Title
Extend Marsh Broker Contract an Additional Three Months to June 30, 2014 (NB)
This item requests a three month extension for broker services with Marsh USA, Inc.
Explanation
The City uses a competitive bid process to award our broker services contract. Typically, the City renews or awards this contract in September, which is the same time frame that the City’s insurance program is being marketed by the current broker. This makes transitioning to a new provider very difficult and puts our bid process in the middle of our insurance marketing efforts. Staff has been somewhat disappointed in the responses to our previous attempts to market this service. The City only received three proposals during the last attempt to market broker services. In an effort to increase competition, staff believes moving the process to January will allow more providers to prepare a response for the City to consider. Most public entities market their insurance programs during August and September which makes it difficult for vendors to devote time to a bid process which would conflict with their current client base.
Design of the proposal has taken longer than expected and staff needs additional time to receive and evaluate the proposals.
Marsh USA, Inc. has agreed to continue to provide the service on a monthly basis until the selection process has completed. This request to move the bid process is not due to poor service or performance on the part of Marsh, Inc. In fact, the opposite is true. Marsh has provided innovative solutions to our insurance needs and superior loss control support for Gainesville Regional Utilities.
Fiscal Note
Funds of $49,615 are available in the General Insurance Fund. This is no increase over the current annualized amount.
Recommendation
The City Commission: 1) approve the additional three month extension to Marsh USA, Inc.; and 2) authorize the City Manager or his designee to enter into the three month extension to the current agr...
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