Combined Due Diligence Questions and Answers.docx

The growth goal was the 5%, which was hit most of the time. The campaign provided a very robust website, which has probably been the hub of the campaign; the campaign has been very hands on with the stakeholders, out there spreading the word. The stakeholders would be defined as the: consumers, agents, flood plain managers, other federal agencies, local officials.

· Does FEMA have any ideas for improvement?

Improvement should be a part of your solution. FEMA is expecting and looking for a bigger better and more successful campaign. If you look at the sample task, you will see the difficulties FEMA has had in the Midwest, if you look at market penetration; you will see we need penetration in many markets.

· What type of agent resistance are you seeing?

FEMA is experiencing agent and consumer resistant. Agents are the ones who make the sale of the policy possible. There are a lot of agents who don’t want to be bothered by flood insurance, it is complicated and difficult, so agents simply do not want to present it to their consumers.

· Many agents are saying homeowners don’t need it?

The agents tend to take offense when they hear a homeowner state they were told they didn’t need insurance. Agents will tend to say they never tell someone they don’t have enough insurance.

· What are the agents’ commissions?

FEMA explained relationship with the WYOs and Direct Servicing Agent (DSA). FEMA does pay WYO 30% of the total premium (expense allowance); this money doesn’t pay claims, but WYO does have a lot of flexibility with this money (within reason), so they can pay agents with it. On the Direct side FEMA pays 15% on renewals & new business; on the WYO side it varies because the companies are competing, have heard some in the high 20s. 98% of the business is through WYO, 2% is on DSA.

· Can we access the agent site?

Yes, do not need to be an agent to access.

· The COOP program is still in place supporting the agents?

Yes, it is very robust

· Is FEMA using segmentation schemes?

Yes, to an extent, very geographic, demographic, flood map related, target is adults 35+

· Does FEMA do yearly research reports?

Not as much as would be expected. OMB has to sign off on all research involving more than 10 people, so focus group work has been done on specific campaign elements, but it is tough to do on a higher scale.

Most of our policyholders are required by lender to have the flood insurance. We have seen growth in areas not required by lender.

· With the results (good growth & campaign) you have experience, what has contributed: the consumer advertising or has it been more of a pull through with agents delivering the policyholder?

It has been a combination of pull and push. The leads the program receives are with different media components: direct TV and mail drive a lot of people to the call center. Prior to this marketing contract FEMA also had a contract with Bozell (Cover America campaign). Previously (before Bozell), FEMA had relied on state officials to spread the word. In the mid-90s, when advertising started, FEMA had to get the agents up to speed quickly because the consumers were asking questions the agents needed to answer. The result has been an increased trust between the insurance industry and FEMA because the companies realized the government is not stealing their business.

· How does an agent qualify to be listed as a referral agent on the FloodSmart site?

They have to show proof of flood insurance training, and then request to be listed on the site.

· What is the homeowner perception when they go to the website and their agent isn’t listed, what is the next decision?

FEMA always refers homeowner to own agents, but this is one of the difficulties FEMA has.

· FEMA’s approach to and satisfaction with PR around the NFIP?

The sub-contractor currently on board has done a very good job, they have different aspects. One aspect is a Quick Response unit, if storms happening then they will send talking points out to those regions, for example: if you have a flood, here is how to file a claim; they also write a lot of articles for different trade publications, spring flood awareness, hurricane season outreach, and coordinating with External Affairs at FEMA.

New administration has more control over the messaging going out, so FEMA is adjusting to that change, moving docs through External Affairs. Public relations take time.

· Are there any other less explicit goals (other than 5% growth rate)? (Added-value, other recognition, operational, etc.)

No, but one goal has been to integrate FloodSmart with other FEMA areas, Risk MAP being the big one right now, so not competing with each other, instead everyone is giving the same message.

· How does the program office currently function (ie: the marketing team)?

FloodSmart team is the contractor. Harriette Kinberg and Mary Jo Vrem are part of the team.

· Is it a big marketing group on the government side?

