ATTACHMENT A - RFB 758 2600000247-1 - 12-08-2025.pdf

ELECTRONIC BID SUBMISSION

Bid responses shall be received by electronic submission in the eProcurement system.

An electronic bid shall be authorized by the proper agent of the firm by the act of submitting it electronically through the eProcurement system.

Bid information MUST be completed online. Response must contain all required information for the Solicitation.

All bidders MUST be registered in the Commonwealth eProcurement System via the Vendor Self Service System at https://vss.ky.gov

Allow 24 – 48 hours to complete Vendor Registration. Vendors must be logged in to their Vendor Self Service (VSS) account in order to submit a response. Registrations completed the day of bid closing must be completed by the Vendor in the VSS portal. The Customer Resource Center is not able to complete registrations and activate accounts on the same day. Closing dates will not be extended for Vendors not registered by the date/time of the bid closing. Vendor Self Service Registration Guides are provided at https://vss.ky.gov

All bidders are cautioned to begin their electronic submission in sufficient time to complete before the closing date and time. Delays due to technical difficulties or document upload impediments shall not be justification for acceptance of a late bid or proposal. Vendor attention to this advisory is encouraged. If you need assistance, please contact the Customer Resource Center (CRC) by email at Finance.CRCGroup@ky.gov or phone 502-564-9641 or toll-free 877-973-HELP (4357).

Online bid responses must be in an “Accepted” status and shall be assigned a date and time stamp from the eProcurement system at the time of final acceptance and formal submission by the vendor. The system will not allow submission of an online response after the published date and time for closing.

An offer may be modified or withdrawn by electronic or written notice ONLY if received prior to the bid closing date and time. An electronic offer may be modified by applying the appropriate electronic signature and following the procedure in the state’s eProcurement signature.

https://vss.ky.gov/ https://vss.ky.gov/ mailto:Finance.CRCGroup@ky.gov

The following items MUST be submitted prior to award:

_____REVENUE FORM 10A100 KENTUCKY TAX REGISTRATION APPLICATION IF

APPLICABLE (see Section 36)

_____CERTIFICATE OF AUTHORITY – REGISTRATION WITH SECRETARY OF

STATE BY A FOREIGN ENTITY IF APPLICABLE (see Section 38)

_____REQUIRED AFFIDAVIT(S)

https://finance.ky.gov/office-of-the-secretary/FinanceForms/Annual%20Required%20Affidavit%20for%20Bidders%2 0Offerors%20and%20Contractors.pdf https://finance.ky.gov/office-of-the-secretary/FinanceForms/Annual%20Required%20Affidavit%20for%20Bidders%20Offerors%20and%20Contractors.pdf https://finance.ky.gov/office-of-the-secretary/FinanceForms/Annual%20Required%20Affidavit%20for%20Bidders%20Offerors%20and%20Contractors.pdf https://finance.ky.gov/office-of-the-secretary/FinanceForms/Annual%20Required%20Affidavit%20for%20Bidders%20Offerors%20and%20Contractors.pdf

ATTACHMENT A

Commonwealth of Kentucky Request for Bid (RFB)

For KREC Errors and Omissions Insurance

RFB 758 2600000247

Issued by The Finance and Administration Cabinet

On Behalf Of Kentucky Real Estate Commission

Release Date: December 8, 2025

Vendors’ Written Questions Due: December 19, 2025, 1:30 PM ET CLOSING DATE AND TIME: December 29, 2025, 1:30 PM ET

Commonwealth Buyer:

Angie Johnson, KCPM

COMMONWEALTH OF KENTUCKY

FINANCE AND ADMINISTRATION CABINET

Office of Procurement Services

200 MERO STREET, 5TH FLOOR

FRANKFORT KY 40622

(502) 564-6194 angelaf.johnson@ky.gov mailto:stephanier.williams@mail.state.ky.us

BID READINGS

Any person wishing to hear a bid reading may call the OPS conference line at

844-603-5060, Conference ID number 240522005, and Participant Code 33957, at 3:30pm, ET on the bid closing date.

PLEASE READ THIS SOLICITATION AND ITS INSTRUCTIONS IN ITS ENTIRETY.

This is a Request for Bid (RFB).

Vendors shall comply with the terms and conditions stated in the solicitation.

Any efforts to negotiate these terms and conditions SHALL NOT be accepted and SHALL cause the bid to be deemed non-responsive.

All proposed pricing shall remain valid for a minimum of sixty (60) calendar days after the bid due date.

This Contract shall be awarded as Group All. Vendors shall bid all line items, otherwise bid shall be deemed non-responsive.

Vendors should review and comply with the general bidding requirements listed under “Procurement Laws, Preference, Regulations and Policies” and “Response to Solicitation” located on the eProcurement Web page at https://finance.ky.gov/eProcurement/Pages/procurement-laws-regulations-and-policies.aspx and https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx respectively. The vendor must comply with all applicable statutes, regulations and policies related to this procurement.

https://finance.ky.gov/eProcurement/Pages/procurement-laws-regulations-and-policies.aspx https://finance.ky.gov/eProcurement/Pages/procurement-laws-regulations-and-policies.aspx https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx

Solicitation

Terms and Conditions

Master Agreement

Section 1 Scope of Contract The Office of Procurement Services issues this solicitation to establish a Master Agreement for: KREC Errors and Omissions Insurance.

