Capital Modeling Services RFP 2026.pdf

Request for Proposals (RFP)

Enterprise Risk Management Study for the Purpose of Capital Modeling

CIS

30125 SW Kinsman Rd.

Wilsonville, OR 97070

RFP Schedule

Issuance of RFP: June 15, 2026

Submission of Questions about the RFP: June 29, 2026, 5:00 p.m. (PT)

Proposal Due: July 13, 2026, 5:00 p.m. (PT)

Anticipated Contract Award: August 21, 2026

Effective Date: August 24, 2026

REQUEST FOR PROPOSALS

FOR

CAPITAL MODELING SERVICES

Table of Contents

I. Introduction

II. Scope of Work

III. Schedule and Submittal

IV. General Instructions

V. Proposal Format and Content

Appendix A – CIS Contract Considerations

I. INTRODUCTION

A. PURPOSE

The purpose of this Request for Proposals (RFP) is to solicit offers from qualified vendors to perform capital modeling services and provide target ranges for our property, liability, workers’ compensation programs and two employee benefits trusts. Analysis of additional structures and individual components of the recommended target ranges is also requested, along with the ability for staff to update the models in future years.

B. BACKGROUND

CIS is a public entity risk pool that provides insurance and risk management services to Oregon cities and counties and other public entities created by these cities and counties.

Based in Wilsonville, CIS was formed in 1981 by its parent organizations, the League of Oregon Cities (LOC) and the Association of Oregon Counties (AOC). The majority of cities and counties in Oregon participate in one or more CIS programs (property, liability, workers’ compensation, and employee benefits). These participating entities are considered CIS Member Employers.

CIS administers a group of three trusts that provide employee benefits, property, liability and workers’ compensation coverages and risk management services to cities, counties and other eligible local governments in Oregon. While CIS provides a common governance and administrative structure, the three trusts are three separate accounting entities and the funds in each trust are restricted as to their use.

CIS itself is a public entity, formed by LOC and AOC under ORS Chapter 190. It is governed by a Board of Trustees composed of officials from member cities and counties.

ll. SCOPE OF WORK

The successful Proposer shall provide an Enterprise Risk Management (ERM) focused evaluation that includes, but is not limited to, the following:

1. Key financial risks that affect the trusts will be identified and categorized. The broad categories of the key financial risks include, but are not limited to:

a. Reserving: actual unpaid claims may be higher than the booked liabilities.

b. Underwriting: next year’s losses may be higher than projected

c. Asset/Credit: investment risk and potential default risk from members and/or reinsurers

d. Operational: the administrative budget may be exceeded due to an unforeseen event

2. Individual risks will be quantified at various risk thresholds and aggregated to the relevant trust and fund levels, including Liability, Property, and Workers’ Compensation for the P/C Trust.

3. The overall capital needs at various thresholds will be used to help construct a risk capital target range.

4. For the benefits trusts (EBS and AOCIT), individual risks will be quantified separately for EBS and for AOCIT and then aggregated for the overall benefit trust level. The report will also analyze the capital target impact of keeping the EBS and AOCIT trusts separate versus combined.

5. Key considerations of a target range will be discussed.

6. Current risk capital target range and common risk capital target ranges adopted by other pools will be illustrated.

7. A risk heat map will be constructed to visually illustrate the contribution that each risk component makes to the overall capital needs.

8. The sensitivity of the capital model will be measured by quantifying the impact of capital needs under alternative risk profiles, including various self-insured retention levels and investment portfolio compositions.

9. The results of the study will be compared to the prior study and differences between the studies will be discussed.

10. A report will be provided to document the results of the analysis.

Deliverables.

1. A written report documenting the results of the analysis.

2. An Excel factor model to update future risk capital target for each trust fund

(Workers’ Compensation, Property, Liability, EBS Benefits, AOCIT Benefits, and Benefit funds combined).

3. Meetings to discuss and review the results with management and present the results to the Board of Trustees with easily interpreted visuals (may be in person or via Teams).

4. Presentation at the CIS Board Retreat, scheduled for December 16-18, 2026, at the CIS Collaboration Center in Wilsonville.

III. SCHEDULE AND SUBMITTAL

A. RFP AND EVALUATION SCHEDULE

Issuance of RFP: June 15, 2026 Deadline to Submit Written Questions about the RFP:

June 29, 2026, 5:00 p.m. (PT)

Proposal Due Date: July 13, 2026, 5:00 p.m. (PT) Evaluation of Proposals, Finalists Selected: Week of July 20, 2026 Finalist Interviews: July 27 – July 31, 2026 Anticipated Contract Award: August 21, 2026 Commencement of Contract: August 24, 2026

B. CIS CONTACT PERSON

Eric Yahnke Chief Financial Officer

Email: eyahnke@cisoregon.org

C. WRITTEN QUESTIONS

If proposers have questions about the RFP they are encouraged to submit them as soon as possible, but no later than the 5:00 p.m. (PT) on June 29, 2026. Questions must be in writing and may be e-mailed to the contact person above. CIS will not be obligated to answer any questions received after the deadline, or any questions submitted in a manner other than as instructed above.

