Q&A_2_for_Solicitation_19BE2019R0002.docx

Chapter 4 - Solicitation Documents October 2004 Questions and Answers 2 Solicitation number 19BE2019R0002 Life Insurance Services.

The attached questions were submitted:

1. Question: What is the requested proposal due date?

Answer: See Amendment 0001, dated June 3, 2019. The closing date of the solicitation is June 20, 2019 at 16:00 hrs Central European time.

2. Question: Please confirm if effective date 1/1/20 or 10/1/2019 effective date.

Answer: See answer to question 2 in the first series of Q&A’s.

3. Question: What is the nature of work?

Answer: See Section B.1 Group Life Insurance Services, The contractor shall provide Group Life Insurance Services to employees of the Government of the United States of America in Belgium.

4. Question: Can you confirm all employees are US citizens working in Belgium? The Q&A suggests otherwise due to confidentiality reasons.

Answer: The majority of employees for which we seek a contractor to provide Life Insurance Services are Belgian citizens. A minority of the employees have a different nationality and are working in Belgium.

5. Question: It appears Waiver of Premium is being requested, can you please confirm?

Answer: See answer to question 6 in the first series of Q&A’s. The USG will pay 100% of the premium costs, including a waiver of premiums provision for employees on long-term sick leave starting with the 4th month of sick leave and employees on maternity leave.

6. Question: Underwriting holds the right to review and change rates should demographics shift by >20%. This contract appears to waive that right, correct?

Answer: See SECTION B.4 Economic Price Adjustment – Life Insurance premiums B.4.1. Premium Adjustment Based on Experience - For life insurance, prices may be adjusted upward or downward based on the experience rating of the Mission(s) covered by this contract. No adjustment will be allowed during the first twelve months. After such time, the Contractor or the Government may request an adjustment in premiums on an annual basis. Adjustments are not retroactive to previous contract terms. Before any such adjustment is made, the Contractor agrees to provide the Government a balance sheet showing three main components for the time period: (1) receipts (premiums received) minus the retention amount and (2) claims paid. The retention amount is not subject to adjustment. The Government reserves the right to have an independent third party review the balance sheet and claims and make recommendations regarding the appropriateness of the requested adjustment. Any adjustment shall be subject to mutual agreement of the parties and shall result in a written modification to the contract. Any failure to reach agreement under this clause shall be subject to the procedures in the Disputes clause.

B.4.2. Premium Adjustment Based on Law: The rates may also be adjusted during the performance period of the contract as a result of laws enacted by the host Government, if such change in the laws has a direct impact on the cost to the Contractor to perform this contract at the rate contracted for herein. In that event, the Contracting Officer may enter into negotiations with the Contractor to modify the contract to adjust the premium rate. The Contractor agrees to provide all documentation necessary to support any requested adjustment.

7. Question: Below are three excerpts from the Q&A. They are expecting a 1 year base contract with 4 optional years, no termination clause for the insurer with guaranteed rates for all 5 years given at proposal?

Failure to offer this means no consideration correct?

Answer: See answer to question 19 in the first series of Q&A’s.

Correct. The contractor cannot terminate the contract after one year. In accordance with Paragraph F.3 the Government can unilaterally exercise option years as defined in Section B. See Section I FAR Clause 52.217-9, Option to Extend the Term of the Contract.

8. Question: Do we have any negotiation in the Contract clause?

Answer: No, the contract clause cannot be negotiated.