5400026305 Amend #1 Q & A.pdf

SAP

State of South Carolina

Request for Proposal

AMENDMENT #1

Questions & Answers

Solicitation:

Date Issued:

Procurement Officer:

Phone:

E-Mail Address:

Mailing Address:

5400026305 02/23/2024 SchwalkJC@scdot.org

(803) 737-1018 SchwalkJC@scdot.org SCDOT Procurement Office PO Box 191 Columbia SC 29202-0191

DESCRIPTION: Damage Claims Recovery

USING GOVERNMENTAL UNIT: SC Department of Transportation

SUBMIT YOUR OFFER ON-LINE AT THE FOLLOWING URL: http://www.procurement.sc.gov

SUBMIT OFFER BY (Opening Date/Time): 03/05/2024 03/14/2024 14:30:00 (See "Deadline For Submission Of Offer" provision)

QUESTIONS MUST BE RECEIVED BY: 02/14/2024 12:00:00 COMPLETED (See "Questions From Offerors" provision)

NUMBER OF COPIES TO BE SUBMITTED: ONE ONLINE

CONFERENCE TYPE: Not Applicable

DATE & TIME:

(As appropriate, see "Conferences - Pre-Bid/Proposal" & "Site Visit" provisions)

LOCATION: Not Applicable

AWARD &

AMENDMENTS

Award will be posted on 04/08/2024 04/30/2024. The award, this solicitation, any amendments, and any related notices will be posted at the following web address: http://www.procurement.sc.gov

You must submit a signed copy of this form with Your Offer. By signing, You agree to be bound by the terms of the

Solicitation. You agree to hold Your Offer open for a minimum of sixty (60) calendar days after the Opening Date. (See

"Signing Your Offer" provision.)

NAME OF OFFEROR

(full legal name of business submitting the offer)

Any award issued will be issued to, and the contract will be formed with, the entity identified as the Offeror. The entity named as the offeror must be a single and distinct legal entity. Do not use the name of a branch office or a division of a larger entity if the branch or division is not a separate legal entity, i.e., a separate corporation, partnership, sole proprietorship, etc.

AUTHORIZED SIGNATURE

(Person must be authorized to submit binding offer to contract on behalf of Offeror.)

DATE SIGNED

TITLE

(business title of person signing above)

STATE VENDOR NO.

(Register to Obtain S.C. Vendor No. at www.procurement.sc.gov)

PRINTED NAME

(printed name of person signing above)

STATE OF INCORPORATION

(If you are a corporation, identify the state of incorporation.)

OFFEROR'S TYPE OF ENTITY: (Check one) (See "Signing Your Offer" provision.)

___ Sole Proprietorship ___ Partnership ___ Other_____________________________

___ Corporate entity (not tax-exempt) ___ Corporation (tax-exempt) ___ Government entity (federal, state, or local)

COVER PAGE - ON-LINE ONLY (MAR. 2015)

mailto:SchwalkJC@scdot.org http://www.procurement.sc.gov/ http://www.procurement.sc.gov/ http://www.procurement.sc.gov/

SAP

SAP

AMENDMENTS TO SOLICITATION (JAN 2004)

(a) The Solicitation may be amended at any time prior to opening. All actual and prospective Offerors should monitor the following web site for the issuance of Amendments: www.procurement.sc.gov (b) Offerors shall acknowledge receipt of any amendment to this solicitation (1) by signing and returning the amendment, (2) by identifying the amendment number and date in the space provided for this purpose on Page Two, (3) by letter, or

(4) by submitting a bid that indicates in some way that the bidder received the amendment. (c) If this solicitation is amended, then all terms and conditions which are not modified remain unchanged. [02-2A005-1]

QUESTIONS FROM OFFERORS - AMENDMENT (JUN 2017)

THE SOLICITATION IS AMENDED AS PROVIDED HEREIN. INFORMATION OR CHANGES

RESULTING FROM QUESTIONS WILL BE SHOWN IN A QUESTION-AND-ANSWER FORMAT. ALL

QUESTIONS RECEIVED HAVE BEEN REPRINTED BELOW. THE “STATE’S RESPONSE” SHOULD BE

READ WITHOUT REFERENCE TO THE QUESTIONS. THE QUESTIONS ARE INCLUDED SOLELY TO

PROVIDE A CROSS-REFERENCE TO THE POTENTIAL OFFEROR THAT SUBMITTED THE QUESTION.

