26-AA19 RFP for Job Classification and Total Compensation Study Addendum 2

Purchasing Division, Finance Department
218-730-5340 | purchasing@duluthmn.gov
Room 120 | 411 West First Street | Duluth, Minnesota 55802
www.duluthmn.gov
City of Duluth Request for Proposals
Job Classification and Total Compensation Study
RFP Number 26-AA19
Issued June 22, 2026
PROPOSALS DUE 3:00 PM CENTRAL TIME, THURSDAY, JULY 16, 2026
Submit to
City of Duluth
Attn: Purchasing Division
City Hall, Room 120
411 West 1st Street
Duluth, MN 55802
The City of Duluth is an Equal Opportunity Employer.

PART I - GENERAL INFORMATION
I-1. Introduction and project Summary. The City is seeking proposals from consultants for
professional services for completion of a comprehensive job classification and total compensation
study, as well as proposing an update and implementation process for a new job classification and
compensation system. Additional detail is provided in Part IV of this RFP.
I-2. Calendar of Events. The City will make every effort to adhere to the following schedule:
Activity Date
Pre-proposal Conference at 2:00 pm Central Time June 25, 2026
Deadline to submit Questions via email to July 2, 2026
purchasing@duluthmn.gov is 12 noon Central Time
Answers to questions will be posted to the City website no later July 9, 2026
than this date.
Proposals must be received in the Purchasing Office by 3:00 PM July 16, 2026
Central Time on this date.
Interviews tentatively scheduled the week of: July 27, 2026
I-3. Pre-proposal Conference. The City will hold a virtual pre-proposal conference as specified in
the Calendar of Events. Interested Bidders can attend via Microsoft Teams and find the link at
https://www.duluthmn.gov/purchasing/bids-request-for-proposals/.
I-4. Questions & Answers. Any questions regarding this RFP must be submitted by e-mail to the
Purchasing Office at purchasing@duluthmn.gov no later than the date indicated on the Calendar of
Events. Answers to the questions will be posted as an Addendum to the RFP.
I-5. Addenda to the RFP. If the City deems it necessary to revise any part of this RFP before the
proposal response date, the City will post an addendum to its website
(https://duluthmn.gov/purchasing/bids-request-for-proposals/) under Current Bids & Projects, and this
solicitation number. Although an e-mail notification will be sent, it is the Bidder's responsibility to
periodically check the website for any new information. Any addenda issued must be acknowledged
on the Proposal Sheet attached as Appendix A.
I-6. Interviews/Demonstrations. The City reserves the right to request interviews or demonstrations
with top scoring proposers.
I-7. Rejection of Proposals. The City reserves the right, in its sole and complete discretion, to reject
any and all proposals or cancel the request for proposals, at any time prior to the time a contract is fully
executed, when it is in its best interests. The City is not liable for any costs the Bidder incurs in
preparation and submission of its proposal, in participating in the RFP process or in anticipation of
award of the contract.

