................................................................................................................ 4

DEADLINE AND DELIVERY LOCATION ............................................................................................................ 7DEADLINE ................................................................................................................................................................. 7COPIES ...................................................................................................................................................................... 7SEALEDENVELOPEADDRESSING.............................................................................................................................. 7DELIVERYENVELOPEADDRESSING.......................................................................................................................... 7DELIVERYADDRESSES .............................................................................................................................................. 7POINTS OF CONTACT................................................................................................................................................. 7

SCOPE OF SERVICES REQUESTED ..................................................................................................................... 9

SCOPE OF WORK....................................................................................................................................................... 9CONTRACTTERMS..................................................................................................................................................... 9

PROPOSAL FORMAT ............................................................................................................................................. 11

GENERAL................................................................................................................................................................. 11LETTER OF TRANSMITTAL....................................................................................................................................... 11TABLE OF CONTENTS .............................................................................................................................................. 11

SELECTION PROCESS .......................................................................................................................................... 13

SELECTIONCRITERIA.............................................................................................................................................. 13

DISCLOSURE OF CERTAIN RELATIONSHIPS ................................................................................................ 15

DEBARMENT AND SUSPENSION CERTIFICATION ...................................................................................... 19

LETTER OF INTEREST ......................................................................................................................................... 21


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CITY OF SAN ANGELOPURCHASINGDIVISION

P.O. Box 1751, San Angelo, Texas 76902-1751Tel: (325) 657-4219

RFP: HR-02-11/Benefits Page 1

Introduction

General

The City of San Angelo, Human Resources Division is accepting proposals for Benefit

Plans relating to Group Medical, Dental, Prescription Drug, Vision,FSA, Over 65 Retiree, Life

Document, Plans and Specifications Availability

Contract documents, including plans and specifications are available and may be examinedwithout charge in the Purchasing Department, 106 South Chadbourne, Room 204, San

Angelo, Texas.

Bid documents, plans, and specifications may be obtained at the Purchasing Department,

106 South. Chadbourne, Room 204, or they may be downloaded at the Citys website at:

1. www.sanangelotexas.us2. City Departments3. Purchasing4. Bid Information5. 2011 Bidding Opportunities

Digital Format

If Respondents obtained the bid specifications in digital format in order to prepare a

proposal, the bid must be submitted in hard copy according to the instructions contained inthis bid package. If, in its bid response, Respondents makes any changes whatsoever to thepublished bid specifications, the bid specification as published shall control. Furthermore,

if an alteration of any kind to the bid specification is discovered after the contract is

executed and is or is not being performed the contract is subject to immediate cancellation

without recourse.

Interpretations

All questions about the meaning or intent of the Contract Documents shall be submitted to

the City in writing at least 10 days prior to bid opening date to Roger Banks at

[email protected]. No phones calls regarding this RFP will be accepted.Replies to written questions will be issued by Addenda mailed, faxed, emailed, or delivered

to all parties recorded by the City as having received the bid documents. Questions

received less than ten days prior to the date for opening of Bids will not be answered. Onlyquestions answered by formal written Addenda will be binding. Oral interpretations or

clarifications will be without legal effect.
mailto:[email protected]?subject=RFP:%20HR-02-09%20Questionmailto:[email protected]?subject=RFP:%20HR-02-09%20Question


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Organization Profile

San Angelo (hereinafter referred to as City) is the largest city in Tom Green County with

a population of approximately 90,000, which provides for a Council-Manager form of

government. The Citys operations are located solely in the State of Texas. The City hastwelve (12) departments, forty-six (46) divisions and employs a total of approximately 940

full-time employees and an additional 44 employees who work for outside entities

(Chamber of Commerce, Museum of Fine Arts, Public Housing Authority, and Credit

Union).

The City of San Angelo has retained the services of Holmes Murphy to assist them in

analyzing vendor pricing, service and capabilities for their medical and prescription drugprogram, Vision, Life, FSA, and over 65 retirees plan. The Citys current vendors are as

indicated below:

Medical and Rx - BCBS of TX Out of Rate Guarantee, up for normal renewal Dental - United Concordia, Out of Rate Guarantee, up for normal renewal

Vision - Ameritas Out of Rate Guarantee, up for normal renewal

FSA- Healthsmart Out of Rate Guarantee, up for normal renewal

Over 65 Retiree Hartford Out of Rate Guarantee, up for normal renewal

Life Madison National Vendor no longer offering life plans in the state of Texas

A summary of the benefits and eligibility provisions are included in this RFP.

