ESBD_File_343247_RFP Insurance Broker Services PDF.pdf

REQUEST FOR PROPOSALS

INSURANCE BROKER/CONSULTANT SERVICES

R23-19-01

PROPOSAL DUE DATE & TIME:

By December 13, 2023

5:00 PM CST

ATTN: Carminia Urrutia, Purchasing Coordinator

RFP@cacost.org

COMMUNITY ACTION CORPORATION OF

SOUTH TEXAS

204 E. FIRST ST.

ALICE, TX 78332

INTRODUCTION

The Community Action Corporation of South Texas (CACOST) is a private nonprofit organization established in 1971 and funded through State and Federal grants and fees for service. CACOST has a workforce of approximately 700 employees and serves a seventeen

(17) county area in South and Coastal Texas. CACOST’s mission is to continuously improve the lives of South Texans by providing high quality healthcare, education, housing, and economic opportunities to reduce poverty through services and partnerships.

CACOST has a tripartite board structure that is designed to promote the participation of the entire community in the reduction or elimination of poverty. Board members serve voluntarily and are chosen to represent the private sector, the public sector and the low-income sector of the population. Additional information on CACOST can be found at cacost.org.

PROPOSAL SUMMARY

Community Action Corporation of South Texas (CACOST) is soliciting Requests for Proposals (RFP) from qualified firms to provide professional insurance brokerage and consulting services to assist in the Agency’s various insurance programs beginning February 1, 2024. The following services should be proposed: Auto, D&O, Fidelity Bond, Flood, GAP, General, Crime, Cyber, Pollution, Umbrella, Student Accident and Volunteer Accident insurance. Only insurance agents, who are currently licensed to sell insurance policies in the state of Texas, or brokerage firms including such agents, may respond to this RFP.

All proposals must be completed in accordance with all applicable standards, specifications, terms, and conditions as stated in this RFP.

CLOSING DATE

All proposals must be submitted no later than December 13, 2023, by 5:00 PM CST.

INQUIRIES & CONTACT INFORMATION

All questions concerning this RFP should be directed to Carminia Urrutia, Purchasing Coordinator, as communication with other individuals within CACOST during the RFP period is strictly prohibited. CACOST reserves the right to disqualify any Proposer who is found in violation of this provision. No communication requests other than written via email will be accepted and no response other than written will be binding upon CACOST.

Submittals will remain on file in accordance with the Texas Open Records Act.

Expected Timeline:

Event Date(s) RFP Notification Posting November 20, 2023 Final Date for Inquiry Submission December 1, 2023 Q&A Document Publication December 6, 2023 Final Date for Proposal Submission December 13, 2023 Announcement of Intent to Award December 27, 2023 Anticipated Contract Start Date January 1, 2024

GENERAL TERMS & CONDITIONS

SUBMISSION INSTRUCTIONS

To be considered responsive, proposals must fully address all sections of the RFP. All proposals should be addressed as follows:

CACOST Insurance Broker/Consultant Services RFP R23-19-01

ATTN: Carminia Urrutia, Purchasing Coordinator 204 E. First St.

Alice, Texas 78332 OR via email to RFP@cacost.org

It is the sole responsibility of the Proposer to ensure that the proposal is received by the date and time specified in the Closing Date section. Late proposals will not be considered. Confirmation of receipt is the sole responsibility of the Proposer. Proposals may be withdrawn in writing prior to the deadline. Unless otherwise stated, all materials submitted by the Proposer in response to this RFP shall become the property of CACOST.

NOTIFICATION OF AWARD

CACOST anticipates, but does not guarantee, a contract or multiple contracts will be awarded on January 1, 2024. An award will be made to the Proposer(s) based on the listed evaluation criteria and the responses most compatible with CACOST’s needs. CACOST will be the sole judge in making this determination. CACOST is not bound to accept the lowest bid, or any proposal submitted. A contract or multiple contracts for the approved proposal will be executed based upon the factors described in this RFP. CACOST may investigate the qualifications of any individual or firm under consideration, require confirmation of information furnished and require additional evidence of qualifications to perform the services described in this RFP. CACOST also reserves certain rights, including, but not limited to, the following:

1. Reject any or all proposals

2. Issue subsequent Requests for Proposals

3. Cancel the entire RFP

4. Remedy technical errors in the RFP process

5. Appoint evaluation committees to review qualifications and proposals

6. Seek the assistance of outside technical experts in evaluation

7. Approve or disapprove the use of certain subcontractors

8. Establish a short list of proposers eligible for discussions after review of RFP

9. Solicit best and final offers from all, some, or one of the proposers

10. Waive informalities and irregularities in RFP

11. Award without discussion

12. Cancel an awarded contract if performance is unsatisfactory, with the provision of a written notice; no penalty and/or fee may be imposed

13. Conduct pre-contract negotiations with any and/or all potential qualified contractors

This RFP shall not, in any manner, be construed to be an obligation on CACOST to enter a contract or result in any claim for reimbursement of cost for any efforts expended in responding to the RFP or in anticipation of any contract.

