Master Aviation Insurance

The Commonwealth of Kentucky Finance and Administration Cabinet is issuing Request for Bid (RFB) 758 2300000826 for master aviation insurance coverage on behalf of the State Risk & Insurance Services, Department of Aviation, Kentucky State Police, and Department for Natural Resources. The procurement seeks comprehensive aircraft and airport premises liability insurance, medical expense coverage, and physical damage coverage on an all-risks basis for a fleet of 12 scheduled aircraft valued at approximately $8.415 million, along with coverage for temporary substitute aircraft and non-owned aircraft. Required coverage limits include $10,000,000 for liability on scheduled aircraft, temporary substitute aircraft, non-owned aircraft, airport premises, and assumed liability, with physical damage deductibles ranging from $100 to $10,000 depending on aircraft type and motion status. Qualified bidders must hold a Certificate of Authority from Kentucky or qualify as an eligible surplus lines insurer and maintain a minimum A.M. Best rating of B+ throughout the contract term. The initial contract period runs from August 13, 2023 through August 13, 2024, with optional renewal for four additional one-year periods subject to written approval and potential renegotiation. Evaluation will be conducted on a best value basis with price as the sole criterion (100 points), with the lowest bidder receiving maximum points and other bidders scored proportionally. Written questions must be submitted by June 20, 2023 at 10:00 AM ET, and sealed bids are due by June 28, 2023 at 1:30 PM ET. All bidders must register in the Commonwealth eProcurement System and submit electronic bids with detailed pricing on the attached bid quotation forms, including separate line items for liability coverage, scheduled physical damage limits, and the mandatory 1.8% Kentucky surcharge.

The solicitation does not identify any specific set-aside designations; however, reciprocal preferences apply to Kentucky resident bidders against nonresident bidders from states offering similar preferences, and qualified bidders including Kentucky Correctional Industries and nonprofit organizations serving individuals with disabilities receive preferences equal to fifteen to twenty percent of maximum available points. All bidders must comply with a required affidavit confirming non-violation of Kentucky campaign finance laws and may claim resident bidder or qualified bidder status through separate optional affidavits that must be notarized and submitted with their bids. The current incumbent contractor is Starr Indemnity & Liability Company, which administers the existing policy 1000237730 with a current annual premium of $257,323 plus Kentucky tax of $4,631.81; the existing policy includes extensive endorsements, supplementary coverages including search and rescue expenses and trip interruption protection, and claims are reported to Starr Aviation Agency in Atlanta. The Commonwealth's loss history over the five-year period from August 2018 through August 2023 demonstrates minimal claims activity, with only one loss recorded during policy year 2020 involving a gear-up landing incident that resulted in $117,076.11 in total incurred losses. Successful vendors must furnish the original binder within 10 days of award and the original policy within 45 days of the effective coverage date, with pricing guaranteed through the contract expiration date and any subsequent price increases requiring written justification based on industry-wide changes.