ORDINANCE approving and awarding contract between City of Houston and MCGRIFF INSURANCE SERVICES, LLC for Insurance Broker of Record Services for the Administration and Regulatory Affairs Department; providing a maximum contract amount - 3 Years with 2 one-year options - $809,445.00 - Property and Casualty Fund

Request for Proposals received September 8, 2023, for S36 - T32920 - Approve an ordinance awarding a contract to McGriff Insurance Services, LLC in a maximum contract amount of $809,445.00 to provide an Insurance Broker of Record for the Administration and Regulatory Affairs Department.

Specific Explanation:
The Director of the Administration and Regulatory Affairs Department and the Chief Procurement Officer recommend that City Council approve an ordinance awarding a three-year contract with two (2) one-year options to renew to McGriff Insurance Services, LLC in a maximum contract amount of $809,445.00 to provide an Insurance Broker of Record for the Administration and Regulatory Affairs Department.  

The Contract will provide Professional Insurance Consulting and Insurance Broker of Record Services.  The scope of work requires the Contractor to provide Insurance Broker of Record services to assist the City in professional risk management, insurance consulting, and non-health-related commercial Insurance marketing and related services.

The Contractor shall provide the following services that include but are not limited to 1) Basic insurance marketing services and procurement of all property and other commercial insurance (non-health related) and bonds, 2) Property and casualty insurance and contract consulting services, 3) Advising the City on risk management related issues, 4) Assistance in insurance claim recoveries, and 5) Completion of designated insurance replacement cost appraisals.

The Request for Proposals (RFP) was advertised in accordance with the requirements of the State of Texas bid laws. As a result, proposals were received from three (3) firms: Alliant Insurance Services, Inc., Arthur J. Gallagher Risk Management Services, LLC, and McGriff Insurance Services, LLC. The Evaluation Committee (EC) consisted of City employees from the Finance and General Services Departments, the Mayor’s Office of Recovery, Houston Public Works, and Houston Airport System, and non-voting advisors from the Administration and Regulatory Affairs Department, and Houston First Corporation. The evaluation was based on the following criteria:

1. Responsiveness of Proposal
2. Technical Competence
3. Price

McGriff Insurance Services, LLC received the highest overall score and was deemed the best qualified firm to meet the requirements outlined in the RFP.

MWBE Participation:
The RFP was advertised with a 15% goal for M/WBE participation. McGriff Insurance Services, LLC submitted a participation plan of 25% and has designated the below-named company as its certified M/WBE subcontractor.

Pay or Play:
The proposed contract requires compliance with the City’s Pay or Play ordinance regarding health benefits for employees of City contractors. In this case, the contractor provides health benefits to eligible employees in compliance with City policy.

Hire Houston First:
The proposed contract requires compliance with the City’s Hire Houston First (HHF) ordinance that promotes opportunity for Houston businesses and supports job creation. In this case McGriff Insurance Services, LLC does not meet the requirements for HHF designation; no HHF firms were within three percent.

Fiscal Note:
Funding for this item is included in the FY2024 Adopted Budget. Therefore, no Fiscal Note is required, as stated in the Financial Policies.

Estimated Spending Authority

$809,445.00

Property & Casualty Fund

Fund No.: 1004