RFPb Attachment 1 - TRIP CLAIMS SYSTEM PWS v8.pdf

Attachment 1 2032H323R00001

TRIP CLAIMS SYSTEM

PERFORMANCE WORK STATEMENT (PWS)

July 2022

1. BACKGROUND

On November 26, 2002, the President signed into law the Terrorism Risk Insurance Act (TRIA) of 2002 (Pub. L. 107-297, 116 Stat. 2322). The Act’s purposes, accomplished through the Terrorism Risk Insurance Program (“Program” or “TRIP”), are to address market disruption, ensure the continued widespread availability and affordability of commercial property and casualty insurance for terrorism risk, and to allow for a transition period for the private markets to stabilize and build capacity while preserving state insurance regulation and consumer protections.

In the event of a certified act of terrorism, Treasury will receive claims from insurers requesting reimbursement under the Program, and recoup paid funds later. This process must be administered through the TRIP Claims System, which is a tested and documented operating system which, upon activation, can receive claims for the Federal Share of Compensation under TRIP, receive other information from insurers as requested by Treasury, and process receipts of policy surcharges imposed under TRIA to recoup amounts expended under the Program. In the event of a certified act of terrorism that triggers activation of the reimbursement conditions of the Program, the Contractor shall be able to estimate the scope of losses from such event, process requests from insurers/insurer groups for reimbursement of the Federal Share, reconcile payments authorized by Treasury, process the collection of any policy surcharges imposed to recoup some or all payments of the Federal Share of Compensation, and provide other statistical reports requested by Treasury. The Contractor shall be the main point of contact for operational questions from insurers regarding the Program.

2. OBJECTIVE

The purpose of this contract is to gain contractor support in the maintenance, periodic testing, and operation of the TRIP Claims System. In the case of activation after a certified act of terrorism, the contractor shall activate the TRIP Claims System, review, evaluate and process any claims from covered insurers and make recommendations to TRIP regarding payment. The contractor shall also assist Treasury with administrative functions under TRIA. Documents required to accomplish the work in this PWS include, but are not limited to the following:

A. The Terrorism Risk Insurance Act of 2002, as amended.

B. Treasury Regulations implementing the Program are generally found at

Code of Federal Regulations (CFR) Part 50. Notable sections include:

I. Treasury regulations establishing general provisions implementing the Program, including key definitions, and requirements for policy disclosures and mandatory availability, can be found in Subparts A, B, and C of 31 CFR Part 50.

II. Treasury’s rules applying provisions of the Act to State residual market insurance entities and State workers’ compensation funds are at Subpart D of 31 CFR Part 50.

III. Rules addressing data collection, including the production of claims data to the TRIP Claims System are at Subpart F of 31 CFR Part 50.

IV. Rules setting forth the process for the certification of an act of terrorism under TRIA are at Subpart G of 31 CFR Part 50.

V. Rules setting forth procedures for filing claims for payment of the Federal Share of Compensation for insured losses, as well as the final netting and commutation of claims payments, are at Subpart H of 31 CFR Part 50.

VI. Subpart I of 31 CFR Part 50 contains rules on audit and recordkeeping requirements for insurers.

VII. Subpart J to Part 50 addresses the recoupment of the Federal Share of Compensation while Subpart K of 31 CFR Part 50 contains Treasury’s rules implementing the litigation management provisions of section 107 of the Act.

VIII. Subpart L to Part 50 comprises Treasury's regulations implementing the annual cap on insured losses of $100 billion and the pro rata payment of claims.

IX. Interpretative Letters: Treasury has responded to individual requests for interpretations of the Terrorism Risk Insurance Act (TRIA) from various parties seeking guidance on how the Act may affect their individual circumstances. In 31 C.F.R. § 50.8, Treasury provides a procedure for requesting TRIA interpretations and noted that responses would be made publicly available. The responses to requests for interpretation that have been issued are available on the Treasury web site at:

https://www.treasury.gov/about/organizational-structure/offices/Domestic-Finance/Financial- Institutions/TRIP/Pages/TRIP_regulations.aspx

3. CURRENT ENVIRONMENT

The TRIP Claims System resides in a Treasury-controlled Amazon Cloud environment.

To maintain the system, the Contractor must have capabilities in the following areas:

A. Restful API development using Dot Net Core 3.1 B. C# skills, including experience using LINQ C. Angular 7.0 (compatible with Node.js and Angular CLI) D. Entity Framework Core skills E. Microsoft Sql Server skills F. OAuth2 authentication and authorization using JSON Web Tokens (JWT) G. IoC (e.g. Autofac) https://www.treasury.gov/about/organizational-structure/offices/Domestic-Finance/Financial-Institutions/TRIP/Pages/TRIP_regulations.aspx https://www.treasury.gov/about/organizational-structure/offices/Domestic-Finance/Financial-Institutions/TRIP/Pages/TRIP_regulations.aspx https://www.treasury.gov/about/organizational-structure/offices/Domestic-Finance/Financial-Institutions/TRIP/Pages/TRIP_regulations.aspx

