STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: October 13, 2020
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize a five-year consultant service contract for actuarial services of other post-employment benefits plans for the City Controller’s Office - Holmes Murphy & Associates, LLC, most advantageous proposer of nine - Not to exceed $275,000 - Financing: General Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a consultant service contract is to establish firm pricing for services, for a specific term, which are ordered on an as needed basis.
This consulting service contract provides the City with actuarial consulting services for Other Post-employment Benefits (OPEB) covering the determination of actuarial liabilities for retiree medical, pharmacy, dental, and vision coverage. An actuarial firm must determine the City’s obligation for OPEB in compliance with the Governmental Accounting Standards Board (GASB) Statement 75. GASB 75 liabilities are reported annually in the City’s Comprehensive Annual Financial Report. Actuarial services for a five-year term include October 1, 2020 - September 30, 2025 for GASB 75 annual valuations for fiscal years 2020 through 2024 and ad-hoc consulting services as needed to manage the OPEB liability including review of plan design and forecasting. The contract covers determining OPEB liabilities for approximately 10,000 retirees and future eligible active employees.
A six-member committee from the following departments reviewed and evaluated the qualifications:
• City Controller’s Office (1)
• Department of Human Resources (1)
• Fire-Rescue Department (1)
• Police Department (1)
• The Office of Economic Development Business Workforce and Inclusion Division (1)*
• Office of Procurement Services (1)*
*The Office of Procurement Services only evaluated the cost and the Office of Economic Development Business Workforce and Inclusion Division only evaluated the Business Inclusion and Development Policy.
The committee selected the successful respondent on the basis of demonstrated competence and qualifications under the following criteria:
• Capability and expertise 30 points
• Cost 30 points
• Overall approach and methodology 25 points
• Business Inclusion and Development Policy 15 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. Additionally, in an effort to secure more competition, the Office of Economic Development Business Workforce and Inclusion Division sent notifications to chambers of commerce and advocacy groups to ensure maximum vendor outreach.
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. 15-2141. The current calculated living wage during the solicitation process of this contract is $11.71; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
|
Fund |
FY 2021 |
FY 2022 |
Future Years |
|
General Fund |
$55,000.00 |
$55,000.00 |
$165,000.00 |
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 |
Category |
M/WBE Goal |
M/WBE % |
M/WBE $ |
|
$275,000.00 |
Other Services |
23.80% |
15.00% |
$41,250.00 |
|
• This contract does not meet the M/WBE goal, but complies with good faith efforts. |
|
• Holmes Murphy & Associates, LLC - Local; Workforce - 25.08% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Request for Competitive |
• Utilized for high technology procurements, insurance procurements, and other goods and services |
|
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 BKZ20-00013317. We opened them on July 17, 2020. This consultant service contract is being awarded in its entirety to the most advantageous proposer.
*Denotes successful proposer
Proposers Address Score Amount
*Holmes Murphy & 12712 Park Central Dr. 81.39 $275,000.00
Associates, LLC Suite 100
Dallas, TX 75251
Gallagher Benefit Services 12750 Merit Dr. 77.09 $197,000.00
Inc. Suite 1000
Dallas, TX 75251
Gabriel, Roeder, Smith & 5605 MacArthur Blvd. 72.28 $287,500.00
Company Suite 870
Irving, TX 75038
Milliman, Inc. 10000 North Central Expy. 70.37 $325,000.00
Dallas, TX 75231
Foster & Foster, Inc. 184 Shuman Blvd. 63.25 $348,300.00
Suite 305
Naperville, IL 60563
Rudd and Wisdom, Inc. 9500 Arboretum Blvd. 61.24 $393,000.00
Suite 200
Austin, TX 78759
Aon Consulting, Inc. 3550 Lenox Rd. NE 57.66 $314,625.00
Suite 1700
Atlanta, GA 30326
Precision Actuarial, Inc. 562A Filbert St. 51.50 $180,000.00
Suite 4
San Francisco, CA 94133
Lauterbach & Amen, LLP 668 North River Rd. 49.99 $237,500.00
Naperville, IL 60563
OWNER
Holmes Murphy & Associates, LLC
Dan Keough, Chief Executive Officer
Den Bishop, President