Journeys_Travel_Insurance_RFP_(final_8-11-15).pdf

Smithsonian Institution

RFP # M-15000231-0000

Journeys Travel Insurance and Assistance Services

I Background

A. About Smithsonian The Smithsonian Institution is a non-profit trust instrumentality that was created by act of Congress of the United States in 1846. The Smithsonian is the world’s largest museum and research complex consisting of 19 museums and galleries, the National Zoological Park and nine research facilities. In 2014, more than 28 million people from around the world visited the museums and the National Zoo. The total number of objects, works of art and specimens at the Smithsonian is estimated at nearly 138 million. The Smithsonian collections are the basis for research, exhibitions and public programs in the arts, history and culture, and the sciences. The Institution’s mission is the “increase and diffusion of knowledge.” See additional information – the Executive Summary of the Smithsonian’s Strategic Plan – attached as Exhibit A.

The Smithsonian’s statement of values and code of ethics require that Smithsonian’s revenue-generating activities support the Smithsonian mission and protect the Smithsonian's reputation, integrity, and independence. Smithsonian’s revenue-generating activities must be consistent with the Smithsonian mission, culture, governance, and status as a trust instrumentality of the United States and a tax-exempt organization.

B. About Smithsonian Enterprises

Smithsonian Enterprises (SE), which includes the Institution’s retail, media, consumer products and education products divisions, offers a range of products and services that help to generate funding for Smithsonian’s core mission, museums and research, while remaining consistent with the Smithsonian mission, culture, governance, and status as a trust instrumentality of the United States and a tax-exempt organization. By providing products and services that reflect the mission of the museums and research centers, Smithsonian Enterprises plays a critical role in advancing the Institution’s mission: the increase and diffusion of knowledge.

C. About Smithsonian Travel

The Smithsonian further extends its mission through its travel programs - Smithsonian Journeys (SJ) and Smithsonian University Travel Program (SUTP). These exciting programs resonate with adult travelers, educators, and students nationwide and focus on experiential education and informal learning experiences including some travel opportunities not found with any other tour provider.

Smithsonian Journeys (SJ): Founded in 1970, SJ contracts with tour operators to provide cultural adult group travel, multigenerational family travel, and tailor-made travel. SJ currently offers more than 350 departures to all seven (7) continents, to both international and domestic destinations. These adult and family travel experiences range from domestic weekend trips, to overland international tours, to small-ship ocean and river cruising, to immersive city and countryside stay programs, to luxury jet tours that span the globe (the “Tours”). Lecturers on these tours include Smithsonian staff and other leading experts, and each itinerary is meticulously designed to deliver authentic experiences by region, theme, or special interest. SJ’s unique travel offerings include access to private collections, local and regional experts, visits to Smithsonian research facilities and memorable events that only Smithsonian can provide.

Smithsonian University Travel Program (SUTP): SE works with a student tour operator to develop, promote, sell, operate and administer themed SI-branded, university student educational travel programs. These 5-14 day programs are for college and graduate school students accompanied by their professor and complement course curriculum with educational content and learning opportunities domestically and internationally.

The SUTP is excluded from the scope of this RFP.

Additional information on Smithsonian Travel programs is available at:

www.smithsonianjourneys.org

D. About the Project

Smithsonian Journeys would like to provide as a convenience to participants who enroll in the Tours (“Tour Members”) information about and the opportunity to obtain certain travel insurance coverage and assistance services in connection with the Tours. This coverage would be optional, and Tour Members who choose to purchase such coverage would purchase the coverage directly through the selected travel insurance provider.

In addition, Smithsonian Journeys seeks to purchase two types of additional insurance:

(1) evacuation and repatriation insurance and access to medical assistance abroad for its Tour Members, SJ tour staff who are not Smithsonian employees (e.g., SJ experts, study leaders, and representatives contracted by SJ) (“SJ Staff”), and other participants (such as contest winners) who have not paid for their trips but who may incur travel costs in an emergency (“gratis travelers”); and (2) emergency trip interruption and cancellation insurance for SJ Staff, SI employees, and gratis travelers, both at competitive rates, as more fully set forth in Section II, Scope of Work, below.

