2012 FSN Health Insurance Solicitation.doc

August 2, 2012

Dear Prospective Offeror:

SUBJECT: Solicitation Number SCH50012R2003 for LES Health/Life Insurance Services

The Embassy of the United States of America invites you to submit a proposal for customized Health and Life insurance for the US Embassy Beijing and its constituent consulates including Shanghai, Guangzhou, Shenyang, Chengdu and Wuhan.

The Embassy intends to conduct a pre-proposal conference, and all prospective offerors who have received a solicitation package are invited to attend. See Section L of the attached Request for Proposals (RFP).

Your proposal must be submitted in a sealed envelope marked "Proposal Enclosed" to Benedict Robinette, at the US Embassy Beijing, No. 55 An Jia Lou Road on or before 3:00pm on October 9, 2012. No proposal will be accepted after this time. No electronic proposals shall be accepted.

In order for a proposal to be considered, you must also complete and submit the following:

1.

SF-33

2.

Section B, Pricing Schedule

3.

Section B, Retention Amounts in B.3 and B.7

3.

Section K, Representations and Certifications;

4.

Additional information as required in Section L.

Direct any questions regarding this solicitation to Ms. Shi Baoling, Procurement Supervisor by letter or by telephone 8531-3279 during regular business hours.

Please note: proposals that contain more benefits (even if there is no increase in cost) or fewer benefits than those stated in the solicitation may be deemed technically unacceptable.

The U.S. Government intends to award a contract to the responsible company submitting an acceptable offer at the lowest price. We intend to award a contract based on initial proposals, without holding discussions, although we may hold discussions with companies in the competitive range if there is a need to do so.

Sincerely, Benedict Robinette Contracting Officer

SECTION A – SF33 Solicitation/Contract Form

SECTION B

PART I PRICE - HEALTH INSURANCE

B.1.

HEALTH INSURANCE SERVICES

The Contractor shall provide the Health Insurance services to employees of the Government of the United States of America in the People’s Republic of China as described in Section C and the Exhibits in Section J. The groups of employees who shall be provided this insurance are listed in C.1.3 (medical) and C.2.3 (life). This insurance shall be provided in accordance with Section C and the Exhibits in Section J.

B.1.1.

Official Residence Expense (ORE) Staff is included under this contract only as a rider; the Contractor shall bill the Chief of Mission and Deputy Chief of Mission (for ORE Staff) at the rates specified below. See Section G for billing procedures.

B.2.

PRICES

This is a fixed price with economic price adjustment requirements type contract under which will be issued firm, fixed-price task orders. The fixed prices/premium rates for the health insurance services as specified in Section C are as follows:

B.2.1.

BASE YEAR OF CONTRACT:

Bi-Weekly Rates Per Employee:

Family Plan

1,197

SUBTOTAL

Total Price for Base Year (Subtotal x 26): _______

B.2.2.

FIRST OPTION YEAR OF THE CONTRACT:

Family Plan

1,197

SUBTOTAL

Total Price for Option Year 1 (Subtotal x 26): _______

B.2.3.

SECOND OPTION YEAR OF THE CONTRACT:

Family Plan

1,197

SUBTOTAL

Total Price for Option Year 2 (Subtotal x 26): _______

B.2.4.

THIRD OPTION YEAR OF THE CONTRACT:

Family Plan

1,197

SUBTOTAL

Total Price for Option Year 3 (Subtotal x 26): _______

B.2.5.

FOURTH OPTION YEAR OF THE CONTRACT:

Family Plan

1,197

SUBTOTAL

Total Price for Option Year 4 (Subtotal x 26): _______________

GRAND TOTAL BASE PERIOD PLUS OPTION YEARS: __________________

B.3

ADMINISTRATIVE RETENTION AMOUNTS

B.3.1 If the Contractor requests a price adjustment under B.4 below, the Contractor must present cost experience data that includes the retention amount. For purposes of any economic price adjustment, this retention amount is a fixed amount that is a part of the premium amounts in B.2. This retention amount will not be adjusted for any reason.

The retention amount is part of the premium and may include, but not be limited to, such costs as overhead and general and administrative costs. It will also include any profit. Essentially, it includes all costs except the actual portion of the premium intended to fund claims paid to the health care provider/claimant. B.3.2 sets forth the retention amounts per premium paid for each category of premium and for each period of performance.

NOTE TO OFFEROR - Fill in the fixed retention amounts for each period of performance and for each category of premium. This fixed amount must be expressed in the currency in which the premium amount is proposed. The fixed retention amount shall NOT be expressed in terms of a percentage of the premium.

B.3.2.1 Retention Amounts per separate premium paid per single employee and per family plan.

Base Period

Option Year 1

Option Year 2

Option Year 3

Option Year 4

B.4.

ECONOMIC PRICE ADJUSTMENT-HEALTH INSURANCE PREMIUMS

B.4.1.

Premium Adjustment based on Experience - For health insurance, prices may be adjusted upward or downward based on the experience rating of the Mission(s) covered by this contract. No adjustment will be allowed during the first twelve months. After such time, the contractor or the Government may request an adjustment in premiums on an annual basis. Before any such adjustment is made, the contractor agrees to provide the Government a balance sheet showing two main components for the time period: (1) receipts (premiums received) minus the retention amount and (2) claims paid. The retention amount is not subject to adjustment. The Government reserves the right to have an independent third party review the balance sheet and make recommendations regarding the appropriateness of the requested adjustment. Any adjustment shall be subject to mutual agreement of the parties and shall result in a written modification to the contract. Any failure to reach agreement under this clause shall be subject to the procedures in the Disputes clause.

