TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 16, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Issue purchase order to Risk Management Resources, Inc. for Furnishing Excess Marine Liability Insurance Coverage for District Marine Vessels in an amount not to exceed $15,250.00, Account 101-30000-612290, Requisition 1309178
Body
Dear Sir:
At the Board Meeting of February 7, 2008, the Board of Commissioners awarded a purchase order to Risk Management Resources, Inc. (RMR) to serve as the District’s broker-of-record for a three-year period. In this capacity, RMR has sole responsibility for securing quotes from the insurance market for all broker-placed insurance policies, and presenting the quotes from qualified carriers to the Director of Procurement and Materials Management for review and recommendation of a selected carrier.
On July 28, 2010, on behalf of the District, RMR issued specifications for Excess Marine Liability Insurance from October 1, 2010 through October 1, 2011, for the District’s (10) ten marine vessels for a one-year period with a self-insurance limit of ten thousand dollars and primary and excess liability limit of ten million dollars excluding Terrorism Risk Coverage. Ten (10) insurance companies were notified and six (6) responsive proposals were received from the following companies, as specified herein:
Primary
CNA Insurance Company $ 6,250.00
Hartford Declined
Travelers $ 10,980.00
Philadelphia Insurance Co. $ 12,500.00
Excess
Travelers Insurance $ 9,000.00
Hartford Insurance Company $ 14,000.00
CNA Insurance Company $ 11,000.00
Chubb Insurance Company $ 10,500.00
Great American Insurance Company Declined
The proposals were evaluated by RMR and representatives from the Procurement and Materials Management and Law Departments. Based on their review, it was determined and recommended that separate quotations from CNA Insurance Company ($6,250.00) and Travelers Insurance Company ($9,000.00) provided the lowest cost proposal, with a combined competitive annual premium rate of $15,250.00 for both the primary and excess limits of this coverage. These specified companies were the lowest responsible bidders.
In view of the foregoing, it is recommended that a purchase order be issued to Risk Management Resources, Inc, in an amount not to exceed $15,250.00.
Funds are available in Account 101-30000-612290.
Requested, Frederick M. Feldman, General Counsel, FMF:HSW:crb
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 September 16, 2010