RFP_SHO80016R0001_for_Locally_Employed_Staff_Life_and_Health_Insurance.pdf

SOLICITATION, OFFER AND AWARD 1. THIS CONTRACT IS A RATED ORDER RATING

UNDER DPAS (15 CFR 700)

PAGE OF PAGES

1 84

2. CONTRACT NUMBER 3. SOLICITATION NUMBER

SHO80016R0001

4. TYPE OF SOLICITATION

SEALED BID (IFB)

NEGOTIATED (RFP)

5. DATE ISSUED

10/11/2016

6. REQUISITION/PURCHASE NUMBER

PR5592689

7. ISSUED BY CODE

AMERICAN EMBASSY TEGUCIGALPA

GSO, ACQUISITIONS UNIT, ATTN: GSO

TEGUCIGALPA

HONDURAS

HO800 8. ADDRESS OFFER TO (If other than item 7)

AMERICAN EMBASSY TEGUCIGALPA

GSO, ACQUISITIONS UNIT, ATTN: GSO

TEGUCIGALPA

HONDURAS

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

SOLICITATION

9. Sealed off ers in original and 5 copies f or f urnishings the supplies or serv ices in the Schedule will be receiv ed at the place specif ied in item 8, or if hand carried, in the depository located in until 10:00 local time 11/09/2016

(Hour) (Date)

CAUTION - LATE Submissions, Modif ications, and Withdrawals: See Section L, Prov ision No. 52.214-7 or 52.215-1. All off ers are subject to all terms and conditions contained in this solicitation.

11. TABLE OF CONTENTS

(X) SEC. DESCRIPTION PAGE(S) (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

_ A SOLICITATION/CONTRACT FORM 1 _ I CONTRACT CLAUSES 36

_ B SUPPLIES OR SERVICES AND PRICES/COSTS 2 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

_ C DESCRIPTION/SPECS./WORK STATEMENT 13 _ J LIST OF ATTACHMEN TS 47

_ D PACKAGING AND MARKING 26 PART IV - REPRESENTATIONS AND INSTRUCTIONS

_ E INSPECTION AND ACCEPTANCE 27

_ K

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMEN TS OF OFFERORS

_ F DELIVERIES OR PERFORMANCE 29

_ G CONTRACT ADMINISTRATION DATA 30 _ L INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS 74

_ H SPECIAL CONTRACT REQUIREMEN TS 32 _ M EVALUATION FACTORS FOR AWARD 82

OFFER (Must be fully completed by offeror)

NOTE: Item 12 does not apply if the solicitation includes the prov isions at 52.214-16, Minimum Bid Acceptance Period.

12. In compliance with the abov e, the undersigned agrees, if this off er is accepted within calendar day s (60 calendar days unless a different period is inserted by the offeror) f rom the date f or receipt of offers specif ied abov e, to f urnish any or all items upon which prices are off ered at the set opposite each item, deliv ered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS(%)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated):

AMEND MENT NO. DATE AMEND MENT NO. DATE

15A. NAME AND

ADDRESS

OF OFFER-

OR

CODE FACILITY 16. NAME AND THE TITLE OF PERSON AUTHORIZED TO SIGN OFFER

(Type or print)

15B. TELEPHONE NUMBER

15C. CHECK IF REMITTANCE ADDRESS IS

DIFFERENT FROM ABOVE - ENTER SUCH

ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXTENSION

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETI TION:

_ 10 U.S.C. 2304(c)( ) _ 41 U.S.C. 253(c)( )

23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

(4 copies unless otherwise specified)

24. ADMINISTERED BY (If other than Item 7) 25. PAYMENT WILL BE MADE BY CODE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized off icial written notice.

AUTHORIZED FOR LOCAL REPRODUCTION

Prev ious edition is unusable

STANDARD FORM 33 (REV. 6/2014)

Prescribed by GSA - FAR (48 CFR) 53.214 (c)

10. FOR

INFORMATION

CALL:

A. NAME

Faty ma Lorenzana

B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

lorenzanafy @state.gov AREA CODE NUMBER

(504) 2236-9320

EXTENSION

X

US Emb Teg - Porton 3

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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 Honduras 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, AAFES Embassy Association Employees

(EAE), Joint Task Force Bravo (JTF) employees and Retirees are included under this contract only as a rider; the Contractor shall bill the Chief of Mission and Deputy Chief of Mission (for

ORE Staff), the Embassy Association (for EAEs), JTF and Retirees at the rates specified below.