H. Microservices architecture I. Microsoft Sql Server Reporting Services (SSRS) J. Coding c# unit tests using Moq K. Microsoft asp.net web pages L. Continuous Integration and continuous delivery (CI/CD) experience with Dev Sec

Ops M. Amazon Web Services (AWS) including API Gateway, EC2, S3, Fargate, RDS for Sql Server, CloudWatch

4. SCOPE OF WORK - TRIP CLAIMS SYSTEM OPERATION, MAINTENANCE AND

CONSULTING

A. TASK 1 - TRANSITION-IN (LABOR HOUR) (LABOR HOURS/REQUIRED CLIN)

Treasury anticipates that the Transition-In period for the contractor shall last for one (1) month. During this time, the incumbent Contractor will be available to assist the successor with familiarization with the TRIP Claims System.

The Contractor shall participate in a post-award conference within three (3) working days after contract award. A post-award orientation will serve to aid both Government and contractor personnel to achieve a clear and mutual understanding of all contract requirements and identify and resolve potential problems.

Within five (5) days after award of the contract the Contractor must submit a schedule and staffing plan for the Transition-In phase. This plan must describe, by week, work to be accomplished. At the end of each week during the Transition-In phase the Contractor must submit a letter report describing work accomplished.

The contractor shall transition and assume the responsibility for all Operations & Maintenance activities and support duties from the incumbent TRIP Claims System Contractor in a manner that does not interrupt or negatively impact Treasury's mission critical operations and activities.

The purpose of the Transition-In task is to provide an orderly transition from the incumbent Contractor to the successor Contractor and to ensure the incoming Contractor has sufficient knowledge of the TRIP Claims System to maintain and enhance the software. It is the responsibility of both the incumbent and the successor Contractor to ensure a smooth transition from the incumbent Contractor to the successor Contractor. The successor Contractor shall work toward the Government’s goal of ensuring minimal disruption to services and support for users.

Working with the incumbent Contractor and the COR, the successor Contractor shall develop a plan to take over on-going work from the incumbent Contractor. The incumbent Contractor will be performing Transition-Out activities for a one-month timeframe starting at contract award.

The successor Contractor shall work with the incumbent Contractor during the Transition-In timeframe. At the end of the second week, the successor Contractor shall begin operations and will be responsible for fully supporting the TRIP Claims System;

however, the incumbent Contractor will provide limited Subject Matter Expert (SME) support to the successor Contractor during the remaining 2 weeks of the incumbent’s Transition-out timeframe. During those two weeks, Transition-In tasks will consist of those activities necessary to resolve any outstanding issues and complete the final transition status report.

I. Treasury will provide the successor Contractor with all the necessary documentation in support of these tasks.

II. The successor Contractor shall perform the following tasks:

1. Conduct and coordinate all on-boarding activities with the Government and obtain secure badging for team personnel. This activity shall start immediately after contract award to ensure personnel are productive as soon as possible. In addition, the Contractor shall complete actions necessary to obtain access to the systems and operating environments.

2. Ensure that the appropriate staff are available to work with SMEs from the Government and the incumbent Contractor immediately after contract award

3. Familiarize themselves with TRIP business objectives, processes, and requirements as related to the system being supported.

4. Familiarize themselves with TRIP Claims System, system documentation, release documents, source code, project documentation, and Enterprise Performance Life Cycle (EPLC) methodology.

5. Engage in regularly scheduled transition-in meetings

6. Familiarize themselves with the current documented defects and enhancements for the TRIP Claims System.

7. Develop a list of questions and issues regarding the system, for discussion with the outgoing contractor during the transition meetings

8. Familiarize themselves with any current regular maintenance activities

9. Provide weekly updates on the status of the transition and key risks and issues.

10. Provide a final report as a summary of the transition period, identifying any outstanding issues that could not be resolved during the transition period, and providing “lessons learned”.

The Transition-In Plan shall describe how the successor Contractor will provide continuous high-quality service to Treasury as the incumbent Contractor prepares to Transition-Out. The plan shall describe the process for a smooth and seamless transition including appropriate staffing, schedule and milestones, risks, and mitigation strategies. The successor Contractor shall update this plan as needed throughout the Transition-In period to ensure alignment with current activities. Changes to the

Transition-In Plan shall be reviewed during the Transition Plan Briefings for Government staff. The first Transition Plan Briefing shall occur within 1 week of award. During the first Transition Plan Briefing, the second Transition Plan Briefing will be scheduled to occur within the Transition-In period. The Contractor shall implement the updated Transition-In Plan only upon approval by the COR.

The Contractor shall attend transitional meetings which include, but are not limited to the following:

I. Project Kick-Off: One meeting for staff introductions during the first week of period of performance.

II. Transition-In Plan Briefings: Project leadership meetings (approximately 2 meetings) to refine the Transition-In Plan.

III. Transition Technical Briefings: Briefings with the incumbent contractor on the TRIP Claims System environment, processes, systems, current state of system documentation, and issues.

