Current_PWS_BSA.pdf

Attachment A

Federal Emergency Management Agency

National Flood Insurance Program

Bureau and Statistical Agent

PERFORMANCE WORK STATEMENT (Rev 2)

Revised 25 October 2010

Performance Work Statement

Bureau and Statistical Agent Business Services

C.1 BACKGROUND:

C.1.1 Program History:

The Department of Homeland Security, Federal Emergency Management Agency, Mitigation Directorate, is seeking to procure a contractor to provide program management and insurance services in support of the National Flood Insurance Program’s Bureau and Statistical Agent. These services include financial and statistical reporting and analysis; underwriting, claims, and development of all program materials, manuals, bulletins and forms.

The B&SA Contractor is the focal point of support operations for the Write Your Own (WYO) program, acts as the NFIP "Bureau", and performs management, analytical analyses, including the identification and resolution of problems, and the development of forms, manuals and other materials for the NFIP.

FEMA has also engaged a NFIP Servicing Agent Contractor to directly issue and service flood insurance policies, collect premiums and adjust and settle claims on behalf of the Government. The Servicing Agent Contractor is responsible for approximately 5% of NFIP policies.

The regulations governing the National Flood Insurance Program are set forth in Title 44 of the Code of Federal Regulations, Chapter I, Subchapter B, commencing at Part 59. The incumbent Contractor also serves as Statistical Agent for the Write Your Own (WYO) program. The authority for the WYO Program as set forth in 44 CFR Parts 61 and 62, Sections 61.13 and 62.63. Appendix B to Part 62 establishes A Plan to Maintain Financial Control for Business Written Under the Write Your Own Program (the "Financial Control Plan"). Administration of the WYO Program, including establishment of operating policies, rates, designation of eligible communities, development of reporting requirements, creation of auditing specifications, and the like, is the responsibility of Mitigation. The Mitigation Directorate responsibilities are undertaken in cooperation with the participating companies and the insurance industry. Mitigation is supported by FEMA and DHS. The Bureau and Statistical Agent contractor provides additional assistance in carrying out the WYO Program. With respect to the WYO program, in 1981, the Federal Insurance Administration (FIA) contacted representatives of insurance companies and the insurance trade organizations to determine the best way to achieve a new involvement by insurers in the National Flood Insurance Program (NFIP). In July 1983, the "model" arrangement for the WYO program was made final as a result of those meetings and extensive government coordination.

On August 16, 1983, an invitation was extended to all licensed property insurance companies to participate in WYO for fiscal year 1984. Since 1983, the WYO Program has become the primary vehicle for the delivery and service of flood insurance, responsible for approximately 95% of policies, and the Program has successfully pursued its goals:

- Increase the flood insurance policy base as well as the geographic distribution of policyholders;

- Improve service to policyholders and insurance agents through the infusion of industry knowledge and through access to existing insurance company communication capabilities that have been designed to meet their client's needs;

- Provide insurance companies with operating experience under the NFIP, particularly in ways that greatly increase the Program's ability to settle claims promptly in post-catastrophe situations.

The incumbent contractor provides quality control over the loss investigations made by WYO (and the NFIP Direct Servicing Agent Contractor) loss adjustment processing, the contractor establishes catastrophe and coordination offices in the event of large scale or severe flooding for the purposes of expediting claims and coordination with Write Your Own (WYO) companies, wind pool, beach plan and FAIR Plan insurers, Servicing Agent contractor and Federal disaster assistance personnel. NFIP IT Services are performed by a separate contractor and encompass WYO and other reporting systems and provides support to the BS&A. The BS&A in turn provides a change control board for the purpose of developing system requirements analysis and documentation to address any new requirements from legislation, GAO or other mandated changes and coordinates these with the NFIP IT Services contractor.

The BS&A provides the systems testing to ensure that required changes are accurate before placed in production. Through a central office and field offices, the Contractor conducts outreach in support of Program insurance and floodplain management objectives and in support of the FEMA Regional Offices.

C.l.2 Procurement Objectives

The objectives of this procurement are:

a. Maintain, in an uninterrupted manner the support to the operation of the WYO Financial Control Plan (FCP) particularly, and support new processes related to the Transaction Record Reporting and Processing (TRRP) Plan for the NFIP;

b. Help coordinate operations of the NFIP with Government hazard mitigation and disaster response activities;

c. Provide the capability for technical assistance, and the preparation and provision of materials for the NFIP Direct Servicing Agent, program stakeholders and the WYO companies to support efficient program operations.

d. Operate as a financial reporting agent and review and report on compliance with the requirements of the WYO FCP;

e. Operate, on behalf of the Government, as statistical analyst for all aspects of the program, including NFIP policy and claims experience; provide expert actuarial, claims, underwriting, planning and financial management analysis and assistance to the Government;

f. Coordinate claims quality control, re-inspection, WYO special assistance and special projects analysis, and salvage and subrogation activities on behalf of the Government;

g. Coordinate communication and information dissemination through the BSA Clearinghouse with the WYO companies, the NFIP Direct Servicing Agent, the NFIP Training contractor, the NFIP Call Center contractor and program stakeholders.

h. Provide technical assistance, systems testing, and requirements analysis for all system changes through a Bureau Change Control Board that provides support to a contractor to be selected for the operations, maintenance and continuous improvement of FEMA’s NFIP IT systems modernization resulting architecture. Provide expert policy analyses, technical advice, and support to the Mitigation Directorate’s Risk Insurance Division, particularly in the areas of Claims and Underwriting as its relates to private property insurance industry practices. This requirement would entail high level technical support for writing and developing Technical Assistance Bulletins, Policy Issuance Bulletins, Issues (White) Papers and drafting responses to NFIP Constituent concerns on behalf of Mitigation.

