TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 6, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order and enter into an agreement for Contract 13-RFP-02 Multi-year Benefits Consulting Services with Deloitte Consulting LLP in an amount not to exceed $183,000.00, Account No. 101-25000-601170, Requisition 1353974
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, 2013 through June 30, 2016.
On January 9, 2013, Request for Proposal 13-RFP-02, Multi-year Benefits Consulting Services was publicly advertised. Fifty-seven (57) firms were notified and twenty-six (26) requested proposal documents. On February 8, 2013, the District received six (6) responsive proposals from the following vendors: Benefitdecisions, Inc.; Buck Consultants, LLC; Deloitte Consulting LLP; Gallagher Benefit Services, Inc.; Mesirow Insurance Services, Inc. and The Segal Company, Inc.
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 13-RFP-02 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, four (4) proposers were deemed to be finalists and were interviewed on March 18, 2013 and March 19, 2013. A solicitation was sent to each finalist on March 25, 2013 for an unqualified "best and final" offer. The "best and final" offers were returned to the Director of Procurement and Materials Management on April 12, 2013.
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 has also served as the District's benefits consultant in the past. 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, which will be important as the District develops its own long-term plan. It will conduct a health care reform impact analysis with a 10-year time horizon to assist in developing a strategic plan. The analysis will also ensure the District remains compliant with health care reform regulations as they are implemented. For these reasons, Deloitte is the best qualified vendor to provide these services.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to award a contract to Deloitte Consulting LLP in the amount of $183,000.00. Funds for the 2013 expenditure, in the amount of $65,500.00, are available in Account 101-25000-601170. The estimated expenditures are $65,500.00 in 2013, $70,500.00 in 2014, $27,500.00 in 2015 and $19,500.00 in 2016. Funds for the 2014 through 2016 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 June 6, 2013