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Execute Contract for Independent Audit Services for Fiscal Years Ending June 30, 2000, 2001, and 2002

SYNOPSIS: 

On December 10, 1999, the Board approved the release of an RFP for independent financial audit services. An evaluation panel composed of outside and AQMD Legal and Finance staff evaluated the proposals. Three proposals were submitted to the Administrative Committee for consideration at their March 10, 2000 meeting. After the committee interviewed representatives of each of the firms, Simpson & Simpson was selected to be recommended to the full Board.

COMMITTEE: 

Administrative, March 10, 2000, Recommended for Approval

RECOMMENDED ACTION:

Award bid to Simpson & Simpson for performance of AQMD’s Financial Audits for the FYs ending June 30, 2000, 2001, and 2002 and authorize the Chairman to execute a contract with Simpson & Simpson at a total cost not to exceed $59,775.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

A financial audit is annually performed on the AQMD in compliance with the California Government Code and Single Audit Act of 1996. This audit is performed by independent Certified Public Accountants, and their reports are addressed to the Board.

Outreach

In accordance with the AQMD’s consulting and contracting policies, public notices advertising the RFP and inviting bids were 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

A listing of open RFPs was made available to various legislative caucuses, community groups, trade organizations, chambers of commerce and other interested parties at the time the Notice Inviting Bids/Proposals was submitted for publication.

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 Ethnic/Women Business and Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notice of the RFP was mailed to the African-American and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and 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

Ninety-six (96) copies of RFP #9900-12 were mailed out. Three (3) quotations were received when the bidding closed at 3:00 p.m. on January 21, 2000.

An evaluation panel was convened to evaluate the three proposals and consisted of a Principal Account Auditor from the County of Los Angeles and three AQMD staff; a Senior Deputy District Counsel, the Finance and Budget Manager, and the Controller. The panel consisted of four females; one African American, one Asian Pacific American, and two Caucasian. The evaluation results for the bidders are:

 

BIDDER	Small Business	LOCAL FIRM	BID AMOUNT	TOTAL POINTS*	OVERALL RANK
Simpson & Simpson	Yes	Yes	59,775	99.1	1
Vargas, Lopez, and Co.	Yes	Yes	71,270	97.0	2
Hutchinson & Bloodgood	Yes	Yes	72,000	94.5	3

*Total maximum points of 115

The selection criteria used to rank the proposals included: responsiveness to the RFP; technical expertise; project management and technical approach; previous experience; cost; and SB/SBJV/DVBE/DVBEJV/DVBE/SB Subcontractors/Local Business designation (non-EPA). Based on the panel’s assessment of the criteria, the three 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 $19,925, $19,925, and $19,925, for FYs ending June 30, 2000, 2001, and June 30, 2002, respectively. This represents a maximum cost for the three-year period of $59,775. Sufficient funds for the first year of the contract are included in the FY 2000-2001 Budget Proposal and will be budgeted for in the second and third years.

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