TIB-2019-RFP-0005.pdf

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

UNDER DPAS (15 CFR 7900)

RATING PAGE OF PAGES

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

CODE7. ISSUED BY 8. ADDRESS OFFER TO (If other than item 7)

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

SOLICITATION

9. Sealed offers in original and copies for furnishings the supplies or services in the Schedule will be received at the place specified in item 8, or if hand carried, in the depository located in until local time

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR

INFORMATION

CALL:

A. NAME B. TELEPHONE (NO COLLECT CALLS)

AREA CODE NUMBER EXT.

C. E-MAIL ADDRESS

11. TABLE OF CONTENTS

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

A B C D E F G H

I

J

K

L

M EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

LIST OF ATTACHMENTS

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

CONTRACT CLAUSESSOLICITATION/CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/COSTS

DESCRIPTION/SPECS./WORK STATEMENT

PACKAGING AND MARKING

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

CONTRACT ADMINISTRATION DATA

SPECIAL CONTRACT REQUIREMENTS

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

OFFER (Must be fully completed by offeror)

12. In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the set opposite each item, delivered 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)

14. ACKNOWLEDGMENT OF AMENDMENTS

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

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

DATEAMENDMENT NO.AMENDMENT 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

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS

DIFFERENT FROM ABOVE - ENTER SUCH

ADDRESS IN SCHEDULE.

17. SIGNATURE 18. OFFER DATE

AWARD (To be completed by Government)

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

22. AUTHORITY FOR USING OTHER THAN FULL OPEN COMPETITION:

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

24. ADMINISTERED BY (If other than Item 7)

26. NAME OF CONTRACTING OFFICER (Type or print)

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

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

(4 copies unless otherwise specified)

25. PAYMENT WILL BE MADE BY

27. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

28. AWARD DATE

CODE

ITEM

STANDARD FORM 33 (REV,. 9-97)

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

SEALED BID (IFB)

NEGOTIATED (RFP)

(Hour) (Date)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

TIB-2019-RFP-0005

Part I – The Schedule

Section B - Supplies or Services and Prices/Costs

B.1 BACKGROUND

The object of this contract is to provide the Federal Retirement Thrift Investment Board (Agency) with a means of establishing life annuities for eligible participants and beneficiaries of the Thrift Savings Plan (TSP). The Federal Employees' Retirement System Act of 1986, Pub. L. No. 99-335, 101 Stat. 514 (1986), as amended, 5 U.S.C. § 8434 (1996), sets forth five annuity methods that are required to be made available to eligible TSP participants and beneficiaries. Section C of this document defines various annuity options to be offered within the five required annuity methods.

B.2 CONTRACTOR ANNUITY PAYMENT RATE

(a) Pricing of this contract is shown below in terms of an "interest-adjusted monthly annuity payment formula" which is described at B.3 of this document. The Contractor annuity payment rate is a scaling factor, which shall be applied to the then-current interest-adjusted tabular monthly annuity payments for every annuity purchased under the terms of this contract.

(b) The Contractor annuity payment rate shown below shall be applicable to the interest-adjusted tabular monthly annuity payment rates per $1,000 of single premium as described at Clauses B.3, B.4, C.3, and in the worksheet at Section J, Attachment J.3. The amount of monthly benefit paid by the Contractor to the Thrift Savings Plan annuitants shall be the amount of the tabular monthly annuity payments as determined at Clause B.4(b) multiplied by the following Contractor Annuity Payment Rate expressed to three decimal places (e.g., 1.011):

Contractor Annuity Payment Rate1 _______

The results calculated by use of this rate will be rounded to the nearest cent and adjusted for changes in the interest rate index as described at B.3.

1Rate to be provided as part of offer.

(c) The Contractor Rate shown above shall be applicable to the entire term of this contract, including the option period. (See Section F.2.)

B.3 INTEREST-ADJUSTED MONTHLY ANNUITY PAYMENT FORMULA

(a) The interest-adjusted monthly annuity payment formula is designed to recognize the impact of the following factors on the amount of the monthly annuity payments to be made by the Contractor: (i) the annuity option chosen at purchase; (ii) the age at purchase of the individual annuitant (and of the joint life where appropriate); (iii) the Contractor annuity payment rate; and (iv) changes in the interest rate index during the term of the contract. The exact method of calculation of each of the factors referred to in the formula is described at B.4. of this document. Selected values of the factors are given in Section J, see Attachment J.2.

(b) Definitions:

iindex = The value of the interest rate index for the current month.

istart = The initial value of the interest rate index (5%).

IAF (x, y, option)= The interest adjustment factor, a scaling factor based on the age of the annuitant(s) (x,y) and the annuity option, which adjusts for changes in the interest rate index.

P (x, y, option) = The tabular monthly annuity payment per $1,000 of single premium based on the age of the annuitant(s) and the annuity option, calculated based on the initial value (5%) of the interest rate index.

P' (x, y, option) = The Contractor monthly annuity payment per $1,000 of single premium based on the age of the annuitant(s), the annuity option and the Contractor Annuity Payment Rate, calculated based on the initial value (5%) of the interest rate index.

FB = The fund balance which will be used to purchase a single premium immediate annuity from the Contractor.