C.2 Project Management

C.2.1 Program Management Plans

a. Within10 calendar days following contract award, the Contractor shall meet with the Government to provide a briefing on the Contractor's approach to managing the future contract and provide all points-of-contact information. Within 20 calendar days of contract award, the Contractor shall provide the following management plans, drafts of which shall be submitted with the technical proposal, for the Government's review and approval.

1. Project Management Plan

2. Transition Plan (Phase-In and Phase-out)

3. Disaster Recovery, Security and Continuity of Operations Plan

4. Quality Control Plan

b. The Contractor shall incorporate Government comments into the final plans within 10 calendar days of receipt and provide periodic plan updates, as required by the Government.

C.2.1.1 Project Management Plan

a. The Contractor shall provide a Project Management Plan that describes the Contractor's understanding of the Bureau and Statistical Agent requirements and explains how the Contractor will manage the effort to meet all requirements. The Contractor shall explain the management structure of its Bureau and Statistical Agent team, including an organizational chart showing the Program Manager and the main points of contact (POCs) with the Government and any subsidiary management structure. The Project Management Plan shall also identify any subcontracts and describe subcontractor management, roles, and responsibilities. The plan shall explain the management control and reporting systems that will be necessary to assure full and complete compliance with the terms and conditions of this contract.

b. The Project Management Plan shall explain how the Contractor’s corporate – level management will respond to and correct any problems, complaints, and/or conflicts over its team’s performance of the contract.

C.2.1.2 Contract Transition Plans

The Contractor shall provide phase-in and phase-out transition plans that describe how the Contractor will transition, with minimum disruption to FEMA's Bureau and Statistical operations.

C.2.I.2.I Phase-In Plan

a. The Government will provide the Contractor with a phase-in period not to exceed 180 calendar days for the transition during which the contractor shall overlap with the current contract. During the phase-in period, the Contractor shall become familiar with performance requirements, establish the management organization, and finalize the required plan. The Contractor shall assume duties under this PWS at the conclusion of the 180 day transition phase-in period. At a minimum, the Contractor shall address the following areas in the Transition Phase-In Plan:

1. Interface and coordination with the Government;

2. Identification of key transition events and objectives including a transition schedule.

3. Identification of key persons participating in the transition including authority of Contractor management during transition;

4. Specific actions that will be taken to alleviate problems during the transition; and

5. Participation with the incumbent Bureau and Statistical Agent to catalog, transfer, receive and accept materials.

b. The Contractor shall submit Weekly Progress Reports by each Wednesday of the week immediately following the week on which work is conducted. The Progress Report shall address as a minimum:

1. A brief description of what was planned and what was accomplished during the reporting period;

2. A brief outline, by task and/or sub-task, of what is planned for accomplishment during the next four (4) weeks (or to the end of the transition period if less than four weeks is left in the transition period); and

3. Problems or delays experienced and specific actions required to alleviate the problems.

c. The Contractor shall attend a Consolidated NFIP Weekly Progress Review meeting during transition phase-in period that will be held once a week with: (a) the NFIP Contracting Officer’s Technical Representative (COTR) and the Contracting Officer; and (b) the incumbent Contractor, (c) the Training contractor, (d) and the Call Center contractor to ensure a seamless transition of services.

The meeting shall address progress, planned work and any problems with potential solutions.

Training and Call Center work previously performed by the incumbent contractor are being performed under separate contracts.

C.2.1.2.2 Phase-Out Plan

As directed by the COTR, the Contractor shall prepare a plan to ensure a smooth transition to a successor. The plan shall address specific phase-out milestones, actions that implement cooperation with the successor, transfer of property to the successor, transfer of portions or the entire Bureau and Statistical Agent, operations and procedures to ensure full continuity. The Contractor shall also address the following areas in the Phase-Out Plan:

a. Transition of materials and Local Area Network (LAN) files and related materials at any time the Government determines performance by the Contractor is no longer required;

b. Transition of selected data and LAN data, data files, audit trails, back-ups, and hard copy forms received, produced, and maintained throughout the life of the contract;

c. Transition of all software used in the performance of this contract and title or license there;

d. Preparation of a final report outlining all work accomplished under this contract and the problems encountered. The report shall include recommendations regarding the future performance of services specified in this contract;

e. Specific actions to be taken to negotiate the sale to the Government or the successor, of the equipment, furnishings and other items acquired by the Contractor for its own account but utilized by the Bureau and Statistical Agent operations and depreciated as other direct costs allowable under the terms of the contract:

f. Transition to the successor, records concerning all outstanding checks issued by the Contractor, which have not been negotiated by the payees so that such information shall be available for inquiries, which may be received, by the successor;

g. Procedures to be taken to allow the successor reasonable access, as determined by the Contracting Officer, to the facilities and staff of the incumbent Contractor;

h. Specific actions to be taken to transfer the performance of services to a successor including provisions for coordination of efforts and assistance;

i. Specific actions to be taken to document, and maintain the NFIP Bureau and Statistical LAN systems in such a manner as to ensure smooth and orderly transition to alternate hardware or software systems or service suppliers, in the event another organization is selected to perform all or a portion of the services called for under the contract;

j. Specific actions to be taken to conduct all transition activities in a manner which will comply with a supplied schedule and procedures which will ensure uninterrupted service by the Bureau and Statistical Agent and allow the Government to meet time critical schedules.

k. Transition of reports, correspondence, manuals, publications, back-up materials, etc., created in performance of the various aspects of the Bureau and Statistical Agent contract.

l. The Contractor shall attend a Weekly Progress Review that will be held once a week with: (a) the NFIP Contracting Officer’s Technical Representative and the Contracting Officer; and (b) the incumbent Contractor. The meeting shall address progress, planned work and problems.

C.2.1.3 Disaster Recovery, Security and Continuity of Operations Plan

The Contractor shall develop and maintain implementation plans and guidance for its staff concerning disaster recovery and continuity of operations to handle special and emergency circumstances that could jeopardize FEMA system requirements. The Contractor shall develop and, at least annually, review, test and update the Disaster Recovery, Security and Continuity of Operations Plan. The Plan must enable the downed system to be available in three calendar days or less. The entire system shall be able to operate from the disaster recovery site for an extended period of several months. The disaster recovery tests shall prove that the disaster site can be occupied within 24 hours notice and that the system can be established and operational in not more than three calendar days from notice by the Government. The security controls required by the Facility Security Plan shall not be compromised during either the occupation or return from the disaster recovery facility. The Contractor shall demonstrate continuity of operations by performing transportability tests and disaster recovery tests.

C.2.1.4 Quality Control Plan

a. Quality Control is the monitoring and oversight performed by the Contractor to ensure that work is accomplished in accordance with the terms of the contract. Quality Assurance, discussed in Section E, is performed by the Government for the purpose of verifying that the Contractor is performing the work as required by the contract and that the Contractor's quality control program is viable.

b. The Contractor shall provide services in accordance with the terms of this contract. The Contractor shall develop a Quality Control Plan, which includes the following elements:

1. An internal quality control, inspection, and feedback system to facilitate internal and external monitoring and auditing;

2. A program of internal audit, analysis and reporting;

3. Procedures to ensure compliance with Federal and Program regulations;

4. Plans to collaborate with other NFIP contractors to develop an effective system to ensure continuous improvement in program operations, particularly in the areas of cost effectiveness, control and data integrity.

5. Plans to collaborate with other NFIP contractors to develop an effective system to analyze data quality, to capture and report trends and to initiate action in response to these trends.

C.3 Contract Management Reporting Requirements

a. The Contractor shall submit monthly management reports, financial reports and participate in quarterly Contract/Project Management Status Reviews. The Contractor shall provide monthly project management reports, covering projects planned and accomplished during each month of the contract.

For specific projects identified by the COTR, the Contractor shall provide estimated staffing resources and other resource expenditures versus planned efforts for the development and implementation period.

b. The Contractor shall conduct for the Government a quarterly review of actual versus planned contract staffing and operating costs. The Contractor shall conduct this review to assure Government understanding of all issues. The Contractor shall present detailed supporting documentation for all invoices submitted for payment during the subject period and explain deviations from forecasted expense levels.

c. The Contractor shall deliver all monthly project management and financial reports in accordance with the timetable established in Section F, Deliveries or Performance, of this contract.

C.4 Financial Management

C.4.1 Accounting and Financial Control Requirements

a. The Contractor shall submit monthly financials to the NFIP Legacy Systems Contractor.

b. The Contractor shall provide in accordance with GAAP cash receipts and disbursements and perform a monthly reconciliation of all receipts and disbursements to assure that adequate internal controls are in place to safe guard federal funds.

c. The Contractor shall maintain an automated general ledger (G/L) on an accrual basis in conformance with Generally Accepted Accounting Principles (GAAP). However, the G/L should have the capability to interface with the Legacy system.

d. The Contractor shall perform the reconciliation of G/L accounts and adjusting entries on a monthly basis.

e. The Contractor shall provide a detailed audit trail of all transactions.

C.4.2 Accounting Reports

a. Each month the Contractor shall submit consolidated financial statements to the Legacy System contractor which will be the SOR and responsible for reporting financial data. These reports will be due by the 21st calendar day of the month. Financial statements, at a minimum, consist of a Balance Sheet, Income Statement, Statement of Changes in Financial Position, and Statement of Cash Flows.

