Invitation to Bid (ITB) for. Aviation Hull and Liability Insurance. ITB No: H. State of Florida. Department of Management Services

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1 Invitation to Bid (ITB) for Aviation Hull and Liability Insurance State of Florida Department of Management Services ITB ISSUE DATE: JUNE 02, 2015 RESPONSES DUE: JUNE 30, 2015 REFER ALL INQUIRIES TO JILL SODERBERG, ASSOCIATE CATEGORY MANAGER STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES, DIVISION OF STATE PURCHASING 4050 ESPLANADE WAY, SUITE 360 TALLAHASSEE, FL PHONE: FAX:

2 Contents 1 Introduction Objective Definitions Broker Contractor Insurance Policy or Policy Named Insured Insurer or Underwriter Policy Inception Premium Respondent State Purchasing Vendor ITB Process Question Submission Addenda to the ITB Modification or Withdrawal of Response Disclosure of Response Contents Timeline of Events Procurement Officer Addenda to the ITB Public Meetings During the Solicitation Special Accommodations Instructions to Respondents General and Special Instructions On-line solicitation Tool General Information Sourcing Instructions and Training Additional Information Regarding the MFMP Sourcing Tool Who May Respond Qualification Questions Contents of Response Part 1: Company Information Part 2: Experience and Ability Part 3: Past Performance References Part 4: Disputes Part 5: Financial Status Price Sheet Responses Insurance Savings / Rate Reductions...15 ITB Name: Aviation Hull and Liability Insurance Page 2

3 2.4.8 Certifications Upload Redacted Copies, if applicable Upload Attachment M, Preferred Pricing Affidavit Upload Additional Information Evaluation Criteria Basis of Award Identical Evaluations of Responses Rejection of Responses Respondent Confidential Information Contract Formation General and Special Contract Conditions General Contract Requirements Term Special Contract Conditions Compliance with Laws Insurance Requirements Notice of Legal Actions Public Records Intellectual Property Preferred Pricing Affidavit Requirement Employment Verification (E-Verify) Scrutinized Company List Diversity Reporting Business Review Meetings Ethical Business Practices Delays and Complaints Performance and Payment Bonds Commission Reporting MyFloridaMarketPlace (MFMP) Transaction Fee Contract Termination Force Majeure Statement of Work Commodity Codes Named Insureds, Additional Insured, and Waiver of Subrogation Named Insured Additional Insured and Waiver of Subrogation Additions and Deletions Locations of Covered Property Covered Property and Liability Coverage Covered Property...26 ITB Name: Aviation Hull and Liability Insurance Page 3

4 4.4.2 Liability Coverage Broker Responsibilities Basic Responsibilities of the Broker Invoicing and Insurance Premium Payment Claims Settlement and Loss Reporting Reporting Requirements Contractor s State of Florida Web Page Insurance Policy Conditions Underwriting Information Inventory and General Information Pilot Qualifications Aircraft and Equipment Use Additions or Deletions Cancellation/Non-renewal Insurance Policy Insurer Serviceability Historical Loss Information Financial Consequences for Nonperformance Rate and Premium Adjustment Attachments THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK ITB Name: Aviation Hull and Liability Insurance Page 4

5 1 Introduction The State of Florida ( State ), Department of Management Services ( Department ), invites interested Vendors to submit responses in accordance with these solicitation documents for the establishment and account management of aviation hull and liability insurance. The purpose of the ITB is to establish a cost effective insurance policy with a single Broker through an Underwriter for aviation hull and liability insurance for state agencies and universities. This ITB will be administered using the Department s e-procurement system, MyFloridaMarketPlace (MFMP). Information about submitting a response can be found in section 2.2.2, Sourcing Instructions and Training. Vendors interested in submitting a response must comply with all terms and conditions described within. 1.1 Objective The intent of this solicitation is to obtain the most cost effective aviation hull and liability insurance policy for the State, while maximizing the quality and level of service in policy administration. Qualified Vendors must be capable of providing aviation hull and liability insurance in accordance with this ITB and to the satisfaction of the Department. Over the past four years, the Named Insured have spent an average policy premium of $60,248 annually. Premium history is for informational purposes only and should not be construed as representing actual, guaranteed, or minimum premiums under any new insurance policy. Named Insured include state agencies and universities. The Department intends to make a single statewide award. However, the Department reserves the right to award to more than one responsive and responsible Vendor or to reject all responses, as determined to be in the best interest of the State. 1.2 Definitions The definitions listed below apply to this solicitation, in addition to the definitions contained in the General Contract Conditions (PUR 1000), the General Instructions to Respondents (PUR 1001), pertinent definitions contained in section , Florida Statutes, and Rule 60A-1.001, Florida Administrative Code, and those contained in Attachment A, Expiring Policy Broker An insurance intermediary in good standing with the State of Florida that holds current and valid Florida resident or nonresident insurance licenses in the appropriate line of business described in this ITB Contractor - The Broker contracted with as a result of this ITB Insurance Policy or Policy - The contract for insurance that the Contractor must provide to the Named Insured. The parties to the Insurance Policy will be the Department, the Named Insured, the Contractor, and the Insurer Named Insured Those entities listed in section 4 (Statement of Work). ITB Name: Aviation Hull and Liability Insurance Page 5