(c) Interest-Adjusted Monthly Annuity Payment Formula

The interest-adjusted monthly annuity payment will be calculated as follows:

Step 1: P(x, y, option) * Contractor annuity payment rate

= P' (x, y, option)

The result appears in line 7 of the worksheet in Section J, Attachment 3, and is rounded to the nearest one cent.

Step 2: P' (x, y, option) * FB/1000

= Monthly annuity payment before interest adjustment

The result appears in line 8 of the worksheet and is rounded to the nearest one cent.

Step 3: (Result of Step 2) * [1 + (100 * iindex - 100 * istart) * IAF (x, y, option)]

= Interest-adjusted monthly annuity payment

The result appears in line 15 of the worksheet and is rounded to the nearest one cent. Interim rounding to three decimal places will be used as shown in lines 11, 12, and 13 of the worksheet.

Line 14 will be rounded to the nearest one cent.

B.4 DETAILED CALCULATION OF TABULAR FACTORS

(a) Interest Rate Index - iindex

(1) The interest rate index is an eight-week moving average of daily U.S. treasury yield curve rates for a 10-year maturity plus an additional 0.45% provided by the vendor. Daily treasury yield curve rates are published on the U.S. Department of the Treasury website, www.treasury.gov. The index is the average of the daily treasury yield curve rate for a 10-year maturity for the eight weeks ending on the next to the last Friday of the month prior to the month in which the annuities will be purchased. The interest rate index is rounded to the nearest one-eighth of one percent. The additional rate percent increase is added to the eight week average after rounding.

http://www.treasury.gov/

(2) As an example of the preceding paragraph and adding an additional percentage load of 0.45%, annuities purchased in the month of October 2018 would be based on the value of the interest rate index determined in September 2018, which would be calculated from the weekly average rates from July 30, 2018, through September 21, 2018. The rates for those weeks were 2.974%, 2.936%, 2.874%, 2.826%, 2.868%, 2.905%, 2.970%, and 3.052%, and the average of these rates was 2.926%. Rounding to the nearest one-eighth of one percent produces an interest rate of 2.875% and adding the 0.45% load yields a final interest rate index of 3.325%. All of the tabular monthly annuity payment rates have been calculated using an initial index rate of 5%.

(b) Tabular Monthly Annuity Payments - P (x, y, option)

(1) As discussed in Section C, "Statement of Work," the tabular monthly annuity payments are based on the following assumptions: (i) an interest rate based on an eight-week moving average of daily U.S. treasury yield curve rates for a 10-year maturity plus the additional 0.45%; and, (ii) the use of the 2012 Individual Annuitant Mortality Table, with a 10% load for males, based on 55% females and 45% males, and fully generational Scale G2 from 2012. There is no specific recognition of expenses. The blended values of the 2012 Individual Annuitant Mortality Table, with a 10% load for males, are presented at Section J, Attachment J.2, Table J.2.4. As noted at B.4.a, the interest rate index was set at 5% for the calculation of these tabular monthly annuity payments.

(2) The actuarial formulas used in calculating the tabular monthly annuity payments are presented below (The notations not defined in the formulas are those conventionally recognized by the Society of Actuaries.). All of these formulas are for single premium immediate annuities with the first payment due exactly one month after purchase of the annuity. These formulas will be used to calculate the tabular monthly annuity payments for all of the ages that are not listed in Section J, Attachment J.2, Tables J.2.1.a and J.2.1.b. Once a symbol or annuity value is defined below, it is so used throughout.

General Formulas:

x = age last birthday of TSP annuitant at purchase date y = age last birthday of joint annuitant at purchase date

N(12) = N + (11/24)Dx x+1 x+1 a (12)

= a + 11 (1 - v

10 10 24

C = ___1____________ = __1_____ 1 + (11/24) * (.02) 1.009167 i* = 1+i - 1

1.02

Option A1 - Single life, life only

= N x _ x+1_

D x

Option A2 - Single life, Ten years certain and life

= N (12)

- N x:10 x+1 x+10+1

Dx a (12) = a (12) + a (12) - a (12) x:10 x 10 x:10

Option A3 - Single life, cash refund ax

= Kx * ax

(Refund)

Where Kx is stated in Section J, Attachment J.2, Table J.2.3.

Option B1 - Single life, life only, 2% increasing ax

= C * a

(2% Incr) x(i*)

Option B2 - Single life, 10 years certain and life, 2% increasing x:10 (2% Incr) x:10 (i*)

Option B3 - Single life, cash refund, 2% increasing

= Kx * a x (2% Incr)(Refund) x (2% Incr)

Where Kx is stated in Table J.2.3.