The Contractor shall prepare monthly financial statements in accordance with GAAP and include footnotes for clarification. Annual Statements shall include all appropriate footnotes and disclosures in accordance with GAAP.

b. Each month the Contractor shall submit a list of BSA remittances to the Legacy Systems contractor by the 21st calendar day of the following month.

c. By the 21st calendar day of the month following the month of deposit, the Contractor shall submit a detailed report on the deposits it has made.

d. By the 21st calendar day of the month following, the Contractor shall submit a detailed monthly report to account for its expenses reimbursed through its Letter of Credit. The report shall certify that funds were used as appropriate.

e. The contractor shall provide a secured area for where checks received should be processed for deposit and access is limited.

C.5 Underwriting Requirements

a. The Contractor shall provide professional underwriting support to respond to the needs of policyholders, FEMA, the Mitigation Directorate, the WYO companies, the NFIP Servicing Agent, and the other FEMA Contractors and Stakeholders in the implementation of the NFIP. Such support shall include but not be limited to:

1. Answering and tracking specific questions and correspondence;

2. Framing policy issues, options, and recommendations for resolution by the Mitigation Directorate;

3. Developing, subject to the Contracting Officer’s Technical Representative’s approval, policy documentation and procedures for key underwriting issues and activities;

4. Reviewing NFIP and WYO materials for program consistency; and accuracy.

5. Providing technical assistance to WYO companies and the NFIP Servicing Agent.

6. For refunds beyond the most current two terms, gathering rating and payment information, calculating refund, authorizing and initiating prior term refunds;

7. Developing and updating the Flood Insurance Manual semi-annually;

8. Coordinating Coastal Barrier Resources Act (CBRA) eligibility with Fish and Wildlife.

9. Reviewing and recommending approval of Preferred Risk Policy (PRP) appeals for resolution by the Mitigation Directorate

10. Reviewing Severe Repetitive Loss Appeals and providing a recommendation to the FEMA Underwriting Monitor as to the disposition, i.e., approved or denied. In either case a letter is prepared and if approved a copy of the file is sent to a) FEMA, b) the NFIP Direct who services these policies, and c) ISO for updating their records.

b. The Contractor shall support the implementation of the WYO FCP third-party audits and examinations. The Contractor shall establish programs for underwriting analyses assuring the integrity of WYO underwriting data and reporting.

c. Secure Submit for Rate (SFR) files from WYOs at the request of FEMA’s Regional Flood Insurance Specialists. Validate files for accuracy and completion, and forward reviewed, accurate and complete files to requesting FEMA Regional Flood Insurance Specialist.

d. Monthly, the Contractor shall provide a file with updates to be input/used by the Legacy systems contractor for maintenance of the following files:

1. Coastal Barrier Resource Act (CBRA) area building violations;

2. 1316 declarations

3. Leased Federal Properties

4. Preferred risk policy eligibility

5. Condominium Inspection files

6. Prior term refunds, and

7. Monroe County Pilot Inspection Program

e. The Contractor shall receive, resolve and track underwriting inquiries and coverage problems referred by FEMA, the Mitigation Directorate, insured’s, agents, WYO companies, State insurance departments, and others. All underwriting files where there is a question of coverage involving policy interpretation shall be promptly forwarded or referred to the Mitigation Directorate through the COTR for disposition.

f. The Contractor shall collect information about underwriting. The Contractor shall support the exchange of underwriting information between WYO companies, the NFIP Servicing Agent, and the Mitigation Directorate. The Contractor shall, under the direction of the COTR, develop and disseminate underwriting bulletins concerning the Mitigation’s decisions on underwriting issues.

g. The Contractor shall upon approval by the COTR prepare and execute an annual plan of special underwriting projects and analyses. These projects may involve a sampling or an intense review of underwriting files and/or a field survey of specifically identified areas (e.g. Coastal Barrier areas, high value properties, elevated buildings, etc.) the contractor shall also support, as requested by the COTR, other ad hoc special underwriting analyses.

C.6 Claims Administration Requirements

C.6.1 Claims Administration

a. The Contractor shall provide expert professional support to respond to the needs of the Mitigation Division, the WYO companies, and the NFIP Servicing Agent and other Contractors in the implementation of the NFIP claims program. Such support shall include but not be limited to:

1. Answering and tracking specific questions and correspondence;

2. Framing policy issues for resolution by the Mitigation Directorate;

3. Reviewing or developing manuals, and other materials; and

4. Developing, Standard Operating Procedures for re-inspections, policy documentation, tracking, reexamination, re-inspections and trends, for key claims issues and activities, (e.g. WYO’s and NFIP Direct claims handling, adjuster management, overpayment and underpayment, subrogation, and flood disaster coordination, etc.).

