SEALED BID REQUEST for PROPOSAL Excess Liability Program
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Department of Buildings and General Services Agency of Administration BGS Financial Operations Office of Purchasing & Contracting 10 Baldwin St [phone] 802-828-2211 Montpelier VT05633-7501 [fax] 802-828-2222 http://bgs.vermont.gov/purchasing SEALED BID REQUEST FOR PROPOSAL Excess Liability Program ISSUE DATE: April 19, 2012 QUESTIONS DUE BY: May 9, 2012 at 4:30 PM DUE DATE and TIME: June 15, 2012 at 1:00 PM LOCATION OF BID OPENING: 10 Baldwin St, Montpelier PLEASE BE ADVISED THAT ALL NOTIFICATIONS, RELEASES, AND AMENDMENTS ASSOCIATED WITH THIS RFP WILL BE POSTED AT: http://bgs.vermont.gov/purchasing/bids THE STATE WILL MAKE NO ATTEMPT TO CONTACT VENDORS WITH UPDATED INFORMATION. IT IS THE RESPONSIBILITY OF EACH VENDOR TO PERIODICALLY CHECK http://bgs.vermont.gov/purchasing/bids FOR ANY AND ALL NOTIFICATIONS, RELEASES AND AMENDMENTS ASSOCIATED WITH THE RFP. PURCHASING AGENT: Linda Wortman TELEPHONE: (802) 828-4658 E-MAIL: [email protected] FAX: (802) 828-2222 STATE OF VERMONT OFFICE OF PURCHASING & CONTRACTING RFP – Excess Liability Program PAGE 1 1. OVERVIEW: 1.1. SCOPE: The Office of Purchasing & Contracting is seeking to establish purchasing agreements with one or more companies that can provide that can provide a program of insurance for general and automobile liability, employment practices liability and discrimination or an excess liability program covering the operations of the State of Vermont. Proposals may be submitted by a company or companies or their agents licensed to transact business in the State of Vermont. Vendors preparing responses will not be compensated for their proposal efforts. 1.2. BACKGROUND: Prior to 1990 the State purchased commercial insurance for a fully insured program. The limits then in effect were $75,000 per person / $300,000 per occurrence. These values had been in place since the early sixties. In 1988 the State began a two-step process to bring its sovereign immunity limits to the current values. In 1989 a statute was passed enabling the State to self-insure some or all of its liability exposure. The State began its current program of self-insurance/excess insurance on July 1, 1990. Self-insured retentions were $150,000 for the first three years of the program and then were changed to $250,000 for the remainder of the term. Effective July 1, 2011 the tort claim limits were again revised in an effort to retain relevance and to maintain a consistent relative value with the intent of the original framers of the tort claims act. The current limits are $500,000 per person / $2,000,000 per occurrence. With the change to the tort claims limits, the self insured retention that the state maintains was changed to $500,000 per occurrence. Vermont enjoys a strong tort liability act that provides for immunity excess of $500,000 per person and $2,000,000 per occurrence under state law. There are also a number of areas where absolute immunity is imposed (see 12 V.S.A. §5601-5605, copy attached, to review the current statute). The practice of the State is to review current limits to ensure their relevance to the legislative intent of providing fair compensation to injured parties while protecting the state from unreasonable awards. There is an ongoing possibility that these values may be adjusted during the next three years but it would be extremely unlikely given the recent revision effective July 1, 2011. Any revision would be enacted in an effort to maintain the real value of the limits relative to those values when statute was initially passed. This would potentially have an impact on the requested insured limits, the self insured retention, and possibly on damage awards. The State employed Crawford & Company as its third party administrator (TPA) from 1990 through 2005. The State then took over the administration of new claims in-house while allowing Crawford to continue to administer existing claims. In June of 2007 the State assumed in-house administration of the remaining caseload releasing Crawford from further responsibilities. 1.3. CONTRACT PERIOD: Contracts arising from this request for proposal will be for a period of three years. Proposed start date will be July 1, 2012 1.4. CONTRACT VALUE/QUANTITY: The estimated annual value of this contract is $375,000. The annual value and quantities are estimated only based on prior usage; actual purchases may be higher or lower depending on the state’s needs. 1.5. SINGLE POINT OF CONTACT: All communications concerning this Request For Proposal (RFP) are to be addressed in writing to the attention of: Linda Wortman Purchasing Agent, State of Vermont, Office of Purchasing & Contracting, 10 Baldwin St - Montpelier, Montpelier, VT 05633-7501. Linda Wortman, Purchasing Agent is the sole contact for this proposal. Actual contact with any other party or attempts by bidders to contact any other party could result in the rejection of their proposal. 