Option C1 - Joint Life, 100% joint and survivor axy

= N x+1:y+1

Dxy a (12) = a (12) + a (12) - a (12) xy x y xy

Option C2 - Joint life, 50% joint and survivor (50% reduction applies to either survivor) a (12) = .5 a (12) + .5 a (12) xy (50%) x y

Option C3 - Joint life, 100% joint and survivor, cash refund

= K * a xy (Refund) x xy

Option C4 - Joint life, 50% joint and survivor, cash refund xy (50%)(Refund) x xy(50%)

Option D1 - Joint life, 100% joint and survivor, 2% increasing xy (2% Incr) xy(i*)

Option D2 - Joint life, 50% joint and survivor, 2% increasing xy (50%)(2% Incr) xy(50%)(i*)

Option D3 - Joint life, 100% joint and survivor, cash refund, 2% increasing xy(2% Incr)(Refund) x xy(2% Incr)

Option D4 - Joint life, 50% joint and survivor, cash refund, 2% increasing xy(50%)(2% Incr)(Refund) x xy(50%)(2% Incr)

Tabular Monthly Annuity Payment per $1,000 Single Premium

P(x, y, option) = 1000/(12 * a

(c) Interest Adjustment Factors - IAF (x, y, option)

The interest adjustment factors for the given age range and annuity option combinations in Section J, Attachment J.2, Tables J.2.2.a and J.2.2.b, are calculated as follows:

(1) For the central age and/or specified joint life ages in the joint life situations

(see J.2.2), the exact tabular monthly annuity payment was calculated two ways:

(i) using the initial interest rate (i.e., 5%); and (ii) using the initial interest rate plus 1% (i.e., 6%). The interest adjustment factor is:

(6% monthly payment / 5% monthly payment) - 1

(2) The method of calculation of the interest adjustment factors is the same for all annuity options. The approach yields a simple linear interest rate adjustment formula.

(3) The interest adjustment factors listed in Section J, Attachment J.2, Tables

J.2.2.a and J.2.2.b are complete and are the only adjustment factors that are to be used under the contract.

(d) Worksheet for Annuity Calculation

Attachment 3 of Section J is the worksheet which will be used to calculate actual annuity payments for annuitants and to estimate future annuity payments for potential annuitants. The calculation is the same as specified in subsection B.3.

B.5 Historical Annuity Experiences and Related Information

Historical data for the TSP offered annuity is provided to demonstrate financial information and options elected by participated. The information is found in General and Historical Information about the Thrift Savings Plan (Attachment J.1), TSP Annuity Experience by Year Tables (Attachment J.1.1), and TSP Annuity Options by Gender Tables (Attachment J.1.2).

General information about the Thrift Savings Plan is provided in Financial Statements of the Thrift Savings Plan (Attachment J.4), Summary of the Thrift Savings for Federal Employees (Attachment J.5), and Withdrawing Your Thrift Savings Plan After Leaving Federal Service (Attachment J.6).

(End of Section B)

Section C – Description / Specifications / Work Statement

C.1. INTRODUCTION

The Federal Retirement Thrift Investment Board (Agency) administers the Thrift Savings Plan (TSP) for Federal employees, members of the uniformed services. The TSP was created by the Federal Employees’ Retirement System Act of 1986 (FERSA), codified primarily at 5 U.S.C. § 8351 and §§ 8401-8479. The TSP is a retirement savings and investment plan that offers its participants the same type of savings and tax benefits that are offered under private sector 401(k) plans. The TSP has over 5.6 million participants located in the United States and around the world.

TSP assets are approximately $570 billion.

Effective May 2012, the TSP added a Roth 401(k) feature. This feature allows TSP participants to contribute some or all of their employee contributions to the Roth TSP.

Roth TSP is not a Roth IRA. Unlike Roth IRA, there are not income restrictions on contributions to the Roth TSP feature

C.2. SCOPE OF WORK

The object of this contract is to provide the Federal Retirement Thrift Investment Board with a means of establishing life both traditional and Roth annuities for retired and separated TSP participants. TSP participants may elect to use all or a portion of the proceeds of their TSP account to purchase an annuity. Account balances may consist of traditional contributions and earnings and Roth contributions and earnings (if the qualified distribution rules are met – participant is 59½ or older and have Roth contributions for five years or more). A separate annuity must be purchased for the traditional portion of the account balance. A separate annuity must be purchased for the Roth portion of the account balance. Annuity purchases cannot combine traditional and Roth balances. The traditional portion may include tax-exempt combat pay for participants with military service.

C.3. STATEMENT OF WORK

C.3.1 In order to fulfill the requirements of this contract, the contractor shall provide tax-qualified, single premium, immediate annuities for all eligible participants who elect to purchase an annuity through the TSP. The Agency will purchase annuities as frequently as daily to fulfill participants’ withdrawal requests.

C.3.2 The annuity program must conform to the following requirements:

(a) Annuity Payment Determination. The amount of the monthly payment per

$1,000.00 of single premium shall be an interest-adjusted tabular monthly annuity payment for the specified annuity option times the Contractor Annuity Payment Rate (See B.2). The Contractor agrees to use the interest adjustment and tabular monthly annuity payments applicable to the specified annuity option for all annuities purchased under this program as described in Section B. The worksheet at Section J, Attachment J.3, shall be used to calculate the actual annuity payments.

(1) Tabular Annuity Payment Approach

(i) In order to provide a mechanism for readily adjusting annuity payments for new purchases to reflect changes in market interest rates over the course of the contract, a tabular annuity approach has been developed.

Tabular monthly annuity payments per $1,000.00 of single premium, as specified at Section J, Attachment J.2, Tables J.2.1.a and J.2.1.b, have been developed based on two assumptions: (1) an interest rate index as described below in paragraph c; and (2) a mortality table. Expenses are not explicitly recognized.