6 1.2.5 Insurer or Underwriter - The insurance company selected by the Contractor to provide insurance coverage Policy Inception - The beginning date of an Insurance Policy Premium - The amount of money the Named Insured pays the Insurer for insurance Respondent - A Vendor that submits a response to this ITB State Purchasing - The division within the Department responsible for administration of this ITB and the day-to-day administration of the Contract Vendor - A Broker. 1.3 ITB Process The ITB is a method of competitively soliciting a commodity or contractual service pursuant to section (1)(a), F. S. The Department posts an ITB on the Vendor Bid System (VBS) to initiate the process and also posts the ITB in the MFMP Sourcing Tool. Respondents may submit questions in writing to the Procurement Officer via the MFMP Sourcing Tool by the date listed in the Timeline of Events. Responses must be submitted by the deadline listed in the Timeline of Events. The Department will open the responses in a public meeting. Once the Department has evaluated the responses, the Department will post a Notice of Intent to Award on the VBS Question Submission The Department will entertain written questions regarding the solicitation or the procurement process submitted through the MFMP Sourcing Tool for a limited period of time as specified in the Timeline of Events. The purpose of this question period is to clarify the solicitation requirements by providing written binding answers to questions about the solicitation. In order to submit a question, Respondents must be registered in MFMP Sourcing and able to access the Messages tab in the solicitation dashboard. For information about registering with MFMP Sourcing, please see section Sourcing Instructions and Training. The Department will not respond to questions submitted through any other format or medium (telephone calls, s, letters, etc.). Questions submitted via the Messages tab within the MFMP Sourcing Tool must be RECEIVED NO LATER THAN the time and date reflected in the Timeline of Events. Questions shall be officially answered via addenda to this solicitation on the date reflected in the Timeline of Events. The Department shall not be bound by any verbal information or by any written information that is not contained within the solicitation documents or formally noticed and issued by the Department Addenda to the ITB The Department may modify this solicitation by issuing addenda. Addenda, if issued, shall be posted on the VBS and the MFMP Sourcing Tool. Respondents are responsible for checking the VBS and MFMP Sourcing Tool for changes and updates to the solicitation. ITB Name: Aviation Hull and Liability Insurance Page 6

7 1.3.3 Modification or Withdrawal of Response Respondents are responsible for the content and accuracy of their response. Respondents may modify or withdraw their response at any time prior to the response due date in accordance with the Timeline of Events. For instructions on how to modify or withdraw responses, refer to the following link: MFMP Vendor Toolkit. For technical assistance, please MFMP Vendor Help or call (866) Disclosure of Response Contents All documentation produced in response to this solicitation will become the exclusive property of the Department and will not be returned to the Respondent unless it is withdrawn prior to the response opening in accordance with section Timeline of Events The table below contains the Timeline of Events for this solicitation. The dates and times within the Timeline of Events may be subject to change. It is the responsibility of the Respondent to check for any changes to the Timeline. All changes to the Timeline of Events, if any, will be made by issuing addenda to the solicitation. Timeline of Events Solicitation posted in the VBS. Solicitation Opens in MFMP Preview Mode. Event Time (EDT) Event Date 06/02/2015 Last day to register as a new MFMP vendor and join the event before question submission deadline. 2:00 P.M. 06/05/2015 Question Submission Deadline. 2:00 P.M. 06/09/2015 Department will post answers to Respondents questions as an addendum to the solicitation within the MFMP e-procurement sourcing 06/16/2015 system. Respondents May Begin Submitting Responses once the Department has posted the addendum above. 06/16/2015 Last day to register as a new MFMP vendor and join the event. 2:00 P.M. 06/26/2015 Responses Due in MFMP e-procurement sourcing system. 2:00 P.M. 06/30/2015 Response Opening. Non-Mandatory for Respondents 4050 Esplanade Way, Suite 380K Tallahassee, FL Conference Call Information: Call number ; Conference Code: then # 2:01 P.M. 06/30/2015 Anticipated date to post Notice of Intent to Award. 08/11/2015 ITB Name: Aviation Hull and Liability Insurance Page 7