B.4.2.

Premium Adjustment Based on Laws - The rates may also be adjusted during the performance period of the contract as a result of laws enacted by the host Government, if such change in the laws has a direct impact on the cost to the contractor to perform this contract at the contracted rate. In that event, the Contracting Officer may enter into negotiations with the Contractor to modify the contract to adjust the premium rate. The contractor agrees to provide all documentation necessary to support any requested adjustment.

B.4.2.1 Employee Pool – This clause is only in effect if the contractor included details in its offer regarding a pooling arrangement, of which this contract is a part.

Before any adjustment is made under this price adjustment clause, the Contractor must include in its proposal for adjustment, details setting forth how the pool impacts the request for equitable adjustment.

PART II PRICE - GROUP LIFE INSURANCE

ALTERNATE A

B.5.

GROUP LIFE INSURANCE SERVICES

The Contractor shall provide the Group Life Insurance services described herein to employees of the Government of the United States of America in the People’s Republic of China. The groups of employees who shall be provided this insurance are listed in C.2.3. This insurance shall be provided in accordance with Section C and the Exhibits in Section J.

B.5.1.

Official Residence Expense (ORE) Staff is included under this contract only as a rider; the Contractor shall bill the Chief of Mission and Deputy Chief of Mission (for ORE Staff) separately, at the rates specified below. See Section G for billing procedures.

B.6.

GROUP LIFE INSURANCE RATES

This is a fixed-price with economic-price-adjustment-requirements type contract under which the Government will issue firm-fixed price task orders. The fixed prices/premium rates are in Chinese Renminbi (RMB) per one thousand of salary to provide life insurance, accidental death and dismemberment and partial and total disability coverage are as follows:

B.6.1.

BASE YEAR OF CONTRACT

Bi-Weekly Rates per Employee:

Basic Life

3,363.67

Accidental Death and Dismemberment

3,363.67

Partial and Total Disability Coverage

3,363.67

Total Price for Base Year: __________x 26 = _____________

B.6.2.

FIRST OPTION YEAR OF CONTRACT:

Basic Life

3,363.67

Accidental Death and Dismemberment

3,363.67

Partial and Total Disability Coverage

3,363.67

Total Price for Option Year 1: __________x 26 = _____________

B.6.3.

SECOND OPTION YEAR OF CONTRACT:

Basic Life

3,363.67

Accidental Death and Dismemberment

3,363.67

Partial and Total Disability Coverage

3,363.67

Total Price for Option Year 2: __________x 26 = _____________

B.6.4.

THIRD OPTION YEAR OF CONTRACT:

Basic Life

3,363.67

Accidental Death and Dismemberment

3,363.67

Partial and Total Disability Coverage

3,363.67

Total Price for Option Year 3: __________x 26 = _____________

B.6.5.

FOURTH OPTION YEAR OF CONTRACT:

Basic Life

3,363.67

Accidental Death and Dismemberment

3,363.67

Partial and Total Disability Coverage

3,363.67

Total Price for Option Year 4: __________x 26 = _____________

GRAND TOTAL PRICE FOR ALL YEARS: __________________

B.7

ADMINISTRATIVE RETENTION AMOUNTS

B.7.1 If the Contractor requests a price adjustment under B.8 below, the Contractor must present cost experience data that includes the retention amount. For purposes of any economic price adjustment, this retention amount is a fixed amount that is a part of the premium amounts in B.6. This retention amount will not be adjusted for any reason.

The retention amount is part of the premium and may include, but not be limited to, such costs as overhead and general and administrative costs. It will also include any profit. Essentially, it includes all costs except the actual portion of the premium intended to fund claims paid to the claimant.

B.7.2 sets forth the retention amounts per premium paid for each category of premium and for each period of performance.

NOTE TO OFFEROR - Fill in the fixed retention amounts for each period of performance and for each category of premium. This fixed amount must be expressed in the currency in which the premium amount is proposed. The fixed retention amount shall NOT be expressed in terms of a percentage of the premium.

B.7.2 Retention Amounts per separate premium paid per employee

Base Period

Option Year 1

Option Year 2

Option Year 3

Option Year 4

B.8

ECONOMIC PRICE ADJUSTMENT-LIFE INSURANCE PREMIUMS

B.8.1.

Premium Adjustment Based on Experience - For life insurance, prices may be adjusted upward or downward based on the experience rating of the Mission(s) covered by this contract. No adjustment will be allowed during the first twelve months. After such time, the contractor or the Government may request an adjustment in premiums on an annual basis. Before any such adjustment is made, the contractor agrees to provide the Government a balance sheet showing two main components for the time period: (1) receipts (premiums received) minus the retention amount and (2) claims paid. The retention amount is not subject to adjustment. The Government reserves the right to select an independent third party to review the balance sheet and make recommendations regarding the appropriateness of the requested adjustment. Any adjustment shall be subject to mutual agreement of the parties and shall result in a written modification to the contract. Any failure to reach agreement under this clause shall be subject to the procedures in the Disputes clause.