(ii) Mortality Table: The mortality table selected is the 2012 Individual

Annuitant Mortality Table, with a 10% load for males, on a unisex basis, assuming 55% females and 45% males for the primary annuitant. In joint life situations, the second life is assumed to be 55% male and 45% female. The 2012 Individual Annuitant Mortality Table, with a 10% load for males, was selected because the Agency determined that it best reflects anticipated mortality under these annuities. The unisex mortality rates used are shown in the table J.2.4 at Section J, Attachment J.2.

Mortality rates are projected on a fully generational basis from 2012 with Scale G2. The tabular monthly annuity payments are designed to produce a reasonable set of relationships between the annuity payments for various annuity options and ages. The tabular monthly payments have been calculated based on an interest rate index assumption of 5% and a measurement date during calendar year 2019. Used in concert with the tables of interest adjustment factors (listed at J.2.2 in Section J, Attachment J.2), the tabular monthly payments will provide monthly annuity payments for a range of interest rates that are comparable to those payments which may be determined by calculating monthly payments based on the current value of the interest index (rather than adjusting the annuity calculated on 5%). Comparable payments are not achieved, however, if the interest rate index differs greatly from the interest rate index assumption, and annuitants are disadvantaged.

Therefore, at the sole discretion of the Agency, and with proper notice from the Agency, tabular monthly payments may be recalculated based on a revised initial interest rate index value that better reflects the current market interest rates. Additionally, at the sole discretion of the Agency, and with proper notice from the Agency, tabular monthly payments may be recalculated to include additional mortality improvement in subsequent calendar years.

(2) Contractor Annuity Payment Rate. The Contractor Annuity Payment Rate is a scaling factor applied to the tabular monthly annuity payments for every annuity purchased under this contract. The Contractor annuity payment rate must be guaranteed for all annuities purchased during the entire term of this contract, the length of which is identified in Section F.

(3) Interest Rate Indexing

(i) Interest rate indexing has been selected to provide the TSP annuitant with an annuity based on current market rates in the month in which the annuity is purchased and to offer the Contractor a reduced interest rate risk. The interest rate index is an eight-week moving average of daily U.S.

treasury yield curve rates for a 10-year maturity plus an additional 0.45% to be provided by the bidder. Daily treasury yield curve rates are published on the U.S. Department of the Treasury website, www.treasury.gov. It was selected because it is a readily available financial index and it correlates with the interest rate instruments used by insurers in their reserve portfolio.

(ii) The interest rate index will be calculated monthly, and an interest adjustment factor will be applied to the Contractor monthly annuity payment to produce the interest adjusted monthly annuity payments according to the formula in B.3.

(iii) Tables of interest adjustment factors are listed at J.2.2. The calculation of the interest adjustment factors is described at B.4(c).

(iv) The monthly calculation of the interest rate index and interest adjusted monthly annuity payments will apply to new annuity purchases only;

payments under previously issued annuities will not be affected.

http://www.treasury.gov/

(b) Annuity Payment Schedule

(1) The Contractor will accept annuity purchases on a daily basis. The annuity purchase date will be the calendar day following the date on which the Contractor receives the money for a participant from the Agency's recordkeeper; annuity purchases shall become effective at 12:01 am on that date. The date of the first payment will be 30 days after the purchase date (or earlier) and payments will occur monthly thereafter.

(2) The participant cannot change the annuity option selected on or after the annuity purchase date.

(c) Minimum Annuity Purchase. The minimum TSP payment amount required for an annuity purchase is $3,500.00. This amount applies to each balance (traditional and Roth) separately. This amount may be increased by the Agency with appropriate notice to the Contractor. No policy fees will be paid under this program.

(d) Annuity Choices

(1) Eligible participants in the TSP have the choice of the single premium immediate annuities listed below. The Contractor must provide annuities for all of these choices:

(i) Single life

(A) Life only

(B) Ten-year certain and life

(C) Life only, cash refund

(ii) Single life, increasing 2% annually

(A) Life only

(B) Ten-year certain and life

(C) Life only, cash refund

(iii) Joint Life

(A) 100% joint and spouse

(B) 50% joint and spouse

(C) 100% joint and spouse, cash refund

(D) 50% joint and spouse, cash refund

(iv) Joint Life, increasing 2% annually

(A) 100% joint and spouse

(B) 50% joint and spouse

(C) 100% joint and spouse, cash refund

(D) 50% joint and spouse, cash refund

(v) Joint Life

(A) 100% joint and other survivor

(B) 50% joint and other survivor

(C) 100% joint and other survivor, cash refund

(D) 50% joint and other survivor, cash refund

(2) For the annuity options offered in group five, the other survivor must have an insurable interest in the annuitant.

(3) Except for the cash refund annuities, all of the tabular monthly annuity payments are calculated using actuarial formulas. The amount of the cash refund on the death of the annuitant is the amount of the accumulated account balance used to purchase the annuity less the sum of all annuity payments made through the date of death. There is no interest accumulation on the cash refund amount after the annuity is purchased. The cash refund tabular monthly annuity payments are calculated by adjusting the monthly annuity payments to reflect the value of the cash refund feature. The cash refund factors are specified at Section J, Attachment 2, Table J.2.3, and reflect published refund annuity rates of several large insurance companies.