CONFIDENTIALITY

The Proposer agrees to keep the information related to all contracts in strict confidence.

Other than the reports submitted to CACOST, the Proposer agrees not to publish, reproduce, or otherwise divulge such information, in whole or in part, in any manner or form, or authorize or permit others to do so taking such reasonable measures as are necessary to restrict access to the information while in the Proposer’s possession. The Proposer agrees to notify immediately, in writing, CACOST’s authorized representative in the event the Proposer determines or has reason to suspect a breach of this requirement.

LIMITATIONS & RESERVATIONS

CACOST reserves the right to negotiate the terms and conditions of the contract with any of the evaluated Proposers. Should the successful Proposer and CACOST fail to come to an agreement, CACOST may at its sole discretion award work to any of the remaining Proposers. The Proposer to whom the contract is awarded shall be required to enter a written contract with CACOST. This RFP and the proposal, or any part thereof, shall be incorporated into and made a part of the final contract. CACOST specifically reserves the right to vary the provisions set forth herein any time before the execution of a contract where such variance is deemed to be in the best interest of the needs of CACOST. If selected for negotiations, Proposer may be required to prepare and submit additional information before final Proposer(s) selection, to reach terms for the provision of services, which are agreeable to both parties.

FINANCIAL RESPONSIBILITY

CACOST assumes no financial responsibility for any costs in developing and submitting a proposal or any amendments or addenda, participating in bid conferences, participating in any negotiation sessions or discussions, or any other costs incurred by Proposers prior to award of a contract or agreement pursuant to this RFP. All costs incurred in the preparation of any response to this RFP and/or associated costs will be the sole responsibility of the Proposer and will not be reimbursed by CACOST.

SMALL, WOMEN, AND/OR MINORITY-OWNED BUSINESSES

Efforts will be made by CACOST to utilize small businesses and women and minority-owned businesses with the consideration that the primary responsibility is the most favorable return to CACOST. A Proposer qualifies as a small business firm if it meets the definition of “small business” as established by the Small Business Administration (13 CFR 121.201).

HISTORICALLY UNDERUTILIZED BUSINESSES

It is CACOST’s policy to encourage participation of small and historically underutilized businesses (HUBs) as defined in Government Code, Chapter 2161. “Historically underutilized business (HUB): means an entity with its principal place of Business in this State that is:

1. a corporation formed for the purpose of making a profit in which 51 percent or more of all classes of the shares of stock or other equitable securities are owned by one or more economically disadvantaged persons who have a proportionate interest and actively participate in the corporation's control, operation, and management;

2. a sole proprietorship created for the purpose of making a profit that is completely owned, operated, and controlled by an economically disadvantaged person;

3. a partnership formed for the purpose of making a profit in which 51 percent or more of the assets and interest in the partnership are owned by one or more economically disadvantaged persons who have a proportionate interest and actively participate in the partnership's control, operation, and management;

4. a joint venture in which each entity in the venture is a historically underutilized business, as determined under Government Code Chapter 2161; or

5. a supplier contract between a historically underutilized business as determined under Government Code Chapter 2161 and a prime contractor under which the historically underutilized business is directly involved in the manufacture or distribution of the goods or otherwise warehouses and ships the goods.

EQUAL OPPORTUNITY

It is the policy of CACOST not to discriminate on the basis of race, color, creed, gender, religion, marital status, age, national origin or ancestry, physical or mental disability, medical condition, sexual orientation, political affiliation or belief or any other consideration made unlawful by applicable federal, state, or local laws. Proposer agrees not to discriminate against any employee or applicant for employment to be employed in the performance of this agreement, with respect to hiring, tenure, terms, conditions, and privileges of employment, or a matter directly or indirectly related to employment, because of age or race, color, creed, gender, religion, marital status, age, national origin, or ancestry, physical or mental disability, medical condition, sexual orientation, political affiliation, or belief. The Proposer further agrees that every subcontractor entered into for the performance of the agreement shall contain a provision requiring non-discrimination in employment herein specified, binding upon each subcontractor. Breach of the covenant may be regarded as a material breach of the agreement.

