Q and A set four 21R0009.pdf

LES Health & Life Insurance 19GE5021R0009_00008

US Embassy Cairo, Egypt

Questions and Answers (Q&A)

RPSO has received the following four (4 ) questions (Q), and is hereby providing the following answers (A).

1. Q: Payment terms mentioned in the solicitation is on monthly basis, while the current mode of payment and billing is on semi annual basis which is more reliable due to the huge size of the policy that will make it easier for the Embassy and the contractor to reconcile the invoices between both parties.

A: Post agrees that the payment should be on Semi-annual basis.

Section I, Sub Section V.92 is changed to the following:

V.9.3 Invoices, Review and Payment

Invoices shall be issued semi-annual. Value Added Tax (VAT), if applicable, shall be a separate line item on each invoice.

Each invoice shall include the items listed in Section 2, FAR 52.212-4 g.1.

Payment shall be made in the currency the contractor specified in Section1.III.C Prices.

2. Q: Regarding the life insurance scheme, it is dully noted the raised request of eliminating any

Evidence of insurability to be included in the solicitation.

Yet, applying Free cover limit is a base of any life insurance risk while the risk shall be mitigated and relevant with the group size.

The Contractor appreciates the US embassy request, and willing to introduce the highest Free cover limit to minimize the count of pending for evidence of insurability to go through medical

UW. Noting that what the contractor intends to offer will be higher than the max sum insured volume based on the latest data in our box by almost double. In nutshell, our request is to include FSA (free cover limit) but at a high value which we expect no one can reach it at least of the time being.

A: Contractor needs to stick to the solicitation terms. Post cannot add a free cover limit. Life insurance is based on the employee’s salary at the time of death or disability.

3. Q: As agreed, we are binding to clause A.3.1 in page 8 of the solicitation, on which we can apply any adjustments after the 1st twelve months.

LES Health & Life Insurance 19GE5021R0009_00008

US Embassy Cairo, Egypt

In the meantime as clarified by US procurement center the economic price adjustments in page

54 under article of 52.216-4 – ECONOMIC PRICE ADJUSTMENT – LABOR AND MATERIAL

(JAN2017) not related to the contractor and it belongs to internal labor laws at US.

A: That is correct.

Section 1, Sub Section III. A.3.1 applies to the Economic Price Adjustment for Insurance contracts.

4. Q: Is the 2 % tax on the premium due according to Kanes Zadroga Act?

A: Per clause FAR 52.229-12 the withholding of the 2% excise tax applies to contractors that certified in the Representation 52.229-11 that they are a foreign person and are claiming partial or no exemption on the IRS Form W-14.

The exemptions from the withholding under this provision are described at 26 CFR 1.5000C-

1(d)(5) through (7): e.g. certain international agreements (qualified income tax treaty; see IRS

Notice 2015-35 available on the internet) or services provided in a country that is a party of an international procurement agreement ( see 48 CFR 25.400(a)(1)).

If the Contractor is a foreign person and has only a partial or no exemption to the withholding, the Contractor shall include the Department of the Treasury Internal Revenue Service Form W-

14, Certificate of Foreign Contracting Party Receiving Federal Procurement Payments, with each voucher or invoice submitted under this contract throughout the period in which this status is applicable. The excise tax withholding is applied at the payment level, not at the contract level.