Moorestown Friends School REQUEST FOR TECHNICAL PROPOSAL AND PRICE PROPOSAL Broker/Consultant Services for Commercial Insurance Package October 16, 2015 DISCLAIMER The contents and information provided in this Request for Proposal are meant to provide general information to interested parties. The successful Respondents will be required to execute an Agreement with Moorestown Friends School that will govern the rights, duties and obligations between Moorestown Friends School and the successful Respondents. ACCORDINGLY, THE TERMS SET FORTH WITHIN THIS REQUEST FOR PROPOSAL DOES NOT CONSTITUTE ANY CONTRACT BETWEEN MOORESTOWN FRIENDS SCHOOL AND THE SUCCESSFUL RESPONDENTS. MOREOVER, MOORESTOWN FRIENDS SCHOOL ACCEPTS NO RESPONSIBILITY FOR ANY OMISSIONS OR DELETIONS RELATING TO THIS REQUEST FOR PROPOSAL.
SOLICITATION LETTER Moorestown Friends School (hereinafter referred to as MFS ), (www.mfriends.org) requests Technical Proposals (RFP) for a Qualified Broker Consultant to provide brokerage and consultant services. A separate Price Proposal for payment of the services described in Section II and Section III, Scope of Work is also required. It is the intent of MFS to create an agreement with an insurance Broker/Consultant to provide MFS with comprehensive and professional insurance and risk management services, including the marketing of insurance coverages, as needed. STATEMENT OF RIGHTS MFS holds and may at its sole discretion exercise the following rights and options with respect to this solicitation: 1. To select and enter into agreements with the Respondent whose Proposal best satisfies the interests of Moorestown Friends School. 2. To determine which Respondents are responsive and deemed qualified. Moorestown Friends School may reject non responsive proposals without evaluation but also may waive minor non-compliance. 3. To issue amendments to this Request for Proposal. 4. To conduct investigations with respect to the qualifications of each Respondent. 5. To negotiate with Respondents for amendments or other modifications to their responses. 6. To modify dates. 7. To enter into an agreement for the services contemplated by the responses submitted or not to enter into an agreement for the Brokerage/Consultant services for which RFPs are issued. 8. All responses to this RFP are at the sole expense of the Respondent and with the express understanding that no claim can be made for reimbursement from Moorestown Friends School for the expense of preparation or submittal. 9. Responses to this RFP may contain technical, financial, or other data whose public disclosure could cause injury to a Respondent s competitive position, or constitute a trade secret. To protect this data from disclosure, the Respondent should specifically identify such data or information. 2
HOWEVER, MOORESTOWN FRIENDS SCHOOL WILL NOT HONOR ANY ATTEMPT BY A RESPONDENT TO EITHER DESIGNATE ITS ENTIRE RESPONSE AS PROPRIETARY AND/OR TO CLAIM COPYRIGHT PROTECTION FOR ITS ENTIRE RESPONSE. QUESTIONS Any questions regarding this Request for Proposal must be sent electronically to Lisa Carbone Warren at lcarbonewarren@mfriends.org. Please put Commercial Insurance Package RFP in the subject line of e-mails. The deadline for the submission of questions is Noon local time on Friday, October 23, 2015. Answers to questions will be posted collectively on the MFS s website at www.mfriends.org, no later than October 30, 2015. It is the responsibility of the Respondents to check the website periodically. FORM and MANNER of SUBMISSION The RFP response for the Technical Proposal will be completed Questionnaires for the Commercial Insurance Package. Both Questionnaires are attached for the Respondent s completion and submittal. Respondents are required to answer each question in numeric order. A Price Proposal for Broker/Consultant services for the Commercial Insurance Package shall be submitted separately. A separate, sealed envelope plainly marked Price Proposal, RFP for the Commercial Insurance Package shall be submitted containing all Price Proposal information for the Broker/Consultant services RFP. A SIGNED original and five (5) copies of the Response to this Request of Proposal must be submitted in a sealed envelope by 3:00 PM local time on Monday, November 13, 2015 to: Lisa Carbone Warren, Director of Finance and Operations MFS 110 East Main Street Moorestown, NJ 08057 FAXED OR E-MAIL RESPONSES WILL NOT BE ACCEPTED. LATE RESPONSES WILL NOT BE ACCEPTED AND WILL BE RETURNED UNOPENED TO THE RESPONDENTS. EVALUATION AND SELECTION All responses will be reviewed by an evaluation team. The team will determine which technical proposals best meet the needs of Moorestown Friends School. 3
