RFP Outline.doc.doc

Request for Proposalto provide

Human Resources & BenefitsConsulting Services Contract

#UCOP/HRB Consulting/2007

University of CaliforniaOffice of the President

Human Resources & Benefits

Proposal Due Date: May 8, 2007

University of California Request for Proposal: Consulting Services

Table of Contents

Section Subject Bidder Exhibits

Page Number

A.BASE RFP

Background (Section provides information about the University)

5

A.1 Basis for Request for Proposal (RFP)/Term of Contract None 5A.2 Consulting Services not included in this RFP None 5A.3 The University: Organizational Structure and Related

WebsitesNone 6

A.3.a About the University of California None 6A.3.b Office of the President None 6A.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 8A.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 12A.3.e. List of all URL’s in RFP; Other URL’s of Interest None 14

B. Services to be Provided(Describes services the University is seeking.)

15

B.1 For All Functional Areas 15B.1.a General Consulting None 15B.1.b Strategic Planning None 15B.1.c Total Compensation Strategies, Modeling & Costing None 15B.1.d Market Surveys, Research and Trend Analyses None 15B.1.e Benchmarking and “Best Practices” Advice None 15B.1.f Costing, Oversight and Reporting Models None 16B.1.g Labor Relations Strategies and Processes None 16B.1.h Strategic integration of UC Clinical Enterprises into UC Benefits None 16B.1.i Financial and Actuarial Analyses None 16B.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 18B.1.k Vendor Oversight None 18B.1.l Project Management None 18B.1m Communications Strategies and Materials None 18B.1.n Compliance Advice and “How-to” Strategies None 18B.1.o Performance Standards – HR/B (OP and Local) and UC

VendorsNone 19

B.1.p Training None 19B.1.q Systems and Operations Support None 19B.1.r Ad Hoc Projects None 19

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University of California Request for Proposal: Consulting Services Section Subject Bidder

ExhibitsPage Number

B.2 For Specific Functional Areas 19B.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 20B.2.b Human Resources Policy None 20 B.2.b.i Policy Maintenance None 20B.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 20B.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 20B.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(Describes the RFP process: calendar, written proposals, site visits, interviews, presentations, selection of the pool, etc.)

22

C.1 Confidentiality of Request for Proposal None 22C.2 Bidding Options None 22C.3 Bidding process None 22C.3.a Calendar of activities None 23C.3.b Bidder Consent None 23C.3.c Bidders’ Confidential Information/Public Records

RequirementsNone 23

C.3.d Disqualification None 23C.3.e Allowed Modifications to RFP/Proposals None 24C.3.f Disallowed Modifications to Proposals None 24C.3.g Bidder Notification/Communication/Questions None 24C.3.h Bidders’ conference None 25C.3.i Site Visits – Systems & Communications None 25C.3.j Selection Process None 26C.3.k Final Selection None 27C.3.l Bid Inspection None 27C.3.m Terms of Contract None 28

D. Bidder Qualifications – Required Minimums(Describes minimums organizations must meet in order to submit a bid.)

29

D.1 Organization size and experience 29D.1a Experience and Income None 29D.1b Organizational Background Exhibit 1 29D.1c High Level Organization Chart Exhibit 2 30D.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

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University of California Request for Proposal: Consulting Services Section Subject Bidder

ExhibitsPage Number

D.1d.iii. (2) Commercial Form General Liability Insurance, Business Auto, Worker’s Comp, Commercial Blanket Bond

Contractual Requirements Agreement (Signature required)

Certificate of Insurance

Exhibit 3

Exhibit 3a

31

33

33

D.1e Conflict of Interest/Litigation Issues Exhibits 4 and 5

34

D.2 Declination/Minimum Qualifications Form (Signature required)

Exhibit 6 35

E. Instructions for Submitting a Proposal(Tells bidders how to complete a written proposal.)

36

E.1 General Guidance/RFP Layout 36E.2 Bidder Documents Required for a Complete Proposal 37E.3 Presentation of Your Written Response None 37E.3.aE.3.b

Respondent Cover Sheet (Signature Required)Corporate Resolution/Statement of Ownership

Exhibit 7Exhibit 7a

3940

E.3.c Audited Financial Statements Exhibit 8 40E.3.d Last Five Years of Stability Ratings Exhibit 9 40E.3.e List of Confidential information Exhibit 10 40E.3.f Checklist of Required Proposal Exhibits None 41E.3.g Redacted Proposal Response Exhibit 11 42E.4 University Addresses and Contacts None 42

F. Bidding Requirements(Describes mandatory University formats, bidder agreements and guarantees)

43

F.1 For All Functional Areas 43F.1.a Filings, Licensing, etc. None 43F.1.b University’s Standard Consulting Contract None 43F.1.c Project Engagement Letter Format (example provided), Written

reports, Meetings and Follow-upNone 43

F.1.d Invoice Format (example provided) None 46F.1.e Consulting Account Team Staff Changes None 49F.1.f Performance Guarantees – Consulting Services None 49F.1.g Termination of a Contract None 49

G. Bidder Questions and Proposal Evaluation Criteria(Questions for bidders; University evaluation criteria)

50

G.1 General 51G.1.a Areas on which you are Proposing Exhibit 12 51

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Section Subject Bidder Exhibits

Page Number

G.1.b Account Team(s)/Account Team(s) Lead Exhibits 13-17, 13a-17a

52

G.1.c Required Resume Format for Account Team(s) Exhibit 18 58G.1.d Client and Professional References

Additional Client ReferencesExhibit 19Exhibit 20

6065

G.1.e Research and Report Capabilities; Project SamplesProject Sample Cover Sheet

Exhibit 21Exhibits 21a through 21e

6667

G.1.f Presentation and Communications skills (oral & written) None 68G.1.g Experience with Boards of Directors, Governing Boards,

Executive Leadership Groups Exhibit 22 69

G.1.h Collective Bargaining Experience Exhibit 23 71G.1.i Medical School/Hospital/Research Institution Consulting

Experience Exhibit 24 72

G.1.j Access to State and Federal Legislative Arenas/HR Policy Research

HR Policy/Legislative/Regulatory Updates for Clients HR Policy/Legislative/Regulatory Tracking and Research

Exhibit 25Exhibit 26

72

7272

G.1.k Systems and Data Base Capabilities Systems Security and Disaster RecoveryBusiness Associates Agreement (example)Systems Database StructureSystems ReportingSystems InteroperabilitySystems Analytic Capability

Exhibit 27NoneExhibit 28Exhibit 29Exhibit 30Exhibit 31

73747785879394

G.1.l Systems Subcontracting Exhibit 32 96G.1.m Performance and Quality Standards– Consulting Services Exhibit 33 97G.2 Specific Functional Areas 97G.2.a Staff Compensation Salary Survey Information Exhibit 34 97

See Financial Proposal Templates File for Exhibits 35a-35e and 36.

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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.

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3. The University: Organizational Structure and Related Websites

a. About the University of CaliforniaThe 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 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 DepartmentThe 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/

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http://www.universityofcalifornia.edu/


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.

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 PolicyThe 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 CompensationThe 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

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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 DesignThe Health and Welfare Policy and Program unit mission is to develop and maintain 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),

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http://www.universityofcalifornia.edu/news/compensation/


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 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 Managers1,000 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.

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http://www.universityofcalifornia.edu/news/ucrpfuture/welcome.html

http://atyourservice.ucop.edu/employees/retirement%20savings/index.html


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

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Statistical Information by functional area (cont)iv) Health and Welfare Policy and Program Design

Health and Welfare Program – Enrollment and Cost October 2006Campuses and Medical Centers

Plan Enrollment (1000’s)

Annual Premium (millions)

UC Annual Cost (millions)

Composite UC Annual Cost (dollars)

Medical SystemwideActiveRetired

137.3105.3 32.0

$879.1$729.5$149.6

$697.7$640.2$157.5

$5,810$6,082$4,916

DentalSystemwideActiveRetired

136.7104.1 32.6

$106.7$ 86.2$ 20.5

$106.7$ 86.2$ 20.5

$780$827$629

Vision 104.3 $16.9 $16.9 $162

UC paid LifeBasicCore

108.6 3.9

$6.3$0.2

$6.3$0.2

$58$ 6

UC Paid Temporary Disability

107.3 $7.9 $7.9 $74

Accident 55.2 $3.1 None None

LegalSystemwideActiveRetired

43.337.06.3

$5.4$4.6$0.8

None None

EE paid LifeEmployeeDependents

61.632.9

$1.4$0.5

None None

EE paid Disability 82.6 $24.0 None None

Flexible Spending

Dependent CareMedical

3.011.2

Annual Est. based on YTD

$13.5$19.2

None None

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Statistical Information by functional area (cont)

v) Retirement Policy and Planning

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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%

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%/yrDeaths 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 1,790Average Noncontributory balance $29,148 $27,402

[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.[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.

UNIVERSITY OF CALIFORNIA RETIREMENT PLAN (UCRP)

UCRP was established in 1961

UNIVERSITY OF CALIFORNIA HUMAN RESOURCES/BENEFITSUNIVERSITY OF CALIFORNIA RETIREMENT SYSTEM

SUMMARY OF PLAN DATA

0

20,00040,000

60,000

Def i ned Cont ri but i on Pl anMember Stat i st i cs

as of June 30, 2004

UCRP Membership Statistics as of

June 30, 2006

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2005 124,642 22,671 41,477

2006 122,317 25,570 45,442

Active Members Inactive Vested Members Retirees and Survivors

1.9%

12.8%

9.6%

UCRP Membership Statistics as of

June 30, 2006

Active Members 122,317(63%)

Inactive Vested Members

25,570(13%)

Retirees and Survivors 45,442 (24%)

Total membership as of 6/30/06 was 193,329[5] an increase of 2.40% from 6/30/05.

[1]


Statistical Information by functional area – Retirement Policy and Planning (cont)

Page 13 of 97

UC Core Funds $9,452,326,000 Fidelity Funds $2,932,196,000Calvert Funds $42,845,000 BrokerageLink $4,839,000

Grand Total $12,432,206,000

UNIVERSITY OF CALIFORNIA DEFINED CONTRIBUTION PLAN (DC Plan)

DC Plan Participants as of June 30: 2006 2005Active Pretax: UC Redirect 114,395 110,073 UC Safe Harbor 27,390 22,211Total Active Pretax 141,785 132,284Total Active After-tax 2,691 2,260

Total Inactive (Pretax and After-tax) 193,004 291,2692700 2700

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%UC Equity Fund $610,100,430 20% $1,496,486,923 50%UC Balanced Growth $186,958,655 6% $1,153,694,828 38%UC Insurance Company Contract (ICC) Fund $130,459,753 4% $258,964,543 9%

UC Bond Fund $92,318,352 3% $101,729,890 3%

TOTAL $3,010,876,184 100%

UNIVERSITY OF CALIFORNIA TAX-DEFERRED 403(b) PLAN (403(b) Plan)

403(b) Plan Participants as of June 30: 2006 2005 Active 61,673 52,078 Inactive 46,052 50,926 Average Monthly Contribution $641 $548

Loan Program: 2006 2005Outstanding Loans 10,917 10,289Outstanding Loan Principal (in millions) $81.8 $70.6


403(b) Elective Deferral Limit: [3] $15,500 / $20,500 $15,000 / $20,000

Accumulations: BALANCE % of TOTAL Top Holdings Amount % of TOTAL

UC Equity Fund $2,848,860,873 31%$5,412,971,257 59% UC Savings Fund $1,632,614,858 18%$1,786,077,641 19% UC Balanced Growth $771,892,289 8%$1,449,009,229 16% UC Bond Fund $647,598,519 7%

$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)

457 Plan Participants as of June 30: 2006 2005 Active 8,663 7,595 Inactive 1,234 618 Average Monthly Contribution $1,066 $1,422


457(b) Elective Deferral Limit: [3] $15,500 / $20,500 $15,000 / $20,000

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).

UNIVERSITY OF CALIFORNIA RETIREMENT SYSTEMRETIREMENT SAVINGS PROGRAM - SUMMARY OF PLAN DATA

UNIVERSITY OF CALIFORNIA HUMAN RESOURCES/BENEFITS

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 academicappointees 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 otherqualified plans.