The City has been working diligently to come up with solutions to increase the overall

health of its employees. This year, the City is implementing a mandatory wellnessscreening that will provide incentives to participating employees in addition to the

utilization of the Naturally Slim program for employees with Metabolic Syndrome. Whilethe City understands that realized savings may not come into play immediately, it would

ask that any medical vendors would consider the long term effects of wellness on the

overall employee population in underwriting of the City.

Proposals should include the value assigned for these wellness efforts in year one (1) and

year two (2).

Objectives

The City of San Angelo is seeking proposals from organizations (hereinafter referred to as

vendor) for the following medical and prescription drug plan options, Dental, Vision,

FSA, Over 65 Retiree and Life plans.

a. Self-funded group medical program

Proposals should include four (4) options:


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Option 1 should be the current plan design.

Option 2 should be a consumer driven option with no increase to current cost.

Option 3 should be a low cost option.

Option 4 should be the best recommendation that the Vendor can offer to the

City. There should be no limit to the creativity of the plan.

The City of San Angelo is not interested in increasing costs. One of the options

submitted must be below the current program cost.

b. Self-funded group prescription drug program

c. Life is currently in a rate guarantee; however, the current vendor will no longer be

offering services to Texas based clients. Vendors are encouraged to maintain current ratesor provide lower rates.

Eligibility

All full-time employees, working at least 30 hours per week, are eligible to participate inthe Citys benefits plan. All eligible dependents of active employees are allowed to elect

health and dental coverage, provided the employee has also elected those coverages.

Dependent children who are under 25 years old are eligible, regardless of student status.Medical and prescription drug benefits are also available for COBRA continuation.

All current eligible retirees (under 65) and their eligible spouses and widowed eligible

spouses currently participating in the City Medical Plan will be eligible.

Plan Effective Date

January 1, 2012

Commissions/Broker of Record

Please do not include commissions in your proposal. Holmes Murphy is the

consultant/broker of record for the City of San Angelo.

Disqualification

Disqualification may occur for any of the following reasons:

The respondent is involved in any litigation against the City of San Angelo;

The respondent is in arrears on any existing contract or has defaulted on a previouscontract with the City;


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The respondent is debarred, suspended, or otherwise excluded from or ineligible forparticipation in State or Federal assistance programs.

Confidentiality

All proposals submitted shall remain confidential. After award, proposals will be madeavailable for public inspection. The City shall not be responsible for the confidentiality ofany trade secrets or other information contained or disclosed in the proposal unless clearly

identified as such.

Award of Contract

The City reserves the right to accept or reject any or all proposals, and to waive any

informalities or irregularities in the RFP process. The City is an equal opportunityemployer.

The City will select the most highly qualified respondent(s) of the requested services basedon demonstrated competence and qualifications and then attempt to negotiate with

respondent(s) a contract(s) at a fair and reasonable price.

Acceptance of Proposal Content

Before submitting a proposal, each Respondent shall make all investigations and

examinations necessary to ascertain all conditions and requirements affecting theperformance of the contract and to verify any representations made by the City upon which

the proposal will rely. If the Respondent receives an off because of its proposal, failure to

have made such investigation and examinations will in no way relieve the Respondent from

its obligation to comply in every detail with all provisions and requirements.

Equal Employment Opportunity

Attention of Respondents to the requirement for ensuring that employees and applicants foremployment are not discriminated against because of their race, color, religion, sex,

national origin, age, disability or political affiliation or belief.


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TimeLine

The estimated timeline for specifications is noted below and followed by the detailed

requirements.

Bid Issue: July 8, 2011

First Publication: July 8, 2011

Second Publication July 15, 2011

Questions in Writing: August 1, 2011

Response to Vendor

Questions:

August 8, 2011

Due Date: August 19, 2011

Notification of

Finalist:

September 30,

2011

Tentative Council Approval: October 4, 2011

Contract/Services Effective: January 1,2012


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CITYOFSANANGELOPURCHASINGDIVISION

P.O.BOX 1751,SANANGELO,TEXAS 76902


Deadline and Delivery Location

Deadline

Sealed submittals must be received and time stamped by 2:00 PM, Local Time, August 19,

2011. The clock located in Purchasing will be the official time. It is the sole responsibilityof the respondent to ensure that the sealed RFP submittal arrives at the above location by

specified deadline. Faxed or emailed file submittals will not be accepted.

