City of San Bernardino
Finance Department, Purchasing Division
JUSTIFICATION OF SINGLE/SOLE SOURCE REQUEST
ITEM Description: Alliant Insurance Services Broker Agreement Amendment #1 DATE: 7/28/26 Select Source:
_ Sole Source: Item is manufactured and/or only distributed by one vendor. _ Single Source: Item is available from several vendors, but item is the only one that will work.
Please answer all questions in detail, in order to prevent delays in the evaluation. Please do not provide one sentence answers. If any additional pages are needed to answer all questions, please attached all pages to this document.
1. Why is the acquisition restricted to this good/service/supplier? (Explain why the acquisition cannot be competitively bid). Please enter answer below:
Alliant Insurance Services, Inc. is the exclusive broker for PRISM (Public Risk Innovation, Solutions, and Management), a public agency risk-sharing pool. If we elect to utilize another health insurance broker, we would immediately lose access to the PRISM pool, which would directly affect our insurance premiums for the City's Medical, Dental, Vision, Life & Accident, Property, Excess Liability, Excess Workers' Comp, and Cyber insurance coverages.
2. Describe the uniqueness of the purchase (why was the good/service/supplier chosen?) Please enter the answer below:
We broker with Alliant because they secure competitive premiums, provide the City with benefit plan management, and we are granted access to the shared risk pool for all insurance services through PRISM.
3. What are the consequences of not purchasing the good/service or contracting with the proposed supplier?
The consequence of not contracting with Aliant would be the loss of access to the PRISM pool, which would significantly impact the City's insurance premiums. Without access to PRISM, the City would have to secure stand alone insurance coverage and be rated based on its individual risk and claims experience.
4. What market research was conducted to substantiate the single source, including evaluation of other items considered?
a. (Please provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department concluded that such alternatives are either inappropriate or unavailable. The names, addresses and phone numbers of suppliers contacted and the reasons for not considering then must be included or an explanation of why the survey or effort to identify other goods/services was not performed.) We have been unable to identify another broker that has access to the PRISM risk pool, as Alliant is their sole broker.
5. How was the price offered determined to be fair and reasonable? Explain what the basis was for comparison and include cost analyses as applicable. (I.E. Compared to vendor's previous or current offer to the city or to another agency/company - or any other method of comparison that will substantiate fair and reasonable pricing in the absence of competition) The cost of the Original agreement for benefits consulting services is reasonable at $150,000 for the first year and future annual renewals include a 2% increase over a five (5) year period.
6. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
Cost savings associated with this agreement with Alliant relies not only on the cost for consulting services, but lso the City's participation in the PRISM risk-sharing pool. This pool is comprised of 55 of California's 5:
ounties and over 300 additional public entities. Through Alliant, the City accesses PRISM's shared risk pool t obtain coverage across employee benefits and risk insurance lines including property, cyber, and excess workers' comp insurance.
7/28/26
1. -
Department Head Date
Approved Not Approved
(Up to $50,000) Date
Purchasing Manager or Director of
Finance & Management Services
3. 7/28126 Approved @_Not Approved
Date
City Manager
Justification:
4. Over $100,000 - must be submitted for City Council Approval.