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REQUEST FOR PROPOSALS FOR
WORKERS’ COMPENSATION
AUDIT SERVICES
ISSUING OFFICE
STATE WORKERS’ INSURANCE FUND
RFP NUMBER SWIF 2012-1
DATE OF ISSUANCE
May 16, 2012
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REQUEST FOR PROPOSALS FOR
WORKERS’ COMPENSATION AUDIT SERVICES RFP #SWIF 2012-1
TABLE OF CONTENTS
CALENDAR OF EVENTS iii
Part I—GENERAL INFORMATION 1.
Part II—PROPOSAL REQUIREMENTS 11.
Part III—CRITERIA FOR SELECTION 19.
Part IV—WORK STATEMENT 23.
APPENDIX A, STANDARD CONTRACT TERMS AND CONDITIONS
APPENDIX B, DOMESTIC WORKFORCE UTILIZATION CERTIFICATION
APPENDIX C, TERRITORY ASSIGNMENTS BY COUNTY
APPENDIX D, POLICY BREAKDOWN BY TERRITORY, BASED UPON
ESTIMATED PREMIUM
APPENDIX E, COST PROPOSAL FORMS
E-1 Territory A
E-2 Territory B
E-3 Territory C
E-4 Territory D Out-of –State
E-5 Territory E Statewide
APPENDIX F, CONTRACT QUALITY COMPARISON
F-1 Audit Quality Review Standards
APPENDIX G, WORKERS’ COMPENSATION AND EMPLOYERS’ LIABILITY
INSURANCE POLICY
APPENDIX H, AUDITORS PER GEOGRAPHIC TERRITORY
APPENDIX I, PROPOSAL COVER SHEET
APPENDIX J, RIGHT TO KNOW (RTKL)
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CALENDAR OF EVENTS
The Commonwealth will make every effort to adhere to the following schedule:
Activity Responsibility Date
Deadline to submit Questions via email to emarrazzo@pa.gov Potential
Offerors
May 25,
2012
Pre-proposal Conference – 100 Lackawanna Ave, Conference
Room B-3, Scranton, Pa. 18505
Issuing
Office/Potential
Offerors
May 29,
2012
10:30a.m.
Answers to Potential Offeror questions posted to the DGS
website (http://www.dgsweb.state.pa.us/RTA/Search.aspx) no
later than this date.
Issuing Office June 5, 2012
Please monitor website for all communications regarding the
RFP.
Potential
Offerors ongoing
Sealed proposal must be received by the Issuing Office at 100
Lackawanna Avenue, 4th
Floor, Scranton, Pa. 18505 Offerors
June 18,
2012 - 1:00
p.m.
PART I
GENERAL INFORMATION
I. 1. Purpose. This request for proposals (RFP) provides to those interested in submitting
proposals for the subject procurement (“Offerors”) sufficient information to enable them to
prepare and submit proposals for the Department of Labor & Industry, State Workers’ Insurance
Fund’s (SWIF) consideration on behalf of the Commonwealth of Pennsylvania
(“Commonwealth”) to satisfy a need for Workers’ Compensation Audit Services.
I. 2. Issuing Office. The Department of Labor & Industry, SWIF (“Issuing Office”) has
issued this RFP on behalf of the Commonwealth. The sole point of contact in the
Commonwealth for this RFP shall be Eileen J. Gydosh Marrazzo, State Workers’ Insurance
Fund, Commonwealth of Pennsylvania, Department of Labor and Industry, 100 Lackawanna
Avenue, 4th
Floor, P.O. Box 5100, Scranton , Pa. 18505-5100; emarrazzo@pa.gov, the Issuing
Officer for this RFP. Please refer all inquiries to the Issuing Officer.
I. 3. Scope. This RFP contains instructions governing the requested proposals, including the
requirements for the information and material to be included; a description of the service to be
provided; requirements which Offerors must meet to be eligible for consideration; general
evaluation criteria; and other requirements specific to this RFP.
I. 4. Problem Statement. In its commitment to fully accomplish its goals and fulfill its
responsibilities to its insured’s, SWIF seeks to procure expert worker’s compensation audit
services as required for both in state and out-of-state policies. Additional detail is provided in
Part IV of this RFP.
I. 5. Type of Contract. It is proposed that if the Issuing Office enters into a contract as a
result of this RFP, it will be a firm MULTIPLE AWARD CONTRACT containing the Standard
Contract Terms and Conditions as shown in Appendix A and available at
http://www.dgs.state.us/dgs/forms/comod/procurementforms/std274sap.doc.
I. 6. The Issuing Office, in its sole discretion, may undertake negotiations with Offerors
whose proposals, in the judgment of the Issuing Office, show them to be qualified, responsible
and capable of performing the Project.
I. 7. Rejection of Proposals. The Issuing Office reserves the right, in its sole and complete
discretion, to reject any proposal received as a result of this RFP.
I. 8. Incurring Costs. The Issuing Office is not liable for any costs the Offeror incurs in
preparation and submission of its proposal, in participating in the RFP process or in anticipation
of award of the contract.
I. 9. Pre-proposal Conference. The Issuing Office will hold a pre-proposal conference as
specified in the Calendar of Events. The purpose of this conference is to provide opportunity for
clarification of the RFP. Offerors should forward all questions to the Issuing Office in
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accordance with Part I, Section I-10 to ensure adequate time for analysis before the Issuing
Office provides an answer. In view of the limited facilities available for the conference,
Offerors should limit their representation to two (2) individuals per Offeror. The pre-proposal
conference is for information only. Any answers furnished during the conference will not be
official until they have been verified in writing by the Issuing Office. All questions and written
answers will be posted on the Department of General Services’ (“DGS”) website
(www.emarketplace.state.pa.us) as an addendum to, and shall become part of, this RFP.
Attendance at the pre-proposal conference is optional.
I. 10. Questions & Answers. If an Offeror has any questions regarding this RFP, the Offeror
must submit the questions by email (with the subject line “RFP #SWIF 2012-1 Question”) to the
Issuing Officer named in Part I, Section I-2 of the RFP. If the Offeror has questions, they must
be submitted via email no later than the date indicated on the Calendar of Events. The Offeror
shall not attempt to contact the Issuing Officer by any other means. The Issuing Officer shall
post the answers to the questions on the DGS website by the date stated on the Calendar of
Events. An Offeror who submits a question after the deadline date for receipt of questions
indicated on the Calendar of Events assumes the risk that its proposal will not be responsive or
competitive because the Commonwealth is not able to respond before the proposal receipt date or
in sufficient time for the Offeror to prepare a responsive or competitive proposal. When
submitted after the deadline date for receipt of questions indicated on the Calendar of Events, the
Issuing Officer may respond to questions of an administrative nature by directing the questioning
Offeror to specific provisions in the RFP. To the extent that the Issuing Office decides to
respond to a non-administrative question after the deadline date for receipt of questions indicated
on the Calendar of Events, the answer must be provided to all Offerors through an addendum.
All questions and responses as posted on the Department of General Services (DGS) website are
considered as an addendum to, and part of, this RFP in accordance with RFP Part I, Section I-10.
Each Offeror shall be responsible to monitor the DGS website for new or revised RFP
information. The Issuing Office shall not be bound by any verbal information nor shall it be
bound by any written information that is not either contained within the RFP or formally issued
as an addendum by the Issuing Office. The Issuing Office does not consider questions to be a
protest of the specifications or of the solicitation. The required protest process for
Commonwealth procurements is described on the DGS website.
I. 11. Addenda to the RFP. If the Issuing Office deems it necessary to revise any part of this
RFP before the proposal response date, the Issuing Office will post an addendum to the DGS
website at http://www.dgsweb.state.pa.us/RTA/Search.aspx. It is the Offeror’s responsibility to
periodically check the website for any new information or addenda to the RFP. Answers to the
questions asked during the Questions & Answers period also will be posted to the website as an
addendum to the RFP.
I. 12. Response Date. To be considered for selection, hard copies of proposals must arrive at
the Issuing Office on or before the time and date specified in the RFP Calendar of Events. The
Issuing Office will not accept proposals via email or facsimile transmission. Offerors who send
proposals by mail or other delivery service should allow sufficient delivery time to ensure timely
receipt of their proposals. If, due to inclement weather, natural disaster, or any other cause, the
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Commonwealth office location to which proposals are to be returned is closed on the proposal
response date, the deadline for submission will be automatically extended until the next
Commonwealth business day on which the office is open, unless the Issuing Office otherwise
notifies Offerors. The hour for submission of proposals shall remain the same. The Issuing
Office will reject, unopened, any late proposals.
I. 13. Proposals. To be considered, Offerors should submit a complete response to this RFP to
the Issuing Office, using the format provided in Part II, providing ten (10) paper copies of the
Technical Submittal and one (1) paper copy of the Cost Submittal and two (2) paper copies of
the Disadvantaged Business Submittal. In addition to the paper copies of the proposal, Offerors
shall submit two complete and exact copies of the entire proposal (Technical, Cost and
Disadvantaged Business Submittals, along with all requested documents) on CD-ROM or Flash
drive in Microsoft Office or Microsoft Office-compatible format. The electronic copy must be a
mirror image of the paper copy and any spreadsheets must be in Microsoft Excel. The Offerors
may not lock or protect any cells or tabs. Offerors should ensure that there is no costing
information in the technical submittal. Offerors should not reiterate technical information in the
cost submittal. The CD or Flash drive should clearly identify the Offeror and include the name
and version number of the virus scanning software that was used to scan the CD or Flash drive
before it was submitted. The Offeror shall make no other distribution of its proposal to any other
Offeror or Commonwealth official or Commonwealth consultant. Each proposal page should be
numbered for ease of reference. An official authorized to bind the Offeror to its provisions must
sign the proposal. If the official signs the Proposal Cover Sheet (Appendix I to this RFP) and the
Proposal Cover Sheet is attached to the Offeror’s proposal, the requirement will be met. For this
RFP, the proposal must remain valid for 120 days taking into consideration time required for
evaluation of proposals and processing of the contract days or until a contract is fully executed.
If the Issuing Office selects the Offeror’s proposal for award, the contents of the selected
Offeror’s proposal will become, except to the extent the contents are changed through Best and
Final Offers or negotiations, contractual obligations.
Each Offeror submitting a proposal specifically waives any right to withdraw or modify it,
except that the Offeror may withdraw its proposal by written notice received at the Issuing
Office’s address for proposal delivery prior to the exact hour and date specified for proposal
receipt. An Offeror or its authorized representative may withdraw its proposal in person prior to
the exact hour and date set for proposal receipt, provided the withdrawing person provides
appropriate identification and signs a receipt for the proposal. An Offeror may modify its
submitted proposal prior to the exact hour and date set for proposal receipt only by submitting a
new sealed proposal or sealed modification which complies with the RFP requirements.
I. 14. Disadvantaged Business Information. The Issuing Office encourages participation by
small disadvantaged businesses as prime contractors, joint ventures and subcontractors/suppliers
and by socially disadvantaged businesses as prime contractors.
Small Disadvantaged Businesses are small businesses that are owned or controlled by a majority
of persons, not limited to members of minority groups, who have been deprived of the
opportunity to develop and maintain a competitive position in the economy because of social
disadvantages. The term includes:
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1. Department of General Services Bureau of Minority and Women Business
Opportunities (BMWBO)-certified minority business enterprises (MBEs) and women
business enterprises (WBEs) that qualify as small businesses; and,
2. United States Small Business Administration certified 8(a) small disadvantaged
business concerns.
