25-64121511-ITB Ocean Marine Open Cargo Attachment A SOW.pdf

Solicitation No. 25-64121511-ITB

Ocean Marine Hull and Open Cargo Insurance Page 1 of 10

Attachment A

Scope of Work

1. Department Insurance Program

The State of Florida has statutorily established the following two methods for state agencies and other governmental entities to obtain insurance coverage: (1) from the State Risk Management Trust Fund (SRMTF) administered by the Department of Financial Services, Division of Risk Management, for property, general liability, automotive liability, federal civil rights, court-awarded attorney’s fees in certain other proceedings against the state, and workers compensation, as established by Chapter 284, Florida Statutes; and (2) from commercial insurance purchased by the Division of State Purchasing pursuant to sections

287.022 and 287.042, Florida Statutes, as further specified in Rule 60A-1.015, Florida Administrative Code, for risks not eligible for coverage through the SRMTF.

Section 287.022 (1), Florida Statutes, provides:

Insurance, while not a commodity, nevertheless shall be purchased for all agencies by the department, except that agencies may purchase title insurance for land acquisition and may make emergency purchases of insurance pursuant to s. 287.057(3)(a), Florida Statutes. The procedures for purchasing insurance, whether the purchase is made by the department or by the agencies, shall be the same as those set forth herein for the purchase of commodities.

State Purchasing operates the Department’s Insurance Program, which is responsible for the purchase and management of insurance for state agencies and Eligible Users, at their own choosing and based upon funding allocations.

The purpose and goal of the Department’s Insurance Program is to provide coverage at the best premium rates possible for Florida’s executive branch State Agencies.

2. PURPOSE

The Bidder shall market and secure an Insurance Policy on behalf of the State of Florida and the current Named Insureds that shall, at a minimum, include coverage that is the same or better coverage set forth in ITB Attachments L and M, Expiring Policies, as endorsed, incorporated herein by reference, and the coverage set forth in section 4 of this Scope of Work (SOW).

The Insurance Policy secured on behalf of the State of Florida and the Named Insureds shall be provided at the pricing specified in the Bid, provided in accordance with Florida Statutes, and conform with the terms and conditions specified in the Contract. The insurance policy shall have an effective date July 2, 2025, or such other date as shall prevent a lapse in the insurance coverage.

3. DEFINITIONS

Definitions contained in section 287.012, Florida Statutes (F.S.); Rule 60A-1.001, Florida Administrative Code (F.A.C.); and Attachment E, Enterprise Standard Terms and Conditions; are incorporated by reference. In the event of a conflict, the definitions listed in this section supersede

Ocean Marine Hull and Open Cargo Insurance Page 2 of 10 the incorporated definitions for the purposes of this Scope of Work. All definitions apply in both their singular and plural sense.

Bid – The document(s) submitted by a Bidder in response to this ITB.

Bidder – A vendor who submits a bid to this ITB.

Broker or Vendor - An insurance intermediary that holds current and valid Florida resident or nonresident insurance license(s) in the appropriate line of business described in this ITB.

Business Day – Monday through Friday, inclusive, from 8:00 a.m. to 5:00 p.m. Eastern Time, except for those holidays specified in section 110.117, F.S..

Business Network – The Business Network (formerly known as Ariba Network) is an online marketplace that connects vendors and buyers for solicitations collaboration and purchasing transactions. A Business Network account is required to submit responses to electronic solicitations.

Claim – A demand for recovery for loss or damages.

Commodity Code – The State’s numeric code for classifying commodities and contractual

Contract – The legally enforceable State Term Contract, as defined in section 287.012, F.S., between the Department and the awarded Bidder resulting from this solicitation.

Customer – A State Agency or Eligible User included on the insurance policy

Department – The Department of Management Services, a State Agency.

Eligible User – As defined in Rule 60A-1.001(4)(h), F.A.C., for purposes of insurance contracts procured pursuant to Section 287.022, F.S., only non-Agency state entities with a Department of Financial Services State Risk Management Trust Fund Certificate are eligible users.

Hull Insurance – Provides coverage for physical damage to the vessel and its operating machinery and equipment that is part of the vessel.

