SOLICITATION NOTICE
R -- National Flood Insurance Program, Direct Servicing Agent (DSA)
- Notice Date
- 12/4/2015
- Notice Type
- Presolicitation
- NAICS
- 524292
— Third Party Administration of Insurance and Pension Funds
- Contracting Office
- Department of Homeland Security, Federal Emergency Management Agency, Mitigation Branch, 500 C Street SW, Patriots Plaza -- 5th Floor, Washington, District of Columbia, 20472, United States
- ZIP Code
- 20472
- Solicitation Number
- HSFE60-16-R-0004
- Archive Date
- 1/2/2016
- Point of Contact
- John M. Norway, Phone: 301 447 1020, Marianne McCallum, Phone: 202 646 4623
- E-Mail Address
-
john.norway@fema.dhs.gov, Marianne.McCallum@fema.dhs.gov
(john.norway@fema.dhs.gov, Marianne.McCallum@fema.dhs.gov)
- Small Business Set-Aside
- N/A
- Description
- 1. Please provide FEMA any overall comments and/or feedback which you feel would strengthen the Statement of Objectives (SOO) NFIP requirements 2. Please provide FEMA any weaknesses and/or requirements you think are unattainable and which your company believes that FEMA should reconsider, along with your reasoning as to why this is the case REQUEST FOR INFORMATION NATIONAL FLOOD INSURANCE PROGRAM Direct Servicing Agent 1. BACKGROUND FEMA's Federal Insurance and Mitigation Administration (FIMA) operates the NFIP, which was created by an Act of Congress in 1968. The NFIP makes flood insurance available to residents and businesses of participating communities that commit to sound flood plain management practices. The NFIP sells and administers Standard Flood Insurance Policies in two ways: (1) Through an arrangement with private Write Your Own (WYO) insurance companies (under authority of 44 CFR Section 62.23); and (2) Through a contract with an entity that directly sells and services NFIP policies, the NFIP Direct Servicing Agent (DSA). Since 1983, the Write Your Own (WYO) Program has become the primary vehicle for delivering and servicing flood insurance with participating insurance companies, who write nearly 80% of the NFIP's policies in their own names. The Government bears the underwriting risk for these policies, as well as for the policies issued by the DSA. 2. FIMA SCOPE & MISSION While the WYO companies and the NFIP's contractors - DSA, Marketing, NFIP-IT Systems and Services, etc. - each have separate responsibilities vis-a-vis the NFIP, the success or failure of the NFIP will hinge on the interaction and cooperation of all cohorts working as a team to ensure the smooth, seamless flow of information to all internal and external stakeholders and partners. FEMA must have a comprehensive, coordinated approach to delivering products and services to customers at all levels. A failure by a single entity at any level may lead to program failure. It is the responsibility of all contractors and WYO companies to participate as team members with all others. To this end, FEMA has established Universal Objectives for all contractors, which FIMA would like to see incorporated into responses. 2.1 Universal Objectives 2.1.1. Universal Objective A: Leverage technology, relationships, and mutual interests across the public and private sectors to improve project delivery and effectiveness in order to increase risk awareness, leading to citizens and communities taking mitigation action to substantially reduce risk to life and property and increase the Nation's resilience to natural hazards. 2.1.2 Universal Objective B: Provide a high level of cooperation and integration across all FIMA contractors, ensuring seamless and integrated program delivery. Offer subject matter expertise as required (e.g. business requirements, training development, authors, committees, etc.). 2.1.3 Universal Objective C: Implement sound program management practices to enable reliable and efficient operations, support of FIMA Governance structures, and forward-thinking innovation throughout the NFIP program. 2.1.4 Universal Objective D: Assist with the design, implementation, communication, and/or management of new and revised requirements, processes, and procedures resulting from the Biggert-Waters National Flood Insurance Program Reform Act of 2012 (BW-12), Homeowners Flood Insurance Affordability Act (HFIAA), Presidential Policy Directive-8 (PPD-8), the National Mitigation Framework (NMF), the National Disaster Relief Framework (NDRF), and other statutory and regulatory changes impacting the NFIP program. Promote integration with FIMA, FEMA, DHS, and Other Federal Agencies' programs. 2.1.5 Universal Objective E: Assist with and support the transformation of Customer Experience across the NFIP. 3. PURPOSE The purpose is to obtain contract support for NFIP direct services and to obtain the outcomes described herein to improve FEMA's responsiveness and quality of customer experience to its policyholders; respond effectively to flood events and disasters; and provide efficient and effective process administration and program performance. FEMA requires the continuous review and improvement of existing processes and tools as the environmental, technological, and political considerations impacting the program continue to evolve. 