Pre-proposal Conference Minutes - Life Insurance.docx

Embassy of the United States of America September 24, 2020

Embassy of the United States of America Paseo de la Reforma No. 305, Colonia Cuauhtémoc, 06500 Mexico City.

Minutes from Pre-Proposal Conference of September 18, 2020

This meeting was held in Spanish. We have translated the minute in English.

Introduction

The Contracting Specialist welcomed all attendees, introduced COR, C.O. Payroll & Allowance Manager, Human Resources Officer and Contracting Specialists.

Discussion of the Solicitation Package

Purpose:

The purpose of this pre-quotation conference is to brief all prospective offerors about the solicitation. In this meeting, you will notice how doing business with the U.S. Government differs from commercial practice because the solicitation and award processes are regulated under FAR.

Pre-proposal conference minutes will be posted on Contracts Opportunities in BETA.SAM website. We post the minute so other vendors won’t have a disadvantage for not being able to join this virtual meeting.

Before we go through the solicitation, I would like to point out the following important notes:

Statements

The statements made here do NOT change the solicitation. All changes will be made by written amendment to the solicitation.

Amendment.

It may be necessary to amend (change) the solicitation during the solicitation period for such reasons as:

All amendments will be posted on Contracts Opportunities in BETA.SAM website. The U.S. Government implements the Fair Release of information, in other words, what you tell one, you must tell all.

Questions

I have received few questions. We will take note of additional questions that are made here today and will add them in the list of questions that will be published after submissions deadline for questions.

The Q&A will be posted on Contracts Opportunities in BETA.SAM website.

Solicitation

The solicitation is divided into to 4 Parts:

Part I – The Schedule

Part I is divided into the following 8 sections (A through H):

Section B – Supplies or service and price/costs

· The Contractor shall provide the Group Life Insurance services described herein to employees of the Government of the United States of America in the Embassy and Consulates in Mexico.

· Riders are also employees of the Government; however, the DOS shall not be responsible, nor liable, for any riders.

· Type of Contract. This is a fixed-price with economic-price- adjustment-requirements type contract.

· Currency. U.S. firms are eligible to be paid in U.S. dollars. U.S. firms desiring to be paid in U.S. dollars should submit their offer in U.S. dollars. A U.S. firm is defined as a company which operates as a corporation incorporated under the laws of a state within the United States. Local companies are eligible to be paid in U.S. dollars provided that such company has a bank account in U.S. dollars at a Local Bank.

· Value Added Tax (VAT) is not applicable to this contract and shall not be included in the CLIN rates or Invoices.

· Premium Rates. The fixed prices/premium rates in Pesos, Mexican currency per one thousand of salary to provide life insurance, accidental death and total disability coverage. DO NOT INCLUDE RIDERS IN SECTION B.

· Administrative Retention Amounts. The retention amount is part of the premium and may include, but not be limited to, such costs as overhead and general and administrative costs. It will also include any profit. Essentially, it includes all costs except the actual portion of the premium intended to fund claims paid to the claimant.

· Economic Price-adjustment – For life insurance, prices may be adjusted upward or downward based on the experience rating of the Mission(s) covered by this contract, and it specifically excludes all riders in B.5.1. 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, (2) number of insurance plans and (3) claims paid. The information shall be provided per type of premium, ie per line item. The retention amount is not subject to adjustment. The Government reserves the right to select an independent third party to 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.

Speaker: Christian Alvarez-Maciel

Section C – Description of services

The Government of the United States of America requires group life insurance coverage for its employees, as further described in herein, in the U.S. Embassy Mexico City, U.S. Consulates, and other offices located in the Mexican territory.

· Amount of Employee Life Insurance – Natural Death

· Employee’s named beneficiary will receive an amount equal to thirty-three (33) times the amount of monthly basic salary in the event the employee dies of natural causes.

· Amount of Accidental Death

· Employee’s named beneficiary will receive an amount equal to fifty (50) times the amount of monthly basic salary, in the event the employee is killed in an accident or work related death.

· Total Permanent Disability Coverage

· The employee will receive an amount equal to thirty-five (35) times the amount of monthly basic salary when employment ends due to total permanent disability.