UC RETIREMENT SAVINGS PROGRAM - TOTAL ASSETS

Data as of June 30, 2006, unless otherwise noted

The 403(b) Plan was established in 1969 and houses elective pretax contributions and rollovers from other qualified plans.

The 457 Plan was established in 2004 and houses elective pretax contributions and rollovers from other qualified plans.

Fixed Income Other [2]

FUND TYPE Money Market [1]

Mid/Large Cap Stock Fixed Income

Other [2]

FUND TYPE Mid/Large Cap Stock Money Market [1]

DC PLAN ASSET ALLOCATIONS BY FUND TYPE

Money Market [1]

Mid/Large Cap Stock

Fixed Income

Other [2]

457(B) PLAN ASSET ALLOCATIONS BY FUND TYPE

Mid/Large Cap Stock

Fixed Income

Money Market [1]

Other [2]

403(b) PLAN ASSET ALLOCATIONS BY FUND TYPE

Mid/Large Cap Stock

Money Market [1]

Fixed Income

Other [2]


e. List of all URL’s in RFP; Other URL’s of Interest:

URL Areawww.universityofcalifornia.edu. University home Pagehttp://www.universityofcalifornia.edu/regents/welcome.html The Regentshttp://ucop.edu/services/opdivisions.html Office of the Presidenthttp://www.universityofcalifornia.edu/senate/welcome.html Academic Senatehttp://www.ucop.edu/ucophome/coordrev/images/pdf/opchart.pdf President’s organization charthttp://www.ucop.edu/humres/ Human Resources and Benefits Department

HR/B Strategic Planhttp://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 websitehttp://atyourservice.ucop.edu/employees/health_welfare/index.html Information on UC’s Health & Welfare planshttp://atyourservice.ucop.edu/employees/retirement_savings/index.html Retirement & Savings Plans http://www.universityofcalifornia.edu/news/ucrpfuture/welcome.html Future of UC’s Retirement Planhttp://atyourservice.ucop.edu/employees/policies_employee_labor_relations/personnel_policies/index.html Employee and Labor Relationshttp://atyourservice.ucop.edu/employees/policies_employee_labor_relations/background/index.html HEERA definitionhttp://atyourservice.ucop.edu/employees/total_comp/index.html Total Compensationhttp://www.universityofcalifornia.edu/news/compensation/ UC Compensation Programshttp://atyourservice.ucop.edu/employees/policies_employee_labor_relations/compensation.html More Compensation informationhttp://www.cpec.ca.gov/ California Post-Secondary Education

Commission

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http://www.universityofcalifornia.edu/news/compensation/

http://www.universityofcalifornia.edu/news/ucrpfuture/welcome.html

http://atyourservice.ucop.edu/



B. Services to be Provided:

1. For all Functional Areas

a. General ConsultingProvide 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 PlanningConsultants 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 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 AnalysesConsultants 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” AdviceThis is a critical needs area as the University considers new options, directions and strategies for its HR/B programs and policies. Consultants must develop methodologiesand 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,

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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.

f. Costing, Oversight and Reporting ModelsConsultants 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 ProcessesConsultants 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.

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j. Meeting and Consultation SupportMeetings 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 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.

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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.

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 ManagementProject 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 MaterialsCommunication 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” StrategiesCompliance 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.

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o. Performance Standards – HR/B (OP & Local) and UC vendorsConsulting 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 (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. TrainingConsultants 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 SupportConsultants 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 ProjectsAd 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:

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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 Designi) Due Diligence – Consulting support for activities such as claims audits,

operational audits, verification of performance metrics, year-end accounting reviews.

ii) Renewal and Bids – Consulting expertise, actuarial support and technical tools for the annual plan renewals and for bidding processes or requests for information.

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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 Planningi) 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.

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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.

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a. Calendar of Activities

2007 Date(s) ActivityMar 26 RFP invitation issued to potential bidders; RFP posted on websiteApril 6 Noon PDST Intent to Bid Notification and Bidder’s Conference RSVP due to Kim

Blodgett either by e-mail, [email protected] 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 [email protected] 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 stepsJun – 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 ManagementOct 9 to Oct 15 Final interviews with Senior Management and other stakeholdersNov 1, 2007 Notice of intent to contractJan 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 RequirementsWhen 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 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.

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mailto:[email protected]


d. DisqualificationAny 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/ProposalsIf 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 ProposalsExcept 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.

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 [email protected]..

Communication: All process communication between UC HR/B and bidders MUST be made by email to [email protected]. When your email is received, a response will be made by email.

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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: [email protected] 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 [email protected] 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’ ConferenceBidders who may wish to submit a proposal must participate in a MANDATORY Bidders’ Conference by web cast. The purpose of this Bidders’ Conference will be to provide your organization with an opportunity to hear directly from University management with responsibility for this bid process regarding their strategy and objectives for this bid. You will be able to ask questions regarding the proposal requirements, University priorities, objectives of the bid and potential award scenarios. As noted above, detailed or technical questions (e.g., regarding how to respond to a particular question in the RFP) will be handled through [email protected] rather than during the bidder conference.

The format for this meeting will be a brief presentation by HR/B staff followed by an open question and answer session. This teleconference/web cast will be held April 11 from 10:30 a.m. to 12:30 p.m. pacific daylight savings time. Kim Blodgett will contact you with the call-in number upon receipt of your Notification of Intent to Bid and Bidder’s Conference RSVP. (Please refer to the calendar on page 23 of this RFP).

i. Site Visits – Systems & CommunicationsThe University expects to conduct site visits with selected bidders to evaluate their systems and communications capacity. Staffing, technology, variety of media and expertise in their use will be reviewed. If a bidder subcontracts any of these functions, the University will want to understand the scope of subcontracting and the bidder’s

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degree of oversight and control. It is expected that a bidder will assume any liabilities, losses and expenses related to services performed by a subcontractor under the bidder’s agreement with the University to the same extent as if the bidder had performed the services. If necessary to comply with federal or state law (including but not limited to the Health Insurance Portability and Accountability Act of 1996 and the California Information Practices Act) the bidder will obtain written confirmation of the subcontractor’s agreement to comply with applicable legal provisions to the same extent such provisions would apply to the bidder if the bidder had performed the services

The University also may ask to meet with the subcontractor(s).

In addition to standard site visits, UC may provide a window of time during which it may conduct unannounced site visits. Site visits may include the following: Interviews with supervisors and staff engaged in systems and/or communications

functions. Staff proposed to be dedicated to UC should be available for these interviews.

Review of materials and tools used by the staff. Review of hardware and software capacity

Site visits are at UC’s discretion; UC is not obligated to perform site visits before selection. UC may decide not to pursue site visits to any particular vendor if it determines that it has sufficient information to make its decision, for example, for an incumbent vendor where there has been a recent on-site review by UC or its consultants.

j. Selection ProcessWritten proposals will be evaluated by Office of the President staff. They will select top bidders who will be interviewed and make presentations, as well as conduct the interviews. This group, plus an advisory committee will evaluate the interviews and presentations and make recommendations to University management. University management will choose bidders for the consulting pool and determine which bidders will serve as the leads for ongoing work in each functional area.

The University will evaluate all bids properly submitted according to this RFP and reserves the right to reject any or all bids at their discretion. Proposals must be received no later than 12:00 p.m. (Noon PDST), May 8, 2007. Late bids and/or bids that are incomplete or do not meet the minimum requirements will be disqualified. The proposals may be reviewed by any persons internal or external to the University at the discretion of the University. The University also will check references, conduct site visits and interviews and require oral and written presentations to evaluate the bidder’s ability to provide the required services.

The bidder’s compliance with the requirements of this RFP shall be determined at the sole discretion of The Regents or their designated representatives.

The University reserves the right to use any or all suggestions or concepts presented in any reply to the bid specifications, interviews or presentations. Selection or rejection of the proposal does not affect this right, except where a specific agreement has been

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made in advance and in writing by the University and/or where proprietary information has been clearly identified and reserved. (See Confidential and Proprietary Information in Section C.3.c, p. 23.)

k. Final SelectionIn evaluating the proposals, price is not the sole factor. The organization submitting the proposal with the lowest estimated cost to the University will not necessarily be awarded the University’s business. An award, if made, will be based upon the University’s assessment of which organization can best satisfy its requirements. The University may consider any factors it deems necessary for best value, including but not limited to price, quality of service, systems capabilities, responses to this request, proposed contract terms and modifications, and general reputation. The University reserves the right to reject all bids.

The top bidders will be chosen from all the proposals received and these finalists will be interviewed and required to make up to three original oral presentations on topics chosen by the University. The University expects to interview the team you are proposing to serve as account managers and the bidder presentations must be made and interview questions answered by this team. Along with hard copies of these presentations, bidders must provide details on their development: staff who prepared them – their levels in the organization and hours spent in preparation, related expenses and fees using the Financial Proposal Templates File Exhibits 35a-e and 36, pp. 2-4 in the response to this RFP; plus any subcontracting details and costs. Presentation on each topic will be limited to twenty minutes. Bidders may begin with a single five-minute introduction of their organization and the account team.

These presentations will be made at HR/B’s Oakland office and are tentatively scheduled for the last week of September and the first week of October. Finalists will be informed of the time and place for the interview at least five (5) working days in advance and will have up to another (5) days to confirm their attendance. The bidder should be prepared to discuss current pertinent topics chosen by the University and to respond to questions. Commitments and representations made during the interview process must be confirmed in writing within one week of the interview, but no later than October 31, 2007, whichever is earlier. When the finalists are notified, they will be sent details of the interview and oral presentation requirements.

The University may ask for additional information as part of the evaluation process, for example, more detailed fee estimates. After the contract is awarded, the University reserves the right to negotiate amendments to the contract.

At the University’s discretion, any services in these bid specifications may be contracted to consultants other than the bidders awarded a contract for this bid.

l. Bid Inspection Bid inspections are allowed only after the University has awarded the contract. A request to inspect bids must be made in writing and delivered to the University’s Human Resources department within seven (7) calendar days after the award at the address provided above. Individuals may review those parts of the bids not deemed

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“confidential” by the bidder. Viewers may identify pages they wish to have copied and sent to them. Copies will be provided at ten cents per page.

m. Terms of Contract The University intends to award general contracts for Human Resources and Benefits consulting services 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 each contract may vary by successful candidate. At the end of the contract period, the University may either issue an amendment to extend agreements with bidders or choose to issue an RFP.

At its discretion, the University will choose bidders from this pool of consultants to provide services as the lead in a particular functional area. The University may also assign any particular project to one or more consultants in this pool. Consulting organizations will be required to work cooperatively on projects, whether they are the lead or another consulting firm is the project lead.

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D. Bidder Qualifications – Required MinimumsBidders must meet the required minimums in order to submit a proposal. If you cannot meet these requirements or do not choose to respond, please:

Submit Exhibit 6, page 35 (Original signature Required in blue). Do not submit Exhibits 1 through 5. Do not continue with Sections E and F.

1. Organization Size and Experience

a. Experience and IncomeBidding organizations must have:

A minimum of seven (7) years consulting experience in the functional area(s) being proposed;

At least $500 million in 2006 U.S.-based gross HR/B consulting revenues.

Your unqualified audited financials will be used to verify the revenue requirements.

NOTE: If you are proposing Compensation consulting services only, you must have a minimum of five (5) years consulting experience in that field and at least $250 thousand in 2006 U.S.-based gross compensation consulting revenues.

At least 20% of your U.S.-based gross consulting revenue from HR/B services; and prior significant experience providing compensation consulting services for at least one other higher education institution.

Assign a California-based team to the University account with experience providing Human Resources and Benefits (HR/B) consulting services to large clients, including at least one client with 50,000 or more employees.

NOTE: If you are proposing Compensation consulting services only, you must have at least one client with 10,000 or more employees.

b. EXHIBIT 1: Organizational Background

Limiting your responses to no more than two pages, please provide the following information about your organization.

What year was your organization founded? _____________

Primary business: What is your primary business (e.g., consulting, insurance, pension planning, brokerage, etc.?)

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Significant developments: Briefly describe any significant organizational developments for your business in the last 5 years (e.g., changes in ownership, personnel reorganization, consulting emphasis, etc.?)

Anticipated changes: Explain any anticipated ownership, structural or organization focus changes including how they impact service to new clients and existing clients.