4. PERFORMANCE OBJECTIVES, GOALS, AND OUTCOMES FEMA requires that the proposed solutions comply with all statutes and demonstrate working knowledge of applicable regulations, policies, guidelines, and specifications that affect the NFIP, FIMA, FEMA, and DHS. FEMA has highlighted some of these regulations, policies, guidelines, and specifications that are specific to the NFIP. Solutions must demonstrate innovation, flexibility, subject matter expertise, and increasing efficiencies while delivering increased effectiveness given the government's continuing resource constraints. Details concerning the NFIP and Flood Insurance Processing can be found at http://www.fema.gov/national-flood-insurance-program. 4.1 Performance Objectives 4.1.1 Objective 1 - Deliver quality Direct Service operations in a cost-effective and timely manner • On behalf of the Federal government, provide direct servicing activities including receipt generation, insurance applications underwriting and processing, premium revenue receipt and deposit, policy production and delivery, endorsement processing and delivery, premium adjustments, claims processing, policy cancellation, renewal notice generation and delivery, renewal premium receipt and deposit, agent commission calculation and delivery, and furnishing insurance policy forms and printed materials. • Achieve a marked reduction in the overall cost of direct servicing in each year of the contract. • Coordinate with the NFIP-IT Systems and Services contractor, WYO companies, Windpools and Beach Plans, and other Federal government programs such as FEMA Individual Assistance, SBA and Federal Loan Programs as needed. • Provide a government approved approach for re-inspecting claims. • Provide FEMA online access to all open and closed claims files and reports on claim status and payments made. • Separately account for and timely deposit all funds received by the Contractor as a result of salvage or subrogation rights, or collection. • Establish, manage, and operate an Adjuster Control Office (ACO) and/or Flood Insurance Claims Office (FICO) at disaster sites per FEMA requirements. Operate appropriate field-based technology to support effective adjuster assignments and prompt claims payments. Co-ordinate with the NFIP-IT Systems and Services contractor Flood Recovery Office (FRO). • Ensure adequate adjuster presence within forty-eight hours of COR notification in any given disaster area, paying particular attention to multi-site and multi-disaster conditions. • Provide FEMA a timely assessment of DSA claims exposure • Carry out the policies, operations, standards and reporting for unique requirements such as Severe Repetitive Loss (SRL) policies, Group Flood Insurance Policies (GFIP), loss history appeals, claims re-inspections, Flood Insurance Reform Act (FIRA) of 2004 Section 207, and financial reporting. 4.1.2 Objective 2 - Design and Implement Effective Customer Service Strategies • Deliver robust customer service processes, tools, and reporting that leverage contact center industry best practices, support the unique needs of the NFIP and align with FIMA Customer Experience recommendations. • Support FEMA NFIP Controlled, Claims Appeal, or Uncontrolled correspondence activities that address the needs of NFIP stakeholders. This support consists of: (1) establishing documented procedures for handling all correspondence; (2) fielding correspondence; (3) drafting appropriate responses to correspondence; and (4) maintaining records of all correspondence activity, (5) including automated control and analysis tools as appropriate. Perform these activities within FEMA approved timeframes as noted in the parameters. • Implement, document, and maintain detailed procedures for handling all of the NFIP related correspondence. Obtain FEMA approval for these procedures. Approved procedures will indicate the ability to: effectively control all incoming and outgoing correspondence; perform a high level of quality assurance; and handle all correspondence tasks in a timely manner. • Develop, operate, and maintain an automated control and analysis system for all correspondence received per FEMA timelines and reporting requirements noted in the parameters. 4.1.3 Objective 3 - Provide scalable and cost effective solutions for the processing of claims at normal and surge levels, and for the assumption of WYO company policies • Deliver a reliable, timely, and cost effective strategy for providing the quality control functions of claims processing under normal and surge conditions. • Provide strategies for efficiently and expeditiously assuming WYO policies under different policy assumption levels. • Deliver a reliable, timely and cost effective strategy for providing an appropriate number of ACO/FICO capable disaster teams and backup teams to flood areas as required by FEMA. In particular: o Establish emergency strategies for distributing NFIP informational materials to adjusters and policyholders; o Be capable of deploying FICO back-up team(s) for four or more simultaneous flood events in separate geographic areas. Such teams must be operational within seven calendar days of Contracting Officer's Representative (COR) notice. o If NFIP policies in a flooded area do not warrant opening an FICO, operate and staff to an appropriate level an In-House FICO, which may be coordinated with an ACO. 4.1.4 Objective 4 - Provide secure, government approved Information Technology solutions • Securely contain Personally Identifiable Information (PII) and other sensitive information from unauthorized access and improper use in compliance with FEMA requirements. Improper use includes the use of NFIP data for commercial purposes. • Adhere to OMB Circulars A123 and A-130, and the DHS 4300B "National Security Systems Handbook" January 6, 2009, Section 3.0 Management Controls. • Emergency circumstances that could jeopardize FEMA systems requirements. Review and test the plan per FEMA requirements. • Maintain incident records and system overview documentation per FEMA requirements. 