Request for Proposal s56

FAXED RESPONSES ARE NOT ACCEPTABLE Request for Proposal Shawnee Mission Unified Date: 10-11-2013 RFP # 13-068 School District No. 512 For: INSURANCE BROKER SERVICES ALL RESPONSES MUST BE DELIVERED IN SEALED Proposals will be accepted and opened on: ENVELOPES TO: Date: November 5, 2013 Shawnee Mission Unified Schools Day: Tuesday Purchasing Department ATTN: RON ROE Time: 4:00 p.m. 7235 Antioch Shawnee Mission, Kansas 66204 Conditions under which proposals are requested are included. Please review thoroughly. Front of envelope must be marked: RFP # 13-068, INSURANCE BROKER SERVICES

FAXED RESPONSES ARE NOT ACCEPTABLE

Refer Inquiries To: RON ROE Name and Address of Offeror:

Fax: (913) 993-6225

Telephone: (913) 993-6434

E-Mail address: [email protected]

GENERAL: Proposals are subject to the attached Standard Terms and Conditions. Any questions regarding specifications or proposal procedures should be directed by email to Ron Roe, Manager of Purchasing Services no later than Thursday, October 24, 2013 @ [email protected].

SCOPE OF PROPOSED CONTRACT: Shawnee Mission School District is seeking proposals for insurance broker services. It is anticipated that the “Broker of Record” and Broker Agreement will become effective on or about March 15, 2014. The District will require the broker to assume all broker responsibilities at that time. They will also be required to aggressively pursue renewals and also periodically seek alternatives to the in-force program as stated herein. The insurance renewal or proposals are to be presented to District Staff and subsequently to the School Board prior to the June 15, 2014 inception date.

The District’s workers’ compensation program is currently self-insured and neither the excess insurance nor TPA services shall be included within the services requested within the scope of this RFP.

The district is requesting that broker services be proposed on a fee basis, with insurance premiums quoted net of commissions. Please review the sample agency agreement carefully regarding the requested services. RFP 13-068 Page 2 of 10

INSURED: Shawnee Mission Unified School District #512 7235 Antioch Shawnee Mission, Kansas 66204-1798

CONTACT: Mr. Ron Roe, C.P.M. Manager of Purchasing Services Shawnee Mission Schools 7235 Antioch Shawnee Mission, KS 66204 [email protected]

PROPOSED CONTRACT PERIOD: MARCH 15, 2014 TO MARCH 15, 2015 (with the option to annually renew up to four(4) additional years)

DEADLINE FOR RECEIPT OF PROPOSAL: To be accepted, three (3) copies and one electronic copy of your proposal must be in the office of:

Mr. Ron Roe, C.P.M. Manager Purchasing Services Shawnee Mission Public Schools #512 7235 Antioch Shawnee Mission, KS 66204 4: 00 PM, Tuesday, November 5, 2013 (There will be NO Public Opening)

Page SECTION: Introduction 2 District Information 3 Instructions 5 Scope of Services 6 Questionnaire 8 Coverage Summary 9 Claim Summary 10

The District reserves the right to accept or reject any or all proposals, and to waive any technicalities or irregularities in any proposal, and to make award to the response, which in the District’s opinion is most advantageous to the District. RFP 13-068 Page 3 of 10

DISTRICT INFORMATION

... The School District was originally unified in 1969.

... The District is open to residents of Fairway, Lake Quivira, Leawood, Lenexa, Merriam, Mission, Mission Hills, Mission Woods, Overland Park, Prairie Village, Roeland Park, Shawnee, Westwood, and Westwood Hills, covering 72 square miles.

... The District has approximately 3,500 non-seasonal employees including about 2,000 certified staff members.