Special resources, strategic alliances, skills or services: Briefly describe any that your organization has and how they could benefit the University.

Personnel: Based on the scope of services you anticipate proposing on, briefly describe the size and mix of personnel within your organization. Also give the percentage of employees and subcontractors if you use the latter.

c. EXHIBIT 2 – High Level Organization Chart: Please provide an organization chart showing the personnel you have described and their relationships within your firm, along with the location of their home office. Strong preference will be given to organizations with home offices and/or primary account staff located in California. The account team must have a California-based operational or managing partner as a contact for the University.

d. Contractual Requirements/Certificate of Insurance

Bidding organizations must meet the following contractual requirements concerning Patents, Copyrights, Consultant and General Liability Insurance. Please review them and, if your organization can meet these requirements, indicate by signing Exhibit 3 in blue on the signature line on page 33 and attaching Exhibit 3a.

i) PatentsIn the event a patentable invention is developed solely by University, its employees, or its agents or jointly between University and the Consultant, its employees, or agents under or in any manner related to this Agreement, federal patent laws and University’s Patent Policy applicable to University employees and agents shall govern such patentable invention or joint invention, unless the parties have agreed otherwise in a written amendment to this agreement.

ii) CopyrightAll written and other tangible material (“Material”) delivered pursuant to this agreement is considered a work-made-for hire under the Copyright Act. To the extent such Material does not qualify as a work-made-for hire, Consultant shall assign all right, title, and interest, including, but not limited to, copyright and copyright rights, in the Material to the University and shall execute any documents necessary to effectuate such an assignment. In the event Consultant uses any individual who is not a full-time employee of Consultant or any entity to perform any work required of it pursuant to this Agreement, Consultant shall require said individual or entity to sign an agreement containing identical wording as the foregoing with the exception that the word “Consultant” is to be replaced with the individual’s or entity’s name.

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iii) Consultants’ Liability and Insurance Requirements(1) Consultants must provide a level of indemnification to the University that is consistent with the services being provided. The framework for determining liability and limits on the amount of liability will be shared with bidders later in this process through an addendum to the RFP.

(2) The Recipient, at its sole cost and expense, shall insure its activities in connection with this Agreement and obtain, keep in force, and maintain insurance as follows:

(a) Commercial Form General Liability Insurance (contractual liability included) with limits as follows:

(i) Each Occurrences $2,000,000

(ii) Products/Completed Operations - $3,000,000 Aggregate

(iii) Personal and Advertising Injury $1,000,000

(iv) General Aggregate $2,000,000

(b) If the above insurance is written on a claims-made form, it shall continue for three (3) years following termination of this Agreement. The insurance shall have a retroactive date of placement prior to or coinciding with the effective date of this Agreement.

(c) Business Automobile Liability Insurance for owned, scheduled, non-owned, or hired automobiles with a combined single limit no less than one million dollars ($ I, 000,000) per occurrence if using automobiles in conducting research under this Agreement.

(d) Workers’ Compensation as required by California State law.

(e) Commercial Blanket Bond with a limit not less than the amount of grant funds provided by this agreement in Recipient’s possession at any one time covering all employees of Recipient, including coverage to protect money and securities as found in a Comprehensive Crime Policy.

(f) Such other insurance in such amounts which from time to time may be reasonably required by the mutual consent of The Regents and Recipient against other insurable risks relating to performance of the agreement.

(g) The coverages required under this Article shall not in any way limit the liability of the Recipient.

(h) The coverages referred to under (a) and (b) of this Article shall include The Regents as an additional insured. Such a provision, however, shall apply only in proportion to and to the extent of the negligent acts or omissions of Recipient, its officers, employees,

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and agents. A thirty (30) day advance written notice (10 days for non-payment of premium) to The Regents of any modification change, or cancellation of any of the above insurance coverages is required. Upon the execution of this Agreement, Recipient shall furnish The Regents with Certificates of Insurance evidencing Recipient’s insurance coverage and Additional Insured Endorsements demonstrating that The Regents are an additional insured on the applicable policies.

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Exhibit 3 – Contractual Requirements Agreement Exhibit 3a – Certificate of Insurance (Attach to this exhibit)

My organization agrees to the contractual issues relative to Patents, Copyrights and General Liability Insurance in D.1.d, i, ii, and iii (2) , above.

I am enclosing a Certificate of Insurance stating that my organization meets or surpasses the minimum coverage required by the University.

Signed Date

Typed/printed name Title

Name of your organization

Attach Certificate of Insurance

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c. Conflict of Interest/Litigation Issues

EXHIBIT 4 – Conflict of InterestExplain any potential for conflict of interest that would be created by your representation of the University, including, but not limited to, other client relationships that may inhibit services to the University on a primary basis. Explain your process for identifying and resolving potential conflicts (limit one page).

For example: are any of the members of your Board of Directors, any external consultants or your own staff affiliated in any way with the University of California, its faculty or staff, management or unions, now or in the past? If so, describe the relationship. Are any of these individuals involved in the preparation of your bid?

EXHIBIT 5 – Current and/or Previous LitigationPlease circle the appropriate answers, below or fill in the area as requested. If you are not bidding on a functional area, you may indicate “NA” in the grid.

Please answer the following questions for any litigation or disciplinary action your firm:Is now engaged in or was party to or subject to in the last five years, That involved a sum of $100,000 or more, or For which you are subject to any professional disciplinary action. If none of these circumstances apply, you may indicate NA.

Human Resources

Senior Management

Staff Compensation

Health & Welfare

Retirement

Are you in litigation (disciplinary action) related to your consulting services? (Circle one):

yes no

NA

yes no

NA

Yes no

NA

yes no

NA

yes no

NAIf yes, briefly state the issue (25 words or less).If yes,

a) What was the total award in the case, or

b) The potential liability if settlement is pending?

a)

b)

a)

b)

a)

b)

a)

b)

a)

b)

Is disciplinary action pending or has it been executed? (Y/N)

yes no

NA

yes no

NA

Yes no

NA

yes no

NA

yes no

NA

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2. EXHIBIT 6: Declination/Minimum Qualifications Form If you do not plan to submit a proposal, please return this form to Randolph R. Scott, University of California, Human Resources and Benefits, Attn: UC Consulting Bid, 300 Lakeside Drive, 5th Floor, Oakland, CA 94612.

If you do bid, you must include this form with your complete proposal with original signatures. Organization name:Street Address:P.O. Box (if available):City: State: Zip:Name of Contact Person: Title:Phone#: Fax#: Email:

My Organization will NOT submit a proposal:

Signature Date

Typed/Printed name Title

OR

My Organization IS submitting a proposal:Circle OneY N Does your organization meet all the required minimum qualifications

in Section D, beginning on p. 29?

Y N Do the personnel to be assigned to the University account have at leastSeven (7) years experience in the functional area(s) on which you will bid? (Five years experience if bidding on compensation services only).

Y N Are the personnel to be assigned to this account able and willing to travel?

Y N Are you able to meet the following anticipated 2007 deadlines to complete the Request for Proposal process?

April11 Bidders’ Conference May 8 Complete proposal dueJun-Aug: dates TBD Site Visits to your firmSep 26 to Oct 15 Full day for each finalists’ interviews/presentations

I, the undersigned, as the duly authorized representative of the responding organization, affirm that the answers to all the above questions and the information within Exhibits 1 through 5 are, to the best of my knowledge, truthful and accurate.

Signature Date

Typed/Printed name Title

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E. Instructions for Submitting a Proposal – If you do not meet the minimums described in Section D, beginning on p. 29, please do not submit a proposal; simply forward Exhibit 6, p. 35 indicating you will not submit a proposal.

1. General Guidance

Checklist: A checklist at the end of this section shows the exhibits that are required for a complete proposal and tells you how to label each exhibit.

Accessing and completing the RFP: The procurement website is a retrieval site only; it is not interactive. However, for your convenience, you may download the RFP and complete it on your own computers before duplicating it to send to the University.

The RFP is in two online files at the University’s procurement website: http://www.ucop.edu/purchserv/ucopbids.html

The Base RFP Exhibits 1 through 34 (Do not return the RFP itself; only the exhibits are your response.)

The Financial Proposal Templates Exhibits 35a through 35e and Exhibit 36

RFP Layout for bidder responsesSection D, beginning on p. 29 of this RFP provides the minimum bidder qualifications and contains Exhibits 1 through 6.

Section E.2, p. 37, provides details on all required documents and E.3, p. 37, gives you information on number of copies and required formats. . Exhibits 7 through 11 are in Section E, along with a checklist of exhibits on p. 41 to assist you in completing your proposal. Section E.4, p 42 gives the University’s contact information for this RFP.

Section F, beginning on p. 43 of this RFP provides detailed information about the conditions you agree to by making a proposal for any or all of the functional areas included. There are no Exhibits in this section.

Section G, beginning on p. 50 gives the areas to be evaluated in the bid process, plus questions for which the University needs written responses. Exhibits 12 through 34 are in this section.

You must follow the format, sequence and labeling system, as shown in each section. Failure to follow the required format may affect your overall rating. You may use the table of contents as a quick reference to the RFP format and numbering.

The separate Fee Proposal Templates file with Exhibits 35a-35e and 36 should be used for your responses to Consulting Services pricing information.

Having all bidders follow the same format creates a consistent and equitable platform from which to read and evaluate written proposals. It also makes it less likely that you will omit critical information.

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http://www.ucop.edu/purchserv/ucopbids.html


2. Bidder Documents Required for a Complete ProposalYour proposal (or bid) must contain the following material in the format required:

Cover Page – Your Company Name, Address, Email Address, Contact Name, Fax and Phone Number.

Table of Contents. Signed Contractual Requirements Agreement and Certificate of Insurance,

Section D.1.d.iii. (2) – Exhibits 3 and 3a, p. 33. Signed Declination/Minimum Qualifications Form, Section D.2 – Exhibit 6, p. 35. Signed Respondent Cover Sheet, Section E.3.a – Exhibit 7, p. 39 with Corporate

Resolution and Statement of Ownership – Exhibit 7a p. 40, attached. Other Required Documents:

o Exhibits 1, 2, 4, 5, 8, 9,10 (See table of contents for page numbers).o Exhibit 11 is due on May 22, 2007. The redacted copy of your

proposal response should exclude all information you identified as confidential in Exhibit 10 in your proposal and include only your composite fee proposal. See Section C.3.c, p. 23 for information on Confidential/Proprietary material.

o Exhibits 12 through 34 in Section G (See Table of Contents for page numbers).

Exhibits 35a - 35e, Exhibit 36 from the Financial Proposal Templates file.

3. Presentation of your Written ResponseUsing the required formats, submit each proposal as follows:

Copies.o 1 original hard copy with your responses to the Base RFP, Exhibits 1

through 34, and your proposed fees, Exhibit 35a-35e and Exhibit 36 of the Fee Proposal Templates file. Mark cover page “Original - Includes Fee Proposal.

Send only to Eleanor Skarakis at: University of California Human Resources and Benefits Attn: UC Consulting Bid 300 Lakeside Drive, 5th FloorOakland, CA 94612

The original copy also must have original signatures in blue ink on all required signature pages (Exhibit 3, p. 33, Exhibit 6, p. 35 and Exhibit 7, p. 39 in the base RFP and Exhibit 36 on p.4 from the Fee Proposal Templates file).

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o 7 hardcopies WITHOUT your fee proposal (Exhibits 35a-e, Exhibit 36) to the address below. Mark cover page on each “Copy - Does Not Include Fee Proposal.”

o 1 CD with your responses to the base RFP only. Do not include your responses to the Fee Proposal Templates file.

Do not staple (not even the original; use clamps or paperclips). You may use section dividers if you wish. Use:

o 8-x11 inch paper only.o Black type on white paper.o Simple font - size 12.o Single column only.o Double-sided format is preferred.

Original must have original signatures and be identified as “Original.”

Confidential proprietary information MUST be clearly marked “Confidential.” In addition, any information labeled “Confidential” also must be listed in the exhibit entitled “List of Confidential Information” located in Section E.3.e, EXHIBIT 10, p. 40.

You must include all exhibits and project samples as requested.

We appreciate your help in using this format.

