BOARD MEETING DATE: February 3, 2006
AGENDA NO. 11

Execute Contract for Independent Audit Services for FYs Ending
June 30, 2006, 2007, and 2008

SYNPOSIS:

On October 7, 2005, 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 its January 13, 2006 meeting.  After the Committee interviewed representatives of each of the firms, Thompson, Cobb, Bazilio & Associates, P.C. was selected to be recommended to the full Board.

COMMITTEE:

Administrative, January 13, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to execute a contract with Thompson, Cobb, Bazilio & Associates, P.C. for performance of AQMD’s Financial Audits for the FYs ending June 30, 2006, 2007, and 2008 in an amount not to exceed $122,100.

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 AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the following publications:

Additionally, potential bidders may have been notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ was mailed to the Black 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). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluations

Seventy six copies of RFP #P2006-08 were mailed out. Seven (7) quotations were received when the bidding closed at 1 p.m. on November 10, 2005.

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, a Financial Analyst, and the Controller. The panel consisted of two females and two males; one Asian Pacific American and three Caucasian. After technical evaluation, four firms were eliminated as they did not meet the minimum technical requirements of the RFP. The evaluation results for the remaining bidders are as follows:
 

*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; qualifications and experience of audit team; cost; and Small Business/Small Business Joint Venture/Disabled Veteran Business Enterprise/Disabled Veteran Business Enterprise Joint Venture, use of Disabled Veteran Business Enterprise or Small Business Subcontractors, Low-Emission Vehicle Business, and Local Business designation (non-EPA). Based on the panel’s assessment of the criteria, three proposals were recommended to the Administrative Committee for its consideration and recommendation to the full Board.

Resource Impacts

The maximum audit costs, including out of pocket expenses are $39,380, $40,700, and $42,020, for FYs ending June 30, 2006, 2007, and 2008, respectively. Sufficient funds for the first year of the contract have been included in the FY 2005-06 Budget and will be budgeted for in the second and third years.

/ / /