Award Bid for Independent Audit Services for Fiscal Years Ending June 30, 1996, 1997 and 1998.


BOARD MEETING DATE: June 14, 1996

AGENDA NO. 8

Proposal:

Award Bid for Independent Audit Services for Fiscal Years Ending June 30, 1996, 1997, and 1998.

Synopsis:

On March 8, 1996, the Board approved the release of a RFP for independent financial audit services. An evaluation panel composed of outside and AQMD Legal and Finance staff evaluated the proposals. The top four proposals were submitted to the Administrative Committee for consideration at their May 24, 1996 meeting. The Administrative Committee interviewed representatives of each of the firms and Vargas and Company was selected to be recommended to the full Board.

Committee:

Administrative, May 24, 1996, Recommended for Approval

Recommended Action:

Award Bid to Vargas and Company for performance of AQMD’s Financial Audits for the FYs ending June 30, 1996, 1997, and 1998 and authorize the Chairman to execute a contract with Vargas & Company at a total cost not to exceed $49,800.

Jon D. Mikels
Chairman of the Board


Background
A financial audit is annually performed on the AQMD in compliance with the California Government Code and Single Audit Act of 1984. This audit is performed by independent Certified Public Accountants, and their reports are addressed to the Board.

Bid Evaluation

In accordance with the AQMD’s Consultant Selection Policy and Procedure, a public notice inviting proposals was published in the California State Contracts Register, Los Angeles Times, La Opinion, Los Angeles Sentinel, M/W/DVBE Source, Orange County Register, Riverside Press Enterprise, San Bernardino Sun, Rafu Shimpo, Chinese Daily News, Philippine News, Eastern Group Publication, Precinct Reporter, El Chicano, The Black Voice News, The Excelsior, Korea Central Daily, La Voz, and the Purchasing RFP/RFQ 24-hour Phone Line, and the World Wide Web. Out of a total of 225 proposals mailed out, eight firms responded to the RFP.

The proposals were reviewed by a 4-person (1 male, 3 female) panel composed of three AQMD employees and an Executive Vice President from the Ryan Tyler Group. One panel member was Hispanic, one African American, one Asian Pacific American, and one Asian Indian. The evaluation results for the bidders are:

BIDDER M/W/
DVBE
LOCAL
FIRM
BID
AMOUNT
TOTAL
POINTS
OVERALL
RANK

Vargas & Company

MBE

Yes

$49,800

87

1

Simpson & Simpson

MBE

Yes

54,000

86

2

Macias, Gini & Co.

MBE

Yes

60,300

83

3

KPMG Peat Marwick

Sub*

Yes

57,000

80

4

Quesada Godsey & Company

MBE

Yes

69,700

73

5

McGladrey & Pullen

No

Yes

74,900

57

6

E. Paches, An Accountancy Corp.

Not Responsive

Strabala, Ramirez & Assoc.

Not Responsive

*Proposal includes a 20% subcontract to a minority firm.

The selection criteria used to rank the proposals included: responsiveness to the RFP; technical expertise; project management and technical approach; previous experience; cost; and MBE/WBE/DVBE - local business designation. Based on the panel’s assess-ment of the criteria, the top four proposals were recommended to the Administrative Committee for their consideration and recommendation to the full Board.

Resource Impacts
The maximum audit costs, including out-of-pocket expenses, are $15,800, $16,600, and $17,400, for FYs ending June 30, 1996; June 30, 1997; and June 30, 1998, respectively. This represents a maximum cost for the three-year period of $49,800. Sufficient funds for the first year of the contract are included in the FY 1996-97 Budget and will be budgeted for the second and third years.