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Home My WebLink AboutExhibitCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Arthur Noriega V City Manager Do.Sign. by: FROM: Annie Perez, CPPO Director/Chief Procurement Officer Procurement Department Recommendation: DATE November 18, 2025 SUBJECT: Recommendation of Award for Insurance Brokerage Services REFERENCES: Request for Proposals ("RFP") No. 1471386 Based on the findings below, the Department of Procurement ("Procurement") hereby recommends approval for the award of a contract pursuant to Request for Proposals ("RFP") No. 1471386 to the highest ranked responsive and responsible Proposer, Risk Management Associates, Inc. ("RMA"), for the provision of Insurance Brokerage Services. Background: On March 4, 2024, Procurement, on behalf of the City of Miami's ("City") Risk Management Department ("Risk"), issued RFP No. 1471386 under full and open competition, to obtain proposals from experienced and qualified firms for the provision of Insurance Brokerage Services. On May 21, 2024, four (4) proposals were received in response to the RFP. Proposers were required to meet all of the minimum qualification requirements established in the RFP, in order to be deemed qualified to provide said services. Subsequently, the proposals were reviewed by Procurement for responsiveness and all four (4) were deemed responsive. The Evaluation Committee ("Committee") met on June 24, 2024, to review and evaluate the Proposals. The evaluation criteria were given respective weights for a maximum of one hundred four (104) points per Committee member. Four (4) of the 104 points are derived from the application of the Local Office Preference contained in Sections 1873 and 18-86 (c) (1) of the Code of the City of Miami, Florida, as amended ("City Code"). However, none of the Proposals contained sufficient proof to award the Local Office Preference. Thus, the maximum technical score for each Proposer was in the amount of 80 points per Committee member (400 points total). Furthermore, the maximum pricing score for each Proposer was in the amount of 20 points per Committee member (100 points total). The preliminary scores are listed below in order of ranking: Proposer Technical Score (max. 400) Pricing Score (max. 100) Total Combined Score (max. 500) 1 Risk Management Associates, Inc. 373 73 446 2 McGriff Insurance Services, LLC 327 74 401 3 Foundation Risk Partners, Corp. 292 76 368 4 Willis Towers Watson Southeast, Inc. 306 61 367 Despite initially scoring all categories, Risk determined Oral Presentations were required to clarify the methods and practices used to arrive at the fee structures in each Price Proposal. Prior to the oral presentations, a clarification question was provided to all firms. Each firm was given an allotted time of fifteen (15) minutes, which allowed them the opportunity to clarify the abovementioned concerns, but no modifications to proposals were accepted. On January 29, 2025, oral presentations were held with all four (4) responsive Proposers. Immediately thereafter, Justin Griffin, Senior Procurement Contracting Officer and non -voting Chairperson ("Chairperson") instructed the Committee that the technical scores would remain the same and they were to re-evaluate, re -score, and re -rank only the pricing scores. In addition, during the Post Oral Presentations Evaluation meeting, the Chairperson read into the record each Evaluation Committee member's price score for each Proposer. Thereafter, Mr. Griffin read into the record the combined technical score and price score for each Proposer and the ranking order. The Evaluation Committee reached a consensus pursuant to the guidelines in the RFP. The post - oral presentation technical and price scores submitted are as follows: Proposer Technical Score (max. 400) Pricing Score (max. 100) Total Combined Score (max. 500) 1 Risk Management Associates, Inc. 373 65 438 2 McGriff Insurance Services, LLC 327 85 412 3 Foundation Risk Partners, Corp. 292 91 383 4 Willis Towers Watson Southeast, Inc. 306 52 358 Based on the foregoing, the Committee recommended that the City enter into negotiations with RMA, the highest ranked responsive and responsible Proposer. Accordingly, the Negotiating Team met with RMA on April 22, 2025, and on August 28, 2025, to negotiate a Professional Services Agreement ("PSA"). Thereafter, due diligence was conducted to determine RMA's responsibility, including verifying corporate status, that there were no performance or compliance issues, and no adverse findings related to its responsibility. Fiscal Impact: RMA is the incumbent Insurance Brokerage Services provider to the City and charges $65,000 annually for brokerage administration fees. On top of the administration fees, the City's annual commission payments to domestic excess/surplus lines wholesalers are in the amount of $567,264.00.1 Additionally, National Flood Insurance Program ("NFIP") commissions are separately paid in the amount of $59,380.00.2 Thus, the total annual fees and commissions paid by the City were in the amount of $691,644.00. Based on negotiations with RMA, the term of the new contract is three (3) years with an option to renew ("OTR") for two (2) additional one (1) year periods. However, total annual fees and commissions are now combined into a "not -to -exceed price" that is less than the City's current 1 Fees and commissions are accurate as of August 26, 2025. 2 The NFIP commissions follow a federally mandated schedule for pricing and commissions. fiscal impact. In years one (1) through year three (3) the fiscal impact will be $515,00.00; then $530,000.000 in OTR year one (1), and $545,000.00 in OTR year two (2). NFIP commissions are estimated to be $59,380.00 for each year and must remain separate per federal law. Therefore, the City's initial annual fiscal charge is approximately $574,380.00 ($515,000.00, plus $59,380.00). As a result, and depending on NFIP purchases, a total estimated annual savings of approximately $117,264.00 are realized in the first year of the new contract. Subsequent years of service will adhere to the methodology above and should produce similar savings. Prior written notification by the City shall be required if any coverage is placed in any market that would allow a commission or fee to RMA. Likewise, the City will make the final decision on the purchase of the coverage and the