5. Adjuster Management (e.g. registration and certification, etc.)

6. Providing special assistance to the WYO companies on claims issues.

b. The Contractor shall coordinate, as directed by the COTR, claims activities of WYO companies, the NFIP Servicing Agent, Wind-Pools, and Beach Plans, and as appropriate, other Government programs. The Contractor shall provide coverage information, and other support, as required by the COTR. The Contractor shall establish programs for assuring the integrity of WYO claims data and reporting.

c. The Contractor shall plan and implement the Claims Re-inspection Program and its requirements, including the use of the Binomial Table and reports. The NFIP Legacy contractor will provide a random sampling of claim files between 30-40 days from the date of loss to facilitate re-inspection assignments. Based on the volume of the losses reported, the Legacy Contractor will continue to provide samplings to the Contractor. The Contractor shall provide feedback to Mitigation, the WYO companies, and the NFIP Servicing Agent, through the Contracting Officer’s Technical Representative, on claims matters arising from re-inspections including common issues and trends.

The Contractor shall maintain a detailed database of the re-inspections and its findings. It will analyze and summarize the results of the re-inspections, including identifying trends, over and underpayment, etc. The contractor will provide a report on a quarterly basis and Fiscal Year basis to the COTR, and Claims Monitor

d. The Contractor shall be the focal point for the collection of information about coverage problems and other claims matters. All Claims where there is a question of coverage involving policy interpretation shall be promptly forwarded or referred to the Mitigation Directorate through the Contracting Officer’s Technical Representative for disposition. The Contractor shall develop claims bulletins for the Claims Monitor’s review and approval. The Contractor shall disseminate claims bulletins with the approval of the COTR.

e. The Contractor shall, within such limitations as the COTR, may deem appropriate; troubleshoot problems for FEMA, the Mitigation Division, insured persons, WYO companies, adjusters and agents as they relate to specific flood claims by assigning the claim to its own qualified General Adjuster and/or examiner for further investigation and/or disposition. The Contractor shall report the findings to the Claims Monitor, the WYOs and the COTR.

f. The Contractor shall upon approval by the COTR, prepare and execute an annual plan of special claims projects and analyses. These projects may involve a sampling or an intense review of claims files and/or a field survey of specifically identified areas (e.g., Single Adjusted losses, Condominiums, Increased Cost of Compliance (ICC), repetitive loss, subrogation, Coastal Barrier, high value properties, elevated buildings, etc). The Contractor shall also support, as required, other ad hoc special claims analyses.

h. The Contractor shall assist in the WYO company claims adjustment process by responding to requests from the WYO companies or the NFIP Servicing Agent for prior claims information contained in the AIS and/or in TRRP Plan data files. The Contractor shall, as appropriate, direct requestors to another WYO company or to the NFIP Servicing Agent for information and related underwriting data.

Claims and other information forwarded to WYO companies shall only be that information identified in the FEMA Routine Uses as published in the Federal Register pursuant to the Privacy Act.

i. The Contractor shall review Special Allocated Expenses incurred by the Direct Side as well as the WYO companies when necessary to assign a structural engineer to inspect an insured property in order to determine the cause and extent of damage, or if a commercial account suffers a large inventory loss and a review of the books and records by a Certified Public Accountant is required to establish the pre and post loss inventory damages. The reports of the experts and their bills are submitted to the BSA for review and approval.

j. The Contractor shall submit all SALAE’s and legal billings for claims in litigation through the COTR to the Risk Insurance, Claims Chief for approval. If travel expenses are submitted they must be documented and approved by the WYO carrier.

C.6.2 Flood Disaster Response

a. Daily, the Contractor shall monitor weather conditions and in the event of a flood disaster, and as soon as practicable, shall survey the disaster area and assess the extent of damage caused by flooding and advise the COTR as to the need to establish field offices. The weather conditions, damage survey information, etc. are communicated to the Mitigation Directorate through a report known as the “Daily Situation Report.” The Contractor will identify and monitor the WYO companies with policies in the affected area and to the NFIP Servicing Agent. In addition, as indicated by survey results, and in consultation with the COTR, the Contractor shall designate a flood disaster event number to be used by the WYO companies and the NFIP Servicing Agent for tracking and reporting of event-related claims.

b. The Contractor shall, as directed by the COTR, establish, administer and operate Flood Response Offices (FROs) and Claims Coordinating Offices (CCOs) to promote and assist the efficient adjustment and settlement of NFIP losses.

c. The Contractor shall prepare to deploy, within 24 hours of notice by the COTR, no fewer than five

(5) FRO disaster teams and four (4) CCO disaster teams, including bilingual members, as appropriate. Each team shall be prepared to establish a FRO and/or a CCO and begin operations, potentially including WYO and other claims coordination in the flooded areas. The Contractor shall also be prepared to fill, within seven calendar days of notice, additional back-up team(s) to conduct FRO activities, in the event of six (6) or more geographically distant but simultaneous flood disasters.

d. FRO activities shall provide a local NFIP presence, provide assistance, adjuster briefings, support to WYO companies and the NFIP Servicing Agent, contact field agents, conduct surveys and re-inspections, and disseminate forms, and information as needed. The Contractor shall, in keeping with FEMA guidelines, perform, and coordinate with other Government operations.

e. CCO activities shall provide for the systematic identification of wind and flood losses at the same property address followed by assignment of the loss to a single adjuster who represents both insurers.