No, it is fairly small, Mary Jo is the head of the contract, but there is a chain of command. It is not really a marketing team, between 10-12 people, but Mary Jo is lead on contract, and a couple of other employees are involved.

· Who does the maintenance on the website?

The maintenance is done at Mt. Weather. The IT issues are changing all the time. Flood Smart can update the website once a month, at Mt. Weather, which is a government run entity.

· Does the agency host the site?

Yes, it is behind the FEMA firewall, developed by FloodSmart, but FEMA hosts the site.

· Has the program conducted special Midwest campaigns?

Yes, a long time ago, during the floods of 1997 in the Dakotas, had a prediction that snow pack would be melting and flooding would be bad. This campaign was done under the Clinton administration, pulled quick television ads, marketing campaign, etc. In the Midwest the TV spots are on cable. The paid advertising is in (publications) Parade and US Weekend. The Midwest gets more PR. After the Iowa floods, the head of Mitigation wrote up a paid letter for publication of the poor penetration in the Midwest, asking people to buy flood insurance; not sure if it produced the results he wanted.

· Are you sharing media budgets?

Yes, it is expected to be between $8-10 million/yr., media is covered under the advanced payments and letter of credit clauses.

· Is direct mail used for retention and renewal?

Direct Mail is used for acquisition, renewal and win-back.

· In RFP, image concerns/perceptual, are you experiencing any image concerns? FEMA image concerns after Katrina? How would you assess the state of the image of the NFIP?

NFIP is becoming more identified and flood insurance is more of a household word, which is good. The program would like to get to the point where flood insurance is part of the household expenses and a value. The new leader at FEMA is looking at the goal of resistance, and having better results after a disaster.

About website, DHS is requiring Certification & Accreditation for the website, which can take up to 6 months, which is why the transition period is 6 mos. the new contractor will need to have their systems C&A’d.

· How do you envision the future relationship between the RiskMAP and FloodSmart programs?

The program and marketing contractor will continue to work with Risk MAP, hand in glove; the new MT Deputy Director is anxious to see this happen.

· Regarding the letter of credit feature, is that for a fixed amount or would it be for limits and schedule?

This is a fixed amount between $8-10 Million/year for Letter of Credit (LOC).

· Is COOP is included in the clause?

Yes

· Is the LOC solidified at the beginning of every year or flexible?

Historically LOC has been flexible, and FEMA expects the same moving forward.

· Can subcontractors pull from a letter of credit?

No, the Government only has a contractual relationship with the prime, the signatory to the contract.

· Can you please provide clarification on the awareness goal feedback and measurement? (L-2, 1.1.1) It is just a general statement trying to pull description for the whole procurement into one sentence; awareness is subordinate to the 5% net growth goal.

· Who do you consider primary audiences versus secondary audiences for the NFIP?

Primary audiences are prospective customers: homeowners, renters and business owners; secondary audiences are the distribution channel involved in flood insurance sales.

· Are there additional or new audiences that haven’t been introduced?

FEMA thinks there probably are, and are looking for the Offeror to bring ideas to the table for these customers. For example, lots of researchers say kids are a good place to focus, they will bug their parents to buy, not sure if that is the right route, but it is an example.

· How do you plan to handle special requests for work modifications outside the scope of the

SOW?

All requests for modifications should be within scope, anything outside scope should not be within this contract because that would be a new activity.

· For example, what if another Katrina happened, in a FFP environment; how would we be able to quickly react to the need of marketing?

This will be an IDIQ contract, so FEMA can have more than Five (5) Task Orders. In the example above, it is still within the scope of the contract because it is marketing; the program office would issue a new SOW, and another task order will be issued. The rates are fixed, but there is still flexibility for the needs of the government.

· (Reference above) This will either be a sub-task on a current task order or a new task order, correct?

Yes

· What is your vision for handling historical stakeholder conferences?

No major changes are envisioned at this time. The contractor will participate in the design and planning of the annual National Flood Conference. Conference registration, logistics, etc. will be performed by iService.

