Final_RFP_676_2500000025_1_SO_FORM.PDF

Document ID: RFP 676 2500000025 Page: 1

Commonwealth of Kentucky

SOLICITATION

Modification: No Version #:

TITLE: Market Conduct Analyst/Examiner

Date Issued:

07/26/2024 Record Date:

07/19/2024

Solicitation Closes Date:

08/23/2024 Time:

14:00

Solicitation No:

RFP 676 2500000025

Online Bidding Prohibited: Yes For Information Call:

Beth Lynn 502-564-6154

Bid Receiving Location:

Department of Insurance

500 Mero Street, 2nd Floor

Frankfort KY 40601

Vendor Customer Number:

Vendor Name:

Phone Number:

Fax Number:

Email Address:

Ordering

Address:

City, State, Zip:

Contact Name:

Contact Email:

Contact Phone Number:

Payment

Address:

City, State, Zip:

Contact Name:

Contact Email:

Contact Phone Number:

Ownership Type

__ Sole Proprietorship __ Partnership __ Corporation __ Other_________________________

SIGNATURE OF AUTHORIZED AGENT IS REQUIRED UNLESS RESPONSE

IS SUBMITTED ELECTRONICALLY. FAILURE TO SIGN SHALL RENDER

THE BID INVALID.

Signature X_________________________________________ FEIN#____________________ Date____________

All offers subject to all terms and conditions contained in this solicitation.

Document ID: RFP 676 2500000025 Page: 2

Line Items

Commodity Group: Default

Line CL Description Quantity UOM Unit Cost Line Total or Contract Amnt

1 Market Conduct Examiner

Comm Code Comm Description Manufacturer Model # Manuf Part #

946 FINANCIAL SERVICES

Extended Description Market Conduct Analyst/Examiner

Shipping Information Department of Insurance

500 Mero Street, 2nd Floor

Frankfort KY 40601

Billing Information Department of Insurance - Po Box 517

PO Box 517

Frankfort KY 40602-0517

Document ID: RFP 676 2500000025 Page: 3

Submission Checklist

The following items will be required to be submitted with bid:

Item Prior Experience with Agency Previous Experience and Technical Expertise Qualifications, Education, Licenses and Certification Oral Presentations-If Required

Revised April 2024

PROPOSAL SUBMISSION CHECKLIST

The vendor MUST include the following with the proposal submission.

If the items highlighted below are not submitted with the proposal submission, the Commonwealth MUST deem the proposal non-responsive and SHALL NOT consider for award.

All other items MUST be submitted prior to award.

_____ SIGNED AND COMPLETED SOLICITATION –Section(s) 8.00 and 8.10 of this RFP

(not required if submitting electronically)

_____ *PROPOSED SOLUTION (TECHNICAL) UNDER SEALED COVER AND BY

CLOSING DATE --

Section(s) 8.00 and 8.10 of this RFP

_____ *PROPOSED SOLUTION (COST) UNDER SEALED COVER AND BY CLOSING

DATE --

Section(s) 8.00 and 8.10 of this RFP

_____ TRANSMITTAL LETTER – Section 8.20 of this RFP

_____ PROOF OF REGISTRATION WITH SECRETARY OF STATE BY A FOREIGN

ENTITY -- Section 9.00 of the Personal Service Contract Terms and Conditions of this

RFP

_____ REQUIRED AFFIDAVIT(S) – Section 8.20 of this RFP

*The Commonwealth defines SEALED as “a closure that must be broken to be opened and that thus reveals tampering” (Merriam-Webster Dictionary, https://www.merriam-webster.com/ dictionary/seal

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2500000025 Final Market Conduct Analyst/Examiner Total Pages: 27 https://www.merriam-webster.com/dictionary/seal https://www.merriam-webster.com/dictionary/seal

REQUEST FOR PROPOSAL

FOR

PERSONAL SERVICE CONTRACT

Public Protection Cabinet/Department of Insurance Market Conduct Analyst/Examiner

RFP-676-2500000025

This document constitutes a Request for Proposals (RFP) for a Personal Service Contract from qualified individuals and organizations to furnish those services as described herein for the Commonwealth of Kentucky, Public Protection Cabinet/Department of Insurance (Department).

Offerors are advised that any contract resulting from this RFP must comply with all applicable provisions of KRS 45A and KRS 12.210 prior to becoming effective.

A contract, based on this RFP, may or may not be awarded. Any contract award from this RFP is invalid until properly approved and executed by the Finance and Administration Cabinet and filed with the Legislative Research Commission, Government Contract Review Committee.

1.0 Purpose and Background

This RFP is being issued for the purpose of procuring a Contractor to perform the services of a Market Conduct Analyst/Examiner. This position shall conduct market conduct examinations of insurance companies or other entities/persons regulated by this agency and authorized to transact the business of insurance in the Commonwealth of Kentucky. Additionally, this position will analyze data for the purpose of market conduct examinations of insurance companies and other regulated entities (by exam or continuum), to scrutinize the business practices in an effort to determine compliance with the Kentucky Insurance Code.