Adjuster assignments are made, controlled, and monitored for the NFIP, WYO companies and Coastal Plans, and other property insurers (e.g., stand- alone wind) at the CCOs pursuant to each State Coastal Plan's agreement. The CCO will be co-located with or near the State Coastal Plan, where appropriate or pursuant to annual Single Adjuster agreements entered into with each State Coastal Plan for the handling of Wind/Water losses within 24 hours of landfall of a storm. The Contractor shall track and report to participating companies and the Mitigation Directorate single adjuster assignments and performance.

f. The Contractor shall assist the WYO companies by providing guidelines, flood-certified adjuster listings with qualifications, and other assistance in the coordination of disaster activities.

g. The Contractor shall develop, for COTR approval; procedures, guidelines, and other needed materials to facilitate coordination of involved WYO companies and the NFIP Servicing Agent in the event of catastrophic flooding. In the event of such catastrophic flooding, the Contractor shall work to coordinate activities of the WYO companies with the FRO or CCO as well as with any other Government disaster assistance activities as approved by the COTR. Such coordination shall include, but not be limited to matters related to the following:

1. Surveys;

2. Salvage and subrogation;

3. Single adjuster (wind and water) assignments;

4. Re-inspections

5. Preliminary damage assessments

6. Claim polling

h. The FROs and CCOs established by the Contractor shall serve as on-site emergency supply centers for NFIP forms and policies, printed supplies and other information to expedite claims processing.

i. The contractor shall develop desk-top operating procedures to ensure consistency and accuracy in program servicing for the following activities:

1. Adjuster certification

2. Claims Coordinating Office (CCO)

3. Single Adjuster Program

4. Daily Situation Report

5. Claims Polling Report

6. Flood Insurance Claims Office (FICO)

7. Re-Inspections

8. Special Allocated Loss Adjustment Expenses (SALAE)

These will be submitted to the COTR and Claims monitor for review and approval. Thereafter the procedures will be reviewed twice annually to coincide with the annual rate and review cycle (October and May) to ensure that the procedures remain current and up to date.

C.7 Program Management Requirements

C.7.1 Program Support

a. The Contractor shall, furnish knowledgeable and experienced staff to research, analyze and make recommendations concerning the conduct of the Program and support the Mitigation Division’s response to case-by-case inquiries, including underwriting, claims, financial controls, procedures, rate and rule changes, etc.

b. The Contractor shall develop, all necessary materials including but not limited to, forms, rate tables, flood insurance manual, other program guides and manuals, memoranda, and manuals for implementing rate and rule changes. Contractor activity shall be closely coordinated with the Mitigation’s COTR.

C.7.2 Change Management Requirements

a. The Contractor shall serve on the FEMA/NFIP Change Control Board (CCB). The CCB will be led by FEMA for the purpose of scoping all program changes and any new requirements between the BSA, the Legacy Systems contractor, and other service contracts, as required.

C.7.2.1 Reference and Other files

a. The Contractor shall have “read-only” access to NFIP Legacy systems and BureauNet for quality control of files required for processing and servicing of policy applications, renewals, and endorsements. The Contractor shall support and participate in processes to maintain NFIP reference data, which are utilized in the servicing of flood insurance policies and for other purposes. The data includes the following:

1. Community data;

2. Address and address cross reference data

3. Repetitive Loss History data;

4. Severe Repetitive Loss data

5. CBRS properties data;

6. Section 1316 and other special property data;

7. Condominium inspection data;

8. Claims Re-inspection data;

9. Submit-for-Rate data

10. Monroe County Pilot Inspection Program data and ineligible lists

11. Preferred Risk Policy ineligible data

12. NFIP Litigation file, and

13. Leased federal properties

c. The Contractor shall do preliminary research to provide information to the Legacy Systems contractor, provided by the Mitigation Directorate, to update community data indicating program status, Community Rating System (CRS) classification, etc. The Contractor shall also support processes related to Community data, rating zone and other data, which shall be extracted from copies of FEMA Flood Hazard Boundary and Flood Insurance Rate Maps. The Contractor shall monitor the quality of this data and participate in and support the comparison of this data with data maintained by the Mitigation Division, the Legacy Systems contractor and/or other FEMA contractors.

Additionally, and in accordance with Federal Regulations, FEMA, through its Bureau and Statistical Agent Services contractor shall send a notice to all policyholders whom are identified as having property in a community that may be placed on probation for floodplain management violations.

C.7.2.2 Data Consolidation and TRRP Reporting

a. The NFIP Legacy Systems contractor will be responsible for collecting and reporting on the operations of the WYO companies and the NFIP Servicing Agent. The BSA Contractor will use these data extensively in supporting the management of the Program, in actuarial and other analyses and in measuring progress toward Program goals.

C.7.3 Actuarial Support Requirements

C.7.3.1 Analytic and Actuarial Support

The Contractor shall provide expert and analytic support to respond to the needs of the Mitigation Directorate in implementing and making policy decisions for the NFIP. Such support shall include but not be limited to:

1. Answering specific questions;

2. Framing policy issues for resolution by the Mitigation Directorate;

3. Reviewing as approved by the COTR in coordination with the Legacy Systems contractor, documents and other materials such as the TRRP Plan and AIS Statistical Plan;

4. Reviewing and developing analytical and management reports;

5. Annual Rate Reviews and development of appropriate rate and rule revisions;

6. Ad hoc analyses for reviewing insurance experience, pricing and product development;

7. Ad hoc analyses as directed by the Contracting Officer’s Technical Representative are in support of the mitigation and risk assessment aspects of the NFIP.