SI currently offers optional travel insurance coverage to its Tour Members, and purchases evacuation and medical assistance coverage for its Tour Members and SJ Staff, but those contracts are scheduled to end in Spring 2016. Coverage provided under those contracts is available for Tours scheduled into the future.

http://www.smithsonianjourneys.org/

II Scope of Work

A. The Smithsonian is seeking a travel insurance provider(s) to arrange for, implement, and administer a customized, turn-key travel insurance plan for all Tour Members regardless of age or nationality under a license to use the Smithsonian name and trademarks beginning in the Spring of 2016 for Tours commencing thereafter (the “Optional Travel Insurance Program”). In addition, the Smithsonian seeks to purchase on-tour (1) evacuation and repatriation insurance coverage and medical assistance abroad for Tour Members, SJ Staff and gratis travelers, and (2) emergency trip interruption and cancellation insurance for SJ Staff, SI employees, and gratis travelers at a competitive rate for Tours commencing in Spring 2016 (the “Mandatory Insurance Program”). Collectively, both programs are referred to herein as the “Programs”. Depending on the schedule for Program implementation, the Smithsonian will consider offering the coverage for either or both Programs earlier than Spring of 2016. The Smithsonian anticipates entering into a separate contract for each Program, and anticipates that each contract will have a term of five (5) years, with an option to extend the term for one additional five (5) year period.

B. Optional Travel Insurance Program

1. The Smithsonian seeks the following insurance coverage for the Optional Travel Insurance Program:

a comprehensive package of coverage including baggage, trip delay, trip interruption, travel accident and emergency medical expense protection, medical expense, worldwide medical assistance, financial default, evacuation and trip cancellation coverage; waiver of pre-existing condition exclusion; terrorism coverage, and pandemic coverage; cancel for work reason, inclement weather

“cancel for any reason” coverage;

“extension” coverage - for those Tour Members who choose to extend their trip beyond the purchased Smithsonian Journeys Tour – which would include trip cancellation, trip interruption, trip delay, itinerary change, medical expense, medical evacuation/repatriation, baggage protection and baggage delay, and accidental death & dismemberment coverage for the non-Smithsonian portion of the Tour Member’s trip; and

Per person coverage for trips costing up to $100,000.

The Smithsonian will consider other types of coverage not included above that would be beneficial to Tour Members.

2. The Smithsonian seeks a company who can, in developing and implementing the

Optional Travel Insurance Program:

Arrange for and obtain the Optional Travel Insurance Program coverage set forth above;

Provide options for age-graded vs. non age-graded premiums;

Include or provide options for non-US citizens or residents, including, but not limited to, Canada and Mexico;

Provide all services necessary to administer the coverage, including, but not limited to, receiving enrollment information, enrolling Tour Members, collecting payments, issuing and mailing insurance confirmations to plan participants, performing claims investigation and handling, answering customer service inquiries via dedicated toll-free telephone lines for Smithsonian Journeys Tour Members, record-keeping, and accounting;

Provide easy, timely systems for quick claims processing, excellent customer service and easy global access to assistance 24/7

Assign an account manager who will provide timely responses and actively support relationship

Print and provide an adequate supply of brochures describing the plan, and provide additional brochures as needed over the contract term;

Provide sufficient reporting to meet Smithsonian requirements and the ability to monitor enrollments in real time.

Provide the capability for Tour Members to enroll online via a link from Smithsonian Journeys’ website to the travel insurance provider’s website (the Smithsonian anticipates the travel insurance provider will design, launch and host a dedicated website for online enrollment);

Train Smithsonian Journeys marketing team and call center agents to appropriately present the insurance to Tour Members at POS for this purpose;

Pay Smithsonian a competitive royalty based on the number of Tour Members who have purchased the plan and the revenue this represents;

Support the Smithsonian mission for “the increase and diffusion of knowledge” and the Smithsonian’s core values for revenue-generating activity; and

Provide a review process for proposed rate changes and premium and plan adjustments that allows for sufficient Smithsonian review and demonstrates a commitment to superior customer service.

3. The coverage and assistance services set forth above will be made available to all Tour Members who are United States or Canadian residents with options for non-US citizens or residents. Tour Members who enroll and pay the applicable premiums shall be provided with the coverage. Tour Members will not be required to purchase insurance coverage as a condition precedent to enrolling in a Tour, nor will Tour Members be required to purchase coverage from the travel insurance provider.