2.00 Scope of Work

The Department is contracting for this position to assist in or conduct market conduct examinations and/or analysis of insurance companies or other entities/persons regulated by this agency and authorized to transact the business of insurance in the Commonwealth of Kentucky.

Examiner duties shall include the examination of the affairs, transactions, business, accounts, records, documents, and files of insurers or other entities/persons regulated by the Department and authorized to transact business in the Commonwealth of Kentucky. The examinations shall be conducted in accordance with the standards and guidelines established by the National Association of Insurance Commissioners (NAIC) and the Department.

Analyst duties shall include the following:

• Request data and other information from entities/persons subject to examination or investigation based in part on the standardized data requests established by the NAIC.

• Gather electronic information and data from the entities/persons subject to examination or investigation.

• Communicate with the entities/persons subject to examination or investigation to verify that the data to be submitted is properly formatted and in accordance with the standardized data requests.

• Use Audit Command Language (ACL) software, and/or other designated Department resources, to convert data into a format conducive to analysis.

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• Use ACL software, and/or other designated Department resources, to analyze the market data received from the entities subject to examination or investigation for the purposes of assisting market conduct examiners in conducting an efficient and informative market conduct examination.

• Use ACL software, and/or other designated Department resources, to extract file samples to be compiled by the entity/person subject to examination or investigation and submit the samples to the examiner in charge of the examination.

During an examination or investigation, the Analyst in part will utilize ACL software, and/or other designated Department resources, to analyze data to determine market trends or general business practices of the specific entities or persons subject to examination or investigation. An examination or investigation may require an analysis of the regulated entity's/person’s data related to company operations; producer licensing; underwriting and rating; complaints, appeals, and grievances; claims settlements; marketing and sales information; and the collection and payment of taxes. This analysis shall be for the purposes of determining compliance with applicable insurance statutes and regulations.

The Analyst shall also be responsible for completing analysis of specific company practices and the insurance market in Kentucky, identifying market trends or problematic companies that should be targeted for examination.

In some instances, the Analyst may also be reassigned to act as Insurance Examiner or Examiner in Charge on an examination. As such, the Analyst’s duties shall include the examination of the affairs, transactions, business, accounts, records, documents, and files of insurers or other entities/ persons regulated by the Department and authorized to transact business in the Commonwealth of Kentucky. The examinations shall be conducted in accordance with the standards and guidelines established by the NAIC and the Department.

The Department schedules market conduct examinations of authorized insurers as often as reasonably necessary. An examination may include but shall not be limited to: a review of the regulated entity’s/person’s operations; producer licensing procedures; underwriting and rating practices; complaint, appeals, and grievance handling; claims settlement practices; marketing and sales practices; and the collection and payment of taxes. The Analyst/Examiner shall be required to examine one or more of these aspects of a regulated entity’s or person’s business practices to determine compliance with all applicable insurance laws.

The Analyst/Examiner shall assist with the preparation of detailed examination reports for each regulated entity or person examined. The report shall, at a minimum, include a statement of tests applied, a summary of examination findings and recommendations, and any other information necessary to give a full and complete report to the Department of an examined entity’s or person’s insurance business practices. The written report shall comply with the minimum requirements set by the Department with regard to content, thoroughness, and format.

The Analyst/Examiner may be required to testify in formal proceedings that may result from examinations.

An eligible Offeror is one who is competent and has the necessary education, experience, and special training to perform the responsibilities of an Analyst/Examiner. In accordance with KRS 304.2-280, due consideration is given to the standards and qualifications of an Analyst/ Examiner as recommended by the NAIC. Only those Offerors qualified as stated below shall be eligible for a Contract to perform the services as an Analyst/Examiner. Proof is mandatory and subject to verification. Any misrepresentation regarding an Offeror’s qualifications may result in disqualification.

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Market Conduct Analyst – The Market Conduct Analyst (Analyst) shall perform data analysis as needed for market conduct examinations and insurance marketplace oversight. Advanced knowledge of the Microsoft Office package and functional knowledge of ACL is required.

The Analyst must have an MBA, or the designation of Accredited and/or Certified Insurance Examiner (AIE/CIE) by the Insurance Regulatory Examiners Society (IRES), or a substantially similar designation that includes a continuing education element as a requirement to maintain the designation. A bachelor’s degree from an accredited college or university and three (3) years insurance experience (either regulatory or for a company) is required.

Examiner in Charge (EIC) – The EIC is responsible for oversight of the market conduct examination and supervision of other market conduct examiner(s) assigned to the exam. An EIC must have a designation of Accredited and/or Certified Insurance Examiner (AIE/CIE) by the Insurance Regulatory Examiners Society (IRES) and hold a bachelor’s degree from an accredited college or university. Ten (10) years insurance experience (either regulatory or for a company) may be substituted for the designation and bachelor’s degree.

