Q A_Set__4.docx

SOLICITATION H9402-13-R-0002

ACTIVE DUTY DENTAL PROGRAM (ADDP)

QUESTION AND ANSWER (Q&A) SET #4

1. We do not consider the ADDP to be an insurance program. Are we correct in assuming that the ADDP is not insurance? Does the government consider the amounts paid in relation to the ADDP to be "fees", "premium", or does the government consider the amounts paid to be something other than fees or premium? If the amounts are not fees or premium, what does the government consider them to be?

Answer: The ADDP is not an insurance program. Active Duty Service Members receive medical and dental care as a statutory entitlement per 10 USC § 1074, including care in the private sector per 10 USC § 1074(c). Per L.1.5., Type of Contract, the awarded contract will be a requirements contract where the contractor is paid a fixed-unit price after each service is rendered.

2. We are assuming that the PPACA tax does not apply to the ADDP because we do not believe that the amounts paid in relation to the ADDP are premiums. Is our assumption correct?

Answer: TMA does not consider fees paid under the contract for services rendered to be premiums. (See answer #1 above). TMA is not the appropriate authority to make determinations regarding the applicability of PPACA taxes. Offerors should seek advice from their own counselors or tax advisors regarding the applicability of the PPACA tax, and how, or if the company will incorporate the costs into any given offer.

3. We are assuming that state insurance laws including those that require the payment of premium taxes are preempted. Does the government take the position that any attempt by a state to regulate the ADDP or to impose premium taxes would be preempted?

Answer: The RFP states in Section C, C.13. Preemption of State Laws. Pursuant to 10 U.S.C. 1103(a), the preemption of U.S. state and local law applies to this program.