Small businesses are businesses in the United States which are independently owned, are not
dominant in their field of operation, employ no more than 100 full-time or full-time equivalent
employees, and earn less than $20 million in gross annual revenues ($25 million in gross annual
revenues for those businesses in the information technology sales or service business).
Socially disadvantaged businesses are businesses in the United States that BMWBO determines
are owned or controlled by a majority of persons, not limited to members of minority groups,
who are subject to racial or ethnic prejudice or cultural bias, but which do not qualify as small
businesses. In order for a business to qualify as “socially disadvantaged,” the offeror must
include in its proposal clear and convincing evidence to establish that the business has personally
suffered racial or ethnic prejudice or cultural bias stemming from the business person’s color,
ethnic origin or gender.
Questions regarding this Program can be directed to:
Department of General Services
Bureau of Minority and Women Business Opportunities
Room 611, North Office Building
Harrisburg, PA 17125
Phone: (717) 783-3119
Fax: (717) 787-7052
Email: gs-bmwbo@state.pa.us
Website: www.dgs.state.pa.us
A database of BMWBO-certified minority- and women-owned businesses can be accessed at
http://www.dgsweb.state.pa.us/mbewbe/VendorSearch.aspx. The federal vendor database can be
accessed at http://www.ccr.gov by clicking on Dynamic Small Business Search (certified
companies are so indicated).
I-15. Information concerning Small Businesses in Enterprise Zones.
The Issuing Office encourages participation by small businesses, whose primary or headquarters
facility is physically located in areas the Commonwealth has identified as Designated Enterprise
Zones, as prime contractors, joint ventures and subcontractors/suppliers.
The definition of headquarters includes, but is not limited to, an office or location that is the
administrative center of a business or enterprise where most of the important functions of the
business are conducted or concentrated and location where employees are conducting the
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business of the company on a regular and routine basis so as to contribute to the economic
development of the geographical area in which the office or business is geographically located.
Small businesses are businesses in the United States which are independently owned, are not
dominant in their field of operation, employ no more than 100 full-time or full-time equivalent
employees, and earn less than $20 million in gross annual revenues ($25 million in gross annual
revenues for those businesses in the information technology sales or service business).
There is no database or directory of small businesses located in Designated Enterprise Zones.
Information on the location of Designated Enterprise Zones can be obtained by contacting:
Aldona M. Kartorie
Center for Community Building
PA Department of Community and Economic Development
4th
Floor, Commonwealth Keystone Building
400 North Street
Harrisburg, PA 17120-0225
Phone: (717) 720-7409
Fax: (717) 787-4088
Email: akartorie@state.pa.us
I. 16. Economy of Preparation. Offerors should prepare proposals simply and economically,
providing a straightforward, concise description of the Offeror’s ability to meet the requirements
of the RFP.
I. 17. Alternate Proposals. The Issuing Office has identified the basic approach to meeting its
requirements, allowing Offerors to be creative and propose their best solution to meeting these
requirements. The Issuing Office will not accept alternate proposals.
I. 18. Discussions for Clarification. Offerors may be required to make an oral or written
clarification of their proposals to the Issuing Office to ensure thorough mutual understanding and
Offeror responsiveness to the solicitation requirements. The Issuing Office will initiate requests
for clarification. Clarifications may occur at any stage of the evaluation and selection process
prior to contract execution.
I. 19. Prime Contractor Responsibilities. The contract will require the selected Offeror to
assume responsibility for all services offered in its proposal whether it produces them itself or by
subcontract. The Issuing Office will consider the selected Offeror to be the sole point of contact
with regard to contractual matters.
I. 20. Proposal Contents.
A. Confidential Information. The Commonwealth is not requesting, and does not
require, confidential proprietary information or trade secrets to be included as part of Offerors’
submissions in order to evaluate proposals submitted in response to this RFP. Accordingly,
except as provided herein, Offerors should not label proposal submissions as confidential or
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proprietary or trade secret protected. Any Offeror who determines that it must divulge such
information as part of its proposal must submit the signed written statement described in
subsection c. below and must additionally provide a redacted version of its proposal, which
removes only the confidential proprietary information and trade secrets, for required public
disclosure purposes.
B. Commonwealth Use. All material submitted with the proposal shall be considered the
property of the Commonwealth of Pennsylvania and may be returned only at the Issuing Office’s
option. The Commonwealth has the right to use any or all ideas not protected by intellectual
property rights that are presented in any proposal regardless of whether the proposal becomes
part of a contract. Notwithstanding any Offeror copyright designations contained on proposals,
the Commonwealth shall have the right to make copies and distribute proposals internally and to
comply with public record or other disclosure requirements under the provisions of any
Commonwealth or United States statute or regulation, or rule or order of any court of competent
jurisdiction.
C. Public Disclosure. After the award of a contract pursuant to this RFP, all proposal
submissions are subject to disclosure in response to a request for public records made under the
Pennsylvania Right-to-Know-Law, 65 P.S. § 67.101, et seq. If a proposal submission contains
confidential proprietary information or trade secrets, a signed written statement to this effect
must be provided with the submission in accordance with 65 P.S. § 67.707(b) for the information
to be considered exempt under 65 P.S. § 67.708(b)(11) from public records requests. Financial
capability information submitted in response to Part II, Section II-7 of this RFP is exempt from
public records disclosure under 65 P.S. § 67.708(b)(26).
D. Best and Final Offers.
1. While not required, the Issuing Office reserves the right to conduct discussions
with Offerors for the purpose of obtaining “best and final offers.” To obtain best
and final offers from Offerors, the Issuing Office may do one or more of the
following, in any combination and order:
a) Schedule oral presentations;
b) Request revised proposals;
c) Conduct a reverse online auction; and
d) Enter into pre-selection negotiations.
2. The following Offerors will not be invited by the Issuing Office to submit a Best
and Final Offer:
a) Those Offerors, which the Issuing Office has determined to be not
responsible or whose proposals the Issuing Office has determined to be
not responsive.
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b) Those Offerors, which the Issuing Office has determined in accordance
with Part III, Section III-5, from the submitted and gathered financial and
other information, do not possess the financial capability, experience or
qualifications to assure good faith performance of the contract.
c) Those Offerors whose score for their technical submittal of the proposal is
less than 70% of the total amount of technical points allotted to the
technical criterion.
The issuing office may further limit participation in the best and final offers process to those
remaining responsible offerors which the Issuing Office has, within its discretion, determined to
be within the top competitive range of responsive proposals.
The Evaluation Criteria found in Part III, Section III-4, shall also be used to evaluate the Best
and Final offers.
Price reductions offered through any reverse online auction shall have no effect upon the
Offeror’s Technical Submittal. Dollar commitments to Disadvantaged Businesses and Enterprise
Zone Small Businesses can be reduced only in the same percentage as the percent reduction in
the total price offered through any reverse online auction or negotiations.
I. 21. News Releases. Offerors shall not issue news releases, Internet postings, advertisements
or any other public communications pertaining to this Project without prior written approval of
the Issuing Office, and then only in coordination with the Issuing Office.
I. 22. Restriction of Contact. From the issue date of this RFP until the Issuing Office selects a
proposal for award, the Issuing Officer is the sole point of contact concerning this RFP. Any
violation of this condition may be cause for the Issuing Office to reject the offending Offeror’s
proposal. If the Issuing Office later discovers that the Offeror has engaged in any violations of
this condition, the Issuing Office may reject the offending Offeror’s proposal or rescind its
contract award. Offerors must agree not to distribute any part of their proposals beyond the
Issuing Office. An Offeror who shares information contained in its proposal with other
Commonwealth personnel and/or competing Offeror personnel may be disqualified.
I. 23. Issuing Office Participation. Offerors shall provide all services, supplies, facilities, and
other support necessary to complete the identified work, except as otherwise provided in this
Part I, Section I-23.
SWIF will provide only audit contact information as outlined in Part IV of this RFP. Offers are
required to provide all services, supplies’ facilities and other support necessary to complete
identified work.
I. 24. Term of Contract. The term of the contract will commence on the Effective Date and
will end three years from the effective date. The Issuing Office retains the right to renew this
contract for two additional one (1) year periods. The decision to renew will be at the Issuing
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Office’s discretion. Rates may be increased by an amount not to exceed 10% after the first three
year term at the mutual agreement of SWIF and the selected Offeror. The Issuing Office will fix
the Effective Date after the contract has been fully executed by the selected Offeror and by the
Commonwealth and all approvals required by Commonwealth contracting procedures have been
obtained. The selected Offeror shall not start the performance of any work prior to the Effective
Date of the contract and the Commonwealth shall not be liable to pay the selected Offeror for
any service or work performed or expenses incurred before the Effective Date of the contract.
I. 25. Offeror’s Representations and Authorizations. By submitting its proposal, each Offeror
understands, represents, and acknowledges that:
A. All of the Offeror’s information and representations in the proposal are material and
important, and the Issuing Office may rely upon the contents of the proposal in awarding the
contract(s). The Commonwealth shall treat any misstatement, omission or misrepresentation as
fraudulent concealment of the true facts relating to the Proposal submission, punishable pursuant
to 18 Pa. C.S. § 4904.
B. The Offeror has arrived at the price(s) and amounts in its proposal independently and
without consultation, communication, or agreement with any other Offeror or potential offeror.
C. The Offeror has not disclosed the price(s), the amount of the proposal, nor the
approximate price(s) or amount(s) of its proposal to any other firm or person who is an Offeror
or potential offeror for this RFP, and the Offeror shall not disclose any of these items on or
before the proposal submission deadline specified in the Calendar of Events of this RFP.
D. The Offeror has not attempted, nor will it attempt, to induce any firm or person to refrain
from submitting a proposal on this contract, or to submit a proposal higher than this proposal, or
to submit any intentionally high or noncompetitive proposal or other form of complementary
proposal.
E. The Offeror makes its proposal in good faith and not pursuant to any agreement or
discussion with, or inducement from, any firm or person to submit a complementary or other
noncompetitive proposal.
F. To the best knowledge of the person signing the proposal for the Offeror, the Offeror, its
affiliates, subsidiaries, officers, directors, and employees are not currently under investigation by
any governmental agency and have not in the last four years been convicted or found liable for
any act prohibited by State or Federal law in any jurisdiction, involving conspiracy or collusion
with respect to bidding or proposing on any public contract, except as the Offeror has disclosed
in its proposal.
G. To the best of the knowledge of the person signing the proposal for the Offeror and
except as the Offeror has otherwise disclosed in its proposal, the Offeror has no outstanding,
delinquent obligations to the Commonwealth including, but not limited to, any state tax liability
not being contested on appeal or other obligation of the Offeror that is owed to the
Commonwealth.
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H. The Offeror is not currently under suspension or debarment by the Commonwealth, any
other state or the federal government, and if the Offeror cannot so certify, then it shall submit
along with its proposal a written explanation of why it cannot make such certification.
I. The Offeror has not made, under separate contract with the Issuing Office, any
recommendations to the Issuing Office concerning the need for the services described in its
proposal or the specifications for the services described in the proposal.
J. Each Offeror, by submitting its proposal, authorizes Commonwealth agencies to release
to the Commonwealth information concerning the Offeror's Pennsylvania taxes, unemployment
compensation and workers’ compensation liabilities.
