invitation to negotiate No. 13-0005
FOR
investment portfolio accounting software and services
February 26, 2013
Refer ALL Inquiries to:
Christina Hennekes, Procurement Officer
Purchasing Department
Citizens Property Insurance Corporation
2101 Maryland Circle
Tallahassee, Florida 32303
Phone (850) 521-8405
E-Mail:
Table of Contents
Section 1 – Introductory MaterialS
1.1 Statement of Purpose
1.2 Citizens’ Background
1.3 Taxes
1.4 Contract Term
1.5 Calendar of Events
1.6 Procurement Officer Contact Information
1.7 No Contact or Lobbying
Section 2 – Scope of Services
2.1 Project Background
2.2 Definitions
2.3 System Requirements and Functionality
2.4 Systems Acceptance
2.5 General Services
2.6 End-User Training
2.7 Support
2.8 Service Level Requirements
2.9 Deliverables and Deliverables Schedule
2.10 Performance Measures
2.11 Invoicing and Payment Requirements
2.12 Knowledge Transfer Plan
section 3 – RESPONSE instructions & EVALUATION CRITERIA
3.1 Questions
3.2 Submission of Response
3.3 Format and Contents
3.4 Review and Evaluation Process
3.5 Vendor’s Representation and Authorization
Section 4 – solicitation general conditions
4.1 Acceptance / Rejection
4.2 Appeal Process
4.3 Corporate Change
4.4 Costs of Preparing Solicitation
4.5 Disposal of Solicitations
4.6 Electronic Posting of Award
4.7 Firm Response
4.8 Rules for Withdrawal
4.9 Minor Irregularities / Material Deviations
4.10 Misrepresentation
4.11 No Prior Involvement and Conflicts of Interest
4.12 Rejection of Responses
4.13 Verbal Instructions
4.14 Responses Submitted Are Public Records
Section 5 – standard TERMS and CONDITIONS
5.1 Public Records
5.2 Data Export Restriction
5.3 Jurisdiction and Venue
5.4 Name/Logos
5.5 Security and Confidentiality
5.6 Invoicing and Payment
5.7 Governmental Restrictions
5.8 Citizens’ Code of Ethics and Conflict of Interest Disclosure Form
5.9 Vendor’s Records
5.10 Right to Audit Records
5.11 Compliance with Laws
5.12 Convicted Vendor List
5.13 Suspension of Work
5.14 Termination Without Cause
5.15 Termination For Cause
5.16 Dispute Resolution
5.17 Warranty of Authority
5.18 Warranty of Ability to Perform
5.19 Warranty of Truthfulness and Accuracy
5.20 Entire Agreement
5.21 Modification of Terms
5.22 Waiver
5.23 Execution in Counterparts
5.24 Severability
5.25 Headings
5.26 Assignment/Subcontracting
5.27 Successors and Assigns
5.28 Force Majeure
5.29 Vendor Travel Reimbursement Guidelines
5.30 Inspection at Vendors’ Site
5.31 Indemnification
5.32 Insurance
5.33 Installation
Section 6 – OPTIONAL SOFTWARE OR TECHOLOGY CONTRACTUAL TERMS AND CONDITIONS
6.1 Services and Vendor Personnel
6.2 Minimum Requirements for Operating Environment
6.3 Software and Maintenance Acceptance Tests
6.4 Failure to Successfully Complete Acceptance Tests
6.5 Encryption of Mobile Devices
6.6 No Viruses or Disabling Code
6.7 Safeguarding of Citizens Materials and Property
6.8 Vendors’ Ownership of Software
6.9 Infringement
6.10 Warranty, Title, and Indemnification
6.11 Assignment by Citizens
ATTACHMENTS:
The below list of forms and documents pertain to this competitive solicitation. It is the Vendor’s responsibility to review and submit all requested forms and information with their Response.
Attachment A – Vendor Conflict of Interest Disclosure Form (Form No.: 501b)
Attachment B – Litigation, Claims or Regulatory Action Form
Attachment C – IT Security Questionnaire
Attachment D – IT Requirements Questionnaire
Attachment E – Disaster Recovery Questionnaire
Attachment F – Price Sheet
Attachment G – Sample of Citizens 2011 Annual Investment Holdings
Attachment H – Citizens Code of Ethics
Attachment I – Vendor Travel Reimbursement Guidelines
mandatory SUBMISSION requirementsIn order to ensure that all required information is submitted, provided below is a list of mandatory submission requirements which the Vendor shall submit with their Response. Failure to meet these requirements and submit applicable information in your Response will result in your Response being disqualified and no further evaluation will take place.
REQUIREMENT / SECTION(S)
Response submitted according to the deadline and to the correct location / Section 3.2, Submission of Response
One (1) signed original hard copy of the Response / Section 3.