Amendment_01_RP-14-0017.pdf

Amendment 01 / PBGC01-RP-14-0017

The purpose of this amendment is to respond to questions received from prospective Offerors regarding solicitation for Actuarial Services Support Solicitation No. PBGC01-RP-14-0017.

Please see the responses below:

1. How many appeals does PBGC receive in a typical year?

Response: Over the past 3 years, we have docketed an average of 530 appeals.

2. How many appeals does PBGC anticipate will be assigned to the contractor in a typical year under this contract?

Response: We assign appeals as needed (approximately 15%) and ask for assistance on 10- 40% of our appeals.

3. Can only one person fill each of the Key Personnel positions?

Response: Multiple individuals can fill key positions

4. Can the Project Manager fill another position under the contract?

Response: Yes

5. Can more than one person fill each of the Non-Key Personnel positions?

Response: No, it would be difficult for one person to be triple-hatted as an Actuary III, Analyst III and Data Clerk.

6. Does PBGC provide templates for written work products, such as the draft decision letters?

Yes, we can provide sample decision letters. But, as explained in the solicitation, the actuarial services we request does not always involve proposing a complete decision letter.

7. Will PBGC provide directly all documents and data related to each appeal, or must the contractor retrieve documents and data from PBGC’s internal document and data storage systems?

Response: All documents and data related to each appeal can be obtained through PBGC’s data storage systems. Typically, in the assignment, the Appeals Board identifies the key documents and data related to our request.

8. How will PBGC communicate to the contractor its agency policies, procedures and practices?

Response: The Appeals Board will expect the contractor to be knowledgeable about and/or learn about agency policies, procedures and practices that are available on PBGC’s internal network. The Appeals Board will help in answering any specific questions.

9. Will PBGC provide its own proprietary software for the contractor to use?

Response: Generally, yes. The contractor will have access to PBGC’s ACT Tool and other calculation systems.

10. Can the contractor use its own proprietary software to perform its work under the contact?

Response: Yes, if appropriate.

11. When the contractor is required to “locate or seek out additional data,” does this mean from PBGC internal sources or from public sources such as the Internet?

Response: Typically this means from PBGC internal sources. However, it may also be obtained from the internet.

12. How will any administrative services the contractors are asked to perform under the contract be coordinated with PBGC’s internal administrative procedures?

Response: The Appeals Board and Contracting Officer’s Representative (COR) will assist with the coordination, with any other PBGC offices, of any administrative services.

13. How will the appeals come to us? Do/will PBGC beneficiaries ever contact us directly, either as a first call or referred/transferred to us from the PBGC?

Response: Typically, appeals will be assigned by Appeals Board staff (Board Member, Appeals Analyst or Appeals Board Actuary) on a Contractor Assignment Sheet which is sent by email with any necessary attached documents.

14. Subsection (p) of the “Contract Terms and Conditions” waives the consequential damages against the contractor. Is the PBGC open to a negotiated dollar limit on direct damages?

Response: No. PBGC will not agree to a cap on direct damages arising under the contract

15. Is there an incumbent, who is it, and will they be permitted to bid on this

RFP?

Response: Yes, Bolton Partners Inc. Yes, the incumbent is allowed to submit a proposal.

16. Are the hours you identified in the RFP Section B4 based on actual hours from past years, or estimates for the purpose of comparison of respondents and to build a budget for the contract?

Response: The hours identified are based on an estimate for purposes of comparison of respondents and to build a budget for the contract.

17. The scope of service includes requests to review benefit calculations and all related data. Will contractor be using the tools developed by PBGC to review benefit calculations? Is contractor allowed to use their own internal tools (worksheets, etc) to independently check the calculations? Are there any particular requirements for these contractor tools?

Response: Typically, contractors will be using tools developed by PBGC to review benefit calculations. Contractors may use their own tools. Any such contractor tools must ensure data security.

18. The scope of service (item 6) asks contractor to “Prepare Summaries of Relevant

Plan Documents and Independently Review Benefit Valuations, Including Validation of Valuation Data, Benefit Calculations, Assumptions and Internal Revenue Service Forms 5500 (Schedule B)”. In processing and validation of valuation data, are we going to review the steps taken by the valuation actuary in the process of data reconciliation? Is it expected that contractor performs a complete independent data reconciliation and validation? If so, can we use our own tools to do it?

Response: Yes, typically, in processing valuation data, it is necessary to review the steps taken. It would be uncommon for the Appeals Board to ask a contractor to perform a complete data reconciliation validation. Normally, no questions are raised concerning the valuation data.

19. When reviewing valuation results, benefit calculations, Form 5500 (etc), is contractor allowed to contact the valuation actuary directly?

Response: Yes

20. The scope of service states that “To achieve economies of scale in processing a number of related or similarly situated appeals, the contractor may be asked to review plan documents, summary plan descriptions, Board of Director’s Minutes, collective bargaining agreements, sales agreements, PBGC audit reports, plan asset valuations, reports of Internal Revenue Service determinations, allocations of recoveries to due and unpaid employer contributions (DUECs) and/or unfunded benefit liabilities, the PBGC’s calculation of the applicable Small Plan Average Recovery Ratio (SPARR), and/or any other documents available to the agency that are relevant to the accuracy of the benefit determinations” . Is it expected that contractor will be required to perform independent ERISA 4044 allocations by categories?

Response: Yes, it is possible, but not frequent. For example, this was done in a recent appeal of a high-profile plan.

21. The scope of service (item 8) states that “contractor will meet with AD staff to consult on certain mailers, to report on progress and to make deliverables. The contractor may make appearances at Appeals Board meetings or other special meetings”. Do you know how many on-site meetings we will be attending (ballpark)? Is all key personnel required to attend?

Response: Over the past 5 years, the Appeals Board has asked the contractor to attend a handful of Appeals Board meetings. The attendance may be in person or by teleconference or video phone. Onsite meetings with Appeals Board staff is rare; most communication is done by telephone or email.

22. The RFP section H11.1. contains key / non-key personnel qualifications. Does it represent minimum requirement? For example, can we use individual with actuarial credentials to fulfill analyst’s duties?

Response: Yes, these are the minimum education and experience requirements. See Section M.2

23. Per RFP, the record of relevant and recent past performance includes work on projects of similar scope and size. Does contractor need to present the references related to work on private pension plans only, or can we include references related to similar work on public pension plans?

Response: Yes, the contractor needs to present references of relevant recent and past experience and this can include work on private and public pension plans.