RFP_for_NFIP.pdf

COMBINED

SYNOPSIS/SOLICITATION

For NFIP Risk Rating and Policy Forms

Synopsis: This is a combined synopsis/solicitation for commercial services prepared in accordance with (IAW) the format in Federal Acquisition Regulation (FAR) Subpart 12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation;

proposals are being requested and a written solicitation will not be issued. Solicitation Number is HSFE80-17-R-0011 and is issued as a Request for Proposal (RFP) IAW FAR Parts 12 and 15, utilizing procedures in subpart 15.2.

The Department of Homeland Security (DHS)/Federal Emergency Management Agency’s (FEMA) mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from and mitigate all hazards.

FEMA’s National Flood Insurance Program (NFIP) has been offering flood insurance coverage to homeowners, renters and businesses as protection against flood losses for over 40 years. In return, local governments provide commitment to sound floodplain management and related flood disaster mitigation efforts. In addition to offering flood insurance, the duties of the NFIP include identifying communities’ flood risks, mapping and publishing Flood Insurance Rate Maps of those risks, helping communities meet floodplain management requirements, and communicating the benefits of flood insurance protection so that more Americans are reimbursed for flood damage through the insurance mechanism, rather than through Federal disaster assistance funds.

This solicitation incorporates all mandatory commercial item provisions and clauses that are in effect through Federal Acquisition Circular (FAC) 2005-95, effective January 19, 2017.

The North American Industrial Classification System (NAICS) code is 524298 and the Small Business Size Standard in millions of dollars is $15M.

It is the responsibility of the contractor to be familiar with the applicable clauses and provisions as included in Section I of the RFP. The clauses may be accessed in full text at:

1. https://www.acquisition.gov/far/

2. http://www.acq.osd.mil/dpap/dars/dfarspgi/current/index.html.

The Government contemplates awarding a Firm Fixed Price type contract resulting from this solicitation.

Questions are due to the Contracting Officer, NLT 2:00pm EST, September 8, 2017.

http://www.acquisition.gov/far/ http://www.acquisition.gov/far/ http://www.acq.osd.mil/dpap/dars/dfarspgi/current/index.html

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

The National Flood Insurance Program Risk Rating and Policy Forms is a Single Award, Fixed Firm Price contract to improve NFIP insurance product and policyholder experience by accomplishing the services described in Section C, Statement of Objectives. The Contractor shall provide, all necessary labor, supervision, materials, and supplies necessary to provide the items and services.

B.1 PRICE/COST SCHEDULE

The Price/Cost Schedule shall be developed by the contractor based on the attached Statement of Objectives.

The Price Proposal shall be submitted in Excel format.

B.2 ACQUISITION STRATEGY

FIMA intends to award one firm-fixed price contract for this requirement.

END OF SECTION B

SECTION C – DESCRIPTION/SPECIFICATIONS

STATEMENT OF OBJECTIVES

NATIONAL FLOOD INSURANCE PROGRAM

RISK RATING AND POLICY FORMS

C.1 DESCRIPTION AND PURPOSE

The Federal Insurance and Mitigation Administration (FIMA) is a component of the Department of Homeland Security (DHS), Federal Emergency Management Agency (FEMA), which operates the Risk Management and Flood Insurance Directorates and the National Flood Insurance Program

(NFIP).

FEMA’s NFIP has been offering flood insurance coverage to homeowners, renters and businesses as protection against flood losses for over 40 years. In return, local governments provide commitment to sound floodplain management and related flood disaster mitigation efforts. In addition to offering flood insurance, the duties of the NFIP include identifying communities’ flood risks, mapping and publishing Flood Insurance Rate Maps of those risks, helping communities meet floodplain management requirements, and communicating the benefits of flood insurance protection so that more Americans are reimbursed for flood damage through the insurance mechanism, rather than through Federal disaster assistance funds.

Since the political and technological environments are continuing to evolve, this initiative will require the continuous review of existing systems and operations, and potential development of new standards or approaches in meeting the objectives outlined below. FEMA requires solutions that are in line with industry’s best practices, proven, efficient, easy to implement and effective.

The goal of this Contract is to improve the NFIP insurance product and policyholder experience, by accomplishing the following:

• Provide an insurance product that customers value

• Improve the ability of policyholders to understand their flood coverage, the key risk drivers of their flood insurance costs, and choices that affect coverage and cost.

• Enhance the ability of agents to explain the value proposition of flood coverage to their policyholders

• Allow the NFIP to more readily implement and oversee an efficient, timely, correct, and consistent claims adjusting process

• Expand the ability of the NFIP to engage a large number of trained, experienced independent claims adjusters for large-scale catastrophic events

• Allow agile delivery of solution to successive market subsets

The purpose of the acquisition is to procure risk rating and policy forms development services to support the establishment of the Risk Rating Redesign Program.

C.2 FEMA STRATEGIC GOALS

The 2014-2018 FEMA Strategic Plan reflects objectives the Agency will accomplish to provide the best possible support to the American people before, during, and after disasters. It sets forth the strategies FEMA will employ to accomplish the objectives and also establishes measurable outcomes to achieve. This Strategic Plan was developed through the involvement of hundreds of FEMA employees and many external stakeholders who contributed to generating our objectives, strategies, and outcomes, and who are now working to execute this Plan.

