[Adopted 2-19-2013 by Ord. No. 13-005]
As used in this article, the following terms shall have the
meanings indicated:
Includes the purchase of insurance coverages, alternatives
to insurance such as self-insurance programs, as well as participation
in a joint self-insurance fund, risk management program or related
services provided by a contracting unit insurance group, or participation
in an insurance fund established by a local unit pursuant to N.J.S.A.
40A:10-6, or a joint insurance fund established pursuant to N.J.S.A.
40A:10-36 et seq.
Includes all services associated with procuring, evaluating
and administering insurance, including but not limited to brokerage,
risk management or administrative services, and claims processing
or administration services, including such services provided by a
contracting unit insurance group, or an insurance fund established
by a local unit pursuant to N.J.S.A. 40A:10-6, or a joint insurance
fund established pursuant to N.J.S.A. 40A:10-36 et seq.
As defined at N.J.S.A. 40A:11-2(6), services rendered or
performed by a person authorized by law to practice a recognized profession,
whose practice is regulated by law, and the performance of which services
requires knowledge of an advanced type in a field of learning acquired
by a prolonged formal course of specialized instruction and study
as distinguished from general academic instruction or apprenticeship
and training. For purposes of this article, however, professional
services shall not include professional artistic services as defined
at N.J.S.A. 40A:11-2(6). Counseling, medical and legal services shall
be excluded when following the competitive process would cause a harmful
delay. Professional services shall include financial services or insurance
services.
A.Â
Prior to entering into any contract to obtain insurance or insurance
consulting services, the Township shall secure full and open competition
among insurers, and insurance consulting service providers, for the
Township's business. The Township is hereby authorized, and directed,
to use the competitive contracting process set forth in N.J.S.A. 40A:11-4.3,
40A:11-4.4 and 40A:11-4.5 to secure such competition, except to the
extent this article requires additional measures to better ensure
maximum competition and fairness to all interested parties.
B.Â
This open competition shall provide that at least 60, but not more
than 120, days prior to the contract commencement date, the Township
shall advertise in the newspapers authorized to print legal notices
for the municipality, and in a newspaper circulated in at least five
counties in the state, and on the Township's website, a request
for proposals to provide insurance and insurance consulting services.
The notice shall advise the reader that details of the Township's
insurance requirements are available from the Municipal Clerk on request
and shall include the phone number of the Clerk.
C.Â
The request for proposals shall be designed and drafted by the Business
Administrator, or his or her designee, and shall set forth such detailed
information as may be required for all proposers to understand and
possess equal information concerning the Township's insurance
and insurance consulting services needs, including the current terms
of, and fees or premiums paid for, such coverages or services, current
coverages, loss experience and anticipated or desirable needs with
respect to the relevant coverages or services sought. All requests
for proposal information, including claims, expense and loss data,
shall be made available to all proposers in both written and electronic
format.
D.Â
Responses to the request for proposal shall be submitted to the Township
at least 30 days prior to the anticipated commencement of the contract.
E.Â
At no time during the proposal solicitation process shall any official
or employee of the Township, or any officer, employee or representative
of any provider of insurance consulting services to the Township,
convey information, including price, to any potential proposer which
could confer an unfair advantage upon that proposer over any other
potential proposer.
F.Â
A provider of insurance consulting services to the Township shall
be compensated for its services to or on behalf of the Township solely
by the Township. Compensation shall be set on a fixed fee or hourly
basis, or on such other common and readily comparable basis applicable
to all proposers and set forth in the request for proposal documents,
provided that compensation shall not be determined as a percentage
of premium costs.
G.Â
No provider of insurance or of insurance consulting services to the
Township shall pay to any insurance consulting service provider to
the Township, or to any other third party, any form of compensation,
including but not limited to commissions, fees, incentives, bonuses,
rebates or any other thing of value, in consideration of obtaining
the Township's insurance or insurance consulting business.
