FBO Special Notice.pdf

FBO Special Notice

The Federal Retirement Thrift Investment Board (FRTIB), headquarters located at 77 K Street, NE, Washington, DC announces the sole source contract award to Marsh & McLennan for the Agency’s insurance services to include Commercial Liability & Umbrella, Fiduciary and ERISA Bond policies with a total value of $393,902.00. This contract was awarded with authority granted under the Federal Employees Retirement System Act of 1986, 5 U.S.C. § 8474. The contract supports the Agency’s critical infrastructure in which to house the vast majority of its Federal staff, and support contractors. The combination of staff and on-site contractors are needed to support the daily operations of the TSP .The Agency solicits these insurances to provides liability coverage FRTIB headquarters and additional satellite sites/call centers, mitigate risks and irreputable harm. In addition, it is stated in our lease agreement with 77K (Brookfield) that proper insurance coverage is required in order to not violate any conditions of the lease. Failure to maintain coverage could potentially cause an increase in rental amount for higher insurance rates imposed by the property manager for replacement coverage as defined in the 77K Basic Lease, Insurance, Section 13.1, pg.34.

Fiduciary Insurance is necessary to protect the individuals or entities of the TSP who oversee employee benefit plans from claims in case of mismanaged plans in breach of fiduciary duty. Commercial Insurance is necessary to help the Agency cover any costs associated with property damage and liability claims. Not having commercial insurance would not only affect Agency headquarters but additional satellite sites/call centers. ERISA Bond Insurance is necessary to protect the Agency from directly paying out of pocket if there is a loss as a result of fraud, dishonesty, theft, or any form of criminal act. Insurance coverage is inevitable in order to protect the financial, physical, and cyber assets of the Agency.

FRTIB is renewing the annual premiums for the Agency insurances for the 12-month period of performance with the previous vendor. The 12-month period of performance is the minimum amount of time that we can obtain these insurance services. The insurance industry does not permit for the use of option periods or a six (6) month option period to extend services. There are extenuating circumstances that preclude competition at this time and FRTIB is only awarding these contracts for 12-months (1 year) which is the absolute minimum amount of time. FRTIB is procuring a new contract for insurance brokerage services to include Commercial Liability, ERISA Bond, and Fiduciary insurances. This procurement will include option periods to compete all annual renewal premiums for the Agency’s insurance requirements through an insurance brokerage. Annual market research will still be conducted to ensure that the rates provided are comparable to the rates of other insurance services within proximity to the Agency. The Agency’s acquisition strategy to support the planned award of insurance services is to award a single-year sole source contract for each of the following requirements to ensure services are maintained and completed in October and December 2021.

Previous Contract Number

Contract Title Period of Performance

Service Provider

New Contract Number

Amount

TIB-2020-P-0003 Commercial Liability & Umbrella Policy

10/1/2019 – 10/1/2020

Marsh & McLennan

TIB-2021-P-0003 $212,519.00

TIB-2020-P-0017 Fiduciary Liability Policy

12/14/2019- 12/14/2020

Marsh & McLennan

TIB-2021-P-XXXX $172,300.00

TIB-2019-P-0040 ERISA Bond Policy 6/15/2019 – 12/14/2020

Marsh & McLennan

TIB-2021-P-XXXX $9,083.00

The Marsh & McLennan insurance services contract will replace the previous contracts identified above. FRTIB is currently procuring a new contract for insurance brokerage services to include option periods of performance to compete all annual renewal premiums for the Agency’s insurance requirements. Until it is implemented, the Agency’s focus is to stabilize and minimize any changes to its current insurance services to avoid jeopardizing the new procurement and a lapse in services.