Moorestown Friends School will evaluate all Technical Proposals considering the following factors. The order in which the factors are listed below are not ranked in order of importance: 1. The relevant experience and knowledge of the Respondent with respect to the areas of Brokerage/Consultant services as specified in the RFP. 2. The knowledge and experience of the Respondent s Key Personnel who are identified to provide the actual services to Moorestown Friends School. Respondents should clearly identify Key Personnel who will be assigned to work on Moorestown Friends School s account, and provide a background on each person s expertise and experience. 3. Evidence of adequate professional liability insurance coverage, as indicated in the RFP. 4. Any prior relevant experience with similar independent day schools and in particular with Friends schools. 5. Clear evidence of the Respondent s understanding and acceptance of the terms of engagement and total compensation to be paid for the comprehensive Broker/Consultant services to be provided to Moorestown Friends School. The final determination will be based on Moorestown Friends School s evaluation, in its sole judgment, as to which Technical Proposal best meets the needs of Moorestown Friends School. Moorestown Friends School reserves the right to recommend the award of the Brokerage/Consultant services agreement to the firm that has been judged to have best met the requirement of the Request for Proposal as determined by Moorestown Friends School in its sole discretion. Respondents are advised that Moorestown Friends School reserves the right to meet with Respondents to discuss details of their Technical Proposal and/or to request written clarification or additional details necessary to clarify the proposal. All such additional, supplemental or clarifying information may be considered as part of the technical evaluation of the Response. Meetings may be held at the request of Moorestown Friends School and, if required, shall take place prior to the opening of negotiations for a Brokerage/Consultant agreement. In addition to reviewing the Technical Proposals, Moorestown Friends School will also consider the Price Proposals. APPROVAL, AWARD, & EXECUTION OF CONTRACT Once the evaluation process has been completed, MFS administration will recommend to the MFS Assets Committee, award of a contract to the Respondent whose Proposal is deemed to be most advantageous to MFS. MFS expects to make an award on or after December 15, 2015 for the policies for the Commercial Insurance Broker/Consultant Services, subject to all rights reserved to MFS herein. The contract will be for a two-year term with an option for a third year, unilaterally exercisable by MFS at its sole discretion. MFS reserves the right to cancel the award of a contract before execution if MFS deems such cancellation to be in its best interest. In no event will MFS have any liability for the cancellation 4
of such award. The Respondent assumes the sole risk and responsibility for expenses incurred prior to execution of the contract. MFS will not entertain requests that it explain its decisions or debrief unsuccessful Respondents. All Responses supporting and/or subsequent materials will become the property of the MFS and will not be returned. BROKER/CONSULTANT COMPENSATION The Broker/Consultant shall render the insurance brokerage services and, as requested by MFS from time to time, the consulting services listed under II Scope of Work. Respondents are requested to submit their Price Proposal in two ways for consideration by MFS. a. State the proposed annual fixed service fee for all Broker/Consultant services to be provided. Respondents are advised that MFS reserves the right to negotiate with Respondents to discuss details of their proposed annual fixed service fee and/or to request written clarification or additional details necessary to clearly understand the final negotiated fixed annual services fees for Broker/Consultant services to be provided to MFS. All such additional, supplemental or clarifying information may be considered as part of the Price Proposal evaluation. Proposer should understand that the foregoing compensation shall be full payment for all work performed by the Broker/Consultant that executes an agreement pursuant to this Request for Proposal including, but not limited to, all services, materials, supplies, travel, overhead, profit, taxes and other incidental and operating expenses performed by Broker/Consultant. Payment for services described in Scope of Work shall be paid on a monthly basis or quarterly basis, to be determined upon award of the contract. b. The second Price Proposal shall assume that the Respondent s fee for the professional services to be provided shall be limited to the commissions paid by the carriers. MFS requires that all commissions shall be disclosed to MFS before any coverage is placed or bound on behalf of the school. I. BACKGROUND Moorestown Friends School (MFS), located in historic Moorestown, New Jersey, is a Quaker based Pre-K through 12 school on a 44 acre campus. MFS has a very long history, being first established in 1785 and then moving to its current site in 1920. The existing school buildings contain approximately 155,737 square feet of classroom and ancillary facilities on their main campus. In addition, MFS owns several other properties near or adjoining their campus. 5