Responses to written questions received by the specified deadline will be shared with all participating proposers.

D. PROPOSAL SUBMITTAL

1. General

Proposals must be received by 5:00 p.m. (PT) on July 13, 2026. Any proposal received after this date and time will not be considered.

Delivery of proposals by the specified deadline is the sole responsibility of the Proposer. CIS will not be responsible for, nor accept as a valid excuse, any delay in the method of delivery used by the Proposer except where it can be established that CIS was the sole cause of the late receipt.

2. Method of Submittal

The proposal must be submitted in electronic form in an email to the Contact Person. The subject line for the email should include “RFP – Capital Modeling Services”.

3. Evaluation Criteria

All proposals received in accordance with these RFP instructions will be evaluated to determine if they are complete and meet the requirements specified in this RFP. An award will be made to the Proposer whose offer is judged to be the most advantageous to CIS, though CIS expressly reserves the right to reject all proposals and make no award under this

RFP.

The following criteria will be considered in evaluating the proposals:

Quality of the proposal, including an expressed understanding of CIS’ requirements;

Financials;

Qualifications;

Experience, particularly with similar projects and similar organizations;

Finalist Presentations;

References;

Contract provisions;

Miscellaneous, including exceptions/deviations

IV. GENERAL INSTRUCTIONS

A. ORAL COMMUNICATIONS

Any oral communication by CIS’ Contact Person or designee concerning this RFP is not binding and shall in no way modify the RFP or the obligations of CIS, a proposer, or selected firm(s).

B. CHANGES TO RFP

If it is necessary to make material changes to the RFP, CIS will e-mail written RFP addenda to all recipients of record of the original RFP. Recipients of record are those parties who confirmed interest in the RFP as described in Section III(C) above.

Responses to written questions received by the specified deadline will be incorporated in an RFP addendum.

It is the responsibility of the proposer to inquire of CIS as to any addenda issued. All addenda issued shall become part of the RFP.

C. EXCEPTIONS / DEVIATIONS

Any exceptions to or deviations from the requirements set forth in this RFP must be declared in a separate element of the submitted proposal under the heading “Exceptions and Deviations”.

D. AUTHORIZATION TO DO BUSINESS

Proposers must be authorized to do business in the State of Oregon and in the local jurisdiction in which they are located or where the work will be performed.

E. PRE-CONTRACTUAL EXPENSES

CIS shall not be liable for pre-contractual expenses incurred by a proposer in the preparation of its proposal and proposers shall not include any such expenses in their offers. Pre-contractual expenses are defined as expenses incurred by the proposer to: (1) prepare and submit its proposal to CIS; (2) negotiate with CIS on any matters related to this RFP; and (3) any other expenses incurred by a proposer prior to the effective date, if any.

Issuance of this RFP and receipt of proposals does not commit CIS to award a contract. CIS reserves the right to postpone the award for its own convenience, to accept or reject any or all proposals received in response to this RFP, to negotiate with more than one proposer simultaneously, or to cancel all or part of this RFP.

F. WITHDRAWAL; PROPOSAL IRREVOCABLE FOR 90 DAYS

A proposer may withdraw its proposal at any time prior to the submittal deadline by sending CIS a request in writing. As of the deadline for submittal, any proposal received by CIS and not withdrawn becomes a preliminary offer, intended to reflect the most accurate financial and contractual terms, based on the available data. Proposals will be considered irrevocable upon offer, and available for acceptance by CIS immediately and for 90 days thereafter. Proposers are responsible for the accuracy of their proposals and no allowance will be made for errors or price increases to the proposals.

G. DISPOSITION OF PROPOSALS

All materials submitted in response to this RFP become the property of CIS, except for information identified by a proposer as being proprietary. A blanket statement that all contents of the proposal are proprietary will not be honored by CIS. Please note that as a public entity, CIS is subject to Oregon public records law, which may require the disclosure of information regarding proposals or a subsequent contract.

H. IMMATERIAL DEFECTS IN PROPOSAL

CIS may waive any immaterial deviation or defect in a proposal. CIS’ waiver shall in no way modify the RFP documents or excuse a proposer from full compliance with the RFP if awarded the contract.

I. WRITTEN AGREEMENT

The proposer selected for contract award through this RFP shall be required to enter into a written agreement with CIS governing the provision of professional services to CIS, its members, and other eligible entities. The agreement will include pertinent terms and conditions set forth in this RFP and will reflect the proposer’s offer or the outcome of contract negotiations. The agreement will also include, to the extent applicable, the provisions described in Appendix A and any terms or conditions added by addendum.

It is anticipated that the proposer may enter into separate agreements with subcontractors to fulfill the terms of this contract. CIS will not be a party to those separate agreements, nor in any fashion a guarantor or indemnitor of them.

J. TERM OF CONTRACT

If a contract is awarded through this RFP, it will be effective upon full execution of the agreement. No agreement with CIS shall be in effect until a contract has been approved by the CIS Board of Trustees or designee and has been signed by both parties.

K. NEWS RELEASES

News releases pertaining to any award resulting from this RFP may not be issued without the prior written approval of CIS.

