Summary of Specifications:
INTRODUCTION: Through this Request for Proposals (RFP), the Wayne County Airport Authority (Airport Authority) hereby invites businesses that meet the qualifications set forth herein to submit Proposals for insurance brokers which includes, but is not limited to: the placement and marketing of insurance and related services for General Liability (Aviation), Property, Cyber Risk, Automobile, Excess Workers Compensation, Employers Liability, Public Officials Liability, Law Enforcement Liability, Crime, Property insurance for the Westin Hotel, Bonds required by the Airport Authority and like coverages.
The Airport Authority anticipates that a single contact will be awarded for insurance broker and related services; however the Airport Authority reserves the right to award multiple contracts if deemed in its best interest. Proposers are expected to use their own initiative in formulating an insurance program they feel will be most beneficial to the Airport Authority given the market available.
GENERAL INFORMATION: Detroit Metropolitan Wayne County Airport, (Detroit Metro Airport) is the primary air carrier airport serving the Detroit metropolitan area. Willow Run Airport (Willow Run) is a general aviation and cargo airport. In 2002, pursuant to the Public Airport Authority Act, MCL 259.108-259.125, operational jurisdiction of the airports transferred from the County of Wayne, Michigan to the Airport Authority. Previously, the airports had been owned and operated by the County of Wayne, Department of Airports, Wayne County, Michigan.
The Airport Authority does not receive any local tax dollars. Operations are funded through revenues from parking, space rental, land leases, fuel sales, airline landing fees and concessions. Capital improvement projects such as runway and terminal construction are funded through state and federal grants.
Detroit Metropolitan Wayne County Airport: Detroit Metro Airport, located 20 miles southwest of the central business district of the City of Detroit, is an air carrier facility serving both connecting and origin/destination traffic and was ranked as the 16th busiest airport in the United States in terms of number of total passengers in 2010 and 11th in the world by aircraft operations according to Airports Council International (ACI). Detroit Metro Airport currently has 13 major air carriers that provide more that 600 daily departures to approximately 160 nonstop destinations. Delta Airlines, Inc. (“Delta”) and its operating affiliate airlines carry approximately 80% of the total traffic at Detroit Metro Airport. Delta and its alliance partners operate from the Edward H. McNamara Terminal at Detroit Metro Airport. The McNamara Terminal includes 121 gates, including 12 international gates and a federal inspection service facility. In September of 2008, the Airport Authority opened the North Terminal, providing 26 gates and a federal inspection service facility for the other airlines operating at the Airport. A 2005 study conducted by the University of Michigan-Dearborn revealed that Detroit Metro Airport has a $7.6 billion estimated annual economic impact in Michigan and that the Airport is responsible for as many as 72,000 jobs across the state. Passenger traffic at Detroit Metro Airport is, on average, split relatively evenly between origin and destination passengers and connecting passengers. The number of enplaned passengers for fiscal year 2011 is 16,226,201. The estimated number of aircraft operations for the fiscal year 2011 is 447,045.
The terminal complex at Detroit Metro Airport encompasses approximately 660 acres within the land area of 7,072 acres, which includes 2 active terminal buildings, a luxury class onsite Westin Hotel, a Fire Department, Airport Police Communications facility, Air Traffic Control Tower, 6 runways, 2 parking structures, multiple parking lots, tenant occupied buildings, aircraft parking aprons, maintenance and equipment facilities, hangars, a rental car complex, fuel storage with a total capacity of over 6 million gallons and several support facilities necessary for the operation of the Airport. There are over 18,000 employees at the Airport. Approximately 618 are currently employed by the Airport Authority and are responsible for the administration, operation and maintenance of the Airport.
Willow Run Airport: Willow Run Airport is located seven miles west of Detroit Metro Airport in Ypsilanti, Michigan along the I-94 corridor, is a major air cargo, corporate, charter, and general aviation Airport. Originally constructed in 1941 to field- test B24 bombers for World War II as they rolled off Henry Ford’s assembly line, Willow Run Airport became home to what was then the largest bomber plant in the world. In less than four years, Ford’s Willow Run Plant produced 8,685 B 24 bombers, securing the airport’s place in history. Today’s Willow Run Airport continues to be a critical component of the state economy, having stimulated, directly or indirectly, more than 2,300 Michigan jobs representing a payroll of $65 million. Businesses at the airport also generated $9 million in local taxes during 2006. Although scheduled passenger service is prohibited at Willow Run Airport, the airport is home to several major charter and cargo airlines, making it one of Michigan’s busiest in terms of flight operations.
