925 Felix Street St. Joseph, MO 64501 Telephone: 816-671-4000 Fax: 816-671-4469 REQUEST FOR PROPOSAL Insurance Broker Services Property Liability Casualty Fleet Workers Compensation CONTACT: RESPONSE DUE: Roy Lashbrook Purchasing Manager roy.lashbrook@sjsd.k12.mo.us 2:00 p.m. CDST, April 26 th 2016 LOCATION: St. JOSEPH SCHOOL DISTRICT BUSINESS OFFICE 925 FELIX ST. JOSEPH, MO 64501
Scope of Services Requested The School District of St. Joseph ("District") seeks to retain the services of a company or insurance broker ("Broker") to provide risk management assessment on a District-wide basis and to assist the District in implementing a program to address those risks that would include placing necessary insurance contracts. The services would be for (but not limited to) the areas of coverage noted above and detailed below. The District may select a different broker for each of line of coverage. The District requests this service for FY and calendar year 2017 as appropriate with possible renewal for succeeding years. The insurance policy for workers' compensation is on a fiscal basis, July-June; the policies for all other lines of coverage (property building and contents, boiler and machinery, inland marine, crime, automobile, general liability, medical malpractice, employment practices liability, employee benefit liability, public officials errors and omissions, garage-keepers legal liability) are calendar year. The services subject to this request include, at a minimum, the following: 1. Complete a District-wide risk assessment in the areas of casualty and property, and other areas that may become apparent as a result of the assessment. 2. Based on the risk assessment, provide a comprehensive program for addressing the risks to include locating insurance carriers, obtaining competitive bids as requested by the District, negotiating directly with those carriers on behalf of the District, and placing necessary insurance contracts. In subsequent years, conduct renewal negotiations with the carrier(s) utilized. The Broker shall act as the liaison between the District and the insurance carriers on all issues related to the insurance contract including but not limited to claims. 3. Provide ongoing consultation, advice and counsel to the District regarding ongoing risk assessment and programs to address identified risks; insurance policy review, interpretation and renewal; changes or updates in policy coverage; claims submittal, procedures and resolution; changes in financial status or condition of insurance carriers used by the District; significant changes in the insurance marketplace which may affect the District. 4. The District seeks the assistance of a Broker who will view their role as the District's advocate and will take an aggressive position in assisting the District with overseeing all claims. The District desires to become more proactive in the claims process in an attempt to control losses related to claims handling and settlement. 5. Provide prompt responses or service to District inquiries, requests for information or assistance or certificates of insurance. The District expects responses within 48 hours to its inquiries and requests and/or a communication from the Broker as to when a response may be expected. 2
Proposal Guidelines Response: Three (3) copies of the Broker's response with the signed Acknowledgement accompanying each should be submitted to the School District of St. Joseph, Business Office, 925 Felix, St. Joseph, MO 64501. Responses are to be marked RFP Insurance Broker Services. Electronic or facsimile offers will not be considered in response to this RFP, nor will modifications by electronic or facsimile notice be accepted. In order to be considered, you must respond to each separate inquiry in the Request for Proposal listed under "Information Requested." Incomplete responses will not be considered. The District reserves the right to request clarifications concerning information provided in the response. The District is not liable for any cost or expense incurred by the Broker in responding to this Request for Proposal. All responses shall remain valid and binding for a period of ninety (90) calendar days from the proposal submission date. An authorized representative of Broker shall sign all responses. Term: The term of the agreement for services with the selected Broker shall be one year with the option to renew the agreement on an annual basis for additional years. The agreement will further provide that either party may terminate the agreement based on a material breach by the other party or with or without cause upon giving 30 days written notice. Fee: The District is requesting that the services be provided on an annual flat fee basis. The Broker must agree to quote insurance contracts on a "net of commission" basis, or that any commissions received by the Broker from the insurance carrier shall be credited against the fee owed by the District with any excess paid to the District. Response Deadline: Responses must be received by 2:00 p.m. CDST April 26th, 2016. Responses received after the deadline will not be opened and will be returned. Selection Criteria: The criteria considered in selecting the Broker will include, but not be limited to (1) qualifications and experience of personnel in the school district/public entity market, (2) school district/public entity market experience, (3) financial stability, (4) insurance markets proposed, (5) scope and quality of services offered, and (6) amount of fee for services. Award: The intent of the District would be to make the selection on or before the M a y 23 rd, 2016 Board meeting. The District reserves the right to reject any and all proposals and to make the award at its sole discretion and for the benefit of the District. The District is not bound to accept the proposal solely based on the lowest monetary offer. The District further reserves the right to negotiate the specific terms of the agreement with the Broker awarded the contract that would include the amount of the proposed fee. 3