Insurance Policy or Policy – As defined in section 627.402(3), F.S. The parties to the Insurance Policy will be the Department, the Named Insured, the Broker, and the Insurer.

Insurer – As defined in section 624.80(1), F.S. The insurance company selected by the Broker to provide insurance coverage as described in this ITB. The term ‘Underwriter’ is synonymous with ‘Insurer’ in this procurement.

Named Insured – Entities listed in the Scope of Work and those added during the Policy Period.

Open Cargo – Transit coverage for insured goods and items of all kinds (subject to excluded cargoes under the Policy) that are owned by or are to be insured by State, Eligible Users, or State Agencies.

Policy Inception - The effective date of the Insurance Policy.

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Policy Period – The time between the exact hour and date of Policy Inception and the hour and date of Policy expiration.

Premium – As defined in section 627.403, F.S.

Protection and Indemnity (P&I) Insurance – As defined in section 624.607(1)(b), F.S. Liability insurance for all maritime liability risks associated with the operation of a vessel, except for those maritime liability risks that are covered under a worker’s compensation policy and/or under the collision clause in a hull policy.

Ship Repairers’ Legal Liability (SRLL) – Coverage designed to protect the Insured if the Insured is found to be legally liable for vessel damage while a vessel is under the care, custody and control of the Insured.

State – The State of Florida.

Strikes, Riots, and Civil Commotions (SR&CC) – Coverage that protects the policyholder from damage to or destruction of Named Insured’s property caused by strikers, locked out workmen, persons taking part in labor disturbances, riots, civil commotion, vandalism, sabotage, or malicious mischief.

Vendor Information Portal (VIP) – The State of Florida’s vendor registration, supplier development, and bidding system developed in accordance with section 287.042(3), F.S. The Vendor Information Portal is accessible at https://vendor.myfloridamarketplace.com.

4. SCOPE OF WORK

4.1 Coverage Requirements

The State’s current program contemplates an Ocean Marine Policy for Hull and Protection and Indemnity risks. Where this program is unique is the allowance for overboard activities, and the addition of an Open Cargo Policy. The Open Cargo Policy provides coverage for specialty equipment and is the go-to Policy for unique projects involving the transit of items not covered by the Ocean Marine Policy, or other policies with insufficient transit limits.

Insurance Policy coverages procured through this solicitation shall, whenever the market allows, be the same or better in policy form(s), deductibles and pricing as set forth herein and as provided in Attachment L and Attachment M, Ocean Marine Hull and the Open Cargo policy, respectively, as endorsed. Key coverage requirements are provided in the sections below;

however, the full Policy requirements are located in the expiring Policy. Should the markets approached by the Broker not be able to offer the same or better coverage as described above, the Broker shall seek, secure and offer the best coverage available in the current market.

The Department reserves the right to request additions to or deletions from existing coverages or exposures stated in the Insurance Policy on behalf of the Named Insureds when deemed to be in the State's best interest in accordance with subsection 6.8, Additions/Deletions.

4.2 Named Insured

The master policyholder is the State of Florida, c/o the Department of Management Services, Division of State Purchasing, 4050 Esplanade Way, Suite 360, Tallahassee, FL 32399-0950.

The following entities are the current Named Insureds for whom coverage is being https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fvendor.myfloridamarketplace.com%2F&data=05%7C01%7CNicole.Walker%40dms.fl.gov%7Cd38a3a6eff994d8181eb08db23fcb675%7Ced173fed38394a3ca952140e906fed8d%7C0%7C0%7C638143340533516786%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=bawWG1kiSF9B%2FuvjOVIaeISbWDXkUETlOGDnzvbL0RI%3D&reserved=0

Ocean Marine Hull and Open Cargo Insurance Page 4 of 10 sought:

FDOT Florida Department of Transportation FAMU Florida Agricultural and Mechanical University FAU Florida Atlantic University FAU/HBOI Florida Atlantic University / Harbor Branch Oceanographic Institute FIU Florida International University FSU Florida State University FWC Florida Fish and Wildlife Commission UCF University of Central Florida UF University of Florida USF/FIO University of South Florida / Florida Institute of Oceanography

NOTE: The Named Insureds may be amended during the Policy Period as outlined in this SOW.