H.Â
No provider of insurance consulting services to the Township shall
accept any form of compensation, including but not limited to commissions,
fees, incentives, bonuses, rebates or any other thing of value, from
any provider of insurance, other insurance service provider, or any
other third party, in consideration of obtaining or servicing the
Township's insurance or insurance consulting business.
I.Â
Any person or entity proposing to provide insurance or insurance
consulting services to the Township shall certify in its proposal
that it shall neither pay nor accept any form of compensation, in
consideration of obtaining or servicing the Township's insurance
or insurance consulting business from any party other than the Township.
J.Â
Any person or entity selected to provide insurance or insurance consulting
services to the Township shall certify at least annually and prior
to any renewal of its contract, that it has not paid nor accepted
any form of compensation, in consideration of obtaining or servicing
the Township's insurance or insurance consulting business from
any party other than the Township.
K.Â
Any provider of insurance consulting service that assists the Township
in soliciting, evaluating, or selecting any provider of insurance
or other insurance consulting services to the Township shall disclose
to the Township the aggregate compensation, including but not limited
to commissions, fees, incentives, bonuses, rebates or any other thing
of value, it has received in each of the prior three years from each
provider of insurance or insurance consulting services solicited or
evaluated by the Township. Such disclosure shall be made as soon as
practicable, but in no event later than the date of the evaluation
report recommending an award by the governing body.
L.Â
The request for proposals for any insurance or insurance consulting
services for the Township shall clearly establish the compensation
restrictions and the certification and disclosure requirements established
by this article as mandatory, nonwaivable terms, the violation of
which shall be grounds for:
(1)Â
Terminating
any contract resulting therefrom; and
(2)Â
Requiring
the insurer or insurance service provider to disgorge to the public
entity any compensation, including but not limited to commissions,
fees, incentives, bonuses, rebates or any other thing of value, paid
or received in violation of this article, and a commensurate reduction
in premiums to be paid by the public entity for the affected coverage(s)
in the future.
M.Â
Whenever soliciting quotations for insurance coverage, the Business
Administrator or his or her designee shall use best efforts to obtain
at least three quotations.
A.Â
The municipality shall award all contracts or agreements for the
provision of professional services on the basis of qualification based,
competitive negotiation.
B.Â
Professional service contract requests for proposal shall be published
by the posting of a public notice at least 10 days prior to the awarding
of any contract for professional services.
C.Â
The public notice shall be:
(1)Â
Prominently posted in the public place reserved for Sunshine Law
notices;
(2)Â
Mailed, telephoned, telegrammed, or hand delivered to at least two
newspapers designated to receive such notices because they have the
greatest likelihood of informing the public within the municipality,
one of which shall be the official newspaper of the municipality;
and
(3)Â
Filed with the Clerk of the municipality.
D.Â
The public notice shall, at minimum, include:
(1)Â
A description of the professional services needed, including, where
appropriate, a description of tasks involved.
(2)Â
Threshold qualification requirements setting the highest possible,
minimum standards for qualifying to compete for the particular services
and tasks involved.
(3)Â
Notice that standardized submission requirements and selection criteria
are on file and available at a stated location in the Township.
(4)Â
Deadline and place for all submissions.
E.Â
Standardized submission requirements shall include:
(1)Â
Names and roles of the individuals who will perform the task and
a description of their experience with projects similar to the matter
being advertised.
(2)Â
References and record of success.
(3)Â
Description of ability to provide the services in a timely fashion
(including staffing, familiarity and location of key staff).
(4)Â
Cost details, including the hourly rates of each of the individuals
who will perform services and time estimates for each individual,
all expenses, and, where appropriate, total cost of "not to exceed"
amount.
F.Â
The selection criteria to be used in awarding a contract or agreement
for professional services shall include:
G.Â
All submissions shall be kept on file during the term of the related
contract, and shall be public records after the deadline for the submission
of proposals.
H.Â
In the event that compliance with part or all of the requirements
of this article is impracticable as regards a particular contract
or agreement, the Township Council may waive part or all of the requirements
by a majority vote of the full Council together with publication of
a resolution setting forth with specificity the reasons such waiver
is required.