IV. Code Review Meetings: Meetings to review software code.

V. The Contractor shall provide the following Transition-In deliverables:

1. Transition-In Plan;

2. Transition Status Reports;

3. Questions for System Discussions: Develop and submit questions to the incumbent contractor prior to each Transition Technical Briefing and Code Review Meeting;

4. Transition Summary Report

B. TASK 2 - PROGRAM MANAGEMENT (FIRM FIXED PRICE/REQUIRED CLIN)

The contractor shall provide personnel who have the necessary technical, project management, and administrative expertise to support the planning and execution of the tasks contained in this PWS.

The Contractor shall provide Project Management (PM) support to ensure that the objectives, scope, deliverables, project schedule, milestones, project structure, development approach, and roles and responsibilities are defined and followed for this contract. The resources, both human resources and other project resources, necessary to support the contract shall be identified and provided. This contract shall be managed according to the specific objectives, deliverables, and milestones.

I. Program Management Plan. The contractor shall provide a Program Management Plan (PMP) which shall describe the proposed management approach and include the following:

1. Be an evolutionary document and baseline for this contract after the Treasury has had an opportunity to comment.

2. Include detailed Standard Operating Procedures (SOPs) for all tasks.

3. Include milestones, tasks, and subtasks required in this contract.

4. Provide for an overall Work Breakdown Structure (WBS), completed in

Microsoft Project, and associated responsibilities and partnerships between Government organizations.

5. During completion of the PMP, the Contractor shall consult with and advise the COR in tailoring and mapping various project management artifacts/documents to ensure adequate visibility, accountability, and compliance.

6. Contractor shall provide the Government with an updated PMP within one week after the Kick-Off meeting. The Treasury will have an opportunity to comment and provide necessary changes, if necessary.

7. Contractor shall update and present the PMP monthly at the first IPT meeting of each month for Treasury approval.

8. Status Meetings: The Contractor will interact with the COR on an ongoing basis to discuss Data Form Reports or other issues within this Scope of Work.

9. Monthly Status Reports (MSR). The Contractor shall provide a MSR using MS Office Suite applications, by the 10th of each month via electronic mail to the Treasury COR. The report shall include the following:

a. Activities during reporting period, by task (Include: On-going activities, new activities, activities completed; progress to date on all above-mentioned activities). Start each section with a brief description of the task.

b. Monthly result of deconfliction efforts.

c. Problems and corrective actions taken. Also include issues or concerns and proposed resolutions to address them.

d. Personnel gains, losses, and status.

e. Government actions required.

f. Schedule (Shows major tasks, milestones, and deliverables;

planned and actual start and completion dates for each).

g. Any change request and level of efforts.

h. Accumulated invoiced cost for the previous month.

C. TASK 3 - PERIODIC REVIEW AND READINESS TESTING – SYSTEM

CERTIFICATION AND ACCREDITATION (FIRM FIXED PRICE/REQUIRED

CLIN)

The Contractor shall test and report on the operational readiness of the TRIP Claims System. Testing shall take place at least once every 120 days unless waived by the Government for some lesser number of testing events. Testing reports shall include, but not be limited to, the following information:

I. The ability of the TRIP Claims System to receive and process claims, with the Contractor working in coordination with Treasury Staff. The ability of the TRIP Claims System to receive and process data call information.

II. The ability of the TRIP Claims System to receive and process recoupment assessments.

III. Testing shall be planned and performed by the TRIP Claims System Contractor, with input and participation from the TRIP Audit Contractor and

Treasury staff. Testing may also involve one or more volunteer insurance companies and include the receipt of company-generated data.

IV. Testing shall be coordinated with the testing of Statistical Agent Capability.

Test reports shall be due seven (7) business days after test completion.

Test report findings shall be presented to Treasury and follow-up activities shall be agreed upon with Treasury.

V. Tests shall be conducted at least once every 120 days, unless waived by the Government for some lesser number of testing events.

VI. Deficiencies found during periodic testing shall be corrected by the Contractor.

VII. The Contractor undertake all activities required to secure and/or maintain the Security Assessment and Authorization of the TRIP Claims Management System and the Statistical Agent System. This shall include, but not be limited to cooperation with Treasury and/or third-party evaluators and the collaborative development, for Treasury review and approval, of information security documentation and assessments identified in Exhibit X of this document.

VIII. The Contractor shall test contingency plans and disaster recovery procedures that provide for continuity of operation in the event that the primary systems and locations are inoperable. The primary operating site and a remote backup site(s) must be within the Continental United States.

Test results shall be delivered within 7 business days after completion of testing and shall be accompanied by a complete set of all procedures and a complete, current set of all systems documentation, systems generated and other reports.

IX. The Contractor shall participate in a “critical Program review” with Treasury at Treasury’s request. This review will be conducted remotely on an annual basis, to the extent requested by Treasury, and is intended to ensure Contractor plans and activities are coordinated with various Treasury offices and other TRIP contractors. Treasury will lead the review and identify in advance any issues to be addressed.

