STRATEGIC PRIORITY: Core
AGENDA DATE: June 25, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service contract in the amount of $285,000.00, with two one-year renewal options in the amount of $190,000.00, as detailed in the Fiscal Information section, for risk management and insurance consultant services for the Office of Risk Management - Marsh USA, Inc., most advantageous proposer of two - Total not to exceed $475,000.00 - Financing: Risk Management Program Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service contract is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis.
This service contract will provide for risk management and insurance consultant services for the Office of Risk Management. This contract will allow the City to better identify, assess, and manage various risks, ultimately protecting our assets, ensuring compliance, and fostering a more sustainable business. The City will benefit from improved decision-making, reduced liability, enhanced resilience, and streamlined operations.
A six-member committee from the following departments reviewed and evaluated the qualifications:
• Dallas Police Department (1)
• Department of Convention and Event Services (1)
• Office of Homeless Solutions (1)
• Office of Risk Management (1)
• Office of Procurement Services (2)*
*The Office of Procurement Services evaluated cost, local preference, and the Business Inclusion and Development Plan, if applicable.
The committee selected the successful respondents on the basis of demonstrated competence and qualifications under the following criteria:
• Experience, Capability, and Expertise 30 points
• Overall Approach and Methodology 30 points
• Cost 20 points
• Business Inclusion and Development Plan 15 points
• Local Preference 5 points
As part of the solicitation process and in an effort to increase competition, the Office of Procurement Services used its procurement system to send out email notifications to vendors registered under relevant commodity codes. To further increase competition, the Office of Procurement Services uses historical solicitation information, the Internet, and vendor contact information obtained from user departments to contact additional vendors.
On November 10, 2015, the City Council authorized a living wage policy that requires contractors to pay their employees a “living wage” rate as established annually by the Massachusetts Institute of Technology Living Wage Calculator for Dallas County by Resolution No. 15-2147. The calculated living wage during the solicitation process of this contract is $22.05; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 8, 2021, the City Council authorized a three-year consultant contract for risk management and insurance consultant services for the Office of Risk Management with Arthur J. Gallagher Risk Management Services, Inc. by Resolution No. 21-1979.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Risk Management Program Fund |
$95,000.00 |
$95,000.00 |
$285,000.00 |
Initial Term: $285,000.00
Renewal Option: Year 1 $ 95,000.00
Renewal Option: Year 2 $ 95,000.00
Total: $475,000.00
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
|
$475,000.00 |
Other Services |
2.93% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
3.00% |
3.00% |
$14,250.00 |
|
• This contract exceeds the M/WBE goal. |
|
• Marsh USA, LLC - Local; Workforce - 1.34% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Request for |
• Utilized for high technology procurements, insurance procurements, and other goods and services |
|
Competitive Sealed Proposal |
• Recommended offeror whose proposal is most advantageous to the City, considering the relative importance of price, and other evaluation factors stated in the specifications |
|
|
• Always involves a team evaluation |
|
|
• Allows for negotiation on contract terms, including price |
The Office of Procurement Services received the following proposals from solicitation number BTZ25-00026821. We opened them on April 18, 2025. We recommend the City Council award this service contract to the most advantageous proposer.
*Denotes successful proposer
Proposers Address Score
*Marsh USA, Inc. 1717 Main Street 91.00
Suite 4400
Dallas, TX 75201
Arthur J. Gallagher Risk 12750 Merit Drive 78.09
Management Services LLC Suite 1000
Dallas TX 75251
OWNER/EXECUTIVE
Marsh USA, Inc.
Martin South, Chief Executive Officer