Section 2 Bid Specifications (Requirements that include the words “Shall”, “Will”, “Must” indicate a mandatory requirement)

NAMED INSURED:

Commonwealth of Kentucky Kentucky Real Estate Commission (KREC) 500 Mero Street, 2NE09 Frankfort, KY 40601

Named Insured is defined as the Kentucky Real Estate Commission (KREC) on behalf of all individuals licensed by the Commonwealth of Kentucky under Kentucky Revised Statutes Chapter 324, except those individuals furnishing the Commission with evidence of acceptable substitute insurance in accordance with KRS 324.395 (4) and

201 KAR 11:220.

Additional Insured shall be the real estate firms for their vicarious liability for the errors and omissions of the licensed individuals and any other employers of the licensed individuals for their vicarious liability for the errors and omissions of the licensed individuals.

Each individual's coverage shall be deemed to cover as additional insureds, within the limit of liability, the "principal broker" and the broker's firm, as well as the "broker" and the "sales associate" as defined in KRS 324.010.

COMMONWEALTH CONTACT INFORMATION:

Commonwealth of Kentucky, Public Protection Cabinet Kentucky Real Estate Authority, Kentucky Real Estate Commission (KREC) 500 Mero Street, Second Floor, Frankfort, KY 40601

RISK PROFILE AND UNDERWRITING INFORMATION:

The Kentucky Real Estate Commission is an agency of the Commonwealth of Kentucky and is empowered under Kentucky Revised Statutes (KRS), Chapter 324 to regulate state licensing and education of real estate brokers as well as sales associates and to safeguard and protect the public interest. To that end, all active Kentucky real estate licensees are required to carry errors and omissions insurance as a condition of licensure pursuant to KRS 324.395 and 201 KAR 11:220. KRS 324.395 also requires inactive licensees to carry extended reporting period coverage for a period of one (l) year following the date a license is placed into inactive status. Real estate firms are not required to buy Errors & Omissions (E&O) insurance, only licensees. The required insurance for licensees may be purchased independently or from the group insurance provided by the Kentucky Real Estate Commission.

Complies with the provisions of KRŞ 324.395 and 201 KAR 11:220 in effect at the time the policy is offered. Coverage is made available on claims made basis to all real estate licensees performing a professional service for which a license is required by the Commonwealth of Kentucky under KRS 324.010 for all acts for which a real estate license is required, except as provided in 201 KAR 11:220.

1. POLICY LIMITS-

$100,000 coverage per licensee per claim. $1,000,000 aggregate per licensee. No deductible for damages.

No deductible for claims expenses. $5,000 sub-limit for Lock Box Coverage.

2. MINIMUM COVERAGE REQUIREMENTS-

PRIMARY RESIDENCE COVERAGE -

Provides coverage for sale or listing of Licensee's primary residence through insured's broker.

ENVIRONMENTAL COVERAGE -

Provides minimum coverage of $5,000 per claim, $10,000 aggregate coverage for environmental claims including molds, spores, and fungi.

FAIR HOUSING COVERAGE -

Provides minimum coverage of $10,000 per claim, $10,000 aggregate coverage for fair housing discrimination claims.

ESCROW ACCOUNT/EARNEST MONEY COVERAGE -

Provides minimum coverage of $2,500 per claim, $5,000 aggregate coverage for claims concerning escrow/earnest money accounts.

FRANCHISE GRANTOR COVERAGE -

Provides for coverage for Real Estate Group as Franchise Grantors.

REGULATORY COVERAGE -

Provides minimum coverage of $2,500 per claim, $5,000 aggregate coverage for regulatory complaints.

VENDORS SHALL BID BY SUBMITTING ONE PRICE THAT INCLUDES THE

MANDATORY SIX (6) COVERAGES LISTED ABOVE. DO NOT BREAK OUT A UNIT

COST FOR ANY SPECIFIC COVERAGE.

NOTE: There will not be points awarded for additional coverage, which is in addition to the minimum coverage requirements.

3. EXTENDED REPORTING PERIOD-

Provides an automatic extended reporting period for a period of at least ninety (90) calendar days. The insured shall have the right upon payment of the additional premium within ninety (90) calendar days after such termination of coverage, to have issued a certificate providing a two (2) year optional extended reporting period. The premium for the two-year extended reporting period should not be more than 200% of the current annual price.

4. OFFER FOR EXTENDED REPORTING PERIODS-

Successful Vendor shall e-mail or mail to each licensee/individual who does not renew group insurance coverage or who replaced the insurance furnished by the group insurance policy with other insurance, a notice providing the licensee/individual with full information regarding the nature of the claims made coverage provided by the group policy, the nature of the extended reporting period coverage and the cost thereof. The notices shall include an offer to provide the extended reporting period coverage with instructions for the acceptance of the offer.

5. ADDITIONAL POLICY REQUIREMENTS-

If an insured person’s license is placed into inactive status during a year in which that person has paid their premium, coverage shall continue for the remainder of the policy year for that person as if the license had not been placed into inactive status, regardless of whether the license is reinstated, except that coverage shall not be provided for acts occurring during the period when the license was in inactive status.

SCOPE OF SERVICES -

1. Insurer is licensed and authorized.

Insurer is licensed and authorized by the Kentucky Department of Insurance (DOI) to write policies of Errors and Omissions insurance in this state.

