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HomeMy WebLinkAboutRecommendation of AwardCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Daniel J. Alfonso, DATE: October 13, 2015 FILE: City Manager FROM: Annie Perez, CPPO, Director Procurement SUBJECT: Recommendation of Award of Contract for Actuarial and Actuarial Related Consulting Services. REFERENCES: RFP484326 ENCLOSURES: Recommendation: Based on the findings below, Procurement hereby recommends approval for the award of a contract, pursuant to Request for Proposals (RFP) No. 484326, to the highest ranked, responsive and responsible proposer, Gabriel, Roeder, Smith & Company, to provide actuarial and actuarial related consultant services for the Office of Management and Budget. Background: The City of Miami (City) is a defined benefit public retirement system serving general employees of the City. There are approximately 25,000 active members and 17,000 retired members in the City. The City has three different pension plans: 1) Firefighters' and Police Officers' Retirement Trust (FIPO); 2) General Employees' and Sanitation Employees' Retirement Trust (GESE); and 3) Elected Officers' Retirement Trust (EORT). As such, the City is seeking the services of a qualified actuarial consulting firm, with experience providing services to local governments assessing public employee pension funds and public employee 401(a) retirement plans for a three-year contract, with two (2) additional two (2) year option to renew periods. On May 7, 2015, the Procurement Department ("Procurement") issued a solicitation under full and, open competition to obtain proposals for the services. Proposers were required to meet all of the minimum qualification requirements established in the Solicitation in order to be deemed qualified to provide the services. Five proposals were received in response to the Solicitation. The evaluation Committee (Committee) met on October 6, 2015, and has completed the review and evaluation of proposals following the guidelines published in the solicitation. The final scores are as follows (Composite score sheet is attached): Proposer Total Combined Technical and Price Scores (max. 525) 1 Gabriel, Roeder, Smith & Company 483 2 Cheiron, Inc. 446 3 Buck Consultants, LLC 440 4 Segal Consulting 389 5 SGRisk, LLC 213 PR 15199 1 Price was submitted based on the not -to -exceed price for the proposed hours per year, for performing the services, The Committee decided not to hold oral presentations. Due diligence was conducted to determine proposer's responsibility, including verifying corporate status, and that there are no performance or compliance issues. There were no adverse findings related to any of the proposer's responsibility. Local Office: Pursuant to City Code, Section 18-86, the solicitation included a five percent evaluation criteria in favor of proposers who maintain a local office as defined in Section 18-73. None of the proposers qualified for the preference. Consensus Statement: The Committee determined that the recommended proposer, Gabriel, Roeder, Smith & Company (GRS) has the necessary qualifications, relevant experience, technical capacity, and experienced personnel required to provide the consulting services to meet the needs of the City. GRS is a national actuarial and benefits consulting services leader for the public sector, and was incorporated in 1962. GRS has the largest public retirement plan actuarial practice in the United States, having served over 1,000 public sector clients with similar services. GRS also serves the Florida Auditor General by auditing the actuarial work of the Florida Retirement System. GRS consultants serve on key committees of the national actuarial bodies, and serve as nationally recognized subject matter experts. GRS's proposal presented a clear understanding of the scope of services required, and provided a task -appropriate approach, which ensures a close working relationship with the City to appropriately address the complexities and challenges that may arise. Although GRS's proposed price was amongst the top three highest prices proposed, the firm's price is well within industry standards and will be negotiated. Contract Execution: Accordingly, Procurement hereby requests authorization to enter into negotiations with GRS. Notwithstanding the foregoing, the Committee further recommends that if the City and GRS cannot reach an agreement, the City will begin negotiations with the second highest responsive and responsible proposer, until an agreement, acceptable to the City, has been reached. Once an agreement has been reached, Procurement requests authorization to execute the contract accordingly. Approved : - Daniel J. Alf ager Date: ,/ 0 Z tr. cc: Fernando Casamayor, Assistant City Manager/Chief Financial Officer Pablo J. Velez, Assistant City Attorney Christopher Rose, Director, Office of Management and Budget Lydia Osborne, CPPO, Assistant Director, Procurement PR 15199 2