Request for Proposal
Auditing Services for the Port of Richmond
Release Date: January 31, 2023
Deadline for Submittal
February 27, 2023
Contact: Jerry Chak, Accounting Manager
Email: [email protected]
Phone Number: 510-620-6569
City of Richmond
Finance Department
INTRODUCTION
The City of Richmond is requesting proposals from qualified certified public accountants to conduct a management and performance audit of the Port of Richmond. This request for proposal (RFP) describes the project, the required scope of services, the consultant selection process, and the minimum information that must be included in the proposal.
Failure to submit information in accordance with the RFP requirements and procedures may be cause for disqualification.
ABOUT THE PORT
The Port of Richmond is a division within the City Manager’s Economic Development.
The Port is responsible for developing, marketing, leasing, operating, and maintaining four (4) City-owned marine terminals. It operates dry bulk, break-bulk, and automobile processing facilities. The Port’s property includes the Point Potrero Marine Terminal (PPMT) as well as Terminals 2, 3, and 4. The Port has approximately 200 acres of land and 400,000 square feet of building space. Port revenue is generated through the application of the Port Tariff and property lease agreements.
Terminal 2 – 8 acres of land and two warehouses totaling 140,000 square feet used for the storage and distribution of liquid bulk. The terminal is currently rented to a private business.
Terminal 3 - 20 acres of land and a warehouse of 80,000 square feet used for the import, storage and distribution of bulk cargo and containers. Terminal 4 – 37 acres of land and a warehouse of 12,000 square feet used for trucking and storage.
Point Potrero Marine Terminal –130 acres of land, four graving docks, two finger piers and two warehouses totaling 170,000 square feet used for import, storage and distribution.
SCOPE OF SERVICES
The successful firm shall have extensive experience, depth of expertise, and breadth of resources in performing management and performance audits for port authorities of similar size, budget, revenue, diversity of operations and industry as the Port of Richmond.
The responsibilities of the consultant shall assess the overall management, efficiency, and effectiveness of all Port operations and services with focus on the following key areas, including but not limited to:
Organizational Overview
1. Is the Port making t he best use of public funds?
2. Is the Port utilizing effi cient operating practices?
3. Does the Port have an effect ive organization and/or management structure including staffing and operations when compared to other similar Ports? Are there opportunities for improvement?
4. Is the Port complying with in ternal controls, government rules and regulations?
5. Does the Port’s current overs ight structure guarantee transparency and public access to the information? If not, what are the recommendations?
Operations and Maintenance
6. Does the Port have an adequate management control system for accounting measuring, reporting and monitoring its leases?
7. Are staffing levels appropriate for the size and complexity of the Port’s operations and business requirements?
8. Are there opportunities for management/staff to carry out operations in a different way that might yield desired results more effectively or at a lower cost?
9. Is security at the Port effective? What are the recommendat ions for improvement?
10. Are there specific physical c hanges to infrastructure that should be made to the Port properties that would improve the operation and maintenance of the facilities?
11. Is technology adequate and utiliz ed efficiently? Is the technology in alignment with business needs and relevant industry benchmarks?
12. Are leases or loan rates r easonable compared to industry standards and local market?
Tenant Services
13. Is the Port responsive to t he needs of customers, including tenants, city departments, council, members of the broader community, and regulatory agencies? Recommend how this could be more effective.
14. Does the Port have an adequat e management control system for measuring, reporting and monitoring its leases?
15. Review and make recommendat ions regarding policies and procedures relating to tenant services.
16. Can the Port tak e any legal actions against the delinquent tenants to recover lost revenue.
17. Are there any conflict of int erest issues involving any current or former City Council members, Current or former City staff, Current or former Port’s tenants, Current and former Port’s contractors?
General Administration
18. Is the Port adequately account ing for the prudent and effective management of the resources entrusted to them?
19. Is the Port following sound procurement practices, budgeting process, and accounting rules?
20. Review and make recommendat ions, as applicable, on the following:
a. The budgeting process and purchasing system.
b. Accounting systems, and cash management controls.
i. Cash Management
ii. Rent roll informati on of current leases
iii. Transfer in and out
iv. Rent roll information of each sublease
v. Loans made to the Por t and other debt accrued
c. The adequacy of communicati ons and feedback at all levels, including the council, tenants, management, staff, and customers.