MFS is a non-profit corporation with a 501 (3) status with religious, or church, exemption also. Over the last 2 decades MFS has increased its enrollment substantially, almost doubling in size. Naturally, other changes have followed and we now boast an expanded campus, more employees and increased financial activity. The Commercial Insurance Package coverage placed on behalf of Moorestown Friends School consists of multiple policies with varying policy expiration dates from September 1, 2015, November 8, 2015, January 1, 2016 and August 1, 2016. Moorestown Friends School s Commercial Insurance Package includes Property Insurance, General Liability, and Umbrella Liability; Business Auto Liability, Employer s Liability, Crime, Equipment Breakdown Boiler & Machinery Directors & Officers Liability, Employment Practices & Fiduciary Liability, Employee Benefits Liability, Abuse & Molestation, Professional Liability, Volunteers Accident Insurance, Foreign Travel Insurance, Cyber Breach Response policy and a $200,000 bond on a pooled life income fund. Moorestown Friends School is insured through NJ Manufacturers for Workers Compensation. The Commercial Insurance Package detailed program information is included as Appendix 2. II. SCOPE OF WORK The services of the Brokerage/Consultant Firm shall generally consist of the renewal, marketing and administration of Moorestown Friends School s Commercial Insurance Package policies for this Request for Proposal. Refer to Appendix 2, included herein, for specific program structures. III. DESCRIPTION OF BROKERAGE/CONSULTING FIRM TASKS ALL PROGRAMS The Broker/Consultant s tasks for Moorestown Friends School s Commercial Insurance Package shall include, but are not limited to: TASK A. PROGRAM DEVELOPMENT 1. Act as liaison with insurers and allow Moorestown Friends School direct access to the worldwide underwriting community in order to effectively and efficiently market the programs. 2. Assess and evaluate the risks that can arise from MFS operations under each of the operational insurance programs. This includes analyzing the risk management issues that arise in MFS projects and identifying the appropriate information needed to complete the analysis, which may include the review of the liability portion of documents to identify the liability exposures Moorestown Friends School is retaining and/or transferring. 6
3. Advise Moorestown Friends School on the availability and appropriateness of insurance products to respond to changing exposures. 4. Continue to assist in the assessment of Cyber Liability and Terrorism risk exposures and implementation of mitigation efforts, including the marketing and placement of insurance, to address these exposures. 5. Broker/Consultant Safety Services Department will assist Moorestown Friends School with Loss Prevention and Loss Reduction services including but not limited to; Reviewing Existing Programs/Procedures, Performing Field Observations, Serving as Technical Resource and Providing Safety Literature and current news on various topics relating to Moorestown Friends School s operational facilities. TASK B. PROGRAM MANAGEMENT 1. Prepare an insurance policy summary/register. 2. Verify all policies, endorsements, and billings from carriers. 3. Monitor insurance company services and financial security of all participating carriers on the programs. Advise Moorestown Friends School immediately if any carrier on either program has been downgraded by A.M. Best or is on a negative watch. Present strategies to replace the affected carrier in a report for review by Moorestown Friends School within 15 days of notification to Moorestown Friends School. 4. Prepare and issue required insurance certificates in accordance with standards, procedures, and specifications requested by Moorestown Friends School. 5. Provide quarterly status reports on claims reported to the insurers with appropriate action recommendations. 6. Resolve coverage questions/disputes in a timely and amicable fashion. 7. Prepare an annual stewardship report providing a description of accomplishments, goals and Broker/Consultant matters. Present the report to Moorestown Friends School and incorporate any comments and resubmit the report as final. 8. Provide schedules of insurance and coverage charts as requested by Moorestown Friends School. 9. Provide periodic industry specific insurance market update reports, including, but not limited to: 7