Senior Examiner – The Senior Examiner assists the Chief Examiner and/or the EIC with market conduct examinations and must have an MBA, or the designation of Accredited and/or Certified Insurance Examiner (AIE/CIE) by the Insurance Regulatory Examiners Society (IRES), or a substantially similar designation that includes a continuing education element as a requirement to maintain the designation. A bachelor’s degree from an accredited college or university and five (5) years insurance experience (either regulatory or for a company) is required.

Insurance Examiner – An Insurance Examiner assists the Chief Examiner and/or the EIC with market conduct examinations and must have a designation of Accredited and/or Certified Insurance Examiner (AIE/CIE) by the Insurance Regulatory Examiners Society (IRES), or a substantially similar designation that includes a continuing education element as a requirement to maintain the designation. A bachelor’s degree from an accredited college or university and three (3) years insurance experience (either regulatory or for a company) is required.

Associate Examiner – An Associate Examiner assists the Chief Examiner and/or the EIC with market conduct examinations and must hold a bachelor’s degree from an accredited college or university. Two (2) years insurance experience (either regulatory or for a company) may be substituted for a bachelor’s degree.

Right of Ownership to Work Products

The selected Offeror, upon the award of a Contract, shall submit to the Department any and all records, reports, documents, exhibits, data and other material related to the services for which the Department has contracted, and which have been obtained or prepared by the Offeror in connection with the performance of the services for which the Department has contracted. The Department shall own any records, reports, documents, exhibits, data, source code, object code, work papers, novel work process or methodology, test data, pleadings, and other documentation generated as a result of performance by the Offeror of the services for which the Department has contracted, unless the Offeror demonstrates, in writing, that the work was done prior to the effective date of the Offeror’s contract with the Department, or is otherwise excluded, and the Department agrees to the exclusion in writing.

Upon termination of a contract, the Offeror recognizes that the Department reserves the right to limit the use of any work product, knowledge, information, documents, and materials developed, created, or that can be recreated by the Offeror as a result of performance by the Offeror of the services for which the Department has contracted.

Contract Assignment

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The Offeror shall not assign a contract in whole or in part or any payment arising therefrom without the prior written consent of the Department. Any purported assignment without prior written consent of the Department is void.

If the Offeror is a corporation, proprietorship, or an entity other than an individual, only the principal of the entity shall perform the services outlined in this RFP and the contract, unless the Commissioner authorizes the performance of those services by a person other than the principal. If the Commissioner authorizes the performance of the services outlined in this RFP and the contract by a person other than the principal, all terms of the contract shall apply, and the principal shall remain responsible for compliance with the terms and conditions of the contract. The Department reserves the right to reject any assignment to any entity for any reason.

Subcontractors

Unless agreed to by the Department in writing, Offeror shall make no subcontract with any other party to fulfill the obligations outlined in the Scope of Work section of this RFP.

Spending Limit/Change of Project Scope

If at any point after a contract has been awarded the Offeror concludes that the fees or travel expenses will exceed the per diem/hourly limits permitted by the contract, the Offeror shall promptly discuss the matter with the program contact. The Department may consider the location of the exam, the cost of living at the location of the exam, and any other relevant factors in determining whether a rate adjustment may be necessary for the assigned project.

Travel

Work will be performed primarily from the Analyst/Examiner’s residence, but some limited travel on the part of the Offeror may be required. Offerors submitting a response to this RFP are assumed to be willing to comply with the travel requirements.

a. Travel to and from exam site:

At the beginning of each examination, if travel is required, the Offeror may invoice for one-half day (3.75 hours) of fees for each 200 miles traveled from the Offeror’s residence to the examination site. At the completion of all examination work, the Offeror may invoice for one-half day of fees for each 200 miles traveled from the examination site to the Offeror’s residence. At no time may the Offeror invoice for more than two days travel to the examination site at the beginning of the examination, or two days travel after the completion of all examination work, unless additional fees for such travel are approved in writing by the Department. The Offeror must travel at least 200 miles in order to invoice for said travel. Mileage may be confirmed by the Department using the Rand McNally website (www.randmcnally.com).

b. “Turn-Around Days”

If travel is required, accommodation will be allowed for “turn-around” days, as follows: Should the Offeror be continuously assigned to an examination in excess of 200 miles from the Offeror’s residence, the Offeror will be allowed to invoice for services for up to two days per month for travel time to and from the worksite for the duration of the audit, in addition to the allowable travel time at the beginning and completion of the audit. Any such travel day shall be either a Monday immediately following a travel weekend, a Friday immediately preceding a travel weekend, or one-half day on Friday and one-half day on Monday. Limited exceptions for turn-around travel days other than on a Monday or Friday may be made at the discretion of the Department, for instance, where a holiday falls on a Monday or Friday. The Offeror will be required to submit a signed statement on a form required by the Department when the Offeror bills for a turn-around travel day.