4.3 Locations of Covered Property

Locations of covered equipment by Named Insured vary throughout the State of Florida.

Coverage may be modified by the State throughout the Policy Period as required by each Named Insured throughout the Policy term, but the Named Insured remains responsible for any Premium payment assessed while participating in the Policy coverage.

4.4 Ocean Marine Coverage

Coverage will include all watercraft owned, leased, or loaned by any Named Insured. Coverage must include hull, including land transit, and Protection and Indemnity coverage, as selected by each Named Insured.

The Ocean Marine Policy must include coverage for Hull and Protection and Indemnity.Hull Coverage will include deliberate damage clause, named perils of the sea, and extended adventures and perils including, but not limited to, loss or damage howsoever caused by theft, flood, cloudburst, tidal action, water current, rising water, ice, rain or other storm tempest, tornado, windstorm, landslide, falling objects, listing, upset, miring down, capsizing, overturn, pillage and looting, strikes, riots and civil commotion, blowout or catering (as the terms are known in the oil industry). The Ocean Marine Policy must also include SR&CC.

The Ocean Marine Policy will include coverage for Ship Repairers’ Legal Liability (SRLL), and Wharfingers for the Named Insured identified in Attachment C, Price Sheet. SRLL protects the Named Insured when found legally liable for vessel damage. Coverage for Wharfingers includes coverage for the liability exposures encountered in the course of a Wharfinger’s business. The Policy must provide care, custody, and control coverage to the Wharfinger for the damage to vessels and the vessels' cargo while moored at the Wharfinger’s facility for which the Wharfinger is legally liable.

Protection and Indemnity coverage will include all sums which the Named Insured will become legally obligated to pay as a result of any casualty or occurrence including, but not limited to, collision liability, loss or damage to cargo, and indemnity for liability to masters, crews, and all other persons including, but not limited to, State employees and State university personnel.

4.4.1 Hull and Protection and Indemnity (P&I) Limits and Deductibles The Hull and P&I deductibles shall vary for each Named Insured’s vessel. See Attachment C, Price Sheet, for the required Hull deductibles and P&I deductibles. For any additions, a Named Insured chooses its Hull and P&I deductibles for each vessel in its fleet, as required.

4.4.1.1 Hull Limits and Deductibles

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The selected Insurer must be able to provide Hull coverage at the limit and deductible amount for each vessel as declared by each Named Insured listed in Attachment C, Price Sheet.

4.4.1.2 Protection and Indemnity Limits and Deductibles

The selected Insurer must be able to provide P&I coverage at the limit and deductible amount for each vessel as declared by each Named Insured listed in Attachment C, Price Sheet.

4.4.2 Valuation

For additions to a Policy, insured values are as declared by each Named Insured and agreed upon by Insurer; refer to ITB Attachment C, Price Sheet, for current insured values.

4.4.3 Navigation Limits

All vessels with coverage under the Ocean Marine Policy will be confined to the navigational codes provided in Attachment L, Ocean Marine Policy OMH 583- 30-46, Endorsement 122. This same information can also be found on the third tab of the Attachment C, Price Sheet, named Navigational Codes.

4.4.4 Florida Department of Transportation Bucket Boat Rental Coverage

A bucket boat of like value, kind and quality as described in Attachment L, Ocean Marine Policy OMH 583-30-46, Endorsement 180, as rented by the FDOT, is to be covered for liability while the bucket boat is in the care, custody and control of FDOT. FDOT may use a bucket boat throughout the year as purposes require.