a) Summaries of the insurance market attitudes or concerns towards independent schools. b) Identification of new markets, recent losses, and staffing changes as available. c) Discussion of changes in insurer s coverage form, limit capacity and philosophies (as applicable). 11. Broker/Consultant shall always be available to address in a timely and reasonable manner, any coverage, risk management or other insurance-related questions posed by MFS personnel, on issues including but not limited to Moorestown Friends School s Commercial Insurance Package policies. At Moorestown Friends School s request, the Broker/Consultant will provide a written follow-up letter detailing and documenting the guidance provided. In short, it is expected that the Broker/Consultant shall serve as a full-service Insurance Consultant to Moorestown Friends School. TASK C. PROGRAM RENEWAL 1. At least 120 days prior to the expiration of the insurance programs, (or at such earlier time as may be requested by Moorestown Friends School) meet with Moorestown Friends School s Director of Finance and Operations to discuss the renewal goals and strategy (the Pre-Renewal Meeting ). The Broker/Consultant will present at each Pre-Renewal strategy meeting: a five year loss history exhibit for each policy which shall include at a minimum, annual paid premiums including any taxes or surcharges, number of open and closed claims, total claim amounts paid and incurred to date and the applicable loss ratio for the five year period. At Moorestown Friends School s request, the Broker/Consultant will arrange a meeting with the underwriters to meet with the Director of Finance and Operations to discuss renewal expectations and challenges. 2. Based on the results of the Pre-Renewal Meeting, and at least 90 days before expiration of the insurance programs, (or at such earlier time as may be requested by Moorestown Friends School) the Broker/Consultant is expected to develop annual renewal specifications for the Commercial Insurance Package policies to be prepared by the Broker/Consultant and approved by Moorestown Friends School. The Broker/Consultant will then distribute underwriting submissions to all global markets with quotes due to Moorestown Friends School by an agreed upon date. At Moorestown Friends School s request, the Broker/Consultant will release all written marketing documentation from the insurance carriers. 3. Provide a comprehensive review of policy forms and endorsements at renewal for accuracy and to identify enhancements to coverage for the Commercial Insurance Package policies. In addition, advise Moorestown Friends School of any identified gaps in coverage and/or inadequate coverage. 8
4. Email all renewal binders at least 30 days prior to expiration, over-night the Automobile ID cards at least three weeks prior to expiration and email completed renewal policies within 120 days of the effective date to Moorestown Friends School s Director of Finance and Operations. The Broker/Consultant shall mail to Moorestown Friends School s Director of Finance and Operations, all renewal policies including all applicable policy forms and endorsements along with the binder copies, in one cohesive three-ring binder within 120 days of the policy s effective date. All policy endorsements correcting the initial policy issuance shall be emailed by the Broker/Consultant to Moorestown Friends School s Director of Finance and Operations within six months of the policy effective dates. TASK D. CLAIMS MANAGEMENT SERVICES: 1. Advise/Assist with the reporting of claims resulting from the Commercial Insurance Package programs 2. Advocate on Coverage Positions for Moorestown Friends School s Commercial Insurance Package 3. Provide Regular Claims-related Correspondence/Updates to Moorestown Friends School. 4. Monitor Claims Activity. 5. Provide Emergency Claims Service for Moorestown Friends School s Commercial Insurance Package. 6. Upon Moorestown Friends School s request, schedule and coordinate a Claims Services Review Meeting for Moorestown Friends School s Commercial Insurance Package programs on an annual basis with insurance claim representatives and Moorestown Friends School. TASK E. ADDITIONAL SERVICES When directed by Moorestown Friends School, the Broker/Consultant shall: 1. Upon request, provide presentations to Moorestown Friends School s governing body and others on issues that relate to the renewal, coverage, and market updates of the Commercial Insurance Package programs. 2. Provide interpretation and analysis of specific coverage issues. 3. Prepare insurance data for audits. 9
4. Assign a specific claims consultant with expertise with Moorestown Friends School s individual policies comprising the Commercial Insurance Package insurance program to ensure knowledgeability of coverage and to evaluate and monitor claim reserves proactively. The Broker/Consultant will manage all claims and maintain up-to-date communication with Moorestown Friends School s insurance companies and Moorestown Friends School s Director of Finance and Operations. 5. Conduct property surveys at specified MFS facilities insured under the Commercial Insurance Package insurance policies. 6. Moorestown Friends School, through its Director of Finance and Operations, reserves the right to have any member of the Broker/Consultant service team removed from the account. Moorestown Friends School further reserves the right, through its Director of Finance and Operations to approve any substitute(s) or replacement(s). IV. ADDITIONAL SERVICES 1. Upon request, provide presentations to MFS s governing committees and others on issues that relate to the renewal, coverage, and market updates of the insurance programs. 2. Provide interpretation and analysis of specific coverage issues and industry trends. 3. Prepare insurance data for audits and as needed in support of any applications submitted on behalf of MFS for local, state or federal programs. 4. Maintain Insurance Agent s Errors and Omissions insurance with limits of not less than $5,000,000.00 per occurrence. 5. MFS reserves the right to have any member of the broker/consultant service team removed from the account. V. STANDARD CLAUSES The winning proposer shall be required to enter into an Agreement which includes, but is not limited to, the following clauses: A. SAVE AND HOLD HARMLESS 10