I-8. Small Diverse Business Information. The City encourages participation by minority, women, and
veteran-owned businesses as prime contractors, and encourages all prime contractors to make a
significant commitment to use minority, women, veteran-owned and other disadvantaged business
entities as subcontractors and suppliers. A list of certified Disadvantaged Business Enterprises is
maintained by the Minnesota Unified Certification Program at http://mnucp.metc.state.mn.us/ .
I-9. Agreement. The awarded proposer will be required to sign the agreement attached as Appendix
B. Questions about the agreement should be submitted to purchasing@duluthmn.gov by the question
deadline in the schedule above.
I-10. Award. The agreement award amount will be based on the time and materials submitted in the
proposal, but will be a lump sum, not-to-exceed agreement.
I-11. Term of Contract. The term of the contract will begin once the contract is fully executed and is
anticipated to end by December 31, 2027. The selected Bidder shall not start the performance of any
work nor shall the City be liable to pay the selected Bidder for any service or work performed or
expenses incurred before the contract is executed.
I-12. Mandatory Disclosures. By submitting a proposal, each Bidder understands, represents, and
acknowledges that:
A. Their proposal has been developed by the Bidder independently and has been submitted
without collusion with and without agreement, understanding, or planned common course
of action with any other vendor or suppliers of materials, supplies, equipment, or services
described in the Request for Proposals, designed to limit independent bidding or
competition, and that the contents of the proposal have not been communicated by the
Bidder or its employees or agents to any person not an employee or agent of the Bidder.
B. There is no conflict of interest. A conflict of interest exists if a Bidder has any interest that
would actually conflict, or has the appearance of conflicting, in any manner or degree with
the performance of work on the project. If there are potential conflicts, identify the
municipalities, developers, and other public or private entities with whom your company
is currently, or have been, employed and which may be affected.
C. It is not currently under suspension or debarment by the State of Minnesota, any other
state or the federal government.
D. The company is either organized under Minnesota law or has a Certificate of Authority
from the Minnesota Secretary of State to do business in Minnesota, in accordance with
the requirements in M.S. 303.03.
I-13. Notification of Selection. Bidders whose proposals are not selected will be notified in writing.
PART II - PROPOSAL REQUIREMENTS
II-1. Proposal Submission. To be considered, hard copies of proposals must arrive at the City on
or before the time and date specified in the RFP Calendar of Events. The City will not accept
proposals via email or facsimile transmission. The City reserves the right to reject or to deduct
evaluation points for late proposals.

Proposals must be signed by an authorized official. If the official signs the Proposal Cover Sheet
attached as Appendix A, this requirement will be met. Proposals must remain valid for 60 days or
until a contract is fully executed. Terms of the awarded proposal as stated must be valid for the
project length of time.
Please submit one unbound paper copy of the Technical Submittal and one unbound paper copy of
the Cost Submittal. Cost Submittals are to be submitted in an envelope sealed separate from
the Technical Submittals.
All materials submitted in response to this RFP will become property of the City and will become
public record after the evaluation process is completed and an award decision made.
II-2. Proposal Content.
1. Completed Appendix A Proposal Cover Sheet
2. Cover letter providing the history of your company
3. Comprehensive services offered (limit to 10 pages)
4. Three references
The proposal shall contain the following information:
A. Provide references of municipalities in the State of Minnesota for whom bidder has completed
similar compensation studies and/or similarly designed, developed, and implemented job
classification and compensation systems. Include the name and phone number of a contact
person at each municipality, as well as a description of the services performed, implementation
date, and the names of the personnel from your office that worked on the project at each
municipality.
B. Names and relevant experience of the personnel to be assigned to the project.
C. Work plan detailing your organization's approach to the Scope of Work outlined below for the
study and development of a job classification and compensation system for the City of Duluth.
Include plans and proposed outcomes and deliverables for the job classification and
compensation evaluation system being proposed. Provide any questionnaires employees will be
required to complete as part of the study, as well as sample updated job descriptions, policies and
procedures; and include information on how your organization will handle evaluation of each
aspect identified.
D. Identify your approach to creating union and non-union involvement with the development of the
position classification and compensation schedules.
E. Identify a concrete, but reasonable timeline for the completion of each component in the process
as well as implementation guidelines.
F. The proposal should clearly define the timelines, proposed fees, and the scope of services to be
provided during each of the following specific project components:
1. Introduction and Project Orientation

2. Position Analysis and descriptions for full-time, part-time, seasonal, and variable hour workers.
3. Position Classifications/Ranking/Grades/Evaluation.
4. Market Study.
5. Design a proposed update to the total compensation structure according to Duluth's
compensation philosophy.
6. System testing for equity and fairness.
7. Preparation of final documents for the plan, including presentation, policy, guidelines and
procedures for implementation and any other pertinent information. Any written and
computerized data and supporting information must be submitted as appropriate or requested.
8. Training on the system maintenance and updating such as position additions, position
reclassifications, and wage structure updates.
9. System implementation plan with recommendations of who is involved at each step of that
plan.
10. Future assistance that can be provided by your organization.
a) Proposals shall clearly define additional services and/or reimbursable costs not included in
the basic fees, including any hourly rates or fees for post-contract services.
b) Proposals shall include a "not to exceed" lump sum fee protection.
c) Identify cost estimates for all aspects including potential areas in which the City of Duluth
staff can provide assistance resulting in cost savings to the City.
PART III - CRITERIA FOR SELECTION
The proposals will be reviewed by City Staff. The intent of the selection process is to review
proposals and make an award based upon qualifications as described therein. A 100-point scale will
be used to create the final evaluation recommendations. The factors and weighting on which
proposals will be judged are:
Qualifications of the Bidder and Personnel 25%
Prior experience with similar work 30%
Work Plan 25%
Cost 20%

