FROM: Robert Thompson, General Manager
Originator: Laura Maravilla, Director of Human Resources
SUBJECT:
title
CLASSIFICATION & COMPENSATION STUDIES, SPECIFICATION NO. CS-2026-734BD
end
GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve a Professional Consultant Services Agreement with Gallagher Benefit Services, Inc., to conduct Classification and Compensation Studies, Specification No. CS-2026-734BD, for a total amount not to exceed $285,000; and
B. Approve a contingency of $28,500 (10%).
body
BACKGROUND
The Orange County Sanitation District (OC San) periodically conducts comprehensive Classification and Compensation (C&C) Studies to support effective operations, sound workforce management, fiscal stewardship and labor relations. These studies help ensure that classification specifications (job descriptions) accurately reflect assigned duties and responsibilities, and remain aligned with organizational needs as operations, service delivery, technology, regulatory requirements and workforce needs evolve. The studies also provide information to evaluate internal classification relationships and ensure OC San’s compensation practices remain internally equitable and competitive within the relevant labor market.
A well-designed classification and compensation system provides a framework for informed administrative, fiscal, and human resources decisions. Accurate, current, and legally compliant job descriptions support key workforce functions including recruitment, performance management, compensation, training and development, and succession planning. Maintaining a competitive and equitable compensation program further supports OC San’s ability to attract and retain a qualified workforce necessary to meet current and future operational needs.
RELEVANT STANDARDS
• Offer competitive compensation and benefits
• Negotiate fair and equitable labor agreements
• Maintain positive employer-employee relations
• Comply with Government Codes (Fair Labor Standards Act, Americans with Disabilities Act, Equal Pay Act)
PROBLEM
OC San’s last comprehensive C&C Studies were completed in June 2022. Since that time, organizational requirements and labor market conditions have evolved, warranting a comprehensive review to ensure OC San’s C&C structure remains current, equitable and competitive within the relevant labor market.
PROPOSED SOLUTION
Approve a professional consultant services agreement with Gallagher Benefit Services, Inc., to conduct comprehensive C&C Studies.
TIMING CONCERNS
OC San’s current labor contracts will expire on June 30, 2028. Timely completion of updated C&C Studies will provide current market and classification data to support upcoming labor negotiations.
RAMIFICATIONS OF NOT TAKING ACTION
Without updated data, OC San’s ability to prepare for upcoming labor negotiations and to assess market competitiveness, internal equity and classification alignment would be impacted.
PRIOR COMMITTEE/BOARD ACTIONS
June 2022 - Received and filed the June 2022 Classification Study Final Report and Total Compensation Study Final Report.
ADDITIONAL INFORMATION
Solicitation Information:
A Request for Proposal was issued on July 6, 2026, via OpenGov. Proposals were due on July 30, 2026. OC San received six (6) responsive proposals which are valid for 180 days from the bid opening date.
Protest Information:
None.
Evaluation:
Prior to receipt of proposals, an evaluation team was formed consisting of OC San staff. The team was chaired by a Purchasing representative as a non-voting member. On August 4, 2026, the evaluation team met to discuss the policies and procedures for the evaluation process.
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 & Experience of Firm |
300 |
|
Proposed Staffing & Project Organization |
200 |
|
Work Plan |
200 |
|
Presentation/Interview |
200 |
|
Cost |
100 |
The evaluation team first reviewed and scored all six (6) proposals based upon the criteria listed above, other than cost. In accordance with procedures, only the four (4) highest ranking firms, Gallagher Benefit Services, Inc., Evergreen Solutions, MGT Impact Solutions, and Public Sector Personnel Consultants, were selected to move forward to the interview phase. The interviews were conducted on August 18 through August 20, 2026. The evaluation team scored the interviews as reflected in the table below.
|
Rank |
Proposer |
Criterion 1 (Max 300) |
Criterion 2 (Max 200) |
Criterion 3 (Max 200) |
Criterion 4 (Max 200) |
Subtotal Score (Max 900) |
|
1 |
Gallagher Benefit Services, Inc. |
286.25 |
186.25 |
187.5 |
195 |
855 |
|
2 |
Evergreen Solutions, LLC |
203.75 |
128.75 |
111.25 |
163 |
606.75 |
|
3 |
MGT Impact Solutions, LLC |
196.25 |
126.25 |
125 |
135 |
582.5 |
|
4 |
Public Sector Personnel Consultants, Inc. |
186.25 |
130 |
120 |
111 |
547.25 |
All proposals were accompanied by a sealed cost proposal. Only the cost proposals for the two (2) highest-ranked firms were opened, and one was negotiated.
|
Rank |
Proposer |
Subtotal Score (Max 900) |
Cost (Max 100) |
Total Score (Max 1,000) |
|
1 |
Gallagher Benefit Services, Inc. |
855 |
32.83 |
887.83 |
|
2 |
Evergreen Solutions |
606.75 |
100 |
706.75 |
Cost Information for Opened Proposals:
|
Rank |
Proposer |
ORIGINAL COST |
BAFO (if applicable) |
|
1 |
Gallagher Benefit Services, Inc. |
$300,000 |
$285,000 |
|
2 |
Evergreen Solutions |
$98,500 |
N/A |
Recommendation:
Based on these results, staff recommend approving the agreement with Gallagher Benefit Services, Inc. The term of this agreement will begin upon effective date of the Notice to Proceed.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with the authority levels of OC San’s Purchasing Ordinance. OC San’s FY 2026/2027 and FY 2027/28 total budget for professional services for Classification and Compensation Studies is $321,000, and the budget is sufficient for the recommended action.
|
Date of Approval |
Contract Amount |
Contingency |
|
10/28/2026 |
$285,000 |
$28,500 |
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