21. Assess the adequacy of Port fi nancial oversight from the Finance Department.
The project should be completed within 120 days of notice to proceed with the project.
The estimated fee for the completion of this Project is not to exceed $100,000. Upon competition of the audit, the selected consultant shall deliver a written report summarizing findings and recommendations for improvements. The recommendations shall include samples from other comparable business entities. After issuance of the report, the selected consultant shall attend City Council meeting to discuss the results of audit. The selected consultant will be paid by the following method: monthly invoices based upon deliverables or portion of work completed.
RFP SCHEDULE
Date Activity
1/31/2023 Release RFP
2-16-23 Final Day to Submit Questions (5:00 PM)
2-20-23 Responses to Questions posted on
BidsOnline
2-27-23 RFP Due Date
3-6-23 Short List Interviews
3-13-23 Final Selection and Contract Negotiations
4-4-23 City Approval Processes
4-5-23 Effective Date of Contract
PROPOSAL FORMAT GUIDELINES
The proposal should be concise, well organized, and demonstrate the proposer’s qualifications and experience applicable to the Project. The proposal shall be limited to 20 double-sided pages (8.5 inches x 11 inches), inclusive of graphics, forms, pictures, photographs, dividers, etcetera, but not of cost proposal, resumes, required forms, certifications, front and back covers, or letters of commitment from sub-consultants. The required font size is 12 point, with minimum left and right margins of one-inch, and top and bottom margins of 0.7 inches.
Each proposal will adhere to the following order and content of sections. Proposal should be straightforward, concise and provide “layman” explanations of technical terms that are used. Emphasis should be concentrated on conforming to the RFP instructions, responding to the RFP requirements, and on providing a complete and clear description of the offer. Proposals, which appear unrealistic in the terms of technical commitments, lack of technical competence or are indicative of failure to comprehend the complexity and risk of this contract, may be rejected. The following proposal sections are to be included in the Vendor’s response:
A. Vendor Cover Letter
A cover letter, not to exceed three pages in length, should summarize key elements of the proposal and shall:
Confirm that all elements of th is RFP have been reviewed and understood.
Include a statement of intent to perform the services as outlined. Express company’s willingness to enter into an agreement under the
terms and conditions prescribed by this RFP, insurance requirements (Attachment A) and in the sample Service Agreement (Attachment B). Submit a written description and brief history of the company’s experiences, qualifications, and successes in providing management and performance audit services described herein. Please indicate the number of employees, client base and location of offices.
Indicate the address and teleph one number of the vendor’s office located nearest to Richmond, California and the office from which the project will be managed.
Confirm that vendor has a minimum of three (3) years verifiable auditing experience.
Stipulate that the proposal pri ce will be valid for a period of at least 180 days.
Identify a single person for cont act during the RFP review process.
Include email address and telephone number.
Cover letter shall be signed by an authorized official of the company.
B. Firm’s Experience and Techni cal Competence
List at least three (3) recent audits in the last five years completed by the firm conducting management and performance audits for ports of similar size, budget, diversity of operations and/or completing similar consulting efforts including:
Experience in assessment of management and performance operations and the evaluation of best practices;
Experience in gathering data , conducting interviews, performing site visits, and assessing operations;
Experience to objectively analyze information and render recommendations to improve key areas of performance.
For each example, explain the parallels to this Project. If there are aspects of this Project not covered in your team’s experience, please explain your plans to adapt to the new situation. For each completed project, provide the name of the company and Project Manager the proposer performed work for, correct telephone numbers and e-mail addresses, type of work performed, and dollar value of the contracts. A project currently being performed may be submitted for consideration as one of the references.
C. Proposed Method to Accomplish the Work
Describe the firm’s technical and management approach for successfully completing the Port’s management and performance audit. The project approach should be in sufficient detail to demonstrate the firm’s understanding of the Project, its unique challenges, and the processes and procedures that must be followed. The proposer should identify the goals of the performance audit, the most critical steps for success, and metrics to ensure that the goals have been met. In addition, please provide a proposed Project schedule. Boilerplate proposals that do not include discussion specific to the Port of Richmond’s
structure, policies, business methods, and Project requirements will receive lower scores. Demonstrated understanding of Port of Richmond and the Project, with the inclusion of innovative approaches and articulate analyses, will receive higher scores.
D. Project Team
The composition of the team and their ability and capacity to perform scope of work.