See Section G for billing procedures.

B.2. PRICES

B.2.1 VALUE ADDED TAX.

The Government will not reimburse the Contractor for VAT under this contract. The Contractor shall not include a line for VAT on Invoices as the U.S. Embassy has a tax exemption certificate with the host government.

B.2.2 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:

Category

Estimated Number of Employees Rate per Employee Bi-Weekly Total

a. Single Employees ( Self Only) 146

b. Family Plan 356

Bi-Weekly Rates per Employee

B.2.3. Base Year of Contract

c. Subtotal (a + b)

d. Total Price for Base Year (c x 26)

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Category

Estimated Number of Employees Rate per Employee Bi-Weekly Total

a. Single Employees ( Self Only) 167 L. L.

b. Family Plan 408

L.

Bi-Weekly Rates per Employee

B.2.5. Second Option Year of Contract

c. Subtotal (a + b)

d. Total Price for Second Option Year (c x 26)

Category

Estimated Number of Employees Rate per Employee Bi-Weekly Total

a. Single Employees ( Self Only) 159 L. L.

b. Family Plan 388

L.

Bi-Weekly Rates per Employee

B.2.4. First Option Year of Contract

d. Total Price for First Option Year (c x 26)

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Category

Estimated Number of Employees Rate per Employee Bi-Weekly Total

a. Single Employees ( Self Only) 184 L. L.

b. Family Plan 450

L.

Bi-Weekly Rates per Employee

B.2.7. Fourth Option Year of Contract

c. Subtotal (a + b)

d. Total Price for Fourth Option Year (c x 26)

Category

Estimated Number of Employees Rate per Employee Bi-Weekly Total

a. Single Employees ( Self Only) 175 L. L.

b. Family Plan 428

L.

Bi-Weekly Rates per Employee

B.2.6. Third Option Year of Contract

d. Total Price for Third Option Year (c x 26)

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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 bi-weekly 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 Bi-Weekly Retention Amounts per separate premium paid per single employee and per family plan.

Period of Performance Single Employees (Self Only) Family Plan

Base Period L. L.

First Option Year L. L.

Second Option Year L. L.

Third Option Year L. L.

Fourth Option Year L. L.

B.2.8. Grand Total of Base plus All Option Years

Base Year Total L.

First Option Year Total L.

Second Option Year Total L.

Third Option Year Total L.

Fourth Option Year Total L.

Grand Total of Base plus All Option Years L.

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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, and it specifically excludes all riders in B.1.1. 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. Adjustments are not retroactive to previous contract terms. Before any such adjustment is made, the Contractor agrees to provide the Government a balance sheet showing three main components for the time period: (1) receipts (premiums received) minus the retention amount, (2) number of insurance plans and (3) claims paid. This information shall be provided per type of premium, ie per line item. The retention amount is not subject to adjustment. The Government reserves the right to have an independent third party review the balance sheet and claims 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. Mutually agreed to adjustments shall be effective thirty days after complete information is received by the Government. 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.

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PART II: PRICE - GROUP LIFE INSURANCE

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 Honduras. 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, AAFES Embassy Association Employees

(EAE) and Joint Task Force Bravo (JTF) are included under this contract only as a rider; the

Contractor shall bill the Chief of Mission and Deputy Chief of Mission (for ORE Staff), the

Embassy Association (for EAEs) and JTF 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 in

Lempiras per one-thousand of salary to provide life insurance, accidental death and dismemberment and partial and total disability coverage are as follows:

Type of Insurance

Premium

(per 1,000 of Salary)

Estimated Payroll

(Bi-Weekly in Thousands) Bi-Weekly Total

a. Basic Life L. L. 8,269,637,11 L.

b. Accidental Death & Dismemberment L. L. 14,414,963,77 L.

L.

L.

