TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 15, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order and enter into an agreement for Contract 22-RFP-25R (REBID) Compensation and Benefits Study with Korn Ferry (US) in an amount not to exceed $150,204.00, Account 101-25000-612430, Requisition 1591087
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with Korn Ferry (US) to conduct a compensation study focusing on the 1,200 employees in the District’s non-represented technical, administrative, and managerial job classifications. The goal of this study is to determine if the District’s total compensation plan (i.e. salary and benefits) remains competitive in the marketplace. The District seeks to ensure that it can successfully compete with both private and public sector employers in the recruitment and retention of capable employees in these job classifications. Comparisons to private sector employers will focus on local and regional employers of a similar size (between 1,000 - 2,000 employees). The study will also make comparisons to local and regional public sector employers and comparable water/wastewater agencies nationwide. The contract for these services will expire December 31, 2024.
On September 20, 2023, request for proposal 22-RFP-25R (REBID) Compensation and Benefits Study was publicly advertised. One thousand four hundred and sixty-eight (1,468) firms were notified and twenty-four (24) requested proposal documents. On October 20, 2023, the District received seven (7) responsive proposals from CBIZ Benefits and Insurance Services, Inc.; Crowe LLP; Deloitte Consulting LLP; Educational Data Systems, Inc.; Gallagher Benefit Services, Inc.; JER HR Group LLC; and Korn Ferry (US).
The proposals were evaluated by staff from the Human Resources Department, the Treasury Section, and the Procurement and Materials Management Department. The criteria for these evaluations were outlined in request for proposal 22-RFP-25R (REBID) and included: understanding of the project, approach to the work, technical competence of the firm and assigned consultants, financial stability, compliance with insurance requirements, submission of licenses/permits, and cost. Following the preliminary evaluation of the proposals, three (3) vendors were invited to the finalist interviews.
The finalist interviews were held on December 14 - 15, 2023. On January 3, 2024, a solicitation was sent to the finalists requesting an unqualified “best and final” offer. The “best and final” offers were returned to the Director of Procurement and Materials Management on January 9, 2024.
Based on the evaluation of the proposals using the criteria described above and the pricing provided in the “best and final” offers, the Human Resources Department recommends Korn Ferry (US) as the vendor to conduct the compensation and benefits study. Korn Ferry (US) is a global consulting firm with more than 1,400 consultants in offices across the United States including a Chicago office in Willis Tower. The firm has expertise in organizational structure, employee recruitment and retention, compensation systems, and employee development. The team assigned to the contract has deep expertise in compensation programs with the lead consultant possessing 30 years of experience in the analysis, design, and implementation of compensation systems. The firm has expertise in the underlying classification and compensation methodology utilized by the District. This expertise in the District methodology will allow more precise matching of individual job classifications to the external market leading to more accurate comparisons of compensation data. They have significant experience conducting market analysis related to compensation as well as experience developing and administering custom surveys such as the one that will be used to solicit compensation and benefits information from other water and wastewater agencies. They have an extensive proprietary database that provides detailed compensation and benefits data for local public sector employers, regional public sector employers, local private sector employers, and regional private sector employers. They will utilize the Economic Research Institute database to provide national compensation data comparisons where appropriate. The final report will provide a detailed comparison of District compensation data to the various market segments, a comparison of the District benefits program to the marketplace, a summary of the findings, and recommendations for improvements or adjustments to the compensation plan necessary to remain competitive. The report will also prioritize the recommendations, seeking to balance the potential positive impact on recruiting and retention efforts with the financial effect on the District budget. Recommendations would consider findings at the individual job classification level as well as more broadly at the functional and organizational level. Finally, they have presented a thorough project plan and timeline that accomplishes the project goals within the timeframe identified by the District.
The Minority and Women Business Enterprise goals for this contract are 10% MBE and/or WBE. The Diversity Section has reviewed the proposal and has concluded that Korn Ferry (US) has met the requirements for Appendix A.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to award a contract to Korn Ferry (US) in the amount of $150,204.00. Funds are available in Account 101-25000-612430 for 2024.
Recommended, Thaddeus J. Kosowski, Director of Human Resources
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 February 15, 2024
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