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YELLOW SHEET Office of the State Auditor of Missouri |
December 7, 1999
Report No. 99-116
The following audit found the County Employee's Retirement Fund (CERF) Board of Directors did not solicit requests for proposals for an actuarial consulting service and plan design contract, nor for a legislative consulting contract.
The actuarial consulting service and plan design contract, dated October 30, 1998, indicated the consultant will charge a fixed fee not to exceed $200,000. In addition, the CERF Board of Directors is currently negotiating a contract for additional services with the same consultant estimated to cost up to $750,000.
The legislative consulting contract, dated December 18, 1998, indicated the consultant will charge an annual fee of $30,000 plus reimbursement for reasonable and necessary expenses.
Without requesting proposals for such services, the CERF Board of Directors has not ensured it will receive these services at a fair price.
We recommend the CERF Board of Directors request proposals for all professional services. Requests for Proposals (RFP's) ensure the board is making every attempt to secure the best services available for a competitive price. Competitive bidding is a standard management practice understood by contractors and should be implemented.