Bi-Weekly Rates per Employee

B.6.1. Base Year of Contract

d. Total Price for Base Year (c x 26)

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Type of Insurance

Premium

(per 1,000 of Salary)

Estimated Payroll

(Bi-Weekly in Thousands) Bi-Weekly Total

a. Basic Life L. 9,825,155.85L. L.

b. Accidental Death & Dismemberment L. 17,126,418.46L. L.

L.

L.

Bi-Weekly Rates per Employee

B.6.3. Second Option Year of Contract

c. Subtotal (a + b)

d. Total Price for Second Option Year (c x 26)

Type of Insurance

Premium

(per 1,000 of Salary)

Estimated Payroll

(Bi-Weekly in Thousands) Bi-Weekly Total

a. Basic Life L. 9,013,904.45 L.

b. Accidental Death & Dismemberment L. 15,712,310.51 L.

L.

L.

Bi-Weekly Rates per Employee

B.6.2. First Option Year of Contract d Total Price for First Option Year (c x 26)

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Type of Insurance

Premium

(per 1,000 of Salary)

Estimated Payroll

(Bi-Weekly in Thousands) Bi-Weekly Total

a. Basic Life L. 10,832,234.33L. L.

b. Accidental Death & Dismemberment L. 18,881,876.35L. L.

L.

L.

Bi-Weekly Rates per Employee

B.6.5. Fourth Option Year of Contract

c. Subtotal (a + b)

d. Total Price for Fourth Option Year (c x 26)

Type of Insurance

Premium

(per 1,000 of Salary)

Estimated Payroll

(Bi-Weekly in Thousands) Bi-Weekly Total

a. Basic Life L. 10,316,413.65L. L.

b. Accidental Death & Dismemberment L. 17,982,739.38L. L.

L.

L.

Bi-Weekly Rates per Employee

B.6.4. Third Option Year of Contract

d. Total Price for Third Option Year (c x 26)

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B.6.6. Grand Total of Base plus All Option Years

Base Year Total L.

First Option Year Total L.

Second Option Year Total L.

Third Option Year Total L.

Fourth Option Year Total L.

Grand Total of Base plus All Option Years L.

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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:

Period of Performance Basic Life

Accidental Death and

Dismemberment

Base Period

First Option Year

Second Option Year

Third Option Year

Fourth Option Year

B.8 ECONOMIC PRICE ADJUSTMENT (EPA)-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, .

and it specifically excludes all riders in B.1.1. 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. Adjustments are not retroactive to previous contract terms. Before any such adjustment is made, the Contractor agrees to provide the Government a balance sheet showing three main components for the time period: (1) receipts (premiums received) minus the retention amount, (2) number of insurance plans and (3) claims paid. The information shall be provided per type of premium, ie per line item. The retention amount is not subject to adjustment. The Government reserves the right to select an independent third party to

12 | P a g e review the balance sheet and claims 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. Mutually agreed to adjustments shall be effective thirty days after complete information is received by the Government. 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.

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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.1.2 in Honduras. The Government has determined that the prevailing practice by employers in Honduras 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 100% of the premium costs. The employee will pay 20% of the premium cost for dependent coverage.

For eligible employees who are regularly schedule to work less than 30 hours per week, the annual maximum limit will be prorated (reduced) based on the number of hours in the employee’s regular workweek schedule.

For retired employees, the retired employee will pay 100% of the premium cost for employee and dependent coverage.

Health insurance protection will be representative of locally prevailing compensation practice as further described in C.1.2. The specific health benefit coverage under this contract is set forth in

Section C and the Exhibits in Section J.

Unless specified below, the insurance company will pay 80% of medical expenses incurred.

Otherwise, the insurance company will reimburse covered medical expenses incurred, subject to the stated limits. Payment will be made for reasonable and customary expenses of covered benefits. The medical treatment must be prescribed or provided by a physician or nurse licensed in Honduras, the United States, or in the country in which the treatment or prescription is received. Coverage of expenses will be made in Honduran Lempiras (HNL), unless otherwise stated.

The Contractor shall insure that health care under this contract does not exclude HIV/AIDS care, unless exclusion has been authorized by HR/OE/CM.