D. TASK 4 - EXPERT AND ANALYTICAL SUPPORT (LABOR HOUR/OPTIONAL

CLIN)

The Contractor shall furnish staff to research, analyze, and make recommendations concerning the conduct of the Program. The staff shall respond to Treasury requests for information and assistance in its efforts to coordinate TRIP activities with, but not limited to, insurers, reinsurers, state regulators, Program advisory bodies, and others. (Past assignments under this task included an actuarial study of probable maximum losses under a scenario.)

The Contractor shall assist Treasury with certifications of acts of terrorism including, but not limited to:

I. loss data collection through the TRIP Claims System

II. consolidation and performing analyses of thresholds, deductibles, repeat loss areas, and other specific areas related to certifications of acts of terrorism.

The Contractor, following certification of an act of terrorism, shall assist Treasury with data collection and development for publication of an estimate of aggregate insured losses which shall be used as the basis for determining whether mandatory recoupment will be required. The Contractor also shall, as required, assist in updating the estimate.

The Contractor shall assist the Treasury with data collection in support of the development of an initial notice to Congress. The initial notice to Congress is due not later than 15 days after certification of an act of terrorism and states whether the Secretary estimates that aggregate insured losses will exceed $100,000,000,000.

The Contractor shall develop, review, and update all necessary materials including systems analysis, systems changes, forms, other program guides and manuals, memoranda, procedures, and documentation for implementing legislative and rule changes. The Contractor shall coordinate with the COR during the execution of these tasks.

The Contractor shall provide ad hoc analyses when tasked by the COR in support of the operational assessment aspects of the Program and budgeting, planning, and evaluation of the Program.

E. TASK 5 - ACTIVATION AND ONGOING OPERATION OF THE TRIP CLAIMS

SYSTEM (LABOR HOUR/OPTIONAL CLIN)

General: Following certification of an act of terrorism and within 10 calendar days after receiving notification from the COR, the Contractor shall activate the TRIP Claims System with necessary core staff, systems and equipment in place. Activation includes, but is not limited to, placing the TRIP Claims System into production, responding to insurer inquiries, and processing insurer claims. The TRIP Claims System shall be available at least 99% of business hours with no disruption in systems availability or operations exceeding 72 hours.

NOTE: The size of any certified act of terrorism is directly proportional and will directly influence the level of effort required by any contractor in performing the following work. Certified acts of terrorism may range from small incidents with few claims that require fewer personnel with the incident being closed out quickly to a larger “September 11” type of incident where the contractor can expect to receive numerous claims that require a substantial staff to process where the incident, which may not be closed for many years. Since the Terrorism Risk Insurance Act was placed into law originally in 2002, no certified acts of terrorism have been declared. Because of this, TRIP is unable to give estimates of “worst-case” requirements for personnel and processing of claims.

I. Receipt of Monthly Claims Reports

1. The Contractor shall receive, review, and record Monthly Claims Reports from the insurers as required by Subpart F of 31 CFR Part 50.

2. At the end of each monthly period during which Monthly Claims Reports are required by Treasury, the Contractor shall provide Treasury within 7 business days an aggregate report of the information required to be reported in the Monthly Claims Report so that Treasury can monitor total loss experience arising from the act of terrorism in question. The Contractor shall also respond to any further questions Treasury may pose arising from the Monthly Claims Report and shall interact with insurers for further information as Treasury may require.

II. Review of Insurers’ Notices and Certifications

1. The Contractor shall receive, review, and record Certifications from the insurers as required by the Act and Subpart H of 31 CFR Part 50.

2. The review shall include the Notice of Deductible Erosion, Certifications of Loss [Initial and Supplementary] as well as any accompanying detailed information, i.e., certifications, schedules and bordereaux, reports, and any related correspondence. See https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/federal-share-claim-process.

3. The Contractor shall review and modify (if needed) any existing workflows and controls, with supporting records and documentation, for the controlled receipt (electronic and conventional) and processing of Certifications and for the preparation of electronic payment “vouchers” for Treasury approval to ensure all payments are processed against the Certifications, accounted for, and dispatched by Treasury to the proper recipients.

4. Notice of Deductible Erosion

a. The Contractor shall review the Notice of Deductible Erosions submitted by insurers and include an initial estimate of aggregate losses for the Program Year, the amount of the insurer deductible, and an estimate of the Federal Share of Compensation for the insurer’s aggregate insured losses. Such notices must also include other necessary information e.g., insurer name and identification of all affiliates, to allow for subsequent processing of insurer requests for payment. To facilitate processing of payment requests, insurers may, at their option, submit with the Notice of Deductible Erosion the Schedule A, Declaration of Direct Earned Premium and Calculation of Insurer Deductible.

https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/federal-share-claim-process https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/federal-share-claim-process https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/federal-share-claim-process

b. Upon receipt of the Notice of Deductible Erosion, directly or from Treasury, the Contractor shall log the receipt and review the Notice of Deductible Erosion for completeness, accuracy, and consistency with reference materials, e.g., A.M. Best reports. The Contractor, within 2 business days, shall contact the insurer to confirm processes for processing claims, estimate time frames for receipt of the Certification(s) of Loss, resolve questions, and to otherwise facilitate the processing of the expected Certification(s) of Loss.

c. The Contractor shall make the record of its reviews available to

Treasury for use in reviews of Notices of Deductible Erosion information by Treasury or by the TRIP Audit Contractor.