The Strategic Plan provides a strategic lens to focus FEMA's efforts and guide the allocation of resources over the next four years. The FEMA Strategic Plan also supports the Department of Homeland Security's Strategic Plan for Fiscal Years (FY) 2014-2018 Mission 5 of Strengthen national preparedness and resilience.

FEMA’s Five Strategic Priorities:

• Priority 1: Be survivor-centric in mission and program delivery

• Priority 2: Become an expeditionary organization

• Priority 3: Posture and build capability for catastrophic disasters

• Priority 4: Enable disaster risk reduction nationally

• Priority 5: Strengthen FEMA’s organizational foundation

FEMA's Two Strategic Imperatives:

• A whole community approach to emergency management

• Foster innovation and learning

C.3 FIMA MISSION

The mission of FIMA is to create safer communities by reducing loss of life and property; enable individuals to recover more rapidly from floods and other disasters; and lessen the financial impact of disasters on the Nation. This is accomplished through three primary objectives:

• Analyze Risk – Determining the impact of natural hazards that lead to effective strategies for reducing risk.

• Reduce Risk – Reducing or eliminating long-term risk from hazards on the existing built environment and future construction.

• Insure for Flood Risk – Reducing the impact of floods on the Nation by providing flood insurance.

https://www.fema.gov/media-library/assets/documents/96981 http://www.dhs.gov/sites/default/files/publications/FY14-18%20Strategic%20Plan.PDF http://www.dhs.gov/sites/default/files/publications/FY14-18%20Strategic%20Plan.PDF

C.4 OBJECTIVES

Objective 1: Conduct assessment of the NFIP’s current flood insurance policy forms and review the newly developed risk rating and classification approach

• The Contractor shall evaluate the current policy forms coverage and compare them with standard industry practices.

• The Contractor shall apply relevant legal regulations as well as business and technological developments in policy language to the policy form redesign process.

• The Contractor shall review the newly developed risk rating and classification approach to:

o Understand the differences from the previous risk rating and classification approach o Understand the results of the testing of the risk rating and classification approach on one riverine community and one coastal community o Validate the newly developed risk rating and classification approach and provide recommendations for improvement o Develop a plan for expanding the new risk rating and classification approach to a national level

• Assist FEMA in upgrading the newly developed risk rating and classification approach based on the review of the risk rating and classification approach, as well as feedback from FEMA leadership.

• The Contractor shall develop metrics to be able to measure the success of the redesigned policy form and rating method.

Objective 2: Scale the new risk rating and classification approach and develop a rating plan for national level delivery

• The Contractor shall scale the NFIP’s newly developed risk rating and classification approach to the national level.

• The Contractor shall perform all work in conjunction with FEMA actuarial staff. All work products and analyses should be developed so that FEMA staff can continue the work independently upon contract expiration.

• The Contractor shall develop a rating plan that applies to all NFIP policies across the nation based on the newly developed risk rating and classification approach. The Contractor shall need to determine how the base rates and factors will apply to all policies across the nation.

The Contractor shall complete any technical analysis required to develop the rating plan.

• The Contractor shall build upon previously completed data analyses (conducted prior to this Contract) in order to deliver the rating plan. The Contractor shall need to apply the risk rating and classification approach to regions and policies with more limited data. The Government may determine the need to acquire new data sources and will request the Contractor to incorporate any newly acquired data into the risk rating and classification approach to deliver the rating plan.

• The Contractor shall also produce documentation of all rate setting processes and protocols for the rating plan. This will allow FEMA to be transparent with the public, leadership, and other stakeholders and to enable FEMA to recreate the process moving forward. When developing the documentation, the Contractor shall consider prior approval filing practices, particularly any guidelines given by the National Association of Insurance Commissioners

(NAIC).

• To complete this Objective, the Contractor shall need to assist FEMA in running the NFIP policyholder data through third party catastrophic flood models. The Contractor shall be expected to analyze and incorporate results from no more than three catastrophic flood models. In addition, the Contractor may be required to analyze and incorporate the NFIP mapping data and historic claims data at the national level. Please see section XI.

Assumptions and Constraints for more information on the catastrophic models.

• FEMA is creating a Risk Rating Engine independent from this Contract. The Contractor shall assist FEMA in developing the requirements and inputs for the Risk Rating Engine during development.

Objective 3: Iteratively draft NFIP policy forms and test against newly developed test rating plan to develop recommendations for policy form upgrades

• The Contractor shall develop new policy forms for both the following existing flood insurance products and new flood insurance products, including but not limited to:

o HO-3: Owner occupied homes, including primary, seasonal, and secondary o DP-3: Tenant occupied homes o HO-4: Contents only policy for renters o HO-6: Owner and tenant occupied condominium units o CP 17: Owners or associations of condominium buildings or apartment buildings o CP 10: Owners of commercial non-residential buildings o Flood insurance endorsement for a homeowners policy

The Contractor shall recommend other NFIP policy forms to develop, if necessary.

• The NFIP policy forms will:

o Align with current industry standards o Be consistent across policy forms o Be understandable to policyholders o Offer coverages at attractive price points to policyholders o Be compliant with statute and case law

• The Contractor shall develop a test rating plan to develop general pricing levels for new policy forms and options. The test rating plan should be developed concurrently with draft policy forms. The test rating plan is to be developed as part of objective 2.

• The Contractor shall identify statutory limitations and assist the Government in determining whether the new products are within statutory limitations. The Contractor shall also identify required regulatory changes and assist the government in defining these regulatory changes. The Contractor shall provide advisory services if the Government chooses to pursue changing any statutes.