Post-Unique Benefits

C.1.1 Employee and Dependent Health Services Benefits

The health benefits under this contract are as follows. Reimbursement of covered expenses is limited to the stated percentages of reasonable and customary costs.

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C.1.1.1. Hospitalization: 100% coverage of room and board expenses for a either a private or a semi-private room - no limit on length of stay. Maximum of HNL 1,770 per day. 87% coverage of hospital medical expenses including laboratory tests and x-rays, operating room expenses, intensive care, and prescription medicines, 80% coverage of anesthesia, surgical assistants; 75% coverage of land ambulance service; 50% coverage of air transport with a maximum of HNL 119,000; and 80% coverage of emergency room services and hospital outpatient services.

C.1.1.2 Professional Services and Treatment: 80% coverage of doctors, surgeons, surgical assistants, nursing care, and specialists’ fees incurred while hospitalized, at a clinic or doctor's office. Specialists’ fees have a maximum of HNL 800 per visit; 50% coverage of home visits; 80% coverage of medical services and expenses when not hospitalized such as laboratory tests and x-rays; 80% coverage for annual exams and immunizations; and 80% coverage for physical therapy.

C.1.1.3. Prescription Drugs and Medicines: 87% coverage of the cost of medicines and drugs for which a prescription is legally required. Expenses incurred for medicines, vitamins, cold remedies, etc., that are available over the counter without a prescription will not be reimbursed even if prescribed by a physician.

C.1.1.4 HIV/AIDS coverage (for active employees and dependents): 10,000 USD of expenses for medications to suppress opportunistic infections, such as tuberculosis and toxoplasmosis for employees and dependents who have HIV/AIDS; as well as brief courses of anti-retroviral drugs during childbirth to prevent the transmission of HIV to the employee's child.

This expanded coverage generally excludes medications for the long-term suppression of AIDS through the combination of anti-retroviral drugs at those posts with inadequate local healthcare infrastructures.

C.1.1.5 Obstetrical Care: Routine Delivery: 80% coverage; Cesarean: 80% coverage

Legal Miscarriage: 80% coverage; and 80% coverage of expenses is covered for prenatal and postnatal doctor visits.

C.1.1.6 Family Planning: Family planning expenses are not covered.

C.1.1.7 Optical Care: 80% coverage of expenses for eye examination and treatment and

50% coverage of expenses for prescription eyeglasses and frames or contact lenses.

C.1.1.8 Dental Care: 80% coverage for minor restorative care; 80% coverage for major restorative care; and 50% coverage for preventative care and orthodontics.

C.1.1.9 Psychiatric Treatment: 80% coverage for psychiatric treatment up to HNL 700 per session and a maximum of 20 sessions per year.

C.1.1.10 Medical Expenses Incurred In Country: Reimbursement for all eligible expenses, after the deductible of 400 HNL has been applied. Maximum Deductible is 3 per family.

Reimbursement is at the established percentage for the first HNL 50,000. Once the HNL 50,000

15 | P a g e limit is reached, reimbursement will be 100% of an eligible expense up to the annual maximum limit.

C.1.1.11 Medical Expenses Incurred Out of Country: Reimbursement for all eligible expenses, after the deductible of 300.00 USD per disability has been applied. Maximum

Deductible is 3 per family. Reimbursement is at the established percentage for the first

L.100,000.00. Once the L.100,000.00 limit is reached, reimbursement will 100% of an eligible expense up to the annual maximum limit.

C.1.1.12 Transportation for Out of Country Medical Treatment: Transportation for out of country treatment is not a covered expense.

C.1.1.13 Maximum Limit - With the exception of expenses incurred under c.1.1.4, the

Insurance company will reimburse covered expenses up to a limit of HNL 10,177,537 per covered individual per lifetime of the contract. Regarding the maximum limit for HIV/AIDS coverage of employees (paragraph C.1.1.4) there must be a separate maximum limit for this benefit. HR/OE/CM has included a limit of US Dollars $10,000.00

C.1.2 Health Benefits Conditions and Limitations.