B.8.2.

Premium Adjustment Based on Law - The rates may also be adjusted during the performance period of the contract as a result of laws enacted by the host Government, if such change in the laws has a direct impact on the cost to the contractor to perform this contract at the rate contracted for herein. In that event, the Contracting Officer may enter into negotiations with the Contractor to modify the contract to adjust the premium rate. The contractor agrees to provide all documentation necessary to support any requested adjustment.

SECTION C

DESCRIPTION/SPECIFICATION/WORK STATEMENT

PART I - HEALTH INSURANCE

C.1.

HEALTH INSURANCE SERVICES

The Government of the United States of America requires health insurance coverage for its employees as further described in C.1.1 in the People’s Republic of China. The Government has determined that the prevailing practice by employers in the People’s Republic of China is to provide for their employees’ health insurance protection and that the cost of such insurance protection is usually borne by both the employee and the employer. For active employees who are regularly scheduled to work 30 or more hours per week: the USG will pay 85% of the premium cost for employee and dependent coverage and the employee will pay 15% of the premium. For active employees who are regularly scheduled to work less than 30 hours per week: the USG will pay a prorated share of the premium cost for employee coverage, based on the number of hours the employee is regularly scheduled to work. The employee will pay 100% of the premium cost for each dependent. Health insurance protection will be representative of locally prevailing compensation practice as further described in C.1.1. The specific health benefit coverage under this contract is set forth in Section C and the Exhibits in Section J.

C.1.1 Employee and Dependent Health Services Benefits

Employees enrolled in the Embassy Health Benefits Plan and their dependents are entitled to receive reimbursement from the Contractor for a broad range of outpatient and inpatient medical care. The medical coverage purchased under this contract is a medical benefit supplemental to coverage provided by the local social security plan. The health benefits under this contract are as follows. Reimbursement of covered expenses is limited to the stated percentages of reasonable and customary costs. Proposals that contain more benefits (even if there is no increase in cost) or fewer benefits than stated in the solicitation may be deemed technically unacceptable.

Reimbursements or payments shall be made for the following covered benefits, subject to reasonable and customary costs in the locality where treatment was provided.

Dependent

Employee

C.1.1.1.

Hospitalization

100%

C.1.1.2.

Surgery (inpatient)

Surgery (Outpatient)

90%

C.1.1.3.

Non-surgical Doctor Visits (inpatient)

Non-surgical Doctor Visits (outpatient)

C.1.1.4.

Prescription Drugs (inpatient)

Prescription Drugs (outpatient) including those that suppress opportunistic infections, such as tuberculosis and toxoplasmosis.

C.1.1.5.

Maternity including provisions for brief courses of anti-retroviral drugs during childbirth to prevent the transmission of HIV to the employee’s child. Duration of treatment is to be determined by the employee’s personal physician, following WHO and CDC guidelines.

C.1.1.6.

Hospital Outpatient Services

C.1.1.7.

Optical Service

50%

Reimbursement for employee eye examinations and treatment, and prescription eyeglasses or contact lenses. With a 60 USD ceiling for two lenses per patient per year, and no reimbursement for frames, nonprescription lenses, or tinting.

C.1.1.8

Dental Service

Dental Care: Dentists’ fees, x-rays, examination and treatment, fillings, extractions, cleaning, fillings, false teeth, crowns and bridges. Orthodontia treatment covered only if treatment begins before age 15, unless required as the result of an accident. Maximum of 4 years of orthodontia treatment per patient.

Contractor paid 50% with a ceiling of 1000USD per year.

C.1.1.9.

Physical Therapy

30%

C.1.1.10.

Psychiatric Treatment

C.1.1.11.

Ambulance Service not covered not covered

C.1.1.12.

Hearing Aids none none

C.1.1.13.

Expenses Incurred Out-of-Country not covered not covered C.1.1.14.

Other Benefits

Inoculations

Immunizations

(Children only)

Medications to suppress opportunistic infections 0%

For active employee only: Medications to suppress opportunistic infections, such as tuberculosis and toxoplasmosis for employees who have HIV/AIDS; as well as brief courses of anti-retroviral drugs at those posts with inadequate local healthcare infrastructures. This expanded coverage does not apply to dependents. The insurance company will reimburse covered expenses up to a separate limit of USD 10,000 per employee per contract year.

C.1.2 Health Benefits Conditions and Limitations.

C.1.2.1 There is no reimbursement for elective cosmetic surgery; spa cures; rejuvenation cures; massage; exercise therapy; long term rehabilitative therapy; eyeglass frames; non-medical hospital charges such as telephones or television; home help, family help, or similar household assistance; fees of persons who are not licensed physicians or nurses; or services or supplies which have not been prescribed or approved by a physician or nurse.

C.1.2.2 There is no reimbursement for expenses that will be reimbursed or paid directly under a host country medical program or workers' compensation program; the U.S. workers’ compensation program; or any China’s LE Staff workers’ compensation program.

C.1.2.3 There is no reimbursement for expenses related to an illness or injury that is a result of an unlawful action on the part of the patient; the practice of a dangerous sport; excessive or illegal use of alcohol or drugs; a self-inflicted wound; or service in the armed forces of any country.