(4) The monthly payments of the annuities with increasing annual payments will be adjusted by 2% once each year on the anniversary of the first payment date.

(5) The 50% joint and survivor option reduces to 50% upon the death of either joint no matter which life is the survivor.

(e) Statutory Requirements. Section 8434(d)(2) of Title 5 of the United States Code requires that each annuity be provided in accordance with the provisions of subchapters III and VII of Chapter 84 of Title 5, United States Code. The regulations at 5 C.F.R. Part 1650 govern the election of annuities by TSP participants.

(f) Reporting. The Contractor shall provide the annuitants such reporting as is necessary for them to have evidence of their coverage, to communicate with the Contractor and to complete their tax returns on a timely basis. The Contractor shall also provide management reports to the Agency. Deliverables are described in Section F of this document.

(g) Annuity Application Data. The contractor must be able to receive annuity application data in electronic format. This data will be transmitted as frequently as daily.

(h) Annuity Purchases. Annuity purchases may be processed as frequently as daily, and the funds will be transferred as frequently as daily to the annuity vendor by Electronic Funds Transfer (EFT).

C.4 PHASE-IN/PHASE-OUT

The Contractor agrees to--

(a) Exercise its best efforts and cooperation to effect an orderly and efficient transition during both the phase-in and phase-out phases (if applicable).

(b) The Contractor shall, upon the Contracting Officer's written notice,

(1) furnish phase-in services for up to 90 days after award of this agreement, and

(2) negotiate in good faith a plan with the previous predecessor to determine the nature and extent of phase-in services required. The plan shall be subject to the Contracting Officer's approval. The Contractor shall provide sufficient experienced personnel during the phase-in period to ensure that the services called for by this agreement are maintained at the required level of proficiency.

(c) If the Contractor is not the successful offeror on a follow-on effort to this agreement then the Contractor shall, upon the Contracting Officer's written notice,

(1) furnish phase-out services for up to 90 days after this agreement expires, and

(2) negotiate in good faith a plan with a successor to determine the nature and extent of phase-out services required. The plan shall specify a date for transferring responsibilities of work described in the plan, and shall be subject to the Contracting Officer's approval. The Contractor shall provide sufficient experienced personnel during the phase-out period to ensure that the services called for by this agreement are maintained at the required level of proficiency.

The Contractor shall allow as many personnel as practicable to remain on the job to help the successor maintain the continuity and consistency of the services required by this agreement.

(End of Section C)

Section D - Packaging and Marking

NOT APPLICABLE

Section E - Inspection and Acceptance

FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more 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 these addresses:

https://acquisition.gov/far/ http://farsite.hill.af.mil/

FAR

Clause

Title Date

52.246-4 Inspection of Services Fixed Price AUG 1996

(End of Section E) https://acquisition.gov/far/ http://farsite.hill.af.mil/

Section F – Deliveries or Performance

F.1. PERIOD OF PERFORMANCE.

(a) The period of performance for annuity purchases under this contract is a three year base period from the effective award date of the contract plus two one-year option periods that would be exercised under the authority of Federal Acquisition Regulation 52.217-8 (Option To Extend Services) clause, for a total potential five year performance period. During this period, the Contractor will accept purchases of the various types of annuities for eligible Plan participants as specified in Section C of this master agreement.

(b) The period of performance for administration and reporting for annuities purchased under this master agreement is through the date of the last annuity payment required to be made under the terms of this master agreement. The Contractor shall continue to administer and generate payments in accordance with the provisions of each annuity according to its terms for the life of the annuitant, or joint annuitant, and where appropriate, make a payment to a beneficiary. Services provided after the close of the period for accepting annuity purchases shall conform to those specified in the Master Annuity Contract. In the event of restructuring of reporting provisions by the Agency subsequent to expiration of the contract period for purchases, the Contractor will comply with such procedures, provided that it has been consulted prior to their institution and further provided that they do not involve material additional costs to the Contractor.

(c) The phase-in services shall be concurrent during the first 90 days of contract performance of the base period. If the Contractor is not the successful offeror on a follow-on effort to this agreement, then phase-out services may occur for up to 90 days after this agreement expires.

F.2. OPTION PERIOD

(a) This contract has provision for two one-year option periods that require continued

Contractor performance with respect to the acceptance of annuity purchases subsequent to expiration of the base contract identified in F.1, above. Options are unilaterally exercised by the Contracting Officer via a formal modification to the master agreement.

(b) In order for the Contracting Officer to exercise the option, he or she must give written notice to the Contractor of the Agency's intention to exercise the option at least thirty days prior to the expiration date of the master agreement. In the event that the Agency exercises the option, all terms and conditions of this master agreement shall remain unchanged.

F.3. PERIODIC REPORTS

The Contractor will provide to the Agency such reports as are necessary for the Agency to monitor the performance of the Contractor and to compile financial information and experience statistics on the annuity program. There will be no separate payment to the Contractor for such reports by either the Agency or the annuitants. The only payments to the Contractor will be the single premiums for the annuities themselves. Contractor reporting expenses should be considered a cost of issuing the annuities.

