HomeMy WebLinkAbout2006-26251 Reso
RESOLUTION NO. 2006-26251
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER
PERTAINING TO THE RANKING OF PROPOSALS PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 14-05/06, FOR INVESTIGATIVE AND ADJUSTING SERVICES
FOR SELECTED TORT LIABILITY AND WORKERS' COMPENSATION CLAIMS;
AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-
RANKED FIRM OF HORIZON INVESTIGATIONS, INC. (PRIMARY) AND THE SECOND-
RANKED FIRM OF JOHNS EASTERN COMPANY, INC. (SECONDARY); AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE CONTRACT(S) WITH THE
PRIMARY AND SECONDARY FIRM UPON COMPLETION OF SUCCESSFUL
NEGOTIATIONS.
WHEREAS, on February 8, 2006, the Mayor and City Commission authorized the issuance of
Request for Proposals (RFP) No. 14-05/06 for investigative (surveillance related) and adjusting
services for selected tort liability and Workers' Compensation claims; and
WHEREAS, RFP No. 14-05/06 was issued on February 23, 2006, with an opening date of
March 29, 2006; and
WHEREAS, a pre-proposal submission meeting to provide information to firms submitting a
proposal was held on March 7, 2006; and
WHEREAS, Bid Net issued bid notices to fifty-six (56) prospective proposers, resulting in six
(6) proposers requesting the RFP document; and
WHEREAS, proposals were received from Horizon Investigations, Inc. and Johns Eastern
Company, Inc.; and
WHEREAS, the City Manager via Letter to Commission (LTC) No. 091-2006, appointed an
Evaluation Committee (lithe Committee") consisting of the following individuals:
· Clifton Leonard, Risk Manager, City of Miami Beach (Chair);
· Judy Weinstein, First Assistant City Attorney, City of Miami Beach;
. Saul Frances, Parking Director, City of Miami Beach;
· Chuck Garabedian, Police Captain, City of Miami Beach;
· Michael Alvarez, Public works Assistant Director, City of Miami Beach; and
WHEREAS, the Committee convened on June 13, 2006; and
WHEREAS, both firms provided a presentation relative to their proposal submittal, with a
question and answer session following each presentation; and
WHEREAS, at the conclusion of the presentations and question and answer session, the
Committee unanimously recommended that Horizon Investigations, Inc. be recommended as the
primary firm, and that Johns Eastern Company, Inc. be recommended as the secondary firm; and
WHEREAS, the City Manager concurs with the Committee's recommendation.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the
recommendation of the City Manager pertaining to the ranking of proposals, pursuant to Request for
Proposals (RPF) No. 14-05/06, for Investigative and Adjusting Services for selected Tort Liability and
Workers' Compensation Claims; authorizing the Administration to enter into negotiations with the top-
ranked firm of Horizon Investigations, Inc. (Primary) and the second-ranked firm of Johns Eastern
Company, Inc. (Secondary); and further authorizing the Mayor and City Clerk to execute contract(s)
with the Primary and Secondary firms upon completion of successful negotiations.
DAY OF July
2006.
PASSED AND ADOPTED THIS 12th
ATTEST:
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APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
Accept the City Manager's Recommendation Pertaining to the Ranking of Proposals, Pursuant to Request
for Proposals No. 14-05/06, For Investigative and Adjusting Services for selected Tort Liability and
Workers' Compensation Claims.
Ke Intended Outcome Su orted:
Improve the City's overall financial health and maintain overall bond rating.
Issue:
Shall the City Commission approve the City Manager's recommendation to accept the ranking of
proposals, authorize negotiations, and authorize the execution of a contract(s) upon successful
neQotiations?
Item Summary/Recommendation:
On February 8, 2006, the Mayor and City Commission authorized the issuance of Request for Proposals
(RFP) No. 14-05/06 for Investigative and Adjusting Services for selected Tort Liability and Workers'
Compensation Claims.
RFP No. 14-05/06 was issued on February 23, 2006 with an opening date of March 29, 2006. A pre-
proposal submission meeting to provide information to prospective firms was held on March 7, 2006.
