RFR 1503 Providing Consulting Services to Assist in the Selection of Life Insurance Carrier.docx

THE COMMONWEALTH OF MASSACHUSETTS

GROUP INSURANCE COMMISSION

19 STANIFORD STREET

BOSTON, MA 02114

REQUEST FOR RESPONSES

GICPND1503

PROVIDING CONSULTING SERVICES

TO ASSIST IN THE SELECTION OF A

LIFE INSURANCE CARRIER

April 1, 2015

Table of Contents

NOTICE TO EMPLOYEE BENEFITS CONSULTANTS AND OTHER INTERESTED PARTIES

March 30, 2015

Invitation is hereby given for responses to provide consulting services to the Commonwealth of Massachusetts Group Insurance Commission (GIC). The GIC seeks a consultant to provide project management, actuarial analysis, and technical assistance as it (1) develops a Request for Response (RFR) for a Life Insurance Carrier to provide services to approximately 161,000 members of the GIC’s life insurance plans.

In general, respondents must have substantial experience in the design, procurement, and implementation of large-scale life insurance plans, including financial and operational analyses and assessments, as well as substantial experience working with large employers on comparable projects.

The GIC is a quasi-independent public agency, providing benefits to approximately 435,000 active employees, retirees, survivors and dependents of the Commonwealth of Massachusetts and certain other Massachusetts public sector entities. The GIC is responsible for negotiating, contracting, and administering basic and optional life insurance for a subset of this population (state employees and retirees and certain retired municipal teachers). Approximately 100,000 employees, retirees, and retired municipal teachers elected the basic life insurance coverage, while 61,000 employees and retirees enrolled in both basic and optional life insurance. GIC costs for the life insurance provided under this contract are estimated to be $50 million for the fiscal year, which ended June 30, 2015.

The full text of the GIC’s request for responses (RFR) may be obtained via the Internet on or about March 27, 2015, using the Commonwealth’s Procurement Access and Solicitation System (COMMBUYS). COMMBUYS is located at https://www.commbuys.com/bso/. The file number for this RFR is GICPND1503. Its title is “Providing Consulting Services to Assist in the Selection of a Life Insurance Carrier.” Questions regarding the use of COMMBUYS should be directed to staff at the COMMBUYS Help Desk, (888)627-8283. Questions regarding this RFR should be directed to John Schorum, Director at the GIC, (617)727-2310 x7030 or via email at john.schorum@state.ma.us.

The RFR will state the schedule and due date for responses, which is tentatively set for May 1, 2015. A bidders’ conference, to be held after the RFR is released, is tentatively set for May 15, 2015.

The GIC reserves the right to reject any or all responses or to accept any proposal or portion thereof, if deemed to be in the best interests of the Commonwealth and its covered members. This procurement is covered under the World Trade Organization Government Procurement Agreement, which was entered into by the United States and other countries effective January 1, 1996.

Dolores L. Mitchell Executive Director Group Insurance Commission

COMMBUYS DOCUMENTATION

Procurement Contact Persons:

Procurement Management Group/Category: Professional Services/OTHER – All Others Not Shown or in Combination

1. Description or purpose of procurement:

The GIC seeks consulting services for the purpose of assisting the Commission with its procurement of a carrier for the Group Insurance Commission’s group term life insurance plans for a multi-year period beginning July 1, 2015. Such services will include, but not be limited to, evaluation of the current program, assistance in the development and publication of a Request for Responses, evaluation of submitted bids, support in the selection of a carrier, and assistance with implementation and ongoing technical support.

2. Identify acquisition method (choose one of the following):

3. Identify whether single or multiple contractors are required for contract(s):

Single Contractor [ X ] Multiple Contractors [ ]

4. Identify whether single or multiple departments will be able to use:

Only Procuring Department May Contract Under RFR [ X ] Option to Allow Other Departments/Political Subdivisions to Contract Under RFR [ ]

5. Expected duration of contract:

6. Anticipated expenditures, funding, or compensation for expected duration:

7. Indicate contract performance and business specifications:

See all sections of the RFR

8. Instructions for submissions of responses:

See Section IV of the RFR -- Bid Specifications and Submission Process

9. Deadline for responses (or procurement calendar):

See Section III of the RFR -- Consultant Procurement and Vendor Procurement Schedules Indicate deadline date: April 24, 2015 Indicate deadline time: 12:00 p.m. (noon) Will a Bidders Conference be offered? Yes [ ] No [ X ] Will an opportunity for written questions be offered? Yes [ X ] No [ ] Indicate deadline date: April 10, 2015 at noon.