K. Until the selected Offeror receives a fully executed and approved written contract from
the Issuing Office, there is no legal and valid contract, in law or in equity, and the Offeror shall
not begin to perform.
I. 26. Notification of Selection.
A. Contract Negotiations. The Issuing Office will notify all Offerors in writing of the
Offeror selected for contract negotiations after the Issuing Office has determined, taking into
consideration all of the evaluation factors, the proposal that is the most advantageous to the
Issuing Office.
B. Award. Offerors whose proposals are not selected will be notified when contract
negotiations have been successfully completed and the Issuing Office has received the final
negotiated contract signed by the selected Offeror.
I. 27. Debriefing Conferences. Upon notification of award, Offerors whose proposals were
not selected will be given the opportunity to be debriefed. The Issuing Office will schedule the
debriefing at a mutually agreeable time. The debriefing will not compare the Offeror with other
Offerors, other than the position of the Offeror’s proposal in relation to all other Offeror
proposals. An Offeror’s exercise of the opportunity to be debriefed does not constitute nor toll
the time for filing a protest (See Section I-28 of this RFP).
I. 28. RFP Protest Procedure. The RFP Protest Procedure is on the DGS website at
http://www.dgsweb.state.pa.us/comod/ProtestProcedures.doc. A protest by a party not submitting
a proposal must be filed within seven days after the protesting party knew or should have known
of the facts giving rise to the protest, but no later than the proposal submission deadline specified
in the Calendar of Events of the RFP. Offerors may file a protest within seven days after the
protesting Offeror knew or should have known of the facts giving rise to the protest, but in no
event may an Offeror file a protest later than seven days after the date the notice of award of the
contract is posted on the DGS website. The date of filing is the date of receipt of the protest. A
protest must be filed in writing with the Issuing Office. To be timely, the protest must be
received by 4:00 p.m. on the seventh day.
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I. 29. Use of Electronic Versions of this RFP. This RFP is being made available by electronic
means. If an Offeror electronically accepts the RFP, the Offeror acknowledges and accepts full
responsibility to insure that no changes are made to the RFP. In the event of a conflict between a
version of the RFP in the Offeror’s possession and the Issuing Office’s version of the RFP, the
Issuing Office’s version shall govern.
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PART II
PROPOSAL REQUIREMENTS
Offerors must submit their proposals in the format, including heading descriptions, outlined
below. To be considered, the proposal must respond to all requirements in this part of the RFP.
Offerors should provide any other information thought to be relevant, but not applicable to the
enumerated categories, as an appendix to the Proposal. All cost data relating to this proposal and
all Disadvantaged Business cost data should be kept separate from and not included in the
Technical Submittal. Each Proposal shall consist of the following three separately sealed
submittals:
A. Technical Submittal, which shall be a response to RFP Part II, Sections II-1
through II-8;
B. Disadvantaged Business Submittal, in response to RFP Part II, Section II-9; and,
C. Cost Submittal, in response to RFP Part II, Section II-10.
The Issuing Office reserves the right to request additional information which, in the Issuing
Office’s opinion, is necessary to assure that the Offeror’s competence, number of qualified
employees, business organization, and financial resources are adequate to perform according to
the RFP.
The Issuing Office may make investigations as deemed necessary to determine the ability of the
Offeror to perform the Project, and the Offeror shall furnish to the Issuing Office all requested
information and data. The Issuing Office reserves the right to reject any proposal if the evidence
submitted by, or investigation of, such Offeror fails to satisfy the Issuing Office that such Offeror
is properly qualified to carry out the obligations of the RFP and to complete the Project as
specified.
II. 1. Statement of the Problem. State in succinct terms your understanding of the problem
presented or the service required by this RFP.
II. 2. Management Summary. Include a narrative description of the proposed effort and a list
of the items to be delivered or services to be provided.
II. 3. Work Plan. Describe in narrative form your technical plan for accomplishing the work.
Use the task descriptions in Part IV of this RFP as your reference point. Modifications of the
task descriptions are permitted; however, reasons for changes should be fully explained. Indicate
the number of person hours allocated to each task. Include a Program Evaluation and Review
Technique (PERT) or similar type display, time related, showing each event. If more than one
approach is apparent, comment on why you chose this approach.
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II. 4. Prior Experience. Include experience in performing workers’ compensation audits.
Experience shown should be work done by individuals who will be assigned to this project as
well as that of your company. Studies or projects referred to must be identified and the name of
the customer shown, including the name, address, and telephone number of the responsible
official of the customer, company, or agency who may be contacted.
II. 5. Personnel. Include the number of executive and professional personnel, analysts,
auditors, researchers, programmers, consultants, etc., who will be engaged in the work. Show
where these personnel will be physically located during the time they are engaged in the Project.
For key personnel, which include the Offeror’s auditors, contact person and persons with
responsibility for quality control, include the employee’s name and through a resume or similar
document, the Project personnel’s education and experience in workers’ compensation audits.
The minimum qualifications for an auditor are described in Part IV of this RFP. Indicate the
responsibilities each individual will have in this Project and how long each has been with your
company. Identify by name any subcontractors you intend to use and the services they will
perform.
II. 6. Training. If appropriate, indicate recommended training of agency personnel. Include
the agency personnel to be trained, the number to be trained, duration of the program, place of
training, curricula, training materials to be used, number and frequency of sessions, and number
and level of instructors.
II. 7. Financial Capability. Describe your company’s financial stability and economic
capability to perform the contract requirements. Provide your company’s financial statements
for the past three fiscal years. If your company is a publicly traded company, please provide a
link to your financial records on your company website; otherwise, provide three (3) years of
your company’s financial documents such as audited financial statements. Financial statements
must include the company’s Balance Sheet and Income Statement or Profit/Loss Statements.
Also include a Dun & Bradstreet comprehensive report if available. The Commonwealth
reserves the right to request additional information it deems necessary to evaluate an Offeror’s
financial capability.
II. 8. Objections and Additions to Standard Contract Terms and Conditions. The Offeror
will identify which, if any, of the terms and conditions (contained in Appendix A) it would like
to negotiate and what additional terms and conditions the Offeror would like to add to the
standard contract terms and conditions. The Offeror’s failure to make a submission under this
paragraph will result in its waiving its right to do so later, but the Issuing Office may consider
late objections and requests for additions if to do so, in the Issuing Office’s sole discretion,
would be in the best interest of the Commonwealth. The Issuing Office may, in its sole
discretion, accept or reject any requested changes to the standard contract terms and conditions.
The Offeror shall not request changes to the other provisions of the RFP, nor shall the Offeror
request to completely substitute its own terms and conditions for Appendix A. All terms and
conditions must appear in one integrated contract. The Issuing Office will not accept references
to the Offeror’s, or any other, online guides or online terms and conditions contained in any
proposal.
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Regardless of any objections set out in its proposal, the Offeror must submit its proposal,
including the cost proposal, on the basis of the terms and conditions set out in Appendix A. The
Issuing Office will reject any proposal that is conditioned on the negotiation of the terms and
conditions set out in Appendix A. The issuing office will reject any proposal that is conditioned
on the negotiation of terms and conditions other than those set out in Appendix A.
II. 9. Disadvantaged Business Submittal.
A. Disadvantaged Business Information.
1. To receive credit for being a Small Disadvantaged Business or a Socially
Disadvantaged Business or for entering into a joint venture agreement with a
Small Disadvantaged Business or for subcontracting with a Small Disadvantaged
Business (including purchasing supplies and/or services through a purchase
agreement), a Offeror must include proof of Disadvantaged Business qualification
in the Disadvantaged Business Submittal of the proposal, as indicated below:
a) A Small Disadvantaged Businesses certified by BMWBO as an
MBE/WBE must provide a photocopy of their BMWBO certificate.
b) Businesses certified by the U.S. Small Business Administration pursuant
to Section 8(a) of the Small Business Act (15 U.S.C. § 636(a)) as an 8(a)
Small Disadvantaged Businesses must submit proof of U.S. Small
Business Administration certification. The owners of such businesses
must also submit proof of United States citizenship.
c) All businesses claiming Small Disadvantaged Business status, whether as
a result of BMWBO certification, or U.S. Small Business Administration
certification as an 8(a) small disadvantaged business, must attest to the
fact that the business has no more than 100 full-time or full-time
equivalent employees.
d) All businesses claiming Small Disadvantaged Business status, whether as
a result of BMWBO certification, or U.S. Small Business Administration
certification as an 8(a) small disadvantaged business, must submit proof
that their gross annual revenues are less than $20,000,000 ($25,000,000
for those businesses in the information technology sales or service
business). This can be accomplished by including a recent tax return or
audited financial statement.
2. All businesses claiming status as a Socially Disadvantaged Business must include
in the Disadvantaged Business Submittal of the proposal clear and convincing
evidence to establish that the business has personally suffered racial or ethnic
prejudice or cultural bias stemming from the business person’s color, ethnic origin
or gender. The submitted evidence of prejudice or bias must:
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a) Be rooted in treatment that the business person has experienced in
American society, not in other countries.
b) Show prejudice or bias that is chronic and substantial, not fleeting or
insignificant.
c) Indicate that the business person’s experience with the racial or ethnic
prejudice or cultural bias has negatively impacted his or her entry into
and/or advancement in the business world.
BMWBO shall determine whether the Offeror has established that a business is socially
disadvantaged by clear and convincing evidence.
3. In addition to the above verifications, the Offeror must include in the
Disadvantaged Business Submittal of the proposal the following information:
a) Those Small Disadvantaged Businesses submitting a proposal as the
Offeror, must include a numerical percentage which represents the total
percentage of the work (as a percentage of the total cost in the Cost
Submittal) to be performed by the Offeror and not by subcontractors and
suppliers.
b) Those Small Disadvantaged Businesses submitting a proposal as a part of
a joint venture partnership, must include a numerical percentage which
represents the total percentage of the work (as a percentage of the total
cost in the Cost Submittal) to be performed by the Small Disadvantaged
Business joint venture partner and not by subcontractors and suppliers or
by joint venture partners who are not Small Disadvantaged Businesses.
Offeror must also provide:
1) The amount of capital, if any, each Small Disadvantaged Business
joint venture partner will be expected to provide.
2) A copy of the joint venture agreement signed by all parties.
3) The business name, address, name and telephone number of the
primary contact person for the Small Disadvantaged Business joint
venture partner.
c) All Offerors must include a numerical percentage which represents the
total percentage of the total cost in the Cost Submittal that the Offeror
commits to paying to Small Disadvantaged Businesses as subcontractors.
To support its total percentage DB subcontractor commitment, Offeror
must also include:
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1) The dollar amount of each subcontract commitment to a Small
Disadvantaged Business;
2) The name of each Small Disadvantaged Business. The Offeror
will not receive credit for stating that after the contract is awarded
it will find a Small Disadvantaged Business.
3) The services or supplies each Small Disadvantaged Business will
provide, including the timeframe for providing the services or
supplies.
4) The location where each Small Disadvantaged Business will
perform services.
5) The timeframe for each Small Disadvantaged Business to provide
or deliver the goods or services.
6) A signed subcontract or letter of intent for each Small
Disadvantaged Business. The subcontract or letter of intent must
identify the specific work, goods or services the Small
Disadvantaged Business will perform and how the work, goods or
services relates to the project.
