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PROPOSAL:

Execute Contract for Insurance Brokerage

SYNOPSIS:

On January 9, 1998, the Board approved the release of an RFP for Insurance Brokerage Services. This action is to execute a three-year contract with Aon Risk Services of Southern California, for an amount not to exceed $35,000 per year. Funding has been included in the 1997-98 Budget.

COMMITTEE:

Administrative, February 20, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman of the Board to execute a three-year contract with Aon Risk Services of Southern California to provide insurance brokerage services for three years commencing April 1, 1998. The total contract amount shall not exceed $35,000 per year for the three-year period.

Barry R. Wallerstein, D.Env
Acting Executive Officer

Background

Due to the highly complex and specialized nature of the insurance industry, AQMD requires the services of a licensed insurance broker to market its insurance needs and represent its interests in the negotiation and placement of various lines of coverage. These services include data collection and analysis of values and properties subject to loss, preparation of insurance proposal submission packages, and development of strategies for obtaining cost-effective coverages and premiums based on market conditions.

On January 9, 1998, the AQMD released RFP #9798-23 for Insurance Brokerage Services. Three proposals were received by the submittal deadline of February 11, 1998. At the Administrative Committee meeting on February 20, 1998, staff submitted an evaluation of proposals and recommended awarding the contract to Aon Risk Services of Southern California to perform insurance brokerage services.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential bidders were identified using the Los Angeles County MTA Directory of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethic/Women Business and Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s 24-hour telephone message line for bidders (909) 396-2724.

Bid Evaluation

Three-hundred fifty (350) copies of the RFP were mailed out. Three proposals were received in response to the RFP when final bidding closed at 1 p. m. on February 11, 1998. None of the three bidders are MBE/WBE/DVBE firms.

The submitted proposals were evaluated based on the technical and cost criteria contained in the RFP. Out of the three bids, all three were determined to be responsive and technically qualified bids. Attachment A reflects the list of qualified bidders in lowest to highest bid. The proposals were evaluated by a panel of risk management and insurance professionals, as detailed below.

Panel Composition

The evaluation panel consisted of an employee of Los Angeles City Airports Department; an employee of Los Angeles Community Redevelopment Agency; and two employees of AQMD, Administrative and Human Resources. Of these four panelists, two are women and two are men. Additionally, two of the panelists are White, one is Hispanic and one is Black.

Resource Impacts

Sufficient funds are available in the approved Fiscal Year 1997-98 Budget.

Insurance Broker Services

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