General Conditions 1. The information presented in the RFP is not to be construed as a commitment of any kind on the part of the District. There is no expressed or implied obligation for the District to reimburse responding firms for any expenses incurred in preparing Proposals in response to this request, or for any pre-agreement expenses. 2. Although the District cannot bind future governing bodies, it is anticipated that Broker selected to serve as the District's insurer will be retained for multiple years with annual evaluations made of its services and renewal rates. 3. Any explanation or statement that Broker wishes to make must be contained with the Proposal. Unless Broker so indicates, it is understood that Broker has proposed in strict accordance with the RFP requirements. 4. The District reserves the right to reject any or all Proposals and to waive informalities and minor irregularities in Proposals received. The District, in its sole discretion, will determine whether an irregularity is minor. 5. All Proposals shall be deemed final, conclusive and irrevocable and no Proposal shall be subject to correction or amendment for any error or miscalculation. No Proposal shall be withdrawn without the consent of the District after the scheduled closing time for the receipt of Proposals. 6. Broker is responsible for its own verification of all information provided to it. Broker must satisfy itself, upon examination of this RFP, as to the intent of the specifications. After the submission of the Proposal, no complaint or claim that there was any misunderstanding will be entertained. 7. No oral interpretation will be made to any Company as to the meaning of the RFP. Any oral communication will be considered unofficial and non-binding on the District. Unauthorized contact by Broker with other District employees or Board members regarding the RFP may result in disqualification. 8. Requests for interpretation must be made in writing to the reference contact listed in this document. It is the Districts intent that no additional information will be supplied, however, any information given to a Broker candidate concerning the RFP will be furnished to all Brokers as a posted addendum to the RFP if, in the District's sole discretion, such information is deemed necessary to all Brokers in submitting Proposals on the RFP, or the lack of such information would be prejudicial to uninformed Brokers. The Broker should rely only on written statements issued by the District in the form of an addendum to the RFP. 9. Proposals may contain data that Broker does not want used or disclosed for any purpose other than evaluation of the Proposal. The use and disclosure of such data may be so restricted, provided Broker marks the cover sheet of the Proposal with the following legend: "Data contained on pages and in this proposal furnished in connection with the Request for Proposal of the St. Joseph School District shall not be used nor disclosed except for evaluation purposes, provided that, if a contract is awarded to this company, as a result of, or in connection with the submission of this Proposal, the St. 4
Joseph School District shall have the right to use or disclose data to substantiate the award of a contract." 10.The above restriction does not limit the District's rights to use or disclose without Broker's permission any data obtained independently from another source. Proposals shall not contain any restrictive language different from the above legend. Proposals submitted with restrictive legends or statements which differ from the above will be treated under the terms of the above legend. The District assumes no liability for disclosure or use of unmarked data and may use or disclose the data for any purpose. 11. The District may accept one part, type of coverage, or any combination thereof, of any Proposal unless Broker specifically qualifies its offer by stating that the Proposal must be taken as a whole. 12.The District may award a contract based upon the initial Proposals received without discussion of such Proposals. Accordingly, each initial Proposal should be submitted with the most favorable price and service. 13. Neither the commencement nor cessation of negotiations shall constitute rejection of the Proposal or a counteroffer on the part of the District. 14.Broker shall not, under penalty of law and immediate disqualification of the Proposal, offer or give any gratuities, favors or anything of monetary value to an officer, employee, agent, or member of the Board of Education of the District for the purpose of influencing favorable disposition toward a submitted Proposal or for any reason while a Proposal is pending or during the evaluation process. 15.No Company shall engage in any activity or practice, by itself or with other Companies, the result of which may be to restrict or eliminate competition or otherwise restrain trade. Violation of this instruction will result in immediate rejection of Broker's Proposal. 