Attachment 3 PRS.pdf

ATTACHMENT 3

Effective from December 01, 2010 through September 30, 2011

Exhibit A: SERVICING AGENT PERFORMANCE REQUIREMENTS SUMMARY (PRS)

1.0 PERFORMANCE REQUIREMENTS SUMMARY (PRS). The PRS (Exhibit A) is organized in accordance with paragraphs

1.1-1.5.

1.1 Column 1 - Selected Service Performance Area (SSPA). Lists the SSPA that the government will surveil. The absence of any contract requirement from the PRS shall not detract from its enforceability to limit the rights or remedies of the government under any other provisions of the contract, including the clauses entitled “Inspection of Services” and “Default”.

1.2 Column 2 - Standard. Defines the standard of performance for each listed SSPA.

1.3 Column 3 - Performance Requirement. Sets forth the maximum allowable deviation from standard performance for that service that may occur before the government will invoke the payment computation formula, resulting in a payment of less than 100 percent of the maximum payment for the listed services.

1.4 Column 4 - Method of Surveillance. Sets forth the surveillance methods the Government will use to evaluate the contractor’s performance for the listed tasks. This column also establishes the period of the planned surveillance.

1.5 Performance/Calculation. Sets forth the performance evaluation area percentage weighting that the listed contract requirement represents.

2. GOVERNMENT QUALITY ASSURANCE. Contractor performance will be surveyed to determine if it meets the contract standards. A variety of surveillance methods may be used.

2.1 Random Sampling. FEMA may conduct random sampling when the Project Officer or designated FEMA representative samples services to determine if the level of performance is acceptable based on a statistically random sample.

2.2 Periodic inspection of the processes or output. FEMA shall conduct semi-annual claims and underwriting operations reviews, and may conduct periodic inspections when the Project Officer or designated FEMA representative chooses the location and time to conduct surveillance in other than a statistically random manner.

2.3 Customer complaints. FEMA may use validated customer complaints as the basis for actions against the Contractor.

2.4 Excessive volume. If processing volumes exceed 200% in any given month, the Contracting Officer will be notified to request a waiver for the specific SSPA 1, 5, or 6.

3. PERFORMANCE EVALUATION. Performance of a service will be evaluated to determine whether or not it meets the performance requirements of the contract. When the performance requirement is not met, the Contracting Officer will issue a

Contract Discrepancy Report (CDR) (Exhibit B) to the Contractor. The Contractor shall respond to the CDR by completing the appropriate blocks of the form and returning it to the Contracting Officer within 15 calendar days of receipt. Upon evaluation of the Contractor’s response to a CDR the Contractor’s payment for the month in which the performance in question occurred will be calculated as stated in paragraph 4. In the case of CDRs issued as the result of other methods of surveillance, the Contracting

Officer shall take appropriate measures according to the clause entitled “Inspection of Services”. The Government reserves the right to exercise forbearance on a case-by-case basis during periods of unusually high workloads. This discretion would include the waiving of a Disincentive when an SLA is not met when the volume of transactions is greater than 200% of the volume of transactions for the 3 preceding months.

4. CONTRACTOR PAYMENT.

4.1 For performance of service that meets the performance requirement, the contractor shall be paid the monthly-validated bill for that service any associated incentive.

4.2 If performance of a service does not meet the performance requirement for a service, the Government will pay the monthly-validated bill amount less the disincentive value amount determined in accordance with the following paragraph 5.

4.3 Any reductions from payment shall be taken from the payment for the month in which the contracting officer makes the determination that a reduction is appropriate, regardless of the period in which the performance occurred.

4.4 For exceptional performance the Contractor may receive an incentive payment based of the validated bill for the final month of the fiscal year for (SSPA-2) Quality of Financial Services and an incentive payment based on the prior month’s invoice for (SSPA-3)

Quality of Claims Service and (SSPA-4) Quality of Underwriting.

