Actuarial Audit

The City of Royal Oak is soliciting proposals for actuarial audit services to evaluate the Retiree Health Care Plan for the municipality. This procurement is being conducted by the City of Royal Oak Board of Trustees in Oakland County, Michigan, and requires qualified actuarial firms to audit the work of the current actuarial consultant, Gabriel, Roeder, Smith & Company, in compliance with Michigan Public Act 202 of 2017, which mandates that local units of government sponsoring defined benefit arrangements conduct actuarial audits at least every eight years. The Plan encompasses approximately 70 active members and 429 retired members and beneficiaries with assets exceeding $175 million as of December 31, 2025. Prospective service providers must be enrolled actuaries in good standing with strong credentials and must submit proposals electronically through the procurement portal at https://procurement.opengov.com/portal/romi by 12:00 p.m. on Tuesday, April 21, 2026, with a question submission deadline of April 17, 2026 at 12:00 p.m. Proposals must include six complete sets with a title page, table of contents, letter of transmittal, organizational background, administration, management commitment, risk management, references, and comprehensive auditing services capabilities. The contractor must propose fixed fee pricing for three distinct audit levels: Level 3 (Review of Report), Level 2 (Sampling Method), and Level 1 (Full Replication), with all levels requiring a determination and opinion on whether the current consultant's actuarial methods and assumptions are technically sound and conform to Actuarial Standards of Practice, deliverable final written reports, formal presentation to the Board, and allowance for the current actuary's written response. Work must commence within ten working days of City Commission award, with completion dates to be established with the selected contractor.

The RFP does not identify any specific set-aside designations or disadvantaged enterprise restrictions, though the current vendor Gabriel, Roeder, Smith & Company is identified as the incumbent actuarial consultant whose work will be audited. The City of Royal Oak requires the selected contractor to obtain all necessary licenses and permits at no cost to the municipality and to furnish specified bonds and certificates of insurance within ten working days of contract award, including $1,000,000 Combined Single Limit Commercial General Liability, Workers' Compensation as required by law with $100,000 Employer's Liability, $1,000,000 Automobile Liability, and Professional Liability with $1,000,000 per occurrence and aggregate limits. Bidders must also submit three references, a non-collusion affidavit, certification regarding debarment and suspension, and certification that the vendor is not an "Iran Linked Business" as required by Michigan law. All proposals remain binding for 90 days from the bid award date, except for the successful bidder whose prices remain firm through project completion. The City reserves the right to reject any or all proposals, request oral presentations from finalists, conduct pre-contract negotiations, and accept the proposal deemed most favorable to its interests. No specific award value or budget range is disclosed in the procurement documents; pricing is to be submitted as a proposal component for evaluation.