HSFEHQ-07-R-0051PWS.doc

Attachment C

Federal Emergency Management Agency

National Flood Insurance Program

Bureau and Statistical Agent

PERFORMANCE WORKSTATEMENT

May 23, 2007

PROCUREMENT SENSITIVE

Performance Work Statement

Bureau and Statistical Agent Business Services

C.1 BACKGROUND:

C.1.1 Program History:

The Department of Homeland Security, Federal Emergency Management Agency, Mitigation Division, is seeking to procure a contractor to provide program management and insurance services in support of the National Flood Insurance Program’s Bureau and Statistical Servicing Agent. These services include financial and statistical reporting and analysis; underwriting, claims, and development of all program materials, manuals, bulletins and forms.

The B&SA Contractor is the focal point of support operations for the Write Your Own (WYO) program, acts as the NFIP "Bureau", and performs management, analytical analyses, including the identification and resolution of problems, and the development of forms, manuals and other materials for the NFIP.

FEMA has also engaged a NFIP Servicing Agent Contractor to directly issue and service flood insurance policies, collect premiums and adjust and settle claims on behalf of the Government. The Servicing Agent Contractor is responsible for approximately 5% of NFIP policies.

The regulations governing the National Flood Insurance Program are set forth in Title 44 of the Code of Federal Regulations, Chapter I, Subchapter B, commencing at Part 59. The incumbent Contractor also serves as Statistical Agent for the Write Your Own (WYO) program. The authority for the WYO Program as set forth in 44 CFR Parts 61 and 62, Sections 61.13 and 62.63. Appendix B to Part 62 establishes A Plan to Maintain Financial Control for Business Written Under the Write Your Own Program (the "Financial Control Plan"). Administration of the WYO Program, including establishment of operating policies, rates, designation of eligible communities, development of reporting requirements, creation of auditing specifications, and the like, is the responsibility of Mitigation. The Mitigation Division responsibilities are undertaken in cooperation with the participating companies and the insurance industry. Mitigation is supported by FEMA and DHS. The Bureau and Statistical Agent contractor provides additional assistance in carrying out the WYO Program. With respect to the WYO program, in 1981, the Federal Insurance Administration (FIA) contacted representatives of insurance companies and the insurance trade organizations to determine the best way to achieve a new involvement by insurers in the National Flood Insurance Program (NFIP). In July 1983, the "model" arrangement for the WYO program was made final as a result of those meetings and extensive government coordination.

On August 16, 1983, an invitation was extended to all licensed property insurance companies to participate in WYO for fiscal year 1984. Since 1983, the WYO Program has become the primary vehicle for the delivery and service of flood insurance, responsible for approximately 95% of policies, and the Program has successfully pursued its goals:

- Increase the flood insurance policy base as well as the geographic distribution of policyholders;

- Improve service to policyholders and insurance agents through the infusion of industry knowledge and through access to existing insurance company communication capabilities that have been designed to meet their client's needs;

- Provide insurance companies with operating experience under the NFIP, particularly in ways that greatly increase the Program's ability to settle claims promptly in post-catastrophe situations.

The incumbent contractor provides quality control over the loss investigations made by WYO (and the NFIP Direct Servicing Agent Contractor) loss adjustment processing, the contractor establishes catastrophe and coordination offices in the event of large scale or severe flooding for the purposes of expediting claims and coordination with Write Your Own (WYO) companies, wind pool, beach plan and FAIR Plan insurers, Servicing Agent contractor and Federal disaster assistance personnel.

NFIP IT Services are performed by a separate contractor and encompass WYO and other reporting systems and provides support to the BS&A. The BS&A in turn provides a change control board for the purpose of developing system requirements analysis and documentation to address any new requirements from legislation, GAO or other mandated changes and coordinates these with the NFIP IT Services contractor. The BS&A provides the systems testing to ensure that required changes are accurate before placed in production.

Through a central office and field offices, the Contractor conducts outreach in support of Program insurance and floodplain management objectives and in support of the FEMA Regional Offices.

C.l.2 Procurement Objectives

The objectives of this procurement are:

a. Maintain, in an uninterrupted manner the support to the operation of the WYO Financial Control Plan (FCP) particularly, and support new processes related to the modernized Transaction Record Reporting and Processing (TRRP) Plan for the NFIP;

b. Help coordinate operations of the NFIP with Government hazard mitigation and disaster response activities;

c. Provide the capability for technical assistance, and the preparation and provision of materials for the NFIP Direct Servicing Agent, program stakeholders and the WYO companies to support efficient program operations.;

d. Operate as a financial reporting agent and review and report on compliance with the requirements of the WYO FCP;

e. Operate, on behalf of the Government, as statistical analyst for all aspects of the program, including NFIP policy and claims experience; provide expert actuarial, claims, underwriting, planning and financial management analysis and assistance to the Government;

f. Coordinate claims quality control, re-inspection, WYO special assistance and special projects analysis, and salvage and subrogation activities on behalf of the Government;

g. Coordinate communication and information dissemination through the BSA Clearinghouse with the WYO companies, the NFIP Direct Servicing Agent, the NFIP Training contractor, the NFIP Call Center contractor and program stakeholders.

h. Provide technical assistance, systems testing, and requirements analysis for all system changes through a Bureau Change Control Board that provides support to a contractor to be selected for the operations, maintenance and continuous improvement of FEMA’s NFIP IT systems modernization resulting architecture.

i. Provide expert policy analyses, technical advice, and support to the Mitigation Division’s Risk Insurance Branch, particularly in the areas of Claims and Underwriting as its relates to private property insurance industry practices. This requirement would entail high level technical support for writing and developing Technical Assistance Bulletins, Policy Issuance Bulletins, Issues (White) Papers and drafting responses to NFIP Constituent concerns on behalf of Mitigation.

