TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 7, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order to Mesirow Insurance Services, Inc. for Furnishing Government Crime Insurance Coverage for the District in an amount not to exceed $44,913.00, Account 101-25000-612290, Requisition 1615577
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Dear Sir:
At the Board Meeting of December 1, 2022, in accordance with Contract 22-RFP-12, the Board of Commissioners awarded a purchase order to Mesirow Insurance Services, Inc. (Mesirow) to serve as the District's broker-of-record for government crime insurance and related services for a three-year period. In this capacity, Mesirow has responsibility for securing quotes from the insurance market for the government crime insurance policy. The current government crime insurance policy will expire on April 1, 2024.
On February 9, 2024, the District received certain bid quotations for this coverage which Mesirow had solicited pursuant to the detailed specifications and the application for insurance for a three-year period to be effective April 1, 2024. Quotes for government crime insurance coverage were requested to provide a minimum of expiring terms and conditions.
For the 2024 government crime coverage, four insurance companies were approached for quotes. Two insurance companies provided quotes, with a variety of options. All quotes place a sublimit of $3,000,000.00 on Faithful Performance of Duty Coverage.
It was determined that optimal program design, coverage and pricing for government crime coverage was offered by Allmerica Financial Benefit Insurance Company (Hanover) with a limit of $6,000,000.00 each for Employee Theft and for Computer and Funds Transfer Fraud each subject to a deductible of $75,000.00; a limit of $6,000,000.00 each for Forgery or Alteration, Inside the Premises - Theft of Money and Securities, Inside the Premises - Robbery or Safe Burglary of Other Property, Outside the Premises, Money Orders and Counterfeit Paper Currency each subject to a deductible of $50,000.00; and a limit of $100,000.00 for Claim Expense at a cost of $44,913.00 for a three-year policy period. This quote provided significant coverage enhancements, as compared to expiring coverage, at the most competitive price.
Two insurance companies declined to offer a quote for a variety of reasons including the inability to offer competitive pricing or the inability to provide coverage with expiring terms or limits.
The quotes have been evaluated by Mesirow, the Senior Risk Analyst, and the Risk Manager. It is recommended that the District purchase government crime insurance coverage from Allmerica Financial Benefit Insurance Company (Hanover) through Mesirow for a three-year policy period at a cost of $44,913.00, which is a $5,305.00 (13.39%) increase over the expiring 2021 three-year policy premium.
The Diversity Section has reviewed the contract for Mesirow Insurance Services, Inc., which serves as the District's intermediary as required in the State of Illinois for the purchase of government crime insurance, and determined that it has met the requirements of Appendix A. The Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE) and/or Small Business Enterprises (SBE) goals are: 20% MBE, 10% WBE and 10% SBE.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order to Mesirow Insurance Services, Inc. in an amount not to exceed $44,913.00.
The estimated expenditures for 2024, 2025 and 2026 for Mesirow Insurance Services, Inc. are $14,971.00, $14,971.00, and $14,971.00 respectively. Funds for the 2024 expenditure in the amount of $14,971.00 are available in Account 101-25000-612290.
Funds for the 2025 and 2026 expenditures will be budgeted in Account 101-25000-612290 and will be contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK:BLW
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, 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 March 7, 2024
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