TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 19, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order to Risk Management Resources, Inc. for Furnishing Coverage for Blanket Public Employee Faithful Performance Bond, Blanket Public Employee Dishonesty Bond and Depositor’s Forgery Insurance in an amount not to exceed $34,782.00, Account 101-30000-612290, Requisition 1333895
Body
Dear Sir:
At the Board Meeting of June 2, 2011, 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 December 7, 2011 on behalf of the District, RMR issued specifications for furnishing coverage for Blanket Public Employee Faithful Performance Bond, Blanket Public Employee Dishonesty Bond and Depositor’s Forgery Insurance, effective January 31, 2012, for a one or three-year period, with a self insurance limit of $30,000.00 and coverage with liability limits of six million dollars. Eight Insurance companies were notified and there were five proposals received from the following companies with only Fidelity and Deposit Company of Maryland offering a one year and three years quotation:
Great American Insurance $10,200.00
Fidelity & Deposit Co. of Maryland $12,000.00
ACE $14,000.00
Chubb $14,500.00
Fidelity & Deposit Co. of Maryland $34,782.00
The proposals were evaluated by RMR staff and representatives from the Procurement and Law Departments. The District has determined that Fidelity & Deposit Co. of Maryland provided the best cost proposal with a competitive premium rate of $34,782.00 for the period of three years and complies with the terms and conditions of the specifications. The remaining insurance companies only submitted quotations for a one year period and while Great American, had the lowest cost annual, one year premium rate at $10,200.00, it should be noted that it only offered faithful performance coverage for the limit of one million dollars, which was unacceptable because six million was specified.
In view of the foregoing, it is recommended that a purchase order to Risk Management Resources for insurance coverage with Fidelity & Deposit Company of Maryland in an amount not to exceed $34,782.00, for the government crime insurance policy as previously outlined, for a three year period from January 31, 2012 through January 31, 2015 be issued.
Funds are available in Account 101-30000-612290.
Requested, Ronald M. Hill, General Counsel, RMH: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 January 19, 2012.