Conditions and limitations on the entitlement to health care under this contract are as follows:

Rest cures or expenses incurred in a sanatorium; criminally provoked abortions; expenses related to the treatment of problems of the jaw, including temporomandibular articulation syndrome

(STA), creaneomandibular disorders or other conditions of the articulation that connects the bone of the jaw to the skull and muscular complex, the nerves and other tissue to such articulations;

expenses related to weight control or obesity treatment, including medication, or any surgical procedure, or diet injections; Elective cosmetic surgery; Spa cures; rejuvenation cures; massage;

exercise therapy; long term rehabilitative therapy; non-medical hospital charges such as telephones or television; home help family help, or similar household assistance; fees or persons who are not licensed physicians or nurses; services or supplies which have not been prescribed or approved by a physician or nurse; expenses related to illness/injury that is a result of an unlawful action on the part of the patient; expenses related to the practice of a dangerous sport; expenses related to excessive or illegal use of alcohol (above the .07% level of Blood-Alcohol concentration) or drugs; expenses related to a self-inflicted wound; expenses related to service in the armed forces of any country.

No coverage will be made for expenses that will be reimbursed or paid directly under a host country medical program, the U.S. workers' compensation program, or any Honduras workers' compensation type program.

No coverage will be made for expenses incurred after an employee leaves the service of the U.S.

Mission.

There is no reimbursement for round trip transportation expenses to travel out of country for medical treatment.

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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. LE Staff who are: working on a full time or part time basis under non-temporary direct hire appointments, personal services agreements, or personal services contracts and paid under the terms of the Local Compensation Plan.

C.1.3.1.2. Locally hired U.S. citizens employed under direct hire appointments, PSAs, and PSCs.

C.1.3.2 Location of Employment

The individuals covered by C.1.3.1 must be employed within the geographic boundaries of Honduras by:

U.S. Department of State

U.S. Agency for International Development

Office of Security Cooperation

Defense Attaché Office

Corps of Engineers

U.S. Department of Commerce

U.S. Department of Agriculture

Department of Homeland Security/ICE & CBP

Force Protection Detachment

Center for Disease Control

Federal Bureau of Investigation

Drug Enforcement Administration

Office Of Overseas Prosecutorial Development, Assistance And Training

Joint Task Force Bravo Palmerola

U.S. Embassy Personnel Association (AAFES)

Office Residence Employees (ORE)

C.1.3.3 Participants Covered Under a Rider

C.1.3.3.1 All current active employees of the Chief of Mission and the

Deputy Chief of Mission 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.1.3.3.2 All current active employees of the Employee Association at

Embassy in Tegucigalpa (AAFES) (see separate rider, Exhibit C). All costs for AAFES

EAEs are the responsibility of the Employee Association, not the U.S. Government.

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C.1.3.3.3 All current active employees of the Joint Task Force Bravo in

Honduras (JTF-Bravo) (see separate rider, Exhibit D). All costs for JTF-Bravo employees are the responsibility of JTF-Bravo, not the U.S. Government.

C.1.3.3.4 Retired employees and dependents (see separate rider, Exhibit E)

C.1.4 Individuals Not Eligible for Coverage

Individuals that are not eligible are those working under temporary appointments; those working under a PSC or PSA that is time limited to less than one year; non personal services contract personnel and their employees, supplied by an independent contractor licensed to do business in

Honduras 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.

Employees older than 69 years of age will not be considered eligible.

C.1.5. Other Eligible Participants

The following additional categories of persons are covered by this insurance:

Expenses incurred by an enrolled employee's eligible dependents are covered under this plan.

Enrollment of eligible dependents is voluntary. For the purposes of this plan, an employee's dependents are defined as the employee's legal spouse (limit one) or unmarried domestic partner and each unmarried, economically dependent child who primarily resides with the employee unless away at school. Same-sex partners are included under dependent coverage.

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 21, 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.

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.

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During a period of Leave Without Pay (LWP) 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.

Coverage is from the first day the Policy is in effect; therefore all affiliates of the group will be insured immediately including pre-existing conditions and maternity.

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 leave without pay or unpaid leave beyond one pay period the employee is responsible for the full cost of premiums. The USG will pay the premiums directly to the Contractor, and will collect the full cost from the employee. Alternatively, the employee may elect to have coverage cease if he/she prefers not to pay the premium.