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a. EXHIBIT 7 – Respondent Cover and Signature Sheet (Must be signed in blue and accompany your original RFP)

Proposal for the University of California Human Resources and Benefits Consulting Services – Beginning January 1, 2008

Respondent (Company Name):Employer Tax ID Number:Street Address:P.O. Box (if available)City: State: Zip:Contact Person: Title:Phone: Fax:Email: Other:

Indicate area(s) on which you are bidding. Indicate all that apply: Human Resources Policy Senior Management Compensation and Policy Staff Compensation Health and Welfare Policy and Program Design Retirement Policy and Planning

Company Legal Status:

Corporation S Corp LLC Sole Proprietorship Partnership

This serves as a binding agreement to all the terms and conditions specified in the RFP to which this proposal is addressed.

This bidding organization has obtained, completed and performed all registrations, filings, approvals, authorizations, consents or examinations required by a government or a government authority for acts contemplated by these specifications. _____ (Initial).

This bidding organization will sign a Business Associates Agreement (example on p. 77) with the University. _____ (Initial).

I, (We), the undersigned, as the duly authorized representative(s) of the respondent company, affirm that the information and statements contained within this proposal, to the best of my (our) knowledge, are truthful and accurate, and further, that I (we) am (are) duly authorized to submit this proposal from the respondent organization to deliver services. The corporate resolution, or other valid instrument, is attached as Exhibit 7a that certifies authority expressed.

Signature date Signature date

Print Name & Title Print Name & Title

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b. EXHIBIT 7a – Corporate Resolution/Statement of Ownership Provide your corporate resolution defining which individuals are authorized to act on behalf of your organization, along with your Statement of Ownership.

c. EXHIBIT 8 – Audited Financial Statements Provide a copy of your unqualified audited 2005 and 2006 (or 2004 and 2005 if most recent) financial statements. If your organization does not release its financial statements to the public, please provide references to confirm its financial credentials. If your organization is selected as a finalist during this bid process, would you make your audited financial statements available to the University on the understanding that the University will hold these documents in confidence unless compelled by law to disclose them, and will return them to your organization if it is not selected as a consultant?

d. EXHIBIT 9 – Last Five Years of Stability Ratings What is your organization’s financial stability, including financial rating for the past five years?

e. EXHIBIT 10 – List of Confidential Information

CONFIDENTIAL INFORMATION IN YOUR PROPOSALCompany Name:

Page Number Description of material

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f. Checklist of Required Proposal Exhibits (Please label them as shown in this checklist). Enclosed EXHIBIT# DOCUMENT RFP Page

BASE RFP1 Organizational background 292 High level Organization Chart 303

3aContractual Requirements agreement (Signature in blue)Certificate of Insurance

3333

4 Conflict of Interest 345 Litigation Issues 346 Declination/Minimum Qualifications Form (Signature in blue) 357

7aRespondent Cover Sheet (Signature in blue)Corporate Resolution/Statement of Ownership

3940

8 Audited Financial Statements 409 Last Five Years of Stability Ratings 40

10 List of Confidential Information 4011 Redacted RFP response and composite fee (due May 22, 2007) 4212 Areas on Which You Are Proposing 5113

13aSenior Management Compensation and Policy Account TeamTeam graphic – organization chart

53

14 14a

Human Resources Policy Account TeamTeam graphic – organization chart

54

15 15a

Staff Compensation Account TeamTeam graphic – organization chart

55

16 16a

Health and Welfare Policy and Program Design Account TeamTeam graphic – organization chart

56

17 17a

Retirement Policy and Planning Account TeamTeam graphic – organization chart

57

18 Required Resume Format for Account Team(s) 5819 Client and Professional References 6020 Additional Client References 6521 Project Sample cover sheet (attach one to each project sample) 6622 Experience with Boards of Directors, Governing Boards, etc. 6923 Collective Bargaining Experience 7124 Medical School/Hospital/Research Institution Experience 7225 HR Policy/Legislative/Regulatory Updates for Clients 7226 HR Policy/Legislative/Regulatory Tracking and Research 7227 Systems Security and Disaster Recovery 7428 Systems Database Structure 8529 Systems Reporting 8730 Systems Interoperability 9331 Systems Analytic Capability 9432 System Subcontracting 9633 Performance and Quality Standards 9734 Staff Compensation – Salary Survey Information 97

Financial Proposal Templates File 35a 35b 35c 35d 35e

36

Fee Proposal; Fixed Hourly RatesNon-Itemized Expenses Variable FeesCredits and Adjustment Policies and Procedures

Hypothetical Staffing Plan for a ProjectSignature page for fee proposal

233334

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g. Exhibit 11 – Redacted Proposal ResponseWithin two weeks after your proposal is submitted (no later than May 22, 2007), please provide a redacted copy to the University that will be used to meet any requests for inspection of the proposals.

If there is a request for bid inspection, the University will notify the bidder of the request. The University will determine whether, in its opinion, any of the information designated CONFIDENTIAL may be withheld under applicable law. If the University determines that the information is confidential, it will not disclose it. If there is legal action, the University may choose to defend the legal action or participate with the bidder in the defense of the action. However, if the University disagrees with the bidder’s confidential designation, the University will so notify the affected bidder and provide the bidder an opportunity to take appropriate legal action, at its own cost, to preclude disclosure of the information. If the bidder chooses not to take legal action, the University will disclose the information and will not be liable to the bidder for any alleged damages or loss.

4. University Addresses and Contacts

Email Address for bidder inquiries throughout the process: [email protected]

Website Address for the base RFP and the Financial Proposal Templates (retrieval only; not an interactive site):

http://www.ucop.edu/purchserv/ucopbids.html

Mailing and Delivery Addresses: For U S Mail Shipments/Fed Ex/Messenger Delivery

Randolph R. ScottUniversity of California Human Resources and Benefits Attn: UC Consulting Bid 300 Lakeside Drive, 5th FloorOakland, CA 94612

On arrival, please instruct your delivery person to call Kim Blodgett at 7-0173 from the hall phone next to the 5th floor entry doors. She will allow access to the floor.

Emergency: Eleanor Skarakis, Human Resources and Benefits, (510) 987-0888.

The deadline to submit your complete proposal is Monday May 8, 2007 at 12p.m. (Noon PDST)

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F. Bidding Requirements:1. For All Functional Areas –This section is organized into requirements that apply to all functional areas covered by the RFP, followed by items specific to each functional area (For all Functional Areas). The samples of University-required document formats/language are gray-shaded for your convenience.

a. Filings, Licensing, etc.Bidders must have obtained, completed and performed all required registrations, filings, approvals, authorizations, consents or examinations as needed to perform the services described in this RFP and any other services related to the functional area(s) on which proposals are made.

b. University’s Standard Consulting ContractHuman Resources and Benefits uses a standard format for consulting contracts. That format is currently under review. A sample contract will be issued as an amendment to the RFP later in this bid process.

c. Project Engagement Letter Format, Written Reports, Meetings The University uses a standard format for engagement letters for each consulting project. These must show understanding of the project, along with details on deliverables, timing and estimated hours/fees/expenses. Project scope and costs can only be modified with the consent of the University. A project number is assigned and all invoices for the work must include this project number to allow proper posting and tracking of costs. The engagement letter should identify the project lead, primary staff assigned to it and back up staffing, if any.

Engagement letters must be provided within 30 days after the project’s initiation and meet the above requirements and the format as shown. The University expects to establish performance standards and penalties for consultants around this process. A sample engagement letter follows on pp. 44-45 (gray-shaded).

Written reports: When requested, the consultant will provide a final written report that includes at least:

Project goal; issues reviewed. Background, methodology, data sources. Findings. Alternatives considered. Recommendations and costs. Estimated savings due to consulting activities, if any.

Meetings and Follow-Up: The consultant is responsible for timely follow-up on any issues raised in discussions and meetings, as well as documenting issues and outcomes. The consultant must have a qualified representative accessible to the University by telephone on the same working day as contact is made. The primary account team representative, lead consultants and other consulting staff must be readily available for meetings.

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Example: Engagement LetterEngagement Letter Format

UC PROJECT #05D-32: UC GASB VALUATIONS AND CONSULTING

General Project DescriptionBased on the upcoming implementation of Governmental Accounting Standards Board (GASB) Statements 43 and 45 related to retiree health benefit obligations, the University is evaluating its options for adopting these requirements and potential changes to the retiree health programs.

In support of this, XXX will prepare a baseline valuation of total liabilities and expenses, with additional valuations reflecting potential program changes. XXX will also prepare a draft presentation to the UC Board of Regents that will facilitate a discussion of the range of program changes for further evaluation. Finally, XXX will provide ongoing consulting to University financial leadership related to GASB implementation issues.Activities This project will consist of the following activities:

1. Prepare Baseline GASB Valuation as of (date). This will include the following steps, similar to other retiree medical valuations XXX performs for the University. To a significant extent, the data used for GASB purposes will be drawn from the same sources as other valuations. Collect member data and plan documentation for

valuation as of (date). Reconcile member data and prepare for valuation. Prepare health plan rates, using updated claims

experience for self-funded plans. Review valuation assumptions with the University.

Primary assumptions to be developed by XXX are the health plan rates and trends to be used, with others drawn from the valuation of University pension plans.

Document baseline valuation results, including total obligations and annual expenses under GASB.

Activities (continued)

2. Define Alternative Program Changes for Consideration and Prepare GASB Valuation Results. This will include: Discussions with the University to select the potential

changes to be valued. Preparing separate GASB valuation results for each

alternative considered, with results available for separate business entities within the University (Campus, Medical Center, DOE Labs, ASUCLA, and Hastings).

3. Prepare Draft Presentation for UC Board of Regents to Discuss Alternatives. XXX will prepare a draft presentation for the UC Board of Regents outlining financial implications of various options to address the new GASB requirements.

4. Provide Ongoing Consulting Related to Actuarial Issues Associated with the University’s GASB Implementation. As requested by the University, XXX will provide advice related to financial structure and other

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issues in implementing the new GASB requirements.Deliverables & Timing

Deliverable Timing

Baseline GASB Valuation Results December - January (year)

Draft UC Regents Presentation, with Valuation Results for Alternatives

February - April (year)

No. Of Meetings Up to four; the purpose of the meetings will be to: Review baseline valuation results and present

recommended alternative program designs; Review results for alternative program designs

and draft report for UC Board of Regents; and Review and discuss with the University issues

related to implementation of GASB within the University’s financial reporting structure.

Project lead/staffingEstimated Hours 762 to 857 hoursEstimated Fees & Expenses

Fees Expenses

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d. Invoice Format Human Resources and Benefits uses a standard format for consulting invoices. Invoices must include the project number assigned to the engagement letter for the project, the activities and time period covered by the invoice, total professional fees, total expenses (itemized if not a flat fee), and details of the staffing (hours, billing rate, total fees and activities and deliverables for which HR/B is being billed. A sample invoice follows on pp.47-48 (gray-shaded).

Consultant billings must be submitted in the agreed-upon format within 60 days after completion of project or of a defined task within a project. The University expects to establish performance standards and penalties for consultants around this process. The University reserves the right to discount billed amounts that are not received in the fiscal year in which the work was performed.

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Example: Invoice cover sheet

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Company Name

[Company/Name]Billing Office:

[BillingAddress Here]

Billing Address / Service at Location:University of California300 Lakeside Drive, 5th FloorOakland, CA 94612-3357

I N V O I C E

For Remittance only[Company / NameAddressCity / State/ Zip]

EFT: (Bank ABA# XXXXXXXAccount# XXXXXXX)

Facsimile (XXX) XXX-XXXXTaxpayer ID no. XX-XXXXXX

Invoice Number: XXXXXXX

Date: Today’s Date

Payment Terms: Due and Payable Upon Receipt

ATTN: Mr. Mark EstebanDirectorHRB – Health and Welfare Policy and Program Design

Reference: Project # XXXXXXXXXXXXXXX

For consulting services …Fees and expenses incurred from Date through Date

Professional Fees $ XX,XXXTotal Expenses $ X,XXX TOTAL $ XX,XXX

Total estimated professional fees $ XXX,XXXTotal professional fees billed to date $ XXX,XXX Net professional fees remaining $ XX,XXX


Example: Invoice itemization

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e. Consulting Account Team Staff ChangesThe University expects that the team(s) you propose in Exhibits 13-17, G.1.b, pp. 53-57, below will provide services for at least two (2) years. The University reserves the right to initiate and/or approve changes to the account team(s) and also requires advance notification of staffing changes.

f. Performance and Quality Standards – Consulting ServicesIn Exhibit 33 – Section G.1.m, p. 97, you are being asked to propose performance guarantees for your services.

g. Termination of a ContractThe University or the bidder may terminate the contract with 90 days advance notice by either party. If either the bidder or the University terminates the contract, the University will have the right to access the organization’s work files and work products related to University-commissioned services for up to ten (10) years from the date of final payment under the contract. Some items, such as plan calculations, must be kept indefinitely. When requested by the University or needed for a third party audit process, the consultant shall provide the University all records and information related to services performed under the Agreement in a mutually agreed upon format. The consultant shall be entitled to reasonable compensation from the University for the provision of such records or information, based on reasonable and customary charges for such services.