5. Certifications of Loss – Initial and Supplementary

a. The Contractor shall review Certifications of Loss [Initial and

Supplementary] for compliance with the rules and form instructions along with the following accompanying schedules:

i. Schedule A, Declaration of Direct Earned Premium and Calculation of Insurer Deductible.

ii. Schedule B, Certification of Compliance with Section 103(b) of TRIA; and,

iii. Schedule C, Bordereau.

b. The Certifications and Schedules may be received electronically, or conventionally, if required.

c. The Contractor shall log and review the insurer submissions for consistency with the Notices of Deductible Erosion, adherence to the Act and regulations and examine for accuracy, internal and month to month consistency and for possible misstatements or miscalculations. Further, the Contractor shall review Schedule A for completeness, accuracy, and consistency against reference materials, e.g., A.M. Best reports.

d. The Contractor’s reviews of the Initial and Supplementary Certifications of Loss, Schedules and any supporting documentation received, shall confirm that the insurer-requested Federal Share of Compensation for insured losses under the Program is consistent with the Act and regulations and does not include compensation for ineligible items, e.g., punitive damages; amounts that the insurer offset through salvage, subrogation, or other recovery; or, amounts the insurer or its insured receives as compensation for an insured loss from another Federal program.

e. The Contractor shall review the schedules, supporting documentation, and separately submitted information regarding underlying claims. The Contractor shall identify and summarize those selected underlying claims that, in keeping with the Treasury TRIP Regulations, Subpart K of 31 CFR Part 50, are above certain threshold dollar amounts and meet other certain statutory criteria to require prior Federal Government approval of certain proposed settlements. The Contractor’s claims management processes shall confirm that, when required, Treasury approvals have been given prior to the processing payment requests to Treasury.

f. The contractor shall establish systems and procedures for reviewing and evaluating the appropriateness of the proposed settlements submitted pursuant to the regulatory requirements of 31 CFR Part 50.82 (now 31 CFR Part 50.102; as in effect July 28, 2004 and codified by the Terrorism Risk Insurance Extension Act of 2005), which requires advance approval by Treasury of proposed settlements of certain causes of action involving insured losses under the Program.

g. The Contractor’s reviews of the Initial and Supplementary Certifications of Loss also shall be done to confirm that an insurer’s recoveries for losses incurred in any Calendar Year, from the Federal Share of Compensation and other sources, shall not be greater than the aggregate of the insurer’s insured losses for acts of terrorism in that Calendar Year. Amounts recovered by an insurer exceeding its aggregate insured losses in a Calendar Year are required to be returned to Treasury within 45 days after the end of the month when such excess recoveries are received by the insurer. The amounts returned exclude such amounts that the insurer has recovered from a reinsurer pursuant to an agreement whereby the reinsurer’s rights take precedence over the obligation of the insurer to repay excess recoveries to Treasury. Any amounts shall be due Treasury within 45 days or amounts may be offset against subsequent claims.

h. The Contractor shall complete, within 10 business days of receipt, the review of Initial and Supplementary Certifications of Loss and supporting documentation. The Contractor, within 10 business days of receipt of an Initial or Supplementary Certification of Loss that is incomplete, in error or otherwise a problem, shall resolve with the insurer any such problems arising from their review of the Initial and Supplementary Certifications of Loss. The Contractor shall document fully any recommendation to withhold or reduce an insurer’s request for compensation. The Contractor shall, as needed, obtain additional information from the insurers, including underlying claims information. The Contractor shall, at least weekly, report unresolved matters and any irregularities to the Treasury.

i. The Contractor shall develop with Treasury a plan for closer examination of selected claims files underlying the insurer’s request for payment. Such files shall be reviewed for compliance with the Act and regulation, proper investigation and processing using appropriate insurance business practices, reasonableness of any litigation settlement not previously approved by the Government, and the reasonableness of the claim payment and the allocated loss adjustment expenses.

j. The Contractor shall, as needed, obtain additional information from the insurers. This process for examining claims files prior to payment will complement and be reinforced by the planned TRIP Audit Contractor’s program of review audit that will generally follow the normal business practices of reinsurers with respect to after payment review or “audit” of losses presented by their ceding companies.

k. Payment of the Federal Share

i. The Contractor shall be responsible for managing the insurer reimbursement process, which includes, but is not limited to, forwarding recommendations for payment through the COR or other authorized staff to the Treasury Bureau of the Fiscal Service (BFS) for payment. The recommendation shall include application of any pro rata reduction in payment as required by Section 103(e) of the Act and implementing regulations.

ii. The Contractor shall develop procedures to recommend Treasury make payment, or payment with reservation of rights, of the Federal Share of Compensation due an insurer for its insured losses, within 1 business day following the completion of the review of the [Initial or Supplementary] Certification of Loss.

iii. Treasury has committed making payments to insurers as promptly as possible, e.g.5 business days following contractor notification of Treasury approval of the insurer’s claim.