Describe firm’s project team organization, including identification and responsibilities of key personnel. Indicate role and responsibility of prime consultants and all sub-consultants. If applicable, indicate how local firms are being utilized to ensure a strong understanding of state and local laws, ordinances, regulations, policies, requirements, and permitting. Indicate the extent of the commitment of key personnel for the duration of the Project and furnish resumes of key personnel. Provide an indication of the staffing level for the Project. The City of Richmond’s evaluation of the proposal will consider the proposer’s entire team; therefore, no changes in the team composition will be allowed without prior written approval of the City of Richmond. Sub-consultant letters of commitment are required and must be submitted with the proposal.
Describe the experience of the proposer’s Project team in detail, including the team’s Project Manager, and other key staff members, on projects of similar size, capacity, and dollar value. For each similar project, include the client’s name and correct telephone number.
E. Cost Information
Provide the total direct and indirect costs to complete all tasks identified in the scope of services. A detailed cost breakdown shall be provided identifying: (1) the number of staff hours and hourly rates for each professional and administrative staff person who will be committed to this Project; (2) all other direct costs, such as materials and reproduction costs; and (3) sub-consultant services, if needed. These rates will also be used to negotiate rates for other projects (including optional tasks) that may be assigned. No additional funds will be paid above and beyond the original quote given by the selected Vendor.
Proposers will be paid at the same rates set forth in their cost proposal unless further negotiated in writing and agreed to by the City of Richmond.
F. Value Added Services
Please provide any additional services of benefit not specifically required herein, which the Respondent offers to provide.
G. Contractor Assignment of Sub-Contract
The resulting contract shall not be assigned, transferred, or sublet, in whole or in part, without the prior written approval of the City of Richmond. If Proposers intend to subcontract any portion of the resulting contract, they must describe their process for selecting such subcontractor(s) and the quality control measures that the Proposer will employ to ensure that any subcontractor
complies with the provisions of Proposer’s contract with the City.
H. Previous Contracts with the City of Richmond
The proposer shall submit a list which indicates all prime contracts and/or amendments awarded to the proposer by the City of Richmond for the last three (3) years. The list shall include a short description of the Project, the Project scope of work, award date, completion date, name of City of Richmond’s assigned Project Manager, and contract value.
I. Exceptions to this Request for Proposals
The proposer shall state whether or not it takes exception(s) to this RFP, including but not limited to the City of Richmond’s Standard Services Agreement – RFP (Attachment B). If the proposer does take exception(s) to any portion of the RFP or contract, the specific portion to which exception(s) is taken must be identified by section number and explained. Requests for changes or additions to sections of City of Richmond’s Standard Services Agreement must be shown by requesting deletion of specific words and/or by providing new requested contract language. Requests for complete replacement of the City of Richmond’s Standard Services Agreement for another contract will not be granted. Failure to make exceptions to the RFP or Standard Services Agreement within the proposal will be deemed a waiver of any objection. Exceptions will be considered during the proposal evaluation process.
J. Statement of Impartiality and Disclosure
The nature of this Project requires an impartial unbiased approach on the part of the proposer’s team. This proposal shall include a statement declaring that the proposer’s and sub-consultants are not currently, and will not, during the performance of these services, participate in any other similar work involving a third-party with interests currently in conflict or likely to be in conflict with City of Richmond’s interests. Additionally, proposer is required to disclose any pending or active investigations or litigation that may affect the reputation or ability of the proposer to carry out the Project.
PROCESS FOR SUBMITTING PROPOSALS
Questions Concerning Request for Proposals
All questions must be submitted via the electr onic BidsOnline system on the Q &A tab by 5:00pm PST, on February 16, 2023. If the City finds it necessary to issue an addendum, prospective Offerors will receive e-mail notification of addendum.
Otherwise, answers to questions received will be provided on the Q&A tab and notification will be sent by February 20, 2023. It is the proposer’s responsibility to periodically check the BidsOnline website www.ci.richmond.ca.us/bids for any possible Addenda to the RFP that may have been posted.
Any party submitting a proposal shall not contact or lobby any City Council member, City official, employee (except those specified for contact) or agent regarding the RFP.
Any party attempting to influence or circumvent the RFP, bid submittal, and review process may have their proposal rejected for violating this provision of the RFP.