8 Anticipated contract start date A.M. 09/28/ Procurement Officer The person named below is the Procurement Officer issuing this ITB. The Procurement Officer is the sole point of contact for information regarding the ITB from the date of release until the contract award is posted in the Vendor Bid System (VBS). The Procurement Officer is: Jill Soderberg, MBA, FCCM Associate Category Manager, Division of State Purchasing Florida Department of Management Services 4050 Esplanade Way, Suite 360, Tallahassee, FL Phone: Addenda to the ITB The Department may modify any aspect of this ITB by issuing addenda. All addenda issued will be posted in the VBS and within the MFMP Sourcing Tool. It is the Vendor s responsibility to check for any changes to a solicitation prior to submitting a response. 1.7 Public Meetings During the Solicitation The Department may conduct public meetings. Members of the general public, Vendors, and interested persons are invited to attend any public meeting. Anyone attending these meetings is requested, but not obligated, to register his or her attendance in a means provided by the Department at the time and location of the meeting. Each public meeting will be held according to the Timeline of Events, section Special Accommodations Any person requiring a special accommodation due to a disability should contact the Department s Americans with Disabilities Act (ADA) Coordinator at (850) Requests for accommodation for meetings must be made at least five workdays prior to the meeting. A person who is hearing or speech impaired may contact the ADA Coordinator by using the Florida Relay Service at (800) (TTY). THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK ITB Name: Aviation Hull and Liability Insurance Page 8

9 2 Instructions to Respondents 2.1 General and Special Instructions Section 2 contains the General Instructions to Respondents, Special Instructions, information concerning the MFMP Solicitation Tool, and Mandatory Requirements. The General Instructions to Respondents Form PUR 1001 are appended to the ITB as Attachment B. In the event of conflict between the General Instructions and Special Instructions, the Special Instructions shall have priority. Respondents must have a current vendor registration and be active for Sourcing Events within the MFMP Vendor Information Portal at to be eligible to reply to the ITB. The Department will not consider or evaluate responses that are not submitted in the MFMP Sourcing Tool. The Department will not consider late responses. Respondents are responsible for submitting their responses by the date and time specified in section 1.4 of this solicitation. 2.2 On-line solicitation Tool General Information The Department conducts competitive solicitations using the MFMP Sourcing Tool. Respondents shall submit responses electronically at: The VBS is the state s online posting tool for solicitation advertisements and is found at: To join the event in the MFMP Sourcing Tool and post questions related to the solicitation, Respondents must review and accept the agreement to use the MFMP Sourcing Tool (see instructions below) Sourcing Instructions and Training After logging into the MFMP Sourcing Tool, the My Events section lists events the vendor has chosen to Join (i.e., you intend to submit a formal response) Public Events lists those events associated with the commodity codes for which the vendor registered in its Vendor Information Portal (VIP) account, but which the vendor has not yet Joined Joining an event moves the event from Public Events to My Events, allows the vendor to submit questions about the event, and alerts the vendor to any associated updates (e.g., addenda, event edits, etc.) Vendors must join an event to submit a response to the solicitation. To Join an event, vendors must login with their user name and password. ITB Name: Aviation Hull and Liability Insurance Page 9

10 To respond to a solicitation, vendors must review and accept the electronic agreement on the Review and Accept Agreement page by clicking the radio button next to, I accept the terms of this agreement. The Sourcing acceptance acknowledgement agreement is a general agreement that prospective Respondents accept the broad overall requirements of the solicitation as being focused on the good/service sought, and accept the general requirements of how the Department seeks delivery of that good/service. It is a preliminary acknowledgement of the terms and conditions (T & C) of the solicitation. It is not a legally binding agreement that all T&C are accepted as is, without further question, clarification, or negotiations No Respondent is bound to the T&C outlined in the solicitation until the final award occurs When responding to a solicitation, vendors should save work frequently at intervals less than 20 minutes. The MFMP Sourcing Tool automatically times out after 20 minutes of inactivity. Any unsaved information will be lost when the system times out Clicking the Save button within the MFMP Sourcing Tool only saves solicitation responses To transmit responses to the state, Respondents must make a specific choice to do so by selecting the Submit Entire Response button After clicking the Submit Entire Response button, Respondents are responsible to verify and validate any submitted response in the MFMP Sourcing Tool to assure their responses are accurate and complete prior to the solicitation s closing time Respondents should allow sufficient time, prior to the Solicitation event period closing, to address any errors and resubmit revised responses To validate responses, Respondents must take the following actions before the Solicitation period ends: Click the Response History link to confirm that the submitted response is visible, and therefore formally submitted Confirm that a status of Accepted displays next to the submitted response Click on the Reference number of the submitted response to review the submission Check the following elements: Text boxes Is the entire answer viewable? Yes/No questions Are the displayed answers correct? Attachments Did the attachments upload correctly? ITB Name: Aviation Hull and Liability Insurance Page 10