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G. Bidder Questions and Proposal Evaluation Criteria: The following categories will be considered in choosing the organization(s) to provide consulting and Actuarial analyses for the University’s Human Resources and Benefits Department. These questions and criteria are not exhaustive and may be revised by the University by addendum.

The basis for the award will be the lowest cost weighted by the quality of the bidding organization. After an organization meets the minimum qualification requirements in D.1, beginning on p. 29, the categories that will be considered are contained in the Exhibits in Sections E, p. 36, and G, beginning on this page, and agreement to the requirements in Section F, p. 43.

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2. General (For all Functional Areas) a. EXHIBIT 12 – Areas on Which You Are Proposing The grids below cover each major functional area of consulting services sought by the University. You may bid on all functional areas or any combination of them or on a single functional area. You must indicate whether or not you are bidding on a functional area, respond to the related questions and, in the next section, show the team that will be assigned to that area. If you are not bidding on a functional area, indicate “no” and leave the rest of the column blank.

EXHIBIT 12Which

consulting services are you

proposing?

HR Policy(Indicate yes or no)

Y or N

Senior Management(Indicate yes or no)

Y or N

Staff Compensation(Indicate yes or no)

Y or N

Health & Welfare(Indicate yes or no)

Y or N

Retirement(Indicate yes or no)

Y or NHow many years have you provided consulting services in the functional area for these employers?

Private

Public

Higher Education

Government

Research Institution

Hospital/Medical Ctr

Private

Public

Higher Education

Government



Private

Public

Higher Education

Government



Private

Public

Higher Education

Government



Private

Public

Higher Education

Government


Hospital/Medical CtrHow many years have you provided actuarial analyses in the functional area for these employers?

Private

Public

Higher Education

Government



Private

Public

Higher Education

Government



Private

Public

Higher Education

Government



Private

Public

Higher Education

Government



Private

Public

Higher Education

Government


Hospital/Medical CtrLead contact for services:a) nameb) positionc) geographic

location of this person

a)

b)

c)

a)

b)

c)

a)

b)

c)

a)

b)

c)

a)

b)

c)

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b. Account Team(s)/Account Team(s) LeadTeam Structure – Professional and technical staffingOnly team members to be assigned to the University contract should be shown in Exhibits 13 through 17 and 13a through 17a for each functional area.

Strong preference will be given to organizations whose proposed team(s) have a California-based home office. A team’s managing/operational partner should be California-based.

As you consider team assignments, you should be aware that the University projects require a higher level of participation from Senior partners and lead consultants than may be usual for other accounts.

Assignment and Accessibility of Account Team Lead: The bidding organization must assign to this account a partner or officer in a California-based office with authority to act on its behalf. This person must have at least seven years of experience as a principal consultant with the organization, and experience working with clients who have large employee groups including at least one client who has more than 50,000 enrolled employees. NOTE: If you are bidding for compensation services only, the account team lead must have at least five years experience as a principal consultant in this are and have worked with at least one client with 10,000 or more employees.

The organization(s) to whom the contract is awarded must have qualified representatives on the University account team(s) who will be available to make oral presentations and attend meetings at University locations, as required by the University on an ongoing basis.

NOTE: At its discretion, the University may initiate a team member change for a particular project or for the contract in general. The University also reserves the right to approve assignment of team members or leads. At least two weeks advance notification must be provided to the University when a team member will leave the organization or is to be reassigned.

EXHIBITS 13 through 17 – Please complete the following grid(s) for each service area on which you are bidding. If teams are the same, you may reference the first Exhibit.

EXHIBITS 13a through 17a – Provide a graphic representation of the personnel assigned to each service area on which you are bidding. Show team hierarchy, location and organizational relationships of team members, and their proposed responsibilities.

Following the grids, you will find a template for account team resumes – Exhibit 18 on pp 58 and 59. Using this template, please provide a resume for each account team member you identify in your proposal.

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EXHIBIT 13 – Proposed Consulting Services Team – Functional Area: Senior Management Compensation and Policy (Attach 13a, the organization chart for this team)Name Level* Years at

this levelYears with your org.

Degrees, certificates, etc.

Percent Time assigned to this team

Role on this team, key skills

Will this person leave the team in next 2 years? (Y or N)

Number of other clients; size of largest client

Geographic location of primary office for this person

(Lead)

*Level in your organization, e.g.: partner, actuary, subcontractor, manager, etc.

What is the location of the home office for this group? ___________________________

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EXHIBIT 14 – Proposed Consulting Services Team – Functional Area: Human Resources Policy (Attach 14a, the organization chart for this team)Name Level* Years at








(Lead)


What is the location of the home office for this group?___________________________

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EXHIBIT 15 – Proposed Consulting Services Team – Functional Area:Staff Compensation (Attach 15a, the organization chart for this team)Name Level* Years at








(Lead)



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EXHIBIT 16 – Proposed Consulting Services Team – Functional Area:Health and Welfare Policy and Program Design (Attach 16a, the organization chart for this team)Name Level* Years at








(Lead)


What is the location of the home office for this group?___________________________

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EXHIBIT 17 – Proposed Consulting Services Team – Functional Area:Retirement Policy and Planning (Attach 17a, the organization chart for this team)Name Level* Years at








(Lead)



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c. EXHIBIT 18 – Required Resume Format for Account Team(s)

For each individual team member, please create a resume using the following format.

Account Team Resume – p. 1Proposed Account TeamNameAddressTelephoneEmailCurrent Employer

Work History

Date(s) Employer Position Title

Primary Responsibilities (brief description)

Current EmploymentPosition before #1, abovePosition before #2, above

EducationDate(s)

of StudyDegree Date of

degreeEducational Institution

Study Field/Major

TrainingDate(s)

of StudyLicense,

Certificate, etc.

Date of license,

cert. Etc.

Educational Institution

Study Field

Special Skills and knowledge

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Account Team Resume – p. 2Specific Experience (check all that apply)Responses should indicate a key or major role.

1. Developing/drafting Human Resources Policy 2. Coordinating policy reviews 3. Designing best practices research tools 4. Analyzing best practices research results 5. Human Resources Policy projects at higher education institutions 6. Human Resources Policy projects at research institutions 7. Benefits projects at higher education institutions 8. Benefits projects at research institutions 9. Compensation projects at higher education institutions 10. Compensation projects at research institutions 11. Reviewing and benchmarking jobs to Market data 12. Conducting OFCCP analyses of salary data 13. Developing salary structures (e.g., step-based vs. open range) 14. Costing benefits designs 15. Costing salary proposals 16. Trending and forecasting

For each item checked in the above box, provide a one-line description of the project.

1. ____________________________________________________________

3. ____________________________________________________________

4. ____________________________________________________________

5. ____________________________________________________________

6. ____________________________________________________________

7. ____________________________________________________________

8. ____________________________________________________________

9. ____________________________________________________________

10. ____________________________________________________________

11. ____________________________________________________________

12. ____________________________________________________________

13. ____________________________________________________________

14. ____________________________________________________________

15. ____________________________________________________________

16. ____________________________________________________________

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d. Client and Professional References

In Exhibit 19, responses to items 11 through 22 should be related to major consulting engagements you completed for the client being referenced. These clients also serve as your references; however, you will be able to provide additional references on in Exhibit 20 on page 65.

Abbreviations/definitions used in these charts are:Sr. Mgmt Senior Management Compensation and PolicyHR Human Resources PolicyComp Staff CompensationH&W Health and Welfare Policy and Program DesignRetirement Retirement Policy and Planning

strategy strategic directions for client organization or divisionplan design medical or retirement plan benefit, total compensation, etc. communications strategies, tools, media, publicationsimplementation lead on installing strategy/design/communications operations administration – either client’s or vendor with which client contractsaudits review of client operations or client’s vendor operationschange mgt change managementpolicy assessment, benchmarking, research

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EXHIBIT 19 – Client and Professional References Item Largest Client 2nd Largest Client 3rd Largest Client 4th Largest Client 5th Largest Client 1 Employer or

Organization name 2 Contact person

(name, position, phone #)

3 Type of Employer (mark one)

Private GovernmentPublicAcademic - PublicAcademic-PrivateHigher Education

PrivateGovernmentPublicAcademic - PublicAcademic-PrivateHigher Education




4 California-based? Y or N Y or N Y or N Y or N Y or N 5 Number of staff you

assigned to client. 6 Years you have

served client (e.g., 2000-2006)

7 Current Client? (Y/N) 8 Did the client

terminate your contract? If so, Why?

9 Areas you provided consulting services for: (mark all that apply):

____ HR____ Sr Mgmt____ Comp____ H&W____ Retirement____ Other





10 What percent of your total consulting within each area is from California clients?

area ____ HR____ Sr Mgmt____ Comp____ H&W____ Retirement____ Other

area____ HR____ Sr Mgmt____ Comp____ H&W____ Retirement____ Other




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Item Largest Client 2nd Largest Client 3rd Largest Client 4th Largest Client 5th Largest Client11 Areas in which you

provided substantial legal advice?

____ HR____ Sr Mgmt____ Comp____ H&W____ Retire____ Other





12 Areas in which you provided substantial legal strategies?






13 Human ResourcesDid you complete a major project for this client involving:

__ strategy__ plan design__ communications__ Implementation.__ operations__ audits__ change mgmt___policy





14 How many employees were affected by your work in #13?

15 Senior MgmtDid you complete a major project for this client involving:






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Item Largest Client 2nd Largest Client 3rd Largest Client 4th Largest Client 5th Largest Client16 How many

employees were affected by your work in #15?

17 Staff CompDid you complete a major project for this client involving:







19 Health&WelfareDid you complete a major project for this client involving:







21 RetirementDid you complete a major project for this client involving:






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Item Largest Client 2nd Largest Client 3rd Largest Client 4th Largest Client 5th Largest Client22 How many

employees were affected by your work in #21?

23 How many of the following does this client have? a) Collective bargaining agreements? b) Hospitals? c) Medical schools? d) Research Institutions? e) Academic employees?

a)

b)

c)

d)

e)

a)

b)

c)

d)

e)

a)

b)

c)

d)

e)

a)

b)

c)

d)

e)

a)

b)

c)

d)

e)

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EXHIBIT 20 – Additional Client References Your five largest clients provided above are your references one through five. You may provide additional references in the chart below.

Client #6 Client #7 Client #8 Client #9Employer or OrganizationYears you have served this client (2000 – 2006; 2001 to date, etc.)Is this a current client?Contact person (name, position, phone #)Type of Employer (mark one)

PrivateGovernmentPublic




California-based? (Y/N)Number of staff you assigned to this clientType of consulting services you provided

____HR____Sr Mgmt____Comp____H&W____Retirement____Other




Number of client’s employees considered in your consulting project

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e. Exhibit(s) 21 – Research and Report Capabilities; Project Samples and Cover SheetBidders will be evaluated on their ability to do complex, customized research and provide the University with comprehensive oral and written reports that are usable for a variety of audiences.

Please provide your project sample(s) along with the Project Sample Cover sheet on the following page.

Provide one report sample for each functional area on which you are bidding. If you are bidding on all functional areas, provide five samples – one for each area. If you are bidding only on Compensation, provide one sample for that area. If you are bidding on a subset of the functional areas, provide samples for those areas. Some examples of topics are:

Functional Area Example of Project SampleHuman Resources Policy 1. Benchmarking

2. Research and assessment3. Compliance analyses and

implementation4. “Best practices” study of moving

expenses/relocation allowances.Senior Management Compensation and Policy

1. Annual reports for compliance purposes.

Staff Compensation 1. Assessing a systems application purchase for compensation uses.2. Installing/customizing a system for compensation analyses.

