US_Embassy_Beirut,_SLE200-17-R-0002-A003.pdf

MINUTES OF MEETING

PRE-PROPOSAL CONFERENCE

DATE: 05/24/17; 10:00-11:30 AM

SUBJECT: Pre-Proposal Conference for Health Insurance Solicitation (RFP # SLE200-17-R-0002) PARTICIPANTS: Representatives from 14 Insurance Companies

Gregory Randolph / Contracting Officer Michelle Ward / Management Officer / Acting Human Resources Officer Ghida Hafez / Human Resources Specialist Soha El Hoyek / Procurement – Contracting Assistant Garo Ohanian / Procurement & Contracting Supervisor

1- Garo Ohanian welcomed all attendees and read the names of the companies represented in the conference.

He also asked attendees to sign the sign-in sheet. He also introduced the Embassy Representatives attending the conference.

2- CO Gregory Randolph explained that the purpose of the meeting was to provide an opportunity for all firms to understand U.S. Government solicitation procedures and rules that apply to the solicitation process.

Participants were encouraged to ask questions during the CO presentation. They were made aware that all oral clarifications or discussions during the conference do not change any clause of the solicitation. CO clarified that the USG had already received questions in writing from interested offerors and that this was the chance for offerors to ask their questions in writing. He mentioned that the USG will answer all questions in writing and that the document will be shared with all potential Offerors by posting it on FBO website. He also mentioned that the due date for receiving offers was 16:30 on June 12, 2017.

3- Gregory Randolph provided a summary of the solicitation package. Specific sections covered were Section B- Prices, Section K- Representations, Section L- Instructions to Offerors and Section M- Evaluation Factors.

It was also explained that all necessary fields need to be completely filled out in SF-33, Sections B and K, and that the offer currency is to be specified by the Contractor. He reminded the participants that failure to submit a complete proposal may be cause for their proposal to be rejected and deemed as unacceptable.

4- Gregory Randolph stated that the contract will be firm fixed price with economic price adjustment clause per Section B. The contract is for 1 base year and that the USG has the option for 4 additional years and that offerors should prepare their proposals accordingly, filling out the relevant parts in Section B of the solicitation document.

5- Garo Ohanian reminded participants that the solicitation package was advertised in 2 local daily newspapers, the Embassy and FBO websites, and that all related amendments and the Question and Answer document will also be posted on that FBO website shortly. Offerors should check the FBO website periodically for information related to this proposal.

6- Gregory Randolph also mentioned that the award will be made to the offeror who provides the lowest priced, technically acceptable and responsible offer.

7- Most companies requested clarifications regarding the DBA requirement.

The Pre-Proposal Conference concluded and attendees were thanked for their presence. The meeting was adjourned at 11:30.

OhanianGK Typewritten Text

ATTACHMENT A

RFP # SLE200-17-R-0002

Medical Insurance

US Embassy Beirut - Lebanon

Questions & Answers

June 8, 2017

The information contained within these questions and answers is provided for informational purposes and under no circumstances shall it be construed to change any terms or conditions or requirements within the solicitation. In addition, for any answer provided regarding the number of personnel or claims data incurred under the existing contract, please be advised that this data may not be indicative of future claims and could change.

Therefore, it is each offeror’s decision on whether to use or not to use this information. However, under no circumstances shall the U.S. Government be liable for this data or shall it become the basis for a request to adjust the premium rates once the contract is awarded. Rather, offerors are advised any adjustments to contract premium rates shall be in accordance with the Price Adjustment clauses B.4 and B.8 of the contract.

1- Q: Is it fine to bill the Embassy on monthly basis or should it be every 14 days?

A: Please see G.4.2. and H.3 of the solicitation for guidance.

2- Q: Any forms required to be filled online? (e.g. www.acquisition.gov)

A: No forms need to be filled online, except for the SAM registration.

3- Q: Is the insurer required to secure the DBA insurance benefit to U.S. Embassy employees in Beirut or shall the COR arrange for it directly? If so, Is the insurer obliged to deal with one of the listed authorized insurance carriers only?

A: The Offeror shall include Defense Base Act (DBA) insurance coverage in section B overall pricing. DBA Insurance is required for all personnel working on the contract to include American citizens, Individuals hired in the United States or its possessions, regardless of citizenship, Host Country Nationals (HCNs) and Third Country Nationals

OhanianGK Typewritten Text

ATTACHMENT B

(TCNs) working overseas. The offeror may obtain DBA insurance directly from any Department of Labor approved providers at the DOL website at:

http://www.dol.gov/owcp/dlhwc/lscarrier.htm;

DBA insurance is only needed for contractor personnel physically working at the U.S. Embassy compound.