11 2.2.3 Additional Information Regarding the MFMP Sourcing Tool For technical assistance, vendors may contact the MyFloridaMarketPlace (MFMP) customer service desk (CSD) at (866) or by at For additional information regarding vendor online training or to view MFMP Sourcing training documents, click here. Online Training: MFMP Training Materials: Who May Respond To be eligible for award, a Respondent must satisfy the requirements, specifications, terms, and conditions of the solicitation and demonstrate their capability to perform a statewide insurance policy contract. Respondents must hold all licenses and certifications required to provide the services sought in this ITB, and must be in good standing with State insurance regulatory bodies. 2.3 Qualification Questions Respondents must submit a Yes/No response to the following Qualification Questions within MFMP. A Respondent must meet the qualifications identified and certify its compliance with the requirements in the following Qualification Questions in order to be considered responsible and responsive for award. Respondents that answer NO to any of the Qualification Questions are deemed to be nonresponsive Respondents and their responses will not be evaluated. Question 1 Question 2 Question 3 Question 4 Qualification Questions Does Respondent certify that the person submitting the response is authorized to respond to this solicitation on the Broker s behalf? Does Respondent certify that it is not a Discriminatory Vendor or Convicted Vendor, as defined in sections 7 and 8 of the PUR 1001? Does Respondent certify that the assertions contained within section 9 of the PUR 1001 are true as applied to the Respondent? (Respondent s Representation and Authorization) Does Respondent certify that it is not on the Scrutinized Companies with Activities in Sudan List or the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List, established by section , Florida Statutes? ITB Name: Aviation Hull and Liability Insurance Page 11

12 Question 5 Question 6 Question 7 Question 8 Question 9 Qualification Questions (continued) Does Respondent certify that it is not on the Suspended / Complaint Vendor lists? Does the Respondent certify that it will, if awarded, submit to the Department, at least annually, the completed signed Preferred Pricing Affidavit as required by section 3.3.6? Does the Respondent certify that it has read the ITB solicitation and agrees to all Terms and Conditions? Does the Respondent certify that the quote proposed for this ITB was not reserved for quoting in advance of the solicitation advertisement exclusively for a particular Respondent? Does the Respondent certify that it agrees to and satisfies all criteria specified in the solicitation documents? 2.4 Contents of Response Responses must be organized in sections as directed below. Respondents must complete each section entirely or they will be deemed non-responsive. Each of the following Parts of the response must be submitted as a single attachment through MFMP Part 1: Company Information Upload the following documentation for Part 1, Company Information (documents must be submitted as a single attachment): a) Company information: (1) Company name and address(es) (2) Company s principle place of business b) Executive summary of the response (No pricing information should be included in the executive summary.) c) Respondent must download Attachment C, Broker Information Worksheet form, and submit one completed form with the response. This form identifies persons responsible for answering questions about the response and administering the Policy; and, provides information necessary for coordinating coverage under the Policy. d) Company s liability insurance policy (declarations page only) Part 2: Experience and Ability to provide aviation hull and liability insurance placement and account management Upload the following documentation for Part 2, Experience and Ability (documents must be submitted as a single attachment): ITB Name: Aviation Hull and Liability Insurance Page 12

13 a) History and Organizational Chart (1) Brief history of the company (2) Company s organizational chart Identify and include resumes of key management personnel and any individuals to be assigned to this insurance policy. Provide copies of professional certifications or designations of principals and employees. b) Insurance License(s) Respondent must provide copies of required insurance license(s) to demonstrate that it possesses the required licenses to secure the insurance described in this ITB. c) E-Verify screenshot Respondent must provide Employment Verification (E-Verify) information required by section 3.3.7, including a screenshot of the E-Verify company information registration page. d) Respondent must download Attachment D, Broker Criteria form, and submit one completed form signed and notarized with the response. e) Respondent must download Attachment E, Broker Experience Certification form, and submit one completed form signed and notarized with the response. Respondent must certify a minimum of 10 years of experience in the placement and account management of the insurance specifically identified in this solicitation and the expiring policy. f) Respondent must download Attachment F, Broker Certification form, and submit one completed form signed and notarized with the response Part 3: Past Performance References Upload the following documentation for Part 3, Past Performance References (documents must be submitted as a single attachment): Respondent must download Attachment G, Past Performance Reference form, and shall provide a minimum of three (3) references from government and/or public entities with whom Respondent has placed aviation hull and liability insurance of size and scope similar to the coverage described in the ITB. Respondent must include at least one (1) reference with whom it has placed aviation hull and liability insurance in the last twenty-four (24) months. Experience may be combined from multiple accounts within that time period. References should be able to confirm Respondent s ability to meet the needs of Named Insureds, and should be able to specify the type of insurance placed or other services provided by the Respondent. Respondent s failure to supply the required documentation may result in disqualification of the response. Respondent may not submit references from the following individuals: a) Persons employed by the Department within the past three years b) Persons currently or formerly employed or supervised by the Respondent or its affiliates c) Board members within the Respondent s organization d) Relatives of any of the above Respondents should complete only section 1 and the contact information for the individual identified as the Reference. After completing the contact information for the individual ITB Name: Aviation Hull and Liability Insurance Page 13

