[Notice issued May 1, 2014]
[Notice revised May 20, 2014]
The
Alabama Department of Insurance (DOI) hereby gives notice of the issuance of
Requests for Proposals (RFP) for qualified respondents to provide the DOI with
the following professional services:
- Property and Casualty Insurance
Actuarial Services
- Life and Disability Insurance
Actuarial Services
- Certified Public Accountant
Services
- Insurer Examination Services
- Insurer Market Conduct
Examination Services
- Insurer Investments Examination
Services
- Insurer Automated Examination Services
Contracts
are contemplated to be awarded for the one-year of term October 1, 2014,
through September 30, 2015. Responses to
the RFP must be received not later than May 30, 2014, at 3:00 PM CDT. Each response must contain an original and
three identical copies of the proposal.
Additional
information is set forth in the attached files, each accessible in Adobe format:
RFP for Professional Actuarial Services for Property and Casualty Insurance: Adobe RFP for Professional Actuarial Services for Life and Disability Insurance: Adobe RFP for Professional CPA Services: Adobe RFP for Professional Insurer Examination Services: Adobe RFP for Professional Insurer Market Conduct Examination Services: Adobe RFP for Professional Insurer Investments Examination Services: Adobe RFP for Professional Computer Audit Services: Adobe
Exhibit
B, the TeamMate® Confidentiality Agreement, must be submitted with every
proposal except for CPA. A PDF copy is
included above with each RFP. An
additional copy in Word format is accessible here:
Word
State
law requires a Disclosure Statement to be submitted with every proposal. The form can be accessed from the Attorney
General’s Web site at the following address:
"http://www.ago.state.al.us/Page-Vendor-Disclosure-Statement-Information-and-Instructions">
http://www.ago.state.al.us/Page-Vendor-Disclosure-Statement-Information-and-Instructions
For
the procedures and forms for foreign corporations to qualify to do business in
the State of Alabama, please visit the web page for the Alabama Secretary of
State at http://www.sos.state.al.us/.
For
additional information, please send an E-Mail request to Reyn.Norman@insurance.alabama.gov
REVISIONS
TO THIS NEWS RELEASE AND RESPONSES TO QUESTIONS WILL BE POSTED BELOW.
General
Questions applicable to multiple RFPs:
Question
1: Section 1.3.2 – Is the use of TeamMate® software absolutely
required with this project? Are other methods to share data and report an
option?
Answer 1:
For those RFPs requiring a demonstrated knowledge and experience in
using the TeamMate® software, this is a requirement. Additionally, in paragraph 2.3.6, a copy of
the TeamMate® license must be included with any proposal. No other method of work paper preparation and
maintenance will be accepted.
Question
2: We would like to better
position ourselves and was wondering if it was possible to obtain copies of the
winning proposal from last year.
Answer 2: The
current actuarial contractors are Latta, Langston
& Dyer (life only), Merlinos & Associates, Inc. (P&C only) and
Taylor-Walker & Associates, Inc. (life and P&C). The current CPA contractors are Carr, Riggs
& Ingram, LLC, and TaylorChandler, LLC.
The current examiner contractors are Eide Bailly LLP and Examination
Resources, LLC. The current Market
Conduct Examiner contractors are NorthStarExams, LLC, and Insurance Logic,
Inc. We respectfully decline to make the
proposals available from last year and even if disclosed may not be indicative
of proposals for the next fiscal year; however, here are the total amounts paid
for Actuarial, CPA, Examiner, and MC Examiner services and expenses in the
fiscal years indicated:
Actuarial:
FY2010 (10/1/09 – 9/30/10)
$451,746
FY2011 (10/1/10 – 9/30/11) $734,011
FY2012 (10/1/11 – 9/30/12)
$497,710
FY2013 (10/1/12 – 9/30/13) $458,216
FY2014 (10/1/13 – 5/9/14) $122,006
CPA:
FY2010 (10/1/09 – 9/30/10)
$875
FY2011 (10/1/10 – 9/30/11) $13,325
FY2012 (10/1/11 – 9/30/12)
$12,956
FY2013 (10/1/12 – 9/30/13) $-0-
FY2014 (10/1/13 – 5/9/14) $-0-
Examiner:
FY2010 (10/1/09 – 9/30/10)
$447,746
FY2011 (10/1/10 – 9/30/11) $5,470
FY2012 (10/1/11 – 9/30/12)
$4,517
FY2013 (10/1/12 – 9/30/13) $-0-
FY2014 (10/1/13 – 5/9/14) $-0-
Market Conduct Examiner:
FY2010 (10/1/09 – 9/30/10)
$-0-
FY2011 (10/1/10 – 9/30/11) $-0-
FY2012 (10/1/11 – 9/30/12)
$49,604
FY2013 (10/1/12 – 9/30/13) $45,679
FY2014 (10/1/13 – 5/9/14) $-0-
Question
3: Can a vendor
submit a proposal for only one employee classification service such as Computer
Audit Specialist, or does the vendor need to submit on every employee
classification?