4- Q: Should the premium of the DBA be embedded within the prices under section B?

A: See answer # 3.

5- Q: We presume that the bid for the group life will be for next year.

A: Yes.

6- Q: In C.1.1.1. Hospitalization is 100% coverage of room and board for a private or semi-private room. We note that the cover is either private or semi-private. So, we have to present two separate offers. Please confirm.

A: Confirmed.

7- Q: In C.1.1.5 Obstetrical care is at 100% when not hospitalized. It is said that the percentage is 100% when not hospitalized i.e. on out-patient basis, please clarify why it is not 90%.

A: Confirmed. Obstetrical care is 100% when hospitalized and not hospitalized.

8- Q: In C.1.1.9 Dental care 45% coverage …………per visit per patient. It is said 45% coverage up to LBP 517,000. - per visit per patient. In other words, each visit should cost no less than the LBP 517,000.- This is huge for Lebanon and would request a very high premium because visits to a dentist are numerous but the essential are few.

Please clarify and we suggest applying a maximum limit per treatment or eventually per year.

http://www.dol.gov/owcp/dlhwc/lscarrier.htm

A: Each visit is 45% reimbursement up to LBP 517,000, based on submission of appropriate medical reports/documentations/receipts. Reimbursements will be based on customary and reasonable expenses.

9- Q: In C.1.2 Health Benefits Conditions and Limitations Comparing the present conditions and limitations with the previous solicitation’s ones, the following exclusions are not mentioned:

1- Cosmetic treatment and cosmetic drugs 2- Elective sight corrective surgery 3- Hospitalization that is not medically mandated Please advise if they are still excluded bearing in mind that if you cover them the cost is substantially increased.

A: Health Benefit conditions and limitations are listed under C.1.2. only.

10 Q: Under Section “L”- first paragraph: the offeror shall include DBA…… What is requested is not clear, we have printed the website and a copy is attached for your clarification.

11- Q: Section C.1.1.11 – Is the intent of the plan to cover only claim expenses incurred in Lebanon, or if appropriate care is not available, in the nearest location where the necessary care is available?

A: The intent of the plan is to cover claims incurred in Lebanon. However, as stated in C.1.1.11 medical expenses incurred out of country will be covered should a life threatening condition occur while the individual is out of country and treatment is medically necessary or the individual’s attending physician certifies in advance that such treatment is medically necessary and unavailable locally.

12- Q: Section C.1.3.3 – our understanding of this section addressing “Participants Covered Under a Rider” is that individuals in this category are not included in the health care coverage requested via this RFP. Will you please confirm?

A: Health care coverage for participants under C.1.3.3.1 (ORE employees) and C.1.3.3.2 (EAE) is the same as Employees and eligible dependents of the United States Government.

The health care coverage for participants under the C.1.3.3.3 rider (retirees and eligible dependents) is listed under C.1.1.14.

Please see H.3.1 for further guidance.

H.3.1. The ORE staff, EA employees and Retired employees under separate riders are not included under the task orders issued by the Contracting Officer. Because their coverage is under a rider, their employer and themselves are responsible for directly interacting with the Contractor to order any coverage for their employees and themselves. When contacted by the employer or themselves, the Contractor shall advise them 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).

13- Q: Sec. H.6.2 – Licenses and Local Laws – Please note that Aetna is not licensed nor is their products approved for distribution in Lebanon as a traditional admitted insurance carrier.

Our interpretation in this situation is that Aetna and Broadway are both U.S. licensed companies, delivering a contract to a U.S. entity (U.S. Government), on U.S. soil (U.S.

Embassy in Beirut) so Aetna and Broadway don’t have to have a license in Lebanon.

However, if the intent of the U.S. State Department is strict interpretation of this section and you require that Aetna be licensed in Lebanon, then we may need to consider utilizing a fronting partner in Lebanon to maintain compliance. Will you please provide any insight you can gather on this provision from your information sources?

A: Please see subpart H.6.1 and H.6.2. –to establish venture location and Licenses and Local Laws –also see L.4.3.2.2 - Licensing Information – for guidance referenced in this solicitation.

14- Q: As per instructions ,conditions of section L of the said RFP ,the Offeror must include Defense Base Act (DBA) insurance premium costs covering employees (which of them) from any DOL approved providers as per DOL website mentioned, on which we couldn’t find such providers but only Q&A from US Embassy at Serbia.