4.5 Open Cargo Coverage

The Open Cargo Policy shall provide annual open cargo coverage for items 90 – 94 in Attachment C, Price Sheet, as well as short term open cargo insurance coverage for Named Insureds on an as needed basis. Short term open cargo insurance coverage will be rated in accordance with Insurer’s rating guidelines and shall be based upon specific exposure risks and individual loss experience to the extent market conditions allow. Rating and coverage terms for short term open cargo must be included in the quoted Policy and must include rating and coverage terms as set forth in subsections below:

4.5.1 Navigation Limits Worldwide

4.5.2 Valuation Cargo declared value

4.5.3 Limit of Liability $ as rated per transit (ocean)

$ as rated per transit (air) $ as rated per transit (courier)

4.5.4 Deductible As rated per shipment

4.5.5 Deposit Premium $ 0

4.6 Premium Pricing

The Contractor shall adhere to the premiums listed in the Price Sheet as submitted which are incorporated by reference into the Contract. All coverage premiums assessed at Policy inception are fixed for the full Policy Period and shall not change.

4.7 Premium and Deductible Adjustments

Notwithstanding anything to the contrary herein, Premium and deductible decreases issued by the Contractor are permissible at any time during the Policy Period.

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For additional Policy Periods, the Broker should have identified in its Insurer quotation the % loss ratio threshold which, if met or exceeded by the Named Insured during any Policy Period, will prompt the Insurer to re-evaluate premium and/or deductible pricing for the next Policy Period.

Any reevaluation of premiums and/or deductibles are subject to DMS written approval, must be adjusted equitably, and shall be based upon specific exposure risks and individual loss experience, to the extent market conditions allow. If Contractor anticipates adjustments to premium pricing, deductibles, or policy terms and conditions, Contractor shall provide the Department with written notice four (4) months prior to the Policy Period expiration to the Department’s Contract Manager

Notwithstanding Section 2.1 of the Enterprise Standard Terms and Conditions, adjustments in premiums and/or deductibles do not constitute a change to the Contract requiring an amendment executed by both Parties. After the Department provides written approval of any premium and/or deductible adjustments, the Department will incorporate such changes directly into the Contract documents.

5. Historical Loss Information The loss experience information over the previous five years through May 9, 2025, is provided as Attachment N, Historical Loss Experience Report.

6. Broker/Underwriter Responsibilities The Broker will market and secure two insurance Policies: one for Ocean Marine Insurance and a second for Open Cargo Insurance on behalf of the State of Florida and the Named Insureds, c/o the Department of Management Services, Division of State Purchasing, 4050 Esplanade Way, Suite 360, Tallahassee, FL 32399- 0950.

6.1 Broker License

The Broker, for the duration of the Contract term, must hold a current and valid Florida resident or non-resident insurance license in the appropriate line of business for the insurance coverage provided under the Contract.

6.2 Customer Service

The Contractor shall provide Customers all services during Business Days. State agencies observe holidays in accordance with section 110.117, Florida Statutes.

The Contractor shall have a single point of contact to serve as Contract Manager as provided on Attachment K, Broker Information. The Contract Manager may support multiple Customers and must respond to Customer calls and/or emails within one (1) Business Day. The Contract Manager must be able to provide or arrange for all aspects of Customer support and problem resolutions. Back-up coverage must be provided by an equally knowledgeable person.

In addition to a dedicated Contract Manager, the Contractor shall provide toll-free Customer service phone support from 8:00 a.m. Eastern Time to 5:00 p.m. Eastern Time, Monday through Friday, except for National and State-recognized holidays. TDD (Telecommunication Device for the Deaf) access must be made available during the above-named Customer service operating hours.

6.3 Insurance Policy Conditions

The resulting insurance policy must conform to the following coverage conditions:

6.3.1 The entire coverage is to be written under one insurance policy and represented by one insurer.

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6.3.2 Coverage will be provided for the listed locations of the Named Insured.

6.3.3 The Broker and Insurer shall provide an Insurance Policy that conforms to Florida Statutes 627.401 through to 627.443 as applicable, and with all other relevant and applicable statutes and regulations governing property and liability insurance.

6.3.4 Policy endorsements and invoices will be provided to the Named Insured and the Department as soon as coverage is bound.

6.3.5 Unless prohibited by underwriting guidelines, whenever possible, all claims originated in foreign countries are to be filed and settled in the United States.