2. A M. BEST RATING.

Vendors shall have a B+ or better A.M. Best Rating. Bidders with an A.M. Best rating lower than B+ shall not be considered. Should the successful Vendor drop below a B+ rating from A.M. Best during the contract term, the Commonwealth of Kentucky may take appropriate action to secure or maintain this coverage.

3. The Vendor is required to comply with all applicable federal, state, and local rules, regulations, and statutes, including but not limited to, the insurance code in Chapter 304 of the Kentucky Revised Statutes (KRS), as interpreted by the Kentucky Department of Insurance (DOI), during the contract term.

4. Any servicing agents shall be licensed and have on file with the Kentucky

Department of Insurance proof of financial responsibility as required under Chapter 304 of the Kentucky Revised Statutes during the contract term.

5. Any claims adjuster(s) shall be licensed as required under Chapter 304 of the

Kentucky Revised Statutes during the contract term.

6. Vendors shall compile a list of approved attorneys from which insureds can choose. Approved attorneys must have at least one year experience in real estate litigation and must maintain a principal business address in Kentucky.

Attorneys that are licensed in Kentucky whose principal address is located within 50 miles of Kentucky will be considered as maintaining a Kentucky principal business address. (A list of approved attorneys and their business addresses should be included as part of the Bid Response packet.)

7. Vendors shall provide an electronic web service system to verify licensee compliance in real time that is compatible with the Commission's professional licensing back office.

TERRITORY OF THE INSUREDS-

If the Insured Licensee is not a resident of the Commonwealth of Kentucky, then this policy applies only to negligent act(s), error(s), or omission(s) arising out of

Professional Services committed in Kentucky or related to real estate located in Kentucky. If the Claim results in or from a suit for damages, it must be brought within the United States of America, its territories, or possessions.

If the Insured Licensee is registered with a firm with an active place of business in Kentucky that is located within a fifty (50) mile radius of the licensee's home, then the Insured Licensee will be considered a resident of Kentucky for purposes of this section.

The territory above applies to all "insured licensees" and all endorsements.

Information to be Provided Insured A specimen policy shall be issued to each insured principal broker, and a final policy will be mailed to each and every licensee who purchases coverage under the group policy.

It is possible the specimen policy could be e-mailed, but that will be at the discretion of the Commission. The successful bidder will send each licensee covered under this program a "mailer." The "mailer" shall have prior approval of the Commission and be prepared for mailing within thirty (30) calendar days of the award of the contract. The "mailer" can be included with the Commission's renewal mailing if mailing costs are equally shared between successful bidder and the Commission.

The "mailer" shall give a general description of the coverage provided, terms and conditions, optional coverages if applicable, and instructions for securing additional information and for reporting claims. Such instructions shall specify a toll-free telephone number(s) other than that of the Commission for the purpose of securing information and reporting claims.

The Kentucky Real Estate Commission shall have final approval on any and all correspondence that is sent from the Vendor to licensees.

Premium The premium to be charged each individual shall be the amount shown on the bid submitted by the successful bidder and shall be the same amount for every licensed person. In accordance with KRS 324.395, this amount for the basic policy may not exceed two hundred dollars ($200) per person for errors and omissions coverage and may not exceed two hundred dollars ($200) per person for basic extended reporting period coverage. Each principal broker shall receive due notice of the insurance provided in response to the invitation for bid, and the vendor shall collect the necessary premiums for each insured individual.

Each licensee's insurance premium shall be calculated quarterly on a pro rata basis throughout the policy term. Any person who is insured during the year, and whose license has been placed in inactive status, shall not be charged an additional premium if that person's license is reinstated during the year.

Fully Earned Premium All premiums that are paid to the insurer are considered fully earned by the Insurer when the policy is issued. However, pursuant to KRS 304.12-190, the Policyholder shall be eligible for a pro rata refund if the request to cancel group insurance policy is requested in writing, by the Policyholder, prior to the expiration of the policy to the successful bidder.

Applicable Taxes Charges for any and all taxes and / or policy fees shall be in addition to the insurance premium charge. Bidder must comply with KRS 136.392 with regards to the 1.8% Kentucky surcharge, disclosure of premium surcharge pursuant to KRS 136.392 and 806 KAR 2: 100. All Vendors shall submit documentation of their ability to comply with and implement the requirements of KRS 136.392 and 806 KAR 2:100.

Mid-term Changes The Commission shall report all additional insured licensees to the successful bidder within thirty (30) calendar days of the end of each month. The pro rata premium shall be computed quarterly based on the month that such addition occurred. The pro-rated premium (plus any applicable taxes and / or fees) for periods other than the full year commencing April l, 2026, shall be reduced to reflect the remaining quarters.

New licensees who are added as insureds after the effective date of the policy shall be insured as of the date of license issuance. Individuals for whom this policy shall replace other insurance after the effective date of this policy shall be insured as of the date when the application for same has been received and the correct premium processed for deposit by the Commission.

Note: Licensee who is released by his or her principal broker in March must be allowed to continue uninterrupted coverage until re-affiliation with another principal broker.

This re-affiliation must be made within 30 calendar days from release. In the month of April, payment of the full premium would be required. The carrier shall make this policy retroactive to April l, 2026. Licensees who renew late and purchase group insurance coverage in the month of April shall have their coverage retroactively effective to April l, 2026.