Health & Welfare Policy and Program Design 1. Retiree health plan design and funding

2. Move to new health plan choices3. Introducing consumer models4. Design and implementation of 24

hour disability coverageRetirement Policy and Planning 1. Compliance analyses and

implementation2. Administration/operations

assessment and redesign Project samples should demonstrate:

Task, methodology, recommendations, organizational development techniques and expertise

Innovation, creativity and original thought. Ability to recognize the client’s environment and create relevant solutions. Ability to customize solutions for specific needs and desired outcomes. Quality processes that are built into your recommendations. Means to motivate commitment to the implementation process. Sophisticated communications packaging and presentation.

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EXHIBITS 21a, 21b, 21c, 21d, 21e – Project Sample Cover Sheet (Completed form should be no more than one sheet; attach to each project sample):

Exhibit 21___ – Project Sample Cover SheetProject start and end dateProject Goal (25 words or less)Key Deliverables (25 words or less)End product (report, plan design, etc.)Project staffing – position level; % time on projectType of client Private

Public Higher Education Government Research Institution Hospital or Medical Center Other (specify)_____________________

Size of population impactedPopulation type:

Represented by a Union? Faculty/Academic Y or N Professional Y or N Clerical Y or N Other (specify) Y or N

Research resources; do you have or use: In -house databases? Regular, periodic surveys? Customized surveys? Interviews with client representatives? Interviews with other employers?

Y or NY or NY or NY or NY or N

How long was the development period? Research Phase Analysis and Recommendation Phase Report Creation Report delivery

Start End

Who were the audiences for the project report(s)? Executive Mid Management Affected population News media External stakeholders (e.g.,

Oral Written Y or N Y or NY or N Y or NY or N Y or NY or N Y or N Y or N Y or N

If the report included oral presentations, what level person in your organization did the presentations?Identify the project quality standards and how well they were met. (25 words or less)What project elements demonstrate its relevance to this RFP? (25 words or less)Were your recommendations implemented?If yes:How long was the implementation period?Did you manage the implementation?Was the implementation successful?

Start End

Y or NY or N

If your recommendations were not implemented, why? (25 words or less)

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f. Presentation and Communications Skills (oral & written)Your project samples, plus the site visits, interviews and presentations built into this process all will be used to evaluate your ability to meet the needs described in Section B.1.m, p. 18.

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g. EXHIBIT 22 – Experience with Boards of Directors, Governing Boards, Executive Leadership GroupsBecause consultants must work closely with the University’s Board of Regents, their subcommittees and individual Regents, strong experience with organizational leaders is critical. The questions below should be answered based on experience with leadership groups similar to the Regents e.g., Board of Directors, Governing Board, Executive Leadership Group, Other similar group (specify).If more than four of your proposed team members have this experience, use copies of this Exhibit form to document it.

Has this person: Functional Area/Team Lead Other team member Other team member Other team memberArea/NameMade presentations to:

Board of Dir Gov Board Exec Leaders Other (specify)_________ Subcommittee Subcommittee chair Individual leader

Board of Dir Gov Board Exec Leaders Other (specify)__________ Subcommittee Subcommittee chair Individual leader



Engaged in major projects for:





Done research for: Board of Dir Gov Board Exec Leaders Other (specify)_________ Subcommittee Subcommittee chair Individual leader




Done evaluation or assessment studies for:





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Has this person: Functional Area/Team Lead Other team member Other team member Other team memberDeveloped recommendations for:





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h. EXHIBIT 23 – Collective Bargaining Experience

How many major consulting projects have you done in a unionized environment in the past five years?

_______________________________________________(Number of consulting projects in a unionized environment)

Relate answers for the following questions to your most significant two projects of this type.

ITEM Project A Project B

1Project start and end dates

2 What type of employer engaged you for the project?

Private Public Higher Education Government Research Institution Hospital or Medical CenterOther (specify)_________________

Private Public Higher Education Government Research Institution Hospital or Medical CenterOther (specify)_________________

2What functional areas did this project involve?

Human Resources Policy Senior Management Staff Compensation Health and Welfare Policy

and Program Design Retirement Policy and

Planning

Human Resources Policy Senior Management Staff Compensation Health and Welfare Policy

and Program Design Retirement Policy and

Planning

3Number of unions; Percent of total employer population

Number Percent Number Percent

4Each union’s membership; type (hospital, academic, service, clerical, etc.)

# Employees & Type # Employees & Type

5Project key deliverables (25 words or less)

6If you made recommendations, were they implemented?

Y or N Y or N

7If not, why not? (25 words or less)

8Did you make oral presentations to the following in the course of this project?

Company Executives Union leadership Union members Other

Company Executives Union leadership Union members Other

9Did you provide communications materials to be used by management?

During a “status quo” period?

During contract renewals As part of ongoing

labor/management communication?

During a “status quo” period?

During contract renewals As part of ongoing

labor/management communication?

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i. EXHIBIT 24 – Medical School/Hospital/Research Institution Consulting Experience

How many years have you provided consulting services to a hospital or medical school?Are you currently providing these services?How many years have you provided consulting services to a major research institution?Are you currently providing these services?What functional areas are you servicing for the client(s)?

___Human Resources Policy___Senior Management___Staff Compensation___Health and Welfare Policy and Program Design___Retirement Policy and Planning

How many hospitals contract for your consulting services?How many of these hospitals are California-based?What is the largest hospital for which you provide these services?How many research institutions contract for your consulting services?How many of these research institutions are California-based?What is the largest research institution for which you provide these services?

j. Access to State and Federal Legislative Arenas/HR Policy Research The University requires its consultants to proactively notify and advise it on Federal and California legislative, regulatory and legal changes in the functional areas covered by this RFP.

EXHIBIT 25 – HR Policy/Legislative/Regulatory Updates for ClientsPlease provide a one page or executive-level example of your federal and/or state legislative /regulatory client reporting or notices for clients.

The University also may require assistance with full cost analyses of the impact of proposed legislation or other mandates. Analyses usually will be requested with three weeks lead-time but occasionally within 24 hours.

EXHIBIT 26 – HR Policy/Legislative/Regulatory Tracking and ResearchHow do you research and track developing legislation? (25 words or less)How do you research and track regulatory and tax changes? (25 words or less)Do you have a lobbyist in Washington, DC?What percent time does your lobbyist work?Do you have a lobbyist in Sacramento, CA?What percent time does your lobbyist work?

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k. Systems and Data Base Capabilities Consultants will be asked to provide extensive analytic support to the University, making state-of-the-art systems and databases critical to success in this area. Projects also may involve exchanging data with HR/B and/or with its vendors or other consultants. NOTE: Descriptions requested in these exhibits should be no more than one page per item; preference is given to succinct responses (e.g., 25 words or less).

The Comparison 8 and Comparison 26 universities referred to in items 51 through 53 are the education benchmark institutions used by the University for a variety of Surveys and reports, as well as in planning and program design. They are:

Comparison 26 Institutions of Higher Education 1 Brown University 2 California Institute of Technology 3 University of Chicago 4 University of Colorado, System 5 University of Colorado, Boulder 6 Columbia University 7 Cornell University 8 Harvard University (Comparison 8) 9 Johns Hopkins University10 University of Illinois, Chicago11 University of Illinois, Urbana (Comparison 8)12 Massachusetts Institute of Technology (Comparison 8)13 University of Michigan (Comparison 8)14 University of Minnesota, System15 University of Minnesota, Duluth16 University of Minnesota, Twin Cities17 Northwestern University18 University of Pennsylvania19 State University of New York, Buffalo20 State University of New York, Stony Brook (Comparison 8)21 Stanford University (Comparison 8)22 University of Texas, Austin23 University of Virginia (Comparison 8)24 University of Washington25 University of Wisconsin, Madison26 Yale University (Comparison 8)

Even if you subcontract for systems support, please answer all questions in Exhibits 27 through 31. pp. 74- 95. You will be asked for information on subcontracting in Exhibit 32 p. 96.

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EXHIBIT 27 – Systems Security and Disaster RecoveryCurrently Available

Available w/ Customization

Level of Effort to Customize

Description of Product

Item Description of Requirement Yes No Yes NoSecurity – Human Resources and Benefits (HR/B) information is highly confidential and must be protected from unauthorized access and use. Security of data is of utmost importance to the University. Certain types of information are considered protected data and laws and policy govern how they are stored and used. Any application must conform to these laws and policies and be able to restrict access to database segments by user roles. 1 Describe how your solution

implements security – both unauthorized access and restricted access by role.

2 Does your application comply with all privacy policies under HIPAA?

3 Does your application comply with the California Information Practices Act, most notably SB 1386?

4 Do you have a security expert on your team?

5 Can specific data elements such as Social Security Number and date of birth be further secured within the database? If so, how is this done?

6 Do you have the ability to provide for security communication channels, either for emails or document exchanges? Please describe in brief.

7 Can you electronically redact sensitive information (such as name, social security number and employee number) from both electronic and paper reports?

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Currently Available




Item Description of Requirement Yes No Yes No8 How do you ensure secure

transmission of data to/from clients?

9 Does the application have built in functionality for auditing data access and changes? If yes, please describe any limitations to this functionality.

10 Does the proposed solution provide logging capabilities? If yes, please provide logging formats and logging reports available.

11 Can third party tools (example: Brio, Cognos, Access, Crystal Reports) accessing the database use the security rules configured in the application?

12 Can you provide for security channels of access if UC uses a third party tool?

13 Is your software certified by any third-party security certification process or audit?

14 What are your policies on preventing loss of client data on laptops that can be lost or stolen?

15 Does your company have a secure site for data storage?

16 Has your company experienced any data loss or data exposure in the last five years? If so, describe in brief.

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Currently Available




Item Description of Requirement Yes No Yes No17 Does your company employ the

use of Intrusion Protection tools?

18 Does your company certify that all UC data will be held and processed within the borders of the United States and that the data will not be transferred outside of the country either by vendor or subcontractor?

19 Does your company have a disaster recovery plan used to ensure business resumption within a reasonable timeframe?

20 Does your company maintain back-up data in an off-site facility? If so, is it a secure facility? Provide the name of the off-site facility.

21 Do you agree to sign the University’s standard Business Associates Agreement (see example on the following pages 77 to 84)?

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EXAMPLE – HIPAA BUSINESS ASSOCIATE AGREEMENT

This HIPAA Business Associate Agreement ("BA Amendment") supplements and is made a part of the Agreement, including supplements and amendments thereto ("Agreement"), entered into by and between The Regents of the University of California, a California corporation, on behalf of its University of California Health Plans (“UNIVERSITY”) and ________________________ (“BUSINESS ASSOCIATE") and is effective as of ____________________________. 17.18. RECITALS

A. UNIVERSITY and BUSINESS ASSOCIATE desire to protect the privacy and provide for the security of Protected Health Information used by or disclosed to BUSINESS ASSOCIATE in the course of providing services under the Agreement, in compliance with the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), and regulations promulgated thereunder by the U.S. Department of Health and Human Services (45 C.F.R. §§ 160, 162 and 164, the “HIPAA Regulations”) and other applicable laws and regulations. The purpose of this BA Amendment is to satisfy certain standards and requirements of HIPAA and the HIPAA Regulations, including 45 C.F.R. part 164.504(e), as they may be amended from time to time.

B. BUSINESS ASSOCIATE provides services, arranges, performs or assists in the performance of healthcare activities of UNIVERSITY employees, retirees, and dependants and whose actions or functions may involve the use or disclosure of Protected Health Information (as that term is defined herein) in the course of such service under this Agreement, pursuant to the HIPAA Regulations, 45 C.F.R. part 160.103.

C. UNIVERSITY may disclose to BUSINESS ASSOCIATE certain information, some of which may constitute Protected Health Information, in the course of carrying out the terms of the Agreement.

Therefore, intending to be legally bound hereby, the parties agree as follows:

1. EFFECT OF AMENDMENT . To the extent that the terms of the Agreement are inconsistent with the terms of this BA Amendment, the terms of this BA Amendment shall control.

