2023 Actuarial Services Request for Quotes.pdf

CITY OF SUN PRAIRIE

REQUEST FOR QUOTES

RFQ#: 23-FIN23

Title: Actuarial Services for Other Post-Employment Benefits (OPEB) Liability

The City is requesting actuarial services related to other post-employment benefits (OPEB) as per GASB 75 guidance for the City’s 12/31/2023 financial statements.

Department: Finance Publish Date: April 18, 2023

Questions Due Date: May 12, 2023 by 2:00 pm (local time)

Questions Publish Date: May 19, 2023 by 12:00 pm (local time)

Due Date: June 2, 2023 10:00 am (local time)

City of Sun Prairie

Request for Quotation

INVITATION:

The City of Sun Prairie Finance Department is requesting written quotations for actuarial services from qualified vendors to calculate the City of Sun Prairie’s OPEB liability in accordance with governmental accounting standards and actuarial standards of practice.

The City of Sun Prairie offers a post-employment healthcare and dental benefit. For information on the programs, see attachment A.

The City has a completed actuarial valuation for the fiscal year ended December 31, 2018, which was used to determine that the City did not need to implement GASB 75 at that time.

The City will use the actuarial valuation produced from this request for quotation to prepare the December 31, 2023 and the December 31, 2024 annual comprehensive financial reports, if it is determined that the City needs to implement GASB 75.

QUOTE SUBMITTAL:

Interested firms shall submit one (1) copy of the sealed quote to:

City of Sun Prairie Finance Office

300 E Main Street Sun Prairie, WI 53590 or: purchase@cityofsunprairie.com

INQUIRIES:

Questions regarding this request for quotes and/or project details should be directed to:

Kristin Vander Kooi City of Sun Prairie Finance Department 300 E Main Street Sun Prairie, WI 53590

Phone: (608) 825-1192 Email: kvanderkooi@cityofsunprairie.com

Questions must be received no later than the due date and time shown on the cover page.

SCOPE OF SERVICES:

The City of Sun Prairie (City) is seeking quotes from vendors to conduct an actuarial valuation study of the City’s other post-employment benefits (OPEB) liability for its existing health benefit program. This valuation shall be completed in a manner that complies with the valuation requirements of GASB 75. The FY 2023 valuation will be a full valuation, followed by a “roll forward” valuation that will be provided for FY 2024.

The City is requesting the vendor to produce a Public Statement of Actuarial Opinion (PSAO) in accordance with the Qualification Standards of the American Academy of Actuaries, one for each valuation year, along with any other final annual reports as necessary in order to provide all information per GASB 75.

QUOTES:

1. One (1) copy of the quote shall be submitted. Quotes should be organized with the following section headings and must include the following information:

a. Contact Information.

The Vendor shall provide name, address, and telephone number of the Project Manager who will oversee the setup and execution of this project. The Project Manager should be an employee of the Vendor who is knowledgeable about the project and the Vendor’s capabilities. The Project Manager will be the City’s primary point of contact during all phases of this project, including quote review, contract approval, data submission, calculation, and production of final deliverables.

b. Key Personnel.

The Vendor will list the actuary(ies) and other key personnel who will be involved in the project, including relevant experience, qualifications, and certifications.

c. Company Description.

The Vendor shall provide summary information on his/her/their company, its general qualifications, and any special experience or expertise, which will make the Vendor particularly well suited for this OPEB valuation project.

d. GASB 75 Discussion.

Vendor will provide discussion in regards to OPEB valuation generally.

The discussion will cover the following:

1. Types and amounts of data collected from the Customer.

2. Types and amounts of data collected from other sources, and what those sources would be. Vendor will take particular note of the fact that the OPEB valuation will be for an employer in Wisconsin.

3. The Vendor’s calculation methodology, how that calculation methodology is in conformance with GASB 75, and why that methodology would be used by the Vendor.

4. Final reporting changes, including the types of information that must be analyzed and reported.

e. Data Collection Forms/Questionnaires

The Vendor will include copies of its census data collection form(s) and/or questionnaire(s) for each of the two (2) years of this project. One set of forms/questionnaires will list the specific data items that the Vendor would require from the City for the performance of a GASB 75 OPEB valuation in its first year (for FY 2023), and a second set of forms/questionnaires will list the specific data items that the Vendor would require from the City for the performance of the “roll forward” analysis in the second year (for FY 2024).

The Vendor will provide instructions on how the data would be submitted. The Vendor will discuss its level of flexibility in regards to data collection; in particular, it will discuss the range of acceptable alternative methods for the submission of City data to the Vendor.

f. Discussion of Two-Year Project

The Vendor will provide up to three (3) pages of discussion on the two (2) year nature of this project, including the first year and the “roll forward” year. Vendor will explain how the project would run through both years, with special attention paid to how each year would differ in project needs, data needs, timeline, and scope.

g. Pricing and Payment Schedule.