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Training

The Department may require the Offeror to attend classes, courses, or seminars that may improve service quality. The Offeror may submit an invoice for up to 40 hours training per fiscal year in addition to the total days of service otherwise permitted under the contract at the daily rate allowed under the contract according to the Offeror s role. In no event shall the rate to attend a class, course, or seminar exceed the rate allowable for an Insurance Examiner traveling 201 or more miles from the Offeror’s residence. The cost of any registration or tuition fees, and any other expenses related to attending a class, course, or seminar, shall be the responsibility of the Offeror. In addition, the Offeror shall be permitted to bill the Department for one-half day (3.75 hours) travel to and one-half day travel from the training location. The Commissioner may, in his or her discretion, approve additional training in excess of the allotted 40 hours should the Commissioner determine that such training is in the best interests of the Department. The Commissioner may also approve an alternative hourly rate depending on the type of training and the training location. Approval for additional training or an alternate hourly rate shall be in writing upon written request from the Offeror.

Taxes

The Offeror shall be responsible for all applicable federal, state, and local income taxes, which shall not be reimbursed by the Department.

Insurance

The Offeror shall maintain such liability or other insurance as is reasonably necessary in Offeror’s business judgment to provide adequate coverage against losses and liabilities attributable to acts and/or omissions of Offeror in the performance of Offeror’s duties under a contract. The Offeror shall determine whether and in what amounts to purchase such insurance using sound business judgment considering its financial circumstances, the extent of the risk, and the availability of coverage at commercially reasonable rates. Offeror shall provide the Department with evidence of such coverage upon request.

The Department shall neither provide nor reimburse the Offeror for liability, workers’ compensation, or other insurance coverage.

3.00 Evaluation Criteria

The Department shall conduct a comprehensive, fair, and impartial evaluation of all proposals.

The Department may reject any proposal that is incomplete or in which there are significant inconsistencies or inaccuracies. The Department reserves the right to reject all proposals.

The Department has established a Proposal Evaluation Committee to review, evaluate and verify information submitted by the Offeror.

Each Offeror 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 Offeror.

The Department shall evaluate the proposals by assigning scores as indicated.

Technical Proposal Evaluation

Criteria Maximum Points Possible

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Prior Experience with Agency – The Offeror needs to provide a detailed narrative stating whether they have had a prior or current employment or contractual relationship with the Department, and if applicable, the nature of any prior or current relationship with the Department (e.g., employee, contractor, non-merit appointment, etc.), dates of service, duties and responsibilities during each term of service, the circumstances of each termination of service, and an explanation for any violation or break of a contract provision during each prior term of service.

300 points

Previous Experience and Technical Expertise – The Offeror needs to provide a detailed narrative describing their past work experience and technical expertise, including but not limited to: insurance regulatory experience; experience auditing or examining insurance entities either on behalf of a regulatory agency or otherwise;

expertise in utilizing software programs and databases such as Microsoft Office, ACL, and NAIC databases; and analytical projects involving the synthesis of data into meaningful information.

200 points

Qualifications, Education, Licenses, and Certification

– The Offeror needs to submit a resume (including, but not limited to post-secondary schools attended and dates of attendance, relevant specialized training courses and dates of completion, professional degrees and/or certificates attained and dates of attainment, and all licenses held and states of licensure) for each person designated to provide services under a contract.

500 points

Maximum Points Possible 1,000 points

Oral Demonstration/Presentation Evaluation, if required

Criteria Maximum Points Possible

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Oral Presentations/Demonstrations

The Department reserves the right to require oral presentations/demonstrations to verify or expand on the Technical or Cost Proposals.

Oral presentations/demonstrations may be conducted through videoconferencing or by conference call, if it is in the best interest of the Department to do so.

This is the opportunity for the vendor to present and demonstrate the solution and to answer questions or to clarify the understanding of the evaluation committee in accordance with the requirements of this RFP.

The Department reserves the right to reject any or all proposals in whole or in part based on the oral presentations/demonstrations.

If required, the top 03 highest ranking vendors may be invited. Scheduling will be at the discretion of the Department. The Department reserves the right not to require oral presentations/demonstrations

100 points

Maximum Points Possible 100 points

Total Proposal Evaluation

Criteria Maximum Points Possible Technical Proposal 1,000

Oral Demonstrations/Presentations, if required 100

MAXIMUM POINTS POSSIBLE

1,100

Payment The Department shall pay to the selected Offeror, on an hourly basis, the fee amount specified below for services performed in accordance with the contract. One day of services shall consist of a minimum of seven and one half (7.5) working hours.

In the event the Offeror is requested or required to provide services in increments of less than a full day, the Department may pay the Offeror in hourly increments or in half-hour increments. The half hour rate shall be one-half of the hourly rate.