PART IV - PROJECT DETAIL
The City of Duluth has not conducted a formal classification and compensation review of this scope.
The City has approximately 244 position descriptions subject to the State of MN Pay Equity
Compliance requirements. The position titles are attached as Appendix B. In addition, the City of
Duluth operates under a strong Mayor form of government and would like to compare Mayor
compensation with other similar cities.
The City employs around 850 full-time and part-time employees. Employees are organized in the
following unions:
* AFSCME
* Confidential
* Supervisory
* Firefighter's Local
* LELS (Patrol)
* LELS (Lieutenants)
* LELS (Deputy Chiefs)
Collective bargaining agreements will expire on December 31, 2026 and December 31, 2027.
Regular non-exempt, exempt, and union positions are paid on a step program including a longevity
element. Other positions receive additional pay including shift differential, on-call pay, hazmat pay,
EMT pay, etc. The City also provides all full-time employees a generous benefits package that
includes 90% single insurance coverage, 80% family insurance coverage, cafeteria plan contribution,
life insurance, paid sick and vacation leave, personal leave days (not all bargaining agreements), and
13 paid holidays.
Throughout the years, there have been several changes in position classifications, job eliminations
and combinations, new position additions, organizational structure changes, and compensation
schedule adjustments. The city recognizes the need to validate the process and methodology utilized
for determining classification for newly created and revised positions. There is also a need to have
the job evaluation and compensation system reviewed, validated, and updated for internal and
external equity by an outside professional consultant.
The goal is to comprise a plan and process to validate and update the current system including:
* Reviewing and updating job descriptions and job titles as needed
* Evaluating each position

* Creating opportunity for management and employee input through designated contacts
* Compile and analyze market comparable and competitive data for salary and benefits;
recommend any market adjustments
* Ensure regulatory compliance
* Propose updates to the compensation system as needed to achieve market competitiveness
* Create a transition and implementation plan
* Provide all project data for record keeping and the necessary tools and training to manage the
classification and compensation program going forward
Some employee and management involvement through participation and informational meetings on
the process and outcomes will be an important component to the success and acceptance of any
outcome.
SCOPE OF WORK
A. The Consultant shall provide comprehensive professional services to design, develop, and
implement a job classification evaluation and total compensation system for the City. The scope of
services includes, but is not limited to, the following tasks:
1. Assessment of Organizational Needs and Compensation Philosophy
Conduct an evaluation and analysis of the City's operational needs, current compensation
philosophy, and strategic objectives to inform the development of the new system.
2. Review of Existing Position Evaluations
Perform a thorough review of all current position evaluations and provide recommendations for
revisions where necessary to ensure accuracy, consistency, and relevance.
3. Job Description Review and Updates
Review existing job descriptions and update them as needed to reflect current duties,
responsibilities, and required knowledge, skills, and abilities.
4. Position Classification and Internal Equity
Develop an objective classification ranking of all City positions to ensure internal pay equity.
5. Compliance Review
Evaluate existing job descriptions and recommend revisions to ensure compliance with the
Americans with Disabilities Act (ADA) and other applicable state and federal requirements.
6. Market Analysis and Pay Structure Development
Conduct a comprehensive wage and labor market survey of total compensation packages.
Analyze supporting data to develop a pay structure that ensures internal and external equity
and complies with State Pay Equity compensation standards.