C.2 Project Management

C.2.1 Program Management Plans

a. Within10 calendar days following contract award, the Contractor shall meet with the Government to provide a briefing on the Contractor's approach to managing the future contract and provide all points-of-contact information. Within 20 calendar days of contract award, the Contractor shall provide the following management plans, drafts of which shall be submitted with the technical proposal, for the Government's review and approval.

1. Project Management Plan

2. Transition Plan (Phase-In and Phase-out)

3. Disaster Recovery, Security and Continuity of Operations Plan

4. Quality Control Plan

b. The Contractor shall incorporate Government comments into the final plans within 10 calendar days of receipt and provide periodic plan updates, as required by the Government.

C.2.1.1 Project Management Plan

a. The Contractor shall provide a Project Management Plan that describes the Contractor's understanding of the Bureau and Statistical Agent requirements and explains how the Contractor will manage the effort to meet all requirements. The Contractor shall explain the management structure of its Bureau and Statistical Agent team, including an organizational chart showing the Program Manager and the main points of contact (POCs) with the Government and any subsidiary management structure. The Project Management Plan shall also identify any subcontracts and describe subcontractor management, roles, and responsibilities. The plan shall explain the management control and reporting systems that will be necessary to assure full and complete compliance with the terms and conditions of this contract.

b. The Project Management Plan shall explain how the Contractor’s corporate – level management will respond to and correct any problems, complaints, and/or conflicts over its team’s performance of the contract.

C.2.1.2 Contract Transition Plans

The Contractor shall provide phase-in and phase-out transition plans that describe how the Contractor will transition, with minimum disruption to FEMA's Bureau and Statistical operations.

C.2.I.2.I Phase-In Plan

a. The Government will provide the Contractor with a phase-in period not to exceed 180 calendar days for the transition during which the contractor shall overlap with the current contract. During the phase-in period, the Contractor shall become familiar with performance requirements, establish the management organization, and finalize the required plan. The Contractor shall assume duties under this PWS at the conclusion of the 180 day transition phase-in period. At a minimum, the Contractor shall address the following areas in the Transition Phase-In Plan:

1. Interface and coordination with the Government;

2. Identification of key transition events and objectives including a transition schedule.

3. Identification of key persons participating in the transition including authority of Contractor management during transition;

4. Specific actions that will be taken to alleviate problems during the transition; and

5. Participation with the incumbent Bureau and Statistical Agent to catalog, transfer, receive and accept materials.

b. The Contractor shall submit Weekly Progress Reports by each Wednesday of the week immediately following the week on which work is conducted. The Progress Report shall address as a minimum:

1. A brief description of what was planned and what was accomplished during the reporting period;

2. A brief outline, by task and/or sub-task, of what is planned for accomplishment during the next four (4) weeks (or to the end of the transition period if less than four weeks is left in the transition period); and

3. Problems or delays experienced and specific actions required to alleviate the problems.

c. The Contractor shall attend a Consolidated NFIP Weekly Progress Review meeting during transition phase-in period that will be held once a week with: (a) the NFIP Contracting Officer’s Technical Representative (COTR) and the Contracting Officer; and (b) the incumbent Contractor, (c) the Training contractor, (d) and the Call Center contractor to ensure a seamless transition of services. The meeting shall address progress, planned work and any problems with potential solutions. Training and Call Center work previously performed by the incumbent contractor are being performed under separate contracts.

C.2.1.2.2 Phase-Out Plan

As directed by the COTR, the Contractor shall prepare a plan to ensure a smooth transition to a successor. The plan shall address specific phase-out milestones, actions that implement cooperation with the successor, transfer of property to the successor, transfer of portions or the entire Bureau and Statistical Agent, operations and procedures to ensure full continuity. The Contractor shall also address the following areas in the Phase-Out Plan:

a. Transition of materials and Local Area Network (LAN) files and related materials at any time the Government determines performance by the Contractor is no longer required;

b. Transition of selected data and LAN data, data files, audit trails, back-ups, and hard copy forms received, produced, and maintained throughout the life of the contract;

c. Transition of all software used in the performance of this contract and title or license there;

d. Preparation of a final report outlining all work accomplished under this contract and the problems encountered. The report shall include recommendations regarding the future performance of services specified in this contract;