Premium Payment The successful bidder shall receive payment of all premiums directly from licensees enrolled in the group program. The Commission shall not handle premium funds for the successful bidder or licensees enrolled in the group program.

Claim Reports The successful Vendor will furnish the Kentucky Real Estate Commission with a copy of a loss run containing the following information on a quarterly basis:

1. Name of Licensee

2. Date of Payment

3. Real Estate Firm

4. Narrative Description of Allegation

5. Principal Broker

6. Pre-trial Settlement

7. Post-trial Settlement

8. Claimant Name

9. Date of Notice

10. Date Reported to Insurer

11. Amount of Reserve

12. Date of Loss

13. Amount of Payment

Legal Defense Bidders shall compile a list of approved attorneys and allow the insured to choose legal defense from that list. Acceptable attorneys shall have at least one year experience in real estate litigation and shall maintain a principal business address in Kentucky.

Attorneys licensed in Kentucky whose principal address is located within 50 miles of Kentucky will be considered as maintaining a Kentucky principal business address.

COVERAGE PROVISIONS

Coverage Form: Claims made basis.

Defense Costs: Outside the limits of liability

RETROACTIVE DATE

The retroactive date should be May l, 1987, if uninterrupted coverage has been in effect since that date. The retroactive date is established separately for each licensee. If coverage is interrupted - Coverage under the new policy established from the procurement shall be retroactive to April 1. 2026.

Term of Master Agreement Contract and Renewal Options

The initial term of the Master Agreement Contract shall be for a biennial period of two

(2) years from the effective date of the Award of Master Agreement Contract. The insurance coverage effective dates shall be from April 1st of the first year through April 1st of the second year as well as for any renewal period should it be exercised.

The Office of Procurement Services of the Finance and Administration Cabinet and the Kentucky Real Estate Commission (collectively "the Commonwealth") will coordinate with the Vendor in approximately December of each year to complete the Master Agreement renewal modification / paperwork prior to January 1st of each year. The time from January 1st to March 31st will be utilized by the Kentucky Real Estate Commission for their mailings and other administrative requirements that must be completed prior to April 1st.

This Master Agreement Contract may be renewed at the completion of the initial Master Agreement Contract period for three (3) additional two (2) year periods upon the mutual agreement of the Parties. Such mutual agreement shall take the form of an addendum to the Master Agreement Contract under Section 40.050 - Changes and Modifications to the Contract.

The Commonwealth reserves the right not to exercise any or all renewal period options.

The Commonwealth reserves the right to extend the contract for a period less than the length of the above-referenced renewal period if such an extension is determined by the Commonwealth Buyer to be in the best interest of the Commonwealth.

The Commonwealth reserves the right to renegotiate any terms or conditions as may be necessary to meet requirements for the extended period. The Vendor will be advised of any proposed revisions prior to the renewal periods. In the event proposed revisions cannot be agreed upon, either party shall have the right to withdraw without prejudice from either exercising the option or continuing the contract in an extended period.

PRICE GUARANTEE

All bids shall be guaranteed for 90 calendar days after the Bid opening. Rates must be guaranteed until the expiration of the Master Agreement Contract. Price adjustments may be considered for subsequent policy years, only if the insurer notifies the Office of Procurement Services in writing no less than 90 calendar days prior to the expiration date of its intention to change the existing contract rates for the next policy year.

CANCELLATION AND SPECIAL PROVISIONS

The insurer shall provide a one hundred twenty (120) day notice of cancellation or nonrenewal. Refunds shall be computed on a pro rata basis upon cancellation, whether requested by the insured or the carrier.

METHOD OF PREMIUM PAYMENT

The insured will render payment within 30 business days (45 calendar days) as required in KRS 45.453, upon presentation of two accurate and complete copies of the billing.

Premium will be paid on an annual basis.

LEGAL REQUIREMENTS

The Vendor is required to comply with all applicable federal, state, and local rules, regulations, and statutes, including but not limited to the insurance code in Chapter 304 of the Kentucky Revised Statutes (KRS), as interpreted by the Kentucky Department of Insurance, during the contract term.

Any servicing agents shall be licensed and have on file with the Kentucky Department of Insurance proof of financial responsibility as required under Chapter 304 of the Kentucky Revised Statutes during the contract term.

Any claims adjuster(s) shall be licensed as required under Chapter 304 of the Kentucky Revised Statutes during the contract term.

CONTRACT EXECUTION

The original copy of the binder shall be furnished to the Kentucky Real Estate Commission within ten (10) calendar days of award of contract, but no later than two

(2) calendar days prior to the effective date of coverage. The original policy and its endorsement s shall be furnished within 45 calendar days after the effective date of coverage.

ORIGINAL INSURANCE CARRIER

During the term of this Master Agreement Contract, the successful Vendor will maintain coverage with the original insurance carrier, unless written permission is granted by the Office of Procurement Services and the Kentucky Real Estate Commission to place coverage elsewhere. Any request for changes must be provided to the Office of Procurement Services and the Kentucky Real Estate Commission, in writing at least 90 calendar days prior to the expiration of the current policy.

Consideration will only be given if it is deemed to be in the best interest of the Commonwealth.