Market Conduct Analyst PER HOUR Home Office and within 60 miles of Offeror’s residence

$64.00

61-200 miles from Home Office or Offeror’s residence

$81.00

201 + miles from Home Office or Offeror’s residence $92.00 High-Rate Area $103.00

Examiner in Charge PER HOUR

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Home Office and within 60 miles of Offeror’s residence

$65.00

61-200 miles from Home Office or Offeror’s residence

$83.00

201 + miles from Home Office or Offeror’s residence $93.00 High-Rate Area $105.00

Senior Examiner PER HOUR Home Office and within 60 miles of Offeror’s residence

$64.00

61-200 miles from Home Office or Offeror’s residence

$81.00

201 + miles from Home Office or Offeror’s residence $92.00 High-Rate Area $103.00

Insurance Examiner PER HOUR Home Office and within 60 miles of Offeror’s residence

$62.00

61-200 miles from Home Office or Offeror’s residence

$79.00

201 + miles from Home Office or Offeror’s residence $89.00 High-Rate Area $101.00

Associate Examiner PER HOUR Home Office and within 60 miles of Offeror’s residence

$43.00

61-200 miles from Home Office or Offeror’s residence

$59.00

201 + miles from Home Office or Offeror’s residence $68.00 High-Rate Area $79.00

The Internal Revenue Service published special per diem rates (CONUS) shall be utilized to determine if an examination is performed in a high-rate area. For the purposes of this RFP and any subsequent contract entered into as a result of this RFP, “Home Office” shall mean the Kentucky Department of Insurance located at 500 Mero Street, Frankfort, Kentucky, or any subsequent address to which the Department may be relocated. Per diem/hourly rates for each examination shall be determined based on the distance of the examination from the Home Office or the Offeror ’s residence, whichever is less. The Commissioner may within his/her sole discretion, consider the travel distance between the examination location and the Offeror’s residence address to determine the per diem/hourly rates applicable to an assigned examination. Any rate charged based on the Offeror’s residence rather than the Home Office shall be approved, in writing, by the commissioner.

Rates are inclusive of all expenses (i.e., travel expenses, etc.). Absences for any reason shall not be compensated. If the Offeror is assigned to an examination and available for work on any regular business day, or portion thereof, that the company has closed for business, the Offeror’s fee shall be allowed for that particular day, or portion thereof.

The Offeror shall work a schedule approved by the Department in advance of the start of each examination. Services performed under the terms of the contract shall not be more than 1950 hours per fiscal year.

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The Offeror shall be available to provide examination services upon assignment by the Department.

Submissions to the RFP shall indicate if the Offeror will not be available to provide services consistent with a contract for 1950 hours. The Department does not guarantee that the Offeror will be assigned work for any specified number of days.

4.00 Schedule of RFP Activities

The following schedule presents the major activities associated with the RFP distribution, written questions and proposal submission. The Department reserves the right at its sole discretion to change the Schedule of Activities, including the associated dates and times.

Release of RFP 07/26/24

Written Questions due by: 2:00 PM 08/02/24

Anticipated Commonwealth Response to Written Questions 08/14/24

Proposals Due by: 2:00 PM 08/23/24

All bidders are cautioned to be aware of the security in the Mayo-Underwood Building located at 500 Mero Street, Frankfort, Kentucky. All bids shall be time stamped in the Department of Insurance no later than the due date and time defined in this Solicitation. In person or courier delivered bids in response to this Solicitation shall be delivered to the Department of Insurance. Delays due to building security checks shall not be justification for acceptance of a late bid.

*NOTE: ALL TIME REFERENCES ARE TO THE EASTERN TIME ZONE.

5.00 Offeror’s Conference

Not Applicable

6.00 Point of Contact

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

Beth Lynn Kentucky Department of Insurance Administrative Services 500 Mero Street – 2 SE 11 Frankfort, KY 40601

(502) 785-5221 Beth.Lynn@ky.gov

From the issue date of this RFP until a contractor(s) is selected and the selection is announced, Offerors shall not communicate with any other Department staff concerning this RFP.

7.00 Questions Regarding this RFP

Questions must be submitted in writing to the Agency Contact. The Department will respond to salient questions in writing by issuing an Addendum to the Solicitation. The Addendum shall be posted to the Department’s eProcurement page.

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8.00 Proposal Submission

Each qualified Offeror shall submit only one (1) proposal. Alternate proposals shall not be allowed. Failure to submit as specified shall result in a non-responsive proposal.

The Offeror should complete the "Vendor" box on the face of the solicitation. An authorized representative of the vendor shall sign where indicated on the face of the solicitation.

Acknowledgment of Addenda

It is the Offeror’s responsibility to check the web site for any modifications to this solicitation.

