EDP 23-84131512-ITB Attachment A Scope of Work.pdf

ITB No. 23-84131512-ITB

Electronic Data Processing Equipment Insurance

Attachment A

Scope of Work (SOW)

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

(2) from commercial insurance purchased by the Division of State Purchasing pursuant to sections 287.022 and 287.042, Florida Statutes, as further specified in Rule 60A-1.015, Florida Administrative Code, for risks not eligible for coverage through the SRMTF.

Section (1), Florida Statutes, provides:

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

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

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

2. Purpose

The Contractor shall market and secure an Insurance Policy on behalf of the State of Florida and the current Named Insureds that shall, at a minimum, include coverage that is the same or better coverage set forth in ITB Attachment I, expiring Policy, as endorsed, incorporated herein by reference, and the coverage set forth in section 5, Coverage Requirements.

The Insurance Policy secured on behalf of the State of Florida and the Named Insureds shall be provided at the pricing specified in the Bid, provided in accordance with Florida Statutes, and conform with the terms and conditions specified in the Contract. The insurance policy shall have an effective date June 5, 2023 or such other date as shall prevent a lapse in the insurance coverage.

3. Definitions

Definitions contained in section 287.012, Florida Statutes (F.S.); and Rule 60A-1.001, Florida Administrative Code (F.A.C.); Special Contract Conditions included in ITB Attachment D; and the https://www.dms.myflorida.com/content/download/2934/11780/PUR_1001_General_Instr uctions_to_Respondents.pdf (PUR 1001, General Instructions to Respondents (10/06)) https://www.dms.myflorida.com/content/download/2934/11780/PUR_1001_General_Instructions_to_Respondents.pdf https://www.dms.myflorida.com/content/download/2934/11780/PUR_1001_General_Instructions_to_Respondents.pdf

Attachment A

Scope of Work (SOW) are incorporated by reference. In the event of a conflict, the definitions listed in this section supersede the incorporated definitions for the purposes of this document. All definitions apply in both their singular and plural sense.

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

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

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

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

Claim – A demand for recovery for loss or damages.

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

Commodity Code – The State’s numeric code for classifying commodities and contractual services which meet specific requirements, specifications, terms, and conditions herein.

Florida has adopted the United Nations Standard Products and Services Code (UNSPSC) for classifying commodities and services.

Confidential Information – Information that is trade secret or otherwise confidential or exempt from disclosure under Florida or federal law.

Contract – The written agreement between the Department and the awarded Bidder(s) resulting from this solicitation.

Contractor – A Vendor that enters into a Contract with the Department as a result of this procurement.

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

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

Electronic Data Processing Equipment (EDPE) – Property including but not limited to:

laptops, desktops, and other such data processing systems; electronic systems consisting of separately identifiable and removable component memory or control boxes that are attached to and control production machinery, but not the production machinery itself, and; equipment, component parts and related peripheral equipment, including air conditioning and fire protective equipment, used solely for data processing operations, in the care, custody and control of the Named Insured.

Attachment A

Scope of Work (SOW)

Eligible User – For the purposes of this solicitation Eligible Users are state universities as described by section 1000.21(6), Florida Statutes.

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

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

Named Insured – Entities listed in this Scope of Work section 4 and Attachment I and those added during the Policy Period.

Policy Inception - The effective date of the Insurance Policy.

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

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

Scientific / Medical (SCI-MED) Equipment - means equipment used for scientific and medical research, or used for medical diagnosis, in the care, custody and control of the Named Insured.

State – The State of Florida.

Total Insured Value (TIV)- The total insured value of all EDPE and SCI-MED Equipment owned and leased/rented/borrowed by Named Insureds at any moment in time on or after the Policy Inception.

Vendor Information Portal (VIP) – The State’s bidding system developed in accordance with section 287.042(3)(b)2., F.S. The Vendor Information Portal is accessible at https://vendor.myfloridamarketplace.com.

