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Notice of Request for Proposals for Actuarial, Examination and CPA Services

Responses due no later than May 30, 2014, at 3:00 PM CT

Contact: Reyn Norman

(___) ___-____

5/1/2014

[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.