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RFP Outline.doc.doc

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RFP Outline.doc.doc

  1. 1. Request for Proposal to provide Human Resources & Benefits Consulting Services Contract #UCOP/HRB Consulting/2007 University of California Office of the President Human Resources & Benefits Proposal Due Date: May 8, 2007
  2. 2. University of California Request for Proposal: Consulting Services Table of Contents Section Subject Bidder Page Exhibits Numbe r BASE RFP A. Background 5 (Section provides information about the University) A.1 Basis for Request for Proposal (RFP)/Term of None 5 Contract A.2 Consulting Services not included in this RFP None 5 A.3 The University: Organizational Structure and Related None 6 Websites A.3.a About the University of California None 6 A.3.b Office of the President None 6 A.3.c Human Resources and Benefits Department None 6 A.3.c.i Senior Management Compensation and Policy None 7 A.3.c.ii Human Resources Policy None 7 A.3.c.iii Staff Compensation None 7 A.3.c.iv Health and Welfare Policy and Program Design None 8 A.3.c.v Retirement Policy and Planning None 8 A.3.d Statistical Information by Functional Area None 9 A.3.d.i Senior Management Compensation and Policy None 9 A.3.d.ii Human Resources Policy None 9 A.3.d.iii Staff Compensation None 10 A.3.d.iv Health and Welfare Policy and Program Design None 11 A.3.d.v Retirement Policy and Planning None 12 A.3.e. List of all URL’s in RFP; Other URL’s of Interest None 14 B. Services to be Provided 15 (Describes services the University is seeking.) B.1 For All Functional Areas 15 B.1.a General Consulting None 15 B.1.b Strategic Planning None 15 B.1.c Total Compensation Strategies, Modeling & Costing None 15 B.1.d Market Surveys, Research and Trend Analyses None 15 B.1.e Benchmarking and “Best Practices” Advice None 15 B.1.f Costing, Oversight and Reporting Models None 16 B.1.g Labor Relations Strategies and Processes None 16 B.1.h Strategic integration of UC Clinical Enterprises into UC Benefits None 16 B.1.i Financial and Actuarial Analyses None 16 B.1.j Meeting and Consultation Support None 17 B.I.j.i The Regents None 17 B.I.j.ii The Academic Senate None 17 B.I.j.iii University Management None 17 B.I.j.iv Campus, Medical Center and Laboratory Management None 17 B.I.j.v Unions None 18 B.I.j.vi Other None 18 B.1.k Vendor Oversight None 18 B.1.l Project Management None 18 B.1m Communications Strategies and Materials None 18 B.1.n Compliance Advice and “How-to” Strategies None 18 B.1.o Performance Standards – HR/B (OP and Local) and UC None 19 Vendors B.1.p Training None 19 B.1.q Systems and Operations Support None 19 B.1.r Ad Hoc Projects None 19 B.2 For Specific Functional Areas 19 B.2.a Senior Management Compensation and Policy None 19 B.2.a.i Compensation Structure Review and Adjustment None 19 B.2.a.ii Incentive Plans None 19 B.2.a.iii Salary Grading None 20 Page 1 of 97
  3. 3. University of California Request for Proposal: Consulting Services Section Subject Bidder Page Exhibits Numbe r B.2.b Human Resources Policy None 20 B.2.b.i Policy Maintenance None 20 B.2.c Staff Compensation None 20 B.2.c.i Salary surveys None 20 B.2.c.ii Compensation studies/analyses/strategies None 20 B.2.c.iii Technology and methodology None 20 B.2.d Health and Welfare Policy and Program Design 20 B.2.d.i Due Diligence None 20 B.2.d.ii Renewal and bids None 20 B.2.d.iii Medical Plan/Employer Contribution Risk Adjustment None 20 B.2.d.iv Utilization and Outcomes Measurements None 20 B.2.d.v Plan Administration None 20 B.2.e Retirement Policy and Planning 21 B.2.e.i UCRP Redesign None 21 B.2.eii Reinstated Employee/Employer Contributions None 21 B.2.e.iii Plan Administration None 21 C. Process Overview 22 (Describes the RFP process: calendar, written proposals, site visits, interviews, presentations, selection of the pool, etc.) C.1 Confidentiality of Request for Proposal None 22 C.2 Bidding Options None 22 C.3 Bidding process None 22 C.3.a Calendar of activities None 23 C.3.b Bidder Consent None 23 C.3.c Bidders’ Confidential Information/Public Records None 23 Requirements C.3.d Disqualification None 23 C.3.e Allowed Modifications to RFP/Proposals None 24 C.3.f Disallowed Modifications to Proposals None 24 C.3.g Bidder Notification/Communication/Questions None 24 C.3.h Bidders’ conference None 25 C.3.i Site Visits – Systems & Communications None 25 C.3.j Selection Process None 26 C.3.k Final Selection None 27 C.3.l Bid Inspection None 27 C.3.m Terms of Contract None 28 D. Bidder Qualifications – Required Minimums 29 (Describes minimums organizations must meet in order to submit a bid.) D.1 Organization size and experience 29 D.1a Experience and Income None 29 D.1b Organizational Background Exhibit 1 29 D.1c High Level Organization Chart Exhibit 2 30 D.1d Contractual Requirements/Certificate of Insurance 30 D.1d.i Patents None 30 D.1d.ii Copyright None 30 D.1d.iii. (1) Consultants Liability and Insurance Requirements 31 D.1d.iii. (2) Commercial Form General Liability Insurance, Business Auto, 31 Worker’s Comp, Commercial Blanket Bond Contractual Requirements Agreement Exhibit 3 33 (Signature required) Certificate of Insurance Exhibit 3a 33 D.1e Conflict of Interest/Litigation Issues Exhibits 4 34 and 5 D.2 Declination/Minimum Qualifications Form Exhibit 6 35 (Signature required) Page 2 of 97
  4. 4. University of California Request for Proposal: Consulting Services Section Subject Bidder Page Exhibits Numbe r E. Instructions for Submitting a Proposal 36 (Tells bidders how to complete a written proposal.) E.1 General Guidance/RFP Layout 36 E.2 Bidder Documents Required for a Complete Proposal 37 E.3 Presentation of Your Written Response None 37 E.3.a Respondent Cover Sheet (Signature Required) Exhibit 7 39 E.3.b Corporate Resolution/Statement of Ownership Exhibit 7a 40 E.3.c Audited Financial Statements Exhibit 8 40 E.3.d Last Five Years of Stability Ratings Exhibit 9 40 E.3.e List of Confidential information Exhibit 10 40 E.3.f Checklist of Required Proposal Exhibits None 41 E.3.g Redacted Proposal Response Exhibit 11 42 E.4 University Addresses and Contacts None 42 F. Bidding Requirements 43 (Describes mandatory University formats, bidder agreements and guarantees) F.1 For All Functional Areas 43 F.1.a Filings, Licensing, etc. None 43 F.1.b University’s Standard Consulting Contract None 43 F.1.c Project Engagement Letter Format (example provided), Written None 43 reports, Meetings and Follow-up F.1.d Invoice Format (example provided) None 46 F.1.e Consulting Account Team Staff Changes None 49 F.1.f Performance Guarantees – Consulting Services None 49 F.1.g Termination of a Contract None 49 G. Bidder Questions and Proposal Evaluation 50 Criteria (Questions for bidders; University evaluation criteria) G.1 General 51 G.1.a Areas on which you are Proposing Exhibit 12 51 Page 3 of 97
  5. 5. University of California Request for Proposal: Consulting Services Section Subject Bidder Page Exhibits Numbe r G.1.b Account Team(s)/Account Team(s) Lead Exhibits 52 13-17, 13a-17a G.1.c Required Resume Format for Account Team(s) Exhibit 18 58 G.1.d Client and Professional References Exhibit 19 60 Additional Client References Exhibit 20 65 G.1.e Research and Report Capabilities; Project Samples Exhibit 21 66 Project Sample Cover Sheet Exhibits 67 21a through 21e G.1.f Presentation and Communications skills (oral & written) None 68 G.1.g Experience with Boards of Directors, Governing Boards, Exhibit 22 69 Executive Leadership Groups G.1.h Collective Bargaining Experience Exhibit 23 71 G.1.i Medical School/Hospital/Research Institution Consulting Exhibit 24 72 Experience G.1.j Access to State and Federal Legislative Arenas/HR 72 Policy Research HR Policy/Legislative/Regulatory Updates for Exhibit 25 72 Clients Exhibit 26 72 HR Policy/Legislative/Regulatory Tracking and Research G.1.k Systems and Data Base Capabilities 73 Systems Security and Disaster Recovery Exhibit 27 74 Business Associates Agreement (example) None 77 Systems Database Structure Exhibit 28 85 Systems Reporting Exhibit 29 87 Systems Interoperability Exhibit 30 93 Systems Analytic Capability Exhibit 31 94 G.1.l Systems Subcontracting Exhibit 32 96 G.1.m Performance and Quality Standards– Consulting Services Exhibit 33 97 G.2 Specific Functional Areas 97 G.2.a Staff Compensation Salary Survey Information Exhibit 34 97 See Financial Proposal Templates File for Exhibits 35a- 35e and 36. Page 4 of 97
