AUMA – RFP Table of Contents

REQUEST FOR PROPOSALS

Actuarial Services

Alberta Municipal Services Corporation

May, 2010

AMSC – Actuarial Services

5/7/2010 -- 2

Contents

1 Introduction and Project Overview .................................................................................. 3

1.1 General Context ........................................................................................................ 3

1.2 AUMA ...................................................................................................................... 3

1.3 AMSC ....................................................................................................................... 4

1.4 Current Service Delivery .......................................................................................... 5

2 Service Requirements ...................................................................................................... 6

2.1 Service Delivery........................................................................................................ 6

2.2 Service Delivery – General ....................................................................................... 7

2.3 Service Delivery – Specific Response Requirements ............................................... 7

3 Selection Process ............................................................................................................. 8

3.1 General Terms ........................................................................................................... 8

3.2 General Qualifications ............................................................................................ 10

3.3 Selection Criteria .................................................................................................... 10

3.4 Interviews and Presentations................................................................................... 11

3.5 Negotiations ............................................................................................................ 11

3.6 Schedule .................................................................................................................. 11

4 Service Delivery............................................................................................................. 12

4.1 Associated Requirements ........................................................................................ 12

4.2 Specific Terms and Conditions ............................................................................... 12


5/7/2010 -- 3

1 Introduction and Project Overview

1.1 General Context

The Alberta Municipal Services Corporation (AMSC) is accepting proposals to provide actuarial

services for urban municipalities and their associates in Alberta. The deadline for submitting

qualifications and proposals is noon, May 26, 2010. AMSC retains the option to extend this

deadline if feedback from potential proponents suggests circumstances so warrant.

Please submit five copies of the completed response to this request for proposals in a sealed

envelope marked “AMSC – Actuarial Services” to:

Attention : Cheri Gooz, Administrative Assistant

HR Shared Services & Corporate

Alberta Urban Municipalities Association

300 -- 8616 51 Ave

Edmonton AB

T6E 6E6

An electronic copy using the Microsoft Office Suite is also required. Questions regarding

proposal requirements and processes should be submitted through e-mail to

[email protected]. Questions will be posted on the AUMA web site, without attribution,

along with associated answers. Questions must be e-mailed not less than five (5) calendar days

before the proposal due date. AMSC will not separately transmit responses to potential

proponents. All potential proponents must access AUMA’s internet site to find out what

questions have been asked, and the answers provided.

The purpose of this request for proposals (RFP) is to obtain a short list of proponents to be

interviewed by the AMSC, and then to select from those proponents one who will enter into

negotiations with AMSC for the provision of actuarial services.

1.2 AUMA

The Alberta Urban Municipalities Association (AUMA) mission is focused on representing the

interests of urban local governments and where required, providing services that address the

specific needs of members in their capacity as local governments operating pursuant to the

Municipal Government Act.

AUMA represents all 278 urban municipalities including: cities, towns, villages, summer

villages and specialized municipalities. The goals of AUMA are to:

mailto:[email protected]


5/7/2010 -- 4

Monitor and influence government legislation, programs and policies which impact AUMA

members;

Ensure effective, credible relations between member municipalities, the provincial

government and other organizations;

Keep members informed of significant international, national and provincial trends and issues

that affect local government; and to

Offer programs and services in response to member needs, through AMSC.

Various not-for-profit, municipally related entities may also be associate members of the AUMA

and may opt into the various services offer by AUMA through it’s wholly owned subsidiary the

Alberta Municipal Services Corporation (AMSC).

Additional information regarding AUMA can be found on its website at www.auma.ca.

Respondents are encouraged to access this site to ensure they have a current and complete

understanding of the nature and scope of AUMA interests and activities.

1.3 AMSC

AMSC is a wholly owned subsidiary of the AUMA. AMSC is the service provider to AUMA

regular and associate members. AMSC operates service programs for local governments,

including but not limited to:

Employee Group Benefits

EAP

Risk services

General insurance

MuniFunds - pooled investment funds

Retirement services

Energy aggregation

AMSC can, in its own name, make and enter into contracts, employ agents and employees,

acquire, hold, and dispose of property, and incur the debts, liabilities, and obligations necessary

to carry out its business.

Whenever practical and appropriate, AMSC provides services through outsourcing key elements

of its supply chain. This facilitates flexibility, financial protection, effective risk management,

and the ability to partner with the best service providers. AMSC recognizes this approach to

service delivery and supply chain management imposes responsibilities on the Board of

Directors, its committees and AMSC staff. These responsibilities relate to ensuring the viability

and sustainability of the services AMSC has agreed to provide. AMSC's core responsibilities in

this outsourced framework are to provide effective:


5/7/2010 -- 5

governance

contract management

marketing and communication

data protection and management

creation and management of effective internal controls and procedures, and

ongoing exploration of new business opportunities

Figure one illustrates the governance structure used by AUMA and AMSC.