iv. The Contractor shall work with Treasury to facilitate Bureau of Fiscal Service (BFS) making payments to insurers following the transmittal from the Contractor and approval by Treasury of the request for payment.

v. Payments to insurers are to be made by electronic funds transfer and insurers are required to register with the System for Award Management (SAM) at www.sam.gov at the time they register with the TRIP Claims System and/or complete the Notice of Deductible Erosion. The Contractor shall be the focal point for all contact with insurers relating to complaints regarding payment. This includes any follow up with Treasury associated with insurer registration in the Government’s SAM.

vi. The Contractor shall make recommendations for payment in written form, with an authorized signature of the Contractor, or in secure electronic form. All requests for payment shall be submitted to the COR or other authorized staff for approval prior to payment by Treasury BFS. Requests shall contain, at a minimum, a reference number assigned by the Contractor in coordination with Treasury BFS, and shall include the insurer’s name, the date of the Certification of Loss, and the amount and shall also include the pro rata reduction and net payment amounts, as appropriate.

vii. Treasury BFS will make payment to insurers in accordance with Certifications of Loss and the Treasury-approved Contractor recommendations.

Treasury will inform the Contractor of the date and amount of each payment made as well as any repayments received. The Contractor shall be the focal point for receipt of insurer requests for information and following up on payment issues with Treasury.

viii. The Contractor shall, operate financial systems which ensure proper financial control over payments of the Federal Share of Compensation due an insurer for its insured losses. The Contractor shall provide physical security and internal controls to safeguard the payment request processes and records and to provide information on claims by insurers.

ix. The Contractor shall not disburse money or accept receipts of money on behalf of the Treasury.

l. Program Accounting and Payments and Reconciliations of

Payments of the Federal Share of Compensation

i. The Contractor shall maintain records for each insurer claiming reimbursement by Calendar Year and in addition, records shall be developed and maintained by Federal fiscal year.

ii. The Contractor shall be responsible for maintaining financial records for Program compensation payments, By the 5th business day after the end of each month, the Contractor shall prepare a detailed report showing, by insurer and overall, all payments and correcting or recovery transactions, e.g., by Calendar Year [on an event year basis], by fiscal year by recipient, and by CAT code. This report and/or the data shall be delivered both to Treasury and to the TRIP statistical agent, if another contractor, in agreed upon forms and formats.

iii. At least monthly, the Contractor shall reconcile its accounts and records with those maintained by Treasury and with the Certifications of Loss submitted by the insurers. This reconciliation shall include, but not be limited to, the following information:

1. The net amount due to or due from each insurer claiming payment with all payments made by Treasury and all receipts, payables, or receivables.

Any overpayments to an insurer are required to be returned to Treasury within 45 calendar days.

iv. The contractor shall cooperate with Treasury and provide such information as necessary to ensure that Treasury’s financial reporting is accurate and timely.

v. The Contractor shall produce and maintain for research and audit purposes, in electronic format. The Contractor shall, every six months, provide Treasury with a complete, up-to-date set of all procedures, including data and report dictionaries, and sample copies of all systems generated and other reports. All materials shall be suitably safeguarded.

m. Reporting

i. The Contractor shall be responsible for reporting on claims and insurer payments. Treasury will perform all formal accounting and external financial reporting under the Chief Financial Officers Act.

ii. The Contractor shall operate and maintain a system and database(s) for regular reporting, as well as for ad hoc reporting on the Program and operations of the TRIP Claims System.

iii. The TRIP Claims System shall be capable of receipt of information from insurers and of exchanging data via secured web-link with the Treasury and/or a Program statistical agent.

iv. The system and database shall have the capability to perform regular archiving of information to perform retrospective analyses and research.

v. The Contractor shall submit by the 15th of the month, a

Monthly Progress Narrative report covering work planned and accomplished during the prior month of the task. The reports, shall also be utilized for the Contractor’s performance as Program “statistical agent” (see paragraphs 5.4)

vi. The Contractor shall establish reviews and procedures as may be required to ensure the control, quality, consistency, and integrity of data.

vii. The Contractor shall establish and maintain a system of report and data controls and reconciliation to ensure quality, consistency, comparability, and economy in all data and reports provided to and for the Government and produced for internal operations and control. The controls shall be exercised, and the reconciliations shall be performed for all routinely created and ad hoc reporting.

n. Customer and Other Services

i. The Contractor shall exercise control over all incoming correspondence and shall respond to correspondence within 7 business days.

ii. Responses to case-by-case Program policy-related inquiries will be identified and promptly coordinated with the Treasury within 2 business days of receipt. All responses will be written in plain English and an electronic file copy maintained for review.

iii. TRIP Information Center -- The Contractor shall have staff trained in insurance and reinsurance practices and terminology and the requirements of the Program.

iv. The contractor shall accept telephone calls from at least 9 am to 5 pm Eastern Standard Times (EST)/Eastern Daylight-Saving Time (EDT), weekdays. Inquiries and responses will be characterized as to subject area and reduced to writing. Call volumes and trends shall be reported weekly.

