Township of Hamilton, NJ Article III Competitive Process for Insurance, Insurance Consulting and Professional Services Contracts

[Adopted 2-19-2013 by Ord. No. 13-005]

§ 19-12 Definitions.

As used in this article, the following terms shall have the meanings indicated:

INSURANCE

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.

INSURANCE CONSULTING SERVICES

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.

PROFESSIONAL SERVICES

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.

§ 19-13 Insurance contracting procedure.

A. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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) Terminating any contract resulting therefrom; and

(2) 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. Whenever soliciting quotations for insurance coverage, the Business Administrator or his or her designee shall use best efforts to obtain at least three quotations.

§ 19-14 Professional services contracting procedure.

A. The municipality shall award all contracts or agreements for the provision of professional services on the basis of qualification based, competitive negotiation.

B. 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. The public notice shall be:

(1) Prominently posted in the public place reserved for Sunshine Law notices;

(2) 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) Filed with the Clerk of the municipality.

D. The public notice shall, at minimum, include:

(1) A description of the professional services needed, including, where appropriate, a description of tasks involved.

(2) Threshold qualification requirements setting the highest possible, minimum standards for qualifying to compete for the particular services and tasks involved.

(3) Notice that standardized submission requirements and selection criteria are on file and available at a stated location in the Township.

(4) Deadline and place for all submissions.

E. Standardized submission requirements shall include:

(1) 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) References and record of success.

(3) Description of ability to provide the services in a timely fashion (including staffing, familiarity and location of key staff).

(4) 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. The selection criteria to be used in awarding a contract or agreement for professional services shall include:

(1) Qualifications of the individuals who will perform the tasks and the amounts of their respective participation.

(2) Experience and references.

(3) Ability to perform the task in a timely fashion, including staffing and familiarity with subject matter.

(4) Cost competitiveness.

G. 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. 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.