4.1.5 Objective 5 - Provide a laboratory for new ideas that enhance customer experience, product effectiveness, quality, and/or efficiency • Design an organization and governance structure, to include an execution plan, time tables and performance evaluation factors across FEMA and the DSA for generating, capturing, and testing improvement ideas. • Collaborate with the government to enhance customer experience, produce process efficiencies, and improve quality of direct services. • Examples of ideas include but are not limited to: o Dissemination methods or tools that improve the efficiency and quality of communications with the public, lenders and agents. o Product features that leverage new thinking and new technology to improve the customer experience. o Process or supporting technology redesign that delivers greater efficiency of service to agents, policyholders and the Government. o Changes that would bring operations in line with industry best practices. o Develop procedures for single adjuster handling of flood/wind storm damage. 4.1.6 Objective 6 - Design, implement, and provide metric reporting to continuously improve customer experience • Deliver meaningful Customer Experience reporting metrics such that quality, effectiveness, and efficiency of the customer experience can be assessed. Customer Experience includes service, product features and brand image. • Deliver continuous improvement in customer experience that is based on facts derived from Customer Experience reporting and other applicable sources. 5. PARAMETERS 5.1 Severe Repetitive Loss: Service the Severe Repetitive Loss (SRL) policies and support the following in particular to SRL policies: • Send notification letters to policyholders, agents, and lenders once the NFIP-IT Systems and Services contractor has identified a policy as an SRL property. Update the SRL database accordingly. • Operate the Special Direct Facility (SDF). The SDF sends pre-renewal letters to the SRL policyholders informing them of the special renewal process. • Re-underwrite all new SRL polices underwritten by the DSA with respect to rates for correct premium charges, zone information, loss history and any policy-zone grandfathering information. Coordinate with the NFIP-IT Systems and Services contractor for SRL file updating. Provide audit trail that the policy has been re-underwritten. • Provide information to the insured and their agent on how to appeal an SRL designation and in the event of an appeal, follow established NFIP appeal procedures. • FEMA's NFIP-IT Systems and Services Contractor maintains a historical file of all designated Repetitive Loss properties. Send all property information and updates to these SRL policy records to the historical file when a property loses its SRL-designation. Maintain all information on SRL properties and categorize this information as required by FEMA. • Provide status reporting that details re-underwritten SRL policies and reviews the SRL book of business per FEMA requirements. • Process SRL designation appeals with FIMA and the policyholder using FIMA-approved letters and procedures. • Coordinate with FEMA on necessary policy actions for FEMA-approved mitigation project buy-outs or demolition of SRL properties. 5.2 Group Flood Insurance Policies: Service GFIP and support the following objectives in particular for GFIP: • GFIP are unique because coverage can be used for buildings or contents. • Coordinate with FIMA and the States regarding policy and policyholder information, issuance of Certificates of Flood Insurance and mandatory purchase requirement instructions. 5.3 Loss History Appeals: Service Loss History Appeals: • Process, maintain and report from a repository of all Loss History Appeals per FEMA requirements. • Update the SRL database, Transaction Record Reporting and Processing (TRRP) database and policy records accordingly. 5.4. Flood Insurance Reform Act of 2004: The parameters for FIRA 2004: • Manage communication and produce reporting of agency compliance with flood insurance training requirements. • Recommend ways to improve DSA agent and agency participation in training "refreshers", advanced training or other training as deemed appropriate by the DSA. 5.5 Financial Management: In particular for Financial Management and Reporting: • Be fully versed in the requirements of and in compliance with all audits, operation reviews and contract surveillance activities. • Safeguard, log then timely deposit all received funds into a Treasury General Account. • Provide detailed deposit accounting per Generally Accepted Accounting Principles (GAAP). • Establish internal controls within 90 business days of contract award, approved by FEMA. • Operate a comprehensive financial control system for NFIP business that conforms to standards set forth by the following: o [A] Plan to Maintain Financial Control Plan for Business Written Under the WYO Program; o WYO Accounting Procedures Manual; o Chief Financial Officers Act of 1990; and o U.S. Government Accountability Office. • Aggressively collect and repay debts due the United States Government per the Debt Collection Act of 1982 (31 U.S.C. 3701 et seq.). • Prepare reporting such as Schedule 9 Accounts Receivable Statements, FEMA fiscal year-end statements and supporting schedules per FEMA requirements. 