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RESOLUTION AUTHORIZING EXECUTION OF AGREEMENTS IN THE AGGREGATE AMOUNT OF $4,572,650 WITH KPMG LLP, MARCUM LLP, AND CROWE HORWATH LLP TO OBTAIN EXTERNAL INDEPENDENT AUDITING SERVICES FOR THE AVIATION, WATER AND SEWER, AND TRANSPORTATION SEGMENTS, RESPECTIVELY, AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE THE AGREEMENTS FOR AND ON BEHALF OF MIAMI-DADE COUNTY AND TO EXERCISE ANY CANCELLATION AND RENEWAL PROVISIONS, AND TO EXERCISE ALL OTHER RIGHTS CONTAINED THEREIN, AND AUTHORIZING THE USE OF CHARTER COUNTY TRANSPORTATION SURTAX FUNDS
CONTRACT NOS: RFP796A, RFP796B, and RFP796C

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board approves the execution of agreements in the aggregate amount of $4,572,650 with KPMG LLP, Marcum LLP, and Crowe Horwath LLP, in substantially the form attached hereto and made a part hereof, and authorizes the County Mayor or County Mayor�s designee to execute same for and on behalf of Miami-Dade County and to exercise any cancellation and renewal provisions and all other rights contained therein, and authorizes the use of Charter County Transportation Surtax Funds.

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Date:

To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners

From: Carlos A. Gimenez
Mayor

Subject: Recommendation for Approval to Award: External Independent Auditing Services

STAFF RECOMMENDATION
RECOMMENDATION

It is recommended that the Board of County Commissioners approve award of these contracts to provide external independent auditing services.

CONTRACT NUMBERS: RFP796a (Aviation Segment)
RFP796b (Water and Sewer Segment)
RFP796c (Transportation Segment)

CONTRACT TITLE: External Independent Auditing Services

TERM: Three years with two, one-year options-to-renew

APPROVAL TO ADVERTISE: July 19, 2011

METHOD OF AWARD: To the responsive and responsible proposers whose offers result in the best value to the County.

PREVIOUS CONTRACT
AMOUNTS: The cost of the fiscal year 2009-2010 audits were as follows:

Aviation Segment: $363,987
Water and Sewer Segment: $170,000
Transportation Segment: $110,000

CONTRACT AMOUNTS: RFP796a (Aviation Segment): $1,305,000 for the initial three-year term. If the County chooses to exercise the two, one-year options-to-renew, the cumulative contract value will be $2,215,000. The contract amount includes the annual cost of the audit ($335,000 during the initial three-year term and $355,000 during the two option to renew years) plus an annual allocation for additional services ($100,000).

RFP796b (Water and Sewer Segment): $784,500 for the initial three-year term. If the County chooses to exercise the two, one-year options-to-renew, the cumulative contract value will be $1,323,650. The contract amount includes the annual cost of the audit ($161,500 during the initial three-year term and $169,575 during the two option to renew years) plus an annual allocation for additional services ($100,000).

RFP796c (Transportation Segment): $615,000 for the initial three-year term. If the County chooses to exercise the two, one-year options-to-renew, the cumulative contract value will be $1,034,000. The contract amount includes the annual cost of the audit ($105,000 during the initial three-year term, $108,000 for the first option to renew year, and $111,000 for the second option to renew year) plus an annual allocation for additional services ($100,000).

MANAGER'S BACKGROUND
BACKGROUND
In accordance with Miami-Dade County Home Rule Amendment and Charter, Section 5.03(G), the County is required to engage external independent auditors for the annual examination of the County�s financial statements. Under this solicitation, the County has three discrete operations that require external independent auditing as follows:
* Aviation Segment
* Water and Sewer Segment
* Transportation Segment (Segment includes Miami-Dade Transit and Operating Fund of the Citizens� Independent Transportation Trust)