Copies

Three (3) Electronic Submissions are required (compact disc or flash drive) and the

Attachments must be in a Microsoft Excel Format. Three (3) paper copies (1 original and 2copies) of the proposal must also be included. Materials must be submitted in a sealed

envelope and addressed as reflected below:

Sealed Envelope Addressing

Lower Left Hand Corner: RFP:HR-02-11 Group Medical, Rx, Dental, Vision, FSA, Over

65 Retiree, Life

Delivery Envelope Addressing

Mark delivery envelope: RFP Enclosed.

Delivery Addresses

USPS Delivery Services

Purchasing Division-RFP HR0211 Purchasing Division-RFP HR0211City of San Angelo City of San Angelo

P.O. Box 1751 106 S. Chadbourne Street

San Angelo, Texas 76902-1751 San Angelo, Texas 76902

Points of Contact

Roger S. Banks, Manager

City of San AngeloPurchasing Division

P.O. Box 1751

San Angelo Texas, 76902-1751Email: [email protected]

Telephone: (325) 657-4220

Julie Rickman

Account ExecutiveHolmes Murphy & Associates

3333 Lee Parkway, Suite 900

Dallas, TX 75219Phone: 214-265-6309

Fax: (214) 346-6799

E-mail: [email protected]
mailto:[email protected]?subject=RFP:%20HR-02-09%20Questionmailto:[email protected]?subject=RFP:%20HR-02-09%20Question


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Scope of Services Requested

Scope of Work

The City shall require that the vendor provide all necessary services including, but not

limited to the following:

1. Maintain a fully automated claims adjudication system in compliance with electronictransmission standards and security requirements and all other regulations asrequired by HIPAA, provide WEB access to plan participants that allows for claim

status and offers various customer service functions.

2. Maintain records and management reports, including claims and accountinginformation as required by the contract.

3. Provide timely response to inquiries from plan participants and providers regardingeligibility and status of claim, correspondence, payment, and any other information

requested by such parties in a manner that will limit the Citys involvement in day-

to-day inquiries.

4. Prepare and review with the Human Resources staff, and print summary plandocuments, claim forms, and any other communication material as required by the

contract.

5. If vendor uses ID cards, the City prefers vendor to mail identification cards to theparticipants home address.

6. Deliver utilization reports. The City and its consultants need to be able to accessstandard reports online, preferably in excel format.

7. Provide online access to additional standard or ad hoc reports as needed by the City.If a specific report cannot be generated online, prepare and provide such to the Cityelectronically.

8. Meet with representatives of the Citys Human Resources Department as often asdeemed necessary by City.

Contract Terms

The City desires to receive proposals with a three (3) year rate guarantee. The contract will

be for one (1) year with two annual renewal options. Further extensions of the contract

may be made at the discretion of the City Manager.


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Proposal Format

General

Proposals shall be submitted in the following format with each element requested and/or

form furnished as specified to facilitate evaluation of the proposals. The detailedrequirements in this RFP are mandatory. Your answers should be straightforward and

responsive. Please avoid long responses. The answer to each question should be limited to

LESS than 250 words if possible.

You must respond to the questionnaire in the requested format in order for your

quote to be considered

Letter of Transmittal

A letter of transmittal must be submitted with a Respondents proposal. The letter mustinclude:

.

A statement of the respondents understanding of the services required by the Request forProposals and attached specifications.

A statement that the Respondent can and will furnish the required services in fullcompliance to the terms, conditions and specifications set forth in this RFP within the

designated time frames.

A statement of the Respondents status (i.e. corporation, partnership, other), and itsaffiliation with any other corporation or firm along with the names of the person(s)

authorized to make representations on behalf of the respondent, binding the firm to a

contract.

Table of Contents

The Table of Contents must indicate the material included in the proposal. The Table of

Contents of the respondent should mirror this section of the Citys Request for Proposalsand must include all items set forth in this section of the RFP.


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Required Attachments

All quoting vendors should complete the items pertaining to lines quoted in the excelspreadsheet. Please note that in order for your quote to be considered, you must complete

the questionnaire in the table provided and return your responses in excel format.

Quoting vendors do not have to quote on all products to be considered.

Quoting vendors may include additional information, flyers, brochures, etc in each tab of

their hard copy responses in addition to the completed required attachments.

You must provide proposed rates in the requested format in order for your quote to

be considered.