5.4 EXAMPLE OF DETERMINATION OF REDUCTION DISINCENTIVE

a) Assume a monthly-validated bill of $500,000.

b) Assume the maximum percentage deduction limit for SSPA-3 is 6% or $30,000 ($500,000 X 6%).

c) The total estimated reduction for defective work is $30,000

Amount the Contractor will receive = $470,000 ($500,000 - $30,000)

6. EXAMPLE OF DETERMINATION OF POSITIVE INCENTIVE ADJUSTMENT.

a) Assume a monthly-validated bill of $500,000.

b) Assume a maximum percentage incentive adjustment limit for SSPA1-Timeliness is 2.00% or

c) There are a total of eight (8) standards with a performance incentive/disincentive of 0.25% for each standard. The maximum incentive for meeting performance requirements is 2% ($500,000x2.0%=$10, 000)

d) The Contractor will receive for its exceptional performance:

Total validated bill for the month = $500,000

Incentive for meeting exceptional performance in 7 out of 8 standards = $8,750.00

(7x0.25=1.75x$500,000=8750.00))

Total paid to the Contractor = $508,750.00

PERFORMANCE REQUIREMENTS SUMMARY (Attachment 3 EXHIBIT A)

Column 1 Column 2 Column 3 Column 4 Column 5 Selected Service Performance Area (SSPA)

Standard Performance Requirement

Method of Surveillance

Performance Incentive or Disincentive

(SSPA1) - Timeliness

1a. Application Processing completed within 7 business days

Average application processing shall be no more than 15 business days.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.a. 0.25% deduction from prior month’s total invoice.

1b. Renewal Processing completed within 3 business days.

Average renewal processing shall be no more than 25 business days

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.b. 0.25% deduction from prior month’s total invoice.

1c. Endorsement Processing completed within 3 business days.

Average endorsement processing shall be no more than 3 business days.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.c. 0.25% deduction from prior month’s total invoice.

1d. Cancellation and Refund Processing completed within 10 business days.

Average cancellation processing shall be no more than 10 business days.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.d. 0.25% deduction from prior month’s total invoice.

1e. Claims Adjustment and examination completed 45 business days from receipt of Notice of Loss. Claims check mailed 7 business days from completion.

No more than 2% of the claims adjustments shall be processed later than then specified timeframe.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.e 0.25% deduction from prior month’s total invoice.

Method of Surveillance

Performance Incentive or Disincentive

(SSPA-1) - Timeliness of Service - Continued:

2a. Simple/Status Written inquiries will be responded to within 5 days of receipt.

2b. Complex Inquiries -ten (10) business days.

2c. VIP correspondence will be responded to within 3 days of receipt.

written responses shall be late.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

2.a 0.25% deduction from prior month’s total invoice.

2.b. 0.25% deduction from prior month’s total invoice.

2.c. 0.25% deduction from prior month’s total invoice.

(SSPA-2) - Quality of Financial Services

Obtain an "Unqualified Audit" rating during the annual CPA (Financial Statement) Audit.

No more than an "Unqualified Audit" rating during the annual audit.

Annual FEMA Financial Statement Audit

No findings with Unqualified Audit will result in an incentive payment of 5% of the last month of the prior FY total invoice or, Material weaknesses will result in a disincentive fee deductive of 15% of the last month of the prior FY total invoice

Method of Surveillance

Performance

(SSPA-3) Quality of Claims Service -

Obtain a “satisfactory” rating for Claims Operations Review.

Satisfactory review of claims with less than 10% error

Semi-annual Claims Operation Review

Unsatisfactory review will result in a 6% fee deduction from the prior months total invoice.

A Satisfactory rating will result in an incentive payment of 6% of the prior months total

(SSPA-4) - Quality of Underwriting rating for Underwriting Operations Review.

Satisfactory review of underwriting experience with less than 10% error rate on elevation rated risks.

Semi-annual Underwriting Operation Review

Unsatisfactory review will result in a 6% fee deduction from the prior month’s total invoice.

A Satisfactory rating will result in an incentive payment of 6% of the prior month’s total invoice.

(SSPA-5) - Quality Customer Service

5.a.) The Contractor shall maintain a monthly grade of service at 98%.

5.b.) 98% of callers sent to the queue shall be answered within 60 seconds;

Grade of Service is calculated as follows:

the total number of calls received less the total number of abandons timed at 10 seconds or greater, divided by the total number of calls.

No more than 2% of callers shall remain in queue after 60 seconds.

5.a - 5.b) - Contractor phone system reports and FEMA verification.

Period: Monthly

Unsatisfactory Performance - 5.a.) 0.25% deduction

5.b.) 0.25% deduction

(SSPA-6) Quality of Data

Meet the TRRP requirements for the quality of data and financial reconciliation

Satisfactory performance for policy errors is less than 5%for critical errors and less than 2% for claim errors

Monthly Policy and Claim Error Summary Reports are produced by the

B&SA

Substandard performance for policy errors result in a 6% fee deduction from the prior months total invoice.