F.4 REPORTING REQUIREMENTS

During the period of performance for administration of annuities as described in F.l, and F.2 (if exercised), the Contractor is required to furnish various reports (also see Attachment J.7) to the Agency and to the annuitant or beneficiary thereof. The following reports are a requirement of this contract:

(a) The following shall be provided to the annuitant:

(1) A certificate (to be issued no later than the first payment date) describing the purchased annuity option. The certificate shall include the Group Annuity Contract number, the Certificate number, the name(s) and date(s) of birth of the annuitant (and joint annuitant where appropriate), the amount of the initial monthly payment, and the first payment date.

(2) Instructions on how to communicate with the Contractor concerning administrative items such as changes of address, beneficiary designations, and Federal income tax withholding.

(3) An annual tax form for use by the annuitant in completing his or her tax return.

This form shall conform to the reporting requirements of the Internal Revenue Service.

(4) Annual information to advise annuitants and survivors on changes of payment amount if an increasing payment or 50% survivor option was elected.

(b) The following reports shall be provided to the Agency for the purpose of reconciling annuity purchases with disbursements from the Plan, producing statistics regarding the annuity program, supporting the Agency's confirmation of annuity calculations, and the collection of mortality experience.

(1) A monthly summary of the annuity purchases made each month. This report will include a breakdown of the total number of annuity purchases by annuity option and a breakdown of the total amount of single premiums by annuity option.

(2) A monthly detailed listing of each annuity purchase including the annuitant's name, SSN, address, sex, attained age at date of purchase, the attained age of the joint annuitant at purchase (where appropriate), the date of purchase, the amount of single premium, the annuity option selected, the amount of the initial monthly benefit and the initial payment date.

(3) A monthly detailed listing of changes made to annuities or in the status of annuitants such as:

(i) the death of the annuitant or joint annuitant;

(ii) CPI adjustments; corrections of annuities incorrectly issued or reported; and,

(iii) adjustments after the fact to annuity purchases (as in the case of Agency error in the purchase of the annuity).

The report will include the type of change/transaction, the date of the transaction and the effective date of the transaction, as well as identifying information regarding the annuitant and any other information required in order to update the record of the annuity to reflect the change.

(4) An annual summary of the annuity purchases made during the year. This report will include a breakdown of the total number of annuity purchases by annuity option and a breakdown of the total amount of single premiums by annuity option.

(5) An annual detailed listing of all annuities purchased under this contract or previous contracts, including the annuitant's name, SSN, address, sex, attained age at date of purchase; the attained age of the joint annuitant at purchase (where appropriate); the survivorship status of the annuitant(s) and the effective date(s); the date of purchase; the amount of single premium; the annuity option selected; the current amount of the monthly benefit; and the initial payment date.

Annuitants whose benefits have been reported as terminated in the previous annual report may be omitted from the current annual listing. The Agency prefers that this detailed listing be reported by way of electronic media.

(6) An annual detailed Auditors SOC report.

(End of Section F)

Section G – Contract Administration Data

G.1 POINTS OF CONTACT.

Contract Officer Name: TBD Organization/Office Symbol: FRTIB-OCFO Phone No.: TBD E-Mail Address: TBD

NOTE: Responsibility for contracting activities rests solely with the Agency Contracting Officer. No conversation, recommendations, or direction, whether given directly by, or implied by Agency personnel, that will affect the scope, schedule, or price of this contract, shall be acted upon by the contractor unless specifically approved by the Agency Contracting Officer.

The Federal Retirement Thrift Investment Board (the Board) is a Government agency operating on non-appropriated funds whose mission is to act solely in the interests of the Thrift Savings Plan participants and beneficiaries. It is the policy of the Board to fully implement all protest decision rendered by the competent protest venues.

However, the Board’s statutorily imposed fiduciary responsibilities require that all final determinations regarding the implementation of protest decisions be rendered by the Executive Director of the Board in sole consideration of the best interests of the participants in the Thrift Savings Plan.

G.2. CONTRACTING OFFICER’S REPRESENTATIVE (COR)

G.2.1 The CO hereby designates the below-named individual(s) as the COR:

Contracting Officer Representative Name: TBD Organization/Office Symbol: FRTIB-OPS Phone No.: TBD E-Mail Address: TBD

G.2.2 The COR is responsible for administering the performance of work under this contract. In no event, however, will any understanding, agreement, modification, change order, or other matter deviating from the terms of this contract be effective or binding mailto:Maria.Nunez-Gaylor@tsp.gov upon the Agency unless formalized by proper contractual documents executed by the Contracting Officer. The COR is responsible for:

(a) Monitoring the Contractor's progress, including the surveillance and assessment of performance, and recommending to the Contracting Officer changes in requirements;

(b) Interpreting the scope of work;

(c) Performing inspections and acceptances required by this contract; and,

(d) Assisting the Contractor in the resolution of technical problems encountered during the performance of the contract.

(e) Assisting the Contractor in obtaining technical and physical access to FRTIB information and FRTIB information systems; and

(f) Assisting in setting up any meetings with FRTIB technical staff

G.2.3 The Contracting Officer is responsible for directing any changes in the terms, conditions, or amounts cited in the contract.