15- Q: As understood that we can obtain DUNS (DATA UNIVERSAL NUMBERING SYSTEM) & register at SAM (SYSTEM FOR AWARD MANAGEMENT) after been awarded this RFP.

Please confirm.

A: All contractors have to be registered in the SAM (System for Award Management) Database https://www.sam.gov prior to contract award pursuant to FAR provision

5.207. Therefore prospective offerors are encouraged to register prior to the submittal of quotations/proposals.

16- Q: As per section I there are clauses for HOUSING plan (per ex) do not relate to the RFP for Health Insurance. Please clarify.

A: The contractor shall abide by all requirements of the contract.

17- Q: According to Section K the Offeror must have TIN (tax Identification number) & since we are not US Co we cannot have such number.

A: No U.S. TIN is required for the following:

The income is from foreign sources and the beneficial owner has provided a valid Form W-8BEN as a certificate of foreign status as well as evidence that the income is foreign source.

The recipient of income is a foreign government, a government of a U.S.

possession, or an eligible international organization that has submitted a valid Form W-8EXP claiming an exemption from tax under an applicable Code rule.

18- Q: Kindly advise if there are BURIAL Expenses to be covered.

A: Burial expenses are not covered under this solicitation.

17- Q: Do you require financial limitation of any kind to be applied for OUT Benefit since no limit for transactions is mentioned for OUT coverage.

https://www.sam.gov/

A: Contractors are to provide services in accordance with solicitation requirements.

18- Q: Kindly confirm that the DENTAL & the OPTICAL Benefits will be on REIMBURSEMENT basis and if they have any limitations.

A: Dental coverage: 45% coverage up to 517,000 LBP per visit. See C.1.1.9 Optical coverage: 60% coverage. C1.1.8.

Dental and optical claims will be on reimbursement basis.

19- Q: Premium history for health Insurance for the current year and EACH of the last 5 years - 2016, 2015, 2014, 2013, 2012. It is standard practice in the insurance industry (and in other Department of State insurance solicitations) to provide this information to ensure equal/fair opportunity for all offerors in an open solicitation.

A: Premiums of bi-weekly rates:

Third option year of the contract (August 13, 2016 through August 12, 2017)

Employee $ 87.26 Spouse $ 87.26 Child $ 33.77 Retired employee: $95.99 Retired employee spouse: $95.99 Child of retired employee: $37.16

Second option year of the contract (August 13, 2015 through August 12, 2016)

Employee $ 83.08 Spouse $ 83.08 Child $ 32.16 Retired employee: $91.40 Retired employee spouse: $91.40 Child of retired employee: $35.41

First option year of the contract (August 13, 2014 through August 12, 2015):

Employee $ 79.13 Spouse $ 79.13 Child $ 30.63 Retired employee: $87.04 Retired employee spouse: $87.04 Child of retired employee: $33.69

Base year of contract (August 13 2013 through August 12, 2014):

Employee $ 75.36 Spouse $ 75.36 Child $ 29.18 Retired employee: $82.89 Retired employee spouse: $82.89 Child of retired employee: $32.09

20- Q: Average insured member counts for EACH of the last 5 years - 2016, 2015, 2014, 2013, 2012. It is standard practice in the insurance industry (and in other Department of State insurance solicitations) to provide this information to ensure equal/fair opportunity for all offerors in an open solicitation.

A:

Employees Spouses Children Total Dependents Total Insured

2013 520 341 688 1029 1549

2014 548 356 703 1059 1607

2015 549 361 697 1058 1607

2016 557 355 691 1046 1603

Statistics/information are being provided for the base year (2013) and option years 2014, 2015 & 2016.

21- Q: Advise if 2016 benefit schedule for health insurance is the same as the benefit schedule currently being requested under S-LE200-17-R-0002; and if not advise us on the differences. Alternatively, you can simply provide the previous solicitation document.

A: No they are different coverages. Summary of the current contract coverage is:

Hospitalization: 100% on second class up to a maximum annual limit of LBP 225,000.-

Out-of Hospital Benefit: Benefits are included in the same maximum annual limit of LBP 225,000.-

Prescription drugs and medicines: 90% reimbursement for medicine and drugs up to LBP 15,000,000 per insured per year.

Diagnostic Services: 90% reimbursement for lab and x-ray

Doctor Visits: 90% reimbursement of doctors' fees up to a maximum of LBP 75,000.-

Optical Care: 40% reimbursement for eye examination and treatment.

