Title
Insurance Brokerage and Related Consulting Services Contract (Ordinance S-45208)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Marsh USA, Inc., and with USI Insurance Services National, Inc., to provide insurance brokerage and related consulting services. Authorization is also requested for the City Controller to disburse funds over the life of the contracts. The total cost over the life of the five-year agreement with Marsh USA, Inc., is not to exceed $826,000. The services under the USI Insurance Services National, Inc., agreement are on an as-needed basis and are estimated not to exceed $145,000 over the life of the five-year agreement.
Report
Summary
The Finance Department will use the insurance brokerage and related consulting services for the City to access the appropriate markets and to purchase the appropriate insurance and surety coverage for citywide operations. Brokers will market and evaluate property and casualty insurance and surety coverages. This will assure that the most advantageous risk financing program is maintained for the City.
Procurement Information
RFP 18-01 RMD was conducted in accordance with A.R. 3.10. It was posted on phoenix.gov and published in the Arizona Business Gazette. A pre-proposal conference was attended by three firms on Sept. 4, 2018. Four proposals were received on Oct. 1, 2018. A committee evaulated the proposals based on qualifications and experience (500 points), method of approach (300 points), and pricing (200 points).
Property & Casualty:
Marsh USA, Inc.: 914 points
Surety:
USI Insurance Services National, Inc.: 910.8 points
Contract Term
The contract term for each contractor is five years. The contract with Marsh USA, Inc. will begin on or about Jan. 31, 2019. The contract with USI Insurance Services National, Inc., will begin on or about May 1, 2019.
Financial Impact
The total cost over the life of the agreement with Marsh USA, Inc., is not to exceed $826,000. The services under the USI Insurance Services National, Inc., agreement are on an as-needed basis and dependent upon the City's requirements for condemnation bonds, notary bonds, public official bonds and other surety needs, and are estimated not to exceed $145,000 over the life of the agreement.
Funding is available in the Risk Management Self-Insurance Trust.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.