14 identified as the Reference, Respondents must send the form to the reference identified, for completion of responses to the questions on the bottom of the form. References must sign the form. Signed and completed reference forms must be included in the response. References may be contacted by the Department Part 4: Disputes Upload the following documentation for Part 4, Disputes (documents must be submitted as a single attachment): Respondent must identify all contract disputes Respondent (including its affiliates, subcontractors, agents, etc.) has had with any customer, including Named Insureds, within the last five (5) years related to contracts under which Respondent provided commodities or services in the continental United States on an organizational or enterprise level. The term contract disputes means any circumstance involving the performance or non-performance of a contractual obligation that resulted in any of the following actions: a) The institution of a judicial or quasi-judicial action against Respondent as a result of the alleged default or defect in performance; or b) The assessment of fines or liquidated damages under such contracts. For each dispute, Respondent must provide the following information: a) Identify the contract to which the dispute related b) Explain the basis for the dispute c) Explain whether there was a resolution of the dispute and provide a brief summary of the resolution (Additional supporting documentation may be requested, as needed) d) If the dispute is ongoing, identify the status of the dispute Part 5: Financial Status Upload the following documentation for Part 5, Financial Status (documents must be submitted as a single attachment): Respondents must provide the following information regarding its financial status in order to demonstrate that it is financially stable and has the resources necessary to perform the services outlined in this ITB on a statewide basis: a) Financial statements for the last three years, prepared in accordance with Generally Accepted Accounting Principles. b) Attachment H, Underwriter Certification Form, executed by the Underwriter. The Department reserves the right to evaluate the financial status of any or all Respondents before making an award decision Price Sheet Responses Respondents must provide pricing for coverage of all aircraft and equipment listed on the Price Sheet. Premiums must be provided for both single limit liability and guest volunteer settlement ITB Name: Aviation Hull and Liability Insurance Page 14

15 liability for all aircraft listed on the Price Sheet. Hull rates and premiums must be provided for items 34-38, 40-47, 49 and 53. Respondents may not alter the information, specifications, and contents of the Price Sheet. Any alteration of the Price Sheet specifications or contents may result in the Respondent being deemed non-responsive. Attachment I, Price Sheet, is an Excel workbook. All areas requiring a response are highlighted in yellow on the Price Sheet. The Price Sheet is locked and will move automatically to the areas highlighted yellow where pricing is requested. Respondents may provide responses for either policy period 1; policy periods 1 and 2; policy periods 1, 2 and 3; or policy periods 1, 2, 3 and 4. No other combination of policy periods will be accepted. Premium pricing must be based upon the current deductible level as indicated on the Price Sheet. Responses for multiple policy periods shall be discounted for evaluation purposes in accordance with section 2.6 of the ITB. Respondents should not include Terrorism Risk Insurance (TRIA) premium pricing, as this coverage is not required on this policy Price Sheet Submission Upload the following documentation for Price Sheet submission (document must be submitted as a single attachment): Respondents must complete, and may not alter the format of, the Price Sheet, Attachment I, as indicated in section Insurance Savings / Rate Reductions Upload the following documentation for Insurance Savings / Rate Reductions submission Respondents must submit a completed Attachment J, Insurance Savings / Rate Reductions Form, with their response containing the insurance rates and policy offered to the State and a method(s) for the Department to verify the savings information provided. The Savings / Rate Reductions form will not be used to determine award. It will be used only to verify the Savings / Price Reductions being offered. The Savings / Rate Reductions form is to be submitted to the Department electronically using MFMP Certifications Upload the following documentation for Certifications (document(s) must be submitted as a single attachment): To aid in resolution of identical evaluations, as provided under section 2.7, Respondents may provide the following documentation as part of their response, if applicable: a) Certification of Drug-Free Workplace b) Certification of Minority Business c) Certification of Wartime or Service Disabled Veteran ITB Name: Aviation Hull and Liability Insurance Page 15