QUESTIONS DO NOT FORM A PART OF THE CONTRACT; THE “STATE’S RESPONSE” DOES. ANY

RESTATEMENT OF PART OR ALL OF AN EXISTING PROVISION OF THE SOLICITATION IN AN

ANSWER DOES NOT MODIFY THE ORIGINAL PROVISION EXCEPT AS FOLLOWS: UNDERLINED

TEXT IS ADDED TO THE ORIGINAL PROVISON. STRICKEN TEXT IS DELETED.

The SUBMIT OFFER BY date has been amended as per page 1 of this document.

The Award Posting Date has been amended as per page 1 of this document.

QUESTIONS and ANSWERS

QUESTION #1:

How are claims reported?

SCDOT Response to Question #1:

Claims are reported from various channels, but are in most cases reported from the SCDOT County Maintenance office, or the SCDOT District Maintenance office. There are also claims which are reported directly by the insurer, for an at-fault driver.

QUESTION #2:

Are you confident all claims are being reported? If not, what percentage do you believe may be missing?

SCDOT Response to Question #2:

SCDOT believes the vast majority of claims are reported, and estimates less than 5% of the total being missed.

QUESTION #3:

How many claims occur per year?

Can you provide the total number and dollar amount of claims invoiced for 2021, 2022, and 2023 (individually)?

Can you provide the total number and dollar amount of claims recovered for 2021, 2022, and 2023 (individually)?

SCDOT Response to Question #3:

Claims Invoiced:

Claims Recovered:

QUESTION #4:

What is the average dollar amount per claim?

SCDOT Response to Question #4:

The average dollar amount per claim is as follows:

QUESTION #5:

How many staff work/negotiate your claims? Of the staff handling claims, is this function their full-time responsibility?

SCDOT Response to Question #5:

SCDOT estimates that the equivalent of two (2) FTEs work on the claims. The function is not a full-time responsibility for a single resource; multiple resources from various functional areas are involved in different steps of the process. Resources may come from our county or district offices, from accounting, from legal, and from our risk management team.

QUESTION #6:

Is the claims process centralized or decentralized? If decentralized, how many divisions/groups/teams handle claims?

SCDOT Response to Question #6:

The claims process is decentralized, with 3-5 separate departments potentially involved in the process.

QUESTION #7:

What department will oversee the claims process?

SCDOT Response to Question #7:

The claims process will be overseen by SCDOT’s Statewide Risk Manager, residing within the SCDOT Legal

Department.

QUESTION #8:

How do you measure program results?

FY 2021 FY 2022 FY 2023

Claims invoiced

Quantity 896 956 592

Amount 2,169,079.72$ 1,979,802.98$ 1,507,981.57$

FY 2021 FY 2022 FY 2023

Claims recovered

Quantity 572 594 442

Amount (1,064,825.71)$ (1,582,814.97)$ (1,079,416.65)$

FY 2021 FY 2022 FY 2023

Average dollar amount per claim invoiced 2,420.85$ 2,070.92$ 2,547.27$

SCDOT Response to Question #8:

Although the exact approach has not been finalized, program results will be measured by total dollars recovered in an efficient and timely manner. Please also see the Answer to Question #11, below.

QUESTION #9:

What is the recovery rate for each of the past three years (21,22, 23)?

SCDOT Response to Question #9:

Please see the Answer to Question #3, above.

QUESTION #10:

Do you have a desired recovery rate for a potential vendor?