v. Problem inquiries shall be reduced to writing and resolved or responded to within 5 business days. If the problem has been identified by an insurer, Treasury shall be informed of the matter within 1 business day.

vi. Help Desk -- The Contractor shall have staff to research and resolve operating problems identified by the insurers or by Treasury. The Contractor shall also provide “Help Desk” services for systems-related matters. Help Desk level matters shall be reduced to writing, logged, reported to Treasury, and resolved within 2 business days.

vii. The Contractor shall have staff to research and document claims matters that may be in dispute between

Treasury and an insurer. The Contractor shall respond to requests for such assistance within 5 business days of receipt.

viii. The Contractor shall, make available to Treasury’s Office of the General Counsel or to the Office of the Inspector General within 5 business days all the contractor’s pertinent books, documents, papers, and records that may be requested because of litigation, audit, or other matter.

o. Audit and Audit Support

i. The Contractor shall provide space and other reasonable support and shall cooperate with Treasury auditors or independent auditors engaged by Treasury to conduct reviews, financial and other audits of the Program.

ii. The Contractor shall provide similar support to the TRIP Audit Contractor in its review of the TRIP Claims System and as it conducts the planned program of reviewing or auditing losses that will generally follow the normal business practices of reinsurers with respect to claims presented by their ceding companies.

iii. 31 CFR Part 50, Subpart I – Audit and Investigative Procedures, Section 50.60, Audit Authority, provide that the Secretary of the Treasury, or his authorized representatives, shall have access to all books, documents, papers, and records of an insurer that are pertinent to amounts paid to the insurer as the Federal Share of compensation for insured losses for the purpose of investigation, confirmation, audit, and examination.

The Contractor shall, as requested, make available within 5 business days to the auditors and to the TRIP Audit Contractor, all the TRIP Claims System’s books, documents, papers, and records that are pertinent to amounts paid to an insurer. Further, the TRIP Claims System itself shall be subject to annual audit by the Treasury or its authorized representative.

F. TASK 6 - PERIODIC REVIEW AND TESTING OF THE STATISTICAL

AGENT CAPABILITY – SYSTEM SECURITY AND CERTIFICATION AND

ACCREDITATION (FIRM FIXED PRICE/REQUIRED CLIN)

I. The Contractor shall test and report on the readiness of the TRIP

Statistical Agent Capability of the TRIP Claims System. Testing shall be coordinated with the testing of the TRIP Claims System.

II. Testing shall be planned and performed with Contractor, TRIP Auditor and Treasury staff participation.

III. Test reports shall be due 7 business days after test completion.

IV. Test report findings shall be presented to Treasury and follow up activities shall be agreed upon.

V. Tests shall be conducted at least every 120 days. Deficiencies found because of periodic testing shall be corrected by the contractor at no additional cost to Treasury. If testing determines that system enhancements are required, e.g., to improve flexibility or user friendliness, these will be addressed via requirements issued pursuant to the Enhancements provision of this PWS.

VI. The Statistical Agent System shall be included in the activities required to secure and maintain the Certification and Accreditation of the TRIP Claims System in accordance with all applicable regulations.

VII. The Contractor shall test contingency plans and disaster recovery procedures that ensure continuity of capability if the primary systems and locations are inoperable. The primary operating site and the remote backup site(s) must be within the Continental United States.

VIII. Test results shall be delivered within 7 business days after completion of testing and shall be accompanied by a complete set of all procedures and a complete, current set of all systems documentation, systems generated, and other reports.

G. Task 7 - STATISTICAL AGENT/REPORTING AND ANALYSIS FOLLOWING

ACTIVATION (LABOR HOUR/OPTIONAL CLIN)

I. Following certification of an act of terrorism and within 10 calendar days after receiving notification from the COR, the Contract shall activate the TRIP data exchange and statistical agent systems and establish required databases.

II. The Contractor shall certify that all necessary staff, systems, and equipment described in task 4 are in place and ready to begin operations.

III. The Contractor shall ensure that all systems are available at least 99% of business hours and that no disruption in systems availability or operations exceeds 72 hours for the term of the Task.

IV. The Contractor shall include in their Monthly Progress Narrative Report the work planned and accomplished pursuant to this Task. The Monthly Progress Narrative Report shall be submitted within 15 business days after the end of each month.

V. The systems shall be utilized for analyses, developing and reporting of TRIP experience on both a Calendar Year [event year] and Federal fiscal year basis, to provide for special reporting, to measure and analyze trends, provide data for input to risk and other models, and otherwise support the information needs of the Program, e.g., to estimate or determine actual aggregate insured losses in order to comply with the $100 billion Calendar Year cap on payments for insured losses, the required notice to Congress and the calculation of the pro rata reduction in payments to insurers.

VI. The Contractor shall provide for secure web-based access to system(s) data by designated Treasury offices.

VII. The Contractor, as needed, shall also provide disks, hard copy, or other media. The Contractor shall be responsible for analysis and formulation of recommendations to Treasury of changes to enhance the dissemination of data to designated users.