Figure 1 – Governance Structure

1.4 Current Service Delivery

The objective of current actuarial services is to provide services in support of the APEX

Supplementary Pension Plan (APEX) and MuniSERP programs offered by AMSC.

APEX is the supplementary pension plan established by AMSC to supplement the

benefits earned in the Local Authorities Pension Plan on behalf of its participating regular

and associate members.

MuniSERP is a supplementary executive retirement program established by AMSC

targeted at senior management employees to provide additional benefits in excess of

CRA maximum benefit limits.

Actuarial services are currently made available through a contract with an external service

provider. The service is intended to support effective ongoing delivery of these two retirement

programs.


5/7/2010 -- 6

2 Service Requirements

2.1 Service Delivery

The service provider is expected to provide the following services. In respect of APEX

administration, respondents are asked to respond to two service delivery options.

2.1.1 APEX Plan Management and Compliance

Ongoing funding actuarial valuations.

Pension expense calculations or extrapolations consistent with the provisions of CICA

4100.

Plan interpretation, counsel related to policies and procedures.

Provide actuarial advice to the APEX Governance Board and APEX management as

requested.

Attendance at APEX Governance Board meetings as requested and engage in discussions

with auditors as required.

2.1.2 APEX Administration

AMSC requests that proponents respond to Option 1 or Option 2 or to both Option 1 and

Option 2 on APEX Administration

Option 1 (Service Provider Performs

Administrative Services)

Option 2 (AMSC Performs

Administrative Services)

Peer review of APEX administration as

requested.

Prepare termination, retirement and death

benefit calculations reflecting relevant

Alberta and CRA regulations.

Complete Marriage Breakdown calculations.

Peer review of APEX administration as

requested.

Complete Marriage Breakdown calculations.

Develop program and/or calculation

sheets to permit AMSC to prepare termination, retirement and death benefit

calculations reflecting relevant Alberta and

CRA regulations.

Prepare Member Annual Statements Develop program and/or calculation sheets

to permit AMSC to generate Member

Annual Statements


5/7/2010 -- 7

2.1.3 MuniSERP Program Management

Annual actuarial costings and actuarial reports.

Program interpretation, counsel related to policies and procedures.

Provide actuarial advice to AMSC management, as requested.

Attendance at MuniSERP employer meetings, as requested.

2.1.4 MuniSERP Administration

Termination/retirement/death benefit calculations and final benefit statement declaration.

2.2 Service Delivery – General

The needs of AUMA members are complex and evolving as the challenges facing service

delivery at the local level continue to become more diverse. The structure and delivery

strategy for pension and related services must reflect this reality.

AMSC owns and must continue to own and control use of all information created in the

program and\or used in the delivery of services, subject to processes and policies governing

accepted actuarial practice.

AMSC will work with the chosen service provider to design and implement performance

management strategies and goals supported by meaningful measures to ensure effective

customer driven service delivery and evolution. This will include development and

implementation of effective and comprehensive reporting processes using data relevant to

service delivery measurement.

AMSC will maintain overall accountability and control of all sales, communications and

marketing activities carried out in relation to services provided under the AMSC brand.

Overall sales and communications strategies, as well as the form and content of specific

initiatives and instruments, require advance approval from AMSC.

As a member driven and managed organization whose members are local governments and

related authorities subject to the Freedom of Information and Protection of Privacy Act,

AUMA operates in a fully transparent environment. Full, timely, and accurate financial

reporting and accountability are critical for all service delivery to AUMA members through

AMSC.

2.3 Service Delivery – Specific Response Requirements

2.3.1 Mandatory

Identify the key areas of expertise needed to meet the needs of these two retirement programs

as outlined in Section 2.1, and specifically identify those individuals who will be made


5/7/2010 -- 8

available to meet those needs. Specifically identify the qualifications and experience of each

individual.

Identify the critical success factors that must be addressed to ensure effective ongoing service

delivery to these two retirement programs. Indicate how each factor will be addressed.

Specifically address how conflicts of interest will be managed, to the extent any may be

perceived to exist.

Clearly indicate the economic arrangements that will support service delivery. Although

AMSC currently contemplates a time based fee for service arrangement for casual services,

and a standing offer arrangement for comprehensive services, it is also very interested in

receiving proposals for other kinds of economic arrangements that draw on the experience and

expertise of proponents, while enhancing value of services to members.

