TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 19, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order and enter into an agreement for Contract 16-RFP-04 Multi-year Benefits Consulting Services with Deloitte Consulting LLP in an amount not to exceed $217,500.00, Account 101-25000-612430, Requisition 1412337
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with Deloitte Consulting LLP to provide benefits consulting services for the period July 1, 2016 through June 30, 2019.
On January 20, 2016, Request for Proposal 16-RFP-04, Multi-year Benefits Consulting Services was publicly advertised. Seventy (70) firms were notified and thirty-five (35) requested proposal documents. On February 19, 2016, the District received three (3) responsive proposals from the following vendors: Deloitte Consulting LLP; Foster and Foster Consulting Actuaries, Inc. and Segal Consulting.
The proposals were evaluated by staff from the Human Resources Department and the Procurement and Materials Management Department. The criteria for these evaluations were outlined in Request for Proposal 16-RFP-04 and included: understanding of the project, approach to the work, technical competence, financial stability, personnel effectiveness, compliance with insurance requirements, submission of licenses/permits and cost. Following the preliminary evaluation of proposals, two (2) proposers were deemed to be finalists and were interviewed on April 4, 2016. A solicitation was sent to each finalist on April 7, 2016 for an unqualified “best and final” offer. The “best and final” offers were returned to the Director of Procurement and Materials Management on April 15, 2016.
Based on the evaluation of proposals and interviews, it is recommended that a purchase order be awarded to Deloitte Consulting LLP (Deloitte). Deloitte received the highest technical score among the proposers and was very competitively priced. It has significant benefits consulting experience in the public sector including work for the City of Chicago, Chicago Transit Authority, State of Illinois and Cook County. It also currently serves as the District’s benefits consultant. It is very familiar with the request for proposal process utilized by the District in selecting its medical, dental and life insurance providers having assisted the District in this area on past contracts. Deloitte has a strong focus on strategic planning and has been assisting the District in developing its own long-term plan for employee and retiree benefits. It has been instrumental in assisting the District with its evaluation of a Medicare Advantage Plan option for its retiree population and helping educate the retirees on this type of plan. Retaining Deloitte as a benefits consultant will provide continuity as the District moves into the next phase of this project. For these reasons, Deloitte is the best qualified vendor to provide these services.
The Diversity Section has reviewed the proposal and has concluded that Deloitte is in compliance with the District’s Affirmative Action Policy.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into an agreement with Deloitte Consulting LLP in the amount of $217,500.00.
Funds for the 2016 expenditure, in the amount of $83,000.00, are available in Account 101-25000-602430. The estimated expenditures are $83,000.00 in 2016, $82,500.00 in 2017, $22,500.00 in 2018 and $29,500.00 in 2019. Funds for the 2017 through 2019 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Recommended, Denice E. Korcal, Director of Human Resources
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 May 19, 2016