CONTRACTOR agrees to defend, indemnify and protect and hold harmless the MFS, its officers, commissioners, directors, members, agents, servants and employees from and against any and all suits, claims, liabilities, losses, judgments, demands and tender payments for damages arising from claims by third parties, of whatsoever kind or nature, including, but not limited to, reasonable expenditures for and costs of investigations, hiring of expert witnesses, court costs, counsel fees, settlements, judgments or other expenses recoverable under applicable law, which may be suffered by or accrue against, be charged to or recoverable from the MFS, its officers, commissioners, directors, members, agents, servants and employees regardless of whether a suit has been filed or initiated but only upon receipt of a written notice alleging a wrongful act (collectively Claims ) to the extent arising from the willful misconduct, reckless, grossly negligent or negligent performance of or omission of performance of the services provided under this Agreement. This includes but is not limited to Claims caused in part by the MFS, its officers, commissioners, directors, members, agents, servants and employees or which are based on strict liability. However, CONTRACTOR shall not be required to defend or indemnify the MFS, its officers, commissioners, directors, members, agents, servants and employees for that portion of any claim, suit, action, damage or cost which is caused by the willful misconduct, reckless or grossly negligent act or omission of the MFS, its officers, commissioners, directors, members, agents, servants and employees. CONTRACTOR explicitly and unequivocally agrees to indemnify and defend MFS against allegations of its own independent fault against MFS s employees, notwithstanding Workers Compensation Act provisions to the contrary. Promptly after receipt by MFS of notice of any claim, liability or expense, MFS shall give timely written notice to CONTRACTOR, but the omission to so notify the indemnifying party promptly will not relieve the indemnifying party from any liability except to the extent that CONTRACTOR shall have been materially prejudiced as a result of the failure or delay in giving such notice. CONTRACTOR understands and agrees that the defense and indemnification of the MFS under the terms and conditions of this document begins when a claim is brought against the MFS, its officers, commissioners, directors, members, agents, servants and employees or the moment the MFS, its officers, commissioners, directors, members, agents, servants and employees receives notice of the Claim. The obligations of CONTRACTOR shall survive the termination of this Agreement or the completion by CONTRACTOR of its obligations under this Agreement. B. TERMINATION It is understood and agreed that the MFS hereby reserves unto itself the right to terminate this Agreement at any time, for any reason whatsoever, upon giving not less than thirty (30) days prior written notice to the CONSULTANT. In the event of Moorestown Friends School s exercising such right of termination, Moorestown Friends School shall be without further liability whatsoever to the CONSULTANT under this Agreement, except that Moorestown Friends School will pay the CONSULTANT the amount of fee earned by the CONSULTANT to the date of said termination. CONSULTANT agrees 11
that it shall not be entitled to any damages of any nature whatsoever in the event of such termination other than the above referenced payments. C. WORK PRODUCTS All materials, calculations, computations, specifications, drawings and intellectual property developed and prepared by the CONSULTANT, in the performance of its services herein, shall become the property of Moorestown Friends School, and shall be turned over to Moorestown Friends School at or prior to the termination of this Agreement, or upon written request of Moorestown Friends School. D. INTELLECTUAL PROPERTY CONSULTANT acknowledges and agrees that all work produced pursuant to this Agreement is work made for hire and accordingly, all copyright, trademark, and intellectual property rights are owned exclusively by MFS. 12