7) The name, address and telephone number of the primary contact
person for each Small Disadvantaged Business.
d) The total percentages and each subcontractor commitment will become
contractual obligations once the contract is fully executed.
e) The name and telephone number of the Offeror’s project (contact) person
for the Small Disadvantaged Business information.
4. The Offeror is required to submit two copies of its Disadvantaged Business
Submittal. The submittal shall be clearly identified as Disadvantaged Business
information and sealed in its own envelope, separate from the remainder of the
proposal.
5. A Small Disadvantaged Business can be included as a subcontractor with as many
prime contractors as it chooses in separate proposals.
6. An Offeror that qualifies as a Small Disadvantaged Business and submits a
proposal as a prime contractor is not prohibited from being included as a
subcontractor in separate proposals submitted by other Offerors.
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B. Enterprise Zone Small Business Participation.
1. To receive credit for being an enterprise zone small business or entering into a
joint venture agreement with an enterprise zone small business or subcontracting
with an enterprise zone small business, an Offeror must include the following
information in the Disadvantaged Business Submittal of the proposal:
a) Proof of the location of the business’ headquarters (such as a lease or deed
or Department of State corporate registration), including a description of
those activities that occur at the site to support the other businesses in the
enterprise zone.
b) Confirmation of the enterprise zone in which it is located (obtained from
the local enterprise zone office).
c) Proof of United States citizenship of the owners of the business.
d) Certification that the business employs no more than 100 full-time or full-
time equivalent employees.
e) Proof that the business’ gross annual revenues are less than $20,000,000
($25,000,000 for those businesses in the information technology sales or
service business). This can be accomplished by including a recent tax
return or audited financial statement.
f) Documentation of business organization, if applicable, such as articles of
incorporation, partnership agreement or other documents of organization.
2. In addition to the above verifications, the Offeror must include in the
Disadvantaged Business Submittal of the proposal the following information:
a) The name and telephone number of the Offeror’s project (contact) person
for the Enterprise Zone Small Business.
b) The business name, address, name and telephone number of the primary
contact person for each Enterprise Zone Small Business included in the
proposal. The Offeror must specify each Enterprise Zone Small Business
to which it is making commitments. The Offeror will not receive credit
for stating that it will find an Enterprise Zone Small Business after the
contract is awarded or for listing several businesses and stating that one
will be selected later.
c) The specific work, goods or services each Enterprise Zone Small Business
will perform or provide.
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d) The total cost amount submitted in the Offeror’s cost proposal and the
estimated dollar value of the contract to each Enterprise Zone Small
Business.
e) Of the estimated dollar value of the contract to each Enterprise Zone Small
Business, the percent of the total value of services or products purchased
or subcontracted that each Enterprise Zone Small Business will provide.
f) The location where each Enterprise Zone Small Business will perform
these services.
g) The timeframe for each Enterprise Zone Small Business to provide or
deliver the goods or services.
h) The amount of capital, if any, each Enterprise Zone Small Business will be
expected to provide.
i) The form and amount of compensation each Enterprise Zone Small
Business will receive.
j) For a joint venture agreement, a copy of the agreement, signed by all
parties.
k) For a subcontract, a signed subcontract or letter of intent.
3. The dollar value of the commitment to each Enterprise Zone Small Business must
be included in the same sealed envelope with the Disadvantaged Business
Submittal of the proposal. The following will become a contractual obligation
once the contract is fully executed:
a) The amount of the selected Offeror’s Enterprise Zone Small Business
commitment;
b) The name of each Enterprise Zone Small Business; and
c) The services each Enterprise Zone Small Business will provide, including
the timeframe for performing the services.
II – 10. Cost Submittal. The information requested in this Part II, Section II-10 shall constitute
the Cost Submittal and the information should be submitted on the Cost Form attached to this
RFP as Appendix E. The Cost Submittal shall be placed in a separate sealed envelope within the
sealed proposal, separated from the technical submittal. Any proposal failing to meet this
requirement will be automatically disqualified. The Cost Form requires Offerors to propose the
following costs for each geographic area that the Offeror seeks to service:
1. Total Cost Per Completed Audit. Propose the cost for an audit.
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2. Cost Per Incomplete Audit. Propose the costs for audits that the selected
contractor is unable to complete, through no fault of the contractor.
3. Cost per Additional Location. Audits requiring that an audit vendor visit more
than one physical location will be eligible for additional compensation on a per
location basis. Propose the cost per additional location applicable to such audits.
4. Cost Per Hour for Large Audits. Audits requiring more than four hours of auditor
time to complete maybe eligible for additional compensation at an hourly rate, at
SWIF’S sole discretion, upon submission of a request for additional compensation
and review by SWIF. This review will include a review of the request, the audit,
any previous audits of the policyholder and SWIF’S file regarding the
policyholder. If SWIF determines that the request is justified, it will pay an
additional hourly rate of compensation, though SWIF may reduce the amount
requested based upon its review of the audit. Propose the hourly rate that will be
requested for such audits.
5. Cost submittal for Territory E (statewide) will include territories A, B and C.
Territory D (out of state) will not be included in statewide. Individual proposals
must also be submitted by individual Territorry (A,B,C) if vendor wishes to bid
on individual zones, if not chosen for Territory E (statewide).
The Issuing Office will reimburse the selected Offeror for work satisfactorily performed after
execution of a written contract and the start of the contract term, in accordance with contract
requirements, and only after the issuing office has issued a notice to proceed.
Offerors should not include any assumptions in their cost submittals. If the Offeror includes
assumptions in its cost submittal, the Issuing Office may reject the proposal. Offerors should
direct in writing to the Issuing Office pursuant to Part I, Section I-10, of this RFP any questions
about whether a cost or other component is included or applies. All Offerors will then have the
benefit of the Issuing Office’s written answer so that all proposals are submitted on the same
basis.
The Issuing Office will reimburse the selected Offeror for work satisfactorily performed after
execution of a written contract and the start of the contract term, in accordance with contract
requirements, and only after the Issuing Office has issued a notice to proceed.
Domestic Workforce Utilization Certification. Complete and sign the Domestic Workforce
Utilization Certification contained in Appendix B of this RFP. Offerors who seek consideration
for this criterion must submit in hardcopy the signed Domestic Workforce Utilization
Certification Form in the same sealed envelope with the Technical Submittal.
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PART III
CRITERIA FOR SELECTION
III. 1. Mandatory Responsiveness Requirements. To be eligible for selection, a proposal
must be:
1. Timely received from an Offeror;
2. Properly signed by the Offeror.
III. 2. Technical Nonconforming Proposals. The two (2) Mandatory Responsiveness
Requirements set forth in Section III-1 above (A-B) are the only RFP requirements that the
Commonwealth will consider to be non-waivable. The Issuing Office reserves the right, in its
sole discretion, to (1) waive any other technical or immaterial nonconformities in an Offeror’s
proposal, (2) allow the Offeror to cure the nonconformity, or (3) consider the nonconformity in
the scoring of the Offeror’s proposal.
III. 3. Evaluation. The Issuing Office has selected a committee of qualified personnel to
review and evaluate timely submitted proposals. Independent of the committee, BMWBO will
evaluate the Disadvantaged Business Submittal and provide the Issuing Office with a rating for
this component of each proposal. The Issuing Office will notify in writing of its selection for
negotiation the responsible Offeror whose proposal is determined to be the most advantageous to
the Commonwealth as determined by the Issuing Office after taking into consideration all of the
evaluation factors.
III. 4. Evaluation Criteria. The following criteria will be used in evaluating each proposal:
1. Technical: The Issuing Office has established the weight for the Technical
criterion for this RFP as 50% of the total points.
Evaluation will be based upon the following:
a) Soundness of Approach. This emphasizes the techniques for collecting
and analyzing data, sequence and relationships of major steps, and
methods for managing the study /service. Of equal importance is whether
the technical approach is completely responsive to all written
specifications and requirements contained in the RFP and if it appears to
meet agency objectives.
b) Personnel Qualification. This refers to the competence of
professional personnel who would be assigned to the job by the
Offeror. Qualifications of professional personnel will be measured by
experience and education, with particular reference to experience on
studies/services similar to that described in the RFP.
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c) Contractor Qualifications. This refers to the ability of the Offeror to
meet there terms of the RFP, especially the time constraint, and the
quality relevancy, and recent of studies and projects completed by the
contractor. This also includes the contractor’s financial ability to
undertake a project of this size. The Issuing Office requires the Offeror to
submit a copy of its most recent audited financial statement or tax return.
d) Understanding the Problem. This refers to the Offeror’s
understanding of the Issuing Office’s needs that generated the RFP, of the
objectives in asking for the services or undertaking the study, and of the
nature and scope of the work involved.
III 5. Cost: The Issuing Office has established the weight for the Cost criterion for this RFP
as 30% of the total points.
III. 6. Disadvantaged Business Participation: BMWBO has established the weight for the
Disadvantaged Business (DB) Participation criterion for this RFP as 20 % of the total points.
Evaluation will be based upon the following in order of priority:
Priority Rank 1 Proposals submitted by Small Disadvantaged Businesses.
Priority Rank 2 Proposals submitted from a joint venture with a Small
Disadvantaged Business as a joint venture partner.
Priority Rank 3 Proposals submitted with subcontracting commitments to Small
Disadvantaged Businesses.
Priority Rank 4 Proposals submitted by Socially Disadvantaged Businesses.
Each DB Participation Submittal will be rated for its approach to enhancing the utilization of
Small Disadvantaged Businesses and/or Socially Disadvantaged Businesses. Each approach will
be evaluated, with Priority Rank 1 receiving the highest score and the succeeding options
receiving scores in accordance with the above-listed priority ranking. To the extent that there are
multiple DB Participation submittals that offer subcontracting commitments to Small
Disadvantaged Businesses, the proposal offering the highest total percentage commitment shall
receive the highest score in the Priority Rank 3 category and the other proposal(s) in that
category shall be scored in proportion to the highest total percentage commitment offered.
To qualify as a Small Disadvantaged Business or a Socially Disadvantaged Business, the Small
Disadvantaged Business or Socially Disadvantaged Business cannot enter into subcontract
arrangements for more than 40% of the total estimated dollar amount of the contract. If a Small
Disadvantaged Business or a Socially Disadvantaged Business subcontracts more than 40% of
the total estimated dollar amount of the contract to other contractors, the Disadvantaged Business
Participation scoring shall be proportionally lower for that proposal.
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III. 7. Enterprise Zone Small Business Participation. In accordance with the priority ranks
listed below, bonus points in addition to the total points for this RFP, will be given for the
Enterprise Zone Small Business Participation criterion. The maximum bonus points for this
criterion is 3% of the total points for this RFP. The following options will be considered as part
of the final criteria for selection:
Priority Rank 1 Proposals submitted by an Enterprise Zone Small Business will
receive three percent bonus for this criterion.
Priority Rank 2 Proposals submitted by a joint venture with an Enterprise Zone
Small Business as a joint venture partner will receive two percent
bonus for this criterion.
Priority Rank 3 Proposals submitted with a subcontracting commitment to an
Enterprise Zone Small Business will receive the one percent bonus
for this criterion.
Priority Rank 4 Proposals with no Enterprise Zone Small Business Utilization shall
receive no points under this criterion.
