THE FLORIDA HEALTHY KIDS CORPORATION (Corporation) THIRD PARTY ADMINISTRATOR REQUEST FOR PRELIMINARY PROPOSALS (RFPP)

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1 THE FLORIDA HEALTHY KIDS CORPORATION (Corporation) THIRD PARTY ADMINISTRATOR REQUEST FOR PRELIMINARY PROPOSALS (RFPP) Supplemental Responses to Questions and Answers #1 Posting Date: November 1, 2011 Responses provided below conclude the Question and Answer period provided for in the Request for Preliminary Proposals (RFPP). All pended questions from the October 14, 2011 posting have been addressed below. The Corporation continues to post supplemental data not included in the RFPP in the Procurement Library on the Healthy Kids website at under the Newsroom link for this procurement as it becomes available. Question RFPP Reference Question Posted Response 115 Appendices A-C, Section M.2., page 69 Should the Corporation terminate the contract without cause, will it reimburse the contractor its costs related to project start-up and demobilization? No, unless funds have been appropriated to the Corporation to compensate the Respondent for that specific purpose. suggest other cost effective proposals in its submissions in addition, however. 116 Appendices A-C, Section U.3.b., page 73 Must all cure, dispute resolution, and any other legal recourse available to the parties be exhausted prior to the Corporation drawing against the bond(s)? No. However, the suggest other cost effective methods for consideration by the 120 Appendices A-C, page 74, Section V Please confirm the assumption that any license granted to the Corporation pursuant to this section will also be nontransferable. No, if the Corporation is dissolved, its assets could be transferred to another state agency and so could this licensure, depending upon the Corporation s status. Request for Preliminary Proposals (RFPP) Supplemental Responses ( ) Page 1 of 5

2 121 Appendices A-C, page 74, Section V Please confirm the assumption that only those products and materials (including software and its source code) that are created under the contract as a unique solution for the Corporation will be the property of the Yes; however, the propose alternative arrangements in its submission which may be beneficial to the 122 Appendix E, page 10, Section 4-4 How does the intent of this section as specified in its final sentence impact a contractor s obligation to pay legal costs? Please confirm the assumption that any obligation to pay such costs will arise only after a legal determination in the Corporation s favor. No, in any legal proceeding, the other Party would be responsible for the Corporation s legal fees, without regard to whether or not favor was found for the The suggest alternative contract language in its submission for consideration. 124 Appendix E, page 14, Section 4-16 Please confirm the assumption that any license granted to the Corporation pursuant to this section will also be nontransferable. Please confirm. Also please confirm the assumption that only those products and materials (including software and its source code) that are created under the contract as a unique solution for the Corporation will be the property of the Please see response to Question 120. No, if the Corporation is dissolved, its assets could be transferable to another state agency and so could this licensure. 203 p. 14, Section B.7.1 Can the Respondent provide evidence that they have submitted all materials needed to secure licensure as an insurance plan administrator authorized under Section , Florida Statutes, or as an insurance company or health maintenance organization authorized to do business in Florida at the time of responding to the RFPP? As this is a Request for Preliminary Proposals with negotiations to follow, Respondent must show evidence of either having the appropriate licensure at the time of proposal submission or the submission of their licensure application. However, at the time Request for Preliminary Proposals (RFPP) Supplemental Responses ( ) Page 2 of 5

3 the Corporation begins contract negotiations, Respondent must have secured the appropriate licensure to conduct business in Florida. Such negotiations are expected to be initiated by January p. 8, A.7.1. p. 14, B.7.1, Tab 4 Appendix C, p. 57, C. Would the Corporation change the following requirement in Section A.7.1. of the RFPP and similar requirements in Section B.7.1, Tab 4, of the RFPP and Section C of Appendix C of the RFPP: Respondent must be an insurance company or health maintenance organization currently licensed to do business in Florida, or an insurance plan administrator authorized under Section , Florida Statutes. License must be held at the time of the Respondent s proposal to this RFPP or no later than the proposal due date listed in Section B.2, Calendar of Events. We suggest that the Corporation change these requirements to read as follows: See Response to Question 203. Respondent must (i) be an insurance company or health maintenance organization currently licensed to do business in Florida, or an insurance plan administrator with a valid certificate of authority under Section , Florida Statutes, at the time of the Respondent s proposal to this RFPP or no later than the proposal due date listed in Section B.2, Calendar of Events or (ii) have submitted an application for such certificate that is under consideration by the State of Florida at such time and hold such certificate on or before the day on which Respondent begins providing third party administrator services. The reasons for this suggestion: The period between the proposal or proposal due date and the transition from Request for Preliminary Proposals (RFPP) Supplemental Responses ( ) Page 3 of 5

4 the current to a new Administrator would be sufficient for a Respondent to obtain a valid certificate of authority under Section The results of changing the requirement as suggested would be increased competition and a greater likelihood that the Corporation would (a) lower the cost of service provision, (b) bring innovation to service delivery, and (c) provide flexibility to support future changes to the Corporation s scope of services. The Corporation could eliminate any risk arising out of changing the requirement as suggested by entering into contingent third party administrator contract with a Respondent that has a valid certificate of authority by the proposal due date. 256 p. 29, B.7.1, Tab 7, 2 The RFPP includes the following requirement: Describe how the Respondent proposes to make materials developed for the Corporation available for use by other entities through an appropriate licensing or other written agreement. Would the Corporation clarify the types of entities to which Respondent would make materials developed for the Corporation available and the nature of their use of those materials? Products developed specifically for the Corporation shall be owned by the Corporation, including all of the data, and available for use by the Corporation for other projects. 260 Appendix C, p. 74, V Appendix E, p. 15, 4-16 Would the Corporation clarify that the following sentences only apply to (i) products and services that are not already proprietary and (ii) created by the Respondent in the course of performance of the contract: With respect to any products or services that constitute a work of authorship within the scope of U.S. copyright law, 17 U.S.C. Sections , such work shall be a work for hire as defined in 17 U.S.C. Section 101 and all copyrights in such work for hire shall be owned by FHKC. With respect to any product or Products developed specifically for the Corporation shall be owned by the Corporation, including all of the data. Request for Preliminary Proposals (RFPP) Supplemental Responses ( ) Page 4 of 5

5 services that are subject to United States patent laws, the exclusive rights to such work shall belong to FHKC. Request for Preliminary Proposals (RFPP) Supplemental Responses ( ) Page 5 of 5