REQUEST FOR PROPOSALS (RFP) for Comprehensive Compensation and Classification Study
For the Human Resources Department
City of Durham
RFP 26-1058
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Compensation and Classification RFP
SELECTED CONTENTS
Date of RFP
Project Manager and Contact with City; Questions about this RFP.
DESCRIPTION OF PROJECT AND NATURE OF RFP
Project
Scope of Work
Compensation Amount and Schedule
Definitions in this RFP
Contract
Trade Secrets and Confidentiality
Bonds
Insurance
Discretion of the City
SCHEDULE
Schedule
Keeping Proposals Open
Deadline to Submit Proposals
GETTING MORE INFORMATION ON THE PROJECT AND RFP PROCESS
Questions
Pre-submittal conferences, meetings, and site visits
Updates and revisions to RFP
EVALUATION CRITERIA
Evaluation Criteria
CONTENTS OF PROPOSAL
Contents of Proposal
Contact information; Legal status; Qualifications; Project Team, Location of Work, and Subcontracting;
Methods; Compensation; Assumptions; UBE; Small Local Business Enterprises (SLBEs); Financial Condition,
Insurance, and Bonds; Conflict of Interest; Non-collusion
COVER LETTER WITH PROPOSAL
Cover letter
Addendums
HOW TO SUBMIT A PROPOSAL
How to submit a proposal
Format
Alternative Proposals
Candidate to Bear Expense; No Claims against City
Notice Under the Americans with Disabilities Act (ADA)
Values of City of Durham
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Compensation and Classification RFP
Request for Proposal (RFP) for a comprehensive Compensation and
Classification Study
10. Date of RFP: April 30, 2026
20. Project Manager and Contact with City; Questions about this RFP. Direct questions and concerns to
Att: Naima Wood
Compensation and Classification
Human Resources Department
101 City Hall Plaza
DURHAM NC 27701-3329
Phone: (919) 560-4214
Email: hrcontracts@durhamnc.gov
If you have concerns about this RFP that you believe are not being addressed by the project manager, please contact:
Jim Reingruber, Assistant Director of Human Resources
Phone: 919-560-4214
Email: Jim.reingruber@durhamnc.gov
DESCRIPTION OF PROJECT AND NATURE OF RFP
30. Project. This project is a comprehensive compensation and classification study and is being undertaken to achieve 3
goals:
1. Sustainability
The City’s pay system should be affordable and maintainable within normal budget cycles. This study should produce pay
structures with a defined maintenance plan so the system remains current and cost-effective over time while requiring
fewer large periodic corrections.
2. Equity
Pay relationships across the workforce should be internally consistent, defensible, and perceived as fair. Employees should
have clear paths to grow their careers and their pay within the classification system. The study should ensure that all pay
plans, including part-time, are integrated into a coherent framework.
3. Competitiveness
The City should define and hold a market position that allows us to recruit and retain the workforce Durham needs. This
study should establish a target market position, a defensible comparator set, and comprehensive benchmarking across all
pay plans.
The City of Durham has an approximate population of 300,000 residents and employs approximately 2,500 full-time
employees across 265 full-time job classifications, as well as approximately 360 part-time employees across 75 part-time
classifications.
Employees progress through the pay grade to which their position is assigned based on merit increases awarded in
connection with annual performance evaluations.
The City maintains four full-time salary structures supporting the following employee groups:
• Exempt Employees – Open Range Plan
• Non-Exempt Employees – Step Plan
• Police (Sworn) – Step Plan
• Fire (Sworn) – Step Plan
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Compensation and Classification RFP
These full-time employee salary structures consist of pay grades that are either:
• Open ranges, defined by established minimums, midpoints, and maximums; or
• Step ranges, consisting of structured pay steps.
The Part-Time Plan includes pay ranges, each comprised of five pay steps. The City’s most recent comprehensive
compensation and classification study was completed with recommended classification and salary structure changes
implemented in July 2024.
40. Scope of Work. The City is seeking a qualified individual or firm to conduct a comprehensive compensation and
classification study. The resulting deliverables must include clear, actionable recommendations that articulate the City’s
compensation philosophy, including how it should balance internal equity, social equity, and market competitiveness. The
study must also provide a defensible determination of the City’s desired market position and the rationale for that
placement. Components of this include:
1. Comprehensive Compensation & Classification Analysis
• Review and provide feedback on our proposed compensation philosophy.
• Identification of comparator markets and analysis of market data (public and private).
• Analyze the City’s current Durham Minimum Livable Wage (DMLW) methodology to recommend best
practices.
• Analyze peer benefits alongside pay data and factor that analysis into recommendations on target market
position and structure affordability. Pay and benefits findings should inform a single integrated total rewards
recommendation, not separate deliverables.
• Evaluation of existing salary structures, including range design, progression, internal equity, compression,
and step plan structures and effectiveness.
• Recommendations for new or revised salary structures, including midpoint progressions and placement of
incumbents. Recommend a plan for maintaining the structures.