Life Insurance Benefits Conditions and Limitations

No benefit shall be payable under this contract if the employee's bodily injuries have been caused directly or indirectly and totally or partially by:

3. An accident resulting from the employee being under the influence of alcohol, drugs or other toxic substance unless administered by a physician. Death as a result of a disease or physical or mental infirmities and medical or surgical treatment thereof (except pyogenic infection due to an accidental cut or wound) shall be considered a natural and not an accidental death. Suicide will not be covered.

Eligible Participants

· All current active employees of the United States Government, employed within the geographic boundaries of Mexico;

· Foreign Service Nationals (FSNs) employed under a non-temporary direct hire appointments, Personal Services Agreements (PSAs) and Personal Services Contracts (PSCs);

· Locally hired U.S. citizens employed under direct hire appointments, PSAs, and PSCs;

Participants Covered Under a Rider

APHIS is an agency that is managed separately, however, they are also U.S.G. employees.

Section D – Packaging and Marketing – N/A

Speaker: Daenne Guevara

Section E – Inspection and Acceptance

· QAPS designed to provide an effective surveillance method to promote effective Contractor performance. The QASP provides a method for the Contracting Officer's Representative (COR) to monitor Contractor performance, advise the Contractor of unsatisfactory performance, and notify the Contracting Officer of continued unsatisfactory performance. The Contractor, not the Government, is responsible for management and quality control to meet the terms of the contract.

· The Contractor shall designate a Quality Assurance Team who shall be responsible for managing issues relating to complaints. Upon receiving the complaints, the team shall take immediate corrective action to ensure effective operation.

Section F – Deliveries or Performance

· Period of Performance. The performance period of this contract is one year after contract award with four (4) one-year options to renew.

· FAR 52.217-9, Option to Extend the Term of the Contract – The U.S.G. has the right to exercise or not the following option.

· The Government may exercise the option set forth at Section I, "FAR 52.217-8, Option to Extend Services" – another 6 months.

· Insurance Policies. The Contractor shall provide individual insurance policies for all U.S. Government employees within (14) fourteen calendar days of receiving the corresponding Task Order. Insurance Policies shall be provided in electronic and paper format.

· Insurance policies should end at 12:01 a.m. on Expiration Date, in other words, the insurance policies end at 12:01 a.m. on the date the period of the performance ends for the base or any option year.

Section G – Contract Administration

· The COR for this contract is Christian Alvarez-Maciel, Compensation and Legal Coordinator. COR duties are explain in section G.2. COR Duties.

Speaker: Fernando de la Cruz

· Currency. U.S. firms are eligible to be paid in U.S. dollars. U.S. firms desiring to be paid in U.S. dollars should submit their offer in U.S. dollars. A U.S. firm is defined as a company which operates as a corporation incorporated under the laws of a state within the United States. Local companies are eligible to be paid in U.S. dollars provided that such company has a bank account in U.S. dollars at a Local Bank.

· Value Added Tax (VAT) is not applicable to this contract and shall not be included in the CLIN rates or Invoices.

· All invoices should contain the minimum requirements in Section G.4.1.1. Electronic Invoices Requirements.

· The Contractor shall submit invoices, at the beginning of covered or quarterly period, per task order with the total quarterly amount within ten (10) days of receiving a fully approved task order. All task orders delivered to the Contractor shall include the total yearly amount, however, the payments shall be made in quarterly basis.

· All invoices should be sent to mexfmcinvoices@state.gov, Cc: DelacruzFS@state.gov; and MexicoSegurosMV@state.gov

· If at any time during performance of the contract the Government finds that the Contractor has been overpaid because the number of employees covered has decreased, the Contracting Officer may either allow that overpayment to be credited to the Government’s account or require that the Contractor refund the overpayment.

· Post’s Managerial and Administrative Support – Three offices involved are General Services Office, Financial Management Center and Human Resources.

Speaker: Daenne Guevara

· Contractors Project Manager - The Contractor shall designate a Project Manager for the daily administration of this contract, as well as for any urgent requests. The project manager should comply with the level of English Proficiency outline in Section G.8.2. Project Manager Requirements.

Section H – Special Contract Requirements

· All contractors shall understand and comply with confidentiality, security, and conduct standards as well as licenses and local laws.