The recommendation to reject proposals received in response to Request for Proposals (RFP) 764, External Independent Auditing Services for the General, Aviation, Water and Sewer, and Transportation Segments was presented to the Internal Management and Fiscal Responsibility (IMFR) Committee on July 12, 2011. The IMFR Committee amended the recommendation and directed that a contract be negotiated with McGladrey & Pullen LLP for the General Segment, that all proposals received for the Aviation, Water and Sewer, and Transportation Segments of RFP 764 be rejected, and that the remaining segments be re-solicited. The Committee further directed that all contracts be presented to the Board of County Commissioners (Board) for award in September. The amended item was adopted at the July 19, 2011 Board meeting as Resolution R-618-11.
This recommendation to award follows the re-solicitation of external independent auditing services for the Aviation, Water and Sewer, and Transportation Segments, as directed by the Board under Resolution R-618-11. Sixteen proposals were received in response to this solicitation. The Department of Small Business Development (SBD) determined that one proposal was non-compliant with the Small Business Enterprise Program Participation Provisions (SBD�s memo dated August 5, 2011 is attached) and was not scored by the Evaluation/Selection Committee. The remaining fifteen proposals were evaluated by the Evaluation/Selection Committee.
Resolution R-618-11 further directed that the award of this solicitation be brought back to the Board in September given that the current auditing contracts for these segments will expire shortly. The services are currently being provided under Contract No. 477b (Aviation Segment) expiring October 2, 2011, Contract No. 477c (Water and Sewer Segment) expiring September 30, 2011, and Contract No. RFP623 (Transportation Segment) expiring September 30, 2011. The successor contracts must be in place to ensure that the audit fieldwork is completed on time for the submittal of the final audit report to the County�s Finance Department by January 31, 2012.

USING/MANAGING AGENCIES
AND FUNDING SOURCES:

Department Allocation Funding Source Contract Manager
Miami-Dade Aviation Department $ $1,305,000 Proprietary Funds Blanca Padron
Miami-Dade Water and Sewer Department $ $784,500 Proprietary Funds
Miami-Dade Transit $ $615,000 MDT Operating

Total $ 2,704,500

The allocation and funding source have been reviewed and approved by the Office of Management and Budget. There is no fiscal impact beyond what is stated in this recommendation. Miami-Dade Transit has confirmed that no federal funds will be used in this contract.

PROCUREMENT
CONTRACTING OFFICER: Annie Perez

VENDORS RECOMMENDED
FOR AWARD: Awardee(s) Address Principal Award
KPMG LLP
(Non-local vendor) Three Chestnut Ridge Road Suite 2800 John B. Veihmeyer Aviation Segment
Montvale, NJ 07645

Marcum LLP
(Local vendor) 1 SE 3rd Avenue, 10th Floor Lawrence H. Blum Water and Sewer Segment
Miami, FL 33131

Crowe Horwath LLP
(Non-local vendor) 320 East Jefferson Blvd. Fred J. Bauters Transportation Segment

South Bend, IN 46601

PERFORMANCE DATA: There are no performance issues with the recommended firms.

COMPLIANCE DATA: There are no compliance issues with the recommended firms.

VENDORS NOT
RECOMMENDED FOR
AWARD: The following vendors were not recommended for award based on their scores and ranking.

Aviation Segment
Cherry, Bekaert & Holland LLP
Clifton Gunderson LLP
Crowe Horwath LLP
Marcum LLP
Moore Stephens Lovelace P.A.

Water and Sewer Segment
Cherry, Bekaert & Holland LLP
Clifton Gunderson LLP
Crowe Horwath LLP
Sharpton, Brunson & Company P.A.

Transportation Segment
Clifton Gunderson LLP
Harvey Covington & Thomas of South Florida LLC
Sharpton, Brunson & Company P.A.

The following vendor was deemed non-compliant with the Small Business Enterprise Participation Provisions.

Water and Sewer Segment
TCBA Watson Rice LLP

CONTRACT MEASURES: A Small Business Enterprise Sub-Contractor Goal of 30% has been assigned.

LIVING WAGE: The services being provided are not covered under the Living Wage Ordinance.

USER ACCESS PROGRAM: The User Access Program provision will apply. The 2% program discount will be collected on all purchases where permitted by funding.

LOCAL PREFERENCE: The Local Preference was applied in accordance with the Ordinance.

ESTIMATED CONTRACT
COMMENCEMENT DATE: Ten business days after date adopted by the Board of County Commissioners

DELEGATED AUTHORITY: If this item and attached resolution are approved, the County Mayor or designee will have the authority to exercise, at County Mayor�s or designee�s discretion, contract modifications, subsequent options-to-renew and other extensions in accordance with the terms and conditions of the contract.





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Deputy Mayor