To the extent that an Offeror is an Enterprise Zone Small Business, the Offeror cannot enter into
contract or subcontract arrangements for more than 40% of the total estimated dollar amount of
the contract in order to qualify as an Enterprise Zone Small Business for purposes of this RFP.
III. 8. Domestic Workforce Utilization: Any points received for the Domestic Workforce
Utilization criterion are bonus points in addition to the total points for this RFP. The maximum
bonus points for this criterion is 3% of the total points for this RFP. To the extent permitted by
the laws and treaties of the United States, each proposal will be scored for its commitment to use
domestic workforce in the fulfillment of the contract. Maximum consideration will be given to
those Offerors who will perform the contracted direct labor exclusively within the geographical
boundaries of the United States or within the geographical boundaries of a country that is a party
to the World Trade Organization Government Procurement Agreement. Those who propose to
perform a portion of the direct labor outside of the United States and not within the geographical
boundaries of a party to the World Trade Organization Government Procurement Agreement will
receive a correspondingly smaller score for this criterion. Offerors who seek consideration for
this criterion must submit in hardcopy the signed Domestic Workforce Utilization Certification
Form in the same sealed envelope with the Technical Submittal. The certification will be
included as a contractual obligation when the contract is executed.
III-9. Offeror Responsibility. To be responsible, an Offeror must submit a responsive proposal
and possess the capability to fully perform the contract requirements in all respects and the
integrity and reliability to assure good faith performance of the contract.
In order for an Offeror to be considered responsible for this RFP and therefore eligible for
selection for best and final offers or selection for contract negotiations:
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The total score for the technical submittal of the Offeror’s proposal must be greater than or equal
to 70% of the available technical points; and,
The Offeror’s financial information must demonstrate that the Offeror possesses the financial
capability to assure good faith performance of the contract. The Issuing Office will review the
Offeror’s previous three financial statements, any additional information received from the
Offeror, and any other publicly-available financial information concerning the Offeror, and
assess each Offeror’s financial capacity based on calculating and analyzing various financial
ratios, and comparison with industry standards and trends.
An Offeror which fails to demonstrate sufficient financial capability to assure good faith
performance of the contract as specified herein may be considered by the Issuing Office, in its
sole discretion, for Best and Final Offers or contract negotiation contingent upon such Offeror
providing contract performance security for the first contract year cost proposed by the Offeror
in a form acceptable to the Issuing Office. Based on the financial condition of the Offeror, the
Issuing Office may require a certified or bank (cashier’s) check, letter of credit, or a performance
bond conditioned upon the faithful performance of the contract by the Offeror. The required
performance security must be issued or executed by a bank or surety company authorized to do
business in the Commonwealth. The cost of the required performance security will be the sole
responsibility of the Offeror and cannot increase the Offeror’s cost proposal or the contract cost
to the Commonwealth.
Further, the Issuing Office will award a contract only to an Offeror determined to be responsible
in accordance with the most current version of Commonwealth Management Directive 215.9,
Contractor Responsibility Program.
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PART IV
WORK STATEMENT
IV. 1 Objectives.
A. General. SWIF wishes to have selected Offerors conduct workers’ compensation audits
and underwriting visits for selected policyholders. Selected Offerors must contact the insured
and perform an on site audit or underwriting visit utilizing all available payroll and other
remuneration data per Part Five of the Workers’ Compensation and Employers’ Liability
Insurance Policy issued by SWIF, which is attached to this RFP at Appendix G. Selected
Offerors must take into consideration all pertinent and applicable rules and explanations of the
Pennsylvania Compensation Rating Bureau (PCRB) and the Pennsylvania Coal Mine Rating
Bureau (PCMRB).
SWIF may change the parameters of the program at any time during the term of the contract.
SWIF must follow the direction of the PCRB, the Insurance Department and the Department of
Labor and Industry. In addition, SWIF can be subject to legislative changes that affect its
operations. Therefore, SWIF must maintain the flexibility to adjust the requirements of this
program.
B. Specific. SWIF seeks Offerors to conduct through audits and underwriting visits
of SWIF policyholders.
An audit for SWIF is not just a payroll audit, it is a workers’ compensation audit of all
entities listed under the policy. This means that the audit must analyze payroll as well as
class distribution for that payroll. The analysis must include a review of claims,
certificates of insurance, the alternate employer endorsement, if applicable, owner-officer
information, location(s) verification, classification assignments per the respective
employees and the business activity itself.
SWIF currently requires an audit for all policyholders. If the annual policy premium is $999.99
or less, it is a voluntary audit. If the annual premium is equal to or greater than
$1,000, it is a provider audit.
At SWIF’s discretion, any new policy issued may be subject to an underwriting visit
performed by a selected Offeror. The purpose of an underwriting visit is to determine
the accuracy of the insured’s application to SWIF with respect to payroll and employee
classification. The selected Offeror will identify the payroll sources that are required to
complete the final audit that occurs at the end of the policy period to the policyholder. If
applicable, the selected Offeror will explain SWIF’s position on the use of subcontractors,
contracts and independent contractor questionnaires and the need for an alternate
employer endorsement if a PEO, temporary employment contractor or leasing company is
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involved.
IV 2. Nature and Scope of the Project.
A selected Offeror will perform the required services (see Part IV-4 below) in the geographical
territories outlined in Appendix C. An Offeror may submit a proposal for any or all of the
territories outlined. An Offeror must be able to service any audits assigned within the territory.
Furthermore, an Offeror must submit the appropriate cost proposal form for each territory in
which it proposes to provide services. For example, if an Offeror is interested in providing
services in Territories A, B, C and D, it must submit four (4) cost proposal forms.
Offeror must also submit separate cost proposal forms for statewide proposals if submitting a
proposal for statewide services. Statewide proposals will cover Territories A, B and C.
Individual proposals must also be submitted by individual Territory (A,B,C) if vendor wishes to
bid on individual zones, if not chosen for Territory E (statewide). Cost proposal forms are
attached to this RFP at Appendix E.
Additional consideration will be given to cost proposals that offer reduced rates for statewide
service.
SWIF may award three contracts in any of the geographic territories. SWIF may also award
more than one contract to an Offeror; in other words, an Offeror may provide services in more
than just one geographic territory. Initially, SWIF will equally divide the audits assigned among
all selected Offerors in each territory. SWIF reserves the right to adjust assignments based upon
selected Offeror performance during the term of the contract.
IV 3. Requirements.
1. The processing of audits for SWIF requires an in-depth knowledge of the
rules and regulations established by the Pennsylvania Compensation Rating
Bureau (PCRB), the Pennsylvania Coal Mine Compensation Rating Bureau
(PCMCRB), and the
Pennsylvania Insurance Department and an understanding of commonly
accepted industry-wide auditing standards. Describe your knowledge and
experience.
2. SWIF requires that each auditor, working under the contract proposed by
this RFP, meet one (1) of the following criteria:
a) A four (4) year college degree, with one (1) year practical
experience in performing workers’ compensation audits.
b) An Associate’s Degree, or equivalent; to include and Associate
in Premium Auditing (APA) from the American Institute for
Chartered Property Casualty Underwriting IIA (AICPCU IIA),
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and two (2) years of experience.
c) Four (4) years of workers’ compensation audit experience. Describe how
your auditors will meet these requirements.
SWIF reserves the right to waive auditor qualifications during the term of the contract.
3. An Offeror must have sufficient staff to meet SWIF’s audit needs. For each
Territory for which you are submitting a proposal, please indicate how many
auditors will be assigned to that Territory. This information should be provided
on Appendix H that is attached to this RFP. Charts setting forth the current
number of policies for each Territory are attached hereto as Appendix D.
4. An Offeror must have a program for continuing education. Describe, in detail,
your continuing education program, including how you will ensure that every
auditor performing work for SWIF will receive continuing education.
5. A selected contractor must provide appropriate current certificates of insurance
evidencing at least a $1,000,000.00 single limit general liability insurance policy
and a $1,000,000.00 single limit errors and omissions insurance policy. The
certificates of insurance must be provided before any contract is awarded.
Describe how you will monitor these requirements.
6. All audit and underwriting visit reports must be computer generated. Auditors
must complete audits using lap top computers. A copy of the computer form that
will be used must be submitted with any offer. SWIF shall approve the software
proposed by an Offeror. Please provide information regarding the software that
you will use, including the name of the software program, the version of the
program, and the operating system it uses.
IV. 4. Emergency Preparedness.
To support continuity of operations during an emergency, including a pandemic, the
Commonwealth needs a strategy for maintaining operations for an extended period of time. One
part of this strategy is to ensure that essential contracts that provide critical business services to
the Commonwealth have planned for such an emergency and put contingencies in place to
provide needed goods and services.
1. Describe how you anticipate such a crisis will impact your operations.
2. Describe your emergency response continuity of operations plan. Please attach a
copy of your plan, or at a minimum, summarize how your plan addresses the
following aspects of pandemic preparedness:
a) Employee Training (describe your organization’s training plan, and how
frequently your plan will be shared with employees)
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b) Identified essential business functions and key employees (within your
organization) necessary to carry out contingency plans for:
1. How your organization will handle staffing issues when a
portion of key employees are incapacitated due to illness.
2. How employees in your organization will carry out the essential
functions if contagion control measures prevent them from coming
to the primary workplace.
3. How your organization will communicate with staff and suppliers
when primary communications systems are overloaded or
otherwise fail, including key contacts, chain of communications
(including suppliers), etc.
4. How and when your emergency plan will be tested, and if the plan
will be tested by a third-party.
IV. 5. Tasks.
A. Describe how you would complete the following types of audits:
1. Regular Audits. Audits performed on accounts at the end of the policy term.
2. Interim Audits. Audits performed at SWIF’s discretion at any point during the
policy term.
3. Underwriting Visit. Visits scheduled on particular accounts, at SWIF’s
discretion, in order to determine proper underwriting of the policy. These can be
scheduled at any time during the policy term. Underwriting visits are not
scheduled for out of state locations.
4. Pre Policy Issuance Audits. Audits designed to obtain actual payrolls prior to
incepting policy coverage rather than accepting estimated remuneration.
B. Audit Timing. It is important that SWIF audits are completed in a timely manner.
Below are SWIF”s timing requirements. Describe in detail what steps you will take to
ensure that you meet the following guidelines:
1. For Regular Audits, SWIF will provide the audit information to a selected
contractor 45 days prior to the expiration date of the policy. This information will
include the name, address, and telephone number of the audit contact for the
policyholder. The selected Offeror may contact the policyholder prior to the
expiration date of the policy, but cannot conduct the audit until the policy has
expired. Regular Audits must be completed and the appropriate form returned to
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SWIF within 30 calendar days after the expiration date of the policy. On day 31,
SWIF sends out a 2nd
notice to the auditors, which afford them an additional 30
calendar days to conduct the audit for a total of 60 days.
2. For Interim Audits and Pre Policy Audits, the selected Offeror must complete the
audit and return the appropriate form to SWIF within 30 calendar days of receipt
of the audited information.
3. SWIF will provide audit information to the vendor on cancelled policies the week
that the policy becomes inactive. The selected Offeror must complete the audit
and return the appropriate form to SWIF within 30 calendar days of receipt of the
audit information.
4. Underwriting Visits must be completed and the appropriate form returned to
SWIF within 30 calendar days of assignment to the selected contractor.