e. Specific actions to be taken to negotiate the sale to the Government or the successor, of the equipment, furnishings and other items acquired by the Contractor for its own account but utilized Bureau and Statistical Agent operations and depreciated as other direct costs allowable under the terms of the contract:

f. Transition to the successor of records concerning all outstanding checks issued by the Contractor, which have not been negotiated by the payees so that such information shall be available for inquiries, which may be received, by the successor;

g. Procedures to be taken to allow the successor reasonable access, as determined by the Contracting Officer, to the facilities and staff of the incumbent Contractor;

h. Specific actions to be taken to transfer the performance of services to a successor including provisions for coordination of efforts and assistance;

i. Specific actions to be taken to document, and maintain the NFIP Bureau and Statistical LAN systems in such a manner as to ensure smooth and orderly transition to alternate hardware or software systems or service suppliers, in the event another organization is selected to perform all or a portion of the services called for under the contract;

j. Specific actions to be taken to conduct all transition activities in a manner which will comply with a supplied schedule and procedures which will ensure uninterrupted service by the Bureau and Statistical Agent and allow the Government to meet time critical schedules.

k. Transition of reports, correspondence, manuals, publications, back-up materials, etc., created in performance of the various aspects of the Bureau and Statistical Agent contract.

l. The Contractor shall attend a Weekly Progress Review that will be held once a week with: (a) the NFIP Contracting Officer’s Technical Representative and the Contracting Officer; and (b) the incumbent Contractor. The meeting shall address progress, planned work and problems.

C.2.1.3 Disaster Recovery, Security and Continuity of Operations Plan

The Contractor shall develop and maintain implementation plans and guidance for its staff concerning disaster recovery and continuity of operations to handle special and emergency circumstances that could jeopardize FEMA system requirements. The Contractor shall develop and, at least annually, review, test and update the Disaster Recovery, Security and Continuity of Operations Plan. The Plan must enable the downed system to be available in three calendar days or less. The entire system shall be able to operate from the disaster recovery site for an extended period of several months. The disaster recovery tests shall prove that the disaster site can be occupied within 24 hours notice and that the system can be established and operational in not more than three calendar days from notice by the Government. The security controls required by the Facility Security Plan shall not be compromised during either the occupation or return from the disaster recovery facility. The Contractor shall demonstrate continuity of operations by performing transportability tests and disaster recovery tests.

C.2.1.4 Quality Control Plan

a. Quality Control is the monitoring and oversight performed by the Contractor to ensure that work is accomplished in accordance with the terms of the contract. Quality Assurance, discussed in Section E, is performed by the Government for the purpose of verifying that the Contractor is performing the work as required by the contract and that the Contractor's quality control program is viable.

b. The Contractor shall provide services in accordance with the terms of this contract. The Contractor shall develop a Quality Control Plan, which includes the following elements:

1. An internal quality control, inspection, and feedback system to facilitate internal and external monitoring and auditing;

2. A program of internal audit, analysis and reporting;

3. Procedures to ensure compliance with Federal and Program regulations;

4. Plans to collaborate with other NFIP contractors to develop an effective system to ensure continuous improvement in program operations, particularly in the areas of cost effectiveness, control and data integrity.

5. Plans to collaborate with other NFIP contractors to develop an effective system to analyze data quality, to capture and report trends and to initiate action in response to these trends.

C.3 Contract Management Reporting Requirements

a. The Contractor shall submit monthly management reports, financial reports and participate in quarterly Contract/Project Management Status Reviews. The Contractor shall provide monthly project management reports, covering projects planned and accomplished during each month of the contract. For specific projects identified by the COTR, the Contractor shall provide estimated staffing resources and other resource expenditures versus planned efforts for the development and implementation period.

b. The Contractor shall conduct for the Government a quarterly review of actual versus planned contract staffing and operating costs. The Contractor shall conduct this review to assure Government understanding of all issues. The Contractor shall present detailed supporting documentation for all invoices submitted for payment during the subject period and explain deviations from forecasted expense levels.

c. The Contractor shall deliver all monthly project management and financial reports in accordance with the timetable established in Section F, Deliveries or Performance, of this contract.

C.4 Financial Management

C.4.1 Accounting and Financial Control Requirements

a. The Contractor shall be responsible for the overall operation of a comprehensive accounting system for the NFIP and for the financial aspects of the WYO Financial Control Plan. The accounting system shall support the requirements of the Chief Financial Officers Act of 1990, the financial controls of OMB Bulletin #1-09, and the preparation of consolidated financial statements and reports. The system shall support information needs for effective cash management and control of Federal funds.

b. The Contractor shall provide adequate generally accepted internal controls for cash receipts and disbursements and perform a monthly reconciliation of all receipts and disbursements.

c. The Contractor shall monitor remittances from the WYO companies, the NFIP Servicing Agent, and others to Government designated automated clearinghouse accounts or banks. The Contractor shall assist the Government in resolving any issues.

d. The Contractor shall maintain an automated general ledger (G/L) on an accrual basis in conformance with Generally Accepted Accounting Principles (GAAP). However, the G/L should have the capability to interface with the FEMA accounting system, IFMIS (Integrated Financial Management Information System) that requires U.S. Government Standard General Ledger accounts format, Treasury Financial Manual. Supplement S-2 for reports to FEMA.