Vendor will provide a not-to-exceed price for the Year 1 (FY 2023) valuation along with a not-to-exceed price for the Year 2 (FY 2024) valuation. If desired, the Vendor can provide a not-to-exceed price for an optional two (2) year period. This optional extension pricing should be a not-to-exceed price for the Year 3 (FY2025) valuation along with a not-to-exceed price for the Year 4 (FY2026) valuation.

The Vendor will provide its proposed payment schedule. The payment schedule should reflect the actual and demonstrable progress being made by the Vendor.

h. Project Timeline

The Vendor will submit a timeline for how it intends to execute the project. The Vendor’s timeline must specify key milestones of the project, including, for each of the questionnaires to the Vendor.

The City is tentatively anticipating that a contract for services will be signed and executed by July 14, 2023. The Vendor must complete the FY 2023 valuation, including final submission of all data and reports, by February 28, 2024.

A City contract template has been provided as Attachment B. The Vendor will submit any comments/concerns that it would have with the acceptance of this standard contract language.

j. Standard Vendor Contract

The Vendor will attach a copy of its standard contract language regarding HIPAA compliance. This contract language must be sufficient to establish the Vendor as a HIPAA compliant business partner for the City.

The Vendor will attach any other standard contract language that it might require for inclusion in the contract.

k. References.

The Vendor shall provide two (2) references. The references must be from governments that have received OPEB valuations from the Vendor within the past year.

2. The following items apply to all submitted Quotes:

a. Submission of Quotes.

Written or electronic quotes must be submitted to City of Sun Prairie Finance Office, Attn: Kristin Vander Kooi, 300 East Main Street, Sun Prairie, Wisconsin, 53590, by 10:00 a.m., Local time, June 2, 2023. One (1) copy of a printed quote must be submitted to the specified place by the specified due date. Quotes should be placed in a sealed package or envelope that is externally labeled “OPEB Quote.” If submitting electronically, the emailed quote must be received by the deadline.

b. Addendum or Supplement to Request for Quotes.

In the event that it becomes necessary to revise any of this Request for Quotes (RFQ), an Addendum to this RFQ will be provided on VendorNet and DemandStar. The City reserves the right to change submission date(s) for any reason, including an Addendum or Supplement to the RFQ.

c. Questions from Vendors

Questions regarding this RFQ should be submitted to Kristin Vander Kooi, kvanderkooi@cityofsunprairie.com, prior to 2:00 PM local time on May 12, 2023.

Answers to questions will be posted to VendorNet and DemandStar by May 19, 2023.

d. Late Quotes.

Late quotes will not be accepted. It is the responsibility of the Vendor to ensure that the quote has been received at the specified place and by the specified time.

e. Rejection of Quotes.

The City of Sun Prairie reserves the right to reject any or all submissions, and to waive informalities and minor irregularities in submissions received, to request amendments or modifications to submitted quotes, and to accept any portion of a quote or all items if deemed in the best interest of the City of Sun Prairie.

f. Response Material Ownership and Protection.

All material submitted regarding this RFQ becomes the property of the City of Sun Prairie and will only be returned to the Vendor at the City's option. Responses are public record and may be reviewed by any person after the final selection has been made. The City of Sun Prairie reserves the right to use any or all ideas presented in reply to this request. Disqualification of a Vendor does not eliminate this right. If proprietary or protected information is provided in the quote, it must be clearly identified in the quote with references to appropriate patents, or other applicable state or federal laws.

g. Incurring Costs.

The City of Sun Prairie is not liable for any costs incurred by the Vendor prior to issuance of an agreement, contract, or purchase order. This includes any costs associated with a requested demonstration or presentation.

h. Acceptance of Quote Content.

The contents of the quote of the successful Vendor may become contractual obligations if the City of Sun Prairie wishes to execute a contract based on the submitted quote.

Failure of the successful Vendor to accept these obligations in a purchase agreement, purchase order, contract, or similar instrument may result in cancellation of the award, and such Vendor may be removed from future solicitations.

TIMETABLE:

Following is the tentative timetable for this RFQ:

RFQ Issued: 4/18/2023 Questions received from Vendors: 5/12/23, 2:00 PM Responses provided to Submitted Questions 5/19/23, 12:00 PM Quotes Due 6/2/23, 10:00 AM Tentative Selection of Vendor, pending Contract 7/7/23 Vendor Returns Signed Contract 7/14/23 Final first year OPEB Valuation Report completed 2/28/24 The submittal of a quote indicates that the Vendor has no problem with keeping this schedule.

CONTRACT:

The Vendor will be required to sign a contract with the City relating to the work to be performed. Such contract shall include, but is not limited to, the following articles: method of compensation, time of performance, specifications of the equipment, duties of the vendor, termination of the contract, ownership of material, changes, submission of material, and obligations of the City.

SELECTION:

The selection of the Vendor will be based upon total cost of the project, ability to meet required and preferred specifications, project team qualifications, demonstrated knowledge and experience, customer service, and willingness to meet time requirements.

In making a quote, the Vendor hereby certifies that they have reviewed this RFQ and is familiar with all conditions contained therein.