TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2014
COMMITTEE ON Procurement
Mr. David St. Pierre, Executive Director
Title
Issue purchase order and enter into an agreement for Contract 14-RFP-33 Insurance Broker Services for a three-year period with Mesirow Insurance Services, Inc. in an amount not to exceed $98,700.00 Account 101-25000-601170, Requisition 1384296
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement for Contract 14-RFP-33 Insurance Broker Services with Mesirow Insurance Services, Inc. for the handling of its Fiduciary Liability, Marine Liability, Government Crime, Group Business Travel Accident, Group Term Life, and special events coverage. Mesirow would also handle Cyber Liability and Environmental Liability, if and when the District elects to purchase those insurance coverages.
Request for Proposal 14-RFP-33 was advertised on September 17, 2014, and 74 companies were notified. Proposal documents were requested by 20 companies, resulting in five firms: Mesirow Insurance Services, Inc., Kamm Insurance Group, Inc., Lambent Risk Management Services, Inc., The Horton Group, Inc., and McLarens, Inc. submitting bids on October 10, 2014.
An evaluation committee consisting of personnel from the Human Resources Department (including Risk Management and Safety) and a representative from the Procurement and Materials Management Department evaluated the proposals based on understanding of the project, proposed approach to the work, technical competence, and the ability to meet the District's requirements. It was the consensus of the committee that, with the exception of McLarens, Inc., all proposers were qualified to perform the work. The proposal from McLarens, Inc. was deemed to be non-responsive to the requirements of 14-RFP-33. The Horton Group, Inc. subsequently formally withdrew its proposal prior to being interviewed.
Three firms were interviewed, and each was invited to submit a best and final offer. Upon completion of this process, Mesirow Insurance Services, Inc. (Mesirow) received the highest rating.
Mesirow exhibited significant and superior expertise, experience and resources in the areas of overage subject to 14-RFP-33. Mesirow is a well-established financial and insurance brokerage services firm, with more than 40 years in the insurance industry. An independent, employee owned organization, Mesirow has a dedicated practice for public entity business and handles the largest book of taxing body clients in Illinois, including more than 136 public entity clients served out of its Chicago office. Mesirow has significant experience handling insurance programs for public entities with complex risk profiles and is extremely well suited to provide the required brokerage services to the District.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into an agreement with Mesirow Insurance Services, Inc. for professional broker services, in an amount not to exceed $98,700.00.
The estimated expenditures for 2015, 2016 and 2017 for Mesirow Insurance Services, Inc. are $32,900.00, $32,900.00 and $32,900.00, respectively.
Funds for the 2015, 2016, and 2017 expenditures will be budgeted in Account 101-25000-601170 and will be contingent on the Board of Commissioners' approval of the District's budget for those years.
Requested, Denice E. Korcal, Director of Human Resources, DEK:RAJ
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 18, 2014