HILLSBOROUGH: Board debates strategy used for choosing service vendors

By Eileen Oldfield, Staff Writer
   The Board of Education’s organization meeting Monday had board members curious about how the district shops for savings when appointing vendors.
   Board member Frank Blandino asked whether the district sent requests for quotes (RFQs) for four district vendors — the district’s auditor, architect, board attorney and insurance brokers — and whether board members who aren’t on the Finance Committee could view the RFQs the district receives.
   The board’s practice, Mr. Blandino noted, is to send RFQs for all purchases and vendor services to ensure the district receives the services at a competitive price.
   Business Administrator Aiman Mahmoud reviewed the district’s process for selecting the auditor, architect and board attorney, noting the dates the district sent RFQs, the number of RFQs sent and received and the dates the RFQs were opened to the public for viewing and discussion.
   According to Mr. Mahmoud, the district sent five RFQs each for the board auditor and attorney and received five responses. Four architectural firms responded to the RFQs the district sent for its architect of record.
   Board member Neil Hudes asked about the architect of record, Nam Kim Park Architects, and whether the district is locked into a yearlong contract with the firm.
   ”Just clarify for me. We’re selecting the architect of record who would continue with the summer projects and anything that would come up?” Mr. Hudes said. “… Can we change that later? I’m not comfortable with the rate, but I understand the need to go forward with the summer projects.”
   While there is an expectation a board will continue with an architect of record for a full school year, the board can send RFQs for services, Mr. Mahmoud said.
   Mr. Blandino built on Mr. Hudes question, asking if the district could switch architects if another firm offered better rates.
   Mr. Mahmoud recommended assigning an architect of record at the meeting so the district had a go-to firm for emergencies.
   The motion to appoint the auditor, architect and board attorney passed when put to a vote.
   The district insurance brokers — G.R. Murray Insurance Company for general insurance and H.R.H.-Willis for medical, dental and vision insurance — brought more questions from board members, however.
   The school insurance brokers, regardless of the firm, work for a fixed commission that does not change depending on the firm, Mr. Mahmoud said. In addition, the district does not pay the brokerage firm directly, but rather makes the payment through its insurance carriers, he added, adding he did not know the amount.
   Though the cost associated with brokerage firms is constant from broker to broker, board members wanted to ensure the firm gets the best value — and the most savings on insurance premiums — for the district and maintain its goal of letting the public know what bids it gets on various services.
   ”I guess what my concern is and Frank’s concern is how do we know they shop around for the best deals for us,” board member John Donnadio said.”
   Mr. Mahmoud noted the district’s general insurance broker, G.R. Murray Insurance Company, netted the district a 5 percent reduction on insurance premiums and helped the district get a $17,000 safety grant.
   Mr. Hudes asked whether appointing brokerage firms was time-sensitive, and whether the board could table the recommendation to get more information on other firms. Mr. Mahmoud explained the district could miss insurance savings from its existing carriers and would not be able to afford plan renewal fees if it misses the deadline — the district simply does not have the money to drop its current insurance carrier, then renew the plan.
   The board appointed the brokerage firms with a 7-2 vote with Mr. Blandino and Mr. Donnadio voting no.
   The discussion followed the board’s appointment of Steven Paget as president and Judy Haas as vice president. It will be Mr. Paget’s first time serving as board president, but Ms. Haas served as board vice president in 2006.
   Meetings will continue to be held Mondays at 7:30 p.m. in the Auten Road Intermediate School Cafeteria.