8. Ad hoc analyses in support of budgeting, planning, and evaluation of the NFIP, as directed by the Contracting Officer’s Technical Representative.

C.8 Program Technical Assistance and Communications

C. 8 .1 Technical Assistance and Communications Requirements

a. The Contractor shall conduct programs of technical assistance and communications. These programs shall be conducted only after coordination with, and approval of the Contracting Officer’s Technical Representative. These programs may employ a wide range of new and existing methodologies and technology. They shall be conducted on behalf of all NFIP operations and shall, as appropriate, be coordinated with FEMA, the WYO companies and other FEMA Contractors.

b. The Contractor shall develop and supply descriptive materials and Program information in a variety of media. For printed materials, the Contractor shall produce the materials up to the point of printing, including, but not limited to, design, technical writing, graphics, etc. All materials shall meet the highest professional standards. The Contractor shall review and obtain all necessary approvals in writing prior to sending the materials to the FEMA printer for printing and release of any materials.

c. FEMA approved descriptive materials and program information may be distributed as copies or as reproducible masters or electronically to requesting individuals, groups, other NFIP program contractors or WYO companies.

C.8.2 Field Office Requirements

a. Contractor shall establish regional field offices to support the NFIP and FEMA’s Regional Offices.

b. The Contractor shall perform the representative field office activities enumerated in subparagraphs 1-5, pursuant to the Contracting Officer’s Technical Representative’s approval and in support of the FEMA regional offices;

1. Pre- and post-flood activities, including Town Hall meetings, and other events as directed by the Contracting Officer’s Technical Representative;

2. CRS committee and FEMA regional CRS activities support;

3. Coordinated insurance-related inquiry processing

4. Coordination with and support to FEMA Regional Offices that does not involve training or media

5. Provide community outreach efforts regarding the NFIP.

6. Secure Submit for Rate (SFR) Files from WYOs at the request of FEMA’s Regional Flood

Insurance Specialists. Validate files for accuracy and completion, and forward reviewed, accurate, and complete files to requesting FEMA regional flood Insurance Specialist.

c. The Contractor field offices shall receive inquiries, directly or via transfer, from the FEMA regional office and directly respond to such inquiries or, as necessary, refer them to the Contractor's own Bureau and Statistical Agent Headquarters, or to another appropriate location.

C.8.3 Document Center Clearinghouse Requirements

a. The Contractor shall establish and maintain a WYO document center clearinghouse for the development and distribution of descriptive, operating, and other WYO materials to assure the maximum efficiency of the NFIP.

b. The Contractor shall maintain adequate records and inventories of NFIP and WYO materials and establish and maintain automated current and historical mailing lists in support of the NFIP.

c. The Contractor shall monitor and assure the accuracy of program materials, including manuals and documentation, supplied to WYO companies.

C.8.3.1 NFIP Reform Act Requirements

FEMA is required to implement the Title II requirements of the Flood Insurance Reform Act (FIRA) of 2004.

a. FEMA, through the NFIP Bureau and Statistical Agent, will send to the policyholders: (a) the property’s loss history information, as required by FIRA, Section 202 (a)(4); (b) the claims handbook, as required by FIRA, Section 204; (c) the acknowledgement, as required by FIRA, Section 203; and

(d) a cover letter referencing these enclosures. This information will be sent out with new business and at renewal time. The NFIP Bureau and Statistical Agent will also provide support for Claims Appeals as required by FIRA, Section 205.

b. The WYO companies will be transmitting to the NFIP Legacy Systems contractor through the Transaction Record Reporting and Processing Plan (TRRP), policyholders’ mailing addresses which will be provided to the NFIP Bureau and Statistical Agent for use in sending the materials described above.

c. The NFIP Bureau and Statistical Agent shall implement electronic record-keeping procedures for the Acknowledgement letter to show proof of mailing, and receipt or lack of receipt of a policyholder’s signed acknowledgement.

d. The NFIP Bureau and Statistical Agent will also support FEMA in the Claims Appeals process by reviewing and investigating losses through claim file reviews and/or re-inspections.

C.8.4 Inquiry Control Requirements

The Contractor shall exercise control over all incoming correspondence and telephone inquiries about the NFIP to any point in its operations, including regional offices, to assure timely and accurate responses. The Contractor shall send copies of all responses to the Contracting Officer’s Technical Representative. The Contractor shall also provide weekly reports on inquiries and subject matter, volumes, trends, and status reports on developing responses to the inquiries.

C.8.4.1 Correspondence Requirements

a. The Contractor shall receive and prepare a draft response to all incoming facsimiles, electronic mail or regular mail as follows:

• General Correspondence - For Claims, within 45 business days. An acknowledgement letter must be sent within 24 hours of receipt of initial inquiry. For Underwriting, within 10 business days. No acknowledgement letter is required.

