STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: April 24, 2024
COUNCIL DISTRICT(S): 2
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service contract, with the option of one two-year renewal option or two one-year renewal options, for Owner Controlled Insurance Program broker services for the Office of Risk Management - Marsh USA, Inc., most advantageous proposer of five - Not to exceed $2,242,000 - Financing: Owner Controlled Insurance 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 Owner Controlled Insurance Program (OCIP) broker services for the Office of Risk Management. These services will develop underwriting and marketing specifications to competitively secure the best and essential insurance coverages at the most reasonable cost for construction of the Kay Bailey Hutchison Convention Center Master Plan. OCIP will provide expertise in all phases of developing, implementing, and administering the City’s OCIP. This service is necessary for the City to help eliminate insurance obstacles for construction contractors, including Minority/Women Business Enterprise (M/WBEs) and small businesses by assuming and insuring the project risks. This service provides a pathway to projects that contractor/subcontractor could not otherwise obtain while increasing M/WBE and small business participation percentages.
A six-member committee from the following departments reviewed and evaluated the qualifications:
• City Controller's Office (1)
• Department of Aviation (1)
• Department of Convention and Event Services (1)
• Office of Risk Management (1)
• Small Business Center Department (1)
• Office of Procurement Services (1)*
*The Office of Procurement Services evaluated cost and local preference, if applicable.
The committee selected the successful respondent on the basis of demonstrated competence and qualifications under the following criteria:
• Cost 30 points
• Technical Criteria 25 points
• Technical Criteria 20 points
• Understanding 10 points
• Business Inclusion and Development Plan 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.
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 calculated living wage during the solicitation process of this contract is $18.24; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
|
Fund |
FY 2024 |
FY 2025 |
Future Years |
|
Owner Controlled Insurance Fund |
$2,242,000.00 |
$0.00 |
$0.00 |
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 |
|
$2,242,000.00 |
Other Services |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
69.95% |
69.95% |
$1,568,267.00 |
|
• This contract exceeds the M/WBE subcontracting goal. This item is Other Services and no availability and disparity in the market. |
|
• Marsh USA, Inc. - Non-Local; Workforce - 0.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Request for |
• Utilized for professional, personal, revenue, and planning services |
|
Proposal |
• Recommended offeror is the responsible offeror whose proposal most closely meets established criteria for the services advertised, based on demonstrated competence and qualifications at a fair and reasonable price |
|
|
• Always involves the evaluation by committee |
|
|
• Allows for negotiation on contract terms, including price |
The Office of Procurement Services received the following proposals from solicitation number BBZ24-00023578. We opened them on December 29, 2023. We recommend the City Council award this service contract in its entirety to the most advantageous proposer.
*Denotes successful proposer
Proposers Address Score
*Marsh USA, Inc. 1717 Main Street 86.94
Suite 4400
Dallas, TX 75201
Alliant Insurance Services, 16000 North Dallas Parkway 84.04
Inc. Suite 850
Dallas, TX 75248
Willis Towers Watson 500 North Akard Street 84.04
Insurance Services West, Inc. Suite 4300
Dallas, TX 75201
McGriff Insurance Services, 5080 Spectrum Drive 72.00
Inc. Suite 900E
Addison, TX 75001
Lockton Companies 2100 Ross Avenue 61.29
Suite 1400
Dallas, TX 75201
OWNER
Marsh USA, Inc.
Martin South, Chief Executive Officer
Louis Piliego, Chief Operating Officer