  6. 6. University of California Request for Proposal: Consulting Services A.Background 1. Basis for Request for Proposal (RFP)/Term of Contract Using a Request for Proposal (RFP) process, the University will create a pool of consultants to support ongoing activities and special projects required for the Office of the President Human Resources and Benefits Department. The consultants’ primary responsibility will be for policy and program design in the areas of Human Resources Policy; Health and Welfare Policy and Program Design; Retirement Policy and Planning; Senior Management Compensation and Policy; and Staff Compensation. Bidders may make proposals for all functional areas or one or more functional areas. They will be evaluated based on their ability to perform a wide range of services, including: • Strategic planning, modeling and costing of HR/Benefits program options (e.g., health plan designs, pension options, salary programs). • Human Resources policy and program assessment, design, development, implementation and evaluation. • Benchmarking, best-practices information, market and other surveys; actuarial analyses; studies, research and presentations – o Requested by The Regents, o As part of the faculty “shared governance” process, o For collective bargaining, o As part of HR/B “due diligence” oversight of programs. • State-of-the-art communications strategies and products that integrate with the University’s in-house communications. Design and support for change management processes. • Design, development and implementation of monitoring and compliance mechanisms. • Vendor management – review of financial proposals, audits of claims/other operations; support for bidding and contract renewals. Term of Contract: Contracts will be effective January 1, 2008. The maximum initial contract period will be for up to five years, with options for one two-year extension and a subsequent one-year extension. The specific length of contract may vary by successful candidate. Preference will be given to organizations with significant, successful experience with public employers, higher education employers, research institutions, collectively bargained groups and/or medical school or hospital environments. 2. Consulting Services Not Included in this RFP Currently, the Segal Company provides pension plan actuarial analyses to The Regents and the Office of the President for the University’s pension plan. Additionally, Mercer Human Resource Consulting is conducting a survey and redesign of the University’s human resources policy framework, beginning with Senior Management policy. Finally, an RFP for a staff compensation market survey tool is being issued concurrently with this RFP. These specific services are not part of this RFP process. 3. The University: Organizational Structure and Related Websites a. About the University of California The University of California (UC) is a public, state-supported land grant institution with a mission to teach and conduct research in a wide range of disciplines and to provide Page 5 of 97
  7. 7. University of California Request for Proposal: Consulting Services public services. UC includes ten campuses, five medical centers, one national DOE laboratory and many facilities throughout the state, including Cooperative Extension, which is located in every county of California. The University also has a partnership for joint management of the national DOE Laboratory in Los Alamos, and will have a similar arrangement for Livermore if the UC partnership wins the bid competition to manage the laboratory. The UC community includes more than 192,000 students, 180,000 faculty and staff, and 50,000 retirees. Information about the University of California community is available through its website http:/www.universityofcalifornia.edu. b. Office of the President (including Human Resources and Benefits or HR/B) The University of California Office of the President (UCOP) has the following divisions:  Academic Affairs  Agriculture and Natural Resources  Budget Office  Business*  Clinical Services  Health Affairs  Laboratory Management  University Affairs (*Note: currently undergoing restructuring with an Executive Vice President – Business Operations and an Executive Vice President- Chief Financial Officer heading separate functions.) http://ucop.edu/services/opdivisions.html c. Human Resources and Benefits Department The Division of Business and Finance* is responsible for the policy development and oversight of the University’s financial systems, controller, internal audit, business functions, technology transfer, information technology, facilities administration, human resources and benefits programs. The department of Human Resources and Benefits (HR/B) reports into the Business and Finance Division ( and will report to Business Operations under the new structure) and is responsible for systemwide human resources and benefits strategy and planning, policy and program design, labor relations, client services, and design and administration of the University’s retirement plans. UC Human Resources provides leadership to build and sustain a diverse faculty and staff to best support the University of California’s mission of teaching, research and public service. The HR/B strategic plan is available at: http://www.ucop.edu/humres/ Following are general descriptions of the areas within HR/B for which consulting services are being sought: i) Senior Management Compensation and Policy The Senior Management Compensation and Policy office develops programs that allow UC to recruit and retain highly qualified senior managers. This office develops and administers senior management human resources programs as well as related systemwide compensation policy and practices. Members of this unit are consultants to the President, Senior Vice Presidents, the Associate Vice President for Human Resources and Benefits, Chancellors, Laboratory Directors, Medical Center Directors and various senior management advisory committees. Page 6 of 97
