TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 21, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order and enter into two agreements for Contract 17-RFP-32 Insurance Broker Services for a three-year period, with an option to extend for an additional two years, with Mesirow Insurance Services, Inc. in an amount not to exceed $289,500.00 and Willis of Illinois, Inc. in an amount not to exceed $360,000.00 Account 101-25000-612430 Requisition 1480485, 1466266
Body
Dear Sir:
Authorization is requested to issue purchase orders and enter into two separate agreements for Contract 17-RFP-32 Insurance Broker Services: 1) with Mesirow Insurance Services, Inc. for casualty lines of insurance and related services (including general liability, public officials liability, employment practices liability, law enforcement/police professional liability, employee benefits liability, employers liability, automobile liability, marine, special events, and umbrella/excess liability), and for fiduciary liability, government crime, group business travel accident, group term life coverage, and related services; and 2) with Willis of Illinois, Inc. for property insurance and related services (property, flood, earthquake, windstorm, and business interruption/time element). Willis would also handle cyber risk and environmental coverages and related services, if and when, requested by the District.
Request for Proposal 17-RFP-32 was advertised on July 6, 2017, and 61 firms were notified. Proposals were requested by 25 firms, resulting in six firms: Arthur J. Gallagher Risk Management Services, Inc.; Lambent Risk Management Services, Inc.; Mesirow Insurance Services, Inc.; Tave Risk Management; USI Insurance Services LLC; and Willis of Illinois, Inc., submitting proposals on August 18, 2017.
An evaluation committee consisting of personnel from the Human Resources Department (including Risk Management and Safety) and 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 Lambent Risk Management Services, Inc., all proposers were qualified to perform the work.
Five firms were interviewed, and each was invited to submit a best and final offer. Upon completion of this process, Mesirow Insurance Services, Inc. received the highest rating overall and for casualty and management liability coverages and services, and Willis of Illinois, Inc. received the second highest rating overall and the highest rating for property specific coverage and services. Based on the ratings and additional information garnered in the interviews, it was determined that Willis was best suited to handle the cyber risk and environmental liability coverages and related services, if and when, requested by the District.
Mesirow is a well-established insurance brokerage services firm, with more than 40 years in the insurance industry. From 1972 to 2016, Mesirow was an independent, employee owned organization with a dedicated practice for public entity business, handling the largest book of taxing body clients in Illinois, including more than 136 public entity clients served out of its Chicago office. In 2016, Mesirow joined Alliant Insurance Services, Inc. to become one of the largest insurance and consulting operations, both in the Midwest and nationally.
Willis is the third largest risk management and insurance brokerage firm globally and has been serving the insurance industry for nearly 130 years. The Chicago based Midwest Property Practice team places over $300 million in property premium annually and handles insurance programs for a number of other large municipal clients. Willis brings superior expertise and services to bear for property insurance and related risk consulting and is extremely well suited to provide property brokerage services to the District. With the oldest dedicated environmental insurance brokerage practice in the industry and an impressive platform of world class analytical tools, Willis is also well poised to assist the District in with environmental and cyber risk issues, if requested.
The Diversity Section has reviewed the proposals by Mesirow Insurance Services, Inc. and Willis of Illinois, Inc. and has concluded that both entities are in accordance with the District’s Affirmative Action Policy.
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 $289,500.00, and to issue a purchase order and enter into an agreement with Willis of Illinois, Inc. for professional broker services, in an amount not to exceed $360,000.00.
The estimated expenditures for 2018, 2019 and 2020 for Mesirow Insurance Services, Inc. are $96,500.00, $96,500.00 and $96,500.00, respectively. The estimated expenditures for 2018, 2019 and 2020 for Willis of Illinois, Inc. are $120,000.00, $120,000.00 and $120,000.00, respectively. Funds for the 2018, 2019, and 2020 expenditures will be budgeted in Account 101-25000-612430 and will be contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Beverly K. Sanders, Director of Human Resources, BKS: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 21, 2017