e. The Contractor shall perform the reconciliation of G/L accounts and adjusting entries on a monthly basis.

f. The Contractor shall, on a monthly basis, reconcile G/L accounts to supporting records, i.e., TRRP Plan submissions, adjustments, etc., to validate accruals of income and expenses.

g. The Contractor shall provide a detailed audit trail of all transactions.

h. The Contractor shall maintain back-up copies of all financial data and reports that are no longer accessible on-line. This information shall be made available on-line within 48 hours after it is requested. Financial records shall be maintained in accordance with FEMA Manual 5400.1. The media used for record keeping shall be in compliance with the Federal Records Act, National Archives and Records Administration regulations, and guidance provided by the FEMA records officer.

i. The contractor will be required at the direction of the COTR to provide an automated interface to IFMIS once the IFMIS system is able to communicate with other systems and made operational. The interface should at a minimum update IFMIS with cash deposits, disbursements and supporting data for accounting reports. The specifications will be based upon IFMIS requirements.

j. The contractor shall adhere to the file naming, security, date cutoffs, and other data processing standards that are used for IFMIS that may be dictated by IFMIS or FEMA.

C.4.2 Accounting Reports

a. Each month the Contractor shall submit consolidated financial statements to the FEMA Chief Financial Officer. These reports will be due by the 5th calendar day of the month following the receipt of WYO companies and NFIP Servicing Agent monthly reports. Financial statements, at a minimum, consist of a Balance Sheet, Income Statement, Statement of Changes in Financial Position, and Statement of Cash Flows. The Contractor shall prepare monthly financial statements in accordance with GAAP and include footnotes for clarification. Annual statements shall include all appropriate footnotes and disclosures in accordance with GAAP.

b. Each month the Contractor shall submit a consolidated report on WYO companies and Servicing Agent remittances to the U.S. Treasury by the 12th calendar day of the second month following the month of remittance, e.g., June data reported by August 12th

c. By the 3rd workday of the month following the month of deposit, the Contractor shall submit a detailed report on the deposits it has made.

d. By the 15th calendar day of the month following, the Contractor shall submit a detailed monthly report to account for its expenses reimbursed through its Letter of Credit. The report shall certify that funds were used as appropriate.

e. By July 31, the contractor shall provide to the COTR and FEMA’s Chief Financial Officer a copy of the current years SAS70 report that was conducted by the contractors’ auditors.

C.5 Underwriting Requirements

a. The Contractor shall provide professional underwriting support to respond to the needs of policyholders, FEMA, the Mitigation Division, the WYO companies, the NFIP Servicing Agent, and the other FEMA Contractors and Stakeholders in the implementation of the NFIP. Such support shall include but not be limited to:

1. Answering and tracking specific questions and correspondence;

2. Framing policy issues, options, and recommendations for resolution by the Mitigation Division;

3. Developing, subject to the Contracting Officer’s Technical Representative’s approval, policy documentation and procedures for key underwriting issues and activities;

4. Reviewing NFIP and WYO materials for program consistency; and accuracy.

5. Providing technical assistance to WYO companies and the NFIP Servicing Agent.

6. For refunds beyond the most current two terms, gathering rating and payment information, calculating refund, authorizing and initiating prior term refunds;

7. Developing and updating the Flood Insurance Manual semi-annually;

8. Coordinating Coastal Barrier Resources Act (CBRA) eligibility with Fish and Wildlife.

9. Reviewing and recommending approval of Preferred Risk Policy (PRP) appeals for resolution by the Mitigation Division.

10. Review Severe Repetitive Loss Appeals and provide recommendation to the COTR as to the disposition. If denied, a letter is prepared and if approved a copy of the file is sent to a) FEMA, b) the NFIP Direct who services these policies, and c) ISO for updating their records.

b. The Contractor shall support the implementation of the WYO FCP third-party audits and examinations; assist in the review, analyses and reconciliation of policy transaction data and trends; and, provide advice and feedback to the WYO companies, FEMA and the Mitigation Division. Subject to COTR approval, the Contractor shall establish programs for underwriting analyses assuring the integrity of WYO underwriting data and reporting.

c. The Contractor shall coordinate, support the WYO companies, and maintain records for the processing of submit-for-rate (SFR) policies. For designated companies, the Contractor shall process the SFR policies as requested by these companies. Processing may include: underwriting and rating, referral through the Contracting Officer’s Technical Representative’s to Mitigation underwriting or other FEMA organizations, delivery of the application and associated materials for processing by the NFIP Servicing Agent with provision for the renewal to be by the WYO Company. Alternatively, the Contractor shall review SFR policies processed by WYO companies. This includes preparing packages of SFR quotes to the Compliance Sections of NFIP Regional Offices

d. The Contractor shall utilize the Flood Rating Engine Environment (FREE) provided by NFIP IT services, for new business quotes and pilot testing new rates renewal transactions and endorsements. The program shall include but not be limited to the following:

1. Coastal Barrier Resource Act (CBRA) area building violations;

2. Preferred risk policy eligibility based on zone and loss history, and

3. Other risk verification programs deemed essential as authorized and directed by the Contracting Officer’s Technical Representative.

e. Upon written direction of the COTR, the Contractor shall, within such limitations as the COTR may deem appropriate, troubleshoot problems for FEMA, insured persons, WYO companies and agents, as they relate to specific NFIP risks by assigning the risk for physical inspection by one of its own qualified staff for further investigation.

f. The Contractor shall receive, resolve and track (using NFIP IT systems) underwriting inquiries and coverage problems referred by FEMA, the Mitigation Division, insured’s, agents, WYO companies, State insurance departments, and others. All underwriting files where there is a question of coverage involving policy interpretation shall be promptly forwarded or referred to the Mitigation through the COTR for disposition.

g. The Contractor shall collect information about underwriting problems (using NFIP IT systems). The Contractor shall support the exchange of underwriting information between WYO companies, the NFIP Servicing Agent, and the Mitigation Division. The Contractor shall, under the direction of the COTR, develop and disseminate underwriting bulletins concerning the Mitigation’s decisions on underwriting issues.

h. The Contractor shall, under the direction of the COTR, plan and support a program of condominium inspection. The Contractor shall provide feedback to the Mitigation Division, WYO companies, and the NFIP Servicing Agent, through the COTR, on underwriting matters arising from condominium inspection and follow up to ensure that WYO companies resolve discrepancies (with support of NFIP IT systems).

i. The Contractor shall upon approval by the COTR prepare and execute an annual plan of special underwriting projects and analyses. These projects may involve a sampling or an intense review of underwriting files and/or a field survey of specifically identified areas (e.g. Coastal Barrier areas, high value properties, elevated buildings, etc.) the contractor shall also support, as requested by the COTR, other ad hoc special underwriting analyses.

C.6 Claims Administration Requirements C.6.1 Claims Administration

a. The Contractor shall provide expert professional support to respond to the needs of the Mitigation Division, the WYO companies, and the NFIP Servicing Agent and other Contractors in the implementation of the NFIP claims program. Such support shall include but not be limited to:

1. Answering and tracking (using NFIP IT systems) specific questions and correspondence;

2. Framing policy issues for resolution by the Mitigation Division;

3. Reviewing or developing manuals, and other materials; and

4. Developing, subject to Contracting Officer’s Technical Representative approval, policy documentation, tracking, reexamination, and re-inspection procedures for key claims issues and activities, (e.g., adjuster management, subrogation, and disaster coordination).

5. Adjuster Management (e.g. registration and certification, etc.)

6. Providing special assistance to the WYO companies on claims issues.

b. The Contractor shall coordinate, as directed by the COTR, claims activities of WYO companies, the NFIP Servicing Agent, Wind-Pools, and Beach Plans, and as appropriate, other Government programs. The Contractor shall provide information, including data base access to coverage information, and other support, as required by the COTR. Subject to Contracting Officer’s Technical Representative approval, the Contractor shall establish programs for assuring the integrity of WYO claims data and reporting.

c. The Contractor shall plan and support a program of claim re-inspection. The Contractor shall provide feedback to Mitigation, the WYO companies, and the NFIP Servicing Agent, through the Contracting Officer’s Technical Representative, on claims matters arising from re-inspections including common issues and trends. The Contractor shall analyze and summarize the results of the re-inspections at the close of each fiscal year and provide a report to the COTR and to Risk Insurance Claims Chief annually.

d. The Contractor shall be the focal point for the collection of information about coverage problems and other claims matters. The Contractor shall support the exchange of information between the WYO companies, the NFIP Servicing Agent, and the Mitigation Division (using NFIP IT systems). All claims where there is a question of coverage involving policy interpretation shall be promptly forwarded or referred to the Mitigation Division through the Contracting Officer’s Technical Representative for disposition. The Contractor shall develop and disseminate claims bulletins concerning Mitigation’s decisions on these issues.

e. The Contractor shall, within such limitations as the COTR, may deem appropriate; troubleshoot problems for FEMA, the Mitigation Division, insured persons, WYO companies, adjusters and agents as they relate to specific claims by assigning the claim to its own qualified staff adjuster and/or examiner for further investigation and/or disposition.

f. The Contractor shall review and track (using NFIP IT systems) Special Allocated Expense requests received from the WYO companies and the NFIP Servicing Agent and approve the requests, as authorized by the COTR, or make payment recommendations to the Mitigation Division, in accordance with FEMA guidelines.

g. The Contractor shall upon approval by the COTR, prepare and execute an annual plan of special claims projects and analyses. These projects may involve a sampling or an intense review of claims files and/or a field survey of specifically identified areas (e.g., Single Adjusted losses, Condominiums, Increased Cost of Compliance (ICC), repetitive loss, subrogation, etc). The Contractor shall also support, as required, other ad hoc special claims analyses.