E. SUB-CONTRACTING Prior written approval of Moorestown Friends School is required for subcontracting any services covered by this Agreement other than those included in the CONSULTANT's Proposal. Requests for authorization to subcontract must be submitted in writing to the MFS's Director of Finance and Operations accompanied by a description of the specific work to be subcontracted, the total value of such sublet work, and proof that the organization which will perform the work is qualified. The right to qualify, accept or reject any subcontractor is reserved expressly to Moorestown Friends School. F. NONDISCRIMINATION The CONSULTANT warrants and represents that in carrying out its obligations under this Contract, it will not discriminate against employees or applicants for employment because of race, color, religion, national origin, sex, age, or disability, and will undertake or continue to comply with all existing or future state and federal laws, rules and regulations respecting programs of Affirmative Action to ensure that minority group members and women are afforded equal employment opportunities without discrimination. For purposes of this Contract, affirmative action shall mean those activities undertaken during the course of recruitment, employment, job assignment, promotion, upgrading, demotion, transfer, layoff or termination, and rates of pay or other forms of compensation, to ensure that minority group members and women are afforded equal employment and contracting opportunities. All advertisements or requests for employment placed by the CONSULTANT or on the CONSULTANT s behalf, shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, age or disability. The CONSULTANT shall comply with all state and federal laws prohibiting discrimination in hiring or employment opportunities. In the event the CONSULTANT fails to comply with the provisions of the nondiscrimination clause of this contract or with any applicable laws, the Contract may, after hearing and adjudication by MFS, be terminated or suspended, in whole or in part, and the CONSULTANT may be declared temporarily ineligible for further MFS contracts. Such termination or suspension shall not entitle CONSULTANT to any damages or additional compensation. 13
G. AUDIT AND INSPECTION OF RECORDS The CONSULTANT shall permit the authorized representatives of MFS to inspect and audit all data and records of the CONSULTANT relating to his performance under this Agreement. H. CONSULTANT - INDEPENDENT CONSULTANT The CONSULTANT is an independent contractor, and under no circumstances shall it, its servants, agents or employees be or become employees of MFS in conduct of the work under this Agreement. I. CONFIDENTIALITY CONSULTANT acknowledges that it may have access to Moorestown Friends School s confidential and proprietary information. It is understood and agreed that any such information learned through the course of working for Moorestown Friends School is confidential and shall not be revealed by CONSULTANT to any third party or upon receipt of a valid Subpoena or Court Order. In the event that the CONSULTANT is served with a Subpoena or Court Order, CONSULTANT shall immediately submit a copy to the General Counsel of Moorestown Friends School, and allow reasonable time for Moorestown Friends School to respond in an appropriate fashion to the validity of the document, prior to CONSULTANT s compliance with the Subpoena or Court Order. Confidential and proprietary information, including details of the awarded contract, shall only be used in the performance of work authorized by Moorestown Friends School. Within thirty (30) days of the expiration or termination of this Agreement, CONSULTANT shall return to Moorestown Friends School all documents received from Moorestown Friends School. J. ASSIGNMENT This Agreement and the obligations created hereunder may not be assigned by CONSULTANT without the express written consent of the MFS. K. WAIVER A waiver by any party of a breach or default by the other party of any provision of this Agreement shall not be deemed a waiver of future compliance therewith, and such provisions shall remain in full force and effect. If any provision of this Agreement shall be invalid or unenforceable, in whole or in part, such provision and this Agreement shall be deemed and construed to be modified or restricted to the extent that and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement as the case may require. 14
L. MODIFICATION It is expressly understood and agreed by and between the parties hereto that this Agreement sets forth all the promises, conditions and understandings between them relative to this Agreement and that there are no premises, agreements, conditions or understandings, either oral or written, between the parties other than are herein set forth. It is further understood and agreed that no modification, alteration or other change to this Agreement shall be binding unless reduced to writing and signed by a duly authorized representative of the parties hereto. M. CHOICE OF LAW This Agreement shall be interpreted under the laws of the State of New Jersey and except as otherwise specified herein, all lawsuits arising from this Agreement shall be brought in State or Federal court in the County of Camden New Jersey. 15
APPENDIX 1 (SEE ATTACHED) 16