Offerors are encouraged to acknowledge each addendum by signing and submitting the latest addendum with their response. However, signing the face of the solicitation as indicated above constitutes the vendor’s acknowledgement of an agreement to be bound by the terms of all addenda issued.

Failure to specifically acknowledge addenda will not excuse the vendor from adhering to all changes to the requirements of the solicitation set forth therein nor provide justification for any pricing changes.

All submitted technical and cost proposals shall remain valid for a minimum of six (6) months after the proposal due date.

8.10 Format of Response

Hard Copy Proposals

Proposals shall be submitted in two (2) parts: The Technical Proposal, and the Proprietary Information.

1. The Technical Proposal should include one (1) marked original hard/paper copy technical and three (3) marked technical thumb/flash drives (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos.

2. Any Proprietary Information should include one (1) marked original hard/paper copy proprietary and three (3) marked proprietary data thumb/flash drives (in Microsoft Word, Microsoft Excel, or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos.

Proposal shall be submitted to the Agency Contact. The outside cover of the package containing the technical proposal shall be marked:

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RFP-676-2500000025

TECHNICAL PROPOSAL

Public Protection Cabinet Department of Insurance Consumer Protection Division Market Conduct Branch

If applicable, the outside cover of the package containing the proprietary shall be marked:

RFP-676-2500000025

PROPRIETORY PROPOSAL

Public Protection Cabinet Department of Insurance Consumer Protection Division Market Conduct Branch

All proposals must be received no later than 2:00 pm, August 23, 2024.

Pricing shall only be provided in the Cost Proposal. DO NOT SUBMIT ANY PRICING

INFORMATION IN THE TECHNICAL PROPOSAL.

All submitted Technical and Cost Proposals shall remain valid for a minimum of six (6) months after the proposal due date.

8.20 Format of Technical Proposal

The Technical Proposal must be arranged and labeled in the manner set forth below.

Transmittal Letter – a Transmittal letter shall be submitted on Offeror’s letterhead and signed by an agent authorized to bind the Offeror. The Transmittal letter shall include the following:

a. A statement that deviations are included, if applicable.

b. A statement that proprietary information is included, if applicable.

c. A statement that, if awarded a contract as a result of this Solicitation, the Offeror shall comply in full with all the requirements of the Kentucky Civil Rights Act, and shall submit all data required by KRS 45.560 to 45.640.

d. A sworn statement that, pursuant to KRS 11A.040, that Offeror has not knowingly violated any provisions of the Executive Branch Code of Ethics.

e. A statement certifying that the price in this proposal was arrived at independently without collusion, consultation, communication, or agreement as to any matter relating to such prices with any other Offeror or with any competitor.

f. A statement affirming that the Offeror is properly authorized under the laws of the Commonwealth of Kentucky to conduct business in this state and will remain in good standing with the Office of the Kentucky Secretary of State for the duration of any awarded contract resulting from this Solicitation.

g. The name, address, telephone number and email address and website address, if available, of the contract person to serve as a point of contact for day-to-day operations.

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h. Subcontractor information to include the name of the company, address, telephone number and contact name, if applicable.

i. Foreign entity’s organization number issued by the Secretary of State in a certificate of authority or a statement of foreign qualification, if applicable.

Completed and Signed Solicitation and Addenda – An authorized representative MUST complete and sign the Solicitation form and include the following:

a. “Vendor” box and “Payment” box should be completed.

b. Vendor shall indicate ownership type.

c. Vendor shall provide “FEIN” if applicable.

d. Vendor shall provide date the form is completed and signed.

e. Signed face of the most recent Addenda, if applicable.

Signed and Notarized Required Affidavit for Bidders or Offerors - available at the following link:

https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx.

Signed and Notarized Required Affidavit for Bidders, Offerors and Contractors Claiming Resident Bidder Status – if applicable. Available at the following link:

https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx.

*Offerors not claiming Resident Bidder Status need not submit this affidavit.

Signed and Notarized Required Affidavit for Bidders, Offerors and Contractors Claiming Qualified Bidder Status – if applicable. Available at the following link:

https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx.

*Offerors not claiming Qualified Bidder Status need not submit this affidavit.

Response to the Technical Portion of the RFP – Please provide a detailed response to the technical requirements outlined in the Evaluation Criteria. No cost information shall be provided in the technical portion.

8.30 Format of Cost Proposal

Not Applicable

8.40 Certification Regarding Debarment and Suspension

In accordance with Federal Acquisition Regulation 52.209-5, the Offeror shall certify, by signing the Solicitation, that to the best of its knowledge and belief, the Offeror and/or its Principals is (are) not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any state or federal agency.

For the purposes of this certification, “Principals”, means officers, directors, owners, partners, and persons having primary management or supervisory responsibilities within a business entity (e.g., general manager, plant manager, head of subsidiary, division, or business segment, and similar positions.

9.00 Rules of Procurement

To facilitate this procurement, various rules have been established. These are described in the following paragraphs.