SCDOT Response to Question #10:

SCDOT desires to maximize recovery rates for reported claims. One possible calculation for the recovery rate is the actual amount recovered minus the contractor fees and minus any amount for which there is justifiable (or substantiated) reason certain claims can’t be collected (i.e. out-of-state). We expect that a formula and approach shall be finalized with the selected Contractor within the first thirty days of program start. Additionally, SCDOT would expect ongoing improvement in these recovery rates as the program gains traction and leverages efficiencies.

QUESTION #11:

How will SCDOT measure/determine success in terms of this recovery project?

SCDOT Response to Question #11:

Success of the recovery program will be determined by measuring ongoing achievement against the potential actual recovery rate (based on the resulting formula as described in the Answer to Question #10, above). After the establishment of the programmatic formula(s) and approach, monthly reports shall be supported with relevant documentation (i.e., documents demonstrating the conclusion that some claims are not recoverable, etc.). Ongoing improvement shall also be measured.

QUESTION #12:

Do you have a routine claim metrics report package? If yes, what is included in the report package?

SCDOT Response to Question #12:

SCDOT does not have a routine claims metrics reporting package. We are able to do basic levels of reporting, some of which are supported through manual processes.

QUESTION #13:

Do you look at cycle time? If so, what is the average Date of Damage to Invoice? Date of Invoice to Recovery?

SCDOT Response to Question #13:

SCDOT is currently not measuring this. Our Accounts Receivable team can pull a special sample group if and when needed. It is felt that calculating the average may not provide a true indication of cycle time because we have some payment plans in place where the monthly payments are quite small, and we also have situations where no payments are made.

QUESTION #14:

Please describe the current process for calculating and determine claim invoices.

SCDOT Response to Question #14:

The current process for calculation and determining damage claim invoices is as follows:

Accounts receivable receives the damage claims information from the SCDOT District offices.

Accounts receivable enters the claim into the Risk Management Information System (RMIS), and then bills the responsible party.

Payments are received and applied to outstanding claims.

RMIS is updated with the payment information.

If claim damages are not paid, dunning letters are sent at 30, 60, 90, and 120 day intervals.

Unpaid claims are either sent to for Debt collection, reporting to the SC Department of Revenue, or written off with approval from the SCDOT Deputy Secretary of Finance and Administration.

It is anticipated that the selected Contractor will notify SCDOT of unpaid claims after dunning period, but will not be involved in reporting to the Department of Revenue or handling any portion of the write-off process.

QUESTION #15:

Please describe the current process for obtaining damage reports/police reports when claims occur.

SCDOT Response to Question #15:

Police reports (TR-310) are often included with the information sent by the districts to AR. If no TR-310 is included, legal can pull them. Claims that come from insurance companies typically include the TR-310, but again, legal can get them when needed.

QUESTION #16:

Please describe the invoicing and recovery process when the claim is caused by an unknown damager.

SCDOT Response to Question #16:

When the claim is caused by an unknown damager, the claim is typically subject to write-off.

QUESTION #17:

Please describe the process for invoicing and pursuing repeat offenders.

SCDOT Response to Question #17:

SCDOT does not currently have a process of invoicing and pursuing repeat offenders, QUESTION #18:

Do you have a legal process for claims escalation?

SCDOT Response to Question #18:

There is not currently a formal legal process in place for claims escalation.

QUESTION #19:

Do you have an arbitration process? If not, would SCDOT consider an arbitration process?

SCDOT Response to Question #19:

SCDOT does not currently have an arbitration process for claims, but would consider one.

QUESTION #20:

Is a SOC 2 Type 2 accreditation sufficient for SCDOT in terms of demonstrating that “programs, policies, and procedures are in place to adequately provide for the confidentiality, integrity, and availability of the information system used by contractors”?