• Appeal Correspondence (Claims or Underwriting) – within 60 business days. An acknowledgement letter must be sent within 24 hours of receipt of initial inquiry.

• VIP Correspondence (Claims or Underwriting) – within 45 business days. An acknowledgement letter must be sent within 24 hours of receipt of initial inquiry.

• All draft final letters must be provided within 5 business days of receipt of all requested information necessary to prepare a response.

• A copy of all approved final letters must be sent to the WYO Company point of contact.

• The Contractor shall maintain specific controls, logs and procedures for all correspondence received through the Mitigation Division.

b. The Contractor shall implement, document and maintain detailed procedures for handling of all NFIP related correspondence, including correspondence received by mail, or express service or in electronic form, e.g., by facsimile transmission or electronic mail. Procedures shall evidence the ability to provide complete control over all incoming and outgoing correspondence and timely performance of all correspondence-related tasks. Such tasks include, but are not limited to:

recording of receipt; scanning of all correspondence; analysis of inquiries; research, effecting appropriate action and entry into a data system; preparation of reply; quality control review of reply by professional writer; logging of rely, filing, scanning and mailing. The aforementioned documents shall be maintained under a Government-approved program of records retention and disposal. The Contractor will have “read-only” access to BureauNet.

c. The Contractor shall control and analysis of all correspondence received. The system shall, at a minimum, provide for reports on the nature of correspondence, sources, (e.g., agent, insured, WYO company, etc.), trends (e.g., geographic, programmatic), and timeliness of problem solution and replies to correspondence.

d. The Contractor shall maintain a system for the electronic retrieval of program documents, and records. All image storage shall be in conformance with all relevant and applicable standards.

C.9. Meetings and Conferences

a. With the approval of the COTR, the Contractor shall participate in non-training and non-media activities such as: meetings with groups, including insurance agents, lenders, Government officials and citizens. The Contractor shall, on reasonable notice, conduct, assist in and/or send representatives to other program meetings, conferences, conventions or trade shows including those with WYO companies, and/or other Government contractors, convened by the Mitigation Directorate or other representatives of the Government. The Contractor shall prepare and supply materials to facilitate communication of Program information to these audiences.

b. The Contractor shall, as approved by the COTR, support and/or manage meetings, conferences and other events conducted to provide information about any aspect of the NFIP or to promote the Program.

c. The Contractor shall provide reasonable advance notice to the COTR, and obtain approval, as required, of all meetings (except Contractor management meetings) including, but not limited to, meetings with producer and lender groups and associations, independent claims adjustments organizations, WYO companies and others.

d. The Contractor shall plan and coordinate the annual National Flood Conference with the COTR and FEMA planning representatives.

e. The Contractor shall also participate and provide supporting materials to the following standing flood insurance committee meetings held three times a year:

• IBHS Committee

• Flood Insurance Producers National Committee (FIPNC)

• WYO Standards Committee

C.10 Administrative Support

C.10.1 Forms, Manuals and Publications Requirements

a. The Contractor shall develop and maintain operating forms, manuals, and other required publications, including bi-lingual materials in accordance with Department of Homeland Security (DHS) regulations and in cooperation with NFIP IT Services contractor.

b. Contractor shall provide all necessary Program technical support and assistance required for the preparation and modification of the agent, adjusters and other manuals as well as any related forms.

c. The development and maintenance of program forms shall be done in coordination with FEMA's Printing Officer, Forms Management Officer and Information Collections Management Officer and consistent with their guidance. Development and changes to the forms shall also be coordinated with the Servicing Agent Contractor. The Contractor shall be responsible for production, including, but not limited to, design, technical writing, graphics, printing, etc., as authorized, providing such productions are consistent with the Paperwork Reduction Act of 1995 and implementing OMB regulation 5 C.F.R.

1320.

d. The Contractor shall be responsible for production, including, but not limited to, design, technical writing, graphics, printing, etc. as authorized providing such productions are consistent with the provisions of the Paperwork Reduction Act of 1995 and implementing OMB regulation 5 CFR 1320, the Joint Committee on Printing Regulations, Government Printing Office regulations, and guidance issued by the FEMA Printing Officer,

e. The Contractor shall be responsible for the management of the printing requirements for performance of the contract, consistent with guidance provided by the FEMA Printing Officer, and shall comply with the Joint Committee on Printing Regulations and regulations promulgated by the Government Printing Office. In addition the Contractor shall establish and maintain procedures for obtaining FEMA reviews, clearances and approvals for printing. The Contractor sha11 operate a system of management and inventory controls.

f. The Contractor shall distribute, as requested by the Contracting Officer’s Technical Representative, copies and reproducible masters to WYO companies and other NFIP contractors.

C.10.2 Records Management

a. The Contractor shall maintain Bureau and Statistical Agent records in accordance with FEMA Manual 5400.1, Records Management-Files Maintenance and Disposition, with regards to maintenance, retention, retirement, and purging of records. The Contractor shall have a FEMA approved plan for such activities and shall, as appropriate, recommend changes to the plan as well as to FEMA Manual 5400.1.