Willow Run Airport encompasses 2367 acres and is comprised of two (2) major hangars, a Fire Department, several tenant occupied structures, five runways, a 24 hour Federal Aviation Administration (FAA) tower, US customs operations and a fuel storage with a total storage capacity for jet fuel of 330,000 gallons and 30,000 gallons for gasoline. Willow Run Airport serves cargo, corporate and general aviation clients and transfers approximately 100 million pounds of cargo annually, making it the third largest airport in the State of Michigan.
Claims Administration: The Airport Authority maintains a third party administrative service contract with ABH Claims, Inc. for claims investigation of general liability claims within a self insured retention. The Airport Authority also has a contract with the Law Office of Alan B. Havis to handle general liability claims and administration. In addition, the Airport Authority is under contract for third party claims and administrative services with Comprehensive Risk Services, Inc. for workers’ compensation claims within our self insured retention. Therefore, these services shall not be part of this RFP. However, these administrators are required to notify excess insurance carriers when a potential exposure exists, which may necessitate their involvement. The broker/agent selected will be required to provide the administrators with all the necessary information to promptly and correctly place insurance carriers on notice of claims and litigation. The broker/agent is expected to cooperate fully with the Authority’s claims administrators and attorneys regarding clams, coverage’s, or legal matters.
Contact with Insurance Markets: DO NOT APPROACH THE INSURANCE MARKETS AT THIS TIME. Proposers are only required to provide information and responses based on your organization’s knowledge and experience.
SCOPE OF WORK: The successful Proposer (Contractor) will be required to provide to the Airport Authority insurance broker and related services include, but not limited to the following:
CONTRACTOR’S RESPONSIBILITIES:
Assist with the development of a risk financing strategy. Market insurance policies, including preparation of marketing submissions and development of coverage specifications as approved by the Airport Authority. Select insurance markets and present for consideration by the Airport Authority a comprehensive format and financial analysis including recommendations of all underwriting quotes. Negotiate with insurers for improvements to coverage and pricing. Analyze deductible and self-insured retention levels and recommend appropriate policy limits, terms and conditions. Verify binders, policies, certificates, and endorsements for accuracy and compliance with the Airport Authority’s exposures and negotiate policy changes. Assist with coverage and claim disputes between the Airport Authority and Insurer, including claims management services as needed. Monitor and report on insurance carrier stability and industry trends. Provide loss control services and consulting services on specific issues. Be prepared to provide on-site loss control services as requested by the Airport Authority. Provide access to information systems designed to efficiently manage risk management and insurance functions. Provide property appraisal services. Consult on a wide variety of insurance and risk management related issues. Work with the Airport Authority and their third party administrator’s (TPA) in preparing loss information for insurance quotations. Assist in preparing materials for the insurer on claims and litigation matters. Provide quarterly, accurate and timely loss exhibits, reports and statistical risk analysis in formats approved by the Airport Authority. Review lease agreements, vendor and consultant contracts, airline agreements, and any other contract for insurance requirements and other risk provisions (such as indemnity agreements, etc.) and advise the Airport Authority of any uninsured exposures, risk transfers and provide recommendations. Assist in formulating guidelines and procedures for the management of insurance requirements in contracts. Provide recommendations on loss sensitive/retrospective plans, deductibles or self-insured retention insurance programs and costs. Issue certificates of insurance, as requested by the Airport Authority. At the request of the Airport Authority, attend meetings with Airport Authority personnel or any of its committees or advisory councils. Provide broker and loss controls services for OCIP and CCIP’s projects. Be able to provide a certificate of insurance tracking program for all Authority divisions upon the request of the Airport Authority. Provide other related services which may include: Coverage outlines/coverage gaps; Insurance Audits; Risk analysis for all property/casualty lines upon request. Additional insurance to include pollution legal liability, surety bonds and fiduciary responsibility.