Deidentified Medical Census

For census information, please contact:

Julie Rickman

Account Executive

Holmes Murphy & Associates3333 Lee Parkway, Suite 900

Dallas, TX 75219

Phone: (214) 265-6309

Fax: (214) 346-6799E-mail: [email protected]

Veronica Sanchez

Human Resources

City of San AngeloP.O. Box 1751

San Angelo Texas, 76902-1751

Email: [email protected]

Telephone: (325) 657-4241

If you need a census and have not received it already, please request it from either one of the

two contacts above.


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Selection Process

All submittals shall be evaluated by a selection committee and those applicants selected forthe short list may be invited to attend an interview, at the applicants own expense.

The City will evaluate the quotes based on the price, coverage area, billing and technical

support. The City reserves the right to negotiate the final fee schedule prior to recommendingany respondent a contract.

Selection Criteria

The selection committee shall evaluate all proposals that are submitted. Selection ratings

will be based on a 100-point scale. Ranking will be as reflected below:

Item Criteria Points

1. Geo Access Report/Network 202. Discounts 253. Plan Design 104. Questionnaire Responses/ Services Provided 205. Proposed Rates 25

Total 100

Respondents are advised that the City reserves the right to evaluate and rank theproposals without input from the respondents. Therefore, proposals should be

complete as initially submitted. However, if you are selected for an interview, you willbe expected to present not only your proposal, rate plans, but also your approach toconversion.

City staff shall make a recommendation to City Council of the selection of the most

qualified respondent to enter into contract negotiations with the City.

The selected respondent shall enter into negotiations with the City for the services to be

performed.

If satisfactory negotiations cannot be concluded, the City reserves the right to negotiate

with the next highest-ranking respondent.

When services and fees are agreed upon, the selected respondent shall be offered a

contract subject to City Council approval.

Should negotiations be unsuccessful, the City shall enter into negotiations with the

next, highest ranked respondent until an agreement for services and fees are reached.

This process shall continue until an agreement is reached.


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This RFP does not commit the City to pay for any direct and/or indirect costs incurred

in the preparation and presentation of a response. All finalist(s) shall pay their owncosts incurred in preparing for, traveling to and attending the interviews. The City

reserves the right to accept or reject all or part of proposals.


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NOTICE TO VENDORS

Disclosure of Certain Relationships

Effective January 1, 2006, Chapter 176 of the Texas Local Government Code requires

that any vendor or person considering doing business with a local governmental entity make

certain disclosures concerning any affiliation or business relationship that might cause a conflict

of interest with the local governmental entity. The provisions of Chapter 176 and the Form CIQquestionnaire that you must complete to comply with this law, are available at the Texas Ethics

Commission website at http://www.ethics.state.tx.us/whasnew/confliict forms.htm.

A current list of City of San Angelo and City of San Angelo Development Corporations

officers is available in the office of the City of San Angelo City Clerks office located in Room

201 of City Hall or on the Citys website at http://sanangelotexas.org. If you are considering

doing business with the City of San Angelo or the City of San Angelo Development Corporationand have an affiliation or business relationship that requires you to submit a completed Form

CIQ, it must be filed with the records administrator (City Clerk) of the City of San Angelo no

later than the seventh (7th

) business day after the date you become aware of facts that require theform to be filed. See Section 176.006, Texas Local Government Code. It is a Class C

misdemeanor to violate this provision.

By Submitting a response to a City of San Angelo or City of San Angelo

Development Corporation Request for Proposals, Request for Bids, or Request for

Qualifications or by conducting business with either of those two entities, you are

representing that you are in compliance with the requirements of Chapter 176 of the Texas

Local Government Code.

Roger S. BanksPurchasing Manager


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Debarment and Suspension Certification

(1) The prospective primary participant certifies to the best of its knowledge and belief that it and its

principals:

(a) Are not presently debarred, suspended, proposed for disbarment, declared ineligible, or

voluntarily excluded from covered transactions by any Federal department or agency;

(b) Have not within a three-year period preceding this application been convicted of or had acivil judgment rendered against them for commission of fraud or a criminal offense in

connection with obtaining, attempting to obtain, or performing a public (Federal, State, or

local) transaction or contract under a public transaction; violation of Federal or State

antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification ordestruction of records, making false statements, or receiving stolen property;

(c) Are not presently indicted for or otherwise criminally or civilly charged by agovernmental entity (Federal, State, or local) with commission of any of the offenses

enumerated in paragraph (1)(b) of this certification; and

(d) Have not within a three-year period preceding this application had one or more public

transactions (Federal, State, or local) terminated for cause or default.

