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File #: 12-231    Version: 1 Name: Willis Consulting Contract Report
Type: Action Report Status: Signed
File created: 2/18/2012 In control: Milwaukee County Board of Supervisors
On agenda: Final action: 3/27/2012
Title: From the Benefits Administrator, Department of Human Resources, requesting authorization to execute a three-year contract with Willis for benefits consulting and actuarial services through December 2014 with two additional consecutive one-year renewal options at the County’s discretion. (Referred to the Committees on Finance and Audit and Personnel.)
Attachments: 1. REPORT, 2. RESOLUTION, 3. FISCAL NOTE, 4. CB Resolution, 5. Audio F&A 03/08/12, 6. Audio PER 03/09/12
Related files: 20-199, 16-461, 21-299

Title

From the Benefits Administrator, Department of Human Resources, requesting authorization to execute a three-year contract with Willis for benefits consulting and actuarial services through December 2014 with two additional consecutive one-year renewal options at the County’s discretion.  (Referred to the Committees on Finance and Audit and Personnel.)

 

Body

 

Issue/Background

 

In late November 2011 the Employee Benefits Division was tasked with developing and releasing an RFP for consulting and actuarial services beginning in 2012. With the pending transition of Employee Benefits from the Department of Administrative Services to the Department of Human Resources, DAS confirmed that the administration of any resulting benefits consulting contract would fall within the scope of the Director of Human Resources.   

 

The RFP followed the procedures outlined in chapter 56.30 of the Milwaukee County code of ordinances, and the successful bidder is required to comply with the disadvantaged business enterprise (DBE) policy defined in CFR 49 Part 23 and 26 and Chapter 42 of the Milwaukee County Ordinances.

 

On December 12, 2011 the draft RFP, scope of services, and suggested selection criteria were distributed to DAS and the employee benefits workgroup for commentary. A review panel including representatives from DAS Fiscal, Milwaukee County Board Staff, Employee Benefits, the Community Business Development Partners, and the Milwaukee County Transit System’s benefit staff was assembled to finalize the RFP, including the selection criteria and scoring for selecting finalists.

 

On January 6th, 2012, the RFP was posted to the County procurement site and notice was published in the Milwaukee Journal Sentinel.  Bids were due January 20th, and reviewed by the panel on Janaury 27th.  The review panel selected 3 bids as finalists.

 

Finalists were given 90 minutes to present their best and final proposal to the review panel. Additional time was also allotted to each finalist to provide time for questions and answers from the panel. At the conclusion of all presentations, the panel reviewed the results of each finalist presentation, and reached unanimous consensus that the proposal by Willis was the strongest bid.

 

Willis

Willis is a nationwide firm, however, the entire proposed Milwaukee County account team, including actuarial support, is located in Wauwatosa. Willis demonstrated the strongest knowledge of the local health care provider and insurance market, as well as the Wisconsin regulatory environment. In the public sector, Willis has held a long-standing relationship with the City of Milwaukee, among many others. The proposal gave the clearest and strongest indication of the overall approach to assisting with benefits strategy and design. The actuarial resources and subject matter experts have the ability to meet all of the technical and analytical requirements. Willis presented the lowest priced bid at $165,000 annually.  

 

Disadvantaged Business Enterprise (DBE)

Willis has submitted a statement of good faith effort that is pending approval by Milwaukee County’s Community Business Development Partners (CBDP). Willis will continue to work directly with Mildred Hyde-Demoze of the CDBP to ensure sustained compliance with the County’s DBE goals throughout the contract. The annual goal amount based on the proposed contract would be $28,050. Willis is committed to achieving that goal.

 

Financial Comparison of Bids

The proposed annual retainer fee with Willis was the lowest cost bid at $165,000. On average, the Willis bid was $9,000 - $14,000 per year lower than the other finalists.

 

At $165,000, the proposal from Willis is a reduction of approximately $75,000 from the amount allocated for benefits consulting services in the 2012 operating budget (includes OPEB valuation).

 

Requested Board Action

Based on the recommendations of the review panel, the Department of Human Resources is seeking approval for the Director, Department of Human Resources to execute a 3-yr contract with Willis for consulting and actuarial services. The contract is to be an annual retainer basis of $165,000 per year from 2012 - 2014, with two consecutive one-year extensions at the same cost at the County’s option. This contract is subject to DBE participation goal, set a $28,050, based on the value of the contract.