5. If an Audit or Underwriting Visit cannot be conducted within the prescribed time
period, the selected Offeror must submit a status report to SWIF providing the
reason for the delay and advising when the Audit or Underwriting Visit will be
completed. An initial status report must be submitted when the audit report would
otherwise be due—30 calendar days after the expiration date of the policy.
IV. 6. Audit Information. It is the Offeror’s obligation to provide SWIF with all pertinent
information, including changes in operation, class, entity, ownership and location that have an
effect on the audited payroll results in the Audit or Underwriting Visit report. The Offeror must
obtain the business(es) Federal Tax I.D. Number(s) and Social Security Number(s), for all
Owners and Officers and verify if the owner(s) or officers are included or exempt from coverage.
Further, the Offeror must be familiar with the Pennsylvania Compensation Rating Bureau and
Pennsylvania Coal Mine Compensation Rating Bureau rules pertaining to the coverage
requirements relating to officers, owners and members of non profit corporation. The Offeror
must determine the total number of employees in each class of payroll, provide a description of
the work performed by each employee and include a detailed narrative of the business operation.
Describe how you will ensure that your reports will include all required information.
IV. 7. Subcontractor Information. The selected Offeror must secure information on all
subcontractors, including workers’ compensation certificates of insurance, which run
concurrently with the policy term. A policyholder is required to produce certificates of insurance
evidencing workers’ compensation insurance coverage for all subcontractors, listing their names,
amounts paid, and a description of the work performed by the respective subcontractors. For the
subcontractors, who are unable to produce workers’ compensation certificates of insurance, the
auditor must procure the names, amounts paid, description of the work performed and a copy of
certificates of insurance evidencing general liability. Describe how you will collect this
information which will be provided to SWIF.
IV. 8. Special Audits. Certain classes of business typically require greater Audit attention.
These classes include trucking companies, building contractors, coal mining operations,
28
temporary employment agencies and employee leasing companies. In each of these classes, the
auditor must carefully scrutinize the information given before classifying the operation and
assigning payroll. With respect to temporary employment agencies and employee leasing
companies, the selected Offeror must be familiar with the definition and rules relating to classes
and cross referenced classes for temporary employment contractors as set forth in the PCRB
Manual. Describe how you will properly analyze the claim data and alternate employer listing to
assure that the clients are properly classified.
IV. 9 Audit Questions. The selected Offeror must provide a copy of the audit results to the
insured and answer any questions relating to the audit, including payroll class assignments and
payroll assignments for corporate officers, sole proprietors, partners, and LLC members. Also, a
detailed description must be included in the report. Describe how you will collect this
information and provide it to SWIF.
IV. 10. Report Review. To assure that SWIF includes all payroll for compensation purposes,
the selected Offeror must thoroughly review all financial records, including 1099 Miscellaneous
Filings (if applicable) and schedule C tax forms for sole proprietors and Schedule E forms for
partners. Describe your process for meeting this requirement.
IV. 11. Audit Documentation. The payroll documentation used to complete an Audit must be
within the “16-day period” required by the PCRB and explained in the PCRB Manual. There
must the two (2) sources of payroll verification. Acceptable forms of payroll verification include
general ledgers, check books, cash disbursement journals, general ledgers, UC2 and 941 reports.
Describe your process for meeting this requirement.
IV. 12. Copies of the Audit. A selected Offeror shall electronically submit a PDF formatted
version of a completed Audit report to SWIF, signed by both the auditor and insured upon
completion of the Audit. A selected Offeror shall supply a copy of the Audit report to the
insured, if requested. A selected Offeror shall make three (3) attempts to conduct the Audit
before the audit control sheet is returned to SWIF. Forms reflected Audits that cannot be
conducted must be marked “NOT ABLE TO COMPLETE” and describe the reason the Audit
could not be completed. A selected Offeror must document that it made two (2) verbal attempts
and one (1) written request, sent via certified mail, return receipt requested to schedule the Audit.
This documentation must be attached to the returned Audit form. SWIF will not pay for an
incomplete Audit without this documentation. Describe your process for meeting this
requirement.
IV. 13. Audit Reports. All reports of Audits and Underwriting Visits must be signed by the
insured, or their representative, in order for an Offeror to be paid. If a report cannot be signed, a
detailed explanation is required.
The Audit report must include a comprehensive narrative of the policyholder’s business
operations. This narrative must be in accordance with commonly accepted standards of the
industry, including the guidelines established by The Pennsylvania Compensation Rating Bureau
and The Coal Mine Compensation Rating Bureau. The narrative must accurately explain the
policyholder’s business. For policyholders with 50 employees or less, the Audit must include the
29
names, positions, and payroll for each employee. Describe your process for meeting this
requirement.
The audit report must include a description of the duties performed by each corporate officer,
sole proprietor or partner. If the auditor is tentative as to how to properly classify a worker, who
performs various types of work, the PCRB manual addresses the issues of regular and frequent
under the General Auditing Classification Section.
The auditor must possess knowledge pertaining to exposures involving restaurants and tip
calculations, The Davis Bacon Act relating to prevailing wage operations, United States
Longshoremen and Harbor (USL & H) and Jones Act coverage and Owner Controlled Insurance
Program (OCIP) Projects.
IV. 14. Re-Audits. If the Audit findings are challenged by the policyholder, an a Re-Audit is
necessary, SWIF will pay the selected Offeror for the Re-Audit only if the original information
from the policyholder was incorrect or a policy change necessitated the Re-Audit. SWIF will not
pay for Re-Audits if the selected Offeror failed to initially secure the proper and correct Audit
information.
IV. 15. Audit Citations. If any Test Audit Citations are issued by the PCRB, the selected
Offeror must return to the Audit location and respond to the Test Audit Citation within a 45 day
period. The selected Offeror shall receive no additional compensation for this. However, if the
PCRB’s Citation is rescinded based on the Re-Audit, SWIF will pay the selected Offeror its
regular Audit charge. If SWIF is fined because of a Test Audit, the selected Offeror will be
required to reimburse SWIF for the fine. Describe your process for handing audit citations.
IV. 16. Reports and Project Control. SWIF has designed a Quality Control Program to
measure the job performance of each of its selected Offerors. It reviews the performance of its
Offerors on a quarterly basis, at SWIF’s Home Office in Scranton. Selected Offerors are
required to attend these quarterly performance reviews. SWIF may terminate a contract or
redistribute work if it determines that a selected Offeror’s performance is unsatisfactory.
Additional meetings may be required, at SWIF’s discretion. Describe your procedure for reports
and project control.
IV-17. Service Level Agreements. A successful Offeror will be able to meet the following
service level requirements, which have been designed to insure that Audits, with affect the policy
premiums charged by SWIF, are completed on time and without error. If a selected Offeror
consistently fails to meet these standards, SWIF, in its sole discretion, may terminate its contract
with that selected Offeror. In its proposal, an Offeror must:
IV-17.1. Total Audits. Describe the measures that it will put in place to insure
that the error ratio on total Audits does not exceed 2%.
IV-17-2. Test Audits. Describe the measure that it will put in place to insure
that the error ratio on Test Audits does not exceed 20%.
30
IV-17-3. Incomplete Audits. Describe the measure that it will put into
place to insure that the number of Incomplete
Audits does not exceed 7% of the total number of Audits
assigned to the Offeror.
IV-17-4. Late Audits. Describe the measure that it will put into place to
insure the following:
a) That the number of Audit reports filed with SWIF
beyond 45 business days after the expiration of the
policy does not exceed 7% of the total number of
Audits assigned to the Offeror.
b) That the number of Audit reports filed with SWIF
beyond 90 business days after the
expiration of the policy does not exceed
3% of the total number of Audits assigned
to the Offeror.
IV-17.5. Total Premiums Describe the measures that it will put in
Generated place to insure that the following goals are met:
a) That total premiums generated on all
Audits will met the goal of 6% over the
aggregate or original estimated policy
premium.
b) That total premiums generated on Audits under
$10,000.00 in premium will meet the goals of 10%
over the aggregate of original estimated policy
premium.
IV. 18. Contract Requirements: Disadvantaged Business Participation and Enterprise Zone
Small Business Participation.
All contracts containing Disadvantaged Business participation and/or Enterprise Zone
Small Business participation must also include a provision requiring the selected
contractor to meet and maintain those commitments made to Disadvantaged Businesses
and/or Enterprise Zone Small Businesses at the time of proposal submittal or contract
negotiation, unless a change in the commitment is approved by the BMWBO. All contracts
containing Disadvantaged Business participation and/or Enterprise Zone Small Business
participation must include a provision requiring Small Disadvantaged Business
subcontractors, Enterprise Zone Small Business subcontractors and Small Disadvantaged
Businesses or Enterprise Zone Small Businesses in a joint venture to perform at least 50%
31
of the subcontract or Small Disadvantaged Business/Enterprise Zone Small Business
participation portion of the joint venture.
The selected contractor’s commitments to Disadvantaged Businesses and/or Enterprise Zone
Small Businesses made at the time of proposal submittal or contract negotiation shall be
maintained throughout the term of the contract and through any renewal or extension of the
contract. Any proposed change must be submitted to BMWBO, which will make a
recommendation to the Contracting Officer regarding a course of action.
If a contract is assigned to another contractor, the new contractor must maintain the
Disadvantaged Business participation and/or Enterprise Zone Small Business participation of the
original contract.
The selected contractor shall complete the Prime Contractor’s Quarterly Utilization Report (or
similar type document containing the same information) and submit it to the contracting officer
of the Issuing Office and BMWBO within 10 workdays at the end of each quarter the contract is
in force. This information will be used to determine the actual dollar amount paid to Small
Disadvantaged Business and/or Enterprise Zone Small Business subcontractors and suppliers,
and Small Disadvantaged Business and/or Enterprise Zone Small Business participants involved
in joint ventures. Also, this information will serve as a record of fulfillment of the commitment
the selected contractor made and for which it received Disadvantaged Business and Enterprise
Zone Small Business points. If there was no activity during the quarter then the form must be
completed by stating “No activity in this quarter.”
NOTE: EQUAL EMPLOYMENT OPPORTUNITY AND CONTRACT COMPLIANCE
STATEMENTS REFERRING TO COMPANY EQUAL EMPLOYMENT
OPPORTUNITY POLICIES OR PAST CONTRACT COMPLIANCE PRACTICES DO
NOT CONSTITUTE PROOF OF DISADVANTAGED BUSINESSES STATUS OR
ENTITLE AN OFFEROR TO RECEIVE CREDIT FOR DISADVANTAGED
BUSINESSES UTILIZATION.
32
APPENDIX A
STANDARD TERMS AND CONDITIONS
STANDARD CONTRACT TERMS AND CONDITIONS
STD-274 Rev. 05/07/04
http://www.dgs.state.pa.us/dgs/lib/dgs/forms/comod/procurementforms/std274 sap.d
33
APPENDIX B
DOMESTIC WORKFORCE UTILIZATION CERTIFICATION
To the extent permitted by the laws and treaties of the United States, each proposal will be
scored for its commitment to use the domestic workforce in the fulfillment of the contract.