Effective from October 1, 2011 through November 30, 2015

Exhibit A: SERVICING AGENT PERFORMANCE REQUIREMENTS SUMMARY (PRS)

2.0 PERFORMANCE REQUIREMENTS SUMMARY (PRS). The PRS (Exhibit A) is organized in accordance with paragraphs

1.1-1.5.

2.1 Column 1 - Selected Service Performance Area (SSPA). Lists the SSPA that the government will surveil. The absence of any contract requirement from the PRS shall not detract from its enforceability to limit the rights or remedies of the government under any other provisions of the contract, including the clauses entitled “Inspection of Services” and “Default”.

2.2 Column 2 - Standard. Defines the standard of performance for each listed SSPA.

2.3 Column 3 - Performance Requirement. Sets forth the maximum allowable deviation from standard performance for that service that may occur before the government will invoke the payment computation formula, resulting in a payment of less than 100 percent of the maximum payment for the listed services.

2.4 Column 4 - Method of Surveillance. Sets forth the surveillance methods the Government will use to evaluate the contractor’s performance for the listed tasks. This column also establishes the period of the planned surveillance.

2.5 Performance/Calculation. Sets forth the performance evaluation area percentage weighting that the listed contract requirement represents.

3. GOVERNMENT QUALITY ASSURANCE. Contractor performance will be surveyed to determine if it meets the contract standards. A variety of surveillance methods may be used.

3.1 Random Sampling. FEMA may conduct random sampling when the Project Officer or designated FEMA representative samples services to determine if the level of performance is acceptable based on a statistically random sample.

3.2 Periodic inspection of the processes or output. FEMA shall conduct semi-annual claims and underwriting operations reviews, and may conduct periodic inspections when the Project Officer or designated FEMA representative chooses the location and time to conduct surveillance in other than a statistically random manner.

3.3 Customer complaints. FEMA may use validated customer complaints as the basis for actions against the Contractor.

2.4 Excessive volume. If processing volumes exceed 200% in any given month, the Contracting Officer will be notified to request a waiver for the specific SSPA 1, 5, or 6.

5. PERFORMANCE EVALUATION. Performance of a service will be evaluated to determine whether or not it meets the performance requirements of the contract. When the performance requirement is not met, the Contracting Officer will issue a

Contract Discrepancy Report (CDR) (Exhibit B) to the Contractor. The Contractor shall respond to the CDR by completing the appropriate blocks of the form and returning it to the Contracting Officer within 15 calendar days of receipt. Upon evaluation of the Contractor’s response to a CDR the Contractor’s payment for the month in which the performance in question occurred will be calculated as stated in paragraph 4. In the case of CDRs issued as the result of other methods of surveillance, the Contracting

Officer shall take appropriate measures according to the clause entitled “Inspection of Services”. The Government reserves the right to exercise forbearance on a case-by-case basis during periods of unusually high workloads. This discretion would include the waiving of a Disincentive when an SLA is not met when the volume of transactions is greater than 200% of the volume of transactions for the 3 preceding months.

6. CONTRACTOR PAYMENT.

5.1 For performance of service that meets the performance requirement, the contractor shall be paid the monthly-validated bill for that service any associated incentive.

5.2 If performance of a service does not meet the performance requirement for a service, the Government will pay the monthly-validated bill amount less the disincentive value amount determined in accordance with the following paragraph 5.

5.3 Any reductions from payment shall be taken from the payment for the month in which the contracting officer makes the determination that a reduction is appropriate, regardless of the period in which the performance occurred.

6.4 For exceptional performance the Contractor may receive an incentive payment based of the validated bill for the final month of the fiscal year for (SSPA-2) Quality of Financial Services and an incentive payment based on the prior month’s invoice for (SSPA-3)

Quality of Claims Service and (SSPA-4) Quality of Underwriting.