STEVEN’S AMENDMENT

This project will be supported by the Department of Health and Human Services Health Resources and Services Administration (HRSA) and the U.S. Departments of Health and Human Services as part of awards totaling $51,328,867 with 49% funded by non-government sources. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by HRSA, Administration for Children and Families, ACYF-FYSB, HHS or the U.S. Government.

CERTIFICATION WITH REGARDS TO LOBBYING

No federal appropriated funds will be paid to any person for influencing or attempting to influence an officer or employee of Congress or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant or loan, the entering into of any cooperative agreement or the extension, continuation, renewal, amendment or modification of any federal contract, grant, loan, or cooperative agreement.

PROHIBITED SUBSTANCES IN THE WORKPLACE

The Proposer is considered a representative of CACOST while carrying out the duties of the contract. CACOST has a policy that prohibits the possession and/or use of alcohol or illegal drugs when conducting CACOST business. If the Proposer is observed to be engaging in this type of behavior while performing any aspect of the contract, termination of the contract or agreement will occur.

EQUAL EMPLOYMENT OPPORTUNITY

The Equal Employment Opportunity Clause required under Executive Order 11246, the affirmative action commitment for disabled veterans, recently separated veterans, other protected veterans, and Armed Forces Service Medal Veterans, the affirmative action clause for handicapped workers and the related regulations of the Secretary of Labor, 41

CFR Chapter 60, are incorporated by reference in the contract. By accepting the contract, the Proposer certifies that it complies with the authorities cited above, and that it does not maintain segregated facilities or permit its employees to perform services at locations where segregated facilities are maintained, as required by 41 CFR 60.

DEBARMENT AND SUSPENSION

The Proposer certifies, by submission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency.

DISCLOSURE OF PENDING GOVERNMENT INVESTIGATIONS

It is the responsibility of the Proposer to disclose any ongoing or pending legal proceedings, including any such proceedings known to be contemplated by governmental authorities, that could affect the performance of the Proposer or the execution of any potential contract.

Failure to disclose this information or any efforts to omit such information may result in the disqualification of the offending Proposer’s bid and/or termination of the contract.

SCOPE OF SERVICES

Scope of Work: The scope of work for this project consists of the following primary tasks. CACOST requires that for all tasks, the Vendor assign a dedicated representative to work with CACOST and its project team through all phases of review, setup, planning, and training.

Compliance, communications and administrative support;

Review vendor contracts, evidence of insurance;

Act as liaison and advocate for CACOST in resolving vendor issues;

Provide semi-annual management reports.

Reduce overall administrative costs.

Prepare bid specifications and solicit proposals from insurance markets.

Evaluate bids and bidders, including administration, coverage, claim payment procedures, customer service, networks, reserve establishment policies, financial soundness, and identify the most cost-beneficial package among the various bidders.

Conduct an analysis of current and available coverage including the impact and feasibility of coverage design changes. The analysis shall also include the cost impact/savings ensuring the future arrangements are consistent with planned growth and consideration of budgetary guidelines.

Assist CACOST with the implementation and communication of new coverage or changes to existing coverage, which will include attending and presenting information at the Board of Directors meetings.

Review claims experience, claim service and claim administration to ensure maximum benefit.

Represent CACOST in all negotiations with providers on all issues including those related to fees, benefit levels, plan design and special terms and conditions.

Risk Insurance: CACOST operates 67 facilities, 86 vehicles and employs approximately 694 staff across seventeen counties in South Texas. Primary operations are centralized in Alice (Jim Wells County). Tasks requested are as follows:

Review exiting policies, suggest modifications to limits and recommend additional policies, based on best practices.

Directly involved with strategic planning, designing and negotiating the best property, casualty and worker’s compensation insurance coverage, policy terms, related cost and the selection of insurance products for the Agency.

During the Broker bidding and selection process, work directly with CACOST designated staff with regards to casualty, property and workers’ compensation insurance matters.