• The Contractor shall have access to historical claims data in order to understand the impact of updating current products and potential impacts of new products. Please see section XI.

Assumptions and Constraints for more information on the need to secure FEMA data.

• The new policy forms will be tested against risk rating plan to determine whether pricing is reasonable in multiple regional areas. The policy forms and rating plan likely will need to be updated based on the testing. This process is expected to be iterative throughout the policy form development.

Final policy form products will be developed to be tested as part of Objective 4. This will be approved by Government leadership.

Objective 4: Evaluate the recommended policy forms and pricing against market’s appetite for coverage at certain price points

The extent of market testing done will be determined by FEMA and may be limited due to time constraints and the delivery strategy.

• The Contractor shall assist FEMA in evaluating the policy forms and corresponding pricing using both qualitative and quantitative methods, including but not limited to testing user experience, conducting focus groups, and evaluating survey responses from representative policyholder samples. The Contractor shall use the previously developed metrics (Objective 1) to quantify any successes and failures.

• FEMA will conduct any policyholder surveys independently. The Contractor may be asked to develop materials and evaluate results.

• The Contractor shall update policy forms and pricing based on market testing.

Objective 5: Finalize NFIP policy forms and rating plan

• Based on the results of the market testing, the Contractor shall develop final recommendations for NFIP policy forms and rating plan to be approved by FEMA leadership.

• The Contractor shall debrief FEMA on the steps used to create the policy forms and rating plan. A successful briefing will result in the Government being able to replicate and maintain the processes and procedures moving forward.

C.5 STAFF REQUIREMENTS

The Contractor shall provide staff highly skilled to include, at a minimum, an expert in actuarial sciences and an expert in data model analysis.

The Lead Actuary must be a fellow of an American or International actuarial society and have significant experience developing, expanding, and updating risk rating and classification approaches for catastrophic perils.

The Lead Underwriter and the Lead Attorney should both have significant experience developing insurance policy forms. They both should have some experience developing policy forms for catastrophic perils.

The Data Modeling Expert must have experience with catastrophic flood models, such as AIR Touchstone, RMS RiskLink, CoreLogic, and/or Katrisk.

FEMA requires Contractor support personnel with significant experience assessing, evaluating, improving, and implementing risk rating and policy forms solutions.

Core work hours shall be Monday through Friday from 8:00AM to 5:00PM (EST), excluding Federal Holidays. The Government anticipates the place of performance shall primarily be remote or at FEMA Headquarters located at 400 C Street SW, 3rd Floor, Washington, DC, 20472.

C.6 KEY PERSONNEL

Before replacing any individual designated as Key by the Government, the Contractor shall notify the Contracting Officer no less than fifteen (15) days in advance, submit written justification for replacement, and provide the name and qualification for any proposed substitute(s). All proposed substitutes shall possess qualification equal to or superior to those of the Key person being replaced. The Contractor shall not replace Key Contractor personnel without acknowledgment from the Contracting Officer. The following Contractor personnel are designated as Key for this requirement. Note: The Government may designate additional Contractor personnel as Key at the time of award.

Lead Actuary

The Contractor shall provide a Senior Actuary that is responsible for all actuarial activity of the Risk Rating and Policy Forms Contract including but not limited to the review of the newly developed risk rating and classification approach, the scaling of the risk rating and classification approach, and the upgrading of the risk rating and classification approach based on development and testing of policy forms.

The Lead Actuary must be an Associate or Fellow of an American or International actuarial society, with significant relevant work experience (over 10 years) in developing risk rating and classification plans for property and casualty insurance companies.

Lead Underwriter

The Contractor shall provide a Senior Underwriter that is responsible for all policy forms activity of the Risk Rating and Policy Forms Contract including but not limited to the assessment of the current policy forms, the development of new policy forms, and the testing of the new policy forms.

The Lead Underwriter must have significant relevant work experience (over 10 years) working with and developing policy forms.

Lead Attorney

The Contractor shall provide a Senior Attorney that is responsible for all legal review of policy forms activity of the Risk Rating and Policy Forms Contract including but not limited to the assessment of the current policy forms, the development of new policy forms, and the testing of the new policy forms.

The Lead Attorney must have significant relevant work experience (over 10 years) working with and developing policy forms.

Data Model Expert

The Contractor shall provide a data model expert that is responsible for the data modelling analysis for the Risk Rating and Classification task order. The Data Model Expert must have relevant work experience (over 5 years) with catastrophic models (with a strong preference for catastrophic flood models) manipulating and analyzing data output from AIR, RMS, CoreLogic, and/or KatRisk.

