Posting Language
Title
Authorize an amendment to a contract for continued payment of insurance premiums to the Rolling Owner Controlled Insurance Program VIII for the Human Resources Department with Liberty Mutual Insurance Company, to increase the amount by $5,852,173 for a revised total contract amount not to exceed $15,877,173. Funding: $417,708 is available in the Capital Budget of various departments, funding for the remaining contract term is contingent upon available funding in future budgets.
Body
Lead Department
Financial Services Department.
Client Department(s)
Human Resources Department.
Fiscal Note
Funding is available in the Capital Budget of various departments.
Funding for the remaining contract term is contingent upon available funding in future budgets.
Purchasing Language:
Contract Amendment.
MBE/WBE:
The previous solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9C (Minority Owned and Women Owned Business Enterprise Procurement Program). For the services required for the previous solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established.
Prior Council Action:
December 12, 2022 - Council approved a contract for insurance premiums to the Rolling Owner Controlled Insurance Program VIII with Liberty Mutual Insurance Company.
For More Information:
Direct questions regarding this Recommendation for Council Action to the Financial Services Department - Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500.
Additional Backup Information:
The City implemented the first Rolling Owner Controlled Insurance Program (ROCIP) program in 1992. Under this program, the City obtains insurance coverage instead of requiring individual contractors to provide their own. This structure establishes improved contractor equity, removes insurance barriers impacting small and minority contractors, assures broad and uniform insurance protection is in place for the City, and provides construction cost reductions through the volume purchasing of insurance coverage. The ROCIP VIII is a continuation of the City’s efforts to achieve these goals.
This contract allows for payment of the primary insurance premiums for the ROCIP VIII to the selected insurance carrier. Council originally approved the ROCIP VIII with an anticipated $1 billion in construction values and 48 projects as initial candidates for inclusion in the program. The City has now identified an additional 14 projects for inclusion in the program. Projected construction values have also increased since the original estimates developed in 2022. The net result is a revised anticipated $1.8 billion in City construction values to be covered by the ROCIP VIII. This amendment will allow for payment of the increased primary insurance premiums to cover the additional projects and an additional $800 million in City construction values.