FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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INSURANCE BROKER SERVICES, SPECIFICATION NO. CS-2026-733BD
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION:
Approve a Professional Consultant Services Agreement to Alliant Insurance Services, Inc., to provide Insurance Broker Services, Specification No. CS-2026-733BD, for a total amount not to exceed $180,000. The term of this Agreement will begin upon the effective date of the Notice to Proceed, with four (4) one-year renewal options.
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BACKGROUND
The Orange County Sanitation District (OC San) utilizes the services of an Insurance Broker of Record to assist with the placement and administration of insurance coverage necessary to protect OC San's assets and operations.
OC San's insurance program includes major coverages such as excess general liability, excess workers' compensation, property and flood, equipment breakdown, and earthquake insurance. The broker also assists with other insurance coverages, including cyber, crime, and watercraft insurance.
The Insurance Broker of Record assists OC San in evaluating its insurance needs, marketing its insurance program, negotiating with insurance carriers, and obtaining appropriate coverage and competitive pricing. The broker also provides ongoing insurance and risk management support throughout the term of the agreement. The broker will also support OC San in the development and implementation of its Enterprise Risk Management (ERM) program, including assistance with identifying, assessing, and managing organizational risks.
The broker surveys the insurance market to find coverage that meets OC San’s specific needs at the lowest possible premiums. This ensures OC San receives the best possible premiums and coverage. OC San does not pay the broker directly for these services; rather, the broker is paid by the individual insurance carrier through a commission. The commission is included in the premiums the insurance carrier quotes.
Alliant Insurance Services, Inc. is highly experienced with California governmental agencies, as it insures the vast majority of California counties, along with hundreds of California cities and special districts. Alliant has experience with many California sanitation districts and is currently the insurance broker for OC San. Alliant's Public Entity Property Insurance Program is considered one of the largest programs available. Alliant also provides access to workers compensation insurance provided by Public Risk Innovation, Solutions, and Management (PRISM), which includes multiple agencies and serves as a risk pool.
RELEVANT STANDARDS
• Ensure the public’s money is wisely spent
• Protect OC San assets
PROBLEM
OC San requires specialized insurance brokerage and risk management expertise to effectively market and maintain its insurance program, navigate changing insurance market conditions, and support the continued development of its ERM program. The current Insurance Broker of Record agreement is approaching expiration, requiring a new agreement to ensure continuity of these critical services.
PROPOSED SOLUTION
Approve Alliant Insurance Services, Inc. to serve as OC San's Insurance Broker of Record and provide insurance brokerage and related risk management services in accordance with the Professional Consultant Services Agreement.
TIMING CONCERNS
N/A
RAMIFICATIONS OF NOT TAKING ACTION
N/A
PRIOR COMMITTEE/BOARD ACTIONS
April 2023 - Approved a Professional Consultant Services Agreement to Alliant Insurance Services, Inc. to provide Insurance Broker of Record Services, Specification No. CS-2022-1359BD for a total amount not to exceed $150,000 for the period beginning July 1, 2023 through June 30, 2024; with four (4) one-year renewal options.
ADDITIONAL INFORMATION
A request for Proposal was issued June 29, 2026 via OpenGov. Proposals were due on July 28, 2026, and OC San received three (3) proposals valid for 180 calendar days from the proposal opening date.
Prior to receipt of proposals, an Evaluation Team was formed consisting of an OC San Project Manager/Principal Staff Analyst with support from the Director of Finance, Director of Human Resources, and a Principal Staff Analyst. The team was chaired by a Purchasing Representative as a non-voting member. On August 3, 2026, an evaluation kick-off meeting was held with the evaluation team to discuss the policies and procedures of the evaluation process and disclose the Proposers.
Individual scoring was the chosen method of evaluation for this procurement. Members of the team performed an independent review of the proposals and later met as a group with the Buyer to discuss their preliminary scores and discuss any questions/concerns.
Proposals were evaluated based on the following criteria:
|
CRITERION |
POINTS |
|
Qualifications of the Firm |
275 |
|
Staffing & Project Organization |
200 |
|
Work Plan |
200 |
|
Interviews |
175 |
|
Cost |
150 |
The evaluation team first reviewed and scored the proposals based upon the criteria listed above, other than Interviews and Cost.
|
Rank |
Proposer |
Criterion 1 (Max 275) |
Criterion 2 (Max 200) |
Criterion 3 (Max 200) |
Subtotal Score (Max 675) |
|
1 |
Arthur J. Gallagher |
241.25 |
168.75 |
177.5 |
587.5 |
|
2 |
Alliant Insurance Services, Inc. |
245 |
162.5 |
167.5 |
575 |
|
3 |
Marsh & McLenna Agency |
218.75 |
151.25 |
158.75 |
528.75 |
All three (3) firms were selected for interviews. The interviews were conducted on September 2, 2026. Following the interviews, the evaluation team ranked the firms based on interviews using the evaluation criteria and points listed above.
|
Rank |
Proposer |
Subtotal Score |
Interview (Max 175) |
Total Score without cost (Max 850) |
|
1 |
Arthur J. Gallagher |
587.5 |
151.75 |
739.25 |
|
2 |
Alliant Insurance Services, Inc. |
575 |
138 |
713 |
|
3 |
Marsh & McLenna Agency |
528.75 |
150.5 |
679.25 |
All proposals were accompanied by a sealed cost proposal. All cost proposals were opened.
|
Rank |
Proposer |
Subtotal Score without cost |
Cost (Max 150) |
Total Weighted Score (Max 1000) |
|
1 |
Alliant Insurance Services, Inc. |
713 |
150 |
863 |
|
2 |
Arthur J. Gallagher |
739.25 |
108 |
847.25 |
|
3 |
Marsh & McLenna Agency |
679.25 |
70.11 |
749.36 |
Cost Information
|
Rank |
Proposer |
ORIGINAL COST |
|
1 |
Alliant Insurance Services, Inc. |
$180,000.00 |
|
2 |
Arthur J. Gallagher |
$250,000.00 |
|
3 |
Marsh & McLenna Agency |
$385,135.00 |
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San’s Purchasing Ordinance. This item has been budgeted (FY 2026-27 and 2027-28 Budget Section 7, Page 2, Policy Premium Expense) and the budget is sufficient for the recommended action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
• Professional Consultant Services Agreement