Current Risk Insurance limits and renewal dates are as follows:

Type of Coverage Amounts/Limits Renewal Commercial General Liability

$3,000,000 Products/Completed Operations Aggregate $3,000,000 General Aggregate (other than products/completed ops) $1,000,000 Bodily Injury & Property Damage Liability (each occurrence) $100,000 Damage to Premises rented (each occurrence) $1,000,000 Personal and Advertising Injury (any one person or org) $5,000 Medical Expenses (any one person)

02/01/2024

Professional Liability Coverage

$3,000,000 Professional liability aggregate limit $1,000,000 Each professional incident limit

02/01/2024

Commercial Auto Coverage

$1,000,000 Liability $1,000,000 Uninsured Motorist $1,000,000 Underinsured Motorist

02/01/2024

D&O and Employment Practices Liability

$1,000,000 D&O Liability $1,000,000 Employment Practices $1,000,000 Fiduciary Liability $100,000 Workplace Violence $2,000,000 Aggregate limit

Student Accident & Volunteer Accident

$250,000 Aggregate limit $50,000 Medical Expenses 02/01/2024

Crime Employee Theft and Client Coverage $1,000,000 ERISA Fidelity $1,000,000 Forgery or Alteration, including Credit, Debit, or Charge Card Extension ($25,000 Limit) $1,000,000 Inside the Premises $1,000,000 Outside the Premises $1,000,000 Money Orders and Counterfeit Paper Currency $1,000,000 Computer Fraud and Funds Transfer Fraud $1,000,000

02/01/2024

Cyber Liability A.) Network and Information Security Liability (Limit / Sum-Limit 5,000,000 Retention/Sub-Retention $25,000 B.) Regulatory Defense and Penalties (Limit / Sum-Limit 5,000,000 Retention/Sub-Retention $25,000 C.) Multimedia Content Liability (Limit / Sum-Limit 5,000,000 Retention/Sub-Retention $25,000 D.) PCI Fines and Assessments (Limit / Sum-Limit 5,000,000 Retention/Sub-Retention $25,000 E.) Breach Response (Limit / Sum-Limit 5,000,000 Retention/Sub-Retention $25,000 F.) Crisis Management and Public Relations (Limit / Sum- Limit 5,000,000 Retention/Sub-Retention $25,000 G.) Cyber Extortions (Limit / Sum-Limit 5,000,000 Retention/Sub-Retention $25,000 H.) Business Interruption and Extra Expenses ($5,000,000 i.

waiting period. 8 hours ii. Enhanced waiting period 8 hours I.) Digital Asset restoration (Limit / Sum-Limit 5,000,000 Retention/Sub-Retention $25,000

J.) Funds transfer Fraud (Limit / Sum-Limit 250,000 Retention/Sub-Retention $25,000 Pre-Claim Assistance $5,000

Pollution $2,000,000 General Aggregate Limit (other than products/completed Operations) $1,000,000 Contractors Pollution Liability Coverage Part / Per Pollution condition $1,000,000 Professional Liability Coverage Part / Per Claim

02/01/2024

Umbrella Each Occurrence Limit (Liability Coverage) $5,000,000 Personal & Advertising Injury Limit $5,000,000 Any one person or organization Products Completed operations Aggregate Limit $5,000,000 General Aggregate Limit (Liability Coverage) except with respect to Auto Liability and Products Completed Operations) $5,000,000 Retained Limit $10,000

Workers Compensation: CACOST employs approximately 694 employees in several different locations across different counties, with an estimated payroll of $30,914,000.

The current policy runs from January 1st through December 31st. The current experience modifier is 0.59. Current carrier and class codes are as follows:

Current Carrier Coverage Limit Texas Mutual Bodily Injury by Accident $1,000,000

Bodily Injury by Disease $1,000,000 Class Code Description Estimate Payroll 8810 Clerical Office $5,668,000 8837 Other-All Operations $25,246,000

PROPOSAL SUBMISSION REQUIREMENTS

A. Organization of Responses (General Investment Consultant Firm’s Proposal) To simplify the review process and enable the maximum degree of comparison, the responses to this RFP should be organized specifically in the following manner:

1. A dated title page indicating the RFP subject, the firm’s name, address, phone number, the name, title and contact phone number and email address for the individual who will be authorized to represent and, if necessary, negotiate on behalf of the investment consulting firm. Please include the address of the office that will service this account.

2. The name title or position, email, and telephone number of the primary contact and or account administrator, if different from the individual indicated on the title page referenced in #1 above.

3. Table of Contents, which includes a clear identification of the material by section and by page number.

4. Transmittal Letter or Executive Summary, which briefly states that your firm understands the work to be completed and a positive binding commitment to perform the work within the required time period, if your firm is selected to perform the outlined services.

5. Detailed Responses that follow the order set forth in EXHIBIT 1.

Nonconformance with these submission requirements may result in rejection of the proposal.

