Request for Proposal

City of San Angelo

Human Resources
Benefit Plans Group Medical, Dental, Prescription Drug, Vision, FSA, Over 65 Retiree, Life

CITY OF SAN ANGELO

106 S. CHADBOURNE STREET SAN ANGELO, TEXAS 76902

SUBMITTAL DEADLINE August 19, 2011, 2:00 pm

RFP No. HR-02-11

TABLE OF CONTENTS
Section Page
GENERAL...................................................................................................................................................................1 DOCUMENT, PLANS AND SPECIFICATIONS AVAILABILITY .........................................................................................1 DIGITAL FORMAT ......................................................................................................................................................1 INTERPRETATIONS ....................................................................................................................................................1 ORGANIZATION PROFILE ..........................................................................................................................................2 ELIGIBILITY ..............................................................................................................................................................3 PLAN EFFECTIVE DATE ............................................................................................................................................3 COMMISSIONS/BROKER OF RECORD .........................................................................................................................3 CONFIDENTIALITY.....................................................................................................................................................4 AWARD OF CONTRACT ...............................................................................................................................................4 ACCEPTANCE OF PROPOSAL CONTENT .....................................................................................................................4 EQUAL EMPLOYMENT OPPORTUNITY ........................................................................................................................4 DEADLINE AND DELIVERY LOCATION ............................................................................................................7 DEADLINE .................................................................................................................................................................7 COPIES ......................................................................................................................................................................7 SEALED ENVELOPE ADDRESSING..............................................................................................................................7 DELIVERY ENVELOPE ADDRESSING ..........................................................................................................................7 DELIVERY ADDRESSES ..............................................................................................................................................7 POINTS OF CONTACT .................................................................................................................................................7 SCOPE OF SERVICES REQUESTED .....................................................................................................................9 SCOPE OF WORK .......................................................................................................................................................9 CONTRACT TERMS.....................................................................................................................................................9 PROPOSAL FORMAT ............................................................................................................................................. 11 GENERAL................................................................................................................................................................. 11 LETTER OF TRANSMITTAL ....................................................................................................................................... 11 TABLE OF CONTENTS .............................................................................................................................................. 11 SELECTION PROCESS .......................................................................................................................................... 13 SELECTION CRITERIA.............................................................................................................................................. 13 DISCLOSURE OF CERTAIN RELATIONSHIPS ................................................................................................ 15 DEBARMENT AND SUSPENSION CERTIFICATION ...................................................................................... 19 LETTER OF INTEREST ......................................................................................................................................... 21

CITY OF SAN ANGELO

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

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 examined without 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. 2. 3. 4. 5. www.sanangelotexas.us City Departments Purchasing Bid Information 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 in this bid package. If, in its bid response, Respondents makes any changes whatsoever to the published 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 roger.banks@sanangelotexas.us. 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. Only questions answered by formal written Addenda will be binding. Oral interpretations or clarifications will be without legal effect.

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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 has twelve (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 drug program, 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 wellness screening that will provide incentives to participating employees in addition to the utilization of the Naturally Slim program for employees with Metabolic Syndrome. While the 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: RFP: HR-02-11/Benefits Page 2

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 rates or provide lower rates.

Eligibility All full-time employees, working at least 30 hours per week, are eligible to participate in the 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. 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 previous contract with the City; RFP: HR-02-11/Benefits Page 3 Holmes Murphy is the

 The respondent is debarred, suspended, or otherwise excluded from or ineligible for participation in State or Federal assistance programs. Confidentiality All proposals submitted shall remain confidential. After award, proposals will be made available for public inspection. The City shall not be responsible for the confidentiality of any 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 opportunity employer. The City will select the most highly qualified respondent(s) of the requested services based on 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 the performance 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 for employment 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: First Publication: Second Publication Questions in Writing: Response to Vendor Questions: Due Date: Notification of Finalist: Tentative Council Approval: Contract/Services Effective: July 8, 2011 July 8, 2011 July 15, 2011 August 1, 2011 August 8, 2011 August 19, 2011 September 30, 2011 October 4, 2011 January 1,2012

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CITY OF SAN ANGELO

PURCHASING DIVISION P.O. BOX 1751, SAN ANGELO, 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 responsibility of 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 2 copies) 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 Purchasing Division-RFP HR0211 City of San Angelo P.O. Box 1751 San Angelo, Texas 76902-1751 Points of Contact Roger S. Banks, Manager City of San Angelo Purchasing Division P.O. Box 1751 San Angelo Texas, 76902-1751 Email: roger.banks@sanangelotexas.us Telephone: (325) 657-4220 Julie Rickman Account Executive Holmes Murphy & Associates 3333 Lee Parkway, Suite 900 Dallas, TX 75219 Phone: 214-265-6309 Fax: (214) 346-6799 E-mail: jrickman@holmesmurphy.com