LOSS SUMMARIES

The successful Vendor shall provide two (2) copies of annual loss summaries by June 1st of each year to ATTN: Kentucky Real Estate Authority, Public Protection Cabinet at 500 Mero Street, 2NE09, Frankfort, KY 40601. Please include the following information:

1. Policy Number

2. Claimant Name

3. Date of Loss

4. Claim Status

5. Description of Loss

6. Amount Reserved

7. Amount Paid

Section 3 Purpose The purpose of this solicitation is to request vendor responses in order to provide these items under contract to agencies as needed.

Section 4 General This solicitation specifies requested items. It is not the intention of this solicitation to eliminate vendors or manufacturers of similar or equal equipment of the types specified.

It should be noted, however, that these requested items are written around specific needs of State agencies. The Commonwealth reserves the right to consider bids non-responsive if they do not comply with the specifications contained herein.

Section 5 Initial Contract Period The contract established from this solicitation shall be for the initial period of one (1) two (2) year period from the date of award.

Section 6 Renewal Clause – Optional Renewal Period This contract may be extended at the completion of the initial contract period for three

(3) additional two-year periods. This extension must have the written approval by all parties. If the contract resulting from this solicitation provides for an optional renewal period, the Commonwealth of Kentucky reserves the right to renegotiate any terms and/or conditions as may be necessary to meet requirements for the extended period.

The vendor will be advised of any proposed revisions prior to the renewal periods. In the event proposed revisions cannot be agreed upon, either party shall have the right to withdraw without prejudice from either exercising the option or continuing the contract in an extended period.

Section 7 Exceptions to Specifications Vendors are cautioned that changes made to the solicitation other than in the designated fields for response shall render the response invalid and result in a non-responsive bid. Otherwise, it will be considered that items/services offered are in strict compliance with these specifications, and the successful bidder shall be held responsible for delivering materials/services that meet these specifications. Any exceptions shall be marked as such within the body of the bid and explained on a separate page. The Commonwealth is not bound to accept any exceptions.

Section 8 Alternate Brands/Specifications Unless otherwise specified, brands and specifications referenced in this solicitation are meant to establish a minimum standard of quality only. Bidders may bid brands/specifications they consider to be equal by specifying the brand(s)/specifications and inserting the brand name(s), model number(s), etc. on which they are bidding. Bids offering “equal” products/specifications will be considered for award if such products are clearly identified in the bid and are determined by the State to meet or exceed fully the minimum essential specifications and salient characteristics referenced in the Solicitation. Bids that contain products/specifications that fail to meet the minimum essential requirements shall be deemed non-responsive.

Bidders who propose alternate brands/specifications should enclose descriptive literature with their bids so that the equality can be verified. Failure to enclose sufficient literature may result in a non-responsive bid. If the brands are not changed, the contract will be written accordingly and the successful bidder shall be required to deliver the brands/specifications stated in the solicitation.

Section 9 Recycle Requirements Prospective bidders are required to comply with Recycle Requirements for the purchase of goods, supplies, equipment, materials and printing with a minimum recycled content to the extent practicable per 200 KAR 5:330. This regulation can be viewed on the Internet at https://apps.legislature.ky.gov/law/kar/200/005/330.pdf

Section 10 Acknowledgment of Addenda It is the vendor's responsibility to check the web site for any modifications to this solicitation. Electronic Bid submittal is the vendor’s agreement to be bound by the terms of all addenda issued.

Section 11 Agencies to be Served This contract shall be for use by the following agency of the Commonwealth of Kentucky:

Kentucky Real Estate Commission Section 12 Solicitation Submission Requirements Paper Bids are NOT acceptable for this RFB and shall be considered non-responsive.

https://apps.legislature.ky.gov/law/kar/200/005/330.pdf

All electronic documents submitted in response to this RFB shall be submitted in Microsoft Word, Microsoft Excel or PDF format ONLY.

Section 13 Method of Award Best Value – Ranking Approach The Commonwealth intends to award a contract to the vendor, whose offer, conforming to the solicitation, is the most advantageous on the basis of "best value" for all products, services, and requirements contained herein.

An evaluation committee, or a designated individual, will evaluate the information provided by the vendor in response to the established measurable criteria contained in the solicitation.

Measurable Criteria:

Price 100 Points

Minimum Requirements Pass/Fail

TOTAL POINTS 100 Points

Each vendor is responsible for submitting all relevant, factual and correct information with their offer to enable the evaluator(s) to afford each vendor the maximum score based on the available data submitted by the Vendor.

A bidder shall submit one (1) response to a solicitation and shall not propose more than one (1) model/brand for each item listed in the solicitation, except for requested tier pricing. Multiple or alternate bids offering more than one (1) bid price in total or by line item shall be rejected.

Vendors responding with the minimum Best Value requirements in this solicitation shall not be credited with Best Value points. Vendors responding with greater than the minimum requirements shall receive Best Value points. Failure to provide adequate information will impact the evaluated points awarded to the vendor.

A. PRICE (100 points)

The bidder with the lowest Price receives the maximum score. The bidder with the next lowest Price receives points by dividing the lowest Price by the next lowest price and multiplying that percentage by the available points. For example, 90 points is allocated to the lowest Price criteria for this procurement, bidder “A” bids $3.00 as the lowest bidder and receives the maximum 100 points ($3.00 / $3.00 =

1.00 x 100 = 100). Assume bidder “B” is the next lowest bidder at $4.00, then “B” receives 75 points ($3.00 / $4.00) = .75 x 100 = 75).