C.1.2.4 There is no reimbursement for expenses incurred after an employee leaves the service of the U.S. mission.

C.1.2.5 Employees can receive reimbursement for all forms of medical treatment, except where explicitly excluded, at the rates listed above with no limitation on the number of claims or hospital visits made. For employees regularly scheduled to work 30 hours or more per week, the maximum annual reimbursement for both the employee and his or her dependent is RMB 80,000 per year per person.

C.1.3 Eligible Participants

C.1.3.1 Eligible Employees - The employees eligible for the health insurance services include the following:

C.1.3.1.1 All current active employees of the United States Government, employed within the geographic boundaries of the People’s Republic of China paid under the Local Compensation Plan, and certified by the Contracting Officer. Covered employees include

C.1.3.1.2. Foreign Service Nationals (FSNs) employed under direct hire appointments, Personal Services Agreements (PSAs) and Personal Services Contracts (PSCs);

C.1.3.1.3. Locally hired U.S. citizens employed under direct hire appointments, PSAs, and PSCs.

C.1.3.1.4. Eligible employees are Locally Employed Staff who are (1) working on a full time or part time basis under non-temporary direct hire appointments, personal services agreements, or personal services contracts and (2) paid under the terms of the Local Compensation Plan.

C.1.3.2 Location of Employment

The individuals covered by C.1.3.1 must be employed within the geographic boundaries of the People’s Republic of China by:

Department of Commerce, Foreign Commercial Service (FCS)

Department of Defense (DOD)

Department of Energy, National Nuclear Security Administration (DOE/NNSA)

Department of Health and Human Services, Centers for Disease Control and Prevention (CDC)

Department of Health and Human Services, Federal Drug Administration (FDA)

Department of Health and Human Services, National Institutes of Health (NIH)

Department of Health and Human Services, Office of Global Health Affairs (OGHA)

Department of Homeland Security, Immigration and Customs Enforcement (ICE)

Department of Homeland Security, U.S. Coast Guard (Coast Guard)

Department of Homeland Security, U.S. Citizenship and Immigration Services (CIS)

Department of Homeland Security, U.S. Customs and Border Protection (CBP)

Department of Justice, Drug Enforcement Agency (DEA)

Department of Justice, Federal Bureau of Investigation (FBI) Department of State (DOS) Department of Transportation, Federal Aviation Administration (FAA)

Department of Transportation, Transportation Security Administration (TSA)

Department of the Treasury (Treasury)

Department of the Treasury, Internal Revenue Services (IRS)

National Science Foundation (NSF)

United States Department of Agriculture, Agricultural Trade Office (ATO) United States Department of Agriculture, Animal & Plants Health Inspection Service (APHIS)

United States Department of Agriculture, Foreign Agricultural Services (FAS) United States Trade Representative (USTR)

Voice of America (VOA)

United States Patent and Trade Office (USPTO)

Overseas Buildings Operations (OBO)

Consumer Product Safety Commission (CPSC)

United States Agency for International Development (USAID)

C.1.3.3 Participants Covered Under a Rider

C.1.3.3.1 All current active employees of the Chief of Mission, the Deputy Chief of Mission, and Consul Generals assigned to their respective official Government residences and paid under an Official Residence Expenses (ORE) account (see separate rider, Exhibit B). All costs for ORE employees are the responsibility of the employing officer, not the U.S. Government.

C.1.4 Individuals Not Eligible for Coverage

Individuals not eligible for coverage under this contract are non-personal services contract personnel; employees working on a temporary basis; employees with an intermittent, seasonal, or WAE (when actually employed) schedule; and any other individual not falling within one of the categories of employees described in this clause.

Not eligible are those working under temporary appointments; those working under a PSC or PSA that is time limited to less than one year; nonpersonal services contract personnel and their employees, supplied by an independent contractor licensed to do business in China who provides services to other local organizations as well as to the U.S. Mission; employees of USAID institutional contractors; Peace Corps personal services contractors as indicated in MS 743; and Recreation Association employees.

C.1.5 Other Eligible Participants

Covered dependents include the participating employee’s spouse and children. A limit of one spouse per employee is covered. An eligible child is defined as the employee’s natural child, adopted child, stepchild, or foster child. The child must be unmarried, economically dependent upon the employee, and reside with the employee unless away at school. An eligible child will be covered until the end of the contract year in which he/she reaches age 18, or age 24 if a full time student. There is no age limit for a child who is physically or mentally handicapped so as to be unable to live independently. There is no limit on the number of children covered per employee.

C.1.6.

Eligibility

C.1.6.1. Term of Eligibility and Effective Date

Each current active eligible employee is enrolled for health benefits under this contract upon award and thereafter during the performance period of this contract. Each new eligible employee will be enrolled upon entering on duty with the United States Government. An employee is considered active ("on the rolls") whenever such employee is on approved leave, whether paid or unpaid.

During a period of Leave Without Pay (LWOP) or unpaid leave that is one pay period or less, coverage under the insurance contract will continue. The USG will pay the total premium cost to the contractor. The employee’s share of the premium will be collected through payroll deduction in that or the subsequent pay period.

C.1.6.2. Period of Ineligibility

Employees and their dependents are not entitled to health benefits during any period of employment for which premiums are not paid.

Additionally, employee's dependents are not entitled to health benefits during any period of employment during which the employee was not eligible to participate.