16 Respondents must submit a completed Attachment K, Certification of Drug-Free Workplace with their response Upload Redacted Copies, if applicable, as directed by section Upload Attachment M, Preferred Pricing Affidavit, as directed by section Upload Additional Information Upload any additional information pertinent to Respondent s submission 2.5 Evaluation Criteria This section describes the methodology the Department will use to award a Contract. The Department will review responses using the criteria listed in section 2.3 Qualification Questions to determine responsiveness. Responses that do not meet all requirements of the solicitation or fail to provide all required information, documents, or materials may be rejected as non-responsive. Respondent s responses, past performance, or current status that do not reflect the capability, integrity, or reliability to fully and in good faith perform the requirements of a Contract may be rejected as non-responsible. At its sole discretion the Department will determine which responses meet the requirements of this solicitation, and which Respondents are responsive and responsible. To be eligible for award, Respondents must provide a price for single limit liability and guest volunteer settlement (GVS) liability premiums for all items 1-53A, with the exception of item 49. Hull rates and premiums must be provided for items 34-38, 40-47, 49, and 53. All areas requiring a response are highlighted in yellow on the Price Sheet. Respondent may provide pricing for either policy period 1; policy periods 1 and 2; policy periods 1, 2 and 3; or policy periods 1, 2, 3 and 4. No other combination of policy periods will be accepted. Should there be more than one identical lowest premium from Respondents that are responsive and responsible Respondents, the Department will first select, from amongst those responses, the premiums for the most policy periods. If there remains still more than one identical lowest response from Respondents that are responsive and responsible, the Department will complete the evaluation consistent with section Basis of Award The Department anticipates awarding to one responsive and responsible Respondent whom the Department determines has provided the lowest scored premium (SP). The SP is the average of all discounted premiums for policy periods with nonzero bids. Where: SP = AVERAGE (PP1+DPP2+DPP3+DPP4) D = Discounted Premium Policy Period 1 = PP1 Policy Period 2 = PP2 ITB Name: Aviation Hull and Liability Insurance Page 16

17 Policy Period 3 = PP3 Policy Period 4 = PP4 PP1 is not discounted. Where: DPP2 = Total Premium PP2/(1+R)^P1 DPP3 = Total Premium PP3/(1+R)^P2 DPP4 = Total Premium PP4/(1+R)^P3 R = Inflation rate plus administrative cost (3.42%) P = Period (1,2,3) 2.7 Identical Evaluations of Responses In the event that the Department s evaluation results in identical evaluations of responses where one or more of the Respondents can be awarded but not all, the Department will select a Respondent based on the criteria identified in Rule 60A-1.011, F.A.C. 2.8 Rejection of Responses Responses that do not meet all requirements, specifications, terms, and conditions of the solicitation or fail to provide all required information, documents, or materials may be rejected as non-responsive. Respondents whose responses, past performance, or current status do not reflect the capability, integrity, or reliability to fully and in good faith perform the requirements of a contract may be rejected as not responsible. The Department reserves the right to determine which responses meet the requirements of this solicitation, and which Respondents are responsive and responsible. 2.9 Respondent Confidential Information The following subsection supplements section 19 of the PUR If Respondent considers any portion of the documents, data or records submitted in response to this solicitation to be confidential, proprietary, trade secret or otherwise not subject to disclosure pursuant to chapter 119, Florida Statutes, the Florida Constitution or other authority, Respondent must provide the Department with a separate redacted copy of its response and briefly describe in writing the grounds for claiming exemption from the public records law, including the specific statutory citation for such exemption. The redacted copy must state the Department s solicitation name and number, and the Respondent s name on the cover, and must clearly state that it is a Redacted Copy. The Redacted Copy must be provided to the Department at the same time Respondent submits its response to the solicitation, and must only redact those portions of the response that are claimed to be confidential, proprietary, or trade secret. Respondent shall be responsible for defending its redaction of portions of its response it claims are confidential, proprietary, trade secret or otherwise not subject to disclosure. Further, Respondent shall protect, defend, and indemnify the Department for any and all claims arising from or relating to Respondent s determination that the redacted portions of its response are confidential, proprietary, trade secret or otherwise not subject to disclosure. If Respondent fails to submit a ITB Name: Aviation Hull and Liability Insurance Page 17

18 Redacted Copy with its response, the Department is authorized to produce all documents, data or records submitted by Respondent in answer to a public records request for these records Contract Formation The Department intends enter into a contract with the awarded Respondent pursuant to section 2.6, Basis of Award. The contract will consist of the terms and conditions listed in this ITB and Attachment L (Draft Contract and Contract Exhibits). No additional documents submitted by a Respondent will be incorporated into the Contract unless they are specifically identified and incorporated by reference in the Contract. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK ITB Name: Aviation Hull and Liability Insurance Page 18

