Qusetions_and_Answers.pdf

RFP # SLE200-13-R-0004 – Medical & Life Insurance

US Embassy Beirut - Lebanon

Questions & Answers

April 19, 2013

1- Q: Will the US Embassy accept proposals from global insurance brokers?

A: Companies can submit proposals meeting following RFP requirements:

Page 41 - H.6.2. - Licenses and Local Laws Page 72 - L.4.3.2.2 - Licensing Information and FAR Page 55 - 652.242-73 AUTHORIZATION AND PERFORMANCE (AUG 1999) Page 77 - M.3.1. General

2- Q: Annual premium and claims paid history for the past five (5) years for the group medical insurance and life insurance in Lebanese Pounds (LBP) or in USD Dollars (USD)

A: See Attachment – CLAIMS EXPERIENCE FROM FEB 2010 TO NOV 2012

3- Q: Hospitalization: For semi-private class, the cover is 100 % and for private is 80% and not to exceed the cost of semi-private.

• Clarify the meaning of semi-private: is it the second class as defined by the hospital or is it in any room with two beds (social security class, economic class i.e. K class?

The rooms for such class are limited which is contrary to the second class. Example the old rooms of the hospital, possibly with no bath, no TV, old materials…)

• Clarify the private room choice: does this choice oblige the insured to pay the difference to the hospital or does he have the choice of buying the upgrade? i.e. pay a separate premium, in the beginning of the contract, which will cover the difference between private and semi-private.

Remark: the difference between first and second class in Lebanon is much higher than 20%.

A: See attached Amendment # A002 - C.1.1.1. Hospitalization and C.1.1.2 Professional Services and Treatment.

100% reimbursement for hospitalization, medical services and professional services and treatment on second class basis.

4- Q: Taxation: Per the Lebanese Law of Organization of insurance companies, any insurance policy contracted on a Lebanese interest (except Life policies) is subject to 11% taxation on the total premium. Is this applicable to any offerer whether from Lebanon or outside Lebanon?

A: Page 41 - See Clauses H.6.1

5- Q: How many years does the “Requirement Period” cover?

A: Page 35 - See Clause F.2 - PERIOD OF PERFORMANCE

6- Q: Will this solicitation change to become a “Supply” contract? If so when and under what conditions?

A: Page 2 – see Clause B.1 - HEALTH INSURANCE SERVICES.

7- Q: Why is this solicitation a “Requirement Type” and not a “Supply Type”? Would that not force bidders to inflate their prices, especially considering that all of the services are to be rendered and performed in Lebanon?

A: Page 51 - See Clause 52.216-21 REQUIREMENTS (OCT 1995)

8- Q: To provide a quote for five (5) years, fixed prices and then receive no orders is a very tough sell for some companies, specifically Lebanese. Will the US Government ever consider paying the winner some type of retainer?

A: The US Government will not pay the winner a retainer. If the US Embassy in Beirut (see C.1.3.2) has a requirement for health or life insurance for its employees (see C.1.3), the US Embassy is obligated to purchase the insurance from the contractor(s) awarded a contract (see M.7.) Page 9 - See Clause B.4. ECONOMIC PRICE ADJUSTMENT-HEALTH INSURANCE PREMIUMS and Page B.18 ECONOMIC PRICE ADJUSTMENT-LIFE INSURANCE

PREMIUMS

9- Q: Provide claims history for the past three (3) years

A: See answer to Question (2) above.

Questions Number 10 thru 23 Were Received During the Pre-Proposal Conference on April 10

10- Q: In case the contract is signed and approved: What about:

1- Underwriting (Life side) 2- Medical exams can be requested for high sum insured?

3- Are there applications to be filled by insured members? Mentioning the beneficiaries on the life covers?

A: Page 28 - C.2.6.1 – Each current active employees will be enrolled for life insurance and disability benefits in the new contract upon award and thereafter during the performance period(s) of the contract. New eligible employees will be enrolled upon entering on duty with the United States Government.

1- No underwriting 2- No medical exams for high sum insured 3- Each current active employee will fill out a “Designation of Beneficiary” form that will be provided by the contractor.

11- Q: Semi private class versus 1st class is not applicable in Lebanon as the whole bill will be affected, in which class will the cover be for other than R & B?

A: See answer to Question (3) above.

12- Q: Terrorism is excluded?

A: Page 26 and 27 - C.2.1. and C. 2.2 - terrorism is excluded.

13- Q: Claims experience for the past years Life and Medical including retirees and association.

A: The Embassy does not have the claims experience of retirees and association.

Please refer to section M.2 Page 77 of the RFP.

14- Q: Mode of payment for retirees and association.

A: Page 38 - G.4.4 (ORE Staff), G.4.5. (EAE Staff) and G.4.6. (Retired employees)

15- Q: Is the US Embassy tax exempted in Lebanon (11%)?

A: Page 41 – See Section H.6.1

16- Q: Is it possible to have the last three (3) years claims history?

A: See answer to question 2 above

17- Q: If there is an increase in the salaries, will the life insurance be amended accordingly?

A: Page 11 thru 16 – See Section B.6.1 thru B.6.5 – Column (C) - Total premium is a function of premiums to be quoted per 1,000 of the salary. If an employee’s salary goes up, his/her premium will go up and his/her “Life Benefit” will also go up. See page 26 – clause C.2.1.1.

18- Q: Is there a filtering done from HR side to approve or reject “out-patient exams”, “medicine”, “doctor visit”?

A: Page 39 – H.4.b.1 – Filtering and auditing is the responsibility of the insurance company.

19- Q: Retention: To be clarified.

A: Page 9 and 18 – See B.3 and B.7

Retention amount includes all costs except the actual portion of the premium intended to fund claims paid to the health care provider/claimant. Since it is directly related with Economic Price Adjustment, which allows the contractor and Government under certain circumstances to revise the prices upward or downward. During price revisions these retention amounts play an important role. Therefore, it is in the benefit of the Government and contractor to have this amount as fixed cost. A percentage will not be accepted.

The retention amount is part of the premium and may include, but not be limited to, such costs as overhead and general, administrative costs, and profit. Refer to the solicitation section B.3 for more details.

20- Q: We have sent a request to register to the DUNS last week and which to date we did not receive any reply. Please advise steps to follow.

A: Check http://fedgov.dnb.com/webform or call Dun and Bradstreet at 1-866-705-5711

Page 48 – See 52.204-99 (b)(1) also http://fedgov.dnb.com/webform�

21- Q: Some of the requirements in Section (K) are to certify so & so of certifications. Should we use Company’s letterhead to make these certifications or to sign the documents into this Bid only?

A: Both methods are acceptable.

22- Q: We have some licenses in Arabic such as Ministry of Economy certificate or NSSF (National Social Security Fund) and Ministry of Finance Quietus, should we translate them or to present them in Arabic?

A: Arabic copies are sufficient. No need for translated copies.

23- Q: Health Plan

Please advise regarding the coverage of:

1- Hospitalization not medically mandated 2- Organ donation 3- Sight correction surgery 4- Abortion not medically mandated 5- Organ transplant and cost of organ 6- Fertility 7- Infertility 8- In-vitro fertilization 9- Chronic dialysis 10- Special diet weight control and procedures / Gastrodasty 11- Parkinson disease 12- Experimental treatment and procedures 13- Termination of coverage for hospitalized patient

A: Page 20 - Clause C.1.1. - Employee and Dependent Health Services Benefits as amended in attached Amendment # A002 to the solicitation.

Page 22 – Clause C. 1.2. - Health Benefits Conditions and Limitations.