  8. 8. University of California Request for Proposal: Consulting Services Current projects include reviewing job grading methodology for the Senior Leadership group (total of approximately 1000 individuals); updating scope charts, market data analysis and grading recommendations for Senior Leadership jobs; developing a market-based incentive program for selected groups; conducting the annual total compensation survey for The Regents on selected Senior Leadership positions. ii) Human Resources Policy The Human Resources Policy office works proactively in close collaboration with locations to develop policy initiatives that value employees, comply with federal and state legislation and are accessible, and easy to understand. This unit develops and issues systemwide policies, provides a platform for policy review, researches and proposes new policy and/or policy revisions and is a resource to locations for policy advice. It also does market surveys and benchmarking based on data from comparator institutions, as well as supporting models for assessing and monitoring policy compliance and effectiveness. It provides advice and strategies in a decentralized environment. The unit is currently developing, in partnership with the National Academy of Public Administration (NAPA) a Certified Assessment of HR Systems (CAHRS) that will require rigorous self-assessment measured against defined Human Resources standards and peer review to improve efficiency and effectiveness in HR operations. The unit also is part of a current Regental initiative to create a new policy framework. iii) Staff Compensation The Compensation Policy office provides systemwide direction and support for all staff compensation programs, promoting a well-designed, cost-effective, market-based program that allows UC to recruit and retain excellent employees. The members of this unit are consultants to locations and University management. It provides input to total compensation issues, supports the collective bargaining process, supports data collection by various Federal and State agencies and provides advice and strategies in a decentralized environment. It conducts salary and salary structure market surveys, designs and models salary proposals made by management and/or unions; provides recommendations for salary actions consistent with Regental policy, equity and budgetary limits; does classification and salary analyses with change recommendations; does analyses to test for systemic disparities; maintains job title and classification management systems and recommends improvements. The unit provides extensive compensation support to Labor Relations on salaries of systemwide and location bargaining unit employees. In addition, it coordinates with the Office of Academic Advancement on specific projects. The unit also assures accountability of UC salary programs by collecting reports on salary expenditures from the locations. The Regents have taken a direct interest in total compensation for all UC employees, actively involving themselves in updating and enhancing compensation policies and practices at the University. Recommendations arising from this process have been largely implemented. Current projects include implementing The Regents market-based compensation philosophy, exploring a model for OFCCP analysis of salary disparities, enhancing operational systems, and exploring a market-pricing tool for use at each of the locations. The unit also supports a “total compensation” market valuation of all aspects of UC’s compensation. More information about the University’s compensation programs may be found at: http://www.universityofcalifornia.edu/news/compensation/ iv) Health and Welfare Policy and Program Design The Health and Welfare Policy and Program unit mission is to develop and maintain Page 7 of 97
  9. 9. University of California Request for Proposal: Consulting Services systemwide, state-of-the-art, tax-effective, cost-effective and competitive plans that are valued by faculty, staff and retirees and comply with Federal and State laws and University policies. The unit is responsible for strategic direction, planning, policy and product development, and oversight for the University of California health and welfare plans offered to faculty, staff and management employees, plus retirees. Programs include a full range of medical plan options, dental, vision, life, disability, accident, legal and flexible spending accounts. The following website provides more information on these programs: http://atyourservice.ucop.edu/employees/health_welfare/index.html The unit serves as a resource regarding healthcare policy questions, Health and Welfare plan provision interpretations, Federal employee benefits law and the Internal Revenue Code. Current Issues and Projects: This unit is conducting a major bid for all systemwide medical plans and will begin the annual renewal process in the spring. GASB accounting for retiree health coverage and strategies for redesign and funding the benefit are major projects, along with benefits transition activity for two DOE Laboratories. Ongoing work includes vendor oversight and accounting, University management and stakeholder support, “wellness” activities, statistical reporting, FAS 106 reporting for the University Medical Centers, total compensation studies and employer contribution strategies. v) Retirement Policy and Planning The Retirement Policy and Planning unit mission is to develop and maintain systemwide, state-of-the-art, cost-effective and competitive retirement plans that are valued by faculty and staff and comply with Federal and State laws and University policies. The unit is responsible for strategic direction, planning, policy and product development, and oversight for the University of California Retirement System (UCRS), which includes a defined benefit plan (UCRP), a 415(m) restoration plan and three defined contribution plans—a 401(a) plan, a 403(b) plan and a 457(b) plan. The following website provides more information on these programs: http://atyourservice.ucop.edu/employees/retirement savings/index.html For background on the issues facing UC’s retirement plan, see: http://www.universityofcalifornia.edu/news/ucrpfuture/welcome.html The unit serves as a resource regarding retirement policy questions, retirement plan provision interpretations, Federal pension law and the Internal Revenue Code. Current major projects include planning for the reinstatement of contributions to the defined benefit plan after a 16-year suspension; developing plan designs as future alternatives to the current defined benefit plan; transitioning retirement benefits for former UC employees at the Los Alamos National Laboratory from UCRP to the new management contractor, Los Alamos National Security, LLC; and preparing to transition retirement benefits for current UC employees at the Lawrence Livermore National Laboratory once the new management contractor is selected. These functional areas support the University’s shared governance with faculty, collective bargaining and complex consultation processes with stakeholders and advisory groups (see Section B.1.j, p. 17). A key difference between the Human Resources Policy and Staff Compensation areas compared to the Benefits areas is the degree of centralization. For Human Resources Policy and Staff Compensation, the Office of the President sets a policy framework and Page 8 of 97
  10. 10. University of California Request for Proposal: Consulting Services guidelines while implementation and site-specific interpretation occurs at each campus, medical center or laboratory. The Benefits policies and programs are much more centralized and locations do not have authority to create local variations or implementing guidelines. d. Statistical Information by Functional Area i) Senior Management Compensation and Policy Office of the President, Campuses, and Medical Centers have: 32 Officers and other named positions 318 Senior Managers 1,000 individuals in Senior Leadership positions ii) Human Resources Policy – there are 40 staff personnel policies covering approximately 67,000 non-represented employees. In addition, the unit maintains Presidential and Regental policies, some of which cover both staff and academic employees. iii) Staff Compensation • $7.8 B – annual academic and staff payroll at campuses and medical centers • $4.8 billion - annual staff payroll at campuses and medical centers (Approximately 60% of combined academic and staff payroll.) • 53,000 - represented staff employees in 12 unions • 67,000 - non-represented staff employees Page 9 of 97