h. The Contractor shall assist in the WYO company claims adjustment process by responding to requests from the WYO companies or the NFIP Servicing Agent for prior claims information contained in the AIS and/or in TRRP Plan data files. The Contractor shall, as appropriate, direct requestors to another WYO company or to the NFIP Servicing Agent for information and related underwriting data. Claims and other information forwarded to WYO companies shall only be that information identified in the FEMA Routine Uses as published in the Federal Register pursuant to the Privacy Act.

i. The Contractor shall upon approval by the COTR, prepare and execute an annual plan of special claims projects and analyses. These projects may involve a sampling or an intense review of claim files and/or a field survey of specifically identified areas (e.g. Coastal Barrier areas, Severe Repetitive Loss properties, high value properties, elevated buildings, etc.) the contractor shall also support, as requested by the Contracting Officer’s Technical Representative, other ad hoc special claims analyses.

j. The Contractor shall review Special Allocated Expenses incurred by the Direct Side as well as the WYO companies when necessary to assign a structural engineer to inspect an insured property in order to determine the cause and extent of damage, or if a commercial account suffers a large inventory loss and a review of the books and records by a Certified Public Accountant is required to establish the pre and post loss inventory damages. The reports of the experts and their bills are submitted to the BSA for review and approval.

k. The Contractor shall submit all SALAE’s and legal billings for claims in litigation through the COTR to the Risk Insurance, Claims Chief for approval. If travel expenses are submitted they must be documented and approved by the WYO carrier.

C.6.2 Flood Disaster Response

a. The Contractor shall monitor weather conditions and in the event of a flood disaster, and as soon as practicable, shall survey the disaster area and assess the extent of damage caused by flooding and advise the COTR as to the need to establish field offices. Damage survey information will be communicated to the Mitigation Division, WYO companies with policies in the affected area and to the NFIP Servicing Agent. In addition, as indicated by survey results, and in consultation with the COTR, the Contractor shall designate a flood disaster event number to be used by the WYO companies and the NFIP Servicing Agent for tracking and reporting of event-related claims (using NFIP IT systems).

b. The Contractor shall, as directed by the COTR, establish, administer and operate Flood Response Offices (FROs) and Claims Coordinating Offices (CCOs) to promote and assist the efficient adjustment and settlement of NFIP losses.

c. The Contractor shall prepare to deploy, within 24 hours of notice by the COTR, no fewer than five (5) FRO disaster teams and four (4) CCO disaster teams, including bilingual members, as appropriate. Each team shall be prepared to establish a FRO and/or a CCO and begin operations, potentially including WYO and other claims coordination in the flooded areas. The Contractor shall also be prepared to field, within seven calendar days of notice, additional back-up team(s) to conduct FRO activities, in the event of six (6) or more geographically distant but simultaneous flood disasters.

d. FRO activities shall provide a local program presence, provide assistance, training and support to WYO companies and the NFIP Servicing Agent, contact agents, conduct surveys and re- inspections, and disseminate forms, and information as needed. The Contractor shall, in keeping with FEMA guidelines, perform, provide training, and coordinate with other Government operations.

e. CCO activities shall provide for the systematic identification of wind and flood losses at the same property address followed by assignment of the loss to a single adjuster who represents both insurers. Adjuster assignments are made, controlled, and monitored for the NFIP, WYO companies and Coastal Plans, and other property insurers (e.g., stand- alone wind) at the CCOs pursuant to each State Coastal Plan's agreement. The CCO will be co-located with or near the State Coastal Plan, where appropriate or pursuant to annual Single Adjuster agreements entered into with each State Coastal Plan for the handling of Wind/Water losses within 24 hours of landfall of a storm. The Contractor shall track and report to participating companies and the Mitigation Division single adjuster assignments and performance.

f. The Contractor shall assist the WYO companies by providing guidelines, certified adjuster listings with qualifications, and other assistance in the coordination of disaster activities.

g. The Contractor shall develop, for COTR approval; procedures, guidelines, and other needed materials to facilitate coordination of involved WYO companies and the NFIP Servicing Agent in the event of catastrophic flooding. In the event of such catastrophic flooding, the Contractor shall work to coordinate activities of the WYO companies with the FRO or CCO as well as with any other Government disaster assistance activities as approved by the COTR. Such coordination shall include, but not be limited to matters related to the following:

1. Surveys;

2. Salvage and subrogation;

3. Single adjuster (wind and water) assignments; and

4. Re-inspections

h. The FROs and CCOs established by the Contractor shall serve as on-site emergency supply centers for forms, printed supplies and other information to expedite claims processing.

C.7 Program Management Requirements

C.7.1 Program Support

a. The Contractor shall, furnish knowledgeable and experienced staff to research, analyze and make recommendations concerning the conduct of the Program and support the Mitigation Division’s response to case-by-case inquiries, including underwriting, claims, financial controls, procedures, rate and rule changes, etc.

b. The Contractor shall develop, all necessary materials including but not limited to, forms, rate tables, flood insurance manual, other program guides and manuals, memoranda, TRRP Plan and accounting procedures and manuals for implementing rate and rule changes. Contractor activity shall be closely coordinated with the Mitigation’s COTR.

