Examinations of insurance companies

The South Carolina Department of Insurance (SCDOI) issued a solicitation for comprehensive examination services of insurance companies, health maintenance organizations (HMOs), captive insurance companies, and risk retention groups domiciled in South Carolina. The procurement seeks to establish a pool of qualified firms to conduct financial and market conduct examinations in accordance with National Association of Insurance Commissioners (NAIC) standards. Mandatory qualifications include that the Examiner in Charge must hold a Certified Financial Examiner (CFE) designation with a minimum of five years' experience auditing life insurance companies. Pricing is structured with fixed daily rates ranging from $354 to $554 per day, depending on examiner qualifications and specialization. Key submission requirements included online offer submission with one paper copy, with the original deadline set for June 21, 2022, at 11:00 AM ET, and questions due by May 17, 2022, at 10:00 AM ET. The contract term was initially proposed as five years, consisting of a one-year base period beginning August 16, 2022, with four optional one-year renewal terms through August 15, 2027. Award notification was originally scheduled for August 4, 2022.

The solicitation did not specify specific set-aside designations or restrictions for disadvantaged enterprises. No incumbent vendors were explicitly mentioned in the documentation. The procurement allowed for multiple firms to be awarded contracts, with a strict prohibition on subcontractors - meaning all work must be performed by the firm's existing staff. A mandatory Service Provider Security Assessment Questionnaire was required, focusing on information security safeguards, data handling, encryption protocols, and disaster recovery procedures. While specific award values were not detailed, the solicitation indicated that actual examination needs were unknown and would be contingent on regulatory requirements. Travel reimbursement would follow South Carolina state policy based on NAIC rates. Notably, the original solicitation was subsequently cancelled prior to award, with an updated solicitation (number 5400023891) issued on August 2, 2022, suggesting potential modifications to the original procurement requirements.