· What about other conferences which NFIP supports?

The only conference the NFIP envisions currently is the flood conference, but could be something come up, the program office would have to cross that bridge when we come to it. Other options to be explored, but six conferences are listed in the RFP and that is the expectation at the time. External affairs could also change something, but nothing is on the horizon.

· Can we bring a video to the oral presentation?

Yes

· Is there a specific format for the DVD (being recorded at orals)?

No, the program just wants a copy.

· Are the storyboards due on April 5th? (reference table, L-5) A thumbnail version of the storyboards is due on April 20th. The actual storyboard will be brought to the oral presentations.

· Do you have any idea when orals will be scheduled?

Not yet, FEMA still needs to confirm dates, they might be last week of April, first week of May.

· Under Creative section 5.6, can you clarify if each medium is to be represented and how many samples are allowed?

Relevant samples of each medium for the past performance cited in the summary list, Section L, paragraph 5.3, should be submitted. The limitation on the number of samples is set forth in sentence 2 of paragraph 5.6.

· Follow-up: There are other types of creative media which are not listed, is FEMA stating those cannot be included on the CD?

The program office would like to see the other creative medias.

· The RFP specifies that responses shall be on one side of the page. Is it permissible to use two columns per page?

Yes, provided the other requirements of Section L, paragraphs 3.5.1 and 3.5.2 are met, two columns are permissible.

· Resumes – do we have to use our copies or must use template? The RFP includes a resume template. Is that the required format or can we use our own resume format as long as we include information in the template?

Offerors may use their own resume format, as long as they include all the information needed. Acquisition could not find the resume template being referenced, and had checked fbo.gov recently; assumption is there was a problem on the website with the links.

· Please clarify the Travel Submission requirement. Do you want one year or each year for the full five years?

Yes, each year should be identified, base with each option year.

· Please clarify what should be included within or outside the 40-page limit in the response. For example, is the quality assurance plan included in the 40-page technical response? Are the appendices and/or the Personnel/Staffing sections included in the 40-pages?

No, as stated in Section L, paragraph 3.1, not included in the 40 page limit are: PowerPoint Slides, Storyboards, Quality Control Plan, Quality Assurance Surveillance Plan and Procurement Requirements, or Resumes.

· Can you please clarify whether or not that proprietary financial data is being reviewed by non-government personnel?

Proprietary information may be reviewed by non-government personnel. However, any such reviewers will be bound by Government non-disclosure prohibitions.

· On page 6 of the SOO it mentions the transition out plan, do we know the length of time for the transition out?

At this point, it is hard to estimate this timeframe, or what task order it will be within. The transition-out plan does not need to be part of the proposal, but would suggest it is addressed in a general sense.

· Orals: can we update a chart? FEMA will already have a sample.

Yes, as long as we have a sample, you can present the updated version.

· Section L 7.3 states for contract clauses, “complete fill in when applicable”. Is this a general statement or is there a form the Offeror needs to follow?

General statement, if the clause requires a form, it should be submitted with the proposal

· A lot of research says the problem with selling flood insurance is that people don’t think they will need it and if there is a flood, they will just receive govt. assistance. Do you know what that maximum amount of assistance is?

Yes, $29,900, but that is maximum amount, so it can be graduated down from there

· Insurance agents play a key role, what is FEMA’s relationship with agents?

FEMA has an arrangement with about 90 private insurance companies (WYO), a majority of them have agents. FEMA doesn’t have a contractual arrangement with any of these agents, just the companies. FEMA does have the Direct Servicing Agent (DSA) and those agents can write policies on govt. paper. A majority of the agents work through WYO companies, FEMA tries to give them tools, workshops, FloodSmart, talking points, etc to make their job easier but other than that the relationship is hands-off.

· Do the agents have to fulfill requirements?