Interested parties may download copies of the above mentioned p roposal by visiting the City's web site, www.ci.richmond.ca.us/bids. To download RFP, new vendors will be required to register. Once the vendor downloads any document s relative to a solicitation, that vendor's name will appear on the Prospective Bidders list for that project and will receive any addenda or notifications relating to the RFP.
Submission of Proposals
The proposal and any required certifications shall be signed by an individual or individuals authorized to execute legal documents on behalf of the proposer.
Electronic Proposals shall be submitted via the City’s secure online bidding system. All required sections of the proposal must be submitted via the website. Contractor is solely responsible for “on time” submission of their electronic proposal. The Bid Management System will not accept late proposals and no exceptions shall be made. Contractors will receive an e-bid confirmation number with a time stamp from the Bid Management System indicating that their bid was submitted successfully. The City will only receive those proposals that were transmitted successfully.
The proposal must be received no later than 3:00 p.m., local time, on February 27, 2023.
The City of Richmond reserves the right to waive inconsequential irregularities.
GENERAL GUIDELINES
This RFP does not commit the City of Richmond to award a contract, to defray any costs incurred in the preparation of a proposal pursuant to this RFP, or to procure or contract for work. The City of Richmond may reject a proposal without providing the reason(s) underlying the declination. A failure to award a contract to the proposer with the lowest cost proposal shall not constitute a valid cause of action against the City of Richmond. The City shall not be responsible for work done, even in good faith, prior to final approval of the proposed contract. The City may investigate the qualifications of any respondent under consideration, require confirmation of information furnished by the respondent, and require additional evidence or qualifications to perform the Services described in this RFP.
The City reserves the right to:
1. Reject any or all proposals.
2. Issue subsequent Requests for Proposal.
3. Postpone opening for its own convenience.
4. Remedy technical errors in the Request for Proposal process.
5. Negotiate with any, all, or none of the Respondents.
6. Solicit best and final offers from all or some of the Respondents.
7. Select one or more Respondents.
8. Accept other than the lowest proposed fees.
9. Waive informalities and irregularities in proposals.
Public Records
All proposals submitted in response to this RFP become the property of the City of Richmond and public records and, as such, may be subject to public review. Documents protected by law from public disclosure will not be disclosed by the City of Richmond if clearly marked with the word "confidential" on each applicable page. Trade secrets may be marked as confidential only to the extent they meet the requirements of California Government Code section 6254.7. Only information claimed to be a trade secret at the time of submittal to the City of Richmond and marked as "confidential" will be treated as a trade secret.
Insurance Requirements
The City of Richmond requires consultants doing business with it to obtain insurance, as shown in RFP Attachment A. The required insurance certificates must comply with all requirements of the standards as shown and must be provided within fifteen (15) days of issuance of the Notice of Intent to Award and prior to the commencement of any work on the Project.
Business Licenses
The successful Contractor and all subcontractors used in the work will be required to hold or to obtain a City of Richmond business license for which the fee will not be waived.
Compliance with City Ordinances
The contractor and all subcontractors shall comply with the City of Richmond Nondiscrimination Clauses in City Contracts Ordinance (Richmond Municipal Code (RMC) Chapter 2.28), Business Opportunity Ordinance (RMC Chapter 2.50), Local Employment Program Ordinance (RMC Chapter 2.56), Living Wage Ordinance (RMC Chapter 2.60) and Ordinance Banning the Requirement to Provide Information of Prior Criminal Convictions on all Employment Applications (“Ban the Box”) (RMC Chapter
2.65), which are incorporated into the Contract Documents by this reference.
Sanctuary City Contracting Ordinance (SCCO)
The Richmond Sanctuary City Contracting Ordinance No. 12-18 (Attachment D) prohibits the City from granting and or retaining contracts with any person or entity that provides Data Broker or Extreme Vetting services to the U.S. Immigration and Customs Enforcement Division of the United States Department of Homeland Security (“ICE”).
Proposers must submit the attached Sanctuary City Compliance Statement with their Proposal. (Attachment C)
Limited Liability Company Disclosure Statement (LLCS)
Resolution No. 86-21 (Attachment E), approved by City Council on July 6, 2021, requires disclosure of the identities of beneficial & responsible owners of Limited Liability Corporations (LLC). Proposers must submit the attached Disclosure Statement of Limited Liability Companies Form with their Proposal (Attachment F).