16.In the event of a conflict between the Proposal and the RFP, the District shall resolve any inconsistency in favor of the RFP. Additionally, the District shall in good faith decide all inconsistencies and/or disputes pertaining to the RFP and the Proposal. Broker agrees to abide by the decisions of the District. If a Proposal is accepted as submitted, the negotiated final Agreement shall consist of the Agreement, this RFP, plus any addenda thereto, and Broker's Proposal. 17.In the event the Agreement initially awarded by the District is terminated for any reason within 120 days of the due date for Proposals, the District reserves the right to negotiate and accept any other submitted Proposal. 18. Respondents will be prohibited from assigning, transferring, conveying, subletting, or otherwise disposing of this proposal or any resultant agreement or its rights, title or interest therein or its power to execute such agreement to any other person, agent, broker, company or corporation without the previous written approval of the District. 19.The District reserves the right to select the proposal which, at the sole discretion of the District, is determined to meet the needs of the District. Each proposer waives any claim against the District should the District fail to select their proposal. 5
General District Information Students: The District has enrolled approximately 11,450 students. Facilities: The District has 3 high schools, 4 middle schools, one career technical center, one adult education center, one alternative school, 14 elementary schools, and one parents as teachers facility. In addition, the District has 2 central office buildings, a maintenance building, a warehouse, and 1 mobile classroom. For property insurance purposes, the District buildings were valued for 2014 at approximately $250,200,000 and personal property was valued in 2015 at $33,000,000. Staff: The District has approximately 1,978 staff. There are approximately 971 certified staff and 1007 classified staff. The District has an annual payroll of approximately $98,701,000. The District maintains its own transportation department, for special education buses only (regular transportation is provided by Apple Bus). That department has approximately 19 bus drivers and 5 aides. The District has a bus fleet of approximately 19 buses and 72 other vehicles. Finances: Statements available through http://www.sjsd.k12.mo.us/domain/61 are: (1) Audited Financial Statements for the year ended June 30, 2014; (2) Summary Financial Statements (unaudited) for the year ended June 30, 2015; and (3) Summary of Budgeted Revenues, Expenditures, and Fund Balances for the year ending June 30, 2016. Insurance: A summary of the property and casualty insurance currently in place for the District as well as a loss history report is available through http://www.sjsd.k12.mo.us/page/19198. Additional information on the District may be obtained by visiting the District's web site at www.sjsd.k12.mo.us, and visiting the Department of Elementary and Secondary Education at www.dese.state.us.mo and reviewing school data and statistics. 1. Agency/Personnel Information: Information Requested A. Identify the name of the company or agency submitting this response and state the address of the business location from which the District account will be managed. B. Provide a list of all personnel who will be working on the District account, including the primary contact person, and include the business location of each such person, a summary of each persons' duties and responsibilities on the account, their length of time with your company, their background and experience in the insurance industry and their experience in the school district and public entity market. C. State separately the total annual premium placed by your company in each of the past five years in the areas of commercial liability, commercial auto, commercial property and casualty, and workers' compensation insurance. 6
D. State separately the total annual premium placed by your company in each of the past five years for school districts in the areas of commercial liability, commercial auto, commercial property and casualty, and workers' compensation insurance. E. Provide information as to the financial stability of your company. 2. School District Market Experience: A. Provide a list of school districts in the state of Missouri for whom your company has placed or places insurance including liability, auto, property and casualty, or workers' compensation insurance and include in your response as to each district: (1) the name of the contact person with the district and their telephone number; (2) the insurance lines placed by your company for the district (i.e. liability, auto, property & casualty, workers' compensation, employee benefits, etc.); and (3) number of years of service to the district in placing the insurance. B. Provide the same information for districts outside the state of Missouri and, as additional information, include in your response the size of each such district by student and staff population. 3. Public Entity Market Experience: A. Provide a list of public entities in the state of Missouri for whom your company has placed or places insurance including liability, auto, property and casualty, or workers' compensation insurance and include in your response as to each public entity: (1) the name of the contact person and their telephone number; (2) the insurance lines placed by your company for the public entity (i.e. liability, auto, property & casualty, workers' compensation, employee benefits, etc.); and (3) number of years of service to the public entity in placing the insurance. B. Provide the same information for public entities outside the state of Missouri and, as additional information, include in your response the size of each such public entity by population and total number of staff. 