Section 207 in the Flood Reform act, states that any agent selling flood insurance must complete training. FEMA doesn’t certify the agent, but the WYO companies are starting to push for training, which also helps fill the agents’ continuing education requirements. Most states do require agents to show some training for licensing. The training is basic; flood insurance does have some complex areas, so the training is more of an overview for the agents.

· Is a list of agents maintained?

Yes, agents.floodsmart.gov is where agents are asked to register and they can get free leads through the ad campaign. FEMA tries to make it as easy as possible for homeowners to connect with an agent, through the website or to call their own agent.

· Call center? Types of calls?

The call center maintained under this contract is where people can call in from the ads (direct mail or TV), they also can do warm transfers to send homeowner to an agent.

· Is there a centralized list if we wanted to do a mass mailing to agents available?

Yes, FEMA currently does newsletters, and alerts for agent.

· If an area is remapped/re-zoned, how are homeowners notified?

The lender usually does the notification, who by law is supposed to be on top of map changes. If a loan comes up for renewal, or the lender does a portfolio review they might realize there is a mapping reason to force flood insurance. Regulators of flood insurance do periodic reviews of lenders for flood insurance to make sure they are within compliance. They can charge an insurance company with a civil fine, but usually the regulator will work with the lender to bring them up to compliance. FEMA is seeing more “force placed” insurance lately, which is more expensive than if the homeowner purchases on their own, these types of policies give FEMA/NFIP a bad reputation.

· If someone gets flooded, they were in a high risk zone, and they weren’t notified when they purchased the home, can that go against lender?

Yes, the homeowner can pursue it, but there is no guarantee they will win.

· Transition is FFP?

Yes.

· Letter of Credit is requested, and we are not sure what FEMA is looking for or how to respond.

Letter of Credit is not a request for the Offeror to obtain a letter of credit, but is an advanced payment clause.

· Paragraph 3.5.1 talks about the size of paper, font, and all pages should be numbered consecutively, etc. The question focuses on the consecutively numbered pages, concerned because of resumes, different tabs, and how to number. Should it be one very long document or is there some flexibility?

As long as the page numbers are reasonable and understandable, that is fine; if FEMA can follow from one section to the next, no problem.

· Does FEMA have a stock response about the government not being in the insurance arena?

FEMA does not have a stock response. The NFIP is mandated by Congress.

· Some people think the flood insurance program causes people to build in a flood zone, there is a perception out there, does FEMA have a stock response to this perception?

There is probably an answer on FEMA website.

· Does the NFIP work closely with Citizens Corp. and ready.gov?

Yes, one of the FEMA representatives had been on a conference call with them and this dynamic is being encouraged.

· How is Citizens Corp.?

It seems to be going well with lots of motivated people.

· Can we FedEx the proposal or should we walk into the office?

As long as FEMA receives the proposal by the due date you can send however you wish; if you hand carry it in we will sign and date for it.

· Aside from regular funding, is there any legislative issues coming down the line we should know about for flood insurance?

Yes, but FEMA is not sure what is coming down the pipeline. The NFIP is on hiatus, but Congress keeps saying they are looking for reform. A hearing will be held on April 21st; Mr. Fugate will be speaking to the House, with Maxine Waters as the chairperson. There were a number of bills in 2007 and 2008, but FEMA is not sure if Congress will go that route or a new one.

Question about the reference of media expenses - $8-10Million/yr, this is correct?

Yes, that includes all the media buys, postage, TV, online, print, direct mail, all the LOC expenses.

· Contract administration is separate?

Yes.

· FEMA comment that the agents have rudimentary training. Is that training sufficient? Does the program have issues with it?

The insurance companies do training, but FEMA also has a training contractor who does instructor and Web-Ex for the agents, which has many people taking training. FEMA is moving towards more advanced and specialized training. Some agents are experts on flood insurance because they are in an area where the flood risk is high and insurance is needed.

· Some areas have more penetration, why?