4. Smithsonian Journeys anticipates that Journeys or its partner tour operators will inform Tour Members of the available insurance coverage and assistance services by (i) informing Tour Members when they register by phone; (ii) deploying a letter upon confirmation with call center; (iii) inserting with each deposit confirmation letter sent to its Tour Members a brochure (provided by the travel insurance provider) describing the insurance coverage and assistance services, which would include an enrollment form which Tour Members may return to the travel insurance provider with the appropriate payment in order to become plan participants; (iv) providing a link on the Smithsonian Journeys website to the travel insurance provider’s website, through which Tour Members would access an online enrollment form; and (v) potentially provide a link and/or brochure at the time of final invoicing.

C. Mandatory Travel Insurance Program for On-Tour Emergency Medical Assistance, Evacuation and Repatriation

1. The Smithsonian seeks the following insurance coverage for the Mandatory Travel Insurance Program (On-Tour Emergency Medical Assistance, Evacuation and Repatriation): A minimum of $100,000 in evacuation and repatriation insurance coverage (which will provide coverage for emergency air or ground transportation due to a serious illness or injury), as well as a minimum of $25,000 in worldwide emergency assistance services. In addition to these minimums, please offer an additional quote for $200,000 in evacuation and repatriation insurance coverage with $50,000 in worldwide emergency assistance services.

2. The Smithsonian seeks a company who can, in developing and implementing the Mandatory Travel Insurance Program:

Arrange for and obtain the Mandatory Travel Insurance Program coverage set forth above, to be made available to all Tour Members who are United States or Canadian residents and who are either (i) traveling on international Tours; or (ii) traveling on domestic Tours, but only for those domestic Tour Members who have not purchased the Optional Travel Insurance plan. In addition, this coverage will be made available to each SJ Staff person contracted by Smithsonian for a Tour who is not a Smithsonian employee and each gratis traveler;

Provide options for non-US citizens or residents

Administer the coverage, including, but not limited to, performing claims investigation and handling, customer service inquiries via dedicated toll-free telephone lines, record-keeping, and accounting;

Provide sufficient reporting in accordance with Smithsonian requirements; and

Offer this coverage to Smithsonian at a competitive rate per person.

3. Smithsonian anticipates providing the number of registered Tour Members, SJ

Staff and gratis travelers to the travel insurance provider on a monthly basis for purposes of calculating the Smithsonian’s payment for the plan. The Smithsonian will include information regarding the Mandatory Travel Insurance Program in its tour bulletins and in the “What’s Included” section of its tour brochures and catalogs and on the website.

D. Mandatory Trip Cancellation and Interruption Insurance for SJ Staff, SI Employees, and Gratis Travelers

1. Smithsonian seeks emergency trip interruption and cancellation insurance for SJ Staff, SI employees, and gratis travelers who have not paid for their Trips but who may incur trip interruption or cancellation costs as a result of an emergency

2. Administer the coverage, including, but not limited to, performing claims investigation and handling, customer service inquiries via dedicated toll-free telephone lines, record-keeping, and accounting;

3. Provide sufficient reporting in accordance with Smithsonian requirements; and

4. Offer this coverage to Smithsonian at a competitive rate per person.

E. The travel insurance provider may use the services of other insurance providers to supply the Optional Travel Insurance Program coverage and the Mandatory Travel Insurance Program coverage and/or to provide the worldwide emergency assistance services. Any such insurance providers are subject to the Smithsonian’s advance, written approval and the Smithsonian will require a written indemnification/hold harmless obligation from any such insurance provider related to Travel Insurance Provider and insurance providers’ activities under the executed agreement(s).

F. The Smithsonian anticipates entering into a separate contract for each Program that will include certain “Key Terms and Conditions”, attached hereto in Exhibit B (Key Contract Terms and Conditions) and incorporated by reference herein. Please read Exhibit B carefully, as it contains information essential to the conduct of the Programs.

III. RFP Instructions and Conditions

A. General Instructions and Conditions

1. The purpose of this RFP is to provide interested parties with sufficient information to enable them to prepare and submit proposals for consideration by the Smithsonian. Your proposal should only address the services and requirements described herein.

2. Proposals prepared in response to this RFP shall comply with the instructions and proposal requirements contained in this document. Proposals that deviate from these instructions and requirements may be disqualified at the Smithsonian’s discretion.