C7 DELIVERABLES AND MILESTONE SCHEDULE

DESCRIPTION FREQUENCY DUE DATES

Monthly Technical Progress Narrative Monthly Fifteenth (15th) of every month

Development of Project Plan Once Fifteen (15) days from contract award

Assessment of Policy Forms and Risk Rating Approach

Once Thirty (30) days from EOD for key personnel

Risk Rating & Policy Forms Metrics Once Forty-five (45) days from EOD for key personnel

Initial Policy Form Once or per policy form

Three (3) months from contract award or As requested by COR (phased solution approach)

Test Rating Plan Once or per policy form

Three (3) months from contract award or As requested by COR (phased solution approach)

Draft risk rating technical analysis and protocols

Once or per policy form

Nine (9) months from contract award or As requested by COR (phased solution approach)

Draft policy forms and corresponding pricing

Once or per policy form

Nine (9) months from contract award or As requested by COR (phased solution approach)

Evaluation of Market Testing Once or per policy form

Twelve (12) months from contract award or As requested by COR (phased solution approach)

Market tested policy forms and corresponding prices

Once or per policy form

Thirty (30) days from contract expiration or As requested by COR (phased solution approach)

Debrief presentation and all data associated with and resulting from this work effort

Once Thirty (30) days from contract expiration

Note: Deliverables will be delivered to the COR by the due date listed. The COR then has twenty

(20) business days to review the deliverable and request corrections from the Contractor before the document is accepted by the Government. Some of these deliverables could be shared with other FEMA stakeholders. Deliverables may be delivered in electronic format using Microsoft products.

C.8 GOVERNMENT FURNISHED EQUIPMENT

• Portable laptops to conduct work behind the FEMA firewall o All contractor personnel performing work using or reviewing FEMA data and non-public information will require a laptop

• A minimal amount of work space for the Contractor at FEMA facilities

• Access to appropriate personnel to complete all Objectives of the SOO

C.9 ASSUMPTIONS AND CONTRAINTS

• The Government may choose to roll-out delivery of solutions to successive market subsets in a phased approach. The development of rates and policy forms should be flexible enough to support this approach.

• The Government plans to procure the catastrophic flood licenses for those models independently. The Government cannot release which models will be used at this time as they are currently in the acquisition process.

• The new risk rating and classification approach has not yet been developed, so details on exactly what it encompasses are unavailable at this time. However, the Government expects that the new approach will use NFIP maps, catastrophic modeling results, and historic data to develop the new classification and rating system.

• Due to IT security and privacy concerns, NFIP data is required to stay behind the FEMA firewall. Contractors will be badged and provided laptops in order to be able to access data.

All modeling will be performed within the Reinsurance Broker System by either FEMA or a third party vendor. The Contractor shall not be able to run the NFIP data through their own software or equipment.

• Short project timeframe results in a limited amount of time available to analyze and assess the current NFIP approach.

• This is a high visibility project with an aggressive timeline which requires a fast-paced, collaborative work style with limited time and resources for Contractor ramp-up.

• A new risk rating tool and delivery system will be developed as a separate effort. The Contractor should bring expertise on common IT constraints or considerations when developing the approach, so that it is easily implementable.

• The data resulting from this work effort will be for the sole use of FEMA and cannot be used by anyone other than FEMA for any other reason or purpose. Additionally, all data resulting from this effort must be returned to FEMA.

• The Contractor shall adhere to the procedures defined in Management Directive 11042.1 for

Safeguarding Sensitive but Unclassified (For Official Use Only) Information.

END OF SECTION C

SECTION D – PACKAGING AND MARKING

[For this Solicitation, there are NO clauses in this section]

END OF SECTION D

SECTION E – INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.252-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this contract. See FAR 52.252-2 for an internet address (if specified) for electronic access to the full text of a clause.

NUMBER TITLE DATE

52.246-2 INSPECTION OF SUPPLIES--FIXED-PRICE AUG 1996

52.246-4 INSPECTION OF SERVICES--FIXED-PRICE AUG 1996

52.246-16 RESPONSIBILITY FOR SUPPLIES APR 1984

E.2 INSPECTION AND ACCEPTANCE

The place of inspection and acceptance of services provided by the Contractor shall be set forth in each contract. For the purpose of this clause, the Contracting Officer’s Representative (COR) named in the Designation of the Contracting Officer’s Representative clause in this contract is the representative of the Contracting Officer. The Contracting Officer reserves the right to unilaterally designate other Government agents as authorized representatives, and should such occur, the Contractor shall be notified by written notice.

E.3 PERFORMANCE EVALUATION

This is a performance based contract. During performance of this contract, the contractor shall be evaluated by the CO, the COR, and/or other designated personnel, in accordance with the overall level of compliance with the contract and the demonstrated quality and timeliness of the services provided.

The Quality Assurance Surveillance Plan (QASP) lists the performance requirements by FEMA task for which Contractor performance will be measured when performing under this contract. The Government may adjust the standards and/or identify additional performance elements as may be necessary to ensure that the performance standards for work specified in the order reflect the requirements.

E.4 METHODS OF SURVEILLANCE

The Government may use a variety of surveillance methods to evaluate the contractor’s performance.

These include, but are not limited to, random sampling of recurring services, periodic surveillance of the Contractor’s quality control program, test calls, and validated customer complaints.

Performance standards define desired services. The Government performs surveillance to determine if the contractor exceeds, meets or does not meet these standards.

END OF SECTION E

SECTION F – DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.252-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this contract. See FAR 52.252-2 for an internet address (if specified) for electronic access to the full text of a clause.

NUMBER TITLE DATE

52.211-13 TIME EXTENSIONS SEP 2000

52.242-14 SUSPENSION OF WORK APR 1984

52.242-15 STOP-WORK ORDER AUG 1989

52.242-17 GOVERNMENT DELAY OF WORK APR 1984

F.2 PERIOD OF PERFORMANCE

The contract shall be effective as of the execution date of the base contract, and shall continue up to 2.5 years if all three six-month options are exercised.