C.7.2 Change Management Requirements

a. The Contractor shall support and coordinate with the FEMA’s NFIP IT Services Contractor through FEMA’s Change Control Board (CCB) all systems changes required to receive and process data submitted by WYO companies and the NFIP Direct Servicing Agent in response to rate and rule changes in a manner that maintains Statistical and Bureau activities.

b. The Contractor shall effectively facilitate usage of NFIP IT Services’ Simple and Quick Access Net (SQANet) reporting in support of Program development and other activities, including regularly scheduled, ad hoc, and special automated and non-automated reports. The Contractor shall be responsible for assisting requesters with their requirements, maximizing the use of existing routine reports, or supporting on-call reporting and assuring the economy, responsiveness and integrity of information provided by NFIP IT services, particularly those produced in response to Freedom of Information Act (FOIA) requests.

C.7.2.1 Reference and Other files

The Contractor shall have access to systems (provided by NFIP IT Services contractor) for the maintenance and quality control of files required for processing and servicing of policy applications, renewals, and endorsements. The Contractor shall support and participate in processes to maintain NFIP reference data, which are utilized in the servicing of flood insurance policies and for other purposes. The data includes the following:

1. Community data;

2. Address and address cross reference data

3. Repetitive Loss History data;

4. Severe Repetitive Loss data

5. CBRS properties data;

6. Section 1316 and other special property data;

7. Condominium inspection data;

8. Claims Re-inspection data;

9. Submit-for-Rate data

10. Monroe County Pilot Inspection Program data and ineligible lists

11. Preferred Risk Policy ineligible data

12. NFIP Litigation file

b. The Contractor shall support developing requirements for and testing, updates to the Flood Rating Engine Environment (FREE) rating modules and edits. With the assistance of the Contracting Officer’s Technical Representative, and the NFIP IT Services Contractor, the Contractor shall support and reconcile processes for any problems related to policy rating.

c. The Contractor shall update information, provided by the Mitigation Division, to update community data indicating program status, Community Rating System (CRS) classification, etc using NFIP IT systems. The Contractor shall also support processes related to Community data, rating zone and other data, which shall be extracted from copies of FEMA Flood Hazard Boundary and Flood Insurance Rate Maps. The Contractor shall monitor the quality of this data and participate in and support the comparison of this data with data maintained by the Mitigation Division and/or other FEMA contractors. Additionally, and in accordance with Federal Regulations, FEMA, through its Bureau and Statistical Agent Services contractor shall send a notice to all policyholders whom are identified as having property in a community that may be placed on probation for floodplain management violations.

C.7.2.2 Data Consolidation and TRRP Reporting

a. The Contractor shall coordinate with the NFIP IT Services contractor in, comprehensive data consolidation and statistical reporting system for the NFIP. NFIP IT services will be responsible for collecting and reporting on the operations of the WYO companies and the NFIP Servicing Agent. The BSA Services Contractor will use these data extensively in supporting the management of the Program, in actuarial and other analyses and in measuring progress toward Program goals.

a. Monthly the Contractor shall coordinate data consolidation with the NFIP IT services contractor, and relate the financial data to the statistical data submitted by WYO companies and the Servicing Agent in accordance with the TRRP Plan. The contractor shall report and otherwise provide support as set forth in subparagraphs 1 through 8, following.

1. Review of each company's and the NFIP Servicing Agent's monthly financial and statistical reports for completeness and reasonableness and resolve any discrepancies;

2. Work in coordination with NFIP IT services to post each company's and the NFIP Servicing Agent's financial data to the NFIP general ledger system;

3. Work in coordination with NFIP IT services to produce monthly and annual, individual WYO Company and NFIP Servicing Agent and consolidated financial statements in specified formats;

4. Work in coordination with NFIP IT services to provide monthly and annual reports on Letter of Credit draw-downs reported by WYO companies and the NFIP Servicing Agent; and

5. Provide ad hoc analyses, assessments and reports to the Mitigation Division and support, required Government and independent reviews and audits,

6. Assist the NFIP IT Services Contractor, Government and the WYO companies in the resolution of data submission and correction problems and where possible facilitates the program of data submission monitoring established for the TRRP Plan.

7. The Contractor shall support and as directed by the Contracting Officer’s Technical Representative in coordination with NFIP IT Services, analyze and develop requirements for enhancements to systems and processes for providing data editing results and for facilitating the correction and resubmission of data.

8. The Contractor shall provide support to the Mitigation Division and to the WYO Standards Committee, including such reports and analyses necessary for exercising oversight of WYO Company and NFIP Servicing Agent performance under the FCP.

C.7.2.3 Data Monitoring Requirements

a. The Contractor shall support TRRP Plan processes for the receipt of data from the WYO companies and from the NFIP Servicing Agent. The Contractor shall facilitate processes for the submission and receipt of the data in a timely and accurate fashion.

b. TRRP Plan data shall be validated, edited and audited in detail and shall be compared and balanced against WYO and NFIP Servicing Agent reports of receipts, remittances to the Treasury, draw downs and disbursements.

c. The Contractor shall support maintenance and as authorized by the Contracting Officer’s Technical Representative in coordination with NFIP IT Services, pursue requirements analysis to enhance the TRRP Plan and the WYO Edit Specification documents.