19 3 General and Special Contract Conditions 3.1 General Contract Requirements The General Contract Conditions, PUR 1000, are incorporated by reference and provided via a link below Term The term of the contract will be between one and four years, beginning September 28, 2015, 12:01 a.m., with up to four annual policy periods at the pricing specified in the response and in accordance with the terms and conditions specified in the contract. 3.3 Special Contract Conditions The Special Contract Conditions are provisions that relate directly to the performance of this contract Compliance with Laws, Rules, Codes, Ordinances, and Licensing Requirements The Contractor shall comply with all laws, rules, codes, ordinances, and licensing requirements that are applicable to the conduct of its business, including those of Federal, State, and local agencies having jurisdiction and authority. For example, Chapter 287 F.S., and Rule Chapter 60A of the Florida Administrative Code govern the contract. The Contractor shall comply with Section 274A of the Immigration and Nationality Act, the Americans with Disabilities Act, and all prohibitions against discrimination on the basis of race, religion, sex, creed, national origin, handicap, marital status, or veteran s status. Violation of any laws, rules, codes, ordinances, or licensing requirements shall be grounds for contract termination or nonrenewal of the contract Insurance Requirements This paragraph supersedes section 35, of the PUR During the Contract term, the Contractor at its sole expense provides commercial insurance of such a type and with such terms and limits as may be reasonably associated with the Contract, which, at a minimum, shall be as follows: workers compensation and employer s liability insurance per Florida statutory limits (currently $200,000 per accident, $200,000 per person, and $1,000,000 policy aggregate) covering all employees engaged in any Contract work; commercial general liability coverage on an occurrence basis in the minimum amount of $1,000,000 (defense cost in excess of the limit of liability), naming the State as an additional insured; and automobile liability insurance covering all vehicles, owned or otherwise, used in the Contract work, with minimum combined limits of $1,000,000, including hired and non-owned liability, and $50,000 medical payment. Providing and maintaining adequate insurance coverage is a material obligation of the Contractor and is of the essence of the Contract. The Contract shall not limit the types of insurance Contractor may desire to obtain or be required to obtain by law. The limits of coverage under each policy maintained by the Contractor shall not be interpreted as limiting the ITB Name: Aviation Hull and Liability Insurance Page 19

20 Contractor s liability and obligations under the Contract. All insurance policies shall be through insurers authorized to write policies in Florida Notice of Legal Actions The Contractor shall notify the Department of any legal actions filed against it for a violation of any laws, rules, codes ordinances, or licensing requirements within 30 days of the action being filed. The Contractor shall notify the Department of any legal actions filed against it for a breach of a contract of similar size and scope to this contract within 30 days of the action being filed. Failure to notify the Department of a legal action within 30 days of the action shall be grounds for termination or nonrenewal of the contract Public Records Access to Public Records a) If, under this Contract, the Contractor is providing services, the Department may unilaterally cancel the Contract for refusal by the Contractor to allow access to all public records, including documents, papers, letters, or other material made or received by the Contractor in conjunction with the Contract, unless the records are exempt from s. 24(a) of Art. I of the State Constitution and section (1), Florida Statutes. b) If, under this Contract, the Contractor is providing services and is acting on behalf of a public agency as provided by section (1)(b), Florida Statutes, the Contractor shall: (1) Keep and maintain public records that ordinarily and necessarily would be required by the public agency in order to perform the service. (2) Provide the public with access to public records on the same terms and conditions that the public agency would provide the records and at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes, or as otherwise provided by law. (3) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law. (4) Meet all requirements for retaining public records and transfer, at no cost, to the public agency all public records in possession of the Contractor upon termination of the Contract and destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the public agency in a format that is compatible with the information technology systems of the public agency Protection of Trade Secrets or Other Confidential Information a) If the Contractor considers any portion of materials made or received in the course of performing the Contract ( contract-related materials ) to be trade secret under ITB Name: Aviation Hull and Liability Insurance Page 20

21 section , Florida Statutes, or otherwise confidential under Florida or federal law, the Contractor must clearly designate that portion of the materials as confidential when submitted to the Department. b) If the Department receives a public records request for contract-related materials designated by the Contractor as confidential, the Department will provide only the portions of the contract-related materials not designated as confidential. If the requester asserts a right to examine contract-related materials designated as confidential, the Department will notify the Contractor. The Contractor will be responsible for responding to and resolving all claims for access to contract-related materials it has designated confidential. c) If the Department is served with a request for discovery of contract-related materials designated confidential, the Department will promptly notify the Contractor about the request. The Contractor will be responsible for filing, the appropriate motion or objection in response to the request for discovery. The Department will provide materials designated confidential only if the Contractor fails to take appropriate action, within timeframes established by statute and court rule, to protect the materials designated as confidential from disclosure. d) The Contractor shall protect, defend, and indemnify the Department for claims, costs, fines, and attorney s fees arising from or relating to its designation of contract-related materials as confidential Retention of Records Contractor shall retain sufficient documentation to substantiate claims for payment under the Contract, and all other records made in relation to the Contract, for five (5) years after expiration or termination of the Contract Intellectual Property The Department does not anticipate that any Intellectual Property will be developed as a result of this contract. However, any Intellectual Property developed as a result of this contract will belong to and be the sole property of the state. This provision will survive the termination or expiration of this contract Preferred Pricing Affidavit Requirement The Department will provide the Preferred Pricing Affidavit, for completion by an authorized representative of the Contractor attesting that the Contractor is in compliance with the preferred pricing provision in section 4(b) of the PUR 1000 form. The Contractor agrees to submit to the Department, at least annually, the completed Attachment N, Preferred Pricing Affidavit Employment Verification (E-Verify) Pursuant to State of Florida Executive Order Number , Contractor is required to utilize the U.S. Department of Homeland Security s E-Verify system to verify the employment of all new employees hired by the Contractor during the contract term. Also, Contractor shall include in related subcontracts a requirement that subcontractors performing work or providing services ITB Name: Aviation Hull and Liability Insurance Page 21