During a period of extended (beyond one pay period) of LWOP or unpaid leave, the employee is responsible for the full cost of the insurance premiums for self and dependents. The Mission will pay the premiums directly to the contractor, and will collect the full cost from the employee on a quarterly basis. Alternatively, the employee may elect to have coverage cease if that employee prefers not to pay the premium.

C.1.6.3

At the time of a covered employee’s death, his/her eligible dependents covered under the Mission China’s health insurance plan and as designated in the official personnel file, are eligible to temporarily continue receiving the same level of medical coverage for up to 180 days. This continued coverage is limited to 180 days only, is subject to availability of the funds at post, and no extensions are possible.

C.1.7.

Brochure Requirement

C.1.7.1. The contractor shall provide a document (brochure/pamphlet/other written document) in English and Chinese that sets forth a complete listing of the health insurance benefits to be provided under this contract. This brochure shall be provided in sufficient quantities so that each covered employee receives a copy. The contractor shall furnish all copies of the brochures to the COR, who will ensure that appropriate distribution is made.

C.1.7.2. The contractor shall provide the document described in C.1.7.1 to the COR not later than 30 calendar days after date of contract award. The Contractor shall provide additional brochures for new employees within ten (10) days of the COR’s request.

C.1.7.3. The contractor assumes full responsibility for ensuring that the document described in C.1.7.1 accurately reflects the requirements of the contract, as implemented by the contractor’s technical proposal. In all cases, the contract shall take precedence. Should the COR discover that the brochure contains inaccuracies, the contractor will be notified in writing; however, failure on the part of the Government to notice any inaccuracies shall in no way limit, revise or otherwise affect the requirement under this contract for the contractor to fully comply with all contract terms.

PART II GROUP LIFE INSURANCE

C.2.0

GROUP LIFE INSURANCE

The Government of the United States of America requires group life insurance coverage for its employees, as further described in C.2.2, in the People’s Republic of China. The Government has determined that the prevailing practice by employers in the People’s Republic of China is that group life insurance coverage is representative of locally prevailing compensation practice and that the cost of such insurance protection is usually borne by the employer. Therefore, the Government desires to adopt such locally prevailing practice as part of its compensation plan for its employees as further described in C.2.2. The specific group insurance coverage under this contract is set forth in this part of Section C and the Attachments in Section J.

C.2.1.

Group Life Insurance Coverage.

The amount of group life insurance coverage is as follows:

C.2.1.1 Amount of Natural Death Insurance:

The employee’s estate will receive an amount equal to 20 times of basic salary in the event the employee dies of natural causes.

C.2.1.2 Amount of Accidental Death and Dismemberment Coverage.

The employee's estate or employee will receive an amount equal to 24 times the amount of monthly basic salary, in addition to the life insurance benefit in C.2.1.1, in the event the employee is killed in an accident.

C.2.1.3 Partial and Total Disability Coverage

N/A

C.2.2 Life Insurance Benefits Conditions and Limitations.

In the following conditions, there will be no entitlement to life insurance benefits under this contract:

C.2.2.1 Self-inflicted injury or self-destruction while sane or insane

C.2.2.2 Disease, bodily or mental infirmity, or medical or surgical treatment thereof

C.2.2.3 Insurrection, participating in a riot, police duty as a member of any military, naval or air organization, war or any act of war declared or undeclared

C.2.2.4 Engaging in or participating in aeronautic operations or activities except as a fare-paying passenger over established air routes in fully licensed standard type aircraft owned and/or operated by recognized airlines

C.2.2.5 Assault or murder

C.2.2.6 Vehicle racing

C.2.2.7 Participating in or committing crime

C.2.2.8 Pregnancy or child bearing

C.2.2.9 The insured person being under the influence of intoxicants or narcotics

C.2.3.

Eligible Participants.

C.2.3.1 Eligible Employees. The employees eligible for the group life insurance coverage include the following:

C.2.3.1.1 All current active employees of the United States Government, employed within the geographic boundaries of the People’s Republic of China, paid under the Local Compensation Plan, and certified by the Contracting Officer. Covered employees include:

C.2.3.1.2. Foreign Service Nationals (FSNs) employed under direct hire appointments, Personal Services Agreements (PSAs) and Personal Services Contracts (PSCs);

C.2.3.1.3. Locally hired U.S. citizens employed under direct hire appointments, PSAs, and PSCs.

C.2.3.1.4. Eligible employees are Locally Employed Staff who are (1) working on a full time or part time basis under non-temporary direct hire appointments, personal services agreements, or personal services contracts and (2) paid under the terms of the Local Compensation Plan.