Climate, Florida has the most policies, then Texas, coastlines have a greater penetration, New Jersey actually has a lot of polices. The Midwest is a very hard nut to crack, hence the sample task. For example, the Howard Hansen dam in Seattle; the dam was having issues, officials were concerned with overtopping and cracking leading to flooding. This threat led to lots of pushing of flood insurance by locals and agents, the program had a lot of penetration, leading the program to believe that local authorities really help penetration.

Once someone gets help from the SBA for a loan, they are required to have flood insurance moving forward if the person applied for disaster money. The SBA really pushed this requirement with the Get Wet program. FEMA does offer limited grants, but the loans are primarily through the SBA. The FEMA grant also has a flood insurance requirement, not just the SBA loan.

· We understand 5% policy growth. Is there anything we can’t propose?

Just read the constraints in SOO, you may propose changes, but should be cognizant of constraints you are working within, FEMA is always interested in new ideas.

· The contract is Firm Fixed Price, correct?

Yes.

· If someone is flooded and they do not have flood insurance, what does FEMA do?

First, the community has to be declared a federal disaster area, which has two types: Community is due assistance or individual assistance. Area has to be declared for individual assistance for homeowner to be eligible for funds. The individual needs to apply for help either online or phone.

One misconception is if a person gets flooded the government will help them, unless you are in a huge flooded area, then most likely you will be on your own to pay for your home/business.

This reasoning is why FEMA pushes flood insurance, there doesn’t need to be a declaration. The policy would cover if they flood farmland if the open up a dam to save a town. Yes, there is a definition of what is covered under the policy.

· Is the re-mapping process ongoing?

Yes, it is mandated by Congress, the maps are going digital and online.

· Do they re-map every year?

Not typically unless there is a major event, which will cause FEMA to go back and map. On Flood Smart’s website they have a mapping link for agents to know what is going on with the new maps. This link was done because agents didn’t know what was going on in their area and they needed to know the schedules for mapping. FEMA plans in the future to send alerts about mapping, to help agents stay ahead of maps.

· We have seen a lawsuit because of a map change, do you see that a lot?

Sorry, the program does not know that answer because that type of issue would be dealt with by the mapping folks.

· Does the program have a lot of contact with other government agencies?

NFIP partnered with NOAA on a spring flood awareness campaign, built interactive map with their data, and will be involved with them during hurricane season. The Corp of Engineers is dealt with at more of an arm’s length especially in the area of levees because the Corp used to tell people behind levees they could drop their flood insurance, this is not the message the NFIP wants communicated and after Katrina this needed to change quickly.

· Describe how things are going – program overall?

The program has been around for over forty years, but has always had difficulty convincing people of the need and value of flood insurance. Congress (in 1973) stated lenders must require flood insurance if a property is in a high risk area. The program has had to overcome a lot of resistance, especially since insurance was mandated. There are ways for homeowners to appeal zone designation. The program has grown; currently we have 5.6 million policies. In the mid-90s starting ad campaigns, at that point, had around 2 million policies, so it has increased. The program had a marketing contract with Bozell, then had a hiatus, then had (current) contract with JWT. The best way to explain the structure is to think of Congress as our Board of Directors; our current problem is that we are on hiatus; hoping the bill will be signed and retroactive when Congress comes back into session. Even with hiatus, the program does have policyholders covered, and can pay claims, but this has been a bump in the road. The current contractor has been with the program for six years. We have a direct campaign with direct mail, TV, and especially the website. We are trying to get the consumer to go to the sites to learn more about flood insurance.

The program is also targeting agents with an agent site because we have had some resistance from agents who simply do not want to sell flood insurance. We have used direct mail to obtain acquisitions; much to our surprise directing folks to how low a flood insurance policy can be for a person has driven a lot of growth in low and mid risk areas. Also using direct mail for renewals, and then going after people who have dropped their policies to bring them back.

· Is there any one campaign that you see doing well that you would like to see continue or campaigns that haven’t worked well, that you would like to see a change in?

We do know from calls that direct mail is working better than the industry averages. The program does think the results are because all of the media are synergistic and the direct mail results also depend on the TV and publications, these results cannot just be due to direct mail. FEMA does not have advertising buyers, which is why we are looking for a contractor’s solution to help guide how the campaign is run and what media is emphasized.