  11. 11. University of California Request for Proposal: Consulting Services Statistical Information by functional area (cont) iv) Health and Welfare Policy and Program Design Health and Welfare Program – Enrollment and Cost October 2006 Campuses and Medical Centers Plan Enrollment Annual UC Annual Composite (1000’s) Premium Cost UC Annual (millions) (millions) Cost (dollars) Medical Systemwide 137.3 $879.1 $697.7 $5,810 Active 105.3 $729.5 $640.2 $6,082 Retired 32.0 $149.6 $157.5 $4,916 Dental Systemwide 136.7 $106.7 $106.7 $780 Active 104.1 $ 86.2 $ 86.2 $827 Retired 32.6 $ 20.5 $ 20.5 $629 Vision 104.3 $16.9 $16.9 $162 UC paid Life Basic 108.6 $6.3 $6.3 $58 Core 3.9 $0.2 $0.2 $ 6 UC Paid 107.3 $7.9 $7.9 $74 Temporary Disability Accident 55.2 $3.1 None None Legal None None Systemwide 43.3 $5.4 Active 37.0 $4.6 Retired 6.3 $0.8 EE paid Life None None Employee 61.6 $1.4 Dependents 32.9 $0.5 EE paid Disability 82.6 $24.0 None None Flexible Spending Annual Est. None None based on YTD Dependent Care 3.0 $13.5 Medical 11.2 $19.2 Page 10 of 97
  12. 12. University of California Request for Proposal: Consulting Services Statistical Information by functional area (cont) i) Retirement Policy and Planning UNIVERSITY OF CALIFORNIA HUMAN RESOURCES/BENEFITS UNIVERSITY OF CALIFORNIA RETIREMENT SYSTEM SUMMARY OF PLAN DATA UNIVERSITY OF CALIFORNIA RETIREMENT PLAN (UCRP) UCRP was established in 1961 Membership as of June 30: 2006 2005 Financial Highlights: 2006 2005 Active Members: Plan Assets as of June 30 (in billions): With Social Security 117,917 118,756 Market Value of Assets (MVA) $43.4 $41.9 Without Social Security 3,941 5,419 Actuarial Value of Assets (AVA) $42.0 $41.1 Safety 425 418 Rate of Return for Plan Year Ending June 30: Tier Two 34 49 Market Value 7.2% 10.3% [1] Total Active Members 122,317 124,642 Actuarial Value 5.9% 2.7% Vested 69,478 71,367 Actuarial Valuation Results as of July 1 ($ in billions)[1]: Non-Vested 52,839 53,275 Covered Gross Payroll $8.3 $8.1 Active Member Profile: Actuarial Accrued Liability (AAL) $40.3 $37.3 Average Age 44.2 44.2 Funded Ratio (AVA/AAL) 104.1% 110.3% Average Service Credit 9.3 9.4 Normal Cost $1.3 $1.3 Avg. Covered Comp. as of July 1 (FTE) $67,521 $65,384 Normal Cost as a percent of Payroll 15.81% 15.34% Inactive Vested Members 25,570 22,671 Actuarial Assumptions for July 1, 2006 Valuation: Terminated, non-vested [2] 26,978 24,452 Investment Return 7.50%/yr 7.50%/yr Benefit Recipients: Annual Rate of Increase: Retired Members 37,289 33,590 -inflation component [3] 2.0%/yr 2.0%/yr Survivors and QDRO Alternate Payees 5,884 5,662 - merit and promotion component 0.9%-2.5%/yr 0.9%-2.5%/yr Disabled Members 2,269 2,225 - total increase (average) 3.4%/yr 3.4%/yr Deaths during last 12 months 1,686 1,774 CPI increases 4.0%/yr 4.0%/yr Total Benefit Recipients 45,442 41,477 Mortality Table 1994 Group Annuity Reserving Total Benefit Payments (in millions) $1,175.8 $1,051.5 - for males Male Table set back two years Retired Member Profile: - for females Female Table set back one year Average Age 69.3 69.7 Social Security Information (Calendar Year) 2007 2006 Average Service Credit at Retirement 20.2 20.2 Wage Base (OASDI) $97,500 $94,200 Average Age at Retirement: 59.6 59.6 Wage Base (Medicare) No Limit No Limit Average Monthly Retirement Income $2,562 $2,365 Payroll Tax Rates: Total Membership 220,307 213,242 OASDI 6.20% 6.20% Lump Sum Cashout (LSC) Payments: 2005-2006 2004-2005 Medicare 1.45% 1.45% Members 746 715 Total Payroll Tax 7.65% 7.65% QDROs 67 70 Maximum OASDI Tax $6,045 $5,840 Total LSCs Elected 813 785 Max Mo. Benefit @ Full Retirement [4] $2,116 $2,053 Total LSC Payout (in millions) $191.3 $167.2 Source: Social Security Administration Fact Sheet LSC Take Rate 21.9% 20.9% Capital Accumulation Provision (CAP): July 1, 2006 July 1, 2005 Statutory Limits (Calendar Year) 2007 2006 Total Account Balance (in millions) $1,258.3 $1,232.6 415(b) Defined Benefit Limit $180,000 $175,000 Number of Accounts 170,601 178,337 401(a)(17) Maximum Recognizable Average CAP balance $7,376 $6,912 Compensation (effective July 1) Noncontributory Accounts (Plan 02): July 1, 2006 July 1, 2005 for Members active 07/01/1994 and after $225,000 $220,000 Total Account Balance (in millions) $43.4 $49.0 for Members active prior to 07/01/1994 $325,000 $335,000 Number of Accounts 1,489 1,790 Average Noncontributory balance $29,148 $27,402 UCRP Membership Statistics UCRP Membership Statistics 140,000 as of as of June 30, 2006 June 30, 2006 120,000 Retirees and Survivors 45,442 (24%) 1.9% 100,000 80,000 60,000 Inactive Vested Members 25,570 (13%) Active Members 40,000 9.6% 122,317 (63%) 12.8% 20,000 Total membership as of 6/30/06 was 193,329[5] an increase of 2.40% 0 from 6/30/05. Active Members Inactive Vested Members Retirees and Survivors 2005 124,642 22,671 41,477 2006 122,317 25,570 45,442 [1] Includes 6,532 members who transferred to the LANS defined benefit plan. [2] Includes those only eligible for a refund of Plan Accumulations and/or a CAP distribution. 60,000 40,000 20,000 0 [3] Inflation assumption is lowered from 4% to 2% to reflect assumed salary increases being 2% lower from July 1, 2005 to June 30, 2007. [4] For retirees born in 1941, Full Retirement Age is age 65 and 8 months; for retirees born in 1942, Full Retirement Age is age 65 and 10 months. [5] This figure does not include the 26,978 terminated, non-vesteds. Defined Contribution Plan Member Statistics as of June 30, 2004 Page 11 of 97
  13. 13. University of California Request for Proposal: Consulting Services Statistical Information by functional area – Retirement Policy and Planning (cont) UNIVERSITY OF CALIFORNIA HUMAN RESOURCES/BENEFITS UNIVERSITY OF CALIFORNIA RETIREMENT SYSTEM RETIREMENT SAVINGS PROGRAM - SUMMARY OF PLAN DATA Data as of June 30, 2006, unless otherwise noted UC RETIREMENT SAVINGS PROGRAM - TOTAL ASSETS UC Core Funds $9,452,326,000 Fidelity Funds $2,932,196,000 Calvert Funds $42,845,000 BrokerageLink $4,839,000 Grand Total $12,432,206,000 UNIVERSITY OF CALIFORNIA DEFINED CONTRIBUTION PLAN (DC Plan) The DC Plan was established in 1966 and has two types of accounts: (1) Pretax Accounts housing non-elective contributions from UCRP Members, additional non-elective contributions from UCRP academic appointees with Summer or Equivalent Term salary, and non-elective Safe Harbor contributions from temporary employees; and (2) After-Tax Accounts housing elective contributions and rollovers from other qualified plans. DC Plan Participants as of June 30: 2006 2005 Active Pretax: DC PLAN ASSET ALLOCATIONS BY FUND TYPE UC Redirect 114,395 110,073 UC Safe Harbor 27,390 22,211 Money Market [1] Total Active Pretax 141,785 132,284 Mid/Large Cap Stock Total Active After-tax 2,691 2,260 Total Inactive (Pretax and After-tax) 193,004 291,269 Fixed Income 2700 2700 Other [2] Statutory Limits (Calendar Year) 2007 2006 415(c) Maximum Annual Addition $45,000 $44,000 Top Holdings Amount % of TOTAL Accumulations Pretax and After-tax: BALANCE % of TOTAL UC Savings Fund $1,469,702,851 49% FUND TYPE UC Equity Fund $610,100,430 20% Money Market [1] $1,496,486,923 50% UC Balanced Growth $186,958,655 6% Mid/Large Cap Stock $1,153,694,828 38% UC Insurance Company Contract (ICC) Fund $130,459,753 4% Fixed Income $258,964,543 9% UC Bond Fund $92,318,352 3% Other [2] $101,729,890 3% TOTAL $3,010,876,184 100% UNIVERSITY OF CALIFORNIA TAX-DEFERRED 403(b) PLAN (403(b) Plan) The 403(b) Plan was established in 1969 and houses elective pretax contributions and rollovers from other qualified plans. 