C.2.3.2 Location of Employment

The individuals covered by C.2.3.1 must be employed within the geographic boundaries of the People’s Republic of China by: the following U.S. Government agencies operating under the authority of the Chief of Mission:

Department of Commerce, Foreign Commercial Service (FCS)

Department of Defense (DOD)

Department of Energy, National Nuclear Security Administration (DOE/NNSA)

Department of Health and Human Services, Centers for Disease Control and Prevention (CDC)

Department of Health and Human Services, Federal Drug Administration (FDA)

Department of Health and Human Services, National Institutes of Health (NIH)

Department of Health and Human Services, Office of Global Health Affairs (OGHA)

Department of Homeland Security, Immigration and Customs Enforcement (ICE)

Department of Homeland Security, U.S. Coast Guard (Coast Guard)

Department of Homeland Security, U.S. Citizenship and Immigration Services (CIS)

Department of Homeland Security, U.S. Customs and Border Protection (CBP)

Department of Justice, Drug Enforcement Agency (DEA)

Department of Justice, Federal Bureau of Investigation (FBI)

Department of State (DOS)

Department of Transportation, Federal Aviation Administration (FAA)

Department of Transportation, Transportation Security Administration (TSA)

Department of the Treasury (Treasury)

Department of the Treasury, Internal Revenue Services (IRS)

National Science Foundation (NSF)

United States Department of Agriculture, Agricultural Trade Office (ATO) United States Department of Agriculture, Animal & Plants Health Inspection Service (APHIS)

United States Department of Agriculture, Foreign Agricultural Services (FAS) United States Trade Representative (USTR)

Voice of America (VOA)

United States Patent and Trade Office (USPTO)

Overseas Buildings Operations (OBO)

Consumer Product Safety Commission (CPSC)

United States Agency for International Development (USAID) C.2.3.3 Participants Covered Under a Rider

C.2.3.3.1 All current active employees of the Chief of Mission, the Deputy Chief of Mission, and Consul Generals assigned to their respective official Government residences and paid under an ORE account (see separate rider, Exhibit B). All costs for ORE employees are the responsibility of the employing officer, not the U.S. Government.

C.2.4 Individuals Not Eligible for Coverage

C.2.4.1 Individuals not eligible for coverage under this contract are nonpersonal services contract personnel; employees working on a temporary basis; employees with an intermittent, seasonal, or WAE (when actually employed) schedule; and any other individual not falling within one of the categories of employees described in this clause.

Not eligible are those working under temporary appointments; those working under a PSC or PSA that is time limited to less than one year; nonpersonal services contract personnel and their employees, supplied by an independent contractor licensed to do business in China who provides services to other local organizations as well as to the U.S. Mission; employees of USAID institutional contractors; Peace Corps personal services contractors as indicated in MS 743; and Recreation Association employees.

C.2.5 Other Eligible Participants N/A C.2.6 Eligibility and Effective Date

C.2.6.1. Term of Eligibility and Effective Date

Each current active eligible employee is enrolled for life insurance benefits under this contract upon award and thereafter during the performance period of this contract. Each new eligible employee will be enrolled upon entering on duty with the United States Government. An employee is considered active ("on the rolls") whenever such employee is on approved leave, whether paid or unpaid.

During a period of LWOP or unpaid leave that is one pay period or less, coverage under the insurance contract will continue. The USG will pay the total premium cost to the contractor.

C.2.6.2. Period of Ineligibility

Employees are not entitled to life insurance hereunder during any period of employment for which premiums are not paid.

During a period of extended (beyond one pay period) of LWOP or unpaid leave, the employee is responsible for the full cost of the insurance premiums. The Mission will pay the premiums directly to the contractor, and will collect the full cost from the employee on a quarterly basis. Alternatively, the employee may elect to have coverage cease if that employee prefers not to pay the premium.

C.2.7.

Brochure Requirement

C.2.7.1. The contractor shall provide a document (brochure/pamphlet/other written document) in English and Chinese that sets forth a complete listing of the life insurance benefits to be provided under this contract. This brochure shall be provided in sufficient quantities so that each covered employee receives a copy. The contractor shall furnish all copies of the brochures to the COR, who will ensure that appropriate distribution is made.

C.2.7.2. The document described in C.2.7.1 shall be provided to the COR not later than 30 calendar days after date of contract award. The contractor shall provide additional brochures for new employees within ten days of the COR’s request.

C.2.7.3. The contractor assumes full responsibility for ensuring that the document described in C.2.7.1 accurately reflects the requirements of the contract, as implemented by the contractor’s technical proposal. In all cases, the contract shall take precedence. Should the COR discover that the brochure contains inaccuracies, the contractor will be notified in writing; however, failure on the part of the Government to notice any inaccuracies shall in no way limit, revise or otherwise affect the requirement under this contract for the contractor to fully comply with all contract terms.

C.3.0

DEFINITIONS

FMO

The Financial Management Officer or the paying office for all U.S. Government

Agencies except AID.

COR

Contracting Officer's Representative (Human Resources Officer at post).

Contributory Insurance for which the employee contributes toward the premium.

Dependent An employee’s legal spouse (limit one) and each unmarried, economically dependent child who primarily resides with the employee unless away at school. Child is defined as the employee’s natural child, adopted child, stepchild, or foster child. An eligible child will be covered until the end of the calendar year in which the child turns age 18, or in the case of a child who is a full-time student until the end of the calendar year in which the child turns age 24. There is no age limit for an eligible child who is physically or mentally handicapped so as to be unable to live independently. There is no limit on the number of children covered per employee. Parents, grandparents, siblings, and other relatives are not eligible dependents.

Employee An individual employed by the U.S. Government, under a direct-hire appointment, personal services contract, or personal services agreement, as further defined in Section C.1.3 for health insurance and C.2.3 for life insurance. This may also include ORE Staff, if this category of individual is listed as participating under a rider in C.1.3.3 for health insurance and C.2.3.3 or life insurance.

