Compensation RFP version (2) 11-16-2016.docx

MASSACHUSETTS BAY

TRANSPORTATION AUTHORITY

REQUEST FOR PROPOSALS

RFP# 138-17

RFP FOR NON-UNION COMPENSATION ASSESSMENT

OCTOBER 10, 2016

RESPONSES DUE: DECEMBER 14, 2016

1. Purpose The purpose of this Request for Proposal is to retain talent and avoid internal compensation discrepancies within non-union positions. As an organization, the MBTA employs 6500 employees spread across 27 unions with 236 employees in a non-union affiliate role. Out of those 236 non-union positions, 146 are Director level and above and may not be compensated within salary bands that reflect the level of work that they perform. The MBTA needs to position itself as a world class organization and as such need to not only properly compensate the individuals who are responsible for running the programs and operations but to attract key and critical talent.

We believe that identifying the compensation levels of non-union professionals is critical in (1) identifying appropriate workload based on competencies, (2) retaining employees in professional positions, and (3) ensuring professionals are compensated within appropriate levels for their experience, initiative, and effort.

2. Goals and Objectives:

The Goal of this project is to increase our competitive position in recruiting and retaining top quality managers. The objective for this study is to better understand current salaries in relationship to the marketplace and the actions necessary in order to achieve our goal of defining appropriate compensation.

3. Scope of Salary Study and Collection of Data:

This initiative seeks to conduct a confidential Salary Study for various non-union job titles as outlined below. The collection of existing salary data sources should match appropriately. Matched sources should consider job types and requirements, location, organization size and total budget of organization.

In general, salary data comparisons should report low, high, mean, and median salary as well as the 25th, 50th and 75th percentiles if applicable. The study would also include the mean and median years of work experience by job title, any Long Term and Short Term Incentives data, any scheduled adjustments to salary (such as COLA’s), Deferred Compensation programs, and other relevant information needed to understand the complete compensation package. Also, if possible, please report in additional data around Gender and Ethnicity based upon the incumbents reported in for the study (such as 80% of incumbents in Director Engineering job are Male and 20% or Female). Finally, depending on # of respondents, salary data results would also be cut in several groupings as per client request. The MBTA will make available the results of a previous Total Compensation Study.

4. Role of the Consultant The consultant will conduct interviews with respondents when necessary to clarify job titles, job descriptions, job-leveling, and weekly and annual work-hours by job title. When appropriate, data collected should be adjusted for the Boston labor market, hours worked, and the dates of the salary data. The consultant will disclose and document all methodologies and raw data used for the report. The Compensation Manager will act as primary Point of Contact and will be working with the consultant to answer questions, assist with any road blocks, and overall ensure the project meets its goals and milestones.

Respondents should be able to recommend a compensation philosophy, changes to the current compensation structure and/or a new compensation structure, guidance on implementation including immediate modifications and recommendations on talent retention strategy.

Specifically, respondents should:

Collect data for 200+ non-union management roles (sample organization chart attached) including:

1. the following titles:

i. General Manager (and Assistant General Manager)

ii. Chiefs (and Assistant Chiefs)

iii. Directors (and Deputy Directors)

iv. Managers and below depending on criticality of function

2. the following departments:

v. Capital Delivery (formerly Design & Construction)

vi. Engineering & Maintenance

vii. Transportation Officer

viii. Signals

ix. Power

x. Mechanical

xi. MOW (Maintenance of Way)

xii. Vehicle Engineering

xiii. Technology

xiv. Rail and Bus Operations

xv. Legislative

xvi. Diversity and Compliance

xvii. Office of Chief of Operations

xviii. Rail and Transit Administration

xix. General Counsel

xx. Finance

xxi. Human Resources

xxii. Procurement

xxiii. Service Performance

xxiv. Security and Emergency Management

xxv. Information Technology

xxvi. Customer Experience and Technology

xxvii. Office of Performance Management and Innovation (OPMI)

3. Provide an impact analysis on the union management and highly skilled positions and recommendations to ameliorate any negative impacts.

4. Provide a cumulative impact model of their proposed changes.

5. Optimal Results and Out-put:

· Improve our knowledge of our salaries in relationship to the marketplace for each job title.

· Describe recent industry pay increase trends by job title as they relate to the economy and union negotiations where applicable.

· Recommend methods and measureable actions to achieve job, pay, and market equity.

· Construct a pay structure and philosophy to align with turnover rates for selected job titles.

· Report information about overall Compensation Design and Philosophy other agencies use to compensate their Management team

· Provide detailed explanations of any adjustments to data and support findings and analyses.

· Deliver end-product in written and electronic form including all data, spreadsheets, graphs, and PowerPoint slides.

· Prepare to meet a minimum of four (4) times on-site for post survey results, close-out meetings; 1 (one) meeting to include PowerPoint presentation to Board’s Compensation Committee.

· Timeline of 90 days from date of signed contract to final presentation; with preliminary findings in 45 days.

6. Guidelines to Submit a Proposal for MBTA Request for Proposal (RFP) Interested Human Resource and Transportation and Transit Consulting firms may use their own preferred style and format in preparing a Proposal. What follows are suggestions, requirements, timeline, and instructions for submitting a Proposal and the selection process.

Proposal Suggestions:

· Provide information about your firm and why the MBTA should select your firm.

· Provide summary resume(s) of the person(s) managing and conducting the Salary Study.

· Provide three (3) client references of organizations of similar size that are applicable to job titles within the MBTA RFP.

· Provide sample contract with terms and conditions.

Proposal Requirements:

· A description of the approach and methodology and procedures which will be used.

· A detailed description of the plan to achieve the necessary requirements and a plan for accomplishing this work.

· Response to the conditions and requirements outlined in the RFP. Any reservations or exceptions to the RFP should be fully explained, as MBTA intends to incorporate the RFP and Proposal into the final contract.

· Proposed timeline to include start and completion dates for the study and identify specific milestones.

· A detailed price proposal with break-out costs by project components.

· Any additional information which the consultant deems appropriate.

7. Project Timeline:

Notice of pending RFP, November 18, 2016 Bid opens: November 21, 2016 Group Informational Conference Call (optional): November 28, 2016 10:00am Conference call , phone - 1-866-919-0702, Pin 550 3944 Consultant Submits Proposal questions: December 2, 2016 no later than 12 Noon MBTA Sourcing provides answers to Consultants - December 6 Interviews Held: December 12-16, 2016 Final Selection and Contract Signed by: January 14, 2017 Other: MBTA reserves the right to alter this Request for Proposal. All information submitted will become property of the MBTA.

Instructions for Submitting Proposal:

To All Interested Parties: The MBTA is requesting proposals to conduct a compensation analysis (“compensation analysis”), for a comparable transit agencies in North America beginning October, 2016 through January 2017. Proposal documents may be obtained electronically via Commbuys. All documents, amendments, questions, and responses to questions will be published on the Commbuys web site. Proposals Re: RFP# 138-17 for Compensation analysis must be .

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