· Administrative Records. The Contractor shall maintain life insurance files for each covered employee including receipts and proof of paid claims.

· How to resolve or settle life insurance claims. The Contractor shall pay the employee's named beneficiary, legal heir, or estate the total amount of the claim within 60 days from the date the Contractor receives a completed permanent disability or death claim.

· All authority to change or modify the basic IDIQ contract, including the exercising of any options, remains with the Contracting Officer assigned to the General Services Office at the U.S. Embassy Mexico City.

· Signature limitations. The Contracting Officer shall not sign commercial contracts, agreements, or any other terms and conditions that are contrary to this Contract, U.S. Department of State regulations, or any Federal law or policy.

· Additionally, the Contracting Officer is not required to provide copies of any kind of identification documents neither in hardcopy nor in electronic format.

Part 2 – Contract Clauses

Section I – Contract Clauses – Go over important or new clauses.

· Reference FAR 52.222-50, Combating Trafficking in Persons and the Contractors responsibility to prevent such activities from occurring. The COR also has responsibilities to monitor these types of activities. If the government has a suspicion, it will be investigated.

· FAR Clause 52.229-12 - Tax on Certain Foreign Procurement Payments. This Act of the Internal Revenue Code imposes a tax of two percent (2%) on the amount of payment for each payment. Unless the exceptions in FAR 29.402-3 apply. If an exception does apply then you will need to highlight the requirement to fill out Internal Revenue Service Form W-14 and the form is required with their offer and every invoice.

· FAR Clause 52.204-25 and two FAR provisions in Section K. On August 13th, an update to FAR Subpart 4.21, in support of National Defense Authorization Act (NDAA) Section 889 Part B went into effect. These changes extended the prohibition on acquiring “covered technologies” to prohibit contracting with entities making use of the “covered technologies”.

Part 3 – List of documents, exhibits, and other attachments.

Section J – List of Attachments

Exhibit 1 – U.S.G. Employees

· Have provided all the information required in order to provide an economic proposal.

Exhibit 2 – APHIS Employees Rider

· Provided this list for informational purposes only.

Exhibit 3 – Payment Registration Forms

· Please pick the correct format depending if the insurance company provides economic proposal in USD or Mexican Pesos.

Exhibit 4 – How to Obtain a DUNS Number and Register to SAM

· We have provided the detailed steps in order to register in DUNS, NCAGE and SAM. We cannot award the contract if their SAM registration is not active.

Exhibit 5 – Delivery/Task Order Form Sample

· Sample of a task order that shall be completed by the USG and sent to the contractor. The contractor must send the invoice along with the task order.

Part 4 – Representations and Instructions

Section K – Representations, Certifications, and Other Statement of Offerors

· This section must be completed if the insurance company has not registered in SAM or is in the process of registering in SAM. If SAM registration is active before submitting the offer, then only FAR clauses 52.204-24 and 52.204-26 as previously mentioned, must be completed and submitted in the offer.

Section L – Instructions, conditions, and notices to offerors

· Will not go into detail, however, it is very important that each proposal contains all of the requirements stated herein. The contractor must send their proposal in 3 volumes as outlined herein.

Section M – Evaluation Factors for Award

· This section explains how each proposal will be evaluated. It is the USG’s intention to award to the lowest priced, technically acceptable, responsible offeror. Proposals that contain more benefits (even if there is no increase in cost) or fewer benefits than those stated in the solicitation may be deemed technically unacceptable.

Last important notes:

· Brokers may participate in this competition, however, they must involve the insurance company in all stages of the solicitation and award processes. Meaning, they must share all the information we have provided so they are aware and understand our requirements.

· The representative signing the contract must have high level of authority.

· The USG will not provide any other information that is not stated in this solicitation. We will not provide information related to the condition of each employee or habits (smoker or non-smoker).

· The contractor shall provide all the personnel necessary to perform to the highest standards possible.

Submission deadlines:

Questions: September 25, 2020 before 12:00 noon (CT).

Proposals: October 9, 2020 before 12:00 noon (CT).

Conclusion

The conference concluded and attendees were thanked for their presence and expression of interest in serving the U.S. Government. The meeting was adjourned.

Sincerely, C. Melora Johnston Contracting Officer

SBU - CONTRACTING AND ACQUISITIONS

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