3. The Smithsonian reserves the right to enter into negotiations with any or all companies in the competitive range at its discretion and based upon the best interests of the Smithsonian. While the Smithsonian’s preference is to award both contracts to one offeror, the Smithsonian may choose to award the contracts to multiple offerors – e.g., one offeror may receive the contract for the Optional Travel Insurance Program and a different offeror may receive the contract for the Mandatory Travel Insurance Program.

4. The Smithsonian is not responsible for paying any proposal preparation costs or any other costs associated with a response to this request. This RFP does not obligate the Smithsonian to enter into any agreement, nor shall it be construed as authorization for companies to proceed with any work directly or indirectly related hereto.

5. All information and materials submitted in response to this RFP for consideration by the Smithsonian will become the Smithsonian’s property and will be returned only at the Smithsonian’s discretion.

6. Submission Process.

(i) Please submit a letter notifying SI of your intent to submit a proposal for either the Optional Travel Insurance Program, the Mandatory Travel Insurance Program, or both Programs by 2:00 PM Eastern time on Monday, August 31, 2015.

(ii) Please submit one (1) original and seven (7) copies of your proposal via courier in sealed envelopes or packages addressed to the office specified below, by 2:00 P.M. Eastern time on Tuesday, September 22, 2015, with the subject matter of the RFP and the name and address of the company clearly identified on the packaging. Please also submit one copy of your proposal via email to the attention of Susan Engelhardt at engelhardts@si.edu. Materials sent via fax or to any other address will not be considered. Proposals shall be sent to:

Susan Engelhardt, Esq.

Office of Contracting & Personal Property Mgmt Smithsonian Institution 2011 Crystal Drive, Suite 350 Arlington, VA 22202-3709

(iii) Questions. All substantive and administrative questions about this RFP must be submitted in writing by email to the attention of Susan Engelhardt at engelhardts@si.edu.

Questions must be submitted by 2:00 P.M. Eastern time on Monday, August 31, 2015 in order to ensure a response. Questions having an impact on the RFP will be answered and issued to all interested companies via RFP amendment.

7. Smithsonian reserves the unconditional right to cancel this RFP or to terminate negotiations at any time without cost or liability of Smithsonian. Participation in this RFP or any resulting contract constitutes an affirmative waiver by participants of any claim to proposal preparation costs.

mailto:engelhardts@si.edu

Interested offerors should note that this is not a solicitation for a federal contract and is therefore not governed by federal procurement procedures.

8. The Smithsonian reserves the right to reject any and all proposals received as a result of this request. Noncompliance with the instructions and conditions of this RFP may result in disqualification of your proposal. The Smithsonian may refuse to consider any proposal received after the exact date and time specified for receipt.

9. At Smithsonian’s option, any or all of the companies in the competitive range may be invited to meet with Smithsonian representatives in person or over the telephone in Washington D.C. to discuss their proposals and answer questions. Travel and per diem for any such meeting will be the responsibility of each company.

10. Authorized Negotiators. Companies are hereby placed on notice that the only persons authorized to conduct discussions and/or make commitments on behalf of the Smithsonian regarding this RFP and all matters incident hereto are the Smithsonian Enterprises Contracting Official and his designated representatives.

B. Proposal Requirements. The Smithsonian’s requirements and expectations are set forth herein. All proposals must include the following:

1. A statement confirming whether your company is submitting a proposal for the Optional Travel Insurance Program, the Mandatory Travel Insurance Program, or both Programs. If submitting a proposal for both Programs, please clearly delineate in all proposal information which Program(s) the information relates to.

2. A narrative describing your company’s strategy and brand vision for the

Program(s) you are proposing, consistent with the Scope of Work set forth in Section II above. Please note specifically whether your company is able to offer an online enrollment capability and training for Smithsonian Journeys call center agents. This narrative must include a description of each proposed Program (including the specific coverage to be provided), a timeline for each proposed Program that details proposed Program development and execution starting in late 2015 for Tours commencing in 2016, and the key staff dedicated to support the Program(s).

3. To the extent that your company would like to propose opportunities for added value relative to the Programs, please provide a narrative describing such opportunities and how such opportunities as well as products would fit within the strategy identified in #2 above.

4. A narrative describing your company’s overall qualifications and experience.

This section must also include what in-house capabilities your company has versus what will be outsourced. For any capabilities that would be outsourced, please identify the vendors proposed for outsourcing.