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2500000025 Final Market Conduct Analyst/Examiner Total Pages: 27 https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx

Offerors should review and comply with the General Conditions and Instructions for Solicitation/ Contract listed under “Response to Solicitation” located on the eProcurement web page at https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx

The procurement process will provide for the evaluation of proposals and selection of the winning proposal in accordance with state law and regulations. KRS Chapter 45A of the Kentucky Model Procurement Code provides the regulatory framework for the procurement of services by state agencies.

9.10 Technical Proposal Evaluation

The Department will evaluate the proposal based on the technical portion of the Evaluation Criteria.

Each Offeror 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 Offeror. Past Offeror Performance may be considered in the award of a contract. Offerors with a record of poor performance in the last twelve (12) months may be found non-responsible and ineligible for award.

9.20 Cost Proposal Evaluation

Not Applicable

9.30 Right to Reject/Waiver of Minor Irregularities

The Department reserves the right at its discretion to reject any and all offers. The Department also reserves the right at its discretion to waive informalities and minor irregularities in offers received.

9.40 Clarification of Proposals

The Department reserves the right at its discretion to request additional information as may reasonably be required for selection and to reject any proposals for failure to provide additional information on a timely basis.

The Department reserves the right to conduct discussions with any Offeror who has submitted a proposal to determine the Offeror’s qualifications for further consideration. Such discussions shall not disclose any information derived from proposals submitted by other Offerors.

9.50 Best and Final Offers

The Department reserves the right at its discretion to request a Best and Final Offer (BAFO) for technical and/or cost proposals. Offerors are cautioned to propose their best possible offers at the outset of the process, as there is no guarantee that any Offeror will be allowed an opportunity to submit a Best and Final technical and/or cost offer.

9.60 Vendor Response and Public Inspection

This RFP specifies the format, required information and general content of proposals to be submitted in response to the RFP. The Department shall not disclose any portions of the proposals prior to contract award to anyone outside the Department, representatives of the agency for whose benefit the contract is proposed, representatives of the federal government, if required, and the members of the evaluation committee. After a contract is awarded in whole or in part, the Department shall have the right to duplicate, use, or disclose all proposal data submitted by Offerors in response to this RFP as a matter of public record.

Any and all documents submitted by an Offeror in response to the RFP shall be available for public inspection after contract award pursuant to the Kentucky Open Records Act, KRS 61.870 to 61.884 (“the Act”). When responding to a request to inspect records submitted in response to this RFP, the

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Department will not redact or withhold any information or documents unless the records sought are exempt from disclosure pursuant to KRS 61.878 or other applicable law. Similarly, no such documents shall be exempt from public disclosure, regardless of the Offeror’s designation of the information contained therein as “proprietary,” “confidential,” or otherwise, except in cases where the requested documents (or information contained therein) would be excluded from application of the Act under KRS 61.878(1)(c).

The Commonwealth of Kentucky shall have the right to use all system ideas, or adaptations of those ideas, contained in any proposal received in response to this RFP. Selection or rejections of the proposal will not affect this right.

9.70 Reciprocal Preference for Kentucky Resident Bidders and Preferences for a Qualified Bidder The scoring of bids/proposals is subject to the reciprocal preference for Kentucky resident bidders and preferences for a Qualified Bidder or the Department of Corrections, Division of Prison Industries (See KRS 45A.490(1), (2), 45A.492, 45A.494 and KAR 200 5:410).

Vendors not claiming resident bidder or qualified bidder status need not submit the corresponding affidavit.

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 the attached Required Affidavit for Bidders, Offerors and Contractors Claiming Resident Bidder Status as part of its response. The Department 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.

As part of its response, a nonresident bidder shall submit its certificate of authority to transact business in 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 Qualified Bidder or the Department of Corrections, Division of Prison Industries (200 KAR 5:410)

Pursuant to KRS 45A.470 and 200 KAR 5:410, 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. New Vision Industries, Inc., 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). Any bidder claiming “qualified bidder” status, other than New Vision Industries, Inc., shall submit a notarized affidavit affirming that it meets the requirements to be considered a qualified bidder as part of its response to the solicitation (affidavit form included as part of this RFP). If requested, failure to provide documentation proving qualified bidder status to a public agency, if requested, may result in disqualification of the bidder or contract termination.

9.80 Negotiation

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After conducting the evaluation to determine the best proposal received, the Department reserves the right to negotiate a fair and reasonable compensation based on the pricing submitted in the Offeror’s proposal. If the negotiations fail to reach an agreement on a fair and reasonable compensation rate, the Department of Insurance reserves the right to proceed to the next highest ranked proposal. Other terms and conditions relating to the technical and/or cost proposals may be negotiated at the sole discretion of the Department.

9.85 Best Interests of the Commonwealth

The Department will rank all proposals in the manner set forth in the Evaluation Criteria. However, the Department reserves the right to reject any or all proposals in whole or in part before, during, or after negotiation based on the best interests of the Department.