B. MINIMUM REQUIREMENTS (PASS/FAIL)

Acceptable bids should meet all stated qualifying requirements including minimum coverage requirements, AM Best Rating, required endorsements, Certificate of Authority and all legal requirements as detailed in the statement of requirements which includes the following language: The vendor is required to comply with all applicable federal, state and local rules, regulations, and statutes, including but not limited to the insurance code in Chapter 304 of the Kentucky Revised Statutes, during the contract term.

Best Value scoring is subject to Reciprocal preference for Kentucky resident bidders and Preferences for a Qualified Bidder or the Department of Corrections, Division of Prison Industries

(KAR 200 5:410).

KRS 45A.490 Definitions for KRS 45A.490 to 45A.494.

As used in KRS 45A.490 to 45A.494:

(1) "Contract" means any agreement of a public agency, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item; and

(2) "Public agency" has the same meaning as in KRS 61.805.

KRS 45A.492 Legislative declarations.

The General Assembly declares:

(1) A public purpose of the Commonwealth is served by providing preference to Kentucky residents in contracts by public agencies; and

(2) Providing preference to Kentucky residents equalizes the competition with other states that provide preference to their residents.

KRS 45A.494 Reciprocal preference to be given by public agencies to resident bidders -- List of states -- Administrative regulations.

(1) Prior to a contract being awarded to the lowest responsible and responsive bidder on a contract by a public agency, a resident bidder of the Commonwealth shall be given a preference against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state. The preference shall be equal to the preference given or required by the state of the nonresident bidder.

(2) A resident bidder is an individual, partnership, association, corporation, or other business entity that, on the date the contract is first advertised or announced as available for bidding:

(a) Is authorized to transact business in the Commonwealth; and

(b) Has for one (1) year prior to and through the date of the advertisement, filed Kentucky corporate income taxes, made payments to the Kentucky unemployment insurance fund established in KRS 341.490, and maintained a Kentucky workers' compensation policy in effect.

(3) A nonresident bidder is an individual, partnership, association, corporation, or other business entity that does not meet the requirements of subsection (2) of this section.

(4) If a procurement determination results in a tie between a resident bidder and a nonresident bidder, preference shall be given to the resident bidder.

(5) This section shall apply to all contracts funded or controlled in whole or in part by a public agency.

(6) The Finance and Administration Cabinet shall maintain a list of states that give to or require a preference for their own resident bidders, including details of the preference given to such bidders, to be used by public agencies in determining resident bidder preferences. The cabinet shall also promulgate administrative regulations in accordance with KRS Chapter 13A establishing the procedure by which the preferences required by this section shall be given.

(7) The preference for resident bidders shall not be given if the preference conflicts with federal law.

(8) Any public agency soliciting or advertising for bids for contracts shall make KRS 45A.490 to 45A.494 part of the solicitation or advertisement for bids.

The reciprocal preference as described in KRS 45A.490-494 above shall be applied in accordance with 200

KAR 5:400.

Determining the residency of a bidder for purposes of applying a reciprocal preference

Any individual, partnership, association, corporation, or other business entity claiming resident bidder status shall submit along with its response the attached Required Annual Affidavit for Bidders, Offerors, and Contractors Claiming Resident Bidder Status, unless a valid, Annual Affidavit is already on file with the Commonwealth. The BIDDING AGENCY reserves the right to request documentation supporting a bidder’s claim of resident bidder status. Failure to provide such documentation upon request shall result in disqualification of the bidder or contract termination.

A nonresident bidder shall submit, along with its response, its certificate of authority to transact business in the Commonwealth as filed with the Commonwealth of Kentucky, Secretary of State. The location of the principal office identified therein shall be deemed the state of residency for that bidder. If the bidder is not required by law to obtain said certificate, the state of residency for that bidder shall be deemed to be that which is identified in its mailing address as provided in its bid.

Preferences for a Qualified Bidder or the Department of Corrections, Division of Prison Industries

(KAR 200 5:410).

Pursuant to 200 KAR 5:410, and KRS 45A.470, Kentucky Correctional Industries will receive a preference equal to twenty (20) percent of the maximum points awarded to a bidder in a solicitation. In addition, the following “qualified bidders” will receive a preference equal to fifteen (15) percent of the maximum points awarded to a bidder in a solicitation: Kentucky Industries for the Blind, any nonprofit corporation that furthers the purposes of KRS Chapter 163 and any qualified nonprofit agencies for individuals with severe disabilities as defined in KRS 45A.465(3). Other than Kentucky Industries for the Blind, a bidder claiming “qualified bidder” status shall submit along with its response to the solicitation a notarized annual affidavit, which affirms that it meets the requirements to be considered a qualified bidder- annual affidavit form included. The annual affidavit form is not required if a valid, annual affidavit is already on file with the Commonwealth. If requested, failure to provide documentation to a public agency proving qualified bidder status may result in disqualification of the bidder or contract termination.

Past Vendor Performance may be considered in the award of this Contract. Vendors with a record of poor performance in the last 12 months may be found non-responsible and ineligible for award.

Section 14 Tax Exempt Status Do not include Federal Excise Tax, Kentucky Sales or Use Tax in prices quoted in response to this solicitation.

Section 15 Basis of Price Revisions Does not apply.