Collusion
By submitting a proposal, each respondent represents and warrants that its proposal is genuine and not false or collusive or made in the interest of, or on behalf of any person not named therein; that the respondent has not directly or indirectly induced or solicited any other person to submit a false proposal, or any other person to refrain from submitting a proposal; and that the respondent has not, in any manner, sought collusion to secure any improper advantage over any other person submitting a proposal.
Withdrawal of Proposals
A respondent may withdraw their proposal before the expiration of the time for submission of proposals by delivering to the Finance Department a written request for withdrawal signed by, or on behalf of, the respondent.
Ownership of Documents
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials produced for the Project shall be the sole and exclusive property of the City. No such materials or properties produced in whole or in part for the Project shall be subject to private use, copyrights or patent rights by Respondent in the United States or in any other country without the express written consent of the City. The City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced for this project.
PROPOSAL EVALUATION AND SELECTION PROCESS
All proposals shall be review ed to verify that the Respondent h as met the minimum requirements. Proposals that hav e not complied with requirement s , d o n o t m e e t minimum content and quality standards, or take unacceptable exceptions to the General Terms and Conditions of the Service Agreement, will be eliminat ed from further consideration. Proposals will be reviewed and evaluated by an e valuation committee comprised of City of Richmond personnel.
The City reserves the right to reject any or all proposals, or to make no award. The City also reserves the right to require modifications follow-up with requests for additional information, including, but not limited to, follow-up interviews. The City may request Best and Final offers based upon improved understanding of the offers or changed scope of
service. The City will negotiate with that vendor to determine final pricing, and contract form. Because this proposal is negotiable, all pricing data will remain confidential until after award is made, and there will be no public opening and reading of Proposals.
Overall responsiveness to the RFP is an important factor in the evaluation process. The criteria upon which the evaluation of the proposals will be based include, but are not limited to, the following:
Proposed Method to Accomplish the Work – 25%
The proposer’s responsiveness to the RFP including completeness and thoroughness of proposal; all required information must be provided in the f ormat specified. This category will also evaluate:
Ability to provide services as outlined in the RFP.
Approach and proposed met hodology to project scope
Demonstrated knowledge of the work required
Explanation of the Project or services required
Innovative approaches and internal measures for timely completion of Project
Firm’s Experience and Technical Competence – 25%
Consideration will be given based upon the firm’s experience, years in business, past and current client references; technical expertise and professional competence in areas directly related to this RFP; number of years of experience in performing similar work.
Project Team – 25%
Respondent should demonstrate that all key personnel have been successfully involved with projects of similar scope and magnitude. This category will evaluate the firm’s:
Qualifications and relev ant individual experience
Unique qualificatio n of key personnel
Cost Proposal – 25%
Interviews
Upon request of the City of Richmond, vendors may be requested to give an oral presentation on vendor’s proposal, which would include a detailed analysis of how each of the RFP requirements would be addressed should firm receive the award.
Vendors may be eliminated from consideration based solely on inability to meet minimal requirements and/or review of written proposals.
Pre-Award Negotiations
After the proposals are opened, but prior to award, the City may elect to conduct negotiations with the highest ranked respondent for purposes of :
Resolving minor differences and information
Clarifying necessary det ails and responsibilities
Emphasizing import ant issues and points
Receiving assurances from respondents
Cost/budget clarifications
If the City cannot successfully negotiate a contract with the h ighest ranked respondent, the City may begin negotiations with the second highest ranked respondent.
Selection may be made without further discussion, negotiations or Offeror’s presentations; therefore, Offeror shall offer the most favorable terms in response to this RFP. Offeror must demonstrate an understanding of the scope of service to be provided and the ability to accomplish the tasks set forth. Offeror shall include information that will enable the City to determine the Offeror’s overall qualifications. The City reserves the right to request additional information or clarification on any matter included in the proposal response, to enable the City to arrive at the final award decision.
Award - When the Review Panel has completed its work, City staff will then recommend an audit firm to the City Manager and City Council for approval. The services provided by the successful bidder shall be governed by a Standard Services Agreement (Attachment B).
Attachments
A. Insurance Requirements
B. Standard Contract
C. Sanctuary City Co mpliance Statement
D. Sanctuary City Contra cting Ordinance No. 12-18
E. Limited Liability Corporati on (LLC) Resolution No. 86-21 F. Limited Liability Corporation Form