disposition of any commission or fee. Procurement hereby recommends award of a contract to RMA. Your signature below will indicate approval of this recommendation. APPROVED: C ""�° `, November 18, 2025 113:52:09 EST Arthur Noriega V Date AP:jg cc: David Ruiz, Interim Director, Risk Management Erica T. Paschal, CPA, Chief Financial Officer/Assistant City Manager Thomas M. Fossler, Assistant City Attorney Annie Perez, CPPO, Chief Procurement Officer/Director, Procurement Yadissa A. Calderon, CPPB, FCCM, Assistant Director of Procurement TO: Arthur Noriega V City Manager NASSX (Atet CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM DATE: March 24, 2025 SUBJECT: Report of the Evaluation Committee for RFP No. 1471386-Insurance Brokerage Services FROM: Annie Perez, CPPO Director/Chief Procurement Officer REFERENCES: Request for Proposals (RFP) No. 1471386 ENCLOSURES: Review/Score Sheets Recommendation: Based on the findings below, the Department of Procurement ("Procurement") hereby requests approval to negotiate a contract with Risk Management Associates, Inc. ("RMA"), the highest ranked responsive and responsible Proposer pursuant to RFP No. 1471386, for the provision of Insurance Brokerage Services. Background: On February 26, 2024, Procurement, on behalf of the Risk Management Department ("Risk"), issued RFP No. 1471386 under full and open competition, to obtain proposals from experienced and qualified firms for the provision of Insurance Brokerage Services. Proposers were required to meet all the minimum qualifications and other requirements as established in the RFP in order to be deemed qualified to provide said services. On May 21, 2024, four (4) proposals were received in response to the RFP. Subsequently, the proposals were reviewed by Procurement for responsiveness and all four (4) were deemed responsive. The Evaluation Committee ("Committee") met on June 24, 2024, to review and evaluate the Proposals following the guidelines published in the RFP. The Committee decided to hold oral presentations with all four (4) Proposers, as they felt the Price Proposals warranted further consideration as it pertained to the methods and practices used to arrive at the fee structures in each Proposal. The evaluation criteria were given respective weights for a maximum of one hundred four (104) points per Committee member. Four (4) of the one hundred and four (104) points are derived from the application of the Local Office Preference contained in Sections 18-73 and 18-86 (c) (1) of the Code of the City of Miami, Florida, as amended ("City Code"). However, none of the Proposals contained the documentation required to award the Local Office Preference. Thus, the maximum technical score for each Proposer was in the amount of eighty (80) points per Committee member (400 points total). The maximum score for each Price Proposal was in the amount of twenty (20) points per Committee member (100 points total). Thus, the total maximum combined score was 500 points. Preliminary Scores: The preliminary scores are listed below in order of ranking: Proposer Technical Score (max. 400) Pricing Score (max. 100) Total Combined Score (max. 500) 1 Risk Management Associates, Inc. 373 73 446 2 McGriff Insurance Services, LLC 326 74 400 3 Foundation Risk Partners, Corp. 292 76 368 4 Willis Towers Watson Southeast, Inc. 306 61 367 Oral Presentations were held on January 29, 2025, to clarify the methods and practices used to arrive at the fee structures in each Price Proposal. Prior to the oral presentations, a clarification question was provided to all firms. Each firm was given an allotted time of fifteen (15) minutes, which allowed them the opportunity to clarify the abovementioned concerns, but no modifications to proposals were accepted. Immediately, thereafter, the Committee re-evaluated, re -scored and re -ranked only the pricing scores. Post -Oral Presentation Scores: The post -oral presentation technical and price scores submitted are as follows: Proposer Technical Score (max. 400) Pricing Score (max. 100) Total Combined Score (max. 500) 1 Risk Management Associates, Inc. 373 65 438 2 McGriff Insurance Services, LLC 326 85 412 3 Foundation Risk Partners, Corp. 292 91 383 4 Willis Towers Watson Southeast, Inc. 306 52 358 Due diligence was conducted to determine RMA's responsibility, including, but not limited to, verifying corporate status. There were no performance issues, compliance issues, or adverse findings related to the responsibility of RMA. Prior to negotiations, Procurement will continue further due diligence of the Proposal submitted by the recommended Proposer. Negotiations: The Committee recommended that the City enter into negotiations with RMA, the highest ranked responsive and responsible Proposer. In the event the City and RMA are unable to reach an agreement, negotiations with RMA will be terminated and the City will enter into negotiations with the second highest ranked responsive and responsible Proposer. If negotiations fail with the two (2) highest ranked Proposers, the Committee recommended that the City re -solicit for said services. The following individuals will participate in the negotiations: • Ann -Marie Sharpe, ARM-P, CPPT, CAAPP, Director, Risk Management • David Ruiz, Assistant Director, Risk Management Department • James Justin Griffin, Sr. Procurement Contracting Officer, Procurement Department • Thomas Fossler, Esq., Assistant City Attorney, Office of the City Attorney Consensus Statement: The Committee recommends RMA for the following reasons: 1) RMA and its key personnel possess the necessary qualifications, experience, and past performance history to provide the services requested in the RFP, at the level required by the City; 2) RMA's Proposal was comprehensive and detailed how the services could be performed in a manner that will meet the City's needs; and 3) RMA's Price Proposal is competitive, and will be further negotiated to the satisfaction of the City. Copies of the score sheets for each committee member are attached, as well as the composite score sheets. Approved: C"o"` Arthur Noriega V City Manager AP:jg Date: March 25, 2025 1 18:16:07 EDT cc: Larry M. Spring, CPA, Assistant City Manager / Chief Financial Officer Ann -Marie Sharpe, ARM-P, CPPT, CAAPP, Director, Risk Management Thomas Fossler, Esq., Assistant City Attorney Yadissa A. Calderon, CPPB, Assistant Director of Procurement