Identify the information needed to assess effectiveness of service delivery, and how that

information will be collected, synthesized, analysed, reported and acted upon.

2.3.2 Desirable

Identification of relevant experience meeting pension related actuarial and administrative

services requirements in a collective or association framework comparable to that of AMSC,

including innovative approaches to the economics of service delivery.

Identification of experience with innovative approaches to performance reporting and

management, including service delivery evolution in response to customer feedback.

3 Selection Process

3.1 General Terms

This process is a request for proposal and not a tender call. This RFP does not create

contractual or any other legal obligation on the part of AMSC. By submitting a proposal in

response to this RFP, the party submitting the proposal is acknowledging and agreeing to

same.

The intent of AMSC is to assess each of the responses submitted and determine in its sole and

unfettered discretion the relative attractiveness to AMSC of each of the proposals. Thereafter,

AMSC may enter into a negotiation phase with selected proponents. The negotiation phase

may be terminated at any time at the sole discretion of AMSC for any reason. AMSC

specifically reserves the right not to enter into negotiations with any proponent, or to negotiate

terms and conditions with a proponent that are different than otherwise contained within the

RFP or the proponent’s proposal, without the need to offer such terms and conditions to other

proponents.

AMSC retains the right to assign any contract resulting from this RFP to a new agency of

which AMSC is a member or owner.

This RFP does not obligate AMSC to award a contract to any proponent.


5/7/2010 -- 9

AMSC may, at its option, revise the schedule of events or anticipated date of award, may

request further information from any proponent, or may withdraw this RFP in part or in its

entirety. By submitting a proposal in response to this RFP, the proponent is agreeing that the

AMSC is not required to provide any reasons for any decision made by the AMSC, including

the decisions made by the AMSC in weighing the relative attractiveness of proposals or in

deciding to terminate any negotiation phase.

Proposals made by a sole owner must be signed with his/her full name with his/her address.

Proposals made by a partnership must be signed by at least one general partner who will also

sign his/her own name with the address of each partner. Proposals made by a corporation

must be signed by an officer or other individual who has the full and proper authorization to

do so. Proposals by a joint venture must be signed on behalf of each participating entity in the

manner prescribed above in accordance with its legal status.

Proponents may submit multiple proposals presenting alternative service delivery strategies

and commercial terms for satisfying the requirements of this RFP. Each proposal submitted

will be evaluated separately.

AMSC shall not be liable for any pre-contractual expenses incurred by any proponent.

Proponents shall not include any such expenses as part of the price proposed in response to

this RFP. AMSC shall be held harmless from any and all liability, claims, or expenses

incurred by or on behalf of any person, agency, company or organization responding to this

RFP. Pre-contractual expenses are defined as expenses incurred by proponents in:

preparing a proposal in response to this RFP

submitting a proposal to AMSC

oral presentation to and negotiations with AMSC on any matter related to a proposal;

and

other expenses incurred by the proponent prior to the date of award of any contract

At the closing time, all proposals become irrevocable. By submission of a proposal, the

proponent agrees that, should its proposal be selected, the proponent will enter into a contract

with AMSC.

The proponent is entitled to amend its proposal at any time before the closing time. After the

closing time, the proponent will not change the wording or content of its proposal and no

words will be added to or deleted from the proposal, including changing the intent or content

of the presentation of the proposal, unless requested by AMSC.

Proposal prices must be firm for a minimum of 90 days.

If a written contract cannot be negotiated within 20 days of notification to the proponent

initially selected, AMSC may, at its discretion, terminate negotiations with that proponent and

either negotiate a contract with the next highest qualified proponent or cancel the RFP process

and not enter into a contract with anyone regarding the RFP.

The proponent, through submission of a proposal, agrees to all terms and conditions of this

RFP.


5/7/2010 -- 10

The information contained in this RFP is supplied solely as a guideline for proponents. While

every reasonable attempt has been made to ensure its accuracy, AMSC does not guarantee or

warrant its accuracy, nor is it necessarily comprehensive.

3.2 General Qualifications

Each proponent should provide a complete outline of their experience as it relates to the

requirements of the RFP, including at least three recent references in respect of each area of

experience identified. Firms bidding as joint ventures or a prime with subcontractors must

submit this kind of information for each member of the joint venture or each subcontractor.

Each subcontractor should indicate its willingness to subcontract with the prime contractor and

may, if they so choose submit qualifications non-exclusively with multiple prime contractors.

Proponents should be able to provide certificates of insurance indicating that their organization

has commercial general liability and professional liability insurance in place.

