Project Executive Compensation Project - 2
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- Oswald Maxwell
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1 Project Executive Compensation Project General Information Citizens Energy Group Citizens Energy Group (Citizens) operates as a Public Charitable Trust engaged in a variety of businesses including: 1.1 Citizens Gas - a local distribution company (LDC) transporting natural gas to nearly 266,000 customers in and around Indianapolis. Citizens Thermal - a district steam heating and chilled water cooling provider serving businesses and industrial facilities across the Downtown Indianapolis area. Citizens Oil - a producer of oil in Greene County Indiana Citizens Water - owner and operator of the drinking water and wastewater systems serving Indianapolis and Central Indiana Citizens Resources - a wholly owned subsidiary engaging and investing in various energyrelated businesses. 2. Purpose 2.1 Purpose Citizens is issuing this Request for Proposal (RFP) to solicit proposals from qualified firms to provide the services described herein. 2.2 Point of Contact This RFP is issued on behalf of Citizens by the Supply Chain Department which is the sole point of contact during the procurement process. 2.3 Non-binding Request for Proposal Conveyance of this form does not constitute an offer to buy and shall not be legally binding on Citizens Energy Group.
2 Project Description Provide Executive Compensation & Executive Benefits: Executive Compensation : 2.4 Annually, Citizens Energy Group, through an outside supplier, performs a market survey on executive compensation levels. This includes base salary, a variable pay program (called the Short Term Incentive Plan or STIP), and a long term incentive plan. This data in the study is then weighted, with 75% consisting of utility industry data generated by an American Gas Association Executive Compensation Survey, and the remaining 25% consisting of general industry data generated by the Supplier. Our objective is to pay at "market" competitive rates, including base pay and incentive pay. Positions surveyed include corporate and operational levels at Vice President and above. Executive Benefits : In conjunction with the review of Executive Compensation, a comparable review of Executive Benefits is required. This review should consider insurances, pensions, and perquisites 3. Instructions to Participants 3.1 SmartSource Citizens is utilizing the SmartSource application to manage this request process. Information shall be exchanged, and proposals submitted via the SmartSource application. Non-compliance with this request will be viewed as non-responsive and result in disqualification. 3.2 Contents of Proposal All attachments, additional pages, addenda, or explanations supplied by the Respondent with this proposal will be considered as part of the proposal response.
3 3.3 Non-conforming Terms and Conditions A response that includes contractual terms and conditions that do not conform to Citizens contractual terms and conditions (as provided herein) is subject to rejection as non-responsive. Citizens, in its sole discretion, may permit a Respondent to identify and request exceptions to Citizens contractual requirements prior to making a determination of responsiveness. 3.4 Alternate Proposals An alternate proposal is viewed by Citizens as a proposal describing an approach to accomplishing the requirements of this solicitation which differs from the approach set forth in the request. An alternate proposal may also be a second proposal submitted by the same Respondent which differs in some degree from it's primary proposal. To be considered, alternate proposals must meet or exceed the requirements of the RFP. Citizens reserves the right to consider or reject any or all alternate proposals submitted. 3.5 Reservations The issuance of this RFP shall not commit Citizens to award a contract, to pay any costs incurred in the preparation of a response to this RFP, or to procure or contract for services or supplies. Citizens reserves the right to accept or reject any or all proposals received as a result of this RFP, to waive minor irregularities in the procedure, to negotiate with any qualified source, or to cancel in part or in its entirety, this RFP, if it is in the best interest of Citizens to do so. The Supply Chain Department may require the Respondent selected; to participate in negotiations, and to submit such price, technical or other revisions in it's proposal as may result from the negotiations. 3.6 Amendment of Proposals Citizens reserves the right to allow proposals to be amended in response to further clarification, specifications and/or requirement changes, new opening date, etc. No proposal may be amended after the proposal due date unless requested by Citizens. 3.7 Withdrawal of Proposals Proposals may be withdrawn only in total, and only by a written request to the Supply Chain Department, prior to the time and date scheduled for opening of proposals. 3.8
