Captive Financial Examinations of Insurance Companies

The Michigan Department of Insurance and Financial Services is requesting proposals for a pre-qualification pool of contractors to conduct financial examinations of captive insurance companies licensed in Michigan under RFP 260000002069, with proposals due June 22, 2026, at 5:00 p.m. EST. Service-Disabled Veteran-Owned Businesses qualify for preference consideration under Michigan statute.

The scope establishes a pre-qualification arrangement in which DIFS will build a roster of qualified examiners for future assignment. Contractors must be capable of conducting complete financial examinations or specific testing on captive insurance company financial data, with examination frequency projected at two to six per year over five years covering DIFS's current portfolio of 27 captive insurance companies. Following pre-qualification, DIFS will issue second-tier solicitations to qualified contractors for specific examination assignments, providing approximately three weeks to submit proposals including assignment scope, service descriptions, technical work plans, staffing credentials and experience, and cost breakdowns with hourly rates. Examination staff must have no financial or contractual affiliations with entities being examined. Contract activities must be delivered within five months from examination start; final reports and work papers are due within ten calendar days of completing on-site work. Contractors must use DIFS's approved examination procedures, maintain TeamMate file repository software for work papers, and remain available for testimony and administrative proceedings for up to five years after examination completion. All deliverables must meet Americans with Disabilities Act digital accessibility standards.

The initial contract term runs November 1, 2026, through October 31, 2029, with up to three optional two-year renewals at the State's sole discretion. Pricing is firm for the entire contract term, adjustable only for documented changes in actual contractor costs with mutual agreement. Liquidated damages of $25,000 per individual plus $833.33 per day apply for unauthorized removal of key personnel; $5,000 plus $100 per day apply for late or improper contract completion. Contracts valued at $250,000 or more require State Administrative Board approval. Written questions are due May 29, 2026, with answers posted by June 8, 2026. Bidders must accept the State's standard contract terms as written or submit proposed changes with tracked edits and explanations; failure to do so may result in disqualification. Proposals scoring 80 or more technical points proceed to pricing evaluation under four criteria: Requirements (25 points), Project Plan/Delivery/Reporting (25 points), Organizational Chart/Pricing/Invoicing (25 points), and Vendor Questions Worksheet (25 points).