Interoffice Memorandum
DATE: October 1, 2025
TO: Mayor Jerry L. Demings and County Commissioners
THROUGH: N/A
FROM: Lisa Snead, Assistant County Administrator
CONTACT: Janet Ramos
PHONE: 407-836-5610
DIVISION: County Administrator’s Office
ACTION REQUESTED:
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Ratification of a not to exceed amount of $10,000,000 for the placement of all policies by Arthur J Gallagher RMS as broker of record covering all coverage lines of the Owner-Controlled Insurance Program (OCIP) associated with the Orange County Convention Center Phase 5A Expansion. Arthur J Gallagher was originally awarded the OCIP administration contract Y19-192 in May 2019. The contract was replaced by a sole source procurement when the project was restarted in 2023. (Risk Management Division)
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PROJECT: N/A
PURPOSE:
Background:
An Owner-Controlled Insurance Program (OCIP) saves money for the County and provides consistent coverage for contractors and subcontractors working on construction projects with a value greater than $100,000,000.
In May 2019, Arthur J Gallagher RMS (AJGRMS) was awarded a term contract to administer an OCIP for the construction of the Orange County Convention Center (OCCC) Phase 5A Expansion. The original contract expired when the project was placed on hold due to the Covid pandemic. In November 2023, the OCIP administration contract was replaced by a sole source procurement due to the fact that AJGRMS had performed much of the legwork needed to administer the program. The scope of this procurement includes the underwriting, marketing, and placement of all insurance policies to adequately protect the interests of Orange County.
On August 15, 2025, Risk Management received the final draft of the proposed Guaranteed Maximum Price (GMP) for the early works phase of the project. Risk Management provided this information along with the estimated GMP for the full construction phase to AJGRMS so that they could proceed with the underwriting and marketing process. Underwriting and marketing of a project of this size and scope typically takes several months to complete. It was determined that marketing the project as a comprehensive insurance program would be advisable from a pricing standpoint.
On September 18, 2025, AJGRMS presented a draft summary of the preliminary proposals received and the proposal from AXA XL was determined to be the best option from the standpoint of coverage terms, experience, and compatibility among the various carriers that will participate in the program. These proposals were presented to the OCCC Phase 5A team on September 19, 2025. Adjustments were made based on updated GMP estimates and the broker was able to reduce total premiums by approximately $3,000,000. Additional changes are being considered, but both the broker and Risk Management feel that the $10,000,0000 not to exceed amount is reasonable. OCIPs can range anywhere from 2-12% of project costs depending on coverage. The OCIP program for the OCCC includes workers’ compensation, primary and excess liability, pollution, owners’ protective liability, and builders’ risk. Coverage will begin on October 13, 2025 so that coverage is in place when project mobilization begins.
In order for the project to start on schedule it has become necessary to bring this to the Board as a ratification after the fact as opposed to approval beforehand.
APPROVALS:
The OCCC concurs with this ratification.
BUDGET: N/A