After Contract award, the Contractor must provide the Department an original and complete copy of the Insurance Policy, including declarations, insuring agreements, conditions, exclusions, schedule of coverage, and all necessary endorsements at Policy inception, or an insurance binder until such Insurance Policy is received. The Insurance Policy must include a manuscript endorsement, must conform to the requirements stated in the Scope of Work and may not take exception to terms in the Scope of Work. Failure to submit a complete Insurance Policy will constitute sufficient grounds for termination.

6.4 Underwriting Information

6.4.1 The Department will coordinate all coverage requests on behalf of the Named Insureds.

6.4.2 Each Named Insured operates under its internal policies and procedures and must abide by and enforce all policies, State of Florida rules and statutes, and federal guidelines, as applicable. Crew and support staff employed by most Named Insured are required to have a physical examination, including drug screening, by medical facilities of the Named Insured’s choice prior to formal employment. Crew and staff employed by most Named Insured are also required to register with the American Professional Captains Association Drug Screen Consortium, which conducts random drug tests. Additionally, some Named Insured establish a requirement for background checks by law enforcement authorities prior to actual employment in permanent positions.

6.4.3 Crew Information is provided on Attachment O, Vessel Crew Information and Credentials.

6.5 Policy Administration

The Broker must aid in the fulfillment of all obligations to the Department and its Named Insureds as provided for under the Insurance Policy. Any failure by the Broker to provide Policy administration to the Department will constitute a breach of Contract. The Broker will, at a minimum:

6.5.1 Communicate with the Insurer on all changes to the Policy requested by the Department.

6.5.2 Provide endorsements for changes to the Policy schedule.

6.5.3 Forward premium payments to the Insurer, as appropriate.

6.5.4 Assist in the filing of claims and claim settlement payments.

6.6 Routine Communications

All routine communications and reports related to the Contract shall be sent to the Department’s Contract Manager. If any information listed on the ITB Attachment K, Broker Information, changes during the life of the Contract, then the Contractor shall update the attachments and submit to the Department’s Contract Manager. Routine communications may be made by e-mail, regular mail, or telephone.

6.7 Invoices for Insurance Premiums

The following applies to Contractor invoicing:

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6.7.1 Premiums will be invoiced annually at Policy Inception for the Named Insured.

6.7.2 Invoices are to contain enough detail for pre-and post-audit. Invoices must include an invoice number, the insurance company name, Federal Employer Identification Number, the Policy number, effective dates of coverage, a description of the coverage, payment due date, and a remittance address.

6.7.3 Invoices are to be issued in the name of the respective Named Insured and must be provided in writing to the respective Named Insured and to the Department's Contract Manager.

6.7.4 The Department’s Contract Manager may, but is not obligated to, assist the Broker in securing these payments to the best of its ability.

6.8 Additions/Deletions

The Department reserves the right to request additions to or deletions from existing coverages or exposures stated in the Insurance Policy on behalf of the Named Insured when deemed to be in the State's best interest. All requests for additions to or deletions from coverage will be made by the Department.

Additions in coverage or exposure must be consistent with current Contract Insurance Policy terms and conditions. However, the Insurer is not required to accept the State’s addition if it can document that such addition results in an exposure change warranting a change in the Insurance Policy conditions or terms.

The Broker and Underwriter have 30 days from receipt of the Department’s request to add coverage to the State Policy and receipt of all applicable previous and current coverage information to accept or reject the addition of coverage under the Policy.

Coverage Limits may require to be increased throughout the Policy Period as Named Insureds add Contractor’s Equipment upon acceptance by the Contactor and Underwriter.

6.9 Claims Settlement

The Contractor shall coordinate with the Named Insured and work with the appropriate Insurer to ensure proper settlement on any claims filed by the Named Insured.

6.9.1 Unless prohibited by underwriting guidelines, whenever possible, all claims originated in foreign countries are to be filed and settled in the United States;

6.9.2 Contractor shall act as the Division of State Purchasing’s advocate and intermediary amongst the Named Insured and Insurer(s) to facilitate communications and the full handling and settlement of claims.

6.10 Broker Commission

The Broker will comply with section 287.022, Florida Statutes, which requires an insurer or agent that pays a commission or any portion thereof to any person, on insurance purchased by the Department, to report such payment to the Department in writing and under oath within 30 days thereafter.

