Kansas City Area Transportation Authority 1350 E. 17Th Street

ADDENDUM NO. 1

Kansas City Area Transportation Authority
1350 E. 17th Street

Kansas City, Missouri 64108

IFB#15-8012-25

Actuarial for GASB 43 & 45 Reporting

Issue Date: July 22, 2015

This Addendum is hereby made a part of the Bidding Documents to the same extent as if it was originally included therein and is intended to modify and/or interpret the bidding documents by additions, deletions, clarifications or corrections. The Contractor shall acknowledge in the proposal the receipt of this Addendum.

CLARIFICATIONS AND CORRECTIONS

IFB paragraph 2.3.6 is hereby clarified to state:

The actuary shall attend meetings via telephone conference call or web-meetingto discuss or explain the above calculations and receive telephone calls from staff seeking information on the above. It is not anticipated that the contractor will need to be on-site to attend a meeting.

IFB paragraph 2.4.3 is hereby revised to state:

The contractor shall have a proven record of having provided the actuarial services required to an organization of similar size as described herein.

GENERAL INFORMATION:

Following is a list of questions, submitted by potential proposers, and the answers:

Q1. / Please provide a copy of the prior OPEB Report?
a. Please make a notation for any changes to the plan or funding methodology.
A1: / KCATA is unable to provide the requested information. The prior OPEB Report is a proprietary document.
Q2. / What was the fee for the prior OPEB valuation?
A2: / This cannot be disclosed because of the competitive nature of the procurement. However, the range in which the fee fell within is between $8,000 and $12,000.
Q3. / Why is the authority looking to change firms?
A3: / The current contract is due to expire in its entirety (no renewal options remaining).
Q4. / The IFB states: The actuary shall attend meetings to discuss or explain the above calculations and receive telephone calls from staff seeking information on the above.
a. Please clarify with respect to the expected number on‐site meetings.
b. How many on‐site meeting did the current firm participate in?
c. What is the purpose of the meetings?
A4: / It is anticipated that most meetings could be handled via telephone conference call. No on-site meeting is anticipated at this time.
Q5. / With respect to the IFB GASB 43 component, please advise on the authority’s plans for funding the OPEB liability?
A5: / There are no current plans to fund the OPEB liability.
Q6. / How much experience does the authority’s staff that will be involved with the project have with OPEB.
A6: / KCATA is experienced with the process of working with an outsourced contractor/consultant for the past 5+ years in providing GASB reporting.
Q7. / Since this an OPEB project, please clarify the reasoning behind the requirement in IFB paragraph 2.4.3.
A7: / See Addendum No. 1 revision to paragraph 2.4.3.
Q8. / Describe any difficulties or challenges encountered in performing the most recent OPEB valuation.
A8: / No known difficulties or challenges.
Q9. / Have there been any addendums? If yes please provide directions on how we can obtain them.
A9: / Addendum No.1 will be issued to incorporate this Question and Answer document as well as any additions or changes to the IFB. All other addenda as issued will be posted at KCATA’s website.
Q10. / Has the authority considered early implementation of GASB 75.
A10: / The OPEB liability is already recorded on KCATA’s balance sheet, therefore, KCATA is not expecting significant changes needed to be in compliance.
Q11. / We would like to get a copy of the last full actuarial valuation report.
A11: / KCATA is unable to provide the requested information. The prior OPEB Report is a proprietary document.
Q12. / Do you have a defined list of what categories will be used to judge the proposals?
A12: / This is an Invitation For Bid, which means lowest priced bid response meeting (responsive to) mandatory requirements will be notified as the intended contract awardee.
Q13. / What are the current fees being paid to the current actuary for a full-year valuation and the interim-year update? Who is the current actuary?
A13: / The current fees cannot be disclosed because of the competitive nature of the procurement – refer to A2 above. The current actuary is CBIZ.
Q14. / Who is the current (or recent past) actuary who conducts the OPEB valuations for the KCATA?
A14: / The current actuary is CBIZ.
Q15. / What were the last 2 to 3 years’ fees for these services?
A15: / This cannot be disclosed because of the competitive nature of the procurement. Refer to A2 above.
Q16. / Why are these services out to bid at this time
A16: / The current contract is due to expire in its entirety soon and there are no renewal options remaining.
Q17. / How many onsite meetings is the actuary expected to attend each year?
A17: / None, at this time. It is anticipated that the meetings can be conducted via telephone conference call.
Q18. / Has the KCATA’s actuary made any recommendations for revisions to improve the benefit funding or structure in the past? If so, what actions has the KCATA taken in response to the recommendations?
A18: / Yes, recommendations have been made in the past and further information regarding such will be discussed with the awarded contractor.
Q19. / Is there any provision for the 8.5% DBE participation to be waived for this bid? If not, can the entire percentage of participation be met indirectly through purchase of goods and/or services by the chosen actuarial firm?
A19: / IFB paragraph 3.13.1 states, “A separate contract goal has not been established for this procurement.” Therefore, though DBE participation is encouraged, it is not a requirement to provide such participation. DBE participation would have to be in the form of direct services required under the contract (e.g., not indirectly).
Q20. / The IFB states the report should include “individual participant listings”. What is the purpose of the listing, and what items should be included?
A20: / The IFB states in paragraph 2.3.3 subparagraph g, “individual participant benefit listings”, which is the listing of the healthcare benefit plans and associated rates available to retirees.
Q21. / The IFB states “If awarded at all, the bid may be awarded to the bidder whose total price is lowest, whose bid is responsive to the invitation thereof, and who is determined to be technically and financially responsible to perform as required. The KCATA reserves the right to accept another bid, if it is in the best interest of the Authority.” What will be the primary basis for your decision?
A21: / Cost. The award goes to the lowest bid response that fulfills the mandatory requirements of the IFB and responsibility & responsiveness criteria.
Q22. / Where or how can we obtain a copy of your last valuation report?
A22: / KCATA is unable to provide the requested information. The prior OPEB Report is a proprietary document.

RECEIPT OF ADDENDA

IFB # 15-8012-25

Actuarial Services for GASB 43 & 45 Reporting

Offerors shall return this RECEIPT OF ADDENDA form when submitting your bid. The form shall be signed and dated by an authorized representative of the firm. Failure to submit this form may deem the Offeror non-responsive.

We hereby acknowledge that the Addenda noted below have been received and all information has been incorporated in the IFB as required.

Addendum # 1 DatedDate Received

Company Name:
Address:
City/State/Zip Code:
Telephone: / Fax:
Printed Name:
Authorized Signature:
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Addendum 1– Page 1 of 4

RFP No. 15-8012-25

Issued 7/22/2015