2. DEFINITIONS .

2.1 “Information System” is an interconnected set of information resources under the same direct management control that shares common functionality. A system normally includes hardware, software, information, data, applications, communications, and people, and shall have the meaning given to such term under HIPAA and the HIPAA Regulations, including 45 C.F.R. part 164.304.

2.2 "Protected Health Information" or "PHI" is any information, including Electronic PHI, whether oral or recorded in any form or medium: (i) that relates to the past, present, or future physical or mental condition of an individual; the provision of health care to an individual; or the past, present or future payment for the provision of health care to an individual, and (ii) that identifies the individual or with respect to which there is a reasonable basis to believe the information can be

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used to identify the individual, and shall have the meaning given to such term under HIPAA and the HIPAA Regulations, including, but not limited to 45 C.F.R. part 160.103.

2.3 “Electronic PHI” is PHI that is transmitted by or maintained in electronic media and shall have the meaning given to such term under HIPAA and the HIPAA Regulations, including 45 C.F.R. part 160.103.

2.4 “Security Incident” is the attempted or successful unauthorized access, use, disclosure, modification, or destruction of information or interference with system operations in an Information System, and shall have the meaning given to such term under HIPAA and the HIPAA Regulations, including 45 C.F.R. part 164.304.

In consideration of the mutual promises made below and the exchange of information under the BAA Agreement, the parties agree as follows:

3. RESPONSIBILITIES OF BUSINESS ASSOCIATE .

3.1 Permitted Uses and Disclosures. BUSINESS ASSOCIATE may use and/or disclose PHI received by BUSINESS ASSOCIATE in its capacity as BUSINESS ASSOCIATE of UNIVERSITY under this BA Amendment pursuant to the Agreement and this BA Amendment solely for the purpose of performing its obligations under the Agreement and this BA Amendment.

3.2 Disclosure of PHI. BUSINESS ASSOCIATE may, if necessary, use PHI (i) for the proper management and administration of BUSINESS ASSOCIATE’s business or (ii) to carry out BUSINESS ASSOCIATE’s legal responsibilities.

3.3 Nondisclosure of PHI. BUSINESS ASSOCIATE is not authorized and shall not use or further disclose UNIVERSITY’s PHI other than as permitted or required under the Agreement or this BA Amendment, or as required by law or regulation.

3.4 Safeguards. BUSINESS ASSOCIATE shall development implement, maintain and use appropriate administrative, technical and physical safeguards (i) to protect the confidentiality, integrity and availability of UNIVERSITY’s Electronic PHI and (ii) to prevent any use or disclosure of UNIVERSITY's PHI other than as provided by the Agreement and this BA Amendment. BUSINESS ASSOCIATE shall protect UNIVERSITY’s PHI and information received from or created on behalf of UNIVERSITY according to commercially acceptable standards and no less rigorously than it protects its own confidential information.

3.5 Security Incidents and Actual or Suspected Uses or Disclosures Not Permitted by this BA Amendment.

3.5.1 Right of UNIVERSITY to Accounting or Audit. If UNIVERSITY receives credible information that there has been a Security Incident or any actual or suspected use or disclosure of UNIVERSITY’s PHI not permitted by this BA Amendment, upon UNIVERSITY’s request BUSINESS ASSOCIATE shall provide, at BUSINESS ASSOCIATE’S

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expense, an audit or written accounting of BUSINESS ASSOCIATE’s uses and disclosures of UNIVERSITY’s PHI.

3.5.2 Notification. BUSINESS ASSOCIATE shall notify UNIVERSITY in writing within five (5) days after BUSINESS ASSOCIATE becomes aware of any Security Incident or discovers any actual or suspected use or disclosure of UNIVERSITY’s PHI not permitted by this BA Amendment. BUSINESS ASSOCIATE shall be deemed to be aware of any Security Incident or of any such actual or suspected use or disclosure which is known to its officers, employees, agents and subcontractors. BUSINESS ASSOCIATE shall take (i) prompt corrective action to remedy any Security Incident or any such actual or suspected use or disclosure and (ii) any action required by applicable federal and state laws and regulations pertaining to such Security Incident or unauthorized disclosure.

3.5.3 Accounting or Audit of BUSINESS ASSOCIATE’S Uses and Disclosures of PHI. If UNIVERSITY determines that the written notice does not provide sufficient assurances that the Security Incident or unauthorized use or disclosure of UNIVERSITY’s PHI has been remedied, then within fifteen (15) days following UNIVERSITY’s request, BUSINESS ASSOCIATE shall provide an audit or accounting of all uses and disclosures by BUSINESS ASSOCIATE or by BUSINESS ASSOCIATE’S Agents of UNIVERSITY’s PHI.

3.5.4 Notification of Corrective Action and Provision of Policies. Within twenty (20) days after any discovery of a Security Incident or any actual or suspected use or disclosure of UNIVERSITY’s PHI not permitted by this BA Amendment, BUSINESS ASSOCIATE will provide written notice to UNIVERSITY in evidence of corrective action it has taken to mitigate the effects of such disclosure. Notification shall include: (i) the actions taken by BUSINESS ASSOCIATE to mitigate any harmful effect of such Security Incident or unauthorized use or disclosure and (ii) the corrective action BUSINESS ASSOCIATE has taken or shall take to prevent future similar Security Incidents or unauthorized use or disclosure. Upon UNIVERSITY’s request, BUSINESS ASSOCIATE will also provide to UNIVERSITY a copy of BUSINESS ASSOCIATE’s policies and procedures that pertain to the Security Incident or the unauthorized use or disclosure of UNIVERSITY’s PHI, including procedures for curing any material breach of this BA Amendment.

3.5.5 UNIVERSITY’s Right to Terminate. If BUSINESS ASSOCIATE fails to provide the accounting or audit in a timely manner, or if UNIVERSITY is not satisfied that the corrective action is sufficient to reasonably prevent similar occurrences in the future, UNIVERSITY may terminate the Agreement, in accordance with section 5, below.

3.6 Individual’s Request for Restrictions of PHI. BUSINESS ASSOCIATE shall notify UNIVERSITY in writing within five (5) business days after receipt of any request by individuals or their representatives to restrict the use and disclosure of the PHI BUSINESS ASSOCIATE maintains for or on behalf of UNIVERSITY.

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Upon written notice from UNIVERSITY that it agrees to comply with the requested restrictions, BUSINESS ASSOCIATE agrees to comply with any instructions to modify, delete or otherwise restrict the use and disclosure of PHI it maintains for or on behalf of UNIVERSITY.

3.7 Individual’s Request for Amendment of PHI. BUSINESS ASSOCIATE shall inform UNIVERSITY within five (5) business days after receipt of any request by or on behalf of the Plan participant who is the subject of the PHI to amend the PHI that BUSINESS ASSOCIATE maintains for or on behalf of UNIVERSITY. BUSINESS ASSOCIATE shall, within twenty (20) calendar days after receipt of a written request, make the subject’s PHI available to UNIVERSITY as may be required to fulfill UNIVERSITY's obligations to amend PHI pursuant to HIPAA and the HIPAA Regulations, including, but not limited to, 45 C.F.R. part 164.526. BUSINESS ASSOCIATE shall, as directed by UNIVERSITY, incorporate any amendments to UNIVERSITY’s PHI into copies of such PHI maintained by BUSINESS ASSOCIATE.

3.8 Individual’s Request for an Accounting of Disclosures of PHI. BUSINESS ASSOCIATE shall, within twenty (20) calendar days after receipt of a written request, make available to UNIVERSITY, and, if authorized in writing by UNIVERSITY, to the subject of the PHI, such information maintained by BUSINESS ASSOCIATE or its agents as may be required to fulfill UNIVERSITY’s obligations to provide an accounting for disclosures of UNIVERSITY’s PHI pursuant to HIPAA and the HIPAA regulations, including, but not limited to, 45 C.F.R. part 164.528.

3.9 Access to PHI by the Individual. If UNIVERSITY determines that a designated record set is held solely by BUSINESS ASSOCIATE or if BUSINESS ASSOCIATE is acting on behalf of UNIVERSITY to provide access to or a copy of the designated record set, BUSINESS ASSOCIATE shall, within five (5) calendar days after receipt of a written request, make available to UNIVERSITY, and, if authorized in writing by UNIVERSITY, to the subject of the PHI, such information as may be required to fulfill UNIVERSITY ‘s obligations to provide access to or provide a copy of the designated record set of UNIVERSITY’s PHI pursuant to HIPAA and the HIPAA regulations, including, but not limited to, 45 C.F.R. part 164.524.

3.10 Regulatory Compliance. BUSINESS ASSOCIATE shall make its internal practices, books and records relating to the use and disclosure of PHI received from UNIVERSITY (or created or received by BUSINESS ASSOCIATE on behalf of UNIVERSITY) available to any state or federal agency, including the U.S. Department of Health and Human Services, for purposes of determining UNIVERSITY’s compliance with the HIPAA Regulations.

3.11 Inspection of Records. Within thirty (30) calendar days after a written request, BUSINESS ASSOCIATE shall make available to UNIVERSITY during normal business hours all records, books, agreements, policies and procedures relating to the use and/or disclosure of UNIVERSITY’s PHI for purposes of enabling UNIVERSITY to determine BUSINESS ASSOCIATE’s compliance with the terms of this BA Amendment.

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3.12 Examination by University. UNIVERSITY and its authorized agents or contractors, may examine BUSINESS ASSOCIATE's facilities, systems, procedures, and records as may be necessary to determine the extent to which BUSINESS ASSOCIATE's security safeguards comply with HIPAA, the HIPAA Regulations, or this BA Amendment.

3.13 Compliance with Law. In connection with all matters related to this BA Amendment, BUSINESS ASSOCIATE shall comply with all applicable federal and state laws and regulations, including but not limited to the HIPAA Regulations, 45 C.F.R. parts 160, 162 and 164, as they may be amended from time to time.

4. BUSINESS ASSOCIATE’S AGENTS . Other than as expressly authorized herein, BUSINESS ASSOCIATE will provide UNIVERSITY’s PHI only to persons or entities, including subcontractors, that have an agency relationship to BUSINESS ASSOCIATE and that have been approved in advance by UNIVERSITY (“Agents”). BUSINESS ASSOCIATE will provide PHI to Agents solely for the purposes of carrying out the Agreement. Furthermore, BUSINESS ASSOCIATE shall:

4.1 Ensure that such Agents, including subcontractors, agree with BUSINESS ASSOCIATE in writing to implement reasonable and appropriate administrative, physical, and technical safeguards to protect the confidentiality, integrity and availability of UNIVERSITY’s Electronic PHI, hold the PHI confidentially and use or disclose the PHI only as required by law or for the purpose it was disclosed to the Agent.

4.2 Require such Agents to notify BUSINESS ASSOCIATE within five (5) calendar days after any Security Incident or after any actual or suspected use or disclosure of UNIVERSITY’s PHI not permitted by this BA Amendment, of which such Agent or its officers or employees become aware. Business agent shall notify UNIVERSITY or direct Agent to notify UNIVERSITY within five (5) calendar days of this disclosure or security incident.

4.3 Provide to UNIVERSITY within twenty (20) business days after the notification in Section 4.3 written notice of the actions taken by BUSINESS ASSOCIATE to mitigate any harmful effect of the unauthorized use or disclosure by the Agent and what corrective action BUSINESS ASSOCIATE has taken or shall take to prevent any future similar Security Incident or unauthorized use or disclosure of PHI.

4.4 Assure that the Agent has destroyed or returned all UNIVERSITY’s PHI to UNIVERSITY or BUSINESS ASSOCIATE as required in section 5.2. upon a material breach or termination of the Agent’s contract with BUSINESS ASSOCIATE. If the Agent maintains that return or destruction is infeasible, BUSINESS ASSOCIATE shall promptly notify UNIVERSITY in writing the reason the Agent cannot return or destroy UNIVERSITY’s PHI.

4.5 Be responsible for assuring that the Agent protects the PHI as otherwise required in the Agreement and this BA Amendment and as required by law.