403(b) PLAN ASSET ALLOCATIONS BY FUND TYPE 403(b) Plan Participants as of June 30: 2006 2005 Active 61,673 52,078 Mid/Large Cap Stock Inactive 46,052 50,926 Money Market [1] Average Monthly Contribution $641 $548 Fixed Income Loan Program: 2006 2005 Outstanding Loans 10,917 10,289 Other [2] Outstanding Loan Principal (in millions) $81.8 $70.6 Statutory Limits (Calendar Year) 2007 2006 403(b) Elective Deferral Limit: [3] $15,500 / $20,500 $15,000 / $20,000 Accumulations: BALANCE % of TOTAL Top Holdings Amount % of TOTAL FUND TYPE UC Equity Fund $2,848,860,873 31% Mid/Large Cap Stock $5,412,971,257 59% UC Savings Fund $1,632,614,858 18% Money Market [1] $1,786,077,641 19% UC Balanced Growth $771,892,289 8% Fixed Income $1,449,009,229 16% UC Bond Fund $647,598,519 7% Other [2] $525,837,699 6% UC Insurance Company Contract (ICC) Fund $627,807,961 7% TOTAL $9,173,895,826 100% UNIVERSITY OF CALIFORNIA DEFERRED COMPENSATION 457(b) PLAN (457 Plan) The 457 Plan was established in 2004 and houses elective pretax contributions and rollovers from other qualified plans. 457 Plan Participants as of June 30: 2006 2005 457(B) PLAN ASSET ALLOCATIONS BY FUND TYPE Active 8,663 7,595 Inactive 1,234 618 Mid/Large Cap Stock Average Monthly Contribution $1,066 $1,422 Fixed Income Statutory Limits (Calendar Year) 2007 2006 Money Market [1] 457(b) Elective Deferral Limit: [3] $15,500 / $20,500 $15,000 / $20,000 Other [2] Top Holdings Amount % of TOTAL UC Equity Fund $65,413,448 26% UC Balanced Growth $49,420,572 20% UC Savings Fund $37,962,726 15% UC Insurance Company Contract (ICC) Fund $23,434,669 9% Accumulations: BALANCE % of TOTAL UC Bond Fund $14,631,778 6% FUND TYPE Mid/Large Cap Stock $143,442,725 58% Fixed Income $47,854,860 19% Money Market [1] $39,777,402 16% Other [2] $16,358,858 7% TOTAL $247,433,845 100% [1] The Money Market category includes the U C Savings Fund; Fidelity Retirement Money Market; Fidelity Cash Reserve; Fidelity Retirement Gov Money Market; Fidelity Select Money Market; Fidelity U.S. Gov Reserves; Fidelity Money Market Fund; Calvert Social Investment Money Market Fund; Fidelity U.S. Treasury Money Market Fund; Fidelity Gov Money Market Fund [2] Investments in the "Other" category include international stock funds, small cap stock funds and mutual funds purchased through the Fidelity BrokerageLinkØ or Brokerage Option. [3] The 403(b) and 457 Elective Deferral Limits for 2007: $15,500 (under age 50 as of 12/31/07), or $20,500 (age 50 and over as of 12/31/07); for 2006: $15,000 (under age 50 as of 12/31/06), or $20,000 (age 50 and over as of 12/31/06). Page 12 of 97
  14. 14. University of California Request for Proposal: Consulting Services b. List of all URL’s in RFP; Other URL’s of Interest: URL Area www.universityofcalifornia.edu. University home Page http://www.universityofcalifornia.edu/regents/welcome.html The Regents http://ucop.edu/services/opdivisions.html Office of the President http://www.universityofcalifornia.edu/senate/welcome.html Academic Senate http://www.ucop.edu/ucophome/coordrev/images/pdf/opchart.pdf President’s organization chart http://www.ucop.edu/humres/ Human Resources and Benefits Department HR/B Strategic Plan http://www.ucop.edu/humres/hrreorg/orgcharts.html Organization Charts for HR/B Functional areas (Section A.3.c) http://atyourservice.ucop.edu/ UC’s Employee Benefits self-service website http://atyourservice.ucop.edu/employees/health_welfare/index.html Information on UC’s Health & Welfare plans http://atyourservice.ucop.edu/employees/retirement_savings/index.html Retirement & Savings Plans http://www.universityofcalifornia.edu/news/ucrpfuture/welcome.html Future of UC’s Retirement Plan http://atyourservice.ucop.edu/employees/policies_employee_labor_relations/personnel_policies/index.html Employee and Labor Relations http://atyourservice.ucop.edu/employees/policies_employee_labor_relations/background/index.html HEERA definition http://atyourservice.ucop.edu/employees/total_comp/index.html Total Compensation http://www.universityofcalifornia.edu/news/compensation/ UC Compensation Programs http://atyourservice.ucop.edu/employees/policies_employee_labor_relations/compensation.html More Compensation information http://www.cpec.ca.gov/ California Post-Secondary Education Commission B.Services to be Provided: 1. For all Functional Areas a. General Consulting Provide general consulting and actuarial analyses in an advisory and review capacity to the University, on a regular basis. The consultant will be expected to attend meetings and present findings and recommendations as required on a variety of issues related to Human Resources and Benefits policy and programs. Examples might include policy review and development, maintenance of policies within a defined framework, market-based salary studies, defined contribution pension plan options, direct provider contracting, fund reserve requirements, legislative and regulatory environment scans, data collection and analysis, alternatives for plan administration or benchmarking current human resources policies. Written analyses, reports, and studies also may be required. b. Strategic Planning Consultants will support and make recommendations for the University’s strategic planning in such areas as total compensation framework and implementation, performance standards and monitoring HR/B policy compliance, funding Page 13 of 97
  15. 15. University of California Request for Proposal: Consulting Services retiree health programs, coordination between benefits strategies and the University’s Clinical Enterprises (medical schools, faculty practice plans and hospitals). Consultants may also be asked to develop strategies to effectively manage change and communication processes to support revisions in UC policies and procedures, including plans for administrative implementation, change management materials, and mechanisms for monitoring and compliance. c. Total Compensation Strategies, Modeling & Costing Consultants may be asked to develop competitive alternative designs for compensation and benefit plan policies and procedures for consideration by the administration and The Regents. Plans would include appropriate modeling and costing to differentiate and explain options. d. Market Surveys, Research and Trend Analyses Consultants will be asked to do market surveys in the various functional areas, as well as develop a body of information on trends in these areas. Comparison institutions for this work will include private, public and higher education sectors, as well as research institutions, government and major large employers. On the basis of these studies, consultants should be able to make recommendations and present alternatives tailored to the University environment. The results of studies may be presented in oral and/or written format and should be accompanied by persuasive visuals, with clearly understandable and defensible methodology. e. Benchmarking & “Best Practices” Advice This is a critical needs area as the University considers new options, directions and strategies for its HR/B programs and policies. Consultants must develop methodologies and conduct research to determine “best practices” of key comparators, e.g., higher education, research institutions, major public and private employers, hospitals, medical centers. Benchmarks for HR practices, including assessment, design, development, implementation and evaluation will be critical. Consultants also must be able to analyze and apply research results to the University’s specific issues and create viable alternatives for action. Consultants must support work with the California Post-Secondary Education Committee (CPEC) and be able to develop acceptable methodologies for faculty benchmarking studies. Consultants should be prepared to specifically address their experience in dealing with the comparator institutions used by CPEC for purposes of evaluating University academic compensation (refer to page 73 for the list of comparison institutions). The results of studies may be presented in oral and/or written format and should be accompanied by persuasive visuals, with clearly understandable and defensible methodology. Page 14 of 97