Delivery Services Purchasing Division-RFP HR0211 City of San Angelo 106 S. Chadbourne Street San Angelo, Texas 76902

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CITY OF SAN ANGELO

PURCHASING DIVISION P.O. BOX 1751, SAN ANGELO, TEXAS 76902

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 electronic transmission standards and security requirements and all other regulations as required by HIPAA, provide WEB access to plan participants that allows for claim status and offers various customer service functions. Maintain records and management reports, including claims and accounting information as required by the contract. Provide timely response to inquiries from plan participants and providers regarding eligibility and status of claim, correspondence, payment, and any other information requested by such parties in a manner that will limit the Citys involvement in dayto-day inquiries. Prepare and review with the Human Resources staff, and print summary plan documents, claim forms, and any other communication material as required by the contract. If vendor uses ID cards, the City prefers vendor to mail identification cards to the participants home address. Deliver utilization reports. The City and its consultants need to be able to access standard reports online, preferably in excel format. 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 City electronically. Meet with representatives of the Citys Human Resources Department as often as deemed necessary by City.

2.

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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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CITY OF SAN ANGELO

PURCHASING DIVISION P.O. BOX 1751, SAN ANGELO, TEXAS 76902

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 detailed requirements 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 must include:
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A statement of the respondents understanding of the services required by the Request for Proposals and attached specifications. A statement that the Respondent can and will furnish the required services in full compliance 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 its affiliation 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 Proposals and 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 excel spreadsheet. 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 & Associates 3333 Lee Parkway, Suite 900 Dallas, TX 75219 Phone: (214) 265-6309 Fax: (214) 346-6799 E-mail: jrickman@holmesmurphy.com Veronica Sanchez Human Resources City of San Angelo P.O. Box 1751 San Angelo Texas, 76902-1751 Email: veronica.sanchez@sanangelotexas.us 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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CITY OF SAN ANGELO

PURCHASING DIVISION P.O. BOX 1751, SAN ANGELO, TEXAS 76902

Selection Process
All submittals shall be evaluated by a selection committee and those applicants selected for the 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 recommending any 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 1. 2. 3. 4. 5. Criteria Geo Access Report/Network Discounts Plan Design Questionnaire Responses/ Services Provided Proposed Rates Total Points 20 25 10 20 25 100

Respondents are advised that the City reserves the right to evaluate and rank the proposals without input from the respondents. Therefore, proposals should be complete as initially submitted. However, if you are selected for an interview, you will be expected to present not only your proposal, rate plans, but also your approach to conversion. 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. RFP: HR-02-11/Benefits Page 13

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 own costs 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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CITY OF SAN ANGELO

PURCHASING DIVISION P.O. BOX 1751, SAN ANGELO, TEXAS 76902

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 CIQ questionnaire 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 Corporation and 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 the form 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. Banks Purchasing Manager

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CITY OF SAN ANGELO

PURCHASING DIVISION P.O. BOX 1751, SAN ANGELO, TEXAS 76902

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CITY OF SAN ANGELO

PURCHASING DIVISION P.O. BOX 1751, SAN ANGELO, TEXAS 76902

Debarment and Suspension Certification

(1) The prospective primary participant certifies to the best of its knowledge and belief that it and its principals: (a) (b) Are not presently debarred, suspended, proposed for disbarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; Have not within a three-year period preceding this application been convicted of or had a civil 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 or destruction of records, making false statements, or receiving stolen property; Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and 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.

(c)

(d)

(2)

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

Business Name _________________________________________

__________________ Date

By: ______________________________________ 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 in connection 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 this transaction. 3. The certification in this clause is a material representation of fact upon which reliance was placed when the City 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 this proposal is submitted if at any time the prospective participant learns that its certification was erroneous when submitted 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," as used in this clause, have the meanings set out in the Definitions and Coverage sections of the rules implementing 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 be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, 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 tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency 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 order to 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 ordinary course of business dealings. 10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction 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 remedies available to the City of San Angelo, the City of San Angelo may terminate this transaction for cause.

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CITY OF SAN ANGELO

PURCHASING DIVISION P.O. BOX 1751, SAN ANGELO, TEXAS 76902

Letter of Interest
RFP 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 this process 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.

Firm Name: Mailing Address: City, State Zip Code: Accts Receivable Address City, State Zip Code Tax ID: Payment Terms: Telephone: Email: Authorized Signature: Printed Name & Title:

FAX:

Date: Attach W-9

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