BidNet issued bid notices to fifty-six (56) prospective proposers, and the Procurement Division notified an
additional fourteen (14) firms resulting in six (6) proposers requesting the RFP document, which resulted in
the receipt of the following two (2) proposals from:
. Horizon Investigations, Inc. ("Horizon")
. Johns Eastern Company, Inc.("Johns Eastern")
The City Manager via Letter to Commission (LTC) No. 091-2006, appointed an Evaluation Committee ("the
Committee") that convened on June 13, 2006 to listen to presentations from Horizon Investigations, Inc.
and Johns Eastern Company, Inc, with a Question and Answer session following each presentation.
At the conclusion of the Presentations and Question and Answer sessions, the Committee voted
unanimously to recommend Horizon Investigations, Inc. as the top-ranked Firm (Primary) and Johns
Eastern Company, Inc. as the second-ranked Firm (Secondary); and further authorize the Mayor and City
Clerk to execute contract(s) upon completion of successful negotiations.
ADOPT THE RESOLUTION
Advisory Board Recommendation:
I N/A
Financial Information:
Source of Amount Account Approved
Funds: 1 $57,000 540.1790.000312
[$J 2
3
4
Total $57,000
Financial Impact Summary:
islative Trackin
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MIAMIBEACH
AGENDA ITEM
DATE
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MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager ~
July 12, 2006 0 0
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS RECEIVED
PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 14-0&101, FOR
INVESTIGATIVE AND ADJUSTING SERVICES FOR SELECTED TORT
LIABILITY AND WORKERS' COMPENSATION CLAIMS; AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED
FIRM OF HORIZON INVESTIGATIONS, INC. (PRIMARY) AND THE SECOND-
RANKED FIRM OF JOHNS EASTERN COMPANY, INC. (SECONDARY); AND
FURTHER AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE
CONTRACT(S) WITH THE PRIMARY AND SECONDARY FIRM UPON
COMPLETION OF SUCCESSFUL NEGOTIATIONS.
TO:
DATE:
SUBJECT:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANAL YSIS
The City of Miami Beach requires the services of one to two experienced firms to provide
Investigative (surveillance related) and adjusting services for selected tort liability and
workers' compensation claims. The City of Miami Beach is self-insured for both tort liability
claims and workers' compensation claims. This RFP does not include the Administration of
the City's Workers' Compensation program which is under separate contract.
Investigative Services and Adjusting Services are a very important part of the City's self-
insured Tort Liability and Workers' Compensation program. These services help to minimize
fraudulent claims and protect the assets of the City. The Mayor and City Commission
previously authorized the City on May 29, 2002 to contract for this service. The current
contract expired on May 29, 2006, however it has been extended until the new contract is
executed.
It is the intent of this RFP to use the "Best Value" Procurement process to select a firm(s)
with the experience and qualifications; the ability; capability, and capacity; and proven past
successful performance in providing high quality investigative and adjusting services for
selected tort liability claims and workers' compensation claims.
Commission Memorandum
RFP No. 14-04/05 - Investigative and Adjusting Services for selected Tort Liability and
Workers' Compensation Claims
Page 2
ANALYSIS (Cont.)
This contract will be for a period of one (1) year upon the date of execution. The City of
Miami Beach has the option to renew the contract at its sole discretion for an additional four
(4) year period on a year-to-year basis. Renewal of the contract is a City of Miami Beach
prerogative, not a right of the contractor. Such option will be exercised, if at all, only when it
is in the best interest of the City of Miami Beach.
In the event that the contract is held over beyond the term herein provided it shall only be
from a month-to-month basis only and shall not constitute an implied renewal ofthe contract.
Said month to month extension shall be upon the same terms of the contract and at the
compensation and payment provided herein, and shall not exceed six (6) months.
SCOPE OF SERVICES:
*
Provide Surveillance of the claimant for selected Tort Liability and Workers'
Compensation Claims.