(2) Where the prospective primary participant is unable to certify to any of the statements in thiscertification, such prospective primary participant shall attach an explanation to this proposal.

Business Name _________________________________________

__________________ By: ______________________________________

Date Name and Title of Authorized Representative

______________________________________

Signature of Authorized Representative


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Debarment and Suspension Certification

INSTRUCTIONS

1. By signing and submitting this proposal, the prospective participant is providing the certification set out

below.2. The inability of a person to provide the certification required below will not necessarily result in denial of

participation in this covered transaction. The prospective participant shall submit an explanation of why it

cannot provide the certification set out below. The certification or explanation will be considered inconnection with the determination whether to enter into this transaction. However, failure of the prospective

participant to furnish a certification or an explanation shall disqualify such person from participation in thistransaction.

3. The certification in this clause is a material representation of fact upon which reliance was placed when theCity of San Angelo determined to enter into this transaction. If it is later determined that the prospective

participant knowingly rendered an erroneous certification, in addition to other remedies available, the City of

San Angelo may terminate this transaction for cause.

4. The prospective participant shall provide immediate written notice to the City of San Angelo to which thisproposal is submitted if at any time the prospective participant learns that its certification was erroneous whensubmitted or has become erroneous because of changed circumstances.

5. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction,""participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," asused in this clause, have the meanings set out in the Definitions and Coverage sections of the rulesimplementing Executive Order 12549(13 CFR Part 145). You may contact the City of San Angelo for

assistance in obtaining a copy of these regulations.

6. The prospective participant agrees by submitting this proposal that, should the proposed transaction beentered into, it shall not knowingly enter into any lower tier covered transaction with a person who isdebarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered

transaction, unless authorized by the City of San Angelo.

7. The prospective participant further agrees by submitting this proposal that it will include the clause titled"Certification Regarding Debarment and Suspension" provided by the City of San Angelo, without

modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions.

8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tiercovered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the coveredtransaction, unless it knows that the certification is erroneous. A participant may decide the method andfrequency by which it determines the ineligibility of its principals. Each participant may, but is not required

to, check the Nonprocurement List.

9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in orderto render in good faith the certification required by this clause. The knowledge and information of a

participant is not required to exceed that which is normally possessed by a prudent person in the ordinarycourse of business dealings.

10.Except for transactions authorized under paragraph 6 of these instructions, if a participant in a coveredtransaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred,

ineligible, or voluntarily excluded from participation in this transaction, in addition to other remediesavailable to the City of San Angelo, the City of San Angelo may terminate this transaction for cause.


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Letter of InterestRFP No: HR-02-11/Group Medical, Rx, Dental, Vision, Over 65 Retiree and Life

The undersigned firm submits the following information in response to Request for Proposal (as amended by Addenda),

issued by the City of San Angelo, Texas (City) for a Group Medical, Prescription Drug and Stoploss program. This

proposal s includes:

Completed RFP Letter Of Interest form (REQUIRED) Completed Conflict Of Interest form (REQUIRED) Completed Debarment and Suspension Certificate (REQUIRED) Three (3) electronic copies of proposal (REQUIRED) Three (3) paper copies of proposal (REQUIRED)

Respondent is responsible for calling the City to determine if any addendums have been issued.

Respondent also understands that the City is not bound to select any proposals for the final pre-qualified list and may reject

any RFP submittal that the City receives.

Respondent further understands that all costs and expenses incurred by it in preparing this RFP and participating in thisprocess will be borne solely by the respondent, and that the RFP submittal materials will become the property of the City and

will not be returned.

Respondent agrees that the City will not be responsible for any errors, omissions, inaccuracies, or incomplete statements in

this RFP and accepts all terms of the RFP submittal process by signing this letter of interest and making the RFP submittal.

The respondent certifies, by submission of this proposal or acceptance of this contract, that neither it nor its principals is

presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this

transaction by any Federal or State departments or agencies.

Any offer submitted because of this RFP shall be binding on the Respondent for 90 calendar days following the specified

opening date. Any proposal for which the respondent specifies a shorter acceptance period may be rejected.

This RFP shall be governed by and construed in all respects according to the laws of the State of Texas.

FirmName:

Mailing Address:

City, State Zip Code:

Accts Receivable Address

City, State Zip Code

Tax ID:

Payment Terms:Telephone: FAX:

Email:

Authorized Signature:

Printed Name & Title: Date:

Attach W-9