5. TERMINATION AND OTHER REMEDIES .

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5.1 Material Breach. A breach by BUSINESS ASSOCIATE or BUSINESS ASSOCIATE’s Agents of any material provision of this BA Amendment, as determined by UNIVERSITY, shall constitute a material breach of the Agreement. UNIVERSITY, upon written notice to BUSINESS ASSOCIATE describing the breach, may take any of the following actions:

5.1.1 Provide an opportunity for BUSINESS ASSOCIATE to cure the breach;

5.1.2 If UNIVERSITY receives information pertaining to a suspected breach, UNIVERSITY has the right to request of the BUSINESS ASSOCIATE an audit or written accounting of all BUSINESS ASSOCIATE’s or BUSINESS ASSOCIATE’s agent’s, including subcontractor’s, uses and disclosures of UNIVERSITY’s PHI, and/or a third party review of the outcome of the process to be implemented to cure the breach;

5.1.3 Terminate the Agreement unless BUSINESS ASSOCIATE, within a time period specified by UNIVERSITY provides to UNIVERSITY a plan to cure the breach and, within a time period specified by UNIVERSITY, cures the breach;

5.1.4 Terminate the Agreement immediately if UNIVERSITY determines that BUSINESS ASSOCIATE has breached a material term of this BA Amendment and cure of the breach is not feasible;

5.1.5 BUSINESS ASSOCIATE shall submit to a plan of monitoring and reporting by UNIVERSITY or UNIVERSITY’s agents if UNIVERSITY determines it is necessary to assess BUSINESS ASSOCIATE’s compliance with the Agreement;

5.1.6 Notice to Secretary. If UNIVERSITY knows of a pattern of activity or practice of BUSINESS ASSOCIATE that constitutes a material breach or violation of BUSINESS ASSOCIATE'S obligation under this BA Amendment, if the breach or violation continues, and if termination of this BA Amendment or the Agreement is not feasible, UNIVERSITY is required by the HIPAA regulations to report the problem to the Secretary of Health and Human Services.

5.2 Effect of Termination – Return or Destruction of PHI held by BUSINESS ASSOCIATE or BUSINESS ASSOCIATE’s Agents. Upon termination, expiration or other conclusion of the Agreement for any reason, BUSINESS ASSOCIATE shall return or, at the option of UNIVERSITY, destroy all PHI received from UNIVERSITY, or created and received by BUSINESS ASSOCIATE on behalf of UNIVERSITY in connection with the Agreement, that BUSINESS ASSOCIATE or its Agents still maintains in any form, and shall retain no copies of such PHI. Not less than thirty (30) calendar days after the termination of the Agreement, BUSINESS ASSOCIATE shall both complete such return or destruction and certify in writing to UNIVERSITY that such return or destruction has been completed.

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5.3 Return or Destruction Not Feasible. If BUSINESS ASSOCIATE represents to UNIVERSITY that return or destruction of UNIVERSITY ‘s PHI is not feasible, BUSINESS ASSOCIATE must provide UNIVERSITY with a written statement of the reason that return or destruction by BUSINESS ASSOCIATE or its Agents is not feasible. If UNIVERSITY determines that return or destruction is not feasible, this BA Amendment shall remain in full force and effect and BUSINESS ASSOCIATE and its agents shall continue to extend indefinitely the protection of this Agreement to such information and immediately terminate any further use or disclosure of such PHI.

5.4 Other Remedies. Notwithstanding the foregoing rights to terminate the Agreement, UNIVERSITY shall have such other remedies as are reasonably available at law or equity, including injunctive relief.

6. CHANGES TO THIS BA AMENDMENT .

6.1 Compliance with Law. The parties acknowledge that state and federal laws relating to electronic data security and privacy are rapidly evolving and that changes to this BA Amendment may be required to ensure compliance with such developments. The parties specifically agree to take such action as may be necessary to implement the standards and requirements of HIPAA, the HIPAA Regulations and other applicable state and federal laws relating to the security or confidentiality of PHI.

6.2 Negotiations. In the event of a change in or interpretation of any state or federal law, statute, or regulation which materially affects the rights or obligations of either party under the Agreement or this BA Amendment, the parties agree to negotiate immediately in good faith any necessary or appropriate revisions to the Agreement or to this BA Amendment. If the parties are unable to reach an agreement concerning such revisions within the earlier of sixty (60) calendar days after the date of notice seeking negotiations or the effective date of a change in law or regulation, then either party may immediately terminate the Agreement upon written notice to the other.

7. INDEMNIFICATION .

7.1 Indemnification by BUSINESS ASSOCIATE. BUSINESS ASSOCIATE agrees to defend at UNIVERSITY’s election, indemnify, and hold harmless UNIVERSITY, its officers, agents or employees from and against any and all claims, liabilities, demands, damages, losses, costs and expenses, (including costs and reasonable attorneys' fees) or claims for injury or damages that are caused by or result from the acts or omissions of BUSINESS ASSOCIATE, its officers, employees, agents and subcontractors with respect to the use and disclosure of UNIVERSITY’s PHI.

7.2 Indemnification by UNIVERSITY. UNIVERSITY agrees to defend at BUSINESS ASSOCIATE’s election, indemnify, and hold harmless BUSINESS ASSOCIATE, its officers, agents and employees from and against any and all claims, liabilities, demands, damages, losses, costs and expenses, (including costs and reasonable attorneys' fees) or claims for injury or damages that are caused by or result from the acts or omissions of UNIVERSITY, its officers, agents or employees with respect to the use and disclosure of UNIVERSITY’s PHI.

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8. MISCELLANEOUS PROVISIONS .

Notices. Any notices to be given to either party shall be made via U.S. Mail or express courier to the address given below and/or via facsimile to the facsimile telephone numbers listed below.

If to BUSINESS ASSOCIATE, to: With a copy (which shall not constitute notice) to:

__________________________ ____________________________________________________ ____________________________________________________ __________________________

Attention: _________________ Attention: _________________

If to UNIVERSITY, to: With a copy (which shall not constitute notice) to:

University of CaliforniaHealth and Welfare Policy and University of California Program Design Health and Welfare Policy and300 Lakeside Drive, 5th Floor Program DesignOakland, CA 94612-3557 300 Lakeside Drive, 5th Floor

Oakland, CA 94612-3557Attention: Mark Esteban, Director

Attention: Christine Dobrushin, Coordinator

__________________________________________________________________________

IN WITNESS WHEREOF, the parties hereto have duly executed this BA Amendment.

The Regents of the University of California ____________________________

____________________________ ____________________________Signature Signature

__________________________ ____________________________Printed Name Printed Name

__________________________ ____________________________Title Title

__________________________ ____________________________Date Date

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EXHIBIT 28 – Systems Database StructureIncluded in

ProductAvailable w/

CustomizationLevel of Effort to Customize


Item Description of Requirement Yes No Yes NoDatabase Structure – Database structure – While the University does not dictate the database system a vendor uses, it does require that the system meet the highest industry and enterprise standards.22 a) What is the primary

database used by your organization? b) Provide name, manufacturer and version.c) What date was it installed?

a)

b)

c)

23 Is the primary database considered relational?

24 Is access to the primary database distributed to the team who will be attached to UC?

25 Do you use an electronic process to manage bids?Is the bid process web based?Would UC Analysts have web access to the database?Does the process allow for Q&As to be posted to web site for all bidders to view?Does the process allow for different views based on roles?

26 Do you maintain a database for managing contracts/renewals?Is the renewal process web based?Would the database be available to UC analysts?Does the database include all contract/renewal documents?

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Included in Product




Item Description of Requirement Yes No Yes No27 Do you employ a document

management system?

Would that system be usable by UC?

28 Are all final documents and data maintained in an electronic format?

29 UC is considering implementing it’s own e-RFP system, Do you currently have clients with their own e-RFP system? Have you been able to integrate it with your system?

30 Do you have a tool to develop and maintain policy reviews?Is it web based?Can it be used to gather input from UC constituent groups?

31 Do you have a web-based tool for sharing HR, Benefits, Retirement and other related policies with the UC community?

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EXHIBIT 29 – Systems Reporting

Included in Product




Item Description of Requirement

Yes No Yes No

Reporting – The University requires a robust reporting system capable of both standard (stock) reports and user generated ad hoc reports.32 Please indicate report

generators used by your company.

33 What language(s) or procedural packages are used to generate standard reports?

34 What language(s) or procedural packages are used to generate ad hoc reports?

35 Can standard reports be customized by UC?

36 Will UC analysts have direct access to the database for generating reports?

37 Is training provided to UC employees in the use of the ad hoc reporter? If so, what is the length of a standard training class (in hours)?

38 Must a copy of the database reside on the user’s workstation to generate reports?

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Currently Available




Item Description of Requirement Yes No Yes No39 Do you have the ability to

rapidly produce complex reports in a variety of different formats such as the health rate charts (See following pp 89-92)?

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Example: Health Plan Rates for Employees Earning under $43,001

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Example: Health Plan Rates for Employees Earning $43,001 to $86,000

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Example: Health Plan Rates for Employees Earning $86,001 to $129,000

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Example: Health Plan Rates for Employees Earning over $129,000

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EXHIBIT 30 – Systems Interoperability

Included in Product





Yes No Yes No

Interoperability - The successful vendor must be able to send data to and receive data from the University in a format acceptable to the University. The University expects direct access to data residing at the vendor's site.40 Do you have the ability to

receive read, process and send comma-delineated and tab-delineated data?

41 Do you have the ability to receive, read, process and send Excel spreadsheets?

42 Do you have the ability to receive, process and send Access files

43 Do you have the ability to read and translate the data contained in an X12 834, version 4010 Enrollment file?

44 Do you have the ability to read and translate the data contained in an X12 820 Premium files

45 Can you electronically receive data files of over 300,000 records with 100 data elements, each?

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EXHIBIT 31 – Systems Analytic Capability NOTE: (Items 51 through 53: Comparison 8 and Comparison 26 data are defined on page 73, above.)

Included in Product





Yes No Yes No

Analytic capability. – The University of California requires strong analysis of issues via robust and industry leading analytical tools.46 What primary statistical

package(s) does your company use? Provide name, manufacturer and version.

47 Can you conduct past, present and future modeling on a variety of employee data elements for a population of 200,000 active employees?

48 Do you currently conduct salary surveys?

What type (Senior Management, Nurses, Clerical, etc.)? Please list.

49 Can you conduct online (web) surveys and analyze the results?

50 Do you currently maintain salary-benchmarking data?

51 Do you currently collect Comparison 8 data?

52 Do you currently collect Comparison 26 data?

53 Do you agree to provide UC access to

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Included in Product





Yes No Yes No

Comparison 8/26 data?54 Do you currently collect

employee benchmark data for large California employers?

55 Do you agree to give UC access to your employee benchmark data?

56 Do you currently merge (electronic) employee demographic data with health utilization information (such as pharmaceutical records) for a population of 150,000?

57 Do you routinely merge utilization information from multiple sources (health plan, pharmaceutical, mental health) for plans with 300,000 members?

58 Do you routinely merge data sets with different file structures such as an access database with a mainframe produced comma delineated file?

59 Do you provide benefits modeling software to your clients?

60 Do you provide a market-pricing tool to your clients?

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Exhibit 32 – Systems Subcontracting

Do you subcontract for any of the services described in items 1-60 (yes or no)?_______________

If yes, please complete the following chart.

Systems service you subcontract (one-line description and corresponding item# in 1 to 60, above)

Who is the subcontractor? How long have you used this subcontractor?

Where is this subcontractor located?

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l. EXHIBIT 33 –Performance and Quality Standards – Consulting ServicesYour overall plan for maintaining quality performance is an important part of consulting services that the University may use. The University intends to negotiate key performance measures and amounts at risk with the bidders chosen for the University’s pool of consultants. These agreements will be added to the consultants’ contracts.

Please provide a very brief answer to each of the following questions.

Do you have formal, documented processes throughout your organization? What tools/methods do you use to measure the quality of those measures?If a standard is not met, how do you evaluate the cause and correct the problem?Would you negotiate 3-5 annual performance guarantees with the University?Please propose 3-5 annual performance guarantees and the amounts you would put at risk for each.

2. Specific Functional Areas

a. EXHIBIT 34 – Staff Compensation Salary Survey Information

What salary surveys does your firm subscribe to?How would you charge the University for using these surveys for market research?What salary survey tools do you offer?Briefly describe how you design and conduct custom salary surveys. (25 words or less)Do you conduct regularly scheduled surveys? How often (annual, bi-annual, etc.)How many employers are included in your regular survey?What size employers participate in your regular survey?What type employers are in your regular survey?What type employees are in your regular survey?

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