MINIMUM QUALIFICATIONS AND CERTIFICATIONS

Minimum Qualifications: The Proposer must meet all the following minimum qualifications and timely submit all required information to be given further consideration.

1. At least three (3) current non-profit clients.

2. At least five (5) years of experience providing insurance consulting services.

3. The individual(s) assigned as the primary consultant must have a minimum of five (5) years of experience in providing insurance consulting services.

4. Must be licensed as an insurance broker in the state of Texas. Please attach as

Exhibit A.

5. Certify that any information obtained from the CACOST will not be reproduced, sold, distributed, published or made available to any person or entity except as necessary to perform the services required by this RFP or by applicable law.

TECHNICAL PROPOSAL REQUIREMENTS

Please follow the organizational requirements as noted in in EXHIBIT 1. Label your responses accordingly.

A. Firm’s Background and History

1. Please provide a brief history of the firm including the year organized and the year the firm began providing insurance consulting services.

2. Please provide an organization chart and list the total number of firm professionals by consultants, research professionals, and staff.

3. Please indicate which office would service the CACOST account, the names of the team member(s) who would be assigned to this account and their contact information.

Include biographies for each team member. Also, include for the insurance professional assigned to the account, the number of years insurance consulting experience and number of tenured years at the firm. Please attach as Exhibit B.

B. References

Please provide as Exhibit C the name, address, telephone number and contact person for three (3) current clients to serve as references for your firm, preferably nonprofit organizations. Please detail name, primary contact, telephone number, email address, number of years the client has retained the firm and the product(s) or service(s)the client uses.

C. Proposed Services: The proposer shall at a minimum, clearly detail within the information submitted the following:

1. The proposers demonstrated experience in performing similar work and the proposers demonstrated successful past performance in claim management capabilities and loss prevention and a complete description of the products and services the firm provides.

2. A description of your experience in placing coverage such as property, general liability, commercial auto, etc.

3. A description of your process for negotiating renewals, including examples of your success.

4. A description of your firm’s commitment to customer service and quality assurance, including how your firm assures that performance criteria are properly defined, measured and reviewed.

5. A description of how your firm ensures that the needs of CACOST are met and that exclusions to insurance policies are clearly communicated to CACOST management.

6. A description of the services you will offer for managing CACOST’s documentation needs in the following areas: certificates of insurance and endorsements, issuance binders, review of policies, endorsements and audits.

7. Provide a detailed list of insurance companies you can access and obtain quotes for insurance types described in the RFP.

8. Conversion Plan-Describe how your firm would handle the transition of our account(s), if applicable. Supply an outline of an implementation plan including a timeline, roles and responsibilities and transition from implementation to on-going management.

D. Risk Management, Loss Control, and Claims Management

1. Description of how your firm will review our current risk management program and coverage.

2. Your approach to loss control and what services you would provide.

3. Your firm’s perspective on alternative approaches to risk management (i.e., captive insurance programs) that may reduce long-term expenses.

4. A description of how your firm would act as an extension of the Agency in the areas of risk and claim management.

E. Fee Structure (Include as Exhibit D)

1. Please provide your fee/commission structure for any services that would be provided.

2. Include any additional fees that will be incurred for the transition of service.

EVALUATION CRITERIA

A committee selected by CACOST will review and evaluate all proposals and make a recommendation to the CACOST Executive Director. Each proposal will be evaluated according to the following set of criteria. The evaluation committee may use any material submitted in the proposal for any item in the evaluation process.

The following table illustrates the general evaluation criteria that will be used to determine which proposal provides the most value to CACOST:

EVALUATION CRITERIA WEIGHT

Qualifications and Experience 30%

References 15%

Approach to Providing Services 30%

Fee Proposal 20%

Minority/Small Business 5%

Total 100%

In accordance with applicable laws, rules and regulations for public purchasing, an award will be made to the responsible Proposer whose proposal is determined to be the best value to CACOST. The proposal must be submitted on time and must materially satisfy all mandatory requirements identified above to qualify for evaluation. A written acceptance mailed or otherwise furnished to the qualified proposer and a fully executed contract is required prior to commencement of any work under this RFP. Protest procedures are available upon request and must be submitted within ten (10) business days of Intent of Award notification for consideration.

EXHIBIT 1

SUBMISSION CHECKLIST

ITEM

INCLUDED IN

RFP RESPONSE

Transmittal Letter

Answers To All Questions in Technical Proposal

Exhibit A – Copies of required Licenses

Exhibit B - Biographies of Proposed Team Members

Exhibit C – Client References

Exhibit D – Fee Schedule