... Estimated Student Enrollment - 2012-2013 Preschool 255 4 Year Old At Risk 96 K-6 14,656 7-8 3,873 9-12 8,211 Special Education 234 Non-graded 112 TOTAL: 27,437

... The District consists of the following major facilities: 33 Elementary schools 5 Middle schools 5 High schools Horizons High School (alternative education center) Broadmoor Center (career and technical education / central kitchen) Shawnee Mission Instructional Support Center Indian Creek Technology Center (staff training / technology services) Operations and Maintenance Building Supply Warehouse McEachen Administrative Building Arrowhead Administrative Center Athletic complexes (2 football stadiums, 1 soccer complex, 1 softball complex)

… Additional information regarding the District can be seen at this web site:

www.smsd.org RFP 13-068 Page 4 of 10

INSTRUCTIONS / TERMS AND CONDITIONS

... ALL questions are to be submitted no later than Thursday, October 24, 2013 via email to: Mr. Ron Roe, C.P.M. Manager of Purchasing Services Shawnee Mission Schools [email protected]

… The District reserves the right to modify or cancel any part of these specifications after issuance in the form of an addendum which will be faxed to each offeror.

... THREE (3) copies of the proposal are required at the time of proposal submittal. In addition, you must include one (1) electronic copy.

... The District will not be responsible for any expenses incurred by a firm in preparing and submitting proposals.

The Broker shall bill quarterly and the District shall pay within thirty (30) days of receipt of the quarterly billing.

Broker agrees to maintain Professional Liability Insurance in an amount of no less than $500,000 and, upon request, provide the District with certification therof.

Broker is and independent contractor and as such is not an employee of the District. Broker is responsible for all federal, state and local taxes.

... Respondents will be prohibited from assigning, transferring, conveying, subletting, or otherwise disposing of this proposal or any resultant agreement or its rights, title or interest therein or its power to execute such agreement to any other person, agent, broker, company or corporation without the previous written approval of the District.

BROKER warrants that it has not employed or retained any company or person, other than a bona fide employee working for BROKER, to solicit or secure this AGREEMENT, and that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, broker fee, gifts, or any other consideration contingent upon or resulting from the award or making of this AGREEMENT. For breach or violation of this warranty, DISTRICT may terminate this AGREEMENT without liability or may, in its discretion, deduct from the Contract Price or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

The AGREEMENT is entered into under and pursuant to, and is to be construed and enforceable in accordance with, the laws of the State of Kansas.

This AGREEMENT shall be in force and effect from and after the 15th day of March 2014 to March 15, 2015. DISTRICT reserves the right, but has no obligation to renew the RFP 13-068 Page 5 of 10

AGREEMENT for four (4) additional consecutive annual periods. BROKER must request any modifications to this AGREEMENT, including annual fee, no less than sixty (60) days prior to the conclusion of this Agreement period. Failure to make such a request shall bind BROKER to the terms and conditions of this AGREEMENT for the renewal period.

DISTRICT reserves the right to terminate this AGREEMENT with or without cause or for its convenience by providing thirty (30) days written notice of such termination to the BROKER. Fees payable to the BROKER under this AGREEMENT will be calculated on a pro-rata basis, with any applicable reimbursement remitted to DISTRICT on or before the termination date. There is no obligation by DISTRICT to provide written notice to BROKER for AGREEMENT non-renewal.

... The District has the sole discretion to reserve the right to select the proposal as determined to best meet the needs of the District. Each proposer waives any claim against the District should the District fail to select their proposal.

... Proposals are to be delivered to the Manager of Purchasing Service by 4:00 PM, Tuesday, November 5, 2013. All proposals received after the deadline will NOT be considered. There will be no public opening of proposals. Full disclosure of all proposals submitted will be made available after an award has been made.

… District Staff will review all proposals. If deemed necessary, interviews of brokers will be conducted during the week of November 18, 2013. The School Board is scheduled to select the broker during the December 9, 2013 meeting.

All proposals shall be valid and constitute an irrevocable offer to contract on the terms and conditions contained in this Request for Proposal for ninety (90) days after opening. The district reserves the right to accept or reject proposals on any item or service separately or as a whole, to reject any or all proposals, to waive informalities or irregularities, and to contract in the best interest of the District.

Responses will be in the form of an e-mail or fax. Verbal responses and/or representations shall not be binding on the District.