Please refer to the COMMBUYS website frequently for changes to this schedule.

10. Finalist interviews will be held Please note finalist interviews for the Consultant Procurement will be conducted by the GIC on Monday, May 4, 2015 and Tuesday, May 5, 2015 (tentative).

11. RFR Attachments In addition to complying with the requirements of Section III – Consultant Tasks and Narrative Proposal, the following forms/certifications must be downloaded from the COMMBUYS system and submitted with the proposal in order for the proposal to be considered complete. These forms can be obtained in the “Forms and Terms” section of this RFR on the COMMBUYS website: http://www.COMMBUYS.com.

Respondents are solely responsible for obtaining and completing required attachments that are identified in this RFR and for checking COMMBUYS for any addenda or modifications that are subsequently made to this RFR or the required attachments.

· Commonwealth Terms and Conditions

· Standard Contract Form and Instructions

· Consultant Contractor Mandatory Submissions Form

· Certification - Conflict of Interest - Consultants

· Consultant Performance Guarantees Form

· Request for Taxpayer Identification Number and Certification (W-9)

· Contractor Authorized Signatory Listing

· Authorization for Electronic Funds Transfer

· SDP Form 1 (SDP Plan Commitment)

· Prompt Payment Discount Form

Important note: Please make sure that the printed forms you use in your bid have the complete text as you see it on your computer; occasionally the downloaded version drops important language – usually part of the signature section of the state contract form – so please check your documents carefully.

RFR – REQUIRED SPECIFICATIONS

The terms of 801 CMR 21.00: Procurement of Commodities and Services (and 808 CMR 1.00: Compliance, Reporting and Auditing for Human and Social Services, if applicable) are incorporated by reference into this RFR. Words used in this RFR shall have the meanings defined in 801 CMR 21.00 (and 808 CMR 1.00, if applicable). Additional definitions may also be identified in this RFR. Other terms not defined elsewhere in this document may be defined in OSD’s Glossary of Terms. Unless otherwise specified in this RFR, all communications, responses, and documentation must be in English, all measurements must be provided in feet, inches, and pounds and all cost proposals or figures in U.S. currency. All responses must be submitted in accordance with the specific terms of this RFR.

COMMBUYS Market Center. COMMBUYS is the official source of information for this Bid and is publicly accessible at no charge at www.commbuys.com. Information contained in this document and in COMMBUYS, including file attachments, and information contained in the related Bid Questions and Answers (Q&A), are all components of the Bid, as referenced in COMMBUYS, and are incorporated into the Bid and any resulting contract.

Bidders are solely responsible for obtaining all information distributed for this Bid via COMMBUYS. Bid Q&A supports Bidder submission of written questions associated with a Bid and publication of official answers.

It is each Bidder’s responsibility to check COMMBUYS for:

· Any amendments, addenda or modifications to this Bid, and

· Any Bid Q&A records related to this Bid.

The Commonwealth accepts no responsibility and will provide no accommodation to Bidders who submit a Quote based on an out-of-date Bid or on information received from a source other than COMMBUYS.

COMMBUYS Subscription. Bidders may elect to obtain a free COMMBUYS Seller subscription which provides value-added features, including automated email notification associated with postings and modifications to COMMBUYS records. However, in order to respond to a Bid, Bidders must register and maintain an active COMMBUYS Seller subscription account.

All Bidders submitting a Quote (previously referred to as Response) in response to this Bid (previously referred to as Solicitation) agree that, if awarded a contract: (1) they will maintain an active seller account in COMMBUYS; (2) they will, when directed to do so by the procuring entity, activate and maintain a COMMBUYS-enabled catalog using Commonwealth Commodity Codes; (3) they will comply with all requests by the procuring entity to utilize COMMBUYS for the purposes of conducting all aspects of purchasing and invoicing with the Commonwealth, as added functionality for the COMMBUYS system is activated; (4) Bidder understands and acknowledges that all references to the Comm-PASS website or related requirements throughout this RFR, shall be superseded by comparable requirements pertaining to the COMMBUYS website; and (6) in the event the Commonwealth adopts an alternate market center system, successful Bidders will be required to utilize such system, as directed by the procuring entity. Commonwealth Commodity Codes are based on the United Nations Standard Products and Services Code (UNSPSC).