6.11 Independent Broker

The Broker and its employees, agents, representatives, and subcontractors are not employees or agents of the Department and are not entitled to the benefits of State employees. The Department will not be bound by any acts or conduct of the Broker or its employees, agents, representatives, or subcontractors. The Broker agrees to include this provision in all of its subcontracts under the Contract.

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6.12 Insurer Serviceability

The Broker will notify the Department's Contract Manager of any concerns regarding the ability to provide ongoing services, claims settlement, or any diminished actions including, but not limited to, the reduction in the financial rating of the Insurer providing coverage subsequent to Contract award. Failure to notify the Department of concerns may, at the Department's option result in termination of the Insurance Policy.

6.13 Insurance Policy Cancellation

All cancellations must be calculated on a pro-rata basis and must adhere to the requirements of Florida law. For the purpose of this clause, pro-rata means, in the case of cancellation of an Insurance Policy, the return of the Premium for the unexpired term of the Policy, without penalty for interim cancellation. The Department reserves the right to cancel the Insurance Policy at any time by providing written notice to the Broker. Such cancellation request will be mailed to the Broker's Contract Manager. Cancellation notices from the Insurer will be as provided for in the Insurance Policy and must be mailed to the Department's Contract Manager.

6.14 Ad-Hoc Reports

The Department reserves the right to require additional information pertaining to the Contract.

6.15 Other Fee and Charges

The State may require additional assessments to be levied for specific insurance coverage types including, but not limited to, property and casualty insurance premiums except for those exempted by statute (workers’ compensation, medical malpractice, and national flood insurance).

Brokers and/or Insurers shall not include surplus line tax fees in the cost of this coverage, in accordance with section 626.932(4), Florida Statutes.

Fees or charges not indicated on Attachment C, Price Sheet, unless expressly required by law, are prohibited.

6.16 Contract Transition

Upon Contract expiration or termination, the Contractor shall ensure a seamless transfer of Contract responsibilities with any subsequent broker/insurer necessary to transition the products and services of the Contract. The Contractor and subsequent broker/insurer assume all expenses related to the Contract transition.

7. Payments Payments by Named Insured shall be made in accordance with sections 215.422 and 287.0585, F.S.

8. Financial Consequences

Failure to comply with the requirements of the Term Contract will result in the imposition of financial consequences. The following financial consequences will apply for the Contractor’s failure to meet the performance metric standard and due date corresponding with the deliverables under the Term Contract. The Customer may impose additional Financial Consequences beyond those stated herein to apply to that Customer’s purchase. The State of Florida reserves the right to withhold payment or implement other appropriate remedies, such as Term Contract termination, or nonrenewal, when the Contractor has failed to comply with the provisions of the Term Contract.

The financial consequences below will be paid and received by the Department of Management Services within 30 calendar days from the due date specified by the Department. These financial consequences below are individually assessed for failures over each target period beginning with

Ocean Marine Hull and Open Cargo Insurance Page 10 of 10 the first full month or quarter of the Term Contract performance and every month or quarter, respectively, thereafter.

Financial Consequences Chart

Deliverable

Performance Metric

Performance Due Date

Financial Consequence for Non-Performance

Contractor will provide binding documents timely to avoid policy lapse if multiple policy periods are contracted for.

All binding documents will be submitted timely with the required information.

Binding documents are due at least 5 calendar days prior to expiry unless otherwise agreed.

$250 per day late

Contractor will timely provide policy endorsements and invoices for added , modified or deleted coverage.

All endorsements and invoices will be submitted timely with the required information.

Certificates are due within 90 calendar day after receipt of request.

$100 per day late

Contractor will timely provide requested Certificates of Coverage for Named Insured.

All Certificates of Coverage will be submitted timely with the required information.

Certificates are due within 10 calendar day after receipt of request.

$100 per day late

No favorable action will be considered when Contractor has outstanding expenses, reports, or any other documentation owed to the Department or Customer, to include fees / monies, that are required under this Term Contract.