DATE: October 16, 2018
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator / CFO
Kevin Townsel, Human Resources Director
Brian Wilcox, Purchasing Manager
SUBJECT:
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Consideration Of Procurement Award To Findley, Inc. Of Brentwood, Tennessee In The Estimated Annualized Amount Of $39,400 For Closed Employee Pension Plan And OPEB Actuarial Consulting Services For A Term Of Award (Purchasing Office Procurement Solicitation No. 2019-001; Contract No. 2018-0225) (10/23/18 Work Session)
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Purpose
The purpose of this procurement is to purchase closed employee pension plan and other post-employment benefits (OPEB) actuarial consulting services for a term of award of three (3) years, with up to two (2) options to extend, each time for up to one (1) additional year, for a maximum possible term of award of five (5) years total.
Background
The City published on August 9, 2018 a Notice to Proposers in the Williamson Herald for closed employee pension plan and OPEB actuarial consulting services. In addition, solicitation documents were sent on or about the same date directly to five (5) potential proposers known or thought to be interested in this solicitation. Proposals from three (3) service providers were publicly opened at the submittal opening held on September 11, 2018. A tabulation of the proposals received for this solicitation is attached.
Using evaluation criteria included in the request for proposals, the proposal evaluation team, consisting of Assistant City Administrator for Finance and Administration / CFO Kristine Tallent, City Comptroller Mike Lowe, Benefits/Risk Manager Sara Sylvis, and retired Assistant City Administrator for Finance and Administration / CFO Russ Truell, recommended the City interview the two firms submitting the proposals ranked highest by the proposal evaluation team, namely Acuff & Associates (which is the incumbent service provider) and Findley, both of Brentwood. The proposal evaluation team scored these two firms’ proposals higher for all but one (fee for proposed services) of the evaluation criteria included in the request for proposals, namely (a) competency, experience and qualifications, (b) unique strengths of the proposer/proposal, (c) thoroughness and quality of proposal, and (d) methodology and approach; pricing and payment clarity; transition schedule.
The two finalists were subsequently invited to interview, at City Hall. Both firms accepted. After interviewing both finalists, using evaluation criteria included in the request for proposals, the interview panel (consisting of the same individuals as comprised the proposal evaluation team plus Human Resources Director Kevin Townsel) recommends the City select the firm of Findley, Inc. The foremost reasons why the interview panel reached this recommendation include:
• Firm’s overall breadth and depth of experience with a variety of clients;
• Depth of experience of key staff members;
• Competency of staff and communication skills;
• Commitment to timing of deliverables; and
• Understanding of interview questions and quality of responses.
A reference check by staff for Findley has yielded favorable feedback.
At its meeting on October 15, 2018, the Employee Pension Committee voted unanimously to concur with the interview panel’s recommendation.
Financial Impact
The proposal ranked highest by the interview panel, from Findley, Inc. of Brentwood, Tennessee, is in the estimated annualized amount of $39,400 for closed employee pension plan and OPEB actuarial consulting services for a term of award. (The amount of this proposed fee is comparable to the annual fees paid by the City to the incumbent for similar services.) The fees for services rendered that pertain to the closed employee pension plan, estimated to total $33,000 on an annualized basis, would be allocated to the pension trust, while the fees for services rendered that pertain to OPEB, estimated to total $6,400 on an annualized basis, would be allocated to the General Fund appropriation for the Human Resources Department.
Options
In accordance with the solicitation documents, the City reserves the right to reject any and all proposals.
Recommendation
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Staff recommends that the City accept, contingent upon Law Department and City Administrator approval of City Contract No. 2018-0225, the proposal ranked highest by the interview panel, from Findley of Brentwood, Tennessee, in the estimated annualized amount of $39,400 for closed employee pension plan and OPEB actuarial consulting services for a term of award, and award this procurement to this proposer. Staff believes the prepared solicitation documents as distributed allowed for competition among multiple service providers, and that the recommendation is being made in a fair and impartial manner based upon the proposals received. Contract No. 2018-0225 is not yet in final form and therefore is not attached. When it is in final form, and if the staff recommendation to accept the proposal from and award the procurement to Findley is approved by the Board of Mayor and Aldermen, then, pursuant to authority previously granted by the Board of Mayor and Aldermen, Contract No. 2018-0225 will be executed by the City Administrator and subsequently reported to the Board of Mayor and Aldermen.