The COMMBUYS system introduces new terminology, which bidders must be familiar with in order to conduct business with the Commonwealth. To view this terminology and to learn more about the COMMBUYS system, please visit the COMMBUYS Resource Center.

Multiple Quotes. Bidders may not submit Multiple Quotes in response to a Bid unless the RFR authorizes them to do so. If a Bidder submits multiple quotes in response to an RFR that does not authorize multiple responses, only the latest dated quote submitted prior to the bid opening date will be evaluated.

Quote Content. Bid specifications for delivery, shipping, billing, and payment will prevail over any proposed Bidder terms entered as part of the Quote, unless otherwise specified in the Bid.

The Operational Services Division’s Supplier Diversity Program offers training on the SDP Plan requirements. The dates of upcoming trainings can be found at: http://www.mass.gov/anf/budget-taxes-and-procurement/procurement-info-and-res/osd-events-and-training/osd-training-and-outreach.html. In addition, the SDP Webinar can be located on the SDP website at www.mass.gov/SDP.

Supplier Diversity Program Subcontracting Policies. In addition to the Subcontracting Policies (See Subcontracting Policies section below and see Section 9, Subcontracting By Contractor, in the Commonwealth Terms and Conditions) that apply to all subcontracted services, agencies may define specific required deliverables for a contractor’s SDP Plan, including, but not limited to, documentation necessary to verify subcontractor commitments and expenditures with Minority- or Women-Owned Business Enterprises (M/WBEs) and Service-Disabled Veteran-Owned Business Enterprises (SDVOBE) for the purpose of monitoring and enforcing commitments made in a contractor’s Supplier Diversity Program (SDP) Plan.

Best Value Selection and Negotiation. The Strategic Sourcing Team or SST (formerly referred to as Procurement Management Team or PMT) may select the response(s), which demonstrates the best value overall, including proposed alternatives that will achieve the procurement goals of the department. The SST and a selected bidder, or a contractor, may negotiate a change in any element of contract performance or cost identified in the original RFR or the selected bidder’s or contractor’s response which results in lower costs or a more cost effective or better value than was presented in the selected bidder’s or contractor’s original response.

Bidder Communication. Bidders are prohibited from communicating directly with any employee of the procuring department or any member of the SST regarding this RFR except as specified in this RFR, and no other individual Commonwealth employee or representative is authorized to provide any information or respond to any question or inquiry concerning this RFR. Bidders may contact the contact person for this RFR in the event this RFR is incomplete or the bidder is having trouble obtaining any required attachments electronically through COMMBUYS.

Contract Expansion. If additional funds become available during the contract duration period, the department reserves the right to increase the maximum obligation to some or all contracts executed as a result of this RFR or to execute contracts with contractors not funded in the initial selection process, subject to available funding, satisfactory contract performance and service or commodity need.

Costs. Costs, which are not specifically identified in the bidder’s response, and accepted by a department as part of a contract, will not be compensated under any contract awarded pursuant to this RFR. The Commonwealth will not be responsible for any costs or expenses incurred by bidders responding to this RFR.

Debriefing. This is an optional specification for non-POS RFRs. Non-successful bidders may request a debriefing from the department that issued the RFR. Department debriefing procedures may be found in the RFR.

Electronic Communication/Update of Bidder’s/Contractor’s Contact Information. It is the responsibility of the prospective bidder and awarded contractor to keep current on COMMBUYS the email address of the bidder’s contact person and prospective contract manager, if awarded a contract, and to monitor that email inbox for communications from the SST, including requests for clarification. The SST and the Commonwealth assume no responsibility if a prospective bidder’s/awarded contractor’s designated email address is not current, or if technical problems, including those with the prospective bidder’s/awarded contractor’s computer, network or internet service provider (ISP) cause email communications sent to/from the prospective bidder/awarded contractor and the SST to be lost or rejected by any means including email or spam filtering.