4. Insurance Markets Proposed: A. List all insurance companies you would solicit to provide a bid on providing liability insurance coverage for the District and state (1) whether your company would solicit them directly or through another company or broker, (2) the amount of business you currently write with each insurance company, and (3) which company would be your first choice to provide the insurance coverage and why. B. List all insurance companies you would solicit to provide a bid on providing auto insurance coverage for the District and state (1) whether your company would solicit them directly or through another company or broker, (2) the amount of 7
business you currently write with each insurance company, and (3) which company would be your first choice to provide the insurance coverage and why. C. List all insurance companies you would solicit to provide a bid on providing property insurance coverage for the District and state (1) whether your company would solicit them directly or through another company or broker, (2) the amount of business you currently write with each insurance company, and (3) which company would be your first choice to provide the insurance coverage and why. D. List all insurance companies you would solicit to provide a bid on providing workers' compensation insurance coverage for the District and state (1) whether your company would solicit them directly or through another company or broker, (2) the amount of business you currently write with each insurance company, and (3) which company would be your first choice to provide the insurance coverage and why. E. List the number of accounts and volume of business you have placed with MOPERM for each of the past five years. 5. Services and Fee: A. Provide a summary and sample contract/fee agreement setting forth the services that your company includes in its flat fee for serving as the single risk manager/insurance broker for the District in each of the various lines of property and casualty insurance. B. Provide detail as to services provided to assist the District in assessing risk and handling claims that would be included in the fee for services, i.e. steps taken to assess District risk and frequency of same, claims review and frequency of same, etc. C. State the annual fee which you would charge to serve as the single risk manager/broker in each of the areas of liability, property and casualty and workers' compensation which fee must include all the services requested in this Request for Proposal. Indicate whether your fee would be reduced if you served as the broker for all areas. D. State whether you will agree to provide certificates of insurance within 48 hours of request from the District. E. State whether the insurance premiums which would be submitted by your company if selected as the Broker will be quoted "net of commission" and if not, state the approximate commission percentage the Broker will receive on each of liability, auto, property, and workers' compensation insurance and whether those commissions will be credited against the annual fee charged to the District with any excess commission being paid to the District. 8
F. State the approximate savings that the District might realize if you serve as the Broker on an annual fee basis, i.e. total commission on policies placed versus annual fee compensation with any commissions being credited against the annual fee and excess commissions being paid to the District. 9
ACKNOWLEDGMENT By signing this Acknowledgement, the Broker is hereby acknowledging and agreeing as follows: 1. The Broker has read the entire Request for Proposal, including any addenda thereto, acknowledges that the "General District Information" provided herein is an estimate of the stated information, and agrees to the "Proposal Guidelines" and "General Conditions." 2. The Broker acknowledges that the District has the right to reject any and all proposals and is not bound to accept the lowest bid. 3. The Broker agrees that the proposal, including the fee for services rendered, may not be withdrawn for ninety (90) days from the submission deadline and shall be binding on Broker during the ninety (90) day period. 4. Upon receipt of written notice of award, the successful Broker agrees to execute a formal written contract within thirty (30) days of the date of the notice. 5. The undersigned affirms that they are authorized to enter into contracts on behalf of the Broker making this submission. 6. By signing this Acknowledgement, Broker affirms that the information contained in their response to this Request for Proposal is true and accurate to the best of their knowledge and belief. 7. The undersigned certifies that Broker has no business or personal relationships with any other companies or persons that could be considered as a conflict of interest or potential conflict of interest to the District, and that there are no principals, officers, agents, employees, or representatives of Broker that have any business or personal relationships with any other companies or persons that could be considered as a conflict of interest or a potential conflict of interest to the District, pertaining to any and all work or services to be performed as a result of this request and any resulting contract with the District. Signature Print Name Title Entity Name. 10 Date _