3.3 Selection Criteria

3.3.1 General Criteria -- AMSC Policy

When selecting any service provider AMSC policy is to ensure consideration of these broad

criteria, to the extent they are relevant to the selection process.

Supplier capacity and available resources to deliver the goods and services, including any

special areas of expertise required

Supplier's past performance record on services performed for AMSC or AUMA. For

suppliers that have not previously performed services for AMSC or AUMA references

from other clients may be considered instead

In the case of any AUMA or AMSC program related goods or services the suppliers

experience with and demonstrated capacity to implement and manage state-of-the-art

customer services including the design and delivery of any necessary education programs

A demonstrated capacity to work professionally in a team based service environment

Where Value Based Selection is used, it is anticipated there will be a fixed fee, a

maximum upset amount (if the fee is based on hourly or other unit rates) or a

combination of both, for a defined scope of services

Supplier response to the Partner Governance Practices questionnaire (see Attachment to

this RPF)


5/7/2010 -- 11

3.3.2 Criteria Specific to This Request for Proposal

AMSC will give specific consideration to the following criteria in evaluating responses to this

RFP.

Experience and skills of the individuals proposed as service providers

Creativity and effectiveness of the economic model proposed, with specific attention

to cost benefit to individual participants

Demonstrated commitment to customer service

Experience in dealing with and maintaining linkages to other relevant plans such as

the Local Authorities Pension Plan

Experience with providing services in a collective or association context.

Experience in dealing with defined benefit plans, defined contribution plans and

SERPS.

3.4 Interviews and Presentations

Proponents short-listed by AMSC may be invited to participate in an interview process to be

conducted at AMSC's offices. Proponents may also be given an opportunity to discuss key

dimensions of their proposal in an oral presentation before a committee of AMSC staff, standing

committee members, and technical consultants selected by AMSC.

3.5 Negotiations

Following any interviews, one or more proponents may be invited to negotiate with AMSC for a

final determination of services and prices to be presented. AMSC reserves the right to award a

contract to any proponent without undertaking any competitive negotiation.

3.6 Schedule

May 7, 2010 - RFP released.

May 26, 2010 - Noon Mountain Time -- proposals due.

May 28, 2010 - AMSC announces a short list of proponents to be interviewed.

May 31 to June 4, 2010 - Interviews/Presentations of short-listed proponents (if necessary).

June 9, 2010 - AMSC recommends proponent(s) to enter competitive negotiations (if

necessary).

June 18, 2010 - AMSC posts Request for Decision recommending vendor to AMSC Board.

June 21, 2010 - Contract Negotiations.


5/7/2010 -- 12

4 Service Delivery

4.1 Associated Requirements

Proponents agree to support the goals, objectives and activities of AMSC and will not use

information obtained through the RFP process or a contract to approach AUMA members

directly in competition with services offered by AMSC.

AUMA, through AMSC requires that its service providers (1) agree not to compete with

AMSC in any line of service AMSC provides to its members, (2) become affiliate members of

AUMA, and (3) actively participate in and be a sponsor of the annual AUMA convention.

As agreed from time to time, service providers are expected to support, and where necessary

participate directly in, service marketing and promotion activities.

4.2 Specific Terms and Conditions

Qualifications and proposals should be printed on 8.5" x 11" white paper, with a cover page

clearly displaying: 1) Company name; and 2) Contact person's name, address, phone and fax

number, and e-mail address.

Faxed submissions will not be accepted

The proposal must be signed by the person(s) authorized to sign on behalf of the proponent or

company and binds the proponent to the statements made in the proposal.

A joint proposal submission must indicate which proponent has overall responsibility for the

proposal. If a proponent wishes to submit alternative options, each option is to be submitted as

a separate proposal.

The proponent shall not transfer responsibility to meet the obligations of the contract to a third

party without the written consent of AMSC.

The selected proponent will be permitted access to any AMSC files and reports that relate to

this RFP. Information pertaining to AMSC obtained by the selected proponent as a result of

this project is confidential and must not be disclosed without written permission of AMSC.

AMSC will be the owner of the intellectual property rights, including patent, assignment of

copyright, waiver of moral rights, trademark and industrial design in any product, business

process, and software or training program developed specifically through the contract for this

RFP. Licensing and marketing rights of the developed product, if appropriate, will be

negotiated separately.

Any contract resulting from this RFP will be governed by and will be interpreted in

accordance with the laws of the Province of Alberta.

AUMA – RFP Table of Contents

Economy & Finance

Transcript of AUMA – RFP Table of Contents