5.6 Correspondence: Handle all correspondence in accordance with the following timelines and reporting requirements: • Controlled correspondence is considered VIP (congressional), White House, and DHS correspondence. Controlled correspondence is processed by FEMA's IQ system. Only select FEMA personnel have access to the IQ system, and currently all controlled correspondence status reporting is conducted through the FEMA IQ system. FEMA's Risk Insurance Division's SharePoint Correspondence Tracker application supports controlled correspondence processes, provides templates and also tracks status that is reconciled with FEMA's IQ system on a regular basis. • Uncontrolled correspondence (UCC) is considered General correspondence. General correspondence is received by postal mail, and hard copies are scanned into SharePoint. Email correspondence is also classified as uncontrolled correspondence. Uncontrolled correspondence is not handled by the IQ system, however RID's SharePoint Correspondence Tracker supports UCC workflows and reporting to assess workloads and performance by federal and contracted support personnel. • The following DHS mandated performance timelines apply to Controlled Correspondence: o Interim response dispatched by Day 4 (business days), if a final cannot be completed by day 10. o Final response dispatched by Day 10 (business days) if not using an Interim and for all White House/DHS correspondence. o Final Response dispatched by Day 30 (calendar days) if an Interim was issued. • FIMA currently has additional correspondence requirements to support DHS mandates and other functional needs: o All Types of Concern and correspondence assignment occurs at the same time and are tracked o Interims are dispatched quickly (within 4 days if final cannot be completed in 10) o Two levels of documented concurrence must be attained ahead of the Division Director Review of Controlled and UCC Claims correspondence o Measurable and reportable parameters should include: Days with FEMA and Days with the Contractor o Basic Correspondence Report numbers: Number of New Correspondence within a month, broken down by Type of Correspondence and Number of Closed Correspondence within a month, broken down by Type of Correspondence 6. CONSTRAINTS • Provide all production IT systems in a Government Owned, Government Operated data center; the website for the National Information Technology Center (NITC) is: http://www.ocio.usda.gov/about-ocio/data-center-operations-dco. • To enable FEMA online access to DSA data, operate and maintain applicable Government Furnished Equipment (GFE), including a high-speed connection to the FEMA Local Area Network (LAN) and Wide Area Network (WAN) to enable FEMA online access to DSA data. • Perform back-ups of all files created or changed on as deemed appropriate for the level of risk posed by data loss • Meet business continuity objectives as described in the DHS 4300A Sensitive Systems Handbook for the long-term secure data storage of magnetic and optical media. The storage facility shall have the capability of delivering the backed-up system to a pre-selected backup or alternate processing site within 24 hour notice. Restricted access to the back-up site shall be fully detailed in the Security Plan and be part of the Security Review. • NFIP claim adjusters are provided through a distinct and separate contract. Fees and expenses of the adjusting companies should be paid promptly, in conformance with the NFIP Adjuster Fee Schedule. All such payments are made from the FEMA-provided Letter of Credit (LOC). 7. APPLICABLE DOCUMENTS The following is a partial list of guidance, regulations, documents and offices related to the National Flood Insurance Program: • Regulations governing the National Flood Insurance Program set forth in Title 44 of the Code of Federal Regulations, Chapter I, Subchapter B, commencing at part 59. • Plan to Maintain Financial Control for Business Written Under the Write Your Own Program (the "Financial Control Plan"), 44 CFR, Part 62, Appendix B. (The authority for the Write Your Own (WYO) Program as set forth in 44 CFR Parts 61 and 62, Sections 61.13 and 62.63.) • Flood Insurance Manual • NFIP Adjuster Claims Manual • Standard Flood Insurance Policy (SFIP) Forms • Federal Insurance and Mitigating Administration (FIMA) • WYO Transaction Record Reporting and Processing (TRRP) Plan • Applicable NFIP statutes and regulations • Applicable FEMA-NFIP bulletins • Debt Collection Act of 1982 (31 U.S.C. 3701 et seq.) • Flood Insurance Reform Act of 2004 • Flood Insurance Claims Office (FICO) • Flood Response Office (FRO) • Adjuster Control Office (ACO) • NFIP Adjuster Fee Schedule • OMB Circulars A123 and A130 • DHS 4300B "National Security Systems Handbooks" January 6, 2009, Section 3.0 Management Controls • DHS 43300A Sensitive Systems Handbook • Severe Repetitive Loss FIMA approved letters/templates and procedures • [A] Plan to Maintain Financial Control Plan for Business Written Under the WYO Program; • WYO Accounting Procedures Manual; • Chief Financial Officers Act of 1990; and • U.S. Government Accountability Office • Debt Collection Act of 1982 (31 U.S.C. 3701 et seq.) • Generally Accepted Accounting Principles (GAAP) • Biggert-Waters Flood Insurance Reform Act of 2012 • Homeowners Flood Insurance Affordability Act (HFIAA) • Individual State Departments of Insurance training regulations
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