F.3 PRINCIPAL PLACE OF PERFORMANCE

The Contractor shall be able to support NFIP via teleconferences and videoconferences and requires one representative from the Contractor’s team to be present at FEMA Headquarters located in Washington, DC on a biweekly basis and for the Lead Actuary to be present at least once a month. As determined by the Government, the Contractor is allowed limited access to the FEMA Headquarters located in Washington, DC.

F.4 PLACE OF PERFORMANCE

Due to the collaborative nature of the work, the Government anticipates frequent teleconferences and videoconferences and requires one representative from the Contractor’s team to be present at FEMA Headquarters located in Washington, DC on a biweekly basis and for the Lead Actuary to be present at least once a month. As determined by the Government, the Contractor is allowed limited access to the FEMA Headquarters located in Washington, DC.

F.5 DELIVERY SCHEDULE

Deliverables will be delivered to the COR by the due date listed in the deliverables and milestone schedule of the statement of objectives.

END OF SECTION F

SECTION G – CONTRACT ADMINISTRATION DATA

G.1 IDENTIFICATION OF GOVERNMENT OFFICIALS

The Government Officials assigned to this contract are as follows:

Contracting Officer:

Name: Erik Young Phone: 202-212-4108 Email: Erik.Young@fema.dhs.gov

Contract Specialist:

Name: Leeann Washington Phone: 202-212-5212 Email: Leeann.Washington@fema.dhs.gov

Contracting Officer’s Representative Name: Barbara Jean Pickens Phone: 202-646-4350 Email: Barbara.Pickens@fema.dhs.gov

G.2 TECHICAL DIRECTION AND SURVEILLANCE

(a) The Performance of the work under this contract shall be subject to the surveillance and written technical direction of the Contracting Officer’s Representative (COR), who shall be specifically appointed by the Contracting Officer in writing. Technical direction is defined as a directive to the Contractor which approves approaches, solutions, designs, or refinements; fills in details or otherwise completes the general description of work of documentation items; shifts emphasis among work areas or tasks; or otherwise furnishes guidance to the Contractor. Technical direction includes the process of conducting inquiries, requesting studies, or transmitting information or advice by the COR, regarding matters within the general tasks and requirements in Section C of this contract.

(b) The COR does not have the authority to, and shall not, issue any technical direction which:

(1) Constitutes an assignment of additional work outside the contract or contract Statement of

Objectives;

(2) Constitutes a change as defined in the contract clause entitled “Changes”;

(3) In any manner causes an increase or decrease in the total estimated contract or, the fixed fee (if any), or the time required for contract performance;

(4) Changes any of the expressed terms, conditions, or specifications of the contract or

(5) Interferes with the Contractor’s right to perform the specifications of the contract.

(c) All technical directions shall be issued in writing by the COR mailto:Erik.Young@fema.dhs.gov mailto:Leeann.Washington@fema.dhs.gov mailto:Barbara.Pickens@fema.dhs.gov

(d) The Contractor shall proceed promptly with the performance of technical directions duly issued by the COR in the manner described by this clause and within his/her authority under the provisions of this clause. Any instruction or direction by the COR which falls within one, or more, of the categories defined in (b)(1) through (5) above, shall cause the Contractor to notify the Contracting Officer in writing one (1) working day after receipt of any such instruction or direction and shall request the Contracting Officer to modify the contract accordingly. Upon receiving the notification from the Contractor, the Contracting Officer shall either issue an appropriate contract modification within a reasonable time or advise the Contractor in writing within two (2) days after receipt of the Contractor’s Letter that:

(1) The technical direction is rescinded in its entirety

(2) The technical direction is within the scope of the contract, does not constitute a change under the “Changes” clause of the contract and that the Contractor should continue with the performance of the technical direction.

(e) A failure of the Contractor and Contracting Officer to agree that the technical direction is within the scope of the contract, or a failure to agree upon the contract action to be taken with respect thereto shall be subject to the provisions of the “Disputes” clause of this contract.

(f) Any action(s) taken by the Contractor in response to any direction given by any person other than the Contracting Officer or the Project Officer whom the Contracting Officer shall appoint shall be at the Contractor’s risk.

G.3 SUPPLEMENT TO CHANGES CLAUSE

The provision of the Changes Clause (FAR 52.243-4), as applicable, are supplemented as follows:

a) The Contractor shall provide an itemized breakdown or take-off for all charges involving an increase or decrease in the contract price. The proposal shall be in sufficient detail that will enable the Government to determine the reasonableness of the contractor’s an d subcontractor’s cost to do the change. As a minimum, the following shall be shown:

1. Material quantities and unit prices;

2. Labor costs (broken down by trades, hours worked, and hourly rates);

3. Labor burden (Fringe Benefits, Workmen’s Compensation, and Public Liability Insurance);

4. Overhead;

5. Profit;

6. FICA, and FUTA employment taxes; and

7. Sales tax (if any)

b) On proposal offering a credit for work omitted, deductions for overhead and profit shall also be shown.

c) If the proposed change will result in an increase or decrease in the contract performance period, the contractor shall State the exact number of days involved. If the proposed change is approved and the Government agrees with the increase or decrease in completion time, the completion date will become a part of the contract modification.