• Compare pay-for-performance methodology with peer organizations and develop recommendations for pay-
for-performance within proposed structures.
2. Classification Plan Review
• Assessment of new or evolving roles not to exceed a total of 300 classification titles in the class plan.
• Job evaluation methodology to support internal equity and plan maintenance.
• Guidance on reclassification processes.
• Development of options supporting career pathing.
• Review of FLSA exempt/non-exempt statuses.
3. Specialized Analyses & Recommendations
• Analysis of transitioning full-time employees from a 37.5-hour to 40-hour workweek.
• Review and recommendations for part-time pay plan structures, and interns.
• Internal pay equity analysis and policy guidance.
• Incentive program assessments (hiring bonuses, certifications, field training, etc.).
• Total rewards recommendations (e.g., childcare, housing-related benefits).
• Review of senior management pay structure needs.
4. Implementation, Costing & Tools
• At least four implementation options with estimated costs.
• Cost modeling for employee placement.
• Drafting new and revising existing job descriptions.
• Six months of implementation support and training for HR.
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Compensation and Classification RFP
5. Engagement & Communication Expectations
• Engage with the City Council/city leadership on the front end to facilitate a framing discussion about
compensation philosophy.
• Delivery of a final comprehensive report and presentation to City Manager, Mayor, and City Council.
• A minimum of six on-site presentations to Executive Leadership, 15 on-site and 15 virtual employee
presentations.
• Detailed communication plan for leadership and employees on the full project.
50. Compensation Amount and Schedule. Clearly outline any cost associated with the required services on a separate fee
addendum. Identify and define the payment method and schedule of payment.
The City will make payments based on a negotiated payment schedule. Each billing must consist of an invoice and progress
report. No payment will be made until the project manager has approved the invoice.
60. Definitions in this RFP: City, RFP, Proposal, Candidate, Contractor, Should. Unless the context indicates otherwise –
(a) The expressions “RFP,” “this RFP,” and “the RFP” refer to this document as it may be amended or updated. (b) “City”
and “city” mean the City of Durham. (c) The “proposal” or "Bid" is the response of a person, firm, or corporation proposing
to provide the services sought by this RFP. (d) The word “Candidate” or “candidate” is the person, firm, or corporation that
submits a proposal or that is considering submitting a proposal. (e) The word “Contractor” or “contractor” is the person,
firm, or corporation with which the City enters into a contract to provide the services sought by this RFP. That is,
“contractor” generally refers to a successful candidate that has obtained a fully executed contract with the City, while
“candidate” is generally reserved to the stage before a contract has been signed. (f) The word “should” is used to tell
candidates what the City thinks it wants and/or what the project manager thinks is best. Candidates that want to increase
the likelihood of being selected will, in general, do what the RFP says candidates “should” do, but failure to comply with all
“shoulds” will not necessarily and automatically result in rejection.
70. Contract. The City anticipates that at the conclusion of the RFP process there will be a contract between the City and
the successful candidate under which the successful candidate will provide the goods and services generally described in
this RFP. It is the City’s intention to use the contract that is attached as Exhibit A, modified and filled in to reflect the RFP
and the proposal. If a candidate objects to any of the contract provisions, it should state the objections in its proposal. An
objection does not guarantee that the City will change its contract provisions. Failure to provide objections creates an
assumption that the candidate accepts all standard City contract terms and conditions.
If federal assistance or funds are used in conjunction with the services provided by the candidate, clauses for contracts
involving federal financial assistance shall be incorporated into contract. The Candidate is required to be familiar with these
federal assistance clauses and to comply with them.
80. Trade Secrets and Confidentiality. As a general rule, all submissions to the City are available to any member of the
public. However, if materials qualify as provided in this section, the City will take reasonable steps to keep trade secrets
confidential.
Definitions.
In this section (Trade Secrets and Confidentiality) –
The term “candidate” includes the candidate as contractor (that is, after it is a party to a contract with the City).
The term “trade secret” means business or technical information, including but not limited to a formula, pattern,
program, device, compilation of information, method, technique, or process that:
a. Derives independent actual or potential commercial value from not being generally known or readily
ascertainable through independent development or reverse engineering by persons who can obtain economic
value from its disclosure or use; and
b. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
The existence of a trade secret shall not be negated merely because the information comprising the trade
secret has also been developed, used, or owned independently by more than one person, or licensed to other
persons.
The term “record” means all documents, papers, letters, maps, books, photographs, films, sound recordings, magnetic
or other tapes, electronic data-processing records, artifacts, or other documentary material, regardless of physical form
or characteristics, received by the City of Durham in connection with the candidate’s proposal.
(a) Designation of Confidential Records. To the extent that the candidate wishes to maintain the confidentiality
of trade secrets contained in materials provided to the City, the candidate shall prominently designate the
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Compensation and Classification RFP
This is the opportunity summary page. It provides an overview of this opportunity and a preview of the attached documentation.