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

The following entities are the current Named Insureds for whom coverage is being sought:

AHCA Agency for Health Care Administration APD Agency for Persons with Disabilities DACS Department of Agriculture and Consumer Services DBPR Department of Business and Professional Regulation https://vendor.myfloridamarketplace.com/

Attachment A

Scope of Work (SOW)

DC Department of Corrections DCF Department of Children and Families DEM Department of Emergency Management DFS Department of Financial Services DMS Department of Management Services DMS-DOR Department of Management Services - Division of Retirement DOEA Department of Elder Affairs DOH Department of Health DOS Department of State DOT Department of Transportation FAMU Florida Agricultural and Mechanical University FGCU Florida Gulf Coast University FIU Florida International University FPU Florida Polytechnic University FSDB Florida School for the Deaf and Blind FSU Florida State University JAC Justice Administration Commission NCF New College of Florida OL-1 Office of the Legislature – Auditor General OL-2 Office of the Legislature – Economic and Demographic Research OL-3 Office of the Legislature - House of Representatives OL-5 Office of the Legislature - Office of Legislative Services OL-6 Office of the Legislature - Office of Program Policy Analysis and Government

Accountability OL-7 Office of the Legislative – Senate PSC Public Service Commission SBA State Board of Administration SCS Office of the State Courts UCF University of Central Florida UCF-NSTC University of Central Florida – NanoScience Technology Center (NSTC) UF University of Florida UF-Scripps University of Florida – Scripps (Herbert Wertheim UF Scripps Institute for

Biomedical Innovation & Technology) UNF University of North Florida USF University of South Florida USF-Byrd University of South Florida – Byrd Alzheimer’s Center and Research Institute USF-CAMLS University of South Florida – Center for Advanced Medical Learning and

Simulation (CAMLS) UWF University of West Florida

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

SOW.

5. Coverage Requirements The State’s current program provides for electronic data processing equipment for certain state agencies and eligible users. Insurance Policy coverage procured through this

Attachment A

Scope of Work (SOW) solicitation shall be the same or better as provided in Attachment I, Expiring Policy, as endorsed, and as set forth in this Scope of Work. Key coverage requirements are provided in the sections below; however, the full Policy requirements are located in the expiring Policy.

The Department reserves the right to request additions to or deletions from existing coverages or exposures stated in the Insurance Policy on behalf of the Named Insureds when deemed to be in the State's best interest in accordance with Section 7.7, Additions/Deletions.

5.1 Owned EDPE, SCI-MED Equipment & Media

Owned EDPE & SCI-MED shall be insured for “all risks” excluding those perils insured by the State Risk Management Trust Fund at replacement cost value (minus the assigned deductible). Owned EDPE & SCI-MED shall be insured for all other perils not provided by Attachment K, DFS-DO-852, Certificate of Property Coverage, sections B.1-B.9, covered causes of loss.

5.2. Leased EDPE, SCI-MED Equipment & Media

Named insured leased, rented, or borrowed EDPE and SCI-MED Equipment shall be insured for all risks at replacement cost value minus the assigned deductible. Refer to Attachment I, Expiring Policy, for full coverage details.

5.3 Locations of Covered Property

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

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

5.4 Current Policy Rates

All rates are to be per $100 of insured value and shall remain fixed for the full Policy term.

Rate de-escalation is permissible at any time during the Contract term. Rates for Policy Periods 1, 2, 3 and 4, if bid, will be as described in Contract Exhibit E, Broker’s submitted Price Sheet. The current policy rates are included in the following table:

Type of Equipment Annual Rate per

$100 TIV

EDPE Owned (incl. CAMLS) .0400

EDPE Leased .3300

SCI-MED Equipment Owned (including NSTC, Byrd and CAMLS) .0400

SCI-MED Equipment Leased .3300

Owned SCI-MED - University of Florida - Scripps .042303

See policy form 04-02-0859 (Ed. 6-99) 348510.1 (07/22) RATE CHARGE ENDT

Attachment A

Scope of Work (SOW)

5.5 Current Limits and Deductibles

Current policy limits and deductibles can be found on the Declarations page of Attachment I, Expiring Policy. Limits may require to be increased throughout the Policy Period as Named Insureds add EDPE and/or SCI-MED Equipment. Key limits and deductibles are noted below:

EDPE Property Limit of Insurance $297,676,923

Deductible See policy form 04-02-0859 (Ed. 6-99) 348510.2 (07/22)

DEDUCTIBLE PROV AMNDED

Scientific Equipment

Limit of Insurance $117,824,140 Deductible See policy form 04-02-0859 (Ed. 6-99) 348510.2 (07/22)

DEDUCTIBLE PROV AMNDED; and Form 04-02-0859 (Ed. 6-99) 326791.8 (07/21) SPECIAL

LIMITS OF INSURANCE

5.6 Named Insured Values and Rates

Attachment L, EDPE and SCI-MED values by Named Insured reported to the Department as of February 28, 2023. The awarded Contractor will receive an updated Attachment L upon award.

5.7 Valuation

Electronic data processing and scientific equipment are valued on a replacement cost basis unless the loss payment basis shown on the declarations page is actual cash value.