1.6. BIDDERS’ CONFERENCE: A bidders’ conference will not be held. 1.7. QUESTION AND ANSWER PERIOD: Any vendor requiring clarification of any section of this proposal or wishing to comment or take exception to any requirements or other portion of the RFP must submit specific questions in writing no later than May 9, 2012 at 4:30pm. Questions may be e-mailed to [email protected] . Any objection to the RFP, or to any provision of the RFP, that is not raised in writing on or before the last day of the question period is waived. At the close of the question period and after a reasonable period of time to develop responses, a copy of all questions or comments and the State's responses will be posted on the State’s web site http://bgs.vermont.gov/purchasing/bids . Every effort will be made to have these available as soon after the question period ends as possible; contingent on the number and complexity of the questions. STATE OF VERMONT OFFICE OF PURCHASING & CONTRACTING RFP – Excess Liability Program PAGE 2 1.8. INSTRUCTIONS FOR BIDDERS: see sections 5 and 6. 2. DETAILED REQUIREMENTS: The State of Vermont is soliciting bids to provide coverage for its general and automobile liability, civil rights, discrimination, and employment practices liability. This is a broad program covering all operations of the state. The statewide Driver’s Education Program (driver’s training for high school students) is included in the overall automobile program affording automobile liability and physical damage coverage. A primary program for physical damage coverage for this fleet of driver’s education vehicles is specifically requested. Entities covered under the program are defined in VSA Title 3: Executive, Chapter 29: CLAIMS AGAINST STATE EMPLOYEES 3 V.S.A. § 1101. Obligation of state to defend employees; definition (http://www.leg.state.vt.us/statutes/fullsection.cfm?Title=03&Chapter=029&Section=01101 ) Proposals may include all or part(s) of the total RFP. You must indicate in your initial proposal if any portion of your proposal cannot stand by itself. The state retains the right to select all or part of any submitted proposal. Each discrete area of your proposal should be presented reflecting the individual unit pricing. The state does not approach this RFP with any preconceived ideas of what form this program should take. We are currently operating with a self-insured retention program with a specific stop-loss limit. We are interested in exploring the cost and availability of an aggregate stop-loss program as an option. It is the policy of the state to look at all proposals with an open mind and to select the program that serves the best interests of the state. It is important that bidders be clear and concise regarding program parameters and the strengths of proposal(s). You must include copies of all policy forms and endorsements as part of your proposal package. As is true with other governmental bidding opportunities, this is a single, sealed bid process. While you may present more than one proposal/option, this is your only opportunity to present your best program(s). There will be no opportunity to come back and revise your pricing/proposal following the bid opening. 2.1. ALTERNATE PROPOSALS: Alternate proposals are invited and may take any form deemed advantageous by the state. Options may include fully insured, large deductible, self insured retention, or fully self insured programs providing full third party administrative services. Both specific and aggregate stop-loss options are invited. Other alternatives will be entertained. All serious proposals will be reviewed and evaluated. Any alternate proposals should fully outline any proposed program. Items to address include, but are not limited to: full program parameters, financing costs; loss adjustment costs; levels of service provided and those available on a fee basis with fee schedules; schedule of available staff for claims adjustment (if proposed) within Vermont, and response timetables as well as any policy forms and endorsements. Under all program scenarios the state will retain the right of first refusal regarding representation for all litigated cases. Prior to counsel selection, the Risk Management Division will review for determination and direction. In addition, the office of the attorney general shall have the right to participate in the defense of all claims, even those defended by (outside) insurance counsel. 2.2. AUTHORITY TO SELF-INSURE: The State is authorized to self insure liability for the activities of all state agencies, legislature, departments, state colleges, judiciary, quasi-state agencies, boards, commissions and employees, as defined in 3 V.S.A. § 1101 (29 V.S.A. § 1406. Liability insurance, http://www.leg.state.vt.us/statutes/fullsection.cfm?Title=29&Chapter=055&Section=01406 ). Note; while we are authorized to assume the liability of the state colleges, we do not include them in our program and no coverage is requested for that entity.