C.7.3 Actuarial Support Requirements

C.7.3.1 Actuarial Information Services (AIS)

a. The Contractor shall support and, as authorized by the Contracting Officer’s Technical Representative in coordination with NFIP IT Services, analyze and develop requirements for enhancements for comprehensive data collection and reporting with the NFIP IT Service’s SQANet which encompasses all NFIP operations, including WYO Company and NFIP Servicing Agent experience.

b. AIS shall be utilized for analyses, developing and reporting of NFIP insurance experience on an accident year basis, to provide for special reporting to determine past and present distribution of business, measure and analyze trends, provide data for input to rate setting models, and otherwise support the actuarial needs of the Program.

c. AIS shall provide the ability to develop insurance experience on the types of NFIP coverage for classifications and zones, distribution of business, distribution of claims and country-wide underwriting experience.

d. The Contractor shall coordinate with NFIP IT services and as authorized by the Contracting Officer’s Technical Representative in cooperation with NFIP IT Services develop requirements to enhance the AIS Statistical Plan.

C.7.3.2 Analytic and Actuarial Support

The Contractor shall provide expert and analytic support to respond to the needs of the Mitigation Division in implementing and making policy decisions for the NFIP. Such support shall include but not be limited to:

1. Answering specific questions;

2. Framing policy issues for resolution by the Mitigation Division;

3. Reviewing or updating, as approved by the COTR in coordination with NFIP IT Services, documents and other materials such as the TRRP Plan and AIS Statistical Plan;

4. Reviewing and developing analytical and management reports;

5. Annual Rate Reviews and development of appropriate rate and rule revisions;

6. Ad hoc analyses for reviewing insurance experience, pricing and product development;

7. Ad hoc analyses as directed by the Contracting Officer’s Technical Representative are in support of the mitigation and risk assessment aspects of the NFIP.

8. Ad hoc analyses in support of budgeting, planning, and evaluation of the NFIP, as directed by the Contracting Officer’s Technical Representative.

C.7.3.3 Quality Assurance of Actuarial Data

a. The Contractor shall maintain an AIS statistical plan in cooperation with NFIP IT Services and, for all operations, documentation that provides information regarding usability of data, data element definition, common definitions for controlling report development and report descriptions for use by technical staff and non-technical end users.

b. The Contractor shall, for all actuarial activities, assure the quality, consistency and reliability of data and reports among themselves, to the regular reports generated by operation of the WYO TRRP Plan and the FCP in cooperation with NFIP IT Services.

c. The Contractor shall develop requirements in cooperation with NFIP IT Services to enhance NFIP IT systems, of actuarial and statistical reports to serve the needs of the Mitigation Division, FEMA, the WYO companies and other designated entities. Actuarial reports shall be timely and accurate and shall at a minimum, support the semiannual rate reviews, any annual rate revision process, and ad hoc analyses.

d. The Contractor shall facilitate controlled dissemination and/or access processes to NFIP system(s) data to designated FEMA and Mitigation Division Offices, e.g. the Office of the Inspector General, Regional Offices, etc. via hard copy reports, and in coordination with NFIP IT Services for online access. The Contractor shall analyze and formulate recommendations to FEMA of changes to enhance the timely dissemination of data to designated users and assure that they are met in the most appropriate and cost-effective fashion.

e. The Contractor shall participate in maintaining a detailed data element dictionary and catalog of regular, periodic, and on-demand reports in cooperation with NFIP IT Services.

f. In concert with the Government and in cooperation with NFIP IT Services, the Contractor shall participate in a system of report and data controls and reconciliation to assure quality, consistency, comparability and economy in all data and reports provided to and for the Government, and generated for internal operations and control. The controls shall be exercised and the reconciliation shall be performed for all routinely created and all ad-hoc reporting.

g. The Contractor shall participate as an integral element of all actuarial and statistical reporting processes such as reviews and procedures as may be required to assure the control, quality, consistency and integrity of data and that all operations and reporting are conducted efficiently and economically in cooperation with NFIP IT Services.

h. The Contractor will facilitate reporting requirements analysis review for duplication and utility and all new reporting requests shall be examined to determine the most expeditious and economical manner in which to satisfy the requirement. These requirements shall apply to all reports, for directly written and WYO operations, including those reports generated for internal use by the NFIP IT Services Contractor as well as those provided for Government use.

C.8 Program Technical Assistance and Communications

C. 8 .1 Technical Assistance and Communications Requirements

a. The Contractor shall conduct programs of technical assistance and communications. These programs shall be conducted only after coordination with, and approval of the Contracting Officer’s Technical Representative. These programs may employ a wide range of new and existing methodologies and technology. They shall be conducted on behalf of all NFIP operations and shall, as appropriate, be coordinated with FEMA, the WYO companies and other FEMA Contractors.

b. The Contractor shall develop and supply descriptive materials and…