Notice of Request for Proposals

Contact: Kathleen Healey, Associate Counsel


[Notice issued March 12, 2010]

The Alabama Department of Insurance (DOI) hereby gives notice of the issuance of a Request for Proposals (RFP) for qualified respondents to provide the DOI with professional Lockbox Banking Services.

A contract is contemplated to be awarded for the term July 1, 2010, through June 30, 2012.

Responses to the RFP must be received not later than April 12, 2010, at 3:00 PM CDT.  Each response should be made up of three individual files, as follows:  The RFP, the exhibits to the RFP, and a Disclosure Statement.  All three documents must accompany any response.

Additional information is set forth in the attached documents, each accessible in either Word or Adobe format, as indicated:

  • Question: Does the DOI require the Lockbox PO Box to remain in Birmingham? Will the DOI consider locating the PO Box outside the state of Alabama if mail float delivery can be improved? Does the DOI require the bank to have a branch office in Montgomery?

    Answer: While the RFP does not specifically state this, it is anticipated that the lockbox address will also be in the state of Alabama. There are three general qualifications set forth in paragraph 2.1.1. one of which is paragraph which reads that the firm must be a “bank or savings association designated as a state depositary in accordance with Section 41-14-1, Code of Alabama, 1975.” Section, reads, “Must maintain a principal office in the state of Alabama.” The third criteria addresses processing. Failure to satisfy all three of these qualifications is 2.1.1. will disqualify a proposal.

  • Question: Does the processing site need to be located within the state of AL?

    Answer: Paragraph requires the firm to have a “principal office” in the state of Alabama. While the RFP does not specifically state this, it is anticipated that the processing site will be at a location within the state of Alabama. Paragraph 3.28 indicates the DOI can require daily delivery of all materials received through the lockbox. Paragraph 7 of Section B of Exhibits C1, and C2 requires overnight delivery of all material to the DOI. The DOI currently requires daily delivery by 10:00 AM of the prior day’s materials.

  • Question: In Section 2.2.2 the DOI is requesting transfer of uncollected funds; does DOI understand this will result in an additional fee for negative collected balances?

    Answer: We are unclear what you are referring to as “negative collected balances” and unable to respond to this question.

  • Question: In Section 2.2.5, please explain the need for a 2 year collateral pledge after the bank has met the criteria? Also in Section 2.2.4, please explain what financial criteria needs to be met? i.e. providing copies of quarterly call reports and annual report or is something else required.

    Answer: We are unclear as to what information you are seeking with this question, however, suggest you review the state depositary requirements outlined in Section 41-14-1, Code of Alabama, 1975.