G.2.4. In order for the Contractor to rely upon guidance from the COR, the guidance must:

(a) Be consistent with the description of work set forth in the contract;

(b) Not constitute new assignments of work or a change to the expressed terms, conditions, or specifications incorporated into the contract;

(c) Not constitute a basis for an extension to the period of performance or contract delivery schedule; and,

(d) Not constitute a basis for any increase in the contract cost.

G.2.5 The COR may be changed by the Agency at any time without prior notice to the Contractor. Written notice to the Contractor will be given by the Contracting Officer to effect any change in COR.

G.2.6 If in the opinion of the Contractor, any instruction or direction issued by the COR is not provided for in any of the provisions of the Contract, the Contractor shall not proceed but shall notify the Contracting Officer in writing within five (5) working days after the receipt of any such instruction or direction and shall request the Contracting Officer to modify the contract accordingly. Upon receiving such notification from the Contractor, the Contracting Officer shall issue an appropriate contract modification or advise the Contractor in writing that, in his/her opinion, the technical direction is within scope of this clause and does not constitute a change under the Changes Clause of the contract. The Contractor shall thereupon proceed immediately with the direction given.

G.2.7 A failure of the parties to agree upon the nature of the instruction or direction or upon the contract action to be taken with respect thereto shall be subject to the provisions of the contract clause titled “Disputes."

G.3. DISCLOSURE OF CONTRACT INFORMATION. The Contractor shall not release to anyone outside the Contractor’s organization any unclassified information (e.g., announcement of contract award), pertaining to any part of this contract or any program related to this contract, unless the Contracting Officer has given prior written approval.

Requests for approval shall identify the specific information to be released, the medium to be used, and the purpose of the release. The Contractor shall submit its request to the Contracting Officer (CO) at least ten (10) days before the proposed date of release.

The Contractor agrees to include a similar requirement in each subcontract under this contract. Subcontractors shall submit requests for authorization to release to the CO through the Prime Contractor.

(End of Section G)

Section H – Special Contract Requirements

H.1 CONFIDENTIAL OR NON-PUBLIC INFORMATION

(a) All information received by the Contractor as a result of performance of this contract may be confidential or non-public information. The Contractor and Contractor personnel shall maintain this information in strict confidence and shall not disclose this information, or any information obtained as the result of its performance of this contract, to any person or entity, other than employees or bona-fide Contractors of the FRTIB, without the prior written approval of the Contracting Officer. The Contractor and Contractor personnel shall not disclose this information to any person or entity or otherwise make any improper use of this information during or after the performance period of this contract. The Contractor and Contractor personnel shall maintain this information in strict confidence and shall make no changes to the information except as necessary in the performance of the contract.

The Contractor and Contractor personnel and their successors are prohibited forever from using this information for their personal or business gain, personally or for another, directly or indirectly, without prior written approval of the Agency. This provision/clause, or a provision/clause with an identical effect, shall be placed in any subcontracts.

(b) “Confidential or non-public information,” is defined as information generated by or in the possession of the FRTIB that is commercially valuable, trade secret, market sensitive, proprietary, related to an FRTIB enforcement or examination matter, subject to privilege, protected by the Privacy Act (5 U.S.C. § 552a), or otherwise deemed confidential or non-public by an TIB division director or office head, and is not otherwise available to the public. This definition applies to confidential or non-public information in any form, including documents, electronic mail, computer files, conversations, and audio or video recordings. For purposes of this Agreement, examples of confidential or non-public information include corporate financial data provided to the FRTIB that has not been made public; FRTIB planned or contemplated courses of action regarding FRTIB examinations, investigations, and enforcement actions; and FRTIB personnel information covered by the Privacy Act, 5 U.S.C. § 552a.

H.2 FRTIB PROTEST PROCEDURES

(a) An interested party who files a protest with FRTIB has the option of requesting review and consideration of the protest by either the Contracting Officer (CO) or the Division Chief of Contracting (DCC). The protest must clearly indicate the official to whom it is directed.

(b) If the protest is directed to the CO, a copy of the protest must be sent to the DCC at the same time the protest is filed. The mailing address for the DCC is:

Division Chief of Contracting Office of Chief Financial Officer (OCFO) Federal Retirement Thrift Investment Board (FRTIB) 77 K St. NE, Suite 1000 Washington, DC 20002

(c) Review and consideration of a protest by the DCC is an alternative to review and consideration by the CO.

H.3 SERVICE ORGANIZATIONAL CONTROL (SOC) AUDITS

(a) The Contractor must ensure the existence of a comprehensive and up to date control environment for itself and its subcontractors/partners involved in this contract and make representations to the FRTIB. This representation is made by a SOC report. Contractor must annually perform a SOC 2 Type 2 audit. A registered independent auditing firm in good standing with Public Company Accounting Oversight Board will perform the audit.

(b) The Contractor will provide the:

(1) Auditor’s SOC Report

Auditor’s scope

Description of controls

Testing results and opinion

Any recommendations and any required planned or completed corrective actions;

(2) Contractor Corrective Actions (if applicable)

Corrective action plans with committed delivery dates.