Electronic Funds Transfer (EFT). All bidders responding to this RFR must agree to participate in the Commonwealth Electronic Funds Transfer (EFT) program for receiving payments, unless the bidder can provide compelling proof that it would be unduly burdensome. EFT is a benefit to both contractors and the Commonwealth because it ensures fast, safe and reliable payment directly to contractors and saves both parties the cost of processing checks. Contractors are able to track and verify payments made electronically through the Comptroller’s Vendor Web system. A link to the EFT application can be found on the OSD Forms page (www.mass.gov/osd). Additional information about EFT is available on the VendorWeb site (www.mass.gov/osc). Click on MASSfinance.

Successful bidders, upon notification of contract award, will be required to enroll in EFT as a contract requirement by completing and submitting the Authorization for Electronic Funds Payment Form to this department for review, approval and forwarding to the Office of the Comptroller. If the bidder is already enrolled in the program, it may so indicate in its response. Because the Authorization for Electronic Funds Payment Form contains banking information, this form, and all information contained on this form, shall not be considered a public record and shall not be subject to public disclosure through a public records request.

The requirement to use EFT may be waived by the SST on a case-by-case basis if participation in the program would be unduly burdensome on the bidder. If a bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in its response. The SST will consider such requests on a case-by-case basis and communicate the findings with the bidder.

Environmental Response Submission Compliance. In the event that paper submissions are required and in an effort to promote greater use of recycled and environmentally preferable products and minimize waste, all required paper responses that are submitted should comply with the following guidelines:

· All copies should be printed double sided.

· All submittals and copies should be printed on recycled paper with a minimum post-consumer content of 30% or on tree-free paper (i.e. paper made from raw materials other than trees, such as kenaf). To document the use of such paper, a photocopy of the ream cover/wrapper should be included with the response.

· Unless absolutely necessary, all responses and copies should minimize or eliminate use of non-recyclable or non-re-usable materials such as plastic report covers, plastic dividers, vinyl sleeves and GBC binding. Three ringed binders, glued materials, paper clips, and staples are acceptable.

· Bidders should submit materials in a format, which allows for easy removal and recycling of paper materials.

· Bidders are encouraged to use other products, which contain recycled content in their response documents. Such products may include, but are not limited to, folders, binders, paper clips, diskettes, envelopes, boxes, etc. Where appropriate, bidders should note which products in their responses are made with recycled materials.

· Unnecessary samples, attachments, or documents not specifically asked for should not be submitted.

HIPAA: Business Associate Contractual Obligations. Bidders are notified that any department meeting the definition of a Covered Entity under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) will include in the RFR and resulting contract sufficient language establishing the successful bidder’s contractual obligations, if any, that the department will require in order for the department to comply with HIPAA and the privacy and security regulations promulgated thereunder (45 CFR Parts 160, 162, and 164) (the Privacy and Security Rules). For example, if the department determines that the successful bidder is a business associate performing functions or activities involving protected health information, as such terms are used in the Privacy and Security Rules, then the department will include in the RFR and resulting contract a sufficient description of business associate’s contractual obligations regarding the privacy and security of the protected health information, as listed in 45 CFR 164.314 and 164.504 (e), including, but not limited to, the bidder's obligation to: implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of the protected health information (in whatever form it is maintained or used, including verbal communications); provide individuals access to their records; and strictly limit use and disclosure of the protected health information for only those purposes approved by the department. Further, the department reserves the right to add any requirement during the course of the contract that it determines it must include in the contract in order for the department to comply with the Privacy and Security Rules. Please see other sections of the RFR for any further HIPAA details, if applicable.

Minimum Quote (Bid Response) Duration. Bidders Quotes made in response to this Bid must remain in effect for at least 90 days from the date of quote submission.

Prompt Payment Discounts (PPD). All bidders responding to this procurement must agree to offer discounts through participation in the Commonwealth Prompt Payment Discount (PPD) initiative for receiving early and/or on-time payments, unless the bidder can provide compelling proof that it would be unduly burdensome. PPD benefits both contractors and the Commonwealth. Contractors benefit by increased, usable cash flow as a result of fast and efficient payments for commodities or services rendered. Participation in the Electronic Funds Transfer initiative further maximizes the benefits with payments directed to designated accounts, thus eliminating the impact of check clearance policies and traditional mail lead time or delays. The Commonwealth benefits because contractors reduce the cost of products and services through the applied discount. Payments that are processed electronically can be tracked and verified through the Comptroller’s Vendor Web system. The PPD form can be found as an attachment for this Bid on COMMBUYS.