  16. 16. University of California Request for Proposal: Consulting Services f. Costing, Oversight and Reporting Models Consultants will be asked to develop and implement a costing methodology that works within the University environment and will support both University management needs and the collective bargaining process. Consultants also may be asked to develop oversight and reporting models for campus programs and activities that include templates and standardized methodology, plus support performance metrics. g. Labor Relations Strategies and Processes Consultants must be able to develop alternatives for labor relations strategies in the context of HEERA and the University’s specific environment. Strategies will include administrative and implementation processes, as well as communications and change management processes. Consultants also will need to develop and provide presentations to union leaders and members, as well as testify on behalf of the University in fact finding proceedings. The website for a definition of HEERA is: http://atyourservice.ucop.edu/employees/policies_employee_labor_relations/background/index. html h. Strategic Integration of UC Clinical Enterprises into UC Benefits Clinical Enterprises supports the University missions of teaching, research and patient care – creating the need for patient volume and variety, as well as revenue. HR/B must provide competitive, cost-effective programs that meet the University community’s needs. Quality care and access to University health care providers are identified among those needs. Consultants will be asked to develop strategies and options to address these sometimes competing demands. i. Financial and Actuarial Analyses Consultants will be asked for sophisticated analyses to support planning and/or compliance activities. Examples include GASB retiree health reports, FAS106 valuations for the medical centers, funding requirements for benefits plans, total compensation alternatives as mentioned, above, the impact of various legislative or other mandated changes, etc. Consultants will be expected to provide advice on “state-of-the-art” processes and requirements, along with practical support and recommendations. j. Meeting and Consultation Support Meetings and consultation are a major part of the activity for the functional areas covered by this RFP and consultants play a key role in developing strategies and presentation materials. Because management and faculty share governance of the University, faculty groups are consulted extensively during the formulation and implementation of policy and programs. In general, wide consultation is an ongoing process in Human Resources and Benefits initiatives. In addition, consultants must be experienced in working with top leadership such as Boards of Directors, Governing Page 15 of 97
  17. 17. University of California Request for Proposal: Consulting Services Boards, Executive Leadership Groups, etc. Major audiences are: i) The Regents – The University of California is governed by The Regents, a 26-member board, as established under Article IX, Section 9 of the California Constitution. The board appoints the President of the University and the principal officers of The Regents: the General Counsel, the Treasurer, and the Secretary. The website for more information is: http://www.universityofcalifornia.edu/regents/welcome.html. ii) The Academic Senate is the representative body of the University faculty. Empowered by The Regents to exercise direct control over academic matters, the faculty's systemwide chair and vice chair serve as non- voting representatives on the Board of Regents. For more than a century, shared governance between the Board of Regents, the systemwide president and the faculty has ensured the highest standards of excellence in fulfilling the University of California's mission of teaching, research and public service. The Senate has various standing faculty committees and task forces and HR/B consults with the Faculty Welfare Committee and its task forces on retirement and health care on an ongoing basis. The Academic Senate website is: http://www.universityofcalifornia.edu/senate/welcome.html . iii) University Management at the office of the President includes the President and the various executives reporting to him. The website for this organization chart is: http://www.ucop.edu/ucophome/coordrev/ images/pdf/opchart.pdf More information can be found on the University’s home page: http://www.universityofcalifornia.edu/ . iv) Campus, Medical Center and Laboratory Management includes Chancellors, the Lawrence Berkeley Laboratory Director, Provosts, Medical Center Directors, Vice-Chancellors, Budget Officers, Chief Human Resources Officers and others. More information can be found on the University’s home page listed in iii, above. v) Unions – the University has twelve systemwide unions and a number of local unions that represent members according to California’s legislation for public employees (HEERA). These groups include faculty plus service, clerical, hospital, technical, safety, research and skilled crafts units. Page 16 of 97
  18. 18. University of California Request for Proposal: Consulting Services vi) Other – Stakeholders and advisory Groups include, but are not limited to University staff retirees, emeriti and their associations, the Staff Assembly, the UCRS Advisory Board, the Compensation and Benefits Strategy Task Force. Federal and State government and educational groups, such as CPEC, also are important to the consultation process. k. Vendor Oversight Along with policy responsibility, UC’s HR/B Department operates major benefits programs that involve contracts with outside vendors (medical, dental, disability, TPA for employee savings programs, etc.) Consultants will be asked to provide “state-of-the-art” advice in the following areas, as well as support for “due diligence” activities. • Assessment and redesign of operations processes • Implementation of new programs and processes • Performance guarantee negotiation, oversight and compliance • Contract management l. Project Management Project management oversight is often required for HR/B Policy and Program initiatives. The consultant will work closely with various groups during the University consultation process, including any internal workgroups appointed by the President or by HR/B functional areas described in the RFP. The consultant may be asked to use a systematic method to coordinate with, keep track of and report on the efforts of the various groups. The same activities may be required for change management or implementation processes. Consultants must be able to work effectively with other consulting organizations and with the University’s various vendors. m. Communications Strategies and Materials Communication skills are a critical need for bidders chosen to serve the University. Account team members must be able to interact with a wide variety of individuals and levels within the University community. They should be able to translate complex issues and technical information into user-friendly, persuasive oral and written presentations that are built around themes. Access to and skilled use of multiple media, graphics and visuals are important tools for successful bidders. In other words, they must be able “to tell a story” effectively. Having multi-lingual capability is a plus. n. Compliance Advice and “How-to” Strategies Compliance is an important part of any HR/B strategy or program and consultants will be expected to understand the relevant legal and regulatory requirements and issues, particularly in a University environment. The University requires consulting expertise in developing alternatives with assessment of their legal and regulatory parameters and options. o. Performance Standards – HR/B (OP & Local) and UC vendors Consulting expertise is needed in strategizing, developing and implementing performance standards for HR/B programs at the Office of the President (OP) and the location level that are consistent with the Certified Assessment of HR Systems Page 17 of 97