4 Supplier Diversity: Strengthening a diverse business community economically contributes to the overall economic growth of our markets. Citizens Energy Group supports the identification, development and utilization of minority, women, and veteran owned business enterprises as part of its purchasing program. Our intent is to support economic development efforts within these business sectors to the extent that jobs may be provided, entrepreneurship may be advanced, and useful goods and services may be produced at competitive prices. Citizens Energy Group has adopted participation goals of 15% for MBE, 8% for WBE and 3% for VBE in the purchasing of goods and services. At its discretion, Citizens may assign participation goals greater than 15% for MBE, 8% for WBE and 3% for VBE. Respondents are expected to make a best effort in meeting or exceeding the goals and shall detail their effort and success in attaining or exceeding those goals with respect to this RFP. The Respondent shall identify the proportion, amount, and source of material/equipment/services and (second tier only) the sub-consultants, sub-contractors, suppliers or lessors he/she intends to directly utilize. Further, the Respondent shall confirm that the diverse firms are currently certified (in the respective business trades to be utilized) as a Minority-owned, Woman-owned, or Veteran owned Business Enterprise by one of the following certifying authorities: State of Indiana-Department of Administration, City of Indianapolis, Indiana Minority Supplier Development Council, Women's Business Enterprise National Council, National Women Business Owners Corporation and the Veterans Administration (only with City of Indianapolis VBE certification included). Diversity Submission Requirements: Citizens Energy Group (CEG) reserves the right to independently verify the certification status of any MBE, WBE, or VBE firm proposed to be utilized by a contractor or professional consultant as a sub-consultant, sub-contractor or supplier. CEG accepts authentic, current and unexpired MBE, WBE and VBE Supplier Diversity Program Certifications from the following sources: 3.9* City of Indianapolis Department of Minority & Womens Business Development (DMWBD) State of Indiana Indiana Minority Supplier Development Council (IMSDC) Women Business Enterprise National Council (WBENC) All responses to this solicitation must include, as attachments, copies of the authentic, current and unexpired certification(s) from any of the appropriate sources for all the MBE, WBE, and VBE firms proposed to be utilized as sub-consultants, sub-contractors, or suppliers. Any response submitted without the authentic, current and unexpired certification, from one of the above noted sources, may result in the response being rejected and deemed nonresponsive. MBE/WBE/VBE Certifications Attached NOTE: Lack of appropriate attachments could be grounds for disqualification of an RFP response. Attachments: Attach a file to this answer
5 3.10 Supplier Qualification Factors such as but not limited to, quantity involved, time of completion, purpose for which required, competency and financial capacity of Respondent, ability to render satisfactory service and past performance will be considered in determining status as a responsible respondent. Citizens reserves the right to request additional information as may be required to make this determination and to further investigate the qualifications of the Respondent as deemed appropriate. 3.11* Community Investment CEG is interested in understating your firm commitment to community investment. Attach a list of your community investment as a percentage of your income for the past three years as reported on your Federal tax returns. Also, include a list of the Indiana organizations benefiting from your giving. Attachments: Attach a file to this answer Optional Comments: 3.12 Ownership of Materials All proposals and attachments provided thereto shall become the property of Citizens and shall not be returned to the Respondent Proposal Costs Any and all costs incurred by the Respondent in the preparation and delivery of its proposal and/or subsequent negotiation of a resulting Agreement shall be borne entirely by the Respondent.
