TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 16, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order and enter into an agreement for Contract 19-RFP-03 Benefits Consulting Services with Deloitte Consulting LLP in an amount not to exceed $185,000.00, Account 101-25000-612430, Requisition 1506535 (As Revised)
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with Deloitte Consulting LLP to provide benefits consulting services for the period July 1, 2019 through June 30, 2023.
On January 23, 2019, Request for Proposal 19-RFP-03, Benefits Consulting Services was publicly advertised. Five hundred sixty-eight (568) firms were notified and forty-three (43) requested proposal documents. On February 22, 2019, the District received one (1) responsive proposal from the following vendor: Deloitte Consulting LLP (Deloitte).
The proposal was evaluated by staff from the Human Resources Department, the Treasury Office and the Procurement and Materials Management Department. The criteria for these evaluations were outlined in Request for Proposal 19-RFP-03 and included: understanding of the project, approach to the work, technical competence, financial stability, compliance with insurance requirements, submission of licenses/permits, and cost. Following the preliminary evaluation of the proposal, the proposer was invited to a finalist interview held on April 5, 2019. A solicitation was sent to the finalist on April 12, 2019 for an unqualified “best and final” offer. The “best and final” offer was returned to the Director of Procurement and Materials Management on April 17, 2019.
Based on the evaluation of their proposal and interview, it is recommended that a purchase order be awarded to Deloitte. Deloitte has significant benefits consulting experience in the public sector with 1,600 consultants dedicated to this segment. Local public sector clients include the City of Chicago, Chicago Transit Authority, State of Illinois and Cook County. One of the key services included in this contract is assisting with the development of request for proposal documents and the technical scoring of proposals for the District health insurance contracts. Deloitte is very familiar with the District request for proposal process utilized for selecting its medical, dental and vision insurance providers having assisted the District in this area in the past. Deloitte is able to provide its clients with unbiased, independent recommendations regarding vendor selections and benefits strategies because they do not sell insurance products of their own, operate a health care exchange or accept commissions from insurance carriers. Deloitte has a strong focus on strategic planning and has assisted the District in vetting and implementing changes to help maintain a high quality, cost effective health care program for its employees and retirees. Finally, Deloitte has experience assisting the District with collective bargaining with health care modeling and with maintaining compliance with legal mandates such as the Affordable Care Act. For these reasons, Deloitte is highly qualified to provide these services.
The Affirmative Action Section has reviewed the proposal and has concluded that Deloitte has met the requirements for Appendix A. The Minority, Women and Small Business Enterprise goals for the above contract are 5% MBE and/or, WBE and 5% SBE.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to award a contract to Deloitte Consulting LLP in the amount of $185,000.00. The estimated expenditures are $14,000.00 in 2019, $39,000.00 in 2020, $29,000.00 in 2021, $89,000.00 in 2022 and $14,000.00 in 2023. Funds are available in Account 101-25000-612430 for 2019. Funds for the 2020 through 2023 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Recommended, Beverly K. Sanders, Director of Human Resources
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 May 16, 2019
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