RFP: Financial Examination Services Pre-Qualification

The Michigan Department of Insurance and Financial Services is requesting proposals for a pre-qualified pool of financial examination and analysis contractors under RFP 26-2108, with proposals due September 2, 2026. This is a pre-qualification vehicle intended to establish available contractors rather than a single-award procurement; second-tier RFPs will issue to pre-qualified contractors with approximately three weeks to submit project-specific proposals.

The scope is comprehensive financial examination and analytical review of approximately 1,400 Michigan-based insurance companies—roughly 130 domestic entities plus potential out-of-state assignments (approximately 5 per five-year period)—in accordance with National Association of Insurance Commissioners guidelines. Contractors must develop examination plans, conduct solvency assessments, test compliance with Michigan insurance law, and prepare examination reports and management letters. Examinations typically operate on three-year cycles. Work is performed during standard business hours (Monday–Friday, 7:00 a.m. to 6:00 p.m. EST) with project-specific flexibility. If subcontracting more than 20 percent of deliverables, the contractor must award at least 20 percent of subcontracted work to Michigan-based Geographically Disadvantaged Business Enterprises.

The contract term runs from April 1, 2027 through March 31, 2030, with an option for up to three additional two-year renewal periods at the State's sole discretion. Pricing is firm for the entire contract length. Contractors submit hourly rates on Schedule B serving as the basis for second-tier bidding; the State pays monthly lump-sum fixed-price payments based on hours worked and progress review, subject to 25 percent retainage until final acceptance. An administrative fee of 1 percent is due quarterly on all payments. All undisputed invoices are payable within 45 days. Liquidated damages of $5,000 plus $100 per day apply for late or improper completion. Service-level credits of 1 percent of monthly invoices apply for late submissions, unauthorized contact with examined companies, and deadline misses. Unauthorized removal of Key Personnel without State approval may result in credits up to $50,000 per individual. No overtime, holiday pay, or travel expenses are reimbursable. Examination work papers become DIFS property upon completion.

Contractors must provide at least three relevant project experiences from the past five years, maintain comprehensive data privacy and information security safeguards including annual independent third-party audits, comply with prevailing wage where applicable, obtain background checks for staff, and furnish a dedicated Contractor Representative and Key Personnel available during business hours. Schedule C establishes mandatory insurance coverage requirements. The State retains the right to terminate for convenience or for cause, including breach of material obligations, insolvency, or security endangerment.