Bidders must submit agreeable terms for Prompt Payment Discount using the PPD form within their proposal, unless otherwise specified by the SST. The SST will review, negotiate, or reject the offering as deemed in the best interest of the Commonwealth.

The requirement to use PPD offerings may be waived by the SST on a case-by-case basis if participation in the program would be unduly burdensome on the bidder. If a bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in or attached to the PPD form.

Public Records. All responses and information submitted in response to this RFR are subject to the Massachusetts Public Records Law, M.G.L., c. 66, s. 10, and to c. 4, s. 7, ss. 26. Any statements in submitted responses that are inconsistent with these statutes shall be disregarded.

Reasonable Accommodation. Bidders with disabilities or hardships that seek reasonable accommodation, which may include the receipt of RFR information in an alternative format, must communicate such requests in writing to the contact person. Requests for accommodation will be addressed on a case-by-case basis. A bidder requesting accommodation must submit a written statement which describes the bidder’s disability and the requested accommodation to the contact person for the RFR. The SST reserves the right to reject unreasonable requests.

Restriction on the Use of the Commonwealth Seal. Bidders and contractors are not allowed to display the Commonwealth of Massachusetts Seal in their bid package or subsequent marketing materials if they are awarded a contract because use of the coat of arms and the Great Seal of the Commonwealth for advertising or commercial purposes is prohibited by law.

Subcontracting Policies. Prior approval of the department is required for any subcontracted service of the contract. Contractors are responsible for the satisfactory performance and adequate oversight of its subcontractors. Human and social service subcontractors are also required to meet the same state and federal financial and program reporting requirements and are held to the same reimbursable cost standards as contractors.

BACKGROUND

The Group Insurance Commission (GIC) is a quasi-independent state agency governed by a seventeen-member body (the Commission) appointed by the Governor. The GIC is located administratively within the Executive Office of Administration and Finance, and is responsible for providing health insurance and other benefits to the Commonwealth’s employees and retirees and their survivors and dependents, as well as certain municipalities. The GIC designs, implements and manages employee and retiree benefit plans, negotiates plan rates, and continually evaluates the nature, scope, and costs of its programs. Since employee benefits are not part of the state employee collective bargaining process, the GIC designs its benefit program within the parameters set by the Commission and the Legislature. In addition to health insurance, the GIC sponsors life insurance, long-term disability insurance, dental and vision coverage for employees not covered by collective bargaining, a retiree discount vision plan and retiree dental plan, and a pre-tax health care spending account and dependent care assistance program for active employees.

The GIC operates in conformance with the state’s fiscal year, in which a fiscal year begins on July 1 and ends on the following June 30. For example, the GIC is currently in Fiscal Year 2015: this fiscal year began on July 1, 2014 and will end on June 30, 2015.

The Group Insurance Commission is responsible for negotiating, contracting for and administering group term life insurance benefits for active and retired state employees and certain retired municipal teachers. The current vendor is Hartford Life and Accident Insurance Company. The Commission offers three contributory group term life insurance plans:

1. A $5,000 basic life insurance benefit for approximately 155,000 state employees and retirees with 75-90% of the premium contributed by the Commonwealth. This basic life insurance is coupled with basic accidental death and dismemberment insurance.

2. All state employees who have basic life insurance coverage may elect optional life insurance coverage with a matching amount of accidental death and dismemberment insurance. Retirees may continue or decrease their coverage but may not increase their optional life above the coverage they had at retirement. Employees and retirees pay 100% of the premium for this coverage. Maximum coverage is a function of salary. Employees may elect up to eight times their salary. Approximately 60,800 employees and retirees are currently enrolled in the optional life insurance plan, with a combined benefit worth over $12.5 billion.

3. Retired Municipal Teachers (RMT) life insurance and RMT Life/AD&D coverage varies from $1,000-$15,000, depending upon the governmental unit from which the teacher retired. The retiree pays a small portion of the premium. The amount of insurance coverage for this group is approximately $27.5 million for 6,700 insureds. Retired municipal teachers are not eligible for optional life insurance coverage through the GIC.