*
Provide Activity Checks of the claimant for selected Tort Liability and Workers'
Compensation Claims.
*
Provide "Research and Background Investigations" of claimants for selected Tort
and Workers' Compensation Claims.
*
Provide complete investigative and adjusting services for selected Tort Liability
Claims.
*
Other related services as requested.
*
Submit a written report with appropriate documentation at the conclusion of each
assignment to the Risk Management Division. The report must contain the
following minimum information:
*
Identify the claimant investigated and provide a written comprehensive report
indicating activity preformed, summary, and recommendations.
*
Provide written background results, surveillance tapes/DVD, and photos.
*
Invoice for type of activity and length of activity identifying total amount due.
Commission Memorandum
RFP No. 14-04/05 - Investigative and Adjusting Services for selected Tort Liability and
Workers' Compensation Claims
Page 3
ANALYSIS (Cont.)
MINIMUM REQUIREMENTS / QUALIFICATIONS:
*
Must possess a class "A" license issued by the State of Florida. Investigators must
possess a "C" or "CC" license.
*
Must possess an "Appointment" as an Adjusting Agency for All-Lines Insurance
Claims by the State of Florida.
*
Must have a minimum of ten (10) years verifiable experience.
*
Must be located and locally managed within sixty (60) miles from the City limits of
Miami Beach.
On February 8, 2006, the Mayor and City Commission authorized the issuance of Request
for Proposals (RFP) No. 14-05/06, to obtain services of one or two firms under the "Best
Value" Procurement process, with the experience and qualifications; the ability; capability,
and capacity; and proven past successful performance in providing high quality investigative
(surveillance related) and adjusting services for selected tort liability and workers'
compensation claims.
RFP No. 14-05/06 was issued on February 23, 2006 with an opening date of March 29,
2006. A pre-proposal submission meeting to provide information to prospective firms was
held on March 7, 2006. Bid Net issued bid notices to fifty-six (56) prospective proposers, and
the Procurement Division notified an additional fourteen (14) firms resulting in six (6)
proposers requesting the RFP document, which resulted in the receipt of the following two
(2) proposals from:
· Horizon Investigations, Inc. ("Horizon")
· Johns Eastern Company, Inc.("Johns Eastern")
The City Manager via Letter to Commission (LTC) No. 091-2006, appointed an Evaluation
Committee ("the Committee") consisting of the following individuals:
- Clifton Leonard, Risk Manager, City of Miami Beach (Chair);
- Judy Weinstein, First Assistant City Attorney, City of Miami Beach;
- Saul Frances, Parking Director, City of Miami Beach;
- Chuck Garabedian, Police Captain, City of Miami Beach;
- Michael Alvarez, Public Works Assistant Director, City of Miami Beach
On June 13,2006 the initial Evaluation Committee ("the Committee) meeting convened. The
Committee was provided information on the scope of services by Clifton Leonard, Risk
Manager, City of Miami Beach, and staff from the Procurement Division.
Both firms that submitted proposals provided a presentation relative to their proposal
submittal, with a Question and Answer session following each presentation.
Commission Memorandum
RFP No. 14-04/05 - Investigative and Adjusting Services for selected Tort Liability and
Workers' Compensation Claims
Page 4
ANALYSIS (Cont.)
Additionally, the Committee discussed the following Evaluation Criteria, which was used to
evaluate and rank the Firms proposals:
A. Experience and qualifications of the Firm (20 points);
B. Experience and qualifications of the Key Personnel (20 points);
C. Risk Assessment Plan for ensuring quality of work (10 points);
D. Past Performance based on number and quality of the Performance
Evaluation Surveys (10 points)
E. Cost (40 points)
At the conclusion of the presentations and Question and Answer sessions, the Committee
voted unanimously to recommend Horizon Investigations, Inc. as the top-ranked Firm
(Primary) and Johns Eastern Company, Inc. as the second-ranked Firm (Secondary). Both
Firms were scored relatively the same in each of the above evaluation criteria except for
"Cost", whereby Horizon proposed a significantly lower cost/fee to the City for the required
scope of services.