7.4 EXAMPLE OF DETERMINATION OF REDUCTION DISINCENTIVE

d) Assume a monthly-validated bill of $500,000.

e) Assume the maximum percentage deduction limit for SSPA-3 is 6% or $30,000 ($500,000 X 6%).

f) The total estimated reduction for defective work is $30,000

Amount the Contractor will receive = $470,000 ($500,000 - $30,000)

7. EXAMPLE OF DETERMINATION OF POSITIVE INCENTIVE ADJUSTMENT.

e) Assume a monthly-validated bill of $500,000.

f) Assume a maximum percentage incentive adjustment limit for SSPA1-Timeliness is 2.00% or

g) There are a total of eight (8) standards with a performance incentive/disincentive of 0.25% for each standard. The maximum incentive for meeting performance requirements is 2% ($500,000x2.0%=$10, 000)

h) The Contractor will receive for its exceptional performance:

Total validated bill for the month = $500,000

Incentive for meeting exceptional performance in 7 out of 8 standards = $8,750.00

(7x0.25=1.75x$500,000=8750.00))

Total paid to the Contractor = $508,750.00

Method of Surveillance

Performance

(SSPA1) - Timeliness

1a. Application Processing completed within 7 business days

Average application processing shall be no more than 7 business days.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.a. 0.25% deduction from prior month’s total invoice.

1b. Renewal Processing completed within 3 business days.

Average renewal processing shall be no more than 3 business days

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.b. 0.25% deduction from prior month’s total invoice.

1c. Endorsement Processing completed within 3 business days.

Average endorsement processing shall be no more than 3 business days.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.c. 0.25% deduction from prior month’s total invoice.

1d. Cancellation and Refund Processing completed within 10 business days.

Average cancellation processing shall be no more than 10 business days.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.d. 0.25% deduction from prior month’s total invoice.

1e. Claims Adjustment and examination completed 45 business days from receipt of Notice of Loss. Claims check mailed 7 business days from completion.

claims adjustments shall be processed later than then specified timeframe.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

1.e 0.25% deduction

Method of Surveillance

Performance Incentive or Disincentive

(SSPA-1) - Timeliness of Service - Continued:

2a. Simple/Status Written inquiries will be responded to within 5 days of receipt.

2b. Complex Inquiries -ten (10) business days.

2c. VIP correspondence will be responded to within 3 days of receipt.

written responses shall be late.

Contractor performance tracking report receipt and FEMA verification.

Period: Monthly

2.a 0.25% deduction from prior month’s total invoice.

2.b. 0.25% deduction from prior month’s total invoice.

2.c. 0.25% deduction from prior month’s total invoice.

(SSPA-2) - Quality of Financial Services

Obtain an "Unqualified Audit" rating during the annual CPA (Financial Statement) Audit.

No more than an "Unqualified Audit" rating during the annual audit.

Annual FEMA Financial Statement Audit

No findings with Unqualified Audit will result in an incentive payment of 5% of the last month of the prior FY total invoice or, Material weaknesses will result in a disincentive fee deductive of 15% of the last month of the prior FY total invoice

Method of Surveillance

Performance

(SSPA-3) Quality of Claims Service -rating for Claims Operations Review.

Satisfactory review of claims with less than 10% error

Semi-annual Claims Operation Review

Unsatisfactory review will result in a 6% fee deduction from the prior months total invoice.

A Satisfactory rating will result in an incentive payment of 6% of the prior months total

(SSPA-4) - Quality of Underwriting rating for Underwriting Operations Review.

Satisfactory review of underwriting experience with less than 10% error rate on elevation rated risks.

Semi-annual Underwriting Operation Review

Unsatisfactory review will result in a 6% fee deduction from the prior month’s total invoice.

A Satisfactory rating will result in an incentive payment of 6% of the prior month’s total invoice.

(SSPA-5) - Quality Customer Service

5.a.) The Contractor shall maintain a monthly grade of service at 98%.

5.b.) 98% of callers sent to the queue shall be answered within 60 seconds;

Grade of Service is calculated as follows:

the total number of calls received less the total number of abandons timed at 10 seconds or greater, divided by the total number of calls.

No more than 2% of callers shall remain in queue after 60 seconds.

5.a - 5.b) - Contractor phone system reports and FEMA verification.

Period: Monthly

Unsatisfactory Performance - 5.a.) 0.25% deduction

5.b.) 0.25% deduction

(SSPA-6) Quality of Data

Meet the TRRP requirements for the quality of data and financial reconciliation

Satisfactory performance for policy errors is less than 5%for critical errors and less than 2% for claim errors

Monthly Policy and Claim Error Summary Reports are produced by the

B&SA

Substandard performance for policy errors result in a 6% fee deduction from the prior months total invoice.