Since the GIC’s contract with the current carrier is scheduled to end on June 30, 2016, the GIC will need to select a carrier to provide these benefits for the period from July 1, 2016 through at least June 30, 2019, with (2) one-year renewals at the option of the GIC. Historically, the GIC has used the procurement to evaluate its benefit design and to make changes, if necessary. It is for this purpose that the GIC seeks consulting assistance.

CONSULTANT TASKS AND RESPONSIBILITIES

Consultant Tasks The chosen vendor will provide technical assistance and support with planning and managing the selection process for a life insurance carrier, including developing a Request for Responses (RFR) for potential carriers and evaluating the respondents’ proposals and rates.

Specifically, the consultant will assist the Commission by performing the following tasks:

Task 1. Review current GIC life insurance plans.

Task 2. The selected consultant will review the level of benefits, tax implications, rate appropriateness, and claims experience in order to provide the context for considering any possible changes to the program.

Task 3. The selected consultant will work with the GIC staff to finalize a set of review criteria for evaluating and selecting the next life insurance carrier. The criteria will incorporate the consultant’s view of the current plans’ benefits, operational structures, specific GIC requirements, and potential benefit changes (enhancements or modifications) to keep the plan attractive and affordable.

Task 4. Develop standardized rates and retention bid forms, as well as data exhibits using the present carrier’s claims experience, enrollment data and premium paid for inclusion in the RFR.

Task 5. Assist with drafting the RFR.

Task 6. Identify and notify major insurance carriers of the impending RFR.

Task 7. Attend a bidders’ conference and assist the GIC staff in answering questions from potential bidders about the RFR.

Task 8. In conjunction with GIC staff, prepare written responses to bidders’ questions, assist with the threshold review, evaluate carrier responses and score the bids. The consultant will be expected to review the responses, using the criteria developed for the RFR. Once the consultant’s and the GIC’s reviews are completed, the GIC and the consultant’s staff will meet to review the results of their respective evaluations, identify any significant differences in the results and reconcile differences, if necessary.

Task 9. Plan and manage the finalist interviews and reference checks. The selected consultant will be expected to take a lead role in the interview process, schedule the respondents’ interviews, prepare written questions to pose to particular respondents based on their proposal, attend carrier finalist interviews, develop score sheets with guidelines to evaluate the carriers, and schedule reference calls.

Task 10. Provide technical support services in rate discussions with the carriers. The consultant is expected to participate in GIC staff strategy sessions for rate discussions, accompany staff to these meetings, and provide actuarial assistance to staff.

Task 11. Assist with drafting the report to the Commission on the procurement process and vendor recommendation.

Task 12. Attend Commission meeting at which GIC staff will present its recommendation for a life insurance carrier.

Task 13. Attend implementation meetings with GIC staff and the selected life insurance carrier.

Task 14. Assist with the preparation of a complete procurement file.

Task 15. Provide up to ten hours each year of consulting services for years two through five of the contract.

The selected consultant will be expected to assist GIC staff in evaluating the program during annual performance reviews, including financial evaluations, as well as provide technical and operational assistance, as deemed necessary by GIC staff.

Commissions/Brokers Fees/Other Payments from Selected Vendor Please be advised that bidders cannot accept ANY payments from a selected vendor or anyone associated with the life insurance vendor -- either directly or indirectly -- that relate in any way to this engagement (e.g., commissions, brokers fees, carrier overrides, contingency payments, special producer payments, extra-contractual payments, services in-lieu-of payments, inclusion of GIC business in any bonus/volume calculations, etc.). In addition, bidders must notify the GIC immediately if approached by a potential vendor regarding payments to the consultant for information or work associated with securing business from the Group Insurance Commission. This prohibition must be expressly agreed to in the cost proposal submitted by the consultant.

FINANCIAL PROPOSAL

Nature of the Contract This is a fixed price contract. The maximum allowable obligation is $85,000, including travel and all other expenses. However, vendors may propose a fixed price that is below the maximum allowable obligation.

Cost Reports Please complete the following cost reports for each task identified in Section II of this RFR.

Please provide an additional sheet if there are costs outside of the specific tasks that you expect to incur and a final summary sheet aggregating all of the costs into the final fixed price. All costs must be included on these sheets in order to be reimbursed.