Answer
3: For RFPs requesting multiple employees, such
as RFP#ALDOI-2014-04 for Insurer Examination Services, a proposal for less than
all the employee positions contemplated will likely hurt the scoring for the
proposal However, there are specific
proposals for positions also listed here, such as RFP#ALDOI-2014-05 for Insurer
Market Conduct Examination Services, RFP#ALDOI-2014-06 for Insurer Investments
Examination Services, and RFP#ALDOI-2014-07 for Insurer Automated Examination
Services.
Question
4: The RFP states that only
individuals listed in the proposal may be used on projects under a
contract. To the extent new individuals
with appropriate skills are added to our team, can they be added to the
proposal after the contract is awarded?
Answer
4: Yes; however, the contractor should promptly
notify the DOI contact person of any personnel changes from the individuals
listed in the proposal.
Question
5: For demonstrated
experience/knowledge areas specified in the RFP, can we use the experience and
knowledge of our individual actuaries gained prior to their employment with our
firm?
Answer
5: Yes.
The knowledge and experience of the individuals listed is how a proposal
is scored.
Question
6: How will specific projects
be awarded to the contractors if multiple contracts are awarded
(qualification-based, rotational basis, other)?
Answer
6: Typically, we will select one contractor for
each discipline based on qualifications, experience, price, etc., which will be
the primary contractor for that discipline.
Secondary contractors will be used in case of a conflict with the primary
contractor or if the primary contractor is otherwise unable to handle the
project. These secondary contractors
will also be utilized in order based on qualifications, experience, price, etc.
Question
7: What aspects of the current
actuarial services being provided would the department like to see continue,
and what could be improved upon?
Answer
7: Although there is perhaps always room for
improvement, the department is generally satisfied with the performance of
services currently provided.
Question
8: How many examinations does the ALDOI anticipate awarding to
contracted professionals during the contract period?
Answer 8: We probably average about
two examinations each year by contracted professionals. Some years there may be as many as six, some
years there may be none at all.
Question
9: Please provide the approximate range of size of the companies to
be examined in terms of premium revenue, loss reserves or surplus and the
nature of their business.
Answer 9: We primarily examine
Alabama-domiciled insurers, which range in size from about $2 million to $500
million in annual premium revenue and include all types of insurers.
Questions
applicable only to the P&C Actuary RFP:
Question
10: We have a question regarding the above referenced RFPs pertaining
to paragraph 2.3.8. Pricing - Format.
Under Employee Classification, the Life & Disability RFP states
that an Actuary - Level I can be an FSA, ASA, MAAA with 10 or more years
relevant experience. However, the
Property & Casualty RFP states that an Actuary - Level I must be an FCAS
with 10 or more years relevant experience.
Would the Department be willing to also accept an ACAS with 10 or more
years relevant experience as a Level I Actuary under the Property and Casualty
RFP?
Answer 10: No. As indicated in Paragraph 1.3.1. of RFP#ALDOI-2014-01,
FCAS is preferred. Other accredited
actuaries are to file under Level II.
Question
11: How long have the current actuaries been providing their service?
Answer 11: Merlinos
& Associates, Inc., has had a contract with this department for over 20
years. Taylor-Walker & Associates,
Inc., has had a contract with this department for over 10 years.
Question
12: What were the annual fees
charges and the terms of the contracts?
Answer
12: A list of the current
contractors is provided above in response to Question 2. The contracts currently in use are
substantially similar to those posted for use next year. We respectfully decline to provide the
specific amounts paid to the current contractors.
Question
13: Has the scope of work changed since the work was done?
Answer 13: No.
Question
14: Can we get a copy of the
most recent actuarial report?
Answer 14: We
respectfully decline to provide copies of actuarial reports.
Question
15: Can we get a copy of the
proposal of the last successful bidder?
Answer 15: We
respectfully decline to provide the copies of the proposals submitted.
Question
16: Will you share the
evaluation sheet and perform a debriefing if requested at the end of the
process?
Answer 16: We
respectfully decline to provide the evaluation sheet. We have not previously performed a debriefing
with the proposed contractors and it is not anticipated we would start doing so
this year.