Section 16 Vendor Terms and Conditions Solicitation or quotation forms that include terms and conditions not in conformity with the terms and conditions of this solicitation or the Statutes of the Commonwealth of Kentucky may be deemed non-responsive.

The Commonwealth of Kentucky shall not be bound by any part(s) of the bidder’s response to this solicitation that contains information, options, conditions, terms, or prices neither requested nor required in the solicitation. In the event of any conflicts between the specifications, terms and conditions indicated by the Commonwealth and those indicated by the contractor, those of the Commonwealth take precedence. The contract supersedes all bids or other prior agreements, oral or written, and all other communications between the parties relating to this subject.

Section 17 Post Contract Agreements The resulting contract shall constitute the entire agreement between the State and awarded contractor. Unless contractually provided, State agencies utilizing this contract will not be required to enter into nor sign further agreements, leases, company orders or other documents to complete or initiate the terms of a contract resulting from this solicitation or offer. Any such documents so obtained will be non-binding on the State and agents of the State and will be cause for breach of contract.

Section 18 Equipment Does not apply.

Section 19 Quantity Basis of Contract – Estimated Quantities Does not apply.

Section 20 Manuals and Distribution of Literature Does not apply.

Section 21 Vendor’s Report Does not apply.

Section 22 FOB Basis of Shipment – Vendor Responsible Quotations of unit prices on this solicitation shall be F.O.B. Destination Freight Prepaid and Allowed. The vendor shall be fully responsible for all shipments and freight charges involved to the ordering agency.

Section 23 Cancellation Clause – 30 Days Notice The Commonwealth may cancel the contract established from this solicitation by giving written notice thirty (30) days prior to effective cancellation date. In the event such action is taken, the contract shall be null and void upon receipt of a Modification from the Office of Procurement Services canceling the contract.

Section 24 Exception to Required Use of Contract The establishment of this Master Agreement is not intended to preclude the use of similar products when requested by the agency. The Commonwealth of Kentucky reserves the right to contract for large requirements by using a separate solicitation.

Section 25 Service Performance All services performed under this contract, if applicable, shall be in accordance with the terms and provisions of the contract. It will be the agency’s responsibility to ensure that such services rendered are performed and are acceptable.

The relationship between the State and the Contractor is that of client and independent contractor. No agent, employee, or servant of the contractor or any of its subcontractors shall be or shall be deemed to be an employee, agent, or servant of the State for any reason. The contractor will be solely and entirely responsible for its acts and the acts of its agents, employees, servants and subcontractors during the performance of this contract.

Major deviations of services performed will not be made without the written approval of the Office of Procurement Services. Problems that arise under any aspect of performance should first be resolved between the vendor and the agency. Either party should refer in writing any such problems and/or disagreements that cannot be resolved to the Office of Procurement Services for settlement.

Section 26 Addition or Deletion of Items or Services The Office of Procurement Services reserves the right to add new and similar items, with the consent of the vendor, to any contract awarded from this solicitation. The Office of Procurement Services to effect this change will issue a contract Modification.

Until such time as the vendor receives a Modification, the vendor shall not accept Delivery Orders from any agency referencing such items or services.

Section 27 Agreement between Parties By submitting a bid, the bidder acknowledges and agrees to be bound by the terms and conditions of the solicitation.

The bidder agrees that a resulting contract is the complete and exclusive statement of the agreement between the parties, which supersedes all prior agreements, oral or written, and all other communications between the parties relating to the subject matter of this solicitation. It is further agreed between the parties, that any valid modification of contractual agreement must be formalized by issuance of a Contract Modification from the Office of Procurement Services.

Purchase or Sales Agreements, supplied by the bidder making an offer, in reply to the solicitation, will not be accepted. The only terms and conditions acceptable to the Commonwealth of Kentucky are as outlined in the solicitation. Bids not conforming will be considered as non-responsive.

Section 28 Governmental Restrictions In the event any Governmental restrictions may be imposed which would necessitate alteration of the material, quality, workmanship, or performance of the items offered on this proposal prior to delivery, it shall be the responsibility of the successful bidder to notify the Office of Procurement Services in writing, indicating the specific regulation which requires such alterations. The Commonwealth reserves the right to accept any such alterations, including any subsequent price adjustments, or to cancel the contract.

Section 29 Payments The Commonwealth will make payment within thirty (30) working days of receipt of contractor's invoice or of acceptance of goods and/or services in accordance with KRS

45.453 and KRS 45.454.

Payments are predicated upon successful completion and acceptance of the described work, services, supplies, or commodities, and delivery of the required documentation.

Invoices for payment shall be submitted to the agency contact person or his representative.

Section 30 Inspection All supplies, equipment and services shall be subject to inspection or tests by the Commonwealth prior to acceptance. In the event supplies, equipment or services are defective in material or workmanship or otherwise not in conformity with specified requirements, the Commonwealth shall have the right to reject the items or services or require acceptable correction at the Vendor’s expense.

Section 31 Inquiries All questions shall be submitted in writing by December 16, 2025 at 1:30 PM, ET to the Commonwealth buyer listed below. No questions shall be accepted after the date(s) listed unless the question(s) is considered material to the procurement. The Commonwealth shall respond to salient questions in writing by issuing an addendum to the solicitation. The addendum shall be posted to the Kentucky Vendor Self Service site.