5. A company profile, including the number of years your company has been in business, bios of key personnel, location(s) of company office(s), and your company’s most recent corporate financial statement.

6. A list and brief description of the clients who currently conduct similar programs with your company (including a description of the types of programs operated for that client and the length of time in business with that client).

7. Your proposed business and financial terms for the proposed Program(s). For the Optional Travel Insurance Program, this should include proposed royalty rate. For the Mandatory Travel Insurance Program, this should include the proposed fee to be paid by Smithsonian per person as set forth in Section II.C. above. Please include a detailed description of your company’s proposed process for premium adjustments and corresponding rate adjustments payable to/from Smithsonian (including a description of how your company will address SJ customer service needs), as applicable to the corresponding Program.

8. A narrative describing your company’s end-customer service policies and standards as well as the procedures used in the resolution of customer service issues or complaints.

Include any past or current Better Business Bureau listings and explanations of anything noted as not acceptably closed.

9. References. Three (3) references from companies that provide support services to your company and three (3) references from clients who currently operate travel insurance programs with your company, with contact name and title, address, phone number, and a brief description of the services provided and/or program operated. References provided should demonstrate performance relative to the subject matter of this RFP.

10. An explanation of any exceptions or deviations your company will require with respect to Exhibit A, attached. Exceptions will not automatically cause a proposal to be deemed unacceptable. However, exceptions not providing obvious benefit to the Smithsonian Institution may result in rejection of a proposal as unacceptable.

11. A statement from your company certifying that there is no material litigation, either pending or threatened, or any contractual or business relationship involving your company or any of its principals, shareholders, partners, officers, or employees which would prevent or limit your company from providing any services described in this RFP, or would hinder your company’s ability to achieve fully the stated objectives and an affirmative statement that your company is responsible and able to conduct business in the District of Columbia and throughout the United States. To be provided as a signed, certified document with your proposal.

12. Representations and Certifications of Offeror. Please complete the

Representations and Certifications form, attached hereto in Exhibit C, and sign and return with your proposal.

IV. Evaluation Criteria. Subject to the discretion of the Smithsonian, any company may be selected who is deemed responsible, whose proposal conforms to the requirements in all of the RFP documents, and is judged, based on the evaluation criteria below, to represent the best value to the Smithsonian. The Smithsonian will not select a company whose proposal is determined to be unacceptable to the Smithsonian.

Evaluation factors for both Programs are:

1. Proposed Programs’ fit with Institution’s brand, mission and core values;

2. Ease of Program implementation;

3. Financial, business and legal terms;

4. Company reach and financial strength;

5. Demonstrated ability to develop, sell, execute, and expand programs similar to the proposed Programs (for the Optional Travel Insurance Program, this includes demonstrated ability to sell through multiple channels, e.g., POS, mail and online);

6. Customer service policies, standards, and industry reputation related to same, including ability to fully resolve customer issues and complaints; and

7. Past performance of your company (e.g., compliance with contract requirements, quality of products/services provided, timeliness of performance, cost control, business relations). The Smithsonian may use past performance information obtained from other than the references identified by the offeror.

8. Competitive rates in the marketplace

All evaluation factors other than the Financial, Business and Legal Terms factor, when combined, are more important than the Financial, Business and Legal Terms factor. The Smithsonian reserves the right in all cases to be the sole judge determining whether a company meets the evaluation criteria.

V. DEADLINES

August 31, 2015 Notification of Intent to Submit a Proposal Due: Notifications must be received at the email address engelhardts@si.edu by 2:00 P.M. Eastern time on August 31, 2015.

August 31, 2015 Questions Due: All questions regarding the RFP and attachments must be received at the email address engelhardtS@si.edu by 2:00 P.M. Eastern time on August 31, 2015.

September 22, 2015 Proposals Due: Proposals must be received via courier at 2011 Crystal Drive, Suite 350 Arlington, VA 22202 by 2:00 P.M. Eastern time on September 22, 2015 in order to be considered.

VI. ATTACHMENTS

Exhibit A: Executive Summary of Smithsonian Strategic Plan Exhibit B: Key Contract Terms and Conditions Exhibit C: Representations and Certifications of Offeror (OCon Form 650), to be completed and returned with proposal

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