C.1.7. BROCHURE REQUIREMENT

C.1.7.1. The Contractor shall provide a document (brochure/pamphlet/other written document) in English and Spanish 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.

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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 Honduras. The Government has determined that the prevailing practice by employers in Honduras is that group life insurance coverage is representative of locally prevailing compensation practice and that the cost of such insurance protection is borne by the employer on a 100%. Therefore, the United States Government will pay 100% of the premium costs 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 Employee Life Insurance.

The amount of life insurance coverage for each employee is equal to 26 times the monthly nominal basic salary of the employee, plus 35,000.00 HNL for funeral expenses for death of employee and/or dependents enrolled under the health plan.

C.2.1.2 Amount of Accidental Death and Dismemberment Coverage.

The employee's estate or employee will receive an amount equal to 41 times the amount of monthly basic salary, in the event the employee is killed in an accident.

C.2.1.3 Partial and Total Disability Coverage:

(1) Total Disability: 100%

(2) Partial Disability: 100% for the loss of both hands, feet, sight of both eyes, and any combination of these. 50% for the loss of one hand, or one foot, or loss of sight in one eye, loss of thumb and forefinger. 15% for the loss of index finger. 5% for loss of middle, ring, or little finger.

Coverage should be based on 41 times the amount of monthly basic salary.

C.2.2 Life Insurance Benefits Conditions and Limitations

Conditions and limitations on the entitlement to life insurance benefits under this contract are as follows:

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For employees only: Non-Contributory: Under the provisions, non-contributory insurance means insurance which is provided at no cost to the employee. The U.S. Government will pay 100% of such premiums.

Employees contracting optional insurance and insurance for spouses shall pay for its costs.

The Government shall provide facilities for periodic payroll deductions and remittance of optional life insurance and spouses' insurance premiums to the company.

Upon termination, employees may convert their life insurance policy into an individual policy.

In case of delays in the payment of premiums, the Company will not leave uncovered the employees insured by the Policy issued to the name of the Embassy of the United States.

There will be automatic coverage for inclusion of new employees from the date of employment and when the insured amount increases due to retroactive salary raises.

The benefit of funeral expenses will be paid at the moment a written notice of the event has been received. The Embassy of the United States of America will present at a later date the necessary documents.

No benefits shall be payable if an employee's death or other insurance event was caused directly or indirectly by war. War shall be defined as declared or non-declared war or any martial operations or invasion, hostile acts of foreign powers, rebellion, riot, civil war, uprising, mutiny, operations by military or usurpatory authorities, martial law or state of siege or any other similar event or reason for declaring martial law or war. A terrorist attack shall not be considered war.

No benefits shall be payable under this contract if the employee’s bodily injuries have been caused directly or indirectly and totally or partially by:

1. self-inflicted wounds or wounds inflicted at the employee’s request, irrespective of the employee being sane or insane

2. violating the law or in resisting detention or arrest,

3. participating in competitions involving the use of wheeled vehicles, horses, boats, or water skis,

4. flying an airplane or any other aircraft as a passenger or otherwise, except as a passenger on an airplane operated by a passenger airline on a scheduled air service over an established passenger route,

5. an accident resulting from the employee being under the influence of alcohol (above the .07% level of Blood-Alcohol concentration), drugs or other toxic substance unless administered by a physician. Death as a result of a disease or physical or mental infirmities and medical or surgical treatment thereof (except pyogenic infection due to an accidental cut or wound) shall be considered a natural and not an accidental death. In case the insured dies due to suicide, coverage will be paid on the basis of Basic Life Insurance.

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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 Locally Employed (LE) Staff who are (1) working on a full-time or part-time basis under non-temporary direct hire appointments and under personal service agreements/contracts that are not time limited to less than one year, (2) paid under the

Local Compensation Plan, (3) current active employees of the United States Government, employed within the geographic boundaries of Honduras, and (4) certified by the

Contracting Officer.

C.2.3.1.2 Locally hired U.S. citizens employed under direct hire appointments, PSAs, and PSCs.