APPENDIX A – CIS CONTRACT CONSIDERATIONS

CIS contracts will be subject to the following standards. These are not exclusive and other contract clauses and provisions will obviously be applicable as well. However, these are areas respondents to CIS RFPs should be aware of in considering and preparing responses.

A. MANDATORY PROVISIONS:

1. Indemnity Provision. There shall be no provision requiring CIS to indemnify contractor for contractor’s acts or omissions. Indemnity provisions should be mutual and reciprocal. Our standard indemnity clause is as follows:

Contractor agrees to hold harmless, indemnify, and defend CIS, and its officers and employee from and against all claims, suits, actions, losses, damages, liabilities, costs, and expenses of any nature resulting from, arising out of, or related to the acts or omissions of Contractor or its officers, employees, subcontractors, or agents in performance of services pursuant to this Contract. CIS agrees to hold harmless, indemnify, and defend Contractor and its officers and employees from and against all claims, suits, actions, losses, damages, liabilities, costs, and expenses of any nature resulting from, arising out of, or related to the acts or omissions of CIS or its officers, employees, subcontractors, or agents pursuant to this Contract.

2. Independent Contractor Status. The following shall be included in CIS contracts:

Contractor shall perform the required services as an independent contractor and not as an “officer, employee, or agent” of CIS as those terms are used in ORS 30.260 through 30.300. Although CIS reserves the right to evaluate the quality of the service provided by Contractor, CIS will not control the means or manner of Contractor’s performance.

3. Governing Law and Venue. CIS contracts shall subject to the laws of Oregon and venue for any disputes arising out of the contractual relationship. The contract shall include the following clause or the substantial equivalent:

This contract shall be governed by the laws of the State of Oregon without regard to principles of conflicts of law. Any claim, action, suit or proceeding between CIS and Contractor arising from or related to this contract shall be brought and conducted in the Circuit Court of Marion County for the State of Oregon; provided, however, if a claim must be brought in a federal forum, then it shall be brought in the U.S. District Court for the State of Oregon.

4. Insurance. Except under special circumstances, and with the approval and consent of CIS Executive Director, the following minimum insurance provisions shall be specified in the contract:

During the term of this Contract, Contractor shall maintain in force insurance coverage compliant with the requirements listed below:

a. Workers’ Compensation insurance in compliance with ORS Chapter 656 if Contractor employs “subject workers”.

b. Comprehensive General Liability insurance applicable to the services provided to CIS, with a combined single limit, or the equivalent, of not less than $2,000,000 each occurrence for Bodily Injury, Personal Injury, and Property Damage, including contractual liability coverage applicable to the indemnity provided under this contract.

c. Automobile Liability insurance applicable to the operation of Contractor’s trucks or automobiles with a combined single limit of not less than $1,000,000 each accident for Bodily Injury and Property Damage, including coverage for owned, non-owned, and hired vehicles, as applicable.

d. Notice of Cancellation or Change. There shall be no cancellation, material change, or reduction of limits without 30 days’ prior written notice from the Contractor or its insurer(s) to CIS.

e. Certificates of Insurance. As evidence of the insurance coverages required by this contract, the Contractor shall provide acceptable insurance certificates to CIS as soon as practicable upon written request by CIS. If requested, complete copies of insurance policies, shall be provided to CIS.

B. OTHER CONTRACT CONSIDERATIONS:

1. Limitations on Liability and Warranties. Responses to RFP’s should include a description of any limitations on liability to either CIS or purported third party liability limitations contractor would propose to include in a contract with CIS. These provisions are disfavored and will be a consideration in our review and comparison of RFP responses.

2. Termination. While termination provisions are negotiable, any provision that would not permit CIS to terminate the contract with a reasonable notice period, without further obligation, would be strongly disfavored and allowed only with the consent of the Executive Director. Our preferred termination provision is as follows:

a. This Contract may be terminated at any time by mutual written consent of the Parties.

b. CIS may, at its sole discretion, terminate this Contract, in whole or in part, upon 30 days’ written notice to Contractor. In the event of such a termination, CIS agrees to pay Contractor the fees and expenses reasonably incurred prior to such termination.

c. CIS may terminate this Contract immediately upon notice to Contractor, or at such later date as CIS may establish in such notice, if Contractor commits any material breach or default of any covenant, warranty, obligation or agreement under this contract, or fails to perform in a timely manner the services under this contract, and such breach, default, or failure is not cured within 10 business days after delivery of CIS’ notice, or such longer period as CIS may specify in such notice.

d. Contractor may terminate this Contract upon 10 days’ written notice to CIS if CIS fails to pay Contractor pursuant to the terms of this Contract and CIS fails to cure within 30 days after receipt of Contractor’s written notice, or such longer period as Contractor may specify in such notice.

3. Dispute Resolution. Mandatory arbitration provisions are disfavored. Our position is that alternative dispute resolution is encouraged, but arbitration should be undertaken only when both parties agree to it at the time of the dispute. If arbitration is undertaken, we would not consent to the rules and procedures of the American Arbitration Association. Other standard rules are available, or the parties can simply agree to rules and procedures as they deem appropriate. Provisions requiring mediation as a precedent to other legal action are acceptable.