CONTRACT AWARD, TERMS, AND CONDITIONS

10.00 Notification of Award

To view the award of contract(s), including the contractor(s) receiving the award(s) for this solicitation, access the Kentucky Vendor Self Service Site at:

https://vss.ky.gov

Offerors can search for the solicitation title or number in the keyword search field or filter their search for only awarded solicitations by clicking on “Advanced Search” and changing the status to “awarded.” The award(s) information can be accessed by clicking on the details button of the solicitation and clicking the “Notice of Award” tab. It is the Offeror’s responsibility to review this information in a timely fashion. No other notification of the results of an Award of Contract will be provided to unsuccessful Offerors.

10.10 Beginning of Work

A contract is not effective and binding until approved by the Secretary of the Finance and Administration Cabinet and filed with the Legislative Research Commission’s Government Contract Review Committee. The selected contractor shall not commence any billable work until a valid contract has been fully executed. A contract resulting from this RFP, including the components referenced in Section 10.20, shall represent the entire agreement between the parties.

Prior negotiations, representations, or agreements, either written or oral, between the parties hereto relating to the subject matter hereof shall be of no effect upon the contract.

10.20 Contract Components and Order of Precedence

The Department’s acceptance of the Offeror’s offer in response to the RFP, indicated by the issuance of a Contract Award, shall create a valid contract between the Parties consisting of the following:

1. Procurement Statutes, Regulations and Policies

2. Any written Agreement between the Parties.

3. Any Addenda to the Solicitation.

4. The Solicitation and all attachments

5. Any Best and Final Offer.

6. Any clarifications concerning the contractor’s proposal in response to the Solicitation.

7. The contractor’s proposal in response to the Solicitation.

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In the event of any conflict between or among the provisions contained in the contract, the order of precedence shall be as enumerated above.

10.30 Contract Term and Renewal Option

The initial term of the contract is anticipated to be from September 2, 2024, through June 30, 2026.

The contract will not be effective until the Secretary of the Finance and Administration Cabinet or his authorized designee has approved the contract and until the contract has been filed with the Legislative Research Commission, Government Contract Review Committee.

The Department reserves the right to renew the contract for up to two (2) additional two (2) year periods.

Renewal shall be subject to prior approval from the Secretary of the Finance and Administration Cabinet, or this authorized designee, and the LRC Government Contract Review Committee in accordance with KRS 45A.695 and KRS 45A.705.

10.40 Changes and Modifications to the Contract

Pursuant to 200 KAR 5:311, no modification or change of any provision in the contract shall be made, or construed to have been made, unless such modification is mutually agreed to in writing by the contractor and the Department and incorporated as a written amendment by the Department prior to the effective date of such modification or change. Modification shall be subject to prior approval from the Secretary of the Finance and Administration Cabinet, or this authorized designee, and the LRC Government Contract Review Committee. Memoranda of Understanding, written clarification, and/or other correspondence shall not be construed as amendments to the contract.

10.50 Notices

Unless otherwise instructed, all notices, consents, and other communications required and/or permitted by the contract shall be in writing. After the award of the contract, all communications of a contractual or legal nature are to be made to the Agency Contact.

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Personal Service Contract Standard Terms and Conditions Revised April 2024

Whereas, the first party, the state agency, has concluded that either state personnel are not available to perform said function, or it would not be feasible to utilize state personnel to perform said function; and

Whereas, the second party, the Contractor, is available and qualified to perform such function; and

Whereas, for the abovementioned reasons, the state agency desires to avail itself of the services of the second party;

NOW THEREFORE, the following terms and conditions are applicable to this contract:

1.00 Effective Date

This contract is not effective until the Secretary of the Finance and Administration Cabinet or his authorized designee has approved the contract and until the contract has been submitted to the Legislative Research Commission, Government Contract Review Committee (“LRC”). However, in accordance with KRS 45A.700, contracts in aggregate amounts of $10,000 or less are exempt from review by the committee and need only be filed with the committee within 30 days of their effective date for informational purposes.

KRS 45A.695(7) provides that payments on personal service contracts and memoranda of agreement shall not be authorized for services rendered after government contract review committee disapproval, unless the decision of the committee is overridden by the Secretary of the Finance and Administration Cabinet or agency head if the agency has been granted delegation authority by the Secretary.

The vendor shall be paid, upon the submission of proper invoices to the receiving agency at the prices stipulated for the supplies delivered and accepted, or services rendered. Unless otherwise specified, payment will not be made for partial deliveries accepted. Payments will be made within thirty (30) working days after receipt of goods or a vendor’s invoice in accordance with KRS 45.453 and KRS 45.454.

2.00 Renewals

Upon expiration of the initial term, the contract may be renewed in accordance with the terms and conditions in the original solicitation.