Employer The United States Government or in the case of ORE employees, the Chief of Mission, Deputy Chief of Mission, or Consul Generals.

GSO

General Services Officer in charge of the General Services Office at post. This officer is usually the Contracting Officer for this contract.

Hospital An institution established and operated for the care and treatment of sick and injured persons. It provides 24-hour nursing care and has diagnostic, laboratory, treatment, and surgical facilities. Any institution which does not meet this definition is not considered a hospital.

Hospital Patient An individual who has been admitted to a hospital, is assigned a bed, and is given diagnostic tests or receives treatment for a disease or an injury.

Maximum Benefit The total amount that will be paid to any one covered individual for covered medical expenses or life insurance/disability benefit.

Customary and Reasonable Treatment A diagnostic test or medical treatment which is usually performed in the community where the individual is being treated.

Physician An individual who has graduated from an accredited medical school and is licensed to practice medicine in the jurisdiction in which the contract is to be performed. If the individual is a medical specialist, then he or she is Board

Certified in that specialty.

Surgical procedure Any invasive medical procedure by manual or instrument operation undertaken for diagnosis or treatment of a diseased patient.

SECTION D

PACKAGING AND MARKING

(RESERVED)

SECTION E

INSPECTION AND ACCEPTANCE

E.1.

52.252‑2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates the following clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address:

http://acqusition.gov/far/index.html or, http://farsite.hill.af.mil/search.htm

These addresses are subject to change. If the Federal Acquisition Regulation (FAR) is not available at the locations indicated above, use the Dept. of State Acquisition Website at http://www.statebuy.state.gov to see the links to the FAR. You may also use a network “search engine” (e.g., Yahoo, Excite, Alta Vista, etc.) to obtain the latest location of the most current FAR.

FEDERAL ACQUISITION REGULATION (48 CFR CH. 1)

52.246-4 Inspection of Services - Fixed Price (AUG 1996)

E.2.

QUALITY ASSURANCE AND SURVEILLANCE PLAN (QASP)

This plan is designed to provide an effective surveillance method to promote effective contractor performance. The QASP provides a method for the Contracting Officer's Representative (COR) to monitor contractor performance, advise the contractor of unsatisfactory performance, and notify the Contracting Officer of continued unsatisfactory performance. The contractor, not the Government, is responsible for management and quality control to meet the terms of the contract. The role of the Government is to conduct quality assurance to ensure that contract standards are achieved.

Services.

Performs all the insurance services set forth in the performance work statement (PWS)

C.1.0 thru C.3.0

All required services are performed and no more than one (3) customer complaint is received per month

E.2.1 Surveillance. The COR will receive and document all complaints from Government personnel regarding the services provided. If appropriate, the COR will send the complaints to the Contractor for corrective action.

E.2.2 Standard. The performance standard is that the Government receives no more than one (1) customer complaint per month. The COR shall notify the Contracting Officer of the complaints so that the Contracting Officer may take appropriate action to enforce the inspection clause (FAR 52.246-4, Inspection of Services – Fixed Price (AUG 1996) or the appropriate Inspection of Services clause), if any of the services exceed the standard.

E.2.3 Procedures

(a) If any Government personnel observe unacceptable services, either incomplete work or required services not being performed, they should immediately contact the COR.

(b) The COR will complete appropriate documentation to record the complaint.

(c) If the COR determines the complaint is invalid, the COR will advise the complainant. The COR will retain the annotated copy of the written complaint for his/her files.

(d) If the COR determines the complaint is valid, the COR will inform the Contractor and give the Contractor additional time to correct the defect, if additional time is available. The COR shall determine how much time is reasonable.

(e) The COR shall, as a minimum, orally notify the Contractor of any valid complaints.

(f) If the Contractor disagrees with the complaint and challenges the validity of the complaint, the Contractor will notify the COR. The COR will review the matter to determine the validity of the complaint.

(g) The COR will consider complaints as resolved unless notified otherwise by the complaint.

(h) Repeat customer complaints are not permitted for any services. If a repeat customer complaint is received for the same deficiency during the service period, the COR will contact the Contracting Officer for appropriate action under the Inspection clause.

SECTION F

DELIVERIES OR PERFORMANCE

F.1.

This contract incorporates the following clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address:

These addresses are subject to change. If the Federal Acquisition Regulation (FAR) is not available at the locations indicated above, use the Dept. of State Acquisition Website at http://www.statebuy.state.gov to see the links to the FAR. You may also use a network “search engine” (e.g., Yahoo, Excite, Alta Vista, etc.) to obtain the latest location of the most current FAR.

52.242-15 Stop Work Order (AUG 1989)

52.242-17 Government Delay of Work (APR 1984)

F.2 PERIOD OF PERFORMANCE. The performance period of this contract is one year beginning on the start date in Notice to Proceed with four one-year options to renew.

F.3

OPTIONS

The Government may extend this contract in accordance with the option clause at Section I, clause I.2, FAR Clauses Incorporated by Full Text (FAR 52.217-9, Option to Extend the Term of the Contract), which also specifies the total potential duration of the contract.

The Government may exercise the option set forth at Section I, "FAR 52.217-8, Option to Extend Services".

