Reinsurance_SOW_9.2.16.pdf

Export-Import Bank of the United States (EXIM Bank)

Risk Management Analytical Services for the Office of the Chief Financial Officer (OCFO)

Statement of Work dated 9/2/16

1. INTRODUCTION

This Statement of Objectives serves to outline and specify the Export-Import Bank's (EXIM) requirement for Risk Management Analytical Services. The end objective is to issue a multiple award contract with a reinsurance broker and bank that work with the reinsurance and capital markets to assist the Bank in the creation of a pilot program for risk sharing. EXIM has been directed by Congress to explore risk sharing through the Bank’s current Charter, which states:

SEC. 51008. PILOT PROGRAM FOR REINSURANCE.

(a) IN GENERAL

Notwithstanding any provision of the Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.), the Export-Import Bank of the United States (in this section referred to as the ‘‘Bank’’) may establish a pilot program under which the Bank may enter into contracts and other arrangements to share risks associated with the provision of guarantees, insurance, or credit, or the participation in the extension of credit, by the Bank under that Act.

(b) LIMITATIONS ON AMOUNT OF RISK-SHARING

The aggregate amount of liability the Bank may transfer through risk-sharing pursuant to a contract or other arrangement entered into under subsection (a) may not exceed $1,000,000,000. The aggregate amount of liability the Bank may transfer through risk-sharing during a fiscal year pursuant to contracts or other arrangements entered into under subsection (a) during that fiscal year may not exceed $10,000,000,000.

EXIM is seeking risk management analytical services regarding risk sharing structures in order to determine if there is an opportunity to economically transfer some of the risks associated with parts of the Bank’s portfolio to the private markets.

1.1 Goal & Skill Set Needed

The Bank is looking for services from the insurance, reinsurance, and capital markets in order to assess which risks can effectively be transferred and in what form. The goal is to execute risk sharing for risk where it is feasible and clarify their commercial pricing. To achieve this, the Contractor shall excel in the following five areas:

1. Risk sharing analytics (insurance, reinsurance and/or capital markets)

2. Creativity

a. Creating risk sharing structures taking into account the organization’s goals

b. How can the reinsurance and capital markets work in conjunction

3. Transparency of communication between all parties involved

4. Knowledge of EXIM financing, aviation financing, and/or structured financing

5. Ability to develop risk sharing structures and place those structures as evidenced through past experience or current capabilities

2. SCOPE

The Contractor shall provide subject matter expertise in terms of developing risk sharing structures, the placement of those structures in the applicable market, evaluation of pricing from the applicable market, and support during the lifetime of the risk sharing agreement.

3. CONFIDENTIAL TREATMENT OF SENSITIVE INFORMATION

In accordance with the Risk Management Analysis Services Conditional Access to Sensitive but Unclassified Information Non-disclosure Agreement by and between the parties (the "NDA") the Contractor shall guarantee strict confidentiality of the information/data that it is provided by the Government during the performance of the contract. The Government has determined that the information or data that the Contractor will be provided during the performance of the contract is of a sensitive nature. Disclosure of the information/data, in whole or in part, by the Contractor can only be made after the Contractor receives prior written approval from the Contracting Officer other than as provided for in the NDA.

4. Deliverables

The Project shall consist of the following deliverables (the "Deliverables"):

4.1 Risk Sharing Structure(s) Refinement

The Contractor shall conduct a thorough analytical modeling exercise of EXIM’s portfolio to refine the proposed risk sharing structures identified in the Contractor’s offer. These different structures will be presented to EXIM and will contain a detailed analysis on the structure as well as potential non-binding pricing related to those structures. The presentation of structures will be in both PowerPoint and in Word format.

The Contractor shall accommodate one round of reasonable requests for amendments from EXIM Bank before delivering a final draft. If no requests are received, by email, from EXIM Bank within 7 days of delivery of the draft the Contractor may continue with the Project on that basis.

4.2 Risk Sharing Placement

After one risk sharing structure is selected by EXIM for the pilot program, the Contractor will work with EXIM on developing the offering to be placed in the market. The Contractor shall then assist EXIM in the placement of offers from the reinsurance, insurance or capital markets.

4.3 Risk Sharing Offer Evaluation and Execution

Once offers are received from the placement, the Contractor shall assist in the evaluation of the offers.

The evaluation of offers shall consist of an assessment of the Contractor’s professional opinion as to whether the offer represents the best value EXIM can expect for the given structure chosen. If an offer is acceptable to EXIM, the Contractor shall assist the Bank in the execution of the agreement as necessary.