Cost Reports Format

Total Cost for each task

Total Hours

Billing Rate

Total Staff Cost

Other Costs*

Total Staff and Other Costs

*Specify other costs expected to be incurred (e.g., supplies, travel, equipment, etc.).

On-Going Consultation

During the course of the life insurance contract, anticipated to be in place from July 2015 through June 2020, the consultant will be expected to advise the GIC on an ongoing basis concerning issues such as, but not limited to, potential changes in the life insurance administrative issues and the negotiation of life insurance contract renewals and amendments.

RESPONDENT REFERENCES

Bidders must have experience working with a large employer on life insurance procurement, analysis, and implementation.

Bidders selected as finalists will be subject to reference checks and an interview. The GIC reserves the right to contact some or all of the references supplied.

Firm References All respondents must provide a list of three (3) clients for which it has completed engagements similar in nature to that anticipated by this RFR. For each reference, the respondent should provide the formal name of the client, the client’s address, the name of a contact person, and his/her telephone number. The respondent should briefly describe the nature of the prior engagement and the dates of that engagement. If you have had large, public sector clients, they should be among your references.

Project Manager References Please provide two references for the proposed Project Manager. The references should be previous clients, preferably large, public sector entities, where the individual served as Project Manager for an engagement similar in size and scope to that anticipated by this RFR. Please include telephone numbers. If the project manager has been engaged by the GIC within the last five years, the GIC will serve as one of the project manager’s references.

Lead Technical Consultant References Please provide two references for the Lead Technical Consultant’s work, preferably with large, public sector entities, where the individual served as the Lead Technical Consultant for an engagement similar in scope and complexity to this RFR. Please include telephone numbers. If the consultant has been engaged by the GIC within the last five years, the GIC will serve as one of the consultant’s references.

Identification of Consulting Team Please identify each member of the firm who is expected to work on this engagement and his/her geographic location. Briefly describe each person’s tasks and responsibilities for this engagement and submit a professional resume for each individual. Bidders should identify whether each participant is an employee or a subcontractor.

Please remember that NO COST INFORMATION IS TO BE INCLUDED ANYWHERE IN THE TECHNICAL PROPOSAL document.

BID SPECIFICATIONS, SCHEDULES and SUBMISSION PROCESS

Each respondent must submit a proposal containing the following specific sections and information:

Transmittal Letter and Certifications The Transmittal Letter should contain a very brief summary or executive overview of the respondent’s proposal and should be signed by an individual authorized to bind the firm contractually. The letter must also provide the name, title, address, and telephone and fax numbers of the respondent’s corporate contact. The GIC will assume this individual will be available to respond to requests for additional information, if necessary. The certifications and other forms are required and must be signed in blue ink and included in the respondent’s proposal.

Proposal Development This RFR requires that respondents submit a number of documents and essay questions. These documents must be submitted and these questions must be answered before a proposal will be considered complete. The GIC may choose not to evaluate an incomplete proposal. Depending on the nature of the omission, the evaluation team may decide to: a) continue with the evaluation of the proposal; b) suspend consideration of the proposal until the respondent supplies the omitted information; or c) terminate consideration of the proposal.

No cost information is to be included anywhere in the technical proposal. Each vendor must submit a separate cost proposal. Bidders will not be permitted to increase their proposed costs after submission except under agreement with the GIC.

Minimum Data Set It is possible that several weeks will elapse between the awarding of the contract by the GIC and the final processing of the contract by all appropriate state agencies. The GIC will make every effort to expedite this process. However, the selected consultant will not be able to bill for work during this period.

In order to mitigate the effect of this delay, the GIC requires the respondent to identify some of the data it may need from the GIC in order to begin work on the subsequent engagement. The respondent should be as clear as possible with respect to categories of data that will be needed. GIC staff will work during the interval to obtain all data requested by the respondent and to make it available once the contract is finalized.