  19. 19. University of California Request for Proposal: Consulting Services (CAHRS) standards. OP metrics should cover processing time for initiatives, effectiveness in meeting project goals and timelines and general satisfaction with HR/B’s strategies, support and workforce analyses. Local evaluations should cover quality assurance activities and results – developing tools to identify frequency and breadth of evaluations; actual performance; trending of client data to measure satisfaction and program effectiveness over time; feedback mechanisms. Part of this effort should include cost/benefit analyses for the measured programs. Consulting expertise is needed to develop, negotiate and audit performance standards for the various vendors with whom HR/B contracts. p. Training Consultants may be asked to provide training strategies, tools, designs and materials as well as deliver and evaluate training sessions for various audiences. They also may be asked to educate HR/B management and staff on complex or topical subjects. q. Systems and Operations Support Consultants must have state-of-the-art systems capacity for analysis and reporting. Consultants also may be asked to develop software applications for the University, along with assessing data management, technology solutions and process improvements. Such applications would include web-based technologies to facilitate policy and program reviews and consultation. r. Ad Hoc Projects Ad hoc projects may arise from a variety of sources and stakeholders both internal and external to the University, some with very little time to respond. Consultants must be able to satisfactorily staff these projects in addition to their ongoing services to the University. 2. For Specific Functional Areas – in addition to the services for all functional areas described in B.1, beginning on p. 15, the following services for specific functional areas may include but are not limited to: Page 18 of 97
  20. 20. University of California Request for Proposal: Consulting Services a. Senior Management Policy and Compensation i) Compensation Structure Review and Adjustment –Provide market survey suggestions and strategies, develop data, conduct in-depth analysis, and provide advice and recommendations, including the pluses and minuses of each proposal, trade-offs for employee groups in various job families, balancing market pay rates with internal equity and budgetary constraint issues. ii) Incentive Plans – Provide “best practices” benchmarking information that assists the University to develop new incentive plans, as well as evaluate and amend existing plans to meet the University’s objectives for recruitment and retention of “best-in-class” leaders. iii) Salary Grading – Develop “best practices” benchmarking methodology and surveys that assist the University to evaluate and implement salary grades for new or existing positions. b. Human Resources Policy i) Policy Maintenance – based on “best practices” research, assist in developing and maintaining a framework for human resources policies, as well as policies themselves. c. Staff Compensation i) Salary surveys – Provide market survey suggestions and strategies, develop data, conduct in-depth analysis, and provide advice and recommendations, including the pluses and minuses of each proposal, trade-offs for employee groups in various job families, balancing market pay rates with internal equity and budgetary constraint issues. ii) Compensation studies/analyses/strategies – Develop and implement compensation systems that are focused on a shift to a total compensation philosophy in a decentralized environment with collective bargaining agreements. iii) Technology and methodology – Develop and implement web-based tools that efficiently collect compensation data from campuses and medical centers. In tandem, create and implement analytic methodologies consistent with OFCCP guidelines. d. Health and Welfare Policy and Program Design i) Due Diligence – Consulting support for activities such as claims audits, operational audits, verification of performance metrics, year-end accounting reviews. Page 19 of 97
  21. 21. University of California Request for Proposal: Consulting Services ii) Renewal and Bids – Consulting expertise, actuarial support and technical tools for the annual plan renewals and for bidding processes or requests for information. iii) Medical Plan/employer Contribution Risk Adjustment – The University risk adjusts medical plan premiums and contributions and requires actuarial support to model potential outcomes as well as implement actual adjustments. iv) Utilization and Outcomes Measurements – Consulting expertise to develop methodologies, outreach and interventions to promote wellness and measure the effectiveness of UC’s programs. v) Plan Administration – The Associate Vice President for Human Resources and Benefits serves as Plan Administrator. Consultants will be asked to provide administrative and fiduciary guidance on such matters as compliance, contract management, operational processes and performance management. e. Retirement Policy and Planning i) UCRP Redesign – Consultants may be asked to develop and cost alternatives to the current defined benefit program, assess the impact of various options, present alternatives and recommendations to various audiences and implement any resulting changes. This activity may include extensive change management and communications strategies. ii) Reinstated Employee/Employer Contributions – Due to its fully funded status, the University has not had to make contributions to the pension plan since 1990. However, projections of future funding status indicate the need to resume contributions in the near term. Consultants may be asked to develop and cost alternative strategies, along with implementation plans. This activity may include extensive change management and communications strategies. iii) Plan Administration – The Associate Vice President for Human Resources and Benefits serves as Plan Administrator. Consultants will be asked to provide administrative and fiduciary guidance on such matters as compliance, contract management, operational processes and performance management. Page 20 of 97