VIII. Data collected from the Program claims management contractors shall be validity edited/audited and shall be compared and balanced against Program disbursements.

IX. The Contractor shall operate and maintain the systems and database(s) for regular and ad hoc reporting of TRIP operations. The Contractor shall assist Treasury in the design of standard and ad hoc reports.

X. The Contractor shall establish, as an integral element of all statistical and financial reporting processes, such reviews and procedures as may be required for the control, quality, consistency, and integrity of data. The controls shall be exercised, and the reconciliations shall be performed for all routinely created and ad hoc reporting.

XI. Every 6 months, the Contractor shall update all procedures, including data and report dictionaries, and sample copies of all systems-generated and other reports. All materials shall be safeguarded.

H. TASK 8 - RECOUPMENT (LABOR HOUR/OPTIONAL CLIN)

I. The Contractor shall operate the TRIP Claims System to accomplish the recoupment of funds as required by TRIA 103(e)(7) and Subpart J of Part 50.

II. As directed by the COR, implementation of the Act will require: (a) the ability to support a data call to insurers to determine the scope of losses beyond those submitted for reimbursement; (b) analysis of data call and other information to support calculations and Treasury determinations regarding the necessity for and amounts of recoupment surcharges and in accordance with Statutory provisions; and (c) support the collection of recoupment amounts to the schedules set by the 2019 Reauthorization Act.

III. The Contractor, if determined to be needed and upon notice of the COR and within seven (7) business days, shall utilize the data call features of the TRIP Claims System for collection of industry loss information not otherwise reported to the TRIP Claims System. The Contractor shall analyze and report on the data received, and with other industry loss information, assist Treasury in the determination of recoupment surcharge requirements.

IV. The Contractor, if determined to be needed and upon notice of the COR and within seven (7) business days, shall assist Treasury in notifying insurers of surcharge requirements.

V. The Contractor shall operate the TRIP Claims System to allow insurers to calculate and complete monthly and annual statement of surcharge remittances due Treasury and to link to Treasury’s Pay.gov site for the purpose of making payments.

VI. In addition, the Contractor shall monitor and analyze insurer submissions and actual remittances so that delinquencies can be addressed, and statement submissions may be reconciled with Pay.gov receipts.

I. TASK 9 –TRANSITION-OUT OF OPERATIONS SUPPORT

(Labor Hour/Optional CLIN)

I. Upon notice by the Contracting Officer and within the time frame specified by the Contracting Officer, the Contractor shall support a phase out or transition of operations and shall cooperate with the Treasury and/or any successor(s). This shall include but not be limited to:

1. A Transition-Out Plan for orderly cessation of operations and transfer of the performance of services by the Contractor to another Contractor(s) or Treasury. The plan shall address provisions for coordination of efforts and assistance including archiving of systems and records and the performance of "parallel” systems testing.

2. Participating in transition-out activities, including planning sessions, application demonstrations, training, and ad hoc information sharing.

II. A final report outlining all work accomplished under this contract and any problems encountered. The Contractor shall also make recommendations regarding the future performance of services specified herein.

III. Online access and or copies of selected data, data files, reports, and/or hard copy materials received, produced, and maintained throughout the life of the contract.

IV. A Transition-Out plan shall be due from the Contractor within 5 days of the award of the Transition-Out CLIN.

J. Task 10 - ENHANCEMENTS (LABOR HOUR/OPTIONAL CLIN)

I. The purpose of this task area is to provide a mechanism by which Treasury can attain ongoing system enhancement support activities without issuing a modification definitizing development/modernization/enhancement (DME) work for each enhancement. This task area is optional and can be exercised as needed during each year of performance.

II. Enhancements that require fifteen (15) or less hours to complete shall be included in any maintenance activities. Any enhancements which are expected to require more than fifteen (15) hours are covered under this Task.

III. As this optional line item is designed to satisfy Treasury’s need for systems enhancement support, not to obtain a single defined outcome, Treasury deems it to be a severable service.

IV. When the government determines the need for specific development/modernization/enhancement (DME) work, Treasury will issue a Request for Quote with a PWS to the contractor. The contractor shall propose a technical approach, level of effort, and staffing mix that will allow it to execute the anticipated release(s). The Contractor shall provide information concerning technical dependencies and alternative solutions.

Treasury will evaluate the proposed approach, the level of effort and staffing mix. If it is found acceptable, the Contracting Officer will issue a modification funding the optional line item.

V. The Contractor shall analyze requirements gathered to ensure alignment with the following:

1. Treasury business processes

2. Existing database structures

3. Existing system designs

4. Data quality and interfaces with existing systems inside and outside of Treasury

5. Data Standards

6. Treasury technology standards

7. Treasury Software Development standards (EPLC)

8. Required security models

6. The Contractor shall document, track, and trace requirements using

Treasury established tools throughout the lifecycle of the system.

7. The Contractor shall be responsible for the application of the design standard in the appropriate release cycles as prioritized with other system enhancements over the period of performance of this Task Order.

8. The Contractor shall perform programming activities and use languages consistent with Treasury standards and technologies.