Committee Member Horizon Investigations, Inc. Johns Eastern Company, Inc.
Clifton Leonard 100 1 70 2
Judy Weinstein 100 1 68 2
Saul Frances 93 1 75 2
Chuck Garabedian 98 1 71 2
Michael Alvarez 97 1 81 2
Horizon:
Horizon is a well established investigative company being licensed by the State of Florida as
an investigative agency since 1985. Horizon has provided their services to major insurance
companies, corporations, municipalities, and law firms. They possess a Florida Class A,
Private Investigative Agency License, and all investigators employed by Horizon possess
either a Florida Class C (Private Investigator) or Class CC (Private Investigator Intern)
license. Mr. Goldwich, President of the Firm has been licensed as an Independent All-Lines
Adjuster since 1985.
Horizon conducts an average of over 600 surveillance cases and over 300 non-surveillance
investigations per year. This equals to over 12,000 surveillance cases and over 5,000
general investigative assignments over their 21 year history. Horizon has provided these
services as the Primary Firm to the City of Miami Beach the last ten years in an outstanding
manner, at a fair and reasonable price, and all Performance Evaluation Surveys received
from Horizon clients indicate that they provide excellent services.
Commission Memorandum
RFP No. 14-04/05 - Investigative and Adjusting Services for selected Tort Liability and
Workers' Compensation Claims
Page 5
ANALYSIS (Cont.l
FEES:
Horizon has proposed an hourly billing rate of $40 for all investigative services for Workers'
Compensation and Tort Liability claims, and an hourly billing rate of $20 for all adjusting
services for Workers' Compensation and Tort Liability claims. Based on an annual estimate
of 1400 hours at $40 per hour, the estimated annual amount for investigative services is
$56,000, and 50 hours at $20 per hour, the estimated annual amount for adjusting services
is $1,000, for an estimated annual total of $57,000. These fees are subject to negotiations.
Johns Eastern:
Johns Eastern was founded in 1946. Johns Eastern provides services to the insurance
industry, large governmental and corporate entities. They provide individual claim
adjustments, full or partial investigations of all property and casualty lines throughout the
eastern seaboard. They will be providing all adjusting services from there field office located
in Miami, Florida. Johns Eastern has teamed with RSight, Inc. who will be providing the
investigative services. RSight was founded in 1999, and has grown to become one of
Florida's largest investigative firms, handling approximately 5,000 different surveillance
investigations a year. RSight possess a Florida Class A, Private Investigative Agency
License, and all investigators employed by RSight possess either a Florida Class C (Private
Investigator) or Class CC (Private Investigator Intern) license. Johns Eastern provides two
(2) employees that possess the required All-Lines Adjuster licenses.
Johns Eastern has provided these services as the Secondary Firm to the City of Miami
Beach the last ten years in an outstanding manner, at a fair and reasonable price, and all
Performance Evaluation Surveys received from Johns Eastern clients indicate that they
provide excellent services.
FEES:
Johns Eastern has proposed an hourly billing rate of $105 for all adjusting services for
Workers' Compensation and Tort Liability claims and RSight has proposed an hourly billing
rate of $61.25 for all investigative services for Workers' Compensation and Tort Liability
claims. Based on an annual estimate of 1400 hours at $61.25 per hour, the estimated
annual amount for investigative services is $85,750, and 50 hours at $105 per hour, the
estimated annual amount for adjusting services is $5,250, for an estimated annual total of
$91,000. These fees are subject to negotiations.
CONCLUSION
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida
accepting the recommendation of the City Manager pertaining the ranking of proposals
received pursuant to Request for Proposals (RFP) No. 14-04/05, for Investigative and
Adjusting Services for selected Tort Liability and Workers' Compensation Claims;
Authorizing the Administration to enter into negotiations with the top-ranked Firm of Horizon
Investigations, Inc. (Primary) and the second-ranked Firm of Johns Eastern Company, Inc.
(Secondary); and further authorize the Mayor and City Clerk to execute contract(s) upon
completion of successful negotiations.
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