TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 1, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order and enter into two agreements for Contract 22-RFP-12 Insurance Broker Services for a three-year period, with an option to extend for an additional two years, with Willis Towers Watson Midwest, Inc. in an amount not to exceed $315,000.00 and Mesirow Insurance Services, Inc. in an amount not to exceed $352,800.00 Account 101-25000-612290 Requisition 1590700, 1580057
Body
Dear Sir:
Authorization is requested to issue purchase orders and enter into two separate agreements for Contract 22-RFP-12 Insurance Broker Services: 1) with Mesirow Insurance Services, Inc. for casualty lines of insurance and related services (general liability, public officials liability, employment practices liability, law enforcement/police professional liability, automobile liability, marine, special events, and umbrella/excess liability), and for fiduciary liability, government crime, group business travel accident, group term life coverages and related services, and 2) with Willis Towers Watson Midwest, Inc. for property insurance and related services (property, flood, earthquake, windstorm, and business interruption/time element), and cyber liability and related services.
Request for Proposal 22-RFP-12 was advertised on July 6, 2022. Proposals were requested by twenty-four firms, resulting in three firms: Arthur J. Gallagher Risk Management Services, Inc.; Mesirow Insurance Services, Inc.; and Willis Towers Watson Midwest, Inc., submitting bids on July 29, 2022.
An evaluation committee consisting of personnel from the Human Resources Department (Risk Management), the Law Department and the Procurement and Materials Management Department, evaluated two 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 both proposers were qualified to perform the work.
Both firms were interviewed, and both were invited to submit a best and final offer. Upon completion of this process, Willis Towers Watson Midwest, Inc. received the highest rating overall and was determined to be the best choice to provide for property and cyber liability coverages and related services. Mesirow Insurance Services, Inc. received the second highest rating overall and was determined to be the best choice to provide for casualty and management liability coverages and related services.
Willis is the third largest risk management and insurance brokerage firm globally and has been serving the insurance industry for more than 100 years. The Chicago-based Midwest Property Practice team places over $500 million in property premium annually and handles insurance programs for several other large municipal clients. Willis offers superior expertise and services for property insurance and related risk consulting and is well suited to provide property brokerage services to the District.
Mesirow is a well-established insurance brokerage services firm with 50 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. In 2016, Mesirow joined Alliant Insurance Services, Inc. to become one of the largest insurance and consulting operations, both in the Midwest and nationally, with 500 public entity clients in Illinois today.
The Diversity Section has reviewed the proposals by Mesirow Insurance Services, Inc. and Willis Towers Watson Midwest, Inc. and has concluded that both entities have 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 and enter into an agreement with Willis Towers Watson Midwest, Inc. for professional broker services, in an amount not to exceed $315,000.00, and 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 $352,800.00.
The estimated expenditures for 2023, 2024 and 2025 for Willis Towers Watson Midwest, Inc. are $105,000.00, $105,000.00 and $105,000.00, respectively. The estimated expenditures for 2023, 2024 and 2025 for Mesirow Insurance Services, Inc. are $117,600.00, $117,600.00 and $117,600.00, respectively. Funds for the 2023, 2024, and 2025 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, Beverly K. Sanders, Director of Human Resources, BKS:BLW
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 1, 2022
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