The selection of a successful proposer, if any, will be made based upon which proposal the District determines would best meet its requirements and needs. The District shall not in any event be required or constrained to award the agreement to the proposer on the basis of price alone. This proposal shall be awarded to one firm.

The District reserves the right to negotiate scope of services and proposed fees with the finalist proposer. In the event that agreement on services and/or fees can’t be reached in a reasonable time frame determined by the District, the District may begin negotiations with another proposer.

A decision regarding the awarded broker will be based upon responses provided to each group of items in the Questionnaire included in these specifications, and any interviews deemed appropriate by the District. RFP 13-068 Page 6 of 10

SCOPE OF SERVICES

The selected broker shall provide, at a minimum, the following services.

1. Work with District to manage risk and control costs.  Work with District to develop, recommend, negotiate and implement cost-effective insurance and/or risk financing programs.  Analyze factors that are driving District’s cost of risk.  Act as an advisor to the District for any specialty insurance coverage that may be outside the normal risk transfer program.  Provide loss control assistance based on exposure identification and District/national loss trends.  Assist in the identification and assessment of insurable assets, including newly completed facilities and renovations. Perform site inspections of identified facilities as needed.  Prepare for and attend meetings, as reasonably requested by District or as initiated by Broker.  Attend quarterly claim meetings.  Coordinate efforts and requests with consultants, if any, as retained by District.

2. Give District access to the worldwide insurance marketplace.  Broker represents District, not the insurance company.  Obtain renewal and/or marketing information from District or its designee.  Access all necessary insurance companies via direct contract or by use of a secondary broker.  Broker must disclose to District the use of such a secondary broker.  Work with District so that District's renewal or marketing information is comprehensive, professional, and of a character that will obtain for District the best possible response.  Formulate a marketing strategy at the direction of District or its designee.  Formally present District's submissions to each selected market.  Negotiate on District's behalf with insurance companies and keep District informed of significant developments.  Provide District or its designee with pricing and coverage summaries for all new coverage’s and updates on changes to existing pricing and coverage’s.  Place coverage as instructed by District.  Direct carriers to distribute two (2) copies of all policies to District within sixty (60) days of policy inception.  Follow up with insurance carriers for timely issuance of policies and endorsements.  Review policies, endorsements, and invoices for accuracy and conformity to specifications and negotiated coverage’s.  Monitor published financial information of District's current insurers and alert District immediately if insurer's status falls below Broker's minimum guidelines.  Field questions from District relating to contractual coverage issues between District and its insurer.  Keep District informed of significant changes and/or trends in the insurance marketplace and provide the District with an annual forecast of market conditions. RFP 13-068 Page 7 of 10

SCOPE OF SERVICES(Continued)

3. Deliver administrative support  Assist District in preparing underwriting information and insurance applications.  Prepare and distribute binders to District prior to the expiration of District's current policies.  Process endorsement requests from District or its designee.  Process certificates of insurance, bonds, and auto identification cards as requested by District.  Review the accuracy of audits, rating adjustments, dividend calculations, and loss runs.  Provide District with detailed invoices.  Forward claims to the insurer as appropriate and monitor loss reports on a regular basis.  Prepare a mid-year stewardship report including market developments and trends. RFP 13-068 Page 8 of 10

QUESTIONNAIRE / EVALUATION CRITERIA

ALL PARTICIPANTS MUST AGREE TO COMPLY WITH THE FOLLOWING. ALL items in the “Questionnaire” must be answered in the order presented. Any omissions may result in broker disqualification.

There is no specific weight on any specific question or segment as the District evaluates these based on their own interpretation of importance. The District shall make the award to the proposer whose proposal will be most advantageous to the District, in the District’s sole discretion, conformance to the specifications, quality, and other factors as evaluated by the District.

AGENCY INFORMATION 1. List the address from which the District’s account will be handled. 2. What is the size of your firm, i.e. number of employees / locations? 3. How long have you been in business? 4. Do you have a web-site address? 5. Percentage of commercial vs. personal lines of coverage written. 6. Total property and casualty premiums placed annually by your firm. 7. List of top 5 insurers with whom you place business.