FEMA is updated weekly. The program has changed campaigns over the years. There are items in the SOO which state what needs to be kept and maintained, etc.

· See the information about the website in the SOO do you want it updated/changed?

FEMA sees the FloodSmart brand staying, but if the Offeror has changes to be made, that would be fine. The program does have certain items on the website that are very popular, but wants to see the Offeror’s solution

· Have you thought about more of a direct response style, which is less busy, and is more focused on capturing leads?

The webpage has evolved over time, there is a lot going on there. Sometimes there is a landing page which will take you to one area (ie: spring awareness) before jumping into whole site. (these would be seasonal)

· The growth of 5% goal; Is that growth of 5% over the course of the 5-yrs. of the contract (for JWT)? What will the growth standards for this procurement?

The performance standard will be 5% growth every contract year, not overall for 5 years. The financial incentive is not the only driver for sales though because if you receive disaster assistance you have to have flood insurance.

· When did this 5% goal start? And where did it come from?

It started after the floods of ’93, under James Lee Witt (FEMA) and the Clinton Administration; Mr. Witt wanted to see a 20% growth in 2 years, which was achieved with an awareness campaign. The awareness campaign led to the call center because the program realized they were not going to be able to sell the product without more information and the value being shared with the public.

· When does the program max out on this growth/is there a finite number?

We do not have a finite number, but this has been raised (internally) before. The flood maps are currently being updated and FEMA would like to see anyone with a home in a high risk area to be carrying a policy.

· What are the call center goals?

The goal is to connect people with an agent. The 800 number receives calls generated from advertising from people who are looking for information. They do receive calls that need to be directed to another call center and can do warm transfers to an agent.

· The agent information on the website is entered by the agent?

Yes

· Is a portion of the marketing to drive agents to put information on the website?

We do training sessions for agents around the country, with those we urge them to put their information on the website – it gives them free leads. The program office also puts information in publications. The agent is required to take a flood insurance training class before being listed online. FEMA is diligent about the quality of this list and if they receive poor feedback, then an agent will be removed from the list.

· Is the call center staffed by the marketing contractor? Is there a Spanish speaker?

Yes, the call center is staffed by JWT’s sub-contractor; but not handling just Flood Smart calls. FEMA is not sure about the Spanish speaker, the vendor stated he will just call to determine this status.

· How does social media play in the realm of the NFIP?

NFIP is not doing much, but FEMA has been doing more. The NFIP receives weekly reports on viral world, but is just getting started in this direction.

· Do you anticipate using social media more for agents/pushing the message out?

Yes, but again, would be part of your solution for where the NFIP should go.

· Contract administrative costs vs. media budget?

The media budget is $8-10Million, which covers TV, radio (NFIP doesn’t currently do much), print, postage for direct mail, COOP program, and online ads; the rest of the funds go into the strategy and public relations. Monica Brown read updated LOC clause

· What was the total amount for the last contract?

The maximum amount was $75 Million, and was probably closer to $60M over six years, which does not include the media budget.

· What was the process for doing this as a small business?

During the sources sought FEMA received about 14 companies who felt they were capable; if there are this many companies thought to be capable then the Acquisition office decided the procurement should be set-aside.

· How does the NFIP work with External Affairs? Seem to complement each other.

We didn’t use to work with them as much, but recently everything has to be approved through External Affairs, to include direct mails and PR, so it is an evolving relationship.

· One of the requirements was about being DCAA certified before award, and the small business having an approved accounting system; is this needed?

The approved accounting system is only for cost plus contracts, so it is not required on this contract, which is FFP.

· How big is the incumbent’s team?

About 35 people full-time.

· Historically, how is the team set up, are they on-site?

They are all off-site, the PR firm has a DC office and the advertising firm office is based in Atlanta. The government has been requiring DHS to justify space for contractors on-site, so do not see the current arrangement of off-site changing.