Sole Point of Contact – Commonwealth Buyer The Commonwealth Buyer listed below shall be the sole point of contact throughout the procurement process. All communications, oral and written (regular, express, or electronic mail), concerning this procurement shall be addressed to:

Commonwealth Buyer Angie Johnson, KCPM

COMMONWEALTH OF KENTUCKY

FINANCE AND ADMINISTRATION CABINET

Office of Procurement Services

200 MERO STREET, 5TH FLOOR

FRANKFORT KY 40622

(502) 564-6194 angelaf.johnson@ky.gov

Restrictions on Communications From the issue date of this solicitation until a contractor(s) is selected and the selection is announced, offerors are not allowed to communicate with any Commonwealth Staff concerning this solicitation except:

• The Commonwealth Buyer cited in this solicitation

• Via written questions submitted to the Commonwealth Buyer

Potential bidders should clearly understand that any verbal representatives made or assumed to be made during any oral discussions held between representatives of potential bidders and any state employee or official are not binding on the Commonwealth of Kentucky.

For violation of this provision, the Commonwealth shall reserve the right to disqualify the bid/proposal.

Section 32 Subcontracts The contractor is permitted to make subcontract(s) with any other party for furnishing any of the work or services herein. The contractor shall be solely responsible for performance of the entire contract whether or not subcontractors are used. The Commonwealth shall not be involved in the relationship between the prime contractor and the subcontractor. Any issues that arise as a result of this relationship shall be resolved by the prime contractor.

All references to the contractor shall be construed to encompass both the contractor and any subcontractors of the contractor.

Section 33 Federal Tax Exempt Purchases by the Commonwealth of Kentucky Contracts Direct With Manufacturer: In the event a manufacturer bids direct and is awarded a contract, the Office of Procurement Services shall request the contractor to furnish evidence of registration with the U.S. Internal Revenue Service. This registration shall be in accordance with the “Temporary Rules, 1958 Excise Tax Act”.

After such registration, individual Excise Tax Exemption Certificates are not necessary on each individual order issued against the contract by the Office of Procurement Services. Therefore, quoted prices must be exclusive of Federal Excise Taxes.

Contract With Other Than Manufacturer: If successful bidder is other than the manufacturer, the Office of Procurement Services will furnish a Tax Exemption https://kymsoffice-my.sharepoint.com/personal/angelaf_johnson_ky_gov/Documents/Desktop/RFBs%2011-2025/RQS%20677%2026.299%20-%20RFB%20758%202600000247%20-%20KREC%20Errors%20&%20Omissions%20Insurance/angelaf.johnson@ky.gov

Certificate with each individual order issued against this contract. Therefore, quoted prices must be exclusive of Federal Excise Taxes.

Section 34 Governing Law This contract shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky. Any action brought against the Commonwealth on the contract, including but not limited to actions either for breach of contract or for enforcement of the contract, shall be brought in Franklin Circuit Court, Franklin County, Kentucky in accordance with KRS 45A.245.

Section 35 Protest Pursuant to KRS 45A.285, the Secretary of the Finance and Administration Cabinet, or his designee, shall have authority to determine protests and other controversies of actual or prospective offerors in connection with the solicitations or selection for award of a contract.

Any actual or prospective offeror or contractor, who is aggrieved in connection with solicitation or selection for award of a contract, may file protest with the Secretary of the Finance and Administration Cabinet. A protest or notice of other controversy must be filed promptly and in any event within two (2) calendar weeks after such aggrieved person knows or should have known of the facts giving rise thereto. All protests or notices of other controversies must be in writing and shall be addressed and mailed to:

HOLLY M. JOHNSON, SECRETARY

COMMONWEALTH OF KENTUCKY

FINANCE AND ADMINISTRATION CABINET

200 MERO STREET, 5TH FLOOR

FRANKFORT KY 40622

The Secretary of Finance and Administration Cabinet shall promptly issue a decision in writing. A copy of that decision shall be mailed or otherwise furnished to the aggrieved party and shall state the reasons for the action taken.

The decision by the Secretary of the Finance and Administration Cabinet shall be final and conclusive.

Section 36 Kentucky Tax Registration Application Revenue Form 10A100, Kentucky Tax Registration Application effective July 2008, is a form to be completed by any person or entity wishing to contract with the Commonwealth to provide goods or services subject to sales and use tax pursuant to KRS 139.200. The form is located at the following link:

https://revenue.ky.gov/Forms/10A100(P)(4-25)_FINAL_locked%20Fill-in.pdf https://revenue.ky.gov/Forms/10A100(P)(4-25)_FINAL_locked%20Fill-in.pdf

In accordance with administrative regulation 200 KAR 5:390, this form has to be completed and submitted, before a contract can be awarded. Section 2 of the regulation also notes: “Failure to submit the required documentation or to remain registered and in compliance with the sales and use tax filing and remittance requirements of KRS 139.540 and KRS 139.550 throughout the duration of the contract shall constitute a material breach of the contract and the contract may be terminated.”

Section 37 Access to Records The state agency certifies that it is in compliance with the provisions of KRS 45A.150, "Access to contractor's books, documents, papers, records, or other evidence directly pertinent to the contract." The Contractor, as defined in KRS 45A.030, agrees that the contracting agency, the Finance and Administration Cabinet, the Auditor of Public…