F.4

REPORTS AND OTHER DELIVERABLES

All reports and other deliverables required under this contract shall be delivered to the following address:

U.S. Embassy Beijing

Office of Human Resources

No. 55, An Jia Lou Road

Beijing, 100600 PRC

SECTION G

CONTRACT ADMINISTRATION DATA

G.1.

652.242-70 CONTRACTING OFFICER’S REPRESENTATIVE (COR) (AUG 1999)

The Contracting Officer may designate in writing one Government employee, by name or position title, to take action for the Contracting Officer under this contract. This designee shall be identified as a Contracting Officer’s Representative (COR). Such designation shall specify the scope and limitations of the authority so delegated; provided, that the designee shall not change the terms or conditions of the contract, unless the COR is a warranted Contracting Officer and this authority is delegated in the designation.

The COR for this contract is the Human Resources Officer.

G.2

COR DUTIES

G.2.1 The COR is responsible for inspection and acceptance of services. These duties include review of Contractor invoices, including the supporting documentation required by the contract. The COR may provide technical advice, substantive guidance, inspections, invoice approval, and other purposes as deemed necessary under the contract.

G.2.2 In addition, the COR shall maintain updated list of employees and dependents insured, which will supersede the initial list provided under this contract and as reported to the insurer, without prejudice to the ineligibility clause.

G.2.3.

The COR has the additional responsibility of maintaining the eligible listing of employees and dependents for insurance coverage.

G.2.4 The COR may not change the terms and conditions of the contract. While the COR is authorized to provide the Contractor with updated listings of eligible employees and dependents, only the Contracting Officer may modify existing task orders or issue new task orders, reflecting these changes, since only the Contracting Officer can obligate funding and commit the Government.

G.3.

Payment shall be made in local currency Renminbi (RMB) or US Dollors.

G.4

SUBMISSION OF INVOICES AND PAYMENT

G.4.1.

Invoices for U.S. Government employees shall be submitted in an original and three (3) copies to the following address (designated billing office only for the purpose of submitting invoices):

Financial Management Office (DBO)

U.S. Embassy Beijing

No. 55, An Jia Lou Road

Beijing, 100600 PRC

G.4.2. Frequency of Payments. All funds under this contract will be obligated by issuance of task orders, as described in H.3. Each task order will fund a specific period of time and number of employees, and the task orders will be issued at the frequency described in H.3. Contractor may submit invoices semi-annually for payment to be made at the beginning of the month for which insurance coverage is provided in accordance with FAR 32.404.

G.4.3. U.S. Government Employees. The Government shall make payments directly to the contractor for all Government employees, whether or not the employee is contributing to the premium amount.

G.4.4 ORE Staff. The Chief of Mission and/or Deputy Chief of Mission will make payment directly to the contractor for the entire premium amount of the ORE staff, whether or not the ORE employee is contributing to the premium amount.

G.4.5. Reserved.

G.5

REFUNDS TO THE GOVERNMENT

If at any time during performance of the contract the Government finds that the contractor has been overpaid because the number of employees and/or dependents covered has decreased, the Contracting Officer may either allow that overpayment to be credited to the Government’s account or require that the contractor refund the overpayment. If the Contracting Officer requests a refund, the contractor shall make that refund to the Government within ten calendar days of receipt of the request.

G.6 The contractor shall show Value Added Tax (VAT) as a separate item on invoices submitted for payment.

SECTION H

SPECIAL CONTRACT REQUIREMENTS

H.1 SECURITY. On occasion, a Contractor employee may require entry into U.S. Government-owned or -operated facilities. If so, the Contractor should be prepared to provide the necessary identification to permit escorted access within that facility.

H.2 STANDARDS OF CONDUCT. The Contractor shall maintain satisfactory standards of employee competency, conduct, cleanliness, appearance, and integrity and shall be responsible for taking such disciplinary action with respect to employees as may be necessary. Each Contractor employee is to adhere to standards that reflect credit on themselves, their employer, and the United States Government.

H.3 ORDERING PROCEDURES. The Government will issue a task order as soon as possible after contract award to identify all employees to be covered by the insurance described in this contract and the coverage selected by each employee, including dependents to be covered. The COR will make subsequent additions or deletions to this list in writing and provide the revised list to the Contractor. All such revisions shall be consolidated, and a new or modified task order will be issued by the Contracting Officer. If any changes have been made to the coverage listing, the Government anticipates issuance of a new task order on a [ ] monthly, [x] quarterly basis. This new task order will include all changes made since the previous task order was issued and will include any increase or decrease in necessary funding. The changes to the list of eligible individuals will supersede the initial list provided under prior task orders without prejudice to the ineligibility clause. Task orders will indicate the effective date of employment, for purposes of calculating the premium due.

H.3.1. The ORE staff under separate riders are not included under the task orders issued by the Contracting Officer. Because their coverage is under a rider, their employer is responsible for directly interacting with the contractor to order any coverage for their employees. When contacted by the employer, the contractor shall advise the employer of the paperwork and payment that will be necessary to order coverage for the identified individuals. Because more than one employer may have ORE staff, the contractor may be contacted by more than one employer (typically the Chief of Mission and Deputy Chief of Mission).

H.4.

CONTRACTOR RESPONSIBILITY IN CLAIMS AND REIMBURSEMENT TO CLAIMANTS

General.

The…