6 3.14 Oral Presentations Respondents may be required to give an oral presentation of its proposal at Citizen's request. Evaluation and Selection The evaluation and selection of proposals shall be based on the information called for in this RFP and in oral presentations (if requested). Selection can be made without discussion with respondents. Therefore, respondents are cautioned that proposals should be submitted initially on the most favorable terms, from both a technical and cost standpoint. Selection shall be based on the highest value and responsive proposal from the best qualified respondent When determining whether a proposal is responsive, Citizens will consider the following: Conforms to instructions Conforms to specifications When determining whether a respondent is best qualified, Citizens will consider the following: Citizen's prior experience with the respondent Ability and capacity of the respondent Integrity, character, and reputation of the respondent Competence and experience of the respondent Financial position and capacity of the respondent Commitment to Supplier Diversity Price Resources Respondent's committment to community investment and community involvement 3.16 Clarifications Respondents are expected to raise any questions, exceptions, or additions they have concerning this RFP prior to the submission of a proposal. If a Respondent discovers any significant ambiguity, error, conflict, discrepancy, omission or other deficiency within this RFP, the Respondent should immediately notify Citizens of such error and request modification or clarification of the RFP. In the event that it becomes necessary to provide additional clarifying data or information that revises any part of this RFP, supplements or revisions will be provided to all recipients of this RFP. 3.17
7 Proposal Submission The person submitting this Proposal represents and warrants that he/she is an officer of the Respondent and is duly authorized to submit this Proposal for Respondent, or if not an officer, is duly authorized by an authorized officer of the Respondent to submit this proposal for Respondent. (no answer) Yes No 4. Project Information Company Background Vision: We will fulfill the promise of the Trust to serve our customers and communities with unparalleled excellence and integrity. Mission: To contribute to the affordability and quality of life in our communities: " Safe, reliable services " Low rates and sound financial management " Building and renew the Trust " Good stewards of the environment 4.1 Values: " Quality " Teamwork " Diversity " Integrity " Safety Key Work Systems " Customer Satisfaction " Operational Excellence " Community Collaboration " Efficiency and Value " Financial Integrity " Employee Engagement " Performance Management Citizens is the Department of Public Utilities of the City of Indianapolis, operates several
8 utilities as a public charitable trust, and has multiple entities for which the Executive Group is responsible (see chart attached). Although Citizens is a department of the city, it has a largely independent governance structure (e.g. self-perpetuating Board of Trustees that selects the Board of Directors); nonetheless, it is a governmental entity in terms of benefit plans and union relations. See for additional information. Org Flowchart - CEG Utilities _draft v7 Scope of Work The Consultant selected will work directly with the Compensation Committee and/or the Board of Directors and select members of the Management Team. The Consultant will need to provide approximate costs/hours associated with each scope of work item and any assumptions made in determining costs/hours; along with the a starting/ending timeline. While most work can be done offsite, private interviews and televised board meeting presentations (Indy.Gov website Channel 16) in Indianapolis may be necessary monthly 1. Labor Market and Compensation Philosophy Recommendation: Review of current Labor Market and executive compensation philosophy, based on Mission, Vision and Values This will likely require onsite interviews with individual Compensation Committee members and Management Executive Base Pay Recommendation (fy 2014, October 1 - September 30) Based on position job description, pay philosophy recommendation and appropriate market survey benchmarks 3. Short Term Incentive Recommendation (fy 2014) Appropriate measures/targets based on our regulatory environment, Mission, Vision and Values Percent of base pay by position 4. Executive Incentive (a/k/a 'Long Term' Incentive) Recommendation (Next Cycle is for 2015 and 2016) Appropriate measures/targets based on our regulatory environment, Mission, Vision and Values Percent of base pay by position 5. Total Remuneration Study Includes all aspects of benefits, including Pension, Restoration, Severance, 457B, etc 6. Recommend adjustments or additional measures to incentive plans and/or benefit plans, as
9 needed 5. Detailed Requirements Requirements 5.1 Experience working with non-profit and for profit organizations Experience with regulated utilities Experience with municipal utilities or co-ops, preferred Dedicated relationship manager(s) Adhoc requests Willingness to travel for board meetings up to 3 times per year (Indianapolis, Indiana) Company Overview Acceptance of CEG Terms a nd Conditions Project Team and Firm Experience Project Team 5.2* Describe the project team that will perform the Executive Compensation Recommendations and Remuneration Study. The project team should consist of individuals with significant experience in relevant areas such as non-profit and for profit organations, as well as regulated utilites and municipal utilities. Describe personnel, including the names and resumes of the proposed project manager (single point of contact) and key team members that will perform the services related to this engagement. Describe the educational background, professional certification, related experience, and unique skill set that support the selection of the team members. Firm Experience Describe your company history and market experience. Describe recent engagements where similar services have been provided. Please use the space below to upload the Project Team and Firm Experience Attachments: Attach a file to this answer