Consultant Narrative Proposal Responses to this RFR should not exceed two pages per question. Please restate each question with the corresponding answer. Do not cross-reference language in a previously answered question. Please note the maximum response limit. All respondents must utilize an 11pt. font or greater; single-spacing is allowed; and no less than 1” margins must be used. Any submission exceeding the maximum page length or specifications will be scored only on the portion conforming to those limits and specifications. Bids should be responsive to the current programs as detailed in the GIC’s current benefit booklets entitled Benefits for Life, which outline the current life and accidental death or dismemberment benefits for enrollees. The booklets can be found online at http://www.mass.gov/anf/docs/gic/pdfs/life-insurance-booklet-employeesretirees7114.pdf, http://www.mass.gov/anf/docs/gic/pdfs/life-insurance-booklet-rmts7114.pdf.

For the essay questions, respondents should address each item thoroughly, yet concisely. Brevity, where appropriate, is appreciated. However, if a respondent fails to answer a question fully, there may be no further opportunity to supplement the answer. If a respondent fails to answer a question, the GIC will assume that the respondent’s answer would have received the lowest possible score. The scoring criteria used by the procurement team and the points available for each section will not be made public prior to the awarding of the contract.

1. The GIC maintains a Rate Stabilization Reserve (RSR) that is used to offset unusually large premium increases from year to year. What is your experience with RSR’s? If you are chosen as consultant, what would be your approach to managing the RSR to the maximum benefit of the GIC and plan participants?

2. Please indicate from your experience on similarly bid procurements for a life insurance carrier, what are any new products, standards, or approaches that have emerged and are offered since the last procurement in 2011.

3. Based on your analysis of the RFR data and your consultant expertise, please outline areas of concern/opportunity with the existing GIC life insurance program.

4. Identify why your firm is uniquely qualified to work with the GIC on the life insurance procurement. What differentiates your firm from the other consultant who may who may also be bidding on this RFR?

Respondent Qualifications Finalists will be required to participate in an interview at the GIC offices and to host on-site visits by GIC staff, if deemed necessary. The GIC reserves the right to contact some or all of the references supplied.

Proposal Evaluation Process GIC staff, for the purpose of recommending the bid that represents the highest value to the Commission, will review the proposals submitted pursuant to this RFR. The GIC Commissioners will select the winning vendor, by majority vote, after a review of the staff recommendation. The GIC reserves the right to reject any or all proposals or to accept any proposal or portion thereof, or to request additional information from any or all of the respondent firms, if deemed in the best interest of the Commonwealth.

Proposals will be evaluated in three major areas:

1. Respondent qualifications;

2. Assessment of essay question responses;

3. Cost proposal. The procurement team will evaluate the minimum qualifications, prior experience, organizational qualifications, and technical proposal independently from the cost proposal.

CONSULTANT PROCUREMENT and VENDOR PROCUREMENT SCHEDULES

Life Insurance Carrier Consultant Procurement (GICPND1503)

Request for Proposals

Proposal Review and Selection Process

Life Insurance Carrier Procurement (GICPND1503)

September 2015

Questions should be sent to:

John Schorum, Director Policy and Program Management Group Insurance Commission P.O. Box 8747 Boston, Massachusetts 02114-8747 or via email: john.schorum@state.ma.us

SUBMISSION CHECKLIST FOR THE ENGAGEMENT

A. GENERAL:

4 unbound signed originals, 3 bound copies, and 1 copy on cd/dvd of Technical and Cost Proposal Separate technical and cost proposals

Required Forms and Certifications

Narrative Proposal/Questionnaire

Attachments to the Technical Proposal

Minimum data set requirements

Costs are listed by task with the number of hours and hourly rate that each team member will spend on the specific task.

Proposal Submission Process Four (4) unbound originals and three (3) copies of the proposal must reach the offices of the Group Insurance Commission no later than April 24, 2015 at 12:00 p.m. Attachments, exhibits, and/or appendices should be bound and labeled separately. Proposals should be addressed to:

Providing Consulting Services to Assist in the Selection of a Life Insurance Carrier |

CONSULTANT TASKS AND RESPONSIBILITIES

BY MAIL:

John Schorum, Director Policy and Program Management Group Insurance Commission Charles F. Hurley Building 19 Staniford Street, 4th floor Boston, MA 02114

Please note: If sending this response by courier, please be advised that the courier must deliver it to the GIC’s office on the fourth floor by the stated date and time, and to no other location. Procurements left in any location other than the GIC’s office, including the ground floor lobby front desk or the Hurley Building loading dock or mailroom, cannot be guaranteed of on-time delivery.