G.4 INVOICES

Invoices shall be submitted as follows:

Contractors will use Standard Form 1034 (Public Voucher for Purchases and Services Other Than Personal) and SF 1035 Continuation sheet when requesting payment for supplies or services rendered. The voucher must provide a description of the supplies or services, by line item (if applicable), quantity, unit price, and total amount. The item description, unit of measure, and unit price must match those specified in the contract. Invoices that do not match the line item pricing in the contract will be considered improper and will be returned to the Contractor.

SF 1034 and 1035 instructions:

SF 1034--Fixed Price

The information which a contractor is required to submit in its Standard Form 1034 is set forth as follows:

(1) U.S. Department, Bureau, or establishment and location insert the names and address of the servicing finance office unless the contract specifically provides otherwise.

(2) Date Voucher Prepared - insert date on which the public voucher is prepared and submitted.

(3) Contract/Delivery Order Number and Date - insert the number and date of the contract and delivery order, if applicable, under which reimbursement is claimed.

(4) Requisition Number and Date - leave blank.

(5) Voucher Number - insert the appropriate serial number of the voucher. A separate series of consecutive numbers, beginning with Number 1, shall be used by the contractor for each new contract. When an original voucher was submitted, but not paid in full because of suspended costs, resubmission vouchers should be submitted in a separate invoice showing the original voucher number and designated with the letter "R" as the last character of the number. If there is more than one resubmission, use the appropriate suffix (R2, R3, etc.) The last voucher of every contract or task order should be marked with the next sequential number, with the words "FINAL" (e.g. Invoice No. 1234-FINAL).

(6) Schedule Number; Paid By; Date Invoice Received - leave blank.

(7) Discount Terms - enter terms of discount, if applicable.

(8) Payee's Account Number - this space may be used by the contractor to record the account or job number(s) assigned to the contract or may be left blank.

(9) Payee's Name and Address - show the name of the contractor exactly as it appears in the contract and its correct address, except when an assignment has been made by the contractor, or the right to receive payment has been restricted, as in the case of an advance account. When the right to receive payment is restricted, the type of information to be shown in this space shall be furnished by the Contracting Officer.

(10) Shipped From; To; Weight Government B/L Number - insert for supply contracts.

(11) Date of Delivery or Service - show the month, day and year, beginning and ending dates of supplies or services delivered.

(12) Articles and Services - insert the following: "For detail, see Standard Form 1035 total amount claimed transferred from Page _ of Standard Form 1035." Type the following certification, signed by an authorized official, on the face of the Standard Form 1034.

"I certify that all payments requested are for appropriate purposes and in accordance with the agreements set forth in the contract."

(Name of Official) (Title)

(13) Quantity; Unit Price - insert for supply contracts.

(14) Amount - insert the amount claimed for the period indicated in (11) above. This amount should be transferred from the total per the SF 1035 Continuation Sheet.

INVOICE PREPARATION INSTRUCTIONS SF 1035

The SF 1035 will be used to identify the specific item description, quantities, unit of measure, and prices for each category of deliverable item or service. Suitable self-designed forms may be submitted instead of the SF 1035 as long as they contain the information required.

The information which a contractor is required to submit in its Standard Form 1035 is set forth as follows:

U.S. Department, Bureau, or Establishment - insert the name and address of the servicing finance office.

Voucher Number - insert the voucher number as shown on the Standard Form 1034.

Schedule Number - leave blank.

Sheet Number - insert the sheet number if more than one sheet is used in numerical sequence. Use as many sheets as necessary to show the information required.

Number and Date of Order - insert payee's name and address as in the Standard Form 1034.

Articles or Services - insert the contract number as in the Standard Form 1034.

Amount - insert the total quantities contract value, and amount and type of fee payable (as applicable).

END OF SECTION G

SECTION H – SPECIAL CONTRACT REQUIREMENTS

H.1 PRODUCTION OF REPORTS

The production of reports, data, or other written material, if required herein, is authorized provided that the material produced does not exceed 5,000 production units of any page and that items consisting of multiple pages do not exceed 25,000 production units in aggregate. The aggregate number of production units is to be determined by multiplying pages time’s copies.

H.2 SERVICE CONTRACT WAGE DETERMINATION

The resulting contract will be subject to the Department of Labor (DOL) Service Contract Act. Applicable wage determinations will be incorporated under the contract as necessary in accordance with FAR 52.222- 49, Service Contract Act – Place of Performance Unknown. The attached DOL Wage Determinations provided in Section J, Attachment 4, shall be used for purposes of price proposal preparation to establish a fair base line for price comparison. The determinations provided in the attachment are based on the requested task order scenarios required for the technical proposal.

H.3 SUBCONTRACTING PLAN

The successful Offeror will be required to submit a subcontracting plan and/or a Small Business Participation Plan. The subcontracting plan submitted will include the goals set forth below for each socio-economic grouping listed. The goals will be applied to the total value of each year of performance. For example, if the total value of the contract for e a c h year is $1 million and the total period of performance is a base year and four one-year options, the subcontracting go a l for all small businesses for the base year and every option year is $400,000 for a total of $2 million over the life of the contract. Each subcontracting plan submitted will be reviewed to determine whether the successful Offeror has submitted an acceptable subcontracting plan. See Section L for additional instructions on the submission of the subcontracting plan.

