BOARD MEETING DATE: October 5, 2007
AGENDA NO. 3

COMMITTEE:

Administrative, September 14, 2007, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to execute a contract with Alliant Insurance Services, Inc., to provide health insurance consultant and brokerage services for the period October 5, 2007, through August 31, 2010. This is a no-cost contract, as all fees for these services will be paid directly to Alliant Insurance Services, Inc., by affected insurance carriers as commissions.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Currently, two consultant/brokerage firms assist AQMD in obtaining high quality, cost-effective medical, dental, vision, life, and other health insurance products for AQMD employees and their dependents. To ensure AQMD continues to provide cost-effective health insurance coverage to its employees and their dependents, the Board approved release of RFP #P2007-29 to seek proposals from firms interested in providing consultant/brokerage services for a three-year period, through August 31, 2010.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP has been mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, the State of California Contracts Register website, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Six proposals, five of which were complete and met RFP requirements, were received when final bidding closed at 5:00 p.m., June 22, 2007.

The panel that evaluated proposals included AQMD’s Chief Financial Officer, a Senior Deputy District Counsel, a Human Resources Manager, and a Human Resources Analyst, as well as representatives of both AQMD unions—the president of the South Coast Professional Employees Association (who is also an Air Quality Specialist with the agency) and the Secretary-Treasurer of Teamsters, Local 911. Of these, one is Asian, three are Caucasian, and two are Hispanic; one is female and five are male.

The panel scored the five responsive proposals based on criteria set forth in the RFP, which included understanding of the requirements, contractor qualifications, previous experience providing insurance consultant/brokerage services for comparable public agencies, and client references. One of the proposals did not receive the minimum technical score required by AQMD’s contracting policy, and it is not included in the final list of scores. Scores of the remaining four proposals are listed in Attachment A.

Resource Impacts

All costs associated with this contract will be paid directly to Alliant Insurance Services, Inc., as commissions by affected insurance carriers. There is no cost to AQMD.

Attachment
A - Evaluation of Proposals for Insurance Consultant/Brokerage Services

ATTACHMENT A

EVALUATION OF PROPOSALS
FOR Insurance Consultant / Brokerage Services
RFP #P2007-29