SCDOT Response to Question #20:

Security and safeguarding requirements are specified in Section III – Scope of Work/Specifications, B. Specific

Services, Items 19, 20, 21, and 22. Please also review the following clauses in Section VII B: Terms and

Conditions – B. Special:

INFORMATION SECURITY – DEFINITIONS (FEB 2015)

INFORMATION SECURITY – SAFEGUARDING REQUIREMENTS (FEB 2015)

INFORMATION SEURITY – LOCATION OF DATA (FEB 2015)

INFORMATION USE AND DISCLOSURE (FEB 2015)

INFORMATION USE AND DISCLOSURE – STANDARDS (FEB 2015)

Generally, a SOC Type 2 accreditation may be deemed acceptable. However, the completion and submission of the Service Provider Security Assessment Questionnaire is required to complete the evaluation and determine final acceptability.

QUESTION #21:

What is the estimated number of claims in all categories including

Total claims sent to contractor

Total claims where recovery was successful

Total claims where recovery was not successful

Estimated total claims at the time of new contractor (for transfer)

SCDOT Response to Question #15:

There is currently not a Contractor providing this service, so SCDOT is not able to answer exactly as asked. Please refer to the answers to Questions #3 and #4 above.

SCDOT estimates that about 500 accounts may be transferred to the new contractor.

QUESTION #22:

what is the current fee and who is the current vendor?

SCDOT Response to Question #22:

SCDOT does not have a contractor in place for damage claims recovery.

QUESTION #23:

pg 14, B2- you mention contractor must have SCDOT account- this is provided at the time of award? or expected to have this prior to award through independent means?

SCDOT Response to Question #23:

The selected contractor may complete the process to establish a Safety Management System (SMS) and/or Risk

Management Information System (RMIS) account after award, and with the assistance of SCDOT.

QUESTION #24:

Is SCDOT open to a flat fee for claims where no recovery occurred to capture that labor performed by contractor workforce?

SCDOT Response to Question #24:

The Damage Claims Recovery RFP does not contemplate a flat fee for claims where no recovery occurred. As per

Section III: Scope of Work/Specifications: G, items 1 and 2:

1. The Contractor’s compensation shall be an administrative fee assessed against each recovered claim and shall be compensated based upon a % percentage of recovered payment amount (Per Claim), up to the maximum dollar amount per claim which will constitute the administrative fees aa submitted in the proposal.

2. The Contractor’s deduction of the administrative fee from such funds collected shall constitute full payment of the amount due the Contractor.

Contractors should include any assumptions no recovery into their business and pricing model to develop the percentage of recovered payment amount and maximum compensated dollar amount per claim to be included in the Cost/Price proposal, which is one of the three (3) evaluation criteria.

QUESTION #25:

Is SCDOT open to increasing contractor total recovery admin fee on a credit card recoveries or payment plan recoveries due to credit card processing fees and/or increased amount of contractor workforce labor due to prolonged recovery?

SCDOT Response to Question #25:

SCDOT will allow pass-through of credit card processing fees, subject to audit and verification of such fees at the request of SCDOT. Excepting that, additional fees beyond the percentage of recovered payment amount per claim shall not be allowed or accepted.

Contractors should include any assumptions around prolonged recovery into their business and pricing model to develop the percentage of recovered payment amount and maximum compensated dollar amount per claim to be included in the Cost/Price proposal, which is one of the three (3) evaluation criteria.

QUESTION #26:

pg 16, item 17- contractor will not represent SCDOT- please confirm no small claims court is anticipated with recovery on behalf of SCDOT under this RFP?

SCDOT Response to Question #26:

The Contractor will not represent SCDOT in any court proceedings.

All other terms, conditions, bidding instructions, and specifications remain unchanged. If there are any questions or if any confusion or uncertainty arises as a result of this amendment, it is the sole responsibility of the offeror to contact the procurement officer for clarification. Contact information can be found in the top right-hand corner of the cover page of this amendment. Reference the “duty to inquire” clause in the original invitation for bid.