Evidence to support successful resolution of audit recommendations.

H.4 DISASTER RECOVERY AND BUSINESS CONTINUITY PLANS

(a) The contractor (and any supporting subcontractors) shall have a Business Continuity

Management System (BCMS), including Information Technology Disaster Recovery Plans, that meets a business continuity industry professional standard (e.g., ISO 22301, NIST SP 800-34r1, NFPA 1600,) specifying requirements to plan, establish, implement, operate, monitor, exercise and test, review, maintain and continually improve a documented management system to protect against, reduce the likelihood of occurrence, prepare for, respond to, and recover from disruptive incidents when they arise. The contractor’s BCMS shall be appropriate to its needs and meet FRTIB recovery requirements for critical business processes. The contractor shall notify FRTIB as soon as feasible about any disruptive incidents.

(b) The contractor shall execute and participate in an annual Business Continuity

/Disaster Recovery (BC/DR exercise to demonstrate capabilities to meet FRTIB recovery requirements for critical business processes. Exercise scenario planning, evaluation, after-action reporting and etc., shall be coordinated with Contracting Officer Representatives (COR) and applicable representatives from FRTIB.

(c) The contractor shall conduct audits/review, at least every two years to provide information on whether the contractor’s BCMS conforms to: 1) FRTIB requirements and 2) the requirements of the applicable business continuity standards.

H.5 INFORMATION SYSTEM SECURITY

(a) The Contractor shall ensure adequate LAN/Internet, data, information, and system security in accordance with FRTIB policies and standard operating procedures, conditions, laws, and regulations. Any security violations or attempted violations shall be reported to the COR, Contracting Officer, and to the designated ISSO upon discovery and no later than 24 hours of the contractor learning of the violation or attempted violation.

(b) Flowdown of requirements to subcontractors

(1) The Contractor shall incorporate the substance of this clause, its terms and requirements including this paragraph, in all subcontracts under this contract vehicle, and require written subcontractor acknowledgment of same.

(2) Violation by a subcontractor of any provision set forth in this clause will be attributed to the Contractor.

H.6 SECURITY INCIDENT INVESTIGATION

(a) The term “security incident” means an event that has, or could have, resulted in unauthorized access to, loss or damage to FRTIB assets, or sensitive information, or an action that breaches FRTIB security procedures. Even if outside regular business hours, the Contractor shall immediately (within one hour of first becoming aware) notify the Contracting Officer Representative (COR) and simultaneously, the designated Information System Security Officer (ISSO) for the contract of any known or suspected security/privacy incidents, or any unauthorized disclosure of sensitive information, including that contained in system(s) to which the Contractor has access.

(b) To the extent known by the Contractor, the Contractor’s notice to FRTIB will identify the information involved, the circumstances surrounding the incident (including to whom, how, when, and where the FRTIB information/assets were placed at risk or compromised), and any other information that the Contractor considers relevant.

(c) The Contractor shall simultaneously report the incident to the appropriate law enforcement entity(ies) of jurisdiction in instances of theft or break-in or other criminal activity. The Contractor, its employees, and its subcontractors and their employees will cooperate with FRTIB and any law enforcement authority responsible for the investigation and prosecution of any possible criminal law violation(s) associated with any incident. The Contractor shall cooperate with FRTIB in any civil litigation to recover FRTIB information, obtain monetary or other compensation from a third party for damages arising from any incident, or obtain injunctive relief against any third party arising from, or related to the incident.

(d) The FRTIB shall have the right to participate in any investigation relating to a suspected or actual breach and, pursuant to such an investigation, shall have access to any and all related data including but not limited to affected files, systems, briefings, devices (including hard drives), and interim as well as final reports and analyses.

(e) To the extent practicable, the Contractor shall mitigate any harmful effects on individuals whose FRTIB information was accessed or disclosed in a security incident. In the event of a data breach with respect to any FRTIB Sensitive Information processed or maintained by the Contractor or subcontractor under the contract, the Contractor is responsible for consequential damages to be paid to

FRTIB.

(f) Contractor shall bear the losses and expenses (including attorneys’ fees) associated with a data breach, including, without limitation, any costs (1) of providing notices of a data breach to affected individuals and to applicable regulatory bodies and (2) of remedying and otherwise mitigating any potential damage or harm of the incident, including, without limitation, establishing call centers, providing credit monitoring, or credit restoration services.

H.7 PERSONNEL SECURITY

(a) Definitions. As used in this clause— “Cyber incident” means actions taken through the use of computer networks that result in an actual or potentially adverse effect on an information system and/or the information residing therein. “Forensic analysis” means the practice of gathering, retaining, and analyzing computer-related data for investigative purposes in a manner that maintains the integrity of the data.

“Incident” means an occurrence that actually or imminently jeopardizes, without lawful authority, the confidentiality, integrity, or availability of FRTIB’s information or an FRTIB information system; or constitutes a violation or imminent threat of violation of law, security policies, security procedures, or acceptable use policies with respect to FRTIB’s information or an FRTIB information system.

(b) All Contractor staff assigned to work under this Contract shall be citizens or legal permanent residents of the United States.

(c) Contractor shall not allow any of its employees to access Agency information and systems except…