TRANSMITTAL LETTER FOR BOARD MEETING OF June 5, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Issue purchase order and enter into an agreement for Contract 08-RFP-09 Provide Risk Management Assessment and Consulting Services, with Marsh USA, Inc., in an amount not to exceed $43,275.00, Account 101-15000-601170, Requisition 1240537
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with Marsh USA, Inc. (Marsh) to provide risk management assessment and consulting services. Marsh will perform a comprehensive risk management study to assess the overall effectiveness of the District’s management of financial, operational, contractual, and environmental risks. Marsh will make recommendations to address any deficiencies or issues relating to the District’s risk management practices. The objective of this assessment is to identify the organization-wide portfolio of significant risks, quantify and prioritize these risks, and objectively determine the adequacy of existing risk management programs and practices.
On February 6, 2008, Request for Proposal 08-RFP-09 was publicly advertised. Fifty-seven (57) firms were notified, and thirty (30) firms requested proposal documents. The District received proposals from the following eight vendors on the bid opening date of March 7, 2008: Mesirow Insurance Services, Inc., Risk Resources, Inc., Virchow Krause & Company, LLP, Colden Corporation, Risk Management and Information Systems, Inc., Smart Business Advisory and Consulting, LLC, Marsh USA, Inc., and Deloitte Consulting, LLP.
The proposals were reviewed and evaluated by staff members from the Maintenance & Operations, Personnel, Law and Purchasing Departments, and General Administration (both Site Remediation and Management and Budget Sections) using the established criteria identified in the Request For Proposal. The criteria included demonstrated ability to deliver the full scope of risk management consulting services required, prior experience providing risk management services to public entities, and the experience and credentials of the proposed account service team.
Six finalists were identified and scheduled for interviews: Mesirow Insurance Services, Inc., Virchow Krause & Company, LLP, Risk Management and Information Systems, Inc., Smart Business Advisory and Consulting, LLC, Marsh USA, Inc., and Deloitte Consulting, LLP. Following the interviews, all six finalists were given the opportunity to submit an unqualified “best and final” offer to the Purchasing Agent by April 29, 2008. Marsh had the highest overall evaluation and lowest cost proposal of the six finalists.
Marsh USA is a wholly-owned subsidiary of the Marsh & McLennan Companies, and global professional services firm with over 55,000 employees and annual revenues of approximately $12 billion. Marsh was founded in Chicago in 1871. Marsh has successfully performed comparable projects for other large public entities. Past and current clients include the Port of San Diego (CA), City of Charlotte (NC), City of Gainesville (FL), City of Harrisburg (PA) and the County of DuPage (IL).
Marsh USA is currently registered and in good standing with the State of Illinois.
This is a lump sum contract to provide a comprehensive final report that is estimated to be completed within ten to twelve weeks of commencement. There are no provisions included for expanding the scope or extending the contract.
In view of the foregoing, it is requested that the Purchasing Agent be authorized to issue a purchase order to and enter into an agreement with Marsh USA, Inc. for the consulting services required, in an amount not to exceed $43,275.00.
Funds are available in Budget Accounts 101-15000-601170.
Requested, Eileen M. McElligott, Administrative Services Manager, EMc:JPD
Recommended, Darlene A. LoCascio, Purchasing Agent
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this June 5, 2008. Approved, President Terrence J. O’Brien