Dental Care: 40% reimbursement for dental services

Physical Therapy: 90% reimbursement up to LBP 300,000 per patient per year.

22- Q: Are any major illnesses (Hemodynamics, Open Heart Surgery, Orthopedic Mayor Surgeries, Organ Transplant, Traumatic Accident, Cancer and Oncology Cases) being treated? If Yes, please provide number (we do not need the names or identification, we just need to know the total number of people hospitalized to assess the risk).

A: Please see following table for the number of claims for the base, first, second and third option years of the contract:

Number of claims

Open heart surgeries 3 claims

Orthopedic Major surgeries (> 10,000

USD)

11 claims (including 4 Major claims due to trauma)

Organ transplant claims 2 Claims / 2 cases /

Traumatic accident claims (ER+IN) Approximately 1500 claims

(Including 4 Major surgeries > 10,000 USD due to Trauma)

Cancer/oncology claims Approximately 550 Claims for approximately 60 cases/insured

Hemodynamics (all claims other than traumatic claims)

Approximately 59300 Claims for approximately 1850 insured

23- Q: Are there any large losses (in excess of $10,000) within the last year to date? If Yes, please provide number (please note we are not seeking protected private information, we do not need the names or identification; we just need to know the total number of large losses and the amounts to assess the risk and price accordingly).

A: Please see below table.

Underwriting year Number of members having claims

Number of claims above US$

10,000.-

Remark

2013 1490 23

1/23 is above US$ 50,000.-

1/23 is above US$ 150,000.-

2014 1547 15 1/15 is above US$

100,000.-

2015 1486 22 2/22 are above US$

50,000.-

2016 1402 21 3/21 are above 50,000.-

24- Q: Are there any HIV/AIDs cases. If Yes, please provide number (please note we are not seeking protected private information, we do not need the names or identification; we just need to know the total number of people who are currently being treated for HIV/AIDs to assess the risk and price accordingly).

A: No HIV/AIDs cases reported so far.

25- Q: When is this plan likely to commence?

A: The U.S. Government is planning to award the new contract to commence at the end of the third option year of the current contract on or before August 12, 2017.

26- Q: Reference Section L (DBA), provide the total (global) annual salaries of all employees.

Also, kindly indicate the minimum and maximum salary.

A: see answer # 3.

27- Q: Should we abide by the census list of page 50 to quote?

A: All statistics is given for information. Please see Disclaimer under Section J – List of

Attachments – for guidance.

28- Q: What are the other census list on page 53 and 56? Are those inclusive in the list of employees?

A: No they are not. See section B.1.1 for further details.

29- Q: Retirees list are 23 people, no census list of ages?

A: See D.1 under Section J – List of Attachments

30- Q: Section C: can we insert our exclusions on policy or sub-limit, for certain cases like prosthesis, transplantation or other?

A: The only applicable exclusions are the ones listed in C.1.2.

31- Q: Can you please clarify the DBA insurance?

32- Q: The covers is a first, second or semi-private class? Meaning the claims incurred and reported are based on which class?

A: See answer # 6 and # 21.

33- Q: Please provide full details about DBA. How to get. Website. Cost. Etc.

34- Q: Would it be possible to get the total salaries and the top salaries to estimate the

DBA?

35- Q: In the bid, it is stated that the contract is for 5 years. In what year you are? Is it open renewal?

A: We are in the Third Option Year of the current contract. Exercise of the Option Years is a prerogative of the U.S. Government.

36- Q: We need a clarification on the sum insured. Page 20, C.1.1.13 states that the limit is LBP 450,000, whereas on page 51 (A.2), the annual maximum limit is LBP 225,000,000.

Please clarify.

A: The total amount per insured per contract year requested for this solicitation is

LBP 450,000,000.

The current medical coverage, the total amount per insured per contract year is

LBP 225,000,000.

37- Q: Can you please explain in more details the process of re-evaluation the premium (after 1 year) based on experience .i.e. Economic Price Adjustment.

A: See clause - B.4.- ECONOMIC PRICE ADJUSTMENT-HEALTH INSURANCE PREMIUMS

38- Q: Can two insurance companies join forces to submit the bid jointly? i.e. Joint Venture.

A: No.

39- Q: Is the group life policy issued with a local company and is this insurance company participating on this bid? What is the reason behind removing the life section from the bid?

A: Yes. It is a local company. Yes, they expressed interest in bidding. They are two separate contracts.

40- Q: Is an insurance broker allowed to participate in the bid?

A: No.