C.2.3.2 Location of Employment

C.2.3.2 The individuals covered by C.2.3.1 must be employed within the geographic boundaries of Honduras by:

U.S. Department of State

U.S. Agency for International Development

Office of Security Cooperation

Defense Attaché Office

Corps of Engineers

U.S. Department of Commerce

U.S. Department of Agriculture

Department of Homeland Security/ICE & CBP

Force Protection Detachment

Center for Disease Control

Federal Bureau of Investigation

Drug Enforcement Administration

Office Of Overseas Prosecutorial Development, Assistance And Training

Joint Task Force Bravo Palmerola

U.S. Embassy Personnel Association (USEPA)

Office Residence Employees (ORE)

C.2.3.3 Participants Covered Under a Rider

C.2.3.3.1 All current active employees of the Chief of Mission and the

Deputy Chief of Mission 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.

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C.2.3.3.2 All current active employees of the Employee Association at

Embassy in Tegucigalpa (see separate rider, Exhibit C). All costs for AAFES EAEs are the responsibility of the Employee Association, not the U.S. Government.

C.2.3.3.3 All current active employees of the Joint Task Force Bravo in

Honduras (JTF-Bravo) (see separate rider, Exhibit D). All costs for JTF-Bravo employees are the responsibility of JTF-Bravo, not the U.S. Government.

C.2.4 Individuals Not Eligible for Coverage

C.2.4.1. Not eligible are LE Staff working under temporary appointments; those working under a PSC or PSA that is time limited to less than one year; those with a When

Actually Employed (WAE) workweek; non personal services contract personnel and their employees, supplied by an independent contractor licensed to do business in Honduras who provides services to other local organizations as well as to the U.S. Mission;

employees of USAID institutional contractors; employees who have reached the age of

65 or older; and Peace Corps personal services contractors as indicated in MS 743 and any other individual not falling within one of the categories of employees described in this clause.

C.2.4.2. Retirees are not eligible.

C.2.5. Other Eligible Participants

The following additional categories of persons are covered by this insurance:

It is optional to purchase insurance for the spouse of an employee of the U.S. Government, and the cost of this optional insurance is borne solely by the employee.

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 and disability 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.2.6.2. Period of Ineligibility

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

During a period of extended (beyond one pay period) of Leave Without Pay

(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 Spanish 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 USAID.

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

Contributory Insurance for which the employee contributes toward the premium.

Currency Premiums and benefits will be paid in local currency (Honduran Lempiras, abbreviated as HNL).

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

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Dependent For the purposes of this plan, an employee's dependents are defined as the employee's legal spouse (limit one) or unmarried domestic partner and each unmarried, economically dependent child who primarily resides with the employee unless away at school. Same-sex partners are included under dependent coverage.

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 21, 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.

Disability, Total and Permanent A physical or mental impairment which precludes the individual from performing ordinary motor or bodily functions and which requires separation from employment. If the impairment is the result of a previous impairment, it shall be considered a continuation of the prior impairment.

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, AAFES EAE and JTF-Bravo employees, 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 and AAFES EAE employees, the Chief of Mission/Deputy Chief of Mission and Employee

Association, respectively and JTF-Bravo representative.

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.

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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.

Salary Monthly salary is one-twelfth of the employee’s annual basic salary, exclusive of premium pay, allowances, bonuses, or any other separate payments.

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

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SECTION D

PACKAGING AND MARKING

(RESERVED)

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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://www.acquisition.gov/far/ or http://farsite.hill.af.mil/vffara.htm

These addresses are subject to change. If the Federal Acquisition Regulation (FAR) is not available at the locations indicated above, use the Department of State Acquisition website at http://www.statebuy.state.gov/ to see the links to the FAR. You may also use an internet “search engine” (for example, Google, Yahoo, Excite) to obtain the latest location of the most current

FAR.

The following Federal Acquisition Regulation clause(s) is/are incorporated by reference:

CLAUSE TITLE AND DATE

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.

Performance Objective

PWS

Paragraph Performance Threshold

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

(1) customer complaint is received per month http://www.acquisition.gov/far/ http://farsite.hill.af.mil/vffara.htm http://www.statebuy.state.gov/

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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.

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SECTION F

DELIVERIES OR PERFORMANCE

F.1. 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates the following clauses by reference,…