22 pursuant to the Contract utilize the E-Verify system to verify employment of all new employees hired by the subcontractor during the Contract term Scrutinized Company List Contractor certifies that it is not listed on either the Scrutinized Companies with Activities in Sudan List or the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List, created pursuant to section , Florida Statutes. Pursuant to subsection (5), Florida Statutes, Contractor agrees the Department may immediately terminate this contract for cause if the Contractor is found to have submitted a false certification or if Contractor is placed on the Scrutinized Companies with Activities in Sudan List or the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List during the term of the Contract Diversity Reporting The State of Florida is committed to supporting its diverse business industry and population through ensuring participation by minority-, women-, wartime-, and service-disabled veteran business enterprises in the economic life of the State. The State of Florida Mentor Protégé Program connects minority-, women-, wartime-, and service-disabled veteran business enterprises with private corporations for business development mentoring. We strongly encourage firms doing business with the State of Florida to consider this initiative. For more information on the Mentor Protégé Program, please contact the Office of Supplier Diversity at (850) or osdhelp@dms.myflorida.com. Upon request, the Contractor shall report to the Department its expenditures with certified and other minority business enterprises. These reports will include the period covered, the name, minority code and Federal Employer Identification Number of each minority vendor utilized during the period, commodities and services provided by the minority business enterprise, and the amount paid to each minority vendor on behalf of each purchasing agency ordering under the terms of this Contract Business Review Meetings The Department reserves the right to schedule business review meetings as frequently as necessary. The Department will provide the format for the agenda. The Contractor shall submit the completed agenda and proposed presentation to the Department for review and acceptance 10 days prior to the meeting. The Contractor shall address the agenda items and any of the Department s additional concerns at the meeting. Failure to comply with this section may result in the Contract being found in default and termination of the Contract by the Department or nonrenewal of the Contract Ethical Business Practices Any Vendor awarded a contract as a result of this ITB shall work in partnership with the Department to ensure a successful and valuable contract, and shall comply with ethical standards required of state employees, contractors, and all parties representing the Contractor. All work performed under this contract will be subject to review by the Department s Inspector General, and any findings suggesting unethical business practices may be cause for termination or cancellation of the contract. ITB Name: Aviation Hull and Liability Insurance Page 22

23 Delays and Complaints Service delays and service complaints will be monitored on a continual basis. Documented inability of the Contractor or Underwriter to perform under the conditions of the insurance policy may result in financial consequences, default proceedings and/or termination Performance and Payment Bonds No Performance or Payment bonds will be required under this Contract Commission Reporting The awarded Respondent will provide the Department with a letter disclosing Respondent s commission under the policy within thirty (30) days of the placement of any policy MyFloridaMarketPlace (MFMP) Transaction Fee Premiums paid toward this policy shall be exempt from the 1% MFMP transaction fee Contract Termination The Department may terminate the Contract if the Contractor: 1) fails to comply with all terms and conditions of this Contract; 2) fails to produce each deliverable within the time specified by the Contract; or, 3) fails to abide by any statutory, regulatory, or licensing requirement. Rule 60A-1.006(3), F.A.C., governs the procedure and consequences for default. The rights and remedies of the Department in this clause are in addition to any other rights and remedies provided by law or under the Contract. Upon receipt of notice of termination, the Contractor shall, unless the notice directs otherwise, immediately discontinue all activities authorized hereunder. The Contractor shall not be entitled to recover any cancellation charges or lost profits. (Reference section 4.13, Financial Consequences) Force Majeure Except for the payment of money due, neither party shall be deemed in breach or default of this Contract in the event that either party fails to perform pursuant to the terms and conditions of the Contract and the failure is caused by, or is in connection with, force majeure. The party suspending performance shall give prompt notice to the other party and shall attempt to cure promptly the cause for such suspension. Upon cessation of the cause for suspension, performance shall resume (or commence) as soon as reasonably practicable, unless otherwise agreed to by the parties. Notwithstanding any other provision of this contract the parties agree that the settlement of strikes, lockouts or other industrial disturbances shall be entirely within the discretion of the particular party involved. For purposes of this Contract, the term "force majeure" shall mean acts or events beyond the control of the parties, including, but not limited to, acts of God, strikes, lockouts, or other industrial disturbances, riots, epidemics, landslides, floods, fires, washouts, arrests and restraints, civil disturbances, explosions, breakage of or accidents to pipe lines, failure of equipment or, compliance with acts, orders, regulations or requests of any federal, state or local governmental authority, whether or not of the same class or kind, reasonably beyond the control of either party and which, by exercise of due diligence, such party is unable to overcome. ITB Name: Aviation Hull and Liability Insurance Page 23