BOARD MEETING DATE: April 2, 2004
AGENDA NO. 8

Execute Contract for Insurance Brokerage Services

SYNOPSIS:

The current contract for insurance brokerage services expires March 31, 2004. On October 3, 2003, the Board approved release of an RFP to solicit proposals from firms interested in providing these services for the next three-year period. This action is to execute a contract with Campbell & Associates Insurance Brokerage LLC, through March 31, 2007, for an amount not to exceed $49,500 per year. Funding for this contract has been included in the FY 2003-04 Budget and will be requested in successive fiscal years.

COMMITTEE:

Administrative, March 12, 2004, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a three-year contract for the period April 2, 2004, through March 31, 2007, with Campbell & Associates Insurance Brokerage LLC to perform insurance brokerage services in an amount not to exceed $49,500 for each of the three years.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD currently contracts with Aon Risk Services of Southern California to provide insurance brokerage services. These services include marketing AQMD’s property and liability insurance needs and representing AQMD’s interest in the negotiation and placement of various insurance instruments for loss exposures. Broker services also include data collection and analysis of properties subject to loss and their values, preparation of insurance proposal submissions, and the development of strategies for obtaining cost-effective coverage based on existing market conditions.

The current contract expires on March 31, 2004. On October 3, 2003, the Board approved release of RFP #P2004-08 to solicit proposals from insurance brokerage firms interested in providing these services for the next three-year period.

Outreach

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

1.	Antelope Valley Press	10	Inland Valley Daily Bulletin	19.	Philippine News
2.	Black Voice News	11.	Korea Central Daily	20.	Precinct Reporter
3.	Chinese Daily News	12.	La Opinion	21.	Press Enterprise
4.	Desert Sun	13.	La Prensa Hispana	22.	Rafu Shimpo
5.	Eastern Group Publications	14.	La Voz Publications	23.	The Signal
6.	El Chicano	15.	Los Angeles Daily News	24.	State of California
7.	The Excelsior	16.	Los Angeles Sentinel		Contracts Register
8.	El Informador	17.	Los Angeles Times	25.	The Sun
9.	Inland Empire Hispanic	18.	Orange County Register	26.	Wave Community
	News				Newspapers

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

Bid Evaluation

A total of 49 RFPs were mailed to insurance brokerage firms, and 10 proposals were received by the deadline for submittal at 5:00 p.m. on December 5, 2003. The panel scored the proposals based on criteria set forth in the RFP. Firm’s responsiveness to the RFP, their technical expertise in general insurance brokerage, and their public-sector experience were the major evaluation factors.

A panel of four AQMD employees, including the Risk Manager, Plant Engineer, and two Senior Deputy District Counsels, and the Deputy City Manager for the City of Diamond Bar, reviewed the proposals. Of these, one is African-American, three are Caucasian, and one is Hispanic; one is female and four are male.

Campbell & Associates Insurance Brokerage LLC received the highest rating. The firm demonstrated expertise in obtaining advantageous insurance coverage from national and international insurers at cost-effective rates, which would result in cost savings to AQMD.

The attachment lists proposals and their ratings.

Proposal

This action is to authorize the Chairman to execute a contract with Campbell & Associates Insurance Brokerage LLC for the period April 2, 2004, through March 31, 2007, to perform insurance brokerage services. Under the contract, Campbell & Associates would utilize its resources to negotiate, subject to Executive Officer approval, cost-effective and advantageous insurance coverage based on current market conditions. Funds for insurance premiums are included in AQMD’s budget each fiscal year under the District General – Insurance account.

Resource Impacts

Sufficient funding is available for the remainder of FY 2003-04, and funding in an amount not to exceed $49,500 will be requested in successive budget years.

Attachment

Evaluation of Proposals for RFP #P2004-08
 

ATTACHMENT

EVALUATION OF PROPOSALS FOR RFP #P2004-08

INSURANCE BROKERAGE SERVICES
 

Insurance Brokerage Firm	Final Rank	Technical Criteria	Cost	DVBE/Small Business Points	Total
Campbell & Associates Insurance Brokerage	1	68	28		96
Aon Risk Services	2	65	28		93
J&K Risk and Insurance Serv.	3	49	30	10	89
Marsh Risk & Insurance Serv.	4	69	18		87
Driver Alliant Insurance Serv.	5	61	25		86
Willis Risk and Insurance Serv.	6	62	21		83
Kellogg-Cutler-Yenchek Insurance Services	7	53	29		82
USI of Southern California Insurance Services	8	56	23		79
Hays Companies	9	45	25		70
EastWest Insurance Serv.	10	35	28		63

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