Category Subcontracting Goal

All Small Businesses 39% Total Small Disadvantaged Businesses (both Section 8(a) and non-Section 8(a) firms)

5%

Historically Underutilized Empowerment Zone Small Businesses 3% Service-Disabled Veteran-Owned Small Businesses 3% Women-Owned Small Businesses 5%

H.4 SUBCONTRACTING REPORTING REQUIREMENT

Contractor(s) shall submit subcontracting accomplishments on the Individual Subcontract Report (ISR) and the Summary Subcontract Report (SSR) by using the web-based Electronic Subcontracting Reporting System (“eSRS”) at http://www.esrs.gov. (See HSAM Part 3019.704-70.)

http://www.esrs.gov/

H.5RELEASE, PUBLICATION AND USE OF GOVERNMENT FURNISHED DATA

No Contractor shall have the right to use, release to others, reproduce, distribute, or publish any Government furnished data first produced or specifically used by the Contractor in the performance of the resulting contract without prior written permissions from the FEMA.

H.6 INTERPRETATION OF CONTRACT REQUIREMENTS

No interpretation of any provisions of the contract, including applicable specifications, shall be binding on FEMA unless furnished or agreed to in writing by the CO.

H.7 CORRESPONDENCE PROCEDURES

To promote timely and effective administration, correspondence (except for vouchers submitted under the contract) shall be subject to the following procedures:

(a) Technical correspondence (where technical issues relating to compliance

With TO specifications are involved) shall be addressed to the COR with information copies to the CO/CS.

(b) All other correspondence (that which proposes or otherwise involves waivers, deviations or modifications to the requirements, terms or conditions of the contract) shall be addressed to the CO/CS with a copy to the COR.

H.8 CONTRACTOR COMMITMENTS, WARRANTIES, REPRESENTATIONS

Any written commitment by the contractor within the scope of the contract shall be binding upon the contractor. Failure of the contractor to fulfill any such commitment shall render the contractor liable under the default provisions for damages due to FEMA under the terms of the contract. For the purpose of the resulting contract, a written commitment by t h e contractor is limited to the proposal submitted by the contractor and to specific written amendments to its proposal. Written commitment by the contractor are further defined as including (1) any warranty or representation made by the contractor in a proposal as to performance, (2) any warranty or representation made by the contractor described in (1) above, made in any literature descriptions, drawings, or specifications accompanying or referred to in a proposal, and (3) any modification of or affirmation or representation as to the above which is made by the contractor in or during the course of negotiations, whether or not incorporated into a formal amendment to the proposal.

H.9 CONTRACTING OFFICER’S REPRESENTATIVE

The CO will designate, in writing, an authorized representative(s) to discharge such duties and responsibilities as may be delegated to him/her. The representative(s) will not have authority to change or alter any of the terms and conditions of th e contract. The CO has the sole authority to make changes in the contract. The Contractor shall be furnished a copy of the COR delegation.

H.10 KEY PERSONNEL REQUIREMENTS

A. Certain skilled experienced professional and/or technical personnel are essential for successful contractor accomplishment of the work to be performed under the contract. These are defined as "Key Personnel" and are those persons whose resumes were submitted for evaluation of the proposal. The Contractor agrees that such personnel shall not be removed from the contract or replaced without compliance with paragraphs (B) and (C) hereof.

B. If one or more of the key personnel for whatever reason becomes, or is expected to become, unavailable for work under the contract for a continuous period exceeding ten (10) calendar days, or is expected to devote substantially less effort to the work than indicated in the proposal or initially anticipated, the Contractor shall immediately notify the CO and shall, subject to the concurrence of the CO or his/her authorized representative, promptly replace such personnel with personnel of at least substantially equal ability and qualifications.

C. All requests for approval of substitutions hereunder must be in writing and provide a detailed explanation of the circumstances necessitating the proposed substitutions. They must contain a complete resume for the proposed substitute, and any other information requested or needed by the CO to approve or disapprove the proposed substitution. The CO or his/her authorized representative will evaluate such requests and promptly notify the contractor in writing of his approval or disapproval thereof.

D. If the CO determines that suitable and timely replacement of key personnel who have been reassigned, terminated or have otherwise become unavailable for the contract is not reasonably forthcoming, or that the resultant reduction of productive effort would be so substantial as to impair the successful completion of the contract or the services ordered, the contract may be terminated at the discretion of the CO for default or for the convenience of the Government, as appropriate, if he/she finds the contractor at fault for the condition. The contract price or fixed fee may be equitably adjusted downward to compensate the Government for any resultant delay, loss, or damages imposed.

The following individuals are defined as Key Management Personnel:

TITLE NAME

Lead Actuary Lead Underwriter Lead Attorney Data Model Expert

It is not required that the Contractor provide personnel with these exact titles, rather the collection of Contractor personnel shall meet the functional requirements consistent with the SOO.

H.11 REPRESENTATIONS AND CERTIFICATIONS

In accordance with FAR 15.204-5, "Representations, Certifications, and Other Statement of Offerors" (as executed by the contractor and included in its response to the FEMA's Request for Proposal), the aforementioned documents are hereby incorporated into the resulting contract.

H.12 ADVERTISEMENTS, PUBLICIZING AWARDS AND NEWS RELEASES

All press releases or announcements about agency programs, projects, and contract awards must be cleared by the Program Office as authorized by the CO, working in conjunction with the Office of External Affairs.

Under no circumstances shall the Contractor, or anyone acting on behalf of the Contractor, refer to the supplies, services, or equipment furnished pursuant to the provisions of this contract in any publicity news release or commercial advertising, or communicates with any media without first obtaining explicit written consent to do so from the Program Office and the CO.