10 Optional Comments: 6. Schedule 6.1 Respondents Questions Pleae use the FORUM to post questions. A Citizens representative wil respond to all questions in the SmartSource tool. 6.2 Responses Due Responses are due electronically by December 2, Response Due Binders Please provide a BINDER of all of your responses. Please mail to 1220 Waterway Blvd. Indianapolis, IN Attn: Kris Lang These are due by December 3, 2013 (prefer morning deliver). 7. Pricing Summary 7.1* Services - Pricing Please provide hours and associated costs for each item. As well as the Starting/Ending Timeline. Hours Costs Starting/Ending Timeline
11 1. Labor Market and Compensation Philosophy Recommendation: Review of current Labor Market and executive compensation philosophy, based on Mission, Vision and Values o This will likely require onsite interviews with individual Compensation Committee members and Management 2. Executive Base Pay Recommendation (fy 2014, October 1 - September 30) Based on position job description, pay philosophy recommendation and appropriate market survey benchmarks 3. Short Term Incentive Recommendation (fy 2014) o Appropriate measures/targets based on our regulatory environment, Mission, Vision and Values o Percent of base pay by position 4. Executive Incentive (a/k/a 'Long Term' Incentive) Recommendation (Next Cycle is for 2015 and 2016) o Appropriate measures/targets based on our regulatory environment, Mission, Vision and Values o Percent of base pay by position 5. Total Remuneration Study o Includes all aspects of benefits, including Pension, Restoration, Severance, 457B, etc 6. Recommend adjustments or additional measures to incentive plans and/or benefit plans, as needed * Red cells are required Optional Comments:
12 7.2 Fee not Included Outline all fees in an attachment that are NOT included (including the hourly rates for those services provided on a time and expense basis) Attachments: Attach a file to this answer Optional Comments: 8. Other Sub-Consultants and Contracted Labor 8.1 Other Sub-Consultants and Contracted Labor Subcontractor / Material Provider Respondent is required to identify any Sub-consultants and/or Contracted Labor to be engaged on this project. Identify the name of the company; the general scope of work or materials they will provide; whether the Sub-consultants and/or Contracted Labor is a minority, woman, or veteran owned business respectively. Scope of Work $ Amount MBE? WBE? VBE? (please select) (please select) (please select) (please select) (please select) (please select)
13 (please select) (please select) (please select) (please select) (please select) (please select) (please select) (please select) (please select) 9. Summary 9.1* Prices Are prices and rates firm for the completion of the Work? (no answer) Yes No 9.2* Expiration Date Please enter the expiration date of this proposal. In no event shall the proposal expire prior to 90 days after the proposal is submitted? 9.3* Taxes As Owner is exempt from sales and use taxes, do you affirm that all prices offered are exclusive of Indiana State sales and/or use taxes? (no answer) Yes
14 No 9.4* General Terms and Conditions Have you reviewed the terms and conditions as specified in the CEG Agreement attached hereto also found on the ATTACHMENT portion of this survey? Master Professional Services Agreement_ (no answer) Yes No 9.5* General Terms and Conditions Exceptions Do you have any exceptions to the general terms and conditions as identified in the CEG Agreement attached hereto? If yes, please identify the exceptions in the space provided. Alternatively you may attach a document (General Terms and Conditions Statement of Exceptions) to this question. (no answer) Yes No Optional Comments: Optional Attachments: Attach a file to this answer
15 10. Client References 10.1 Provide three current client references with whom you have been doing business for three (3) years or longer. Include Company name, nature of relationship, and contact with title and phone number. To the extent possible, references provided should have business profiles similar to Citizens. Reference 1 Reference 2 Reference 3 Reference Company Name Nature of Relationship Contact Person Contact Person Title Contact Phone Number Contact E- Address Optional Comments: Optional Attachments: Attach a file to this answer 10.
16 2 List the last three large client accounts that you have won in the past 12 months and why. Client 1 Client 2 Client 3 Client Name Reasons for busines s award Optional Comments: Optional Attachments: Attach a file to this answer Provide three clients that have terminated business with you or not renewed business over the last two years, indicating the length of time serviced prior to termination and reasons for termination. Client 1 Client 2 Client 3 Client Name Length of Relationshi p
17 Reasons for Terminatio n Optional Comments: Optional Attachments: Attach a file to this answer Copyright 2013 Iasta.com, Inc. All Rights Reserved.
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