7. Design of Evaluation and Compensation System
Provide recommendations and options for a newly designed job evaluation and compensation
system that aligns with best practices and City goals.
8. Reclassification and Compensation Change Process
Develop recommendations for a system to evaluate and determine the validity of
reclassification and/or compensation change requests.
9. Exempt/Non-Exempt Status Determinations
Review and determine the Fair Labor Standards Act (FLSA) exempt or non-exempt status for
each position. Provide written documentation outlining the rationale for each classification for
City recordkeeping.
10. Implementation Support and Training
Provide implementation support and training, as appropriate, including but not limited to, City
employee groups, union representatives and the City Council on the new system and
processes.
11. System Testing and Compliance Assurance
Conduct testing of the new system to ensure compliance with applicable laws, standards, and
internal policies.
12. Post-Contract Support Services
As needed, provide post-contract services such as reviewing new or revised job descriptions
and determining appropriate classification points and salary placement.
B. The Consultant shall establish and provide detailed schedules for each of the tasks outlined in the
Scope of Work. This includes developing a comprehensive project timeline that identifies key
milestones, deliverables, review periods, stakeholder engagement points, and anticipated
completion dates for all proposed activities.
C. The Consultant shall present all findings and recommendations through both written and oral
reports. This includes preparing and delivering presentations, policies, and supporting
documentation at various meetings, such as employee meetings, City Council meetings, and other
stakeholder sessions as requested.
D. The Consultant shall propose clear and comprehensive contract terms that support successful
delivery of all services outlined in the Scope of Work. The proposal must include the following
components:
1. Itemized Fee Schedule
The Consultant shall provide an itemized fee schedule that includes, at minimum:
* A detailed breakdown of costs for each task or deliverable identified in the Scope of Work.
* Hourly rates for all personnel assigned to the project, along with estimated hours per task.
* Any anticipated reimbursable expenses, with cost estimates and justification.

* Costs associated with optional or post-contract services, if applicable.
* A total not-to-exceed project cost.
2. Payment Plan Based on Measurable Milestones
The Consultant shall propose a payment plan tied to the achievement of clearly defined and
measurable contract milestones. At a minimum, the payment plan must outline:
* Identification of each milestone, aligned with the project schedule.
* A description of deliverables or performance outcomes required for milestone completion.
* The percentage or dollar amount of contract value payable upon completion of each
milestone.
* Documentation or acceptance procedures required prior to payment (e.g., written approval by
the City, submission of draft or final reports, completion of presentations, etc.).
3. Contract Performance Requirements
The Consultant shall include recommended contract terms addressing:
* Project management and communication expectations.
* Requirements for progress reporting and status updates.
* Procedures for requesting and approving any scope or schedule changes.
* Responsibilities related to data confidentiality, document retention, and compliance with State
and Federal regulations.
* Warranty of services, corrective action expectations, and timelines for addressing
deficiencies in completed work.
* Termination, dispute resolution, and performance remedy provisions.
4. Budget Transparency and Cost Controls
The Consultant shall identify measures to ensure cost control throughout the project, including:
* Clear delineation between included and optional services.
* Procedures for notifying the City of potential cost overruns and obtaining approval before
incurring additional expenses.
* Any cost-saving strategies available to the City.
PROJECT COMPLETIONS
It is the intent of the City to provide as much support and assistance to the consultant to ensure that
the project is completed by June 30, 2027, with presentation of outcomes and recommendations to
the City Council shortly thereafter.
APPENDICES
Appendix A - Proposal Cover Sheet
Appendix B - List of Position Titles Subject to the State of MN Pay Equity Compliance Requirements

APPENDIX A - Proposal Cover Sheet
CITY OF DULUTH
RFP 26-AA19 Job Classification and Total Compensation Study
Bidder Information:
Submitter Name
Mailing Address
Contact Person
Contact Person's Phone Number
Contact Person's E-Mail Address
Federal ID Number
Authorized Signature
Name & Title of Authorized
Signer
Email of Authorized Signer
ACKNOWLEDGEMENT OF ADDENDA
ADDENDUM # INITIAL/DATE
ADDENDUM # INITIAL/DATE
ADDENDUM # INITIAL/DATE
ADDENDUM # INITIAL/DATE