5.8 Historical Loss Information

The historical premium and loss experience information over the previous five years through January 11, 2023, is provided as Attachment J, Historical Loss Experience Report.

6. Premium Pricing

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

6.1 Premium and Deductible Adjustments

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

For additional Policy Periods, the Broker should have identified in its Insurer quotation the % loss ratio threshold which, if met or exceeded by the Named Insured during any Policy Period, will prompt the Insurer to reevaluate premium and/or deductible pricing for the next Policy Period. Any reevaluation of premiums and/or deductibles are subject to DMS written approval, must be adjusted equitably, and shall be based upon specific exposure risks and individual loss experience, to the extent market conditions allow. If Contractor anticipates adjustments

Attachment A

Scope of Work (SOW) to premium pricing, deductibles, or policy terms and conditions, Contractor shall provide the Department with written notice four (4) months prior to the Policy Period expiration to the Department’s Contract Manager

Notwithstanding Paragraph II of the Contract and Section 6.9 of the Special Contract Conditions, adjustments in premiums and/or deductibles do not constitute a change to the Contract requiring an amendment executed by both Parties. After the Department provides written approval of any premium and/or deductible adjustments, the Department will incorporate such changes directly into the Contract documents.

7. Broker/Underwriter Responsibilities

The Broker will market and secure an electronic data processing equipment insurance policy on behalf of the State of Florida and the Named Insureds, c/o the Department of Management Services, Division of State Purchasing, 4050 Esplanade Way, Suite 360, Tallahassee, FL 32399-0950.

7.1 Customer Service and Administration

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

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

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

7.2 Policy Administration

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

7.2.1 Communicate with the Insurer on all changes to the Policy requested by the

Department.

7.2.2 Provide endorsements for changes to the Policy schedule.

7.2.3 Forward premium payments to the Insurer, as appropriate.

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

7.3 Routine Communications

Attachment A

Scope of Work (SOW)

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

7.4 Broker License

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

7.5 Insurance Policy Conditions

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

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

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

7.5.3 The Broker and Insurer shall provide an Insurance Policy that conforms to Florida

Statutes 627.401 through to 627.443 as applicable, and with all other relevant and applicable statutes and regulations governing property and liability insurance.

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

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

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

7.6 Invoices for Insurance Premiums

In addition to the terms in Special Contract Conditions subsection 3.3, Payment Invoicing, the following applies to Contractor invoicing:

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

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

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

7.6.4 The Department’s Contract Manager may, but is not obligated to, assist the

Attachment A

Scope of Work (SOW)

Broker in securing these payments to the best of its ability.

7.7 Additions/Deletions

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

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

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

Upon acceptance by the Contactor and Underwriter, the Broker will invoice the Named Insured as indicated above.

7.8 Claims Settlement

Claims must be submitted by the Named Insured to the Broker as outlined in the Insurance Policy that results from this Contract. The Broker or Underwriter must notify the Department in writing at the time the Claim is submitted by a Named Insured during the Policy Period. The Broker must coordinate with the Named Insured filing the Claim on any details required by the Broker to ensure proper settlement.

The Broker is to track all Claims submitted and identify which Named Insured filed the Claim. Any settlement checks must be issued in the name of the Named Insured that filed the Claim, c/o State of Florida - Department of Management Services. Settlement checks are to include Policy name and number; the Named Insured who filed the Claim; date of loss; total Claim filed, deductible, check number, and check amount.

The Broker will provide Claim settlement checks directly to the Named Insured filing the Claim whenever possible, and the Broker will provide a copy of the settlement check to the Department's Contract Manager.

7.9 Broker Commission

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

7.10 Independent Broker

The Broker and its employees, agents, representatives, and subcontractors are not employees or agents of the Department and are not entitled to the benefits of State employees. The Department will not be bound by any acts or conduct of the Broker or its

Attachment A

Scope of Work (SOW) employees, agents, representatives, or subcontractors. The Broker agrees to include this provision in all of its subcontracts under the Contract.

7.11 Insurer Serviceability

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

7.12 Insurance Policy Cancellation

In addition to the requirements of Special Contract Conditions subsection 3.9, Return of Funds, the following applies to cancellation of the Insurance Policy:

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

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

9. Ad-Hoc Report The Department reserves the right to require additional information pertaining to the Contract.

10. Contract Transition

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

11. Other Fees and Charges

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

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

Attachment A

Scope of Work (SOW)

Fees or charges not indicated on Attachment B, Price Sheet, unless provided by law, are prohibited.