Summary Sheet- RFCA SUMMARY
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CITY OF TEMPE Meeting Date: 1/4/2024 REQUEST FOR COUNCIL ACTION Agenda Item: 7B2 ACTION: Ratify the staff approved award of a two-year contract with eight one-year renewal options to The Segal Company (Western States) Inc., d/b/a Segal to conduct a comprehensive compensation and classification study. (Related to Agenda Item 7A2) FISCAL IMPACT: The total cost of this contract is $305,000 with an additional contingency amount of $45,000. Sufficient funds have been appropriated in the General Fund, Cost Center 1512 (Employee Services & Benefits), for anticipated expenditures during the current fiscal year and future fiscal years, contingent upon City Council approval of the City’s annual budget. RECOMMENDATION: Ratify the award. BACKGROUND INFORMATION: (24-040) The City issued a Request for Proposal (RFP) for a comprehensive compensation and classification study and to provide recommendations for job descriptions, salary structure, pay grade assignments and compensation policies. Due to the importance of this effort coupled with its long completion timeframe (12 months) staff utilized delegated authority to award this contract and is now seeking City Council approval to ratify the award. As allowed for by City Procurement Code, Lisette Camacho, Financial Services Director, has the authority to award and sign contracts exceeding one hundred thousand dollars ($100,000.00) when there are less than two (2) Council meetings scheduled in any month and the action is necessary to ensure operational efficiencies. Evaluation Process The RFP was published on the City’s Bonfire portal as well as advertised in the Arizona Capitol Times. A total of 18 vendors downloaded the RFP; six firms responded with proposals as shown below: o CPS HR Consulting o Gallagher Benefit Services, Inc. o Logic Compensation Group o MGT of America Consulting, LLC o Public Sector Personnel Consultations, Inc. o The Segal Company (Western States) Inc., d/b/a Segal The proposals were evaluated by a committee comprised of City staff from Financial Services, Human Resources, City Courts and the City Manager’s Office. The initial evaluation results are shown below: Award Criteria CPS Gallagh er Logic MGT Public Segal Fees 38 173 128 188 250 140 Method of Approach 210 150 270 240 210 270 2 The committee determined that the three highest rated firms would be moved forward in the evaluation process. Interview & Best and Final Offer Logic Compensation Group, Public Sector Personnel Consultations, Inc. and The Segal Company (Western States) Inc., d/b/a Segal were invited to interview with the evaluation committee and submit best and final offers to ensure that the most competitive offers were submitted. The interview and the best and final offers were evaluated by the committee and the final results are presented in the table below. Final Evaluation Results Award Criteria Logi c Public Segal Fees 128 250 143 Method of Approach 270 210 270 Experience of Firm 180 140 180 Qualifications and Expertise of Staff 180 150 160 Responsiveness 45 35 40 Interview 240 180 300 Score 1048 965 1093 Rank 2 3 1 In response to the best and final offers, all three firms reduced their proposed pricing to the lump sum amounts shown below: Although Public Sector, Gallagher, and MGT offered lower lump sum fees, the evaluation committee considers Segal’s proposal as the most advantageous offer representing the most comprehensive, value added study that meets the scope of the RFP. As required by policy when staff is not considering the lowest priced offer(s), Internal Audit has reviewed the evaluation process and as a result of its review, supports the award recommendation. ATTACHMENTS: Vendor Offer STAFF CONTACT(S): Rebecca Strisko, Human Resources Director, (480) 350-8423 Experience of Firm 160 100 180 140 140 180 Qualifications & Expertise of Staff 140 140 180 140 150 160 Responsiveness 43 25 45 40 35 40 Score 590 588 803 748 785 790 Rank 5 6 1 4 3 2 Pricing $1,170,500 $255,750 $346,250 $236,93 0 $177,50 0 $315,00 0 Logic Public Sector Segal $326,250 $172,500 $305,000 3 Department Director: Lisette Camacho, Financial Services Director Legal review by: Dave Park, Assistant City Attorney Prepared by: Eric Kraenzle, Procurement Officer