  22. 22. University of California Request for Proposal: Consulting Services C. Process Overview 1. Confidentiality of Request- for- Proposal - This entire RFP, including all exhibits and related material, constitutes confidential material of the University of California. This information is provided to you for the sole purpose of providing a proposal to deliver the services described herein; other uses of this information are not permitted. Information should be disseminated only to those actively engaged in producing your proposal. 2. Bidding Options – Bidders may make proposals on the full range of HR/B functional areas or propose on one or more functional areas. For example: a bidder might propose consulting services for Senior Management and Staff Compensation only, for Retirement Benefits only or for all five functional areas referenced in this RFP. Bidders will be evaluated separately on the basis of their expertise and capacity in each functional area covered by their proposals. 3. Bidding Process The bid process will begin with required minimum qualifications of potential bidders, screening for those organizations with enough experience and financial stability to support a client of the University’s size. Eligible firms will respond in writing to the Request for Proposal; site visits will assess their systems and communications capabilities; reference checks will be done and finalists selected for extensive interviews and presentations on specific topics. The general time frame is as follows: • Request for Proposals issued in March with vendor responses due in May • Selection of finalists in May • Site visits and reference checks during summer 2007 • Interviews and presentations late September/early October • Contract awards in October with an effective date of January 1, 2008 A management advisory group with University members from academia, administration, Office of the President Staff, Clinical Enterprises and retiree organizations will assist in the review and selection. Office of the President representatives will choose the pool of successful bidders. The bid process is a series of steps and bidders must be successful at each one in order to progress to the next step. Bidders will be notified in writing if they should prepare for the next step or if they have been eliminated. Page 21 of 97
  23. 23. University of California Request for Proposal: Consulting Services a. Calendar of Activities 2007 Date(s) Activity Mar 26 RFP invitation issued to potential bidders; RFP posted on website April 6 Noon PDST Intent to Bid Notification and Bidder’s Conference RSVP due to Kim Blodgett either by e-mail, Kim.Bodgett@ucop.edu or via fax (510) 834-9437. April 11 Bidders’ conference/teleconference (MANDATORY) Apr 20 Noon PDST Last day for Bidders’ questions on RFP April 27 Bidders’ questions and UC responses made available to all bidders via HRBCONSULTINGBID- L@UCOP.EDU May 8, Noon PDST Bidders’ proposals due at HR/B Oakland Office (pass/fail) May 29 Preliminary selection of bidders for site visits/reference checks Successful bidders to receive detailed instructions for next steps Jun – Aug Site visits to evaluate bidders’ Systems and Communications strength (pass/fail) Jun – Aug Reference checks (pass/fail) Sep 24 to Oct 6, Interviews Presentations by bidders (up to 3 on topics assigned by UC) One day for each bidder (pass/fail) Oct 8 Finalists chosen for meetings with Senior Management Oct 9 to Oct 15 Final interviews with Senior Management and other stakeholders Nov 1, 2007 Notice of intent to contract Jan 1, 2008 Start of contracts b. Bidder Consent The proposal you submit will be your unqualified consent to all rules described in these bid specifications. This proposal will be considered your only submission. Failure to provide the information requested in these bid specifications will render the proposal invalid at the sole discretion of the University. You must respond to all items in the bid specifications and in the format shown in the instructions. c. Bidders’ Confidential Information/Public Records Requirements When completing your proposal, please indicate those areas of your proposal, if any, that contain information you consider confidential or proprietary. You may not deem the entire proposal to be confidential. The California Public Records Act limits the University’s ability to withhold bid data unless the information is exempt or disclosure is prohibited by federal or state law. If a bid contains information that a bidder considers trade secrets that it does not want disclosed to the public or used by the University for purposes other than evaluation of the bidder’s eligibility and the bid Page 22 of 97
  24. 24. University of California Request for Proposal: Consulting Services proposal, each item of such information must be marked with the designation “CONFIDENTIAL.” Use the Exhibit 10 entitled “List of Confidential Information located in E.3.e, p. 40 to identify each area you consider confidential. Please note that, by May 22, 2007 you must provide a redacted copy of your bid to be used in responding to public records requests for RFP responses. This is Exhibit 11 on page 42 in Section E. 3.g. d. Disqualification Any bidder who does not meet minimum requirements may be disqualified. Reasons for disqualification include, but may not be limited to: • Proposal is not received by the May 8, 12 p.m. (Noon PDST) 2007 deadline. • Proposal does not contain the required elements. • Proposal deviates significantly from the bid specifications. e. Allowed Modifications to RFP/Proposals If the University deems modifications, clarifications, or additions to the bid specifications are necessary, all bidders will receive written addenda to the bid specifications. No one is authorized to amend the RFP in any way by any oral statement or to make any representations or interactions in conflict with its provisions. The sole means of changing the RFP is by written addendum issued by Randolph R. Scott, Executive Director of Human Resources and Benefits Policy and Program Design. UC reserves the right throughout the bid process to negotiate with bidders over any and all terms of their proposal, and to solicit additional information and accept any modifications at its sole discretion. f. Disallowed Modifications to Proposals Except as described in A.4.e, above – Allowed Modifications to Bid Specifications – a proposal with a material change from the original one submitted, including written addenda, if any, will not be considered. Material change means a significant deviation from these bid specifications - for example, a modification that would result in a change in the contract duration or a modification to any provision that would diminish the level of service required by these bid specifications. Page 23 of 97
  25. 25. University of California Request for Proposal: Consulting Services g. Bidder Notification/Communication/Questions Notification: When the bidders’ proposal is received, the University will send a confirmation by electronic mail (email). If a bidder does not receive this confirmation within 48 hours they should contact the University via email at HRBCONSULTINGBID- L@UCOP.EDU . . Communication: All process communication between UC HR/B and bidders MUST be made by email to HRBCONSULTINGBID- L@UCOP.EDU . When your email is received, a response will be made by email. To be added to this mail list, bidders must send an email with the name of their contact person for this purpose, the email address and the person’s position within the organization. Questions: Questions posed by a potential bidder that are considered material to this RFP by the University and of interest to other bidders will be communicated to all potential bidders by the method described below. Ongoing Email Question and Answer Document: HRBCONSULTINGBID- L@UCOP.EDU . This document will be a chain email that accumulates all questions received from all bidders and the answers to all questions. The most recent questions are added at the end and responses will not identify the organization that posed the question. The University reserves the right to decline to answer any question. No new inquiries will be allowed after the deadline date of April 30, 2007. This communication will be distributed via email at HRBCONSULTINGBID- L@UCOP.EDU at least once a week (if questions are received during that week) and more frequently as needed depending on the number of questions received. The deadline for emailing questions about the RFP or the bid process is April 20, 2007, Noon (PDST) h. Bidders’ Conference Bidders who may wish to submit a proposal must participate in a MANDATORY Bidders’ Conference by web cast. The Page 24 of 97

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