Maximum consideration will be given to those offerors who will perform the contracted direct
labor exclusively within the geographical boundaries of the United States or within the
geographical boundaries of a country that is a party to the World Trade Organization
Government Procurement Agreement. Those who propose to perform a portion of the direct
labor outside of the United States and not within the geographical boundaries of a party to the
World Trade Organization Government Procurement Agreement will receive a correspondingly
smaller score for this criterion. In order to be eligible for any consideration for this criterion,
offerors must complete and sign the following certification. This certification will be included as
a contractual obligation when the contract is executed. Failure to complete and sign this
certification will result in no consideration being given to the offeror for this criterion.
I, ______________________[title] of ____________________________________[name of
Contractor] a _______________ [place of incorporation] corporation or other legal entity,
(“Contractor”) located at
__________________________________________________________
[address], having a Social Security or Federal Identification Number of
________________________, do hereby certify and represent to the Commonwealth of
Pennsylvania ("Commonwealth") (Check one of the boxes below):
All of the direct labor performed within the scope of services under the contract will be
performed exclusively within the geographical boundaries of the United States or one of the
following countries that is a party to the World Trade Organization Government Procurement
Agreement: Aruba, Austria, Belgium, Bulgaria, Canada, Chinese Taipei, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland,
Ireland, Israel, Italy, Japan, Korea, Latvia, Liechtenstein, Lithuania, Luxemburg, Malta, the
Netherlands, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain,
Sweden, Switzerland, and the United Kingdom
OR
________________ percent (_____%) [Contractor must specify the percentage] of the direct
labor performed within the scope of services under the contract will be performed within the
geographical boundaries of the United States or within the geographical boundaries of one of the
countries listed above that is a party to the World Trade Organization Government Procurement
Agreement. Please identify the direct labor performed under the contract that will be performed
outside the United States and not within the geographical boundaries of a party to the World
Trade Organization Government Procurement Agreement and identify the country where the
direct labor will be performed:
______________________________________________________________________________
__________________________________________________________________
34
________________________________________________________________________
[Use additional sheets if necessary]
The Department of General Services [or other purchasing agency] shall treat any misstatement as
fraudulent concealment of the true facts punishable under Section 4904 of the Pennsylvania
Crimes Code, Title 18, of Pa. Consolidated Statutes.
Attest or Witness: ______________________________
Corporate or Legal Entity's Name
_____________________________ ______________________________
Signature/Date Signature/Date
_____________________________ ______________________________
Printed Name/Title Printed Name/Title
35
APPENDIX C
TERRITORY ASSIGNMENT (By-County)
TERRITORY A:
Counties: Bucks-Chester-Delaware-Montgomery-Philadelphia
TERRITORY B:
Counties: Adams- Berks-Bradford-Carbon-Centre-Clinton-Columbia-
Cumberland-Dauphin-Franklin-Juniata-Lackawanna-Lancaster-Lebanon-
Luzerne-Lycoming-Mifflin-Monroe-Montour-Northampton-Northumberland-
Perry-Pike-Potter-Schuylkill-Snyder-Sullivan-Susquehanna-Tioga-Union-
Wayne-Wyoming-York
TERRITORY C:
Counties: Allegheny-Armstrong-Beaver-Butler-Bedford-Blair-Cameron-
Crawford-Cambria-Clearfield-Clarion-Elk-Erie-Fayette-Forest-Fulton-
Greene-Huntingdon-Indiana-Jefferson-Lawrence-Mercer-McKean-Somerset-
Venango-Warren-Washington-Westmoreland
TERRITORY D: OUT-OF-STATE
TERRITORY E: STATEWIDE (Includes Territory A,B & C)
Proposals should only be submitted for territories which an Offeror can effectively service. For
instance, if an Offeror’s business is concentrated in one territory, a proposal should be submitted
only for that territory. An Offeror will be graded on its ability to perform the necessary services
within that territory. If an Offeror submits a proposal for all territories, it will be graded on its
ability to service all geographic territories. A separate proposal is required for each territory
which the Offeror wishes to service.
36
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
DISTRICT #0 - OUT-OF-STATE
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 206 206 15 15 66,870 66,870 0 1
501-1000 257 463 19 33 188,101 254,971 2 2
1001-1500 161 624 12 45 198,037 453,008 2 4
1501-2000 103 727 7 52 176,961 629,969 1 5
2001-3000 106 833 8 60 256,569 886,538 2 7
3001-5000 116 949 8 68 449,389 1,335,927 4 11
5001-7500 108 1057 8 76 661,375 1,997,302 5 16
7501-10000 67 1124 5 81 576,758 2,574,060 5 21
10001-20000 123 1247 9 90 1,727,610 4,301,670 14 36
20001-30000 48 1295 3 93 1,188,193 5,489,863 10 45
30001-40000 26 1321 2 95 906,897 6,396,760 7 53
40001-50000 15 1336 1 96 668,847 7,065,607 6 58
50001-75000 23 1359 2 98 1,451,954 8,517,561 12 70
75001-100000 15 1374 1 99 1,264,069 9,781,630 10 81
100001-200000 10 1384 1 100 1,506,836 11,288,466 12 93
200001-500000 3 1387 0 100 827,161 12,115,627 7 100
District Totals 1387 1387 100 12,115,627 12,115,627 100
37
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
DISTRICT #1 - PHILADELPHIA
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 1493 1493 21 21 455,919 455,919 1 1
501-1000 1135 2628 16 37 845,636 1,301,555 2 3
1001-1500 727 3355 10 47 877,884 2,179,439 2 5
1501-2000 536 3891 8 55 926,692 3,106,131 2 8
2001-3000 772 4663 11 65 1,903,095 5,009,226 5 13
3001-5000 850 5513 12 77 3,281,200 8,290,426 8 21
5001-7500 549 6062 8 85 3,374,078 11,664,504 8 29
7501-10000 257 6319 4 89 2,208,003 13,872,507 6 35
10001-20000 413 6732 6 95 5,802,990 19,675,497 15 49
20001-30000 155 6887 2 97 3,795,141 23,470,638 9 59
30001-40000 74 6971 1 98 2,536,127 26,006,785 6 65
40001-50000 48 7009 1 98 2,177,590 28,184,355 5 71
50001-75000 47 7056 1 99 2,881,270 31,065,625 7 78
75001-100000 27 7083 0 99 2,378,547 33,444,172 6 84
100001-200000 31 7114 0 100 4,396,174 37,840,346 11 95
200001-500000 6 7120 0 100 1,615,558 39,455,904 4 99
500001-1000000 1 7121 0 100 521,342 39,977,246 1 100
District Totals 7121 7121 0 100 39,977,246 39,977,246 100
38
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
DISTRICT #2 - HARRISBURG
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 510 510 22 22 151,064 151,064 1 1
501-1000 469 979 20 41 351,794 502,858 3 4
1001-1500 278 1257 12 53 344,096 846,954 3 7
1501-2000 167 1424 7 60 290,294 1,137,248 3 10
2001-3000 228 1652 10 70 546,065 1,683,313 5 15
3001-5000 231 1883 10 80 897,102 2,580,415 8 23
5001-7500 146 2029 6 86 903,865 3484,280 8 31
7501-10000 92 2121 4 90 794,827 4,279,107 7 37
10001-20000 127 2248 5 95 1,782,176 6,061,283 16 53
20001-30000 56 2304 2 97 1,362,565 7,423,848 12 65
30001-40000 21 2325 1 98 717,590 8,141,438 6 71
40001-50000 8 2333 0 99 357,736 8,499,174 3 74
50001-75000 16 2349 1 99 932,814 9,431,988 8 83
75001-100000 9 2358 0 100 782,527 10,214,515 7 89
100001-200000 6 2364 0 100 714,778 10,929,293 6 96
200001-500000 2 2366 0 100 489881 11,419,174 4 100
District Totals 2366 2366 100 11,419,174 11,419,174 100
39
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
DISTRICT #3 - POTTSVILLE
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 492 492 19 19 144,751 144,751 0 1
501-1000 428 920 17 36 321,340 466,091 2 3
1001-1500 253 1173 10 46 311,893 777,984 2 5
1501-2000 220 1393 9 55 378,563 1,156,547 2 7
2001-3000 242 1635 9 64 598,977 1,755,524 4 11
3001-5000 296 1931 12 76 1,124,749 2,880,273 7 17
5001-7500 186 2117 7 83 1,135,071 4,015,344 7 24
7501-10000 114 2231 4 87 1,005,349 5,020,693 6 30
10001-20000 158 2389 6 94 2,135,065 7,155,758 13 43
20001-30000 60 2449 2 96 1,444,909 8,600,667 9 52
30001-40000 29 2478 1 97 1,021,872 9,622,539 6 58
40001-50000 13 2491 1 98 596,228 10,218,767 4 61
50001-75000 33 2524 1 99 2,078,559 12,297,326 13 74
75001-100000 10 2534 0 99 873,280 13,170,606 5 79
100001-200000 13 2547 1 100 1,709,083 14,879,689 10 90
200001-500000 3 2550 0 100 1,135,668 16,015,357 7 96
5005001-1000000 1 2551 0 100 608,562 16,623,919 4 100
District Totals 2551 2551 100 16,623,919 16,623,919 100
40
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
DISTRICT #4 - SUNBURY
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 309 309 24 24 96,768 96,768 1 1
501-1000 198 507 15 39 144,529 241,297 2 4
1001-1500 149 656 12 51 180,953 422,250 3 6
1501-2000 87 743 7 58 151,477 573,727 2 8
2001-3000 122 865 9 67 298,294 872,021 4 13
3001-5000 143 1008 11 78 544,334 1,416,355 8 21
5001-7500 92 1100 7 85 563,260 1,979,615 8 29
7501-10000 45 1145 3 89 385,043 2,364,658 6 35
10001-20000 79 1224 6 95 1,090,850 3,455,508 16 51
20001-30000 34 1258 3 97 817,659 4,273,167 12 63
30001-40000 9 1267 1 98 318,675 4,591,842 5 68
40001-50000 7 1274 1 99 320,945 4,912,787 5 72
50001-75000 7 1281 1 99 413,539 5,326,326 6 79
75001-100000 5 1286 0 100 438,307 5,764,633 6 85
100001-200000 3 1289 0 100 362,910 6,127,543 5 90
200001-500000 2 1291 0 100 648,956 6,776,499 10 100
District Totals 1291 1291 100 6,776,499 6,776,499 100