The Contractor agrees not to refer to awards in commercial advertising in such a manner as to State or imply that the product or service provided is endorsed or preferred by the Federal Government or is considered by the Government to be superior to other products or services.

END OF SECTION H

SECTION I – CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and D at e ) in accordance with the clause at FAR "52.252-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this contract. See FAR 52.252-2 for an internet address (if specified) for electronic access to the full text of a clause

NUMBER

52.202-1

TITLE

DEFINITIONS

DATE

NOV 2013

52.203-3 GRATUITIES APR 1984

52.203-5 COVENANT AGAINST CONTINGENT FEES MAY 2014

52.203-6 RESTRICTIONS ON SUBCONTRACTOR SALES OCT 1995

TO THE GOVERNMENT Alternate I

52.203-7 ANTI-KICKBACK PROCEDURES MAY 2014

52.203-11 CERTIFICATION AND DISCLOSURE REGARDING

PAYMENTS TO INFLUENCE CERTAIN FEDERAL

TRANACTIONS SEP 2007

52.203-12 LIMITATION ON PAYMENTS TO INFLUENCE OCT 2010

CERTAIN FEDERAL TRANSACTIONS

52.203-17 CONTRACTOR EMPLOYEE WHISTLEBLOWER APR 2014

RIGHTS AND REQUIREMENT TO INFORM

EMPLOYEES OF WHISTLEBLOWER RIGHTS.

52.204-4 PRINTED OR COPIED DOUBLE-SIDED ON MAY 2011

RECYCLED PAPER

52.204-7 SYSTEM FOR AWARD MANAGEMENT OCT 2016

52.204-13

52.204-18

SYSTEM FOR AWARD MANAGEMENT

MAINTENANCE

COMMERCIAL AND GOVERNMENT ENTITY CODE

OCT 2016

MAINTENANCE JUL 2016

52.204-19 INCORPORATION BY REFERENCE OF

REPRESENTATIONS AND CERTIFICATIONS DEC 2014

52.210-1 MARKET RESEARCH APR 2011

52.215-8 ORDER OF PRECEDENCE--UNIFORM CONTRACT OCT 1997

FORMAT

52.215-23 LIMITATIONS ON PASS THRU CHARGES OCT 2009

52.219-16 LIQUIDATED DAMAGES--SUBCONTRACTING JAN 1999

PLAN

52.222-1 NOTICE TO THE GOVERNMENT OF LABOR FEB 1997

DISPUTES

52.222-4 CONTRACT WORK HOURS AND SAFETY MAY 2014

STANDARDS ACT-OVERTIME COMPENSATION

52.223-2 AFFIRMATIVE PROCUREMENT OF BIOBASED SEPT 2013

PRODUCTS UNDER SERVICE AND

CONSTRUCTION CONTRACTS

52.223-6 DRUG-FREE WORKPLACE MAY 2001

52.223-17 AFFIRMATIVE PROCUREMENT OF EPA-

DESIGNATED ITEMS IN SERVICE AND

CONSTRUCTION CONTRACTS

MAY 2008

52.229-3 FEDERAL, STATE, AND LOCAL TAXES FEB 2013

2.232-1 PAYMENTS APR 1984

52.232-8 DISCOUNTS FOR PROMPT PAYMENT FEB 2002

52.232-17 INTEREST MAY 2014

52.232-18 AVAILABILITY OF FUNDS APR 1984

52.232-24 PROHIBITION OF ASSIGNMENT OF CLAIMS MAY 2014

52.232-25 PROMPT PAYMENT JUL 2017

52.232-39 UNENFORCEABILITY OF UNAUTHORIZED JUN 2013

52.233-1

52.233-3

DISPUTES

ALTERNATE I (DEC 1991) PROTEST AFTER

AWARD

MAY 2014

AUG 1996

52.233-4 APPLICABLE LAW FOR BREACH OF

CONTRACT CLAIM

OCT 2004

52.242-13 BANKRUPTCY JUL 1995

52.242-15 STOP-WORK ORDER AUG 1989

52.243-1 CHANGES--FIXED PRICE ALTERNATE I (APR 1984) AUG 1987

52.244-6 SUBCONTRACTS FOR COMMERCIAL ITEMS JAN 2017

52.246-25 LIMITATION OF LIABILITY--SERVICES FEB 1997

52.248-1 VALUE ENGINEERING OCT 2010

52.249-2 TERMINATION FOR CONVENIENCE OF THE APR 2012

GOVERNMENT(FIXED-PRICE)

52.249-4 TERMINATION FOR CONVENIENCE OF THE

GOVERNMENT (SERVICES) (SHORT FORM)

APR 1984

52.253-1 COMPUTER GENERATED FORMS JAN 1991

I.2 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

This contract is subject to the written approval of the Contracting Officer listed in Section G.1 and shall not be binding until so approved.

I.3 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT

STATUTES OR EXECUTIVE ORDERS—COMMERCIAL ITEMS (JAN 2017) ALTERNATE I

(FEB 2000) ALTERNATE II (JAN 2017)

(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are incorporated in this contract by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

(1) 52.203-19, Prohibition on Requiring Certain Internal Confidentiality Agreements or Statements(JAN 2017)(section 743 of Division E, Title VII, of the Consolidated and Further Consolidated and Further Continuing Appropriations Act, 2015(Pub. L.