GOVERNMENTAL ENTITY EXPERIENCE 1. How many Kansas educational and/or governmental entity accounts does your firm have? Please include:  Contact individual  Phone number  Lines of coverage written  Years of service to that account  Size of the account (population – student or equivalent) 2. Provide a list of all insurers you feel would best service the insurance needs of the District and provide information regarding your firm’s relationship with these insurers (i.e., direct license, utilization of a broker, etc.) and number of current governmental entity accounts. 3. Do members of your firm have a working knowledge of the Kansas Tort Claims Act as it relates to educational institution liability and insurance? Please provide details. 4. Are you members of any organizations or do you participate in any seminars that directly relate to educational and/or governmental entity risk?

AGENCY SERVICES / FEES 1. List the service team that would be assigned to the District’s account. Include any experience they have with educational and/or governmental entity risks. 2. How does your firm track and communicate changes in the status of clients’ insurers, such as negative ratings changes or other negative developments? 3. Do you agree with the terms and conditions set forth herein? 4. Provide a sample agreement or contract. 5. Provide a summary on how you propose providing these services including an annual service time-line. 6. What is your annual fee for the basic services outlined in these specifications? What will the fee be for years 2-5? 7. What "value added" services are offered by your agency? Include applicable fees/charges for said services. RFP 13-068 Page 9 of 10

COVERAGE SUMMARY

Board approval June 10, 2013 Proposed Fees and Premiums Premiums and Fees Coverage Insurer 2012-13 Insurer 2013-2014 Property (1) Travelers $450,080 Travelers $502,094 Fine Arts Travelers 3,491 Travelers 3,491 General Liability Genesis 199,674 Genesis 197,766 Law Enforcement Genesis Included Genesis Included Automobile Genesis Included Genesis Included Garage Liability Genesis Included Genesis Included Crime Hartford 12,398 Hartford 13,022 Boiler & Machinery Travelers Included Travelers Included Treasurer Bond (07/01) Fidelity & Deposit 350 Fidelity & Deposit 350 Nurses / Physical Therapist Genesis Included Genesis Included Malpractice School Leaders E&O Genesis Included Genesis Included Terrorism Genesis 4,502 Genesis 4,502 Fiduciary Liability (7/23) (2) Federal Ins. Co. 10,233 Federal Ins. Co. 11,052 Sub-totals: $761,409 $732,277

Broker Fees (3/15) (3) Lockton 52,500 Lockton 52,500

(1) Includes musical instruments, fine arts, scheduled contractors equipment and unscheduled contractors equipment (rented). $450,000,000 Single Loss Limit (TIV $1,059,733,252).

(2) Fiduciary Liability policy renewal is July 23rd

(3) Annual broker agreement (3/15/13 – 3/15/14) approved at prior board meeting. All premiums net of commissions. RFP 13-068 Page 10 of 10

COVERAGE SUMMARY (Continued)

Type CARRIER LOSS LIMITS SELF-INSURED 2013-2014 RETENTIONS 2013-2014 Property / Inland Marine Travelers $450,000,000 $100,000 per occurrence $100,000 Earthquake, Flood Fine Arts Travelers $1,213,467 $5,000 ($25,000 Benton) Boiler & Machinery Travelers $10,000,000 $5,000 per accident Crime Hartford $2,750,000 $25,000 per loss General Liability Genesis $5,000,000 $500,000 per occurrence Law Enforcement (included w/G.L.) Genesis $5,000,000 $500,000 per occurrence Nurses / Physical Therapist Genesis $5,000,000 $500,000 per occurrence Medical Malpractice Automobile (Incl. Garage Liability) Genesis (Travelers – $5,000,000 $100,000 Physical Damage / Physical Damage) Specified Perils $500,000 Liability School Leaders Errors & Omissions Genesis $5,000,000 $500,000 each wrongful act Fiduciary Liability Federal Ins. Co. $5,000,000 $0

CLAIM SUMMARY

There have been no claims reported to the insurance companies in the past 5 years.