41
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
DISTRICT #5 - PITTSBURGH
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 1289 1289 25 25 405,129 405,129 2 2
501-1000 914 2203 18 42 676,642 1,081,771 3 4
1001-1500 524 2727 10 53 643,688 1,725,459 2 6
1501-2000 417 3144 8 61 725,717 2,451,176 3 9
2001-3000 470 3614 9 70 1,149,718 3,600,894 4 13
3001-5000 506 4120 10 79 1,965,816 5,566,710 7 21
5001-7500 338 4458 7 86 2,050,631 7,617,341 8 29
7501-10000 172 4630 3 89 1,465,654 9,082,995 5 34
10001-20000 284 4914 5 95 3,944,493 13,027,488 15 49
20001-30000 102 5016 2 97 2,521,561 15,549,049 9 58
30001-40000 57 5073 1 98 1,987,426 17,536,475 7 66
40001-50000 38 5111 1 99 1,720,021 19,256,496 6 72
50001-75000 31 5142 1 99 1,901,315 21,157,811 7 79
75001-100000 21 5163 0 100 1,841,189 22,999,000 7 86
100001-200000 23 5186 0 100 3,068,032 26,067,032 11 98
200001-500000 25 5188 0 100 658,766 26,725,798 2 100
District Totals 5188 5188 100 26,725,798 26,725,798 100
42
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
DISTRICT #6 - SCRANTON
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 405 405 20 20 116,544 116,544 0 1
501-1000 339 744 17 38 248,172 364,716 2 3
1001-1500 191 935 10 47 239,665 604,381 2 4
1501-2000 167 1102 8 56 289,300 893,681 2 7
2001-3000 181 1283 9 65 436,292 1,329,973 3 10
3001-5000 225 1508 11 76 857,414 2,187,387 6 16
5001-7500 137 1645 7 83 834,510 3,021,897 6 22
7501-10000 93 1738 5 88 810,801 3,832,698 6 28
10001-20000 129 1867 7 94 1,821,295 5,653,993 14 42
20001-30000 41 1908 2 96 1,016,535 6,670,528 8 49
30001-40000 17 1925 1 97 580,422 7,250,950 4 54
40001-50000 8 1933 0 97 348,874 7,599,824 3 56
50001-75000 17 1950 1 98 1,013,143 8,612,967 8 64
75001-100000 15 1965 1 99 1,342,148 9,955,115 10 74
100001-200000 12 1977 1 100 1,630,103 11,585,218 12 86
200001-500000 5 1982 0 100 1,315,591 12,900,809 10 96
500001-1000000 1 1983 0 100 588,602 13,489,411 4 100
District Totals 1983 1983 100 13,489,411 13,489,411 100
43
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
DISTRICT #7 - ERIE
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 284 284 26 26 96,922 96,922 2 2
501-1000 191 475 17 43 139,621 236,543 3 5
1001-1500 102 577 9 52 127,579 364,122 3 7
1501-2000 72 649 6 58 124,157 488,279 2 10
2001-3000 103 752 9 68 258,572 746,851 5 15
3001-5000 119 871 11 78 456,828 1,203,679 9 24
5001-7500 78 949 7 85 479,505 1,683,184 10 33
7501-10000 46 995 4 90 401,012 2,084,196 8 41
10001-20000 78 1073 7 97 1,121,680 3,205,876 22 64
20001-30000 12 1085 1 98 305,517 3,511,393 6 70
30001-40000 11 1096 1 99 376,987 3,888,380 7 77
40001-50000 4 1100 0 99 173,642 4,062,022 3 81
50001-75000 5 1105 0 99 295,277 4,357,299 6 87
75001-100000 3 1108 0 100 260,683 4,617,982 5 92
100001-200000 3 1111 0 100 414,220 5,032,202 8 100
District Totals 1111 1111 100 5,032,202 5,032,202 100
44
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
DISTRICT #9 - JOHNSTOWN
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 415 415 21 21 126,108 126,108 1 1
501-1000 389 804 20 41 285,179 411,287 3 4
1001-1500 220 1024 11 52 271,643 682,930 3 7
1501-2000 147 1171 7 59 255,739 938,669 3 10
2001-3000 203 1374 10 69 495,695 1,434,364 5 16
3001-5000 212 1586 11 80 812,042 2,246,406 9 24
5001-7500 142 1728 7 87 869,071 3,115,477 9 34
7501-10000 61 1789 3 90 523,992 3,639,469 6 40
10001-20000 112 1901 6 96 1,594,769 5,234,238 17 57
20001-30000 39 1940 2 98 956,907 6,191,145 10 67
30001-40000 14 1954 1 99 486,185 6,677,330 5 73
40001-50000 8 1962 0 99 355,988 7,033,318 4 77
50001-75000 11 1973 1 100 651,345 7,684,663 7 84
75001-100000 3 1976 0 100 269,416 7,954,079 3 87
100001-200000 3 1979 0 100 379,536 8,333,615 4 91
200001-500000 3 1982 0 100 854,590 9,188,205 9 100
District Totals 1982 1982 100 9,188,205 9,188,205 100
45
APPENDIX D
DISTRICT OFFICE POLICY BREAKDOWN
POLICIES IN FORCE AS OF 03/30/2012
SUMMARY OF ALL DISTRICTS
Premium
Group
Policy
Count
Policy
Count
Cumm
Policy
%
Policy
%
Cumm
Premium
Amount
Whole $
Premium
Amount
Cumm
Amt.
%
Prem.
%
Cumm
0-500 5426 5426 22 22 1,658,519 1,658,519 1 1
501-1000 4318 9744 17 39 3,199,766 4,858,285 2 3
1001-1500 2605 12349 10 49 3,195,546 8,053,831 2 6
1501-2000 1915 14264 8 57 3,317,282 11,371,113 2 8
2001-3000 2421 16685 10 67 5,927,674 17,298,787 4 12
3001-5000 2691 19376 11 78 10,361,742 27,660,529 7 20
5001-7500 1776 21152 7 85 10,871,572 38,532,101 8 27
7501-10000 947 22099 7 88 8,169,520 46,701,621 6 33
10001-20000 1501 23600 6 94 20,988,795 67,690,416 15 48
20001-30000 543 24143 2 97 13,304,868 80,995,284 9 57
30001-40000 257 24400 1 98 8,898,733 89,894,017 6 64
40001-50000 149 24549 1 98 6,719,871 96,613,888 5 68
50001-75000 190 24739 1 99 11,618,208 108,232,096 8 77
75001-100000 108 24847 0 99 9,450,166 117,682,262 7 83
100001-200000 104 24951 0 100 14,181,672 131,863,934 10 93
200001-500000 26 24977 0 100 7,546,171 139,410,105 5 99
500001-1000000 3 24980 0 100 1,718,506 141,128,611 1 100
46
APPENDIX E-1
COST SUBMITTAL FORM FOR TERRITORY A
Instructions to Offerors:
1. PLEASE PROVIDE A COST FOR EACH OF THE LISTED SERVICES.
2. YOU MUST COMPLETE SEPARATE COST INFORMATION FOR EACH
GEOGRAPHIC TERRITORY IN WHICH YOU PROPOSE TO PROVIDE
SERVICES.
TERRITORY A
1. Total Cost Per Completed Audit $
2. Cost Per Incomplete Audit $
3. Cost Per Additional Location $
4. Cost Per Hour for Large Audits $
47
APPENDIX E-2
COST SUBMITTAL FORM FOR TERRITORY B
Instructions to Offerors:
1. PLEASE PROVIDE A COST FOR EACH OF THE LISTED SERVICES.
2. YOU MUST COMPLETE SEPARATE COST INFORMATION FOR EACH
GEOGRAPHIC TERRITORY IN WHICH YOU PROPOSE TO PROVIDE
SERVICES.
TERRITORY B
1. Total Cost Per Completed Audit $
2. Cost Per Incomplete Audit $
3. Cost Per Additional Location $
4. Cost Per Hour for Large Audits $
48
APPENDIX E-3
COST SUBMITTAL FORM FOR TERRITORY C
Instructions to Offerors:
1. PLEASE PROVIDE A COST FOR EACH OF THE LISTED SERVICES.
2. YOU MUST COMPLETE SEPARATE COST INFORMATION FOR EACH
GEOGRAPHIC TERRITORY IN WHICH YOU PROPOSE TO PROVIDE
SERVICES.
TERRITORY C
1. Total Cost Per Completed Audit $
2. Cost Per Incomplete Audit $
3. Cost Per Additional Location $
4. Cost Per Hour for Large Audits $
49
APPENDIX E-4
COST SUBMITTAL FORM FOR TERRITORY D
Instructions to Offerors:
1. PLEASE PROVIDE A COST FOR EACH OF THE LISTED SERVICES
.
2. YOU MUST COMPLETE SEPARATE COST INFORMATION FOR EACH
GEOGRAPHIC TERRITORY IN WHICH YOU PROPOSE TO PROVIDE
SERVICES.
TERRITORY D – Out-of State
1. Total Cost Per Completed Audit $
2. Cost Per Incomplete Audit $
3. Cost Per Additional Location $
4. Cost Per Hour for Large Audits $
50
APPENDIX E-5
COST SUBMITTAL FORM FOR TERRITORY E
Instructions to Offerors:
1. PLEASE PROVIDE A COST FOR EACH OF THE LISTED SERVICES
.
2. YOU MUST COMPLETE SEPARATE COST INFORMATION FOR EACH
GEOGRAPHIC TERRITORY IN WHICH YOU PROPOSE TO PROVIDE
SERVICES.
TERRITORY E – Statewide
1. Total Cost Per Completed Audit $
2. Cost Per Incomplete Audit $
3. Cost Per Additional Location $
4. Cost Per Hour for Large Audits $
Note: Territory E includes territories A,B and C.
51
APPENDIX F
CONTRACTOR QUALITY COMPARISON
During the term of the contract, selected Offerors will be evaluated on the following
factors:
■ Total Premium Audit Results
■ Small Account Premium Audit Results
■ In-House Quality Review
■ Test Audit Results
■ Incomplete Audits
■ Late Audits
■ Audits over 90 days late
Each Selected Offeror will be ranked according to its performance, on a scale of 1-5, with
1 being the best and 5 being the worst. The average results for each Offeror will be computed
for all of the criteria and a final ranking determined. An Offeror will be provided with the results
of the review performed for it. SWIF may revise its quality review standards. Offerors will be
notified about any revisions.
52
APPENDIX F-1
AUDIT QUALITY REVIEW STANDARDS
In terms of percentages, the following applies:
Total Audits (Maximum error ratio allowed 2%)
Test Audits (Maximum error ratio allowed 20%)
Incomplete Audits (Maximum allowance 7%)
Late Audits (Maximum allowance 7%)
Audits over 90 Days
Late (Maximum allowance 3%)
Total Premiums Generated
on All Premium Audits (6% - Current SWIF Goal)
Total Premiums Generated
on Small Account Audits (10% - Current SWIF Goal)
(Audits under $10,000
in premium)
These Standards will be applied to evaluate selected Offeror’s performance during the term of
the contract.
53
APPENDIX H
AUDITORS PER GEOGRAPHIC TERRITORY
Offerors must provide the number of auditors who will be assigned to each Geographic Territory
in which the Offeror proposes to provide services.
Proposed Number of Auditors
Territory A
Territory B
Territory C
Territory D
Territory E
54
APPENDIX I - PROPOSAL COVER SHEET
COMMONWEALTH OF PENNSYLVANIA
STATE WORKERS’ INSURANCE FUND
RFP# SWIF 01-2012
Enclosed in three separately sealed submittals is the proposal of the Offeror identified
below for the above-referenced RFP:
Offeror Information:
Offeror Name
Offeror Mailing Address
Offeror Website
Offeror Contact Person
Contact Person’s Phone Number
Contact Person’s Facsimile
Number
Contact Person’s E-Mail Address
Offeror Federal ID Number
Offeror SAP/SRM Vendor
Number
Submittals Enclosed and Separately Sealed:
Technical Submittal
Disadvantaged Business Submittal
Cost Submittal
Signature
Signature of an official
authorized to bind the
Offeror to the provisions
contained in the
Offeror’s proposal:
Printed Name
Title
55
FAILURE TO COMPLETE, SIGN AND RETURN THIS FORM WITH THE
OFFEROR’S PROPOSAL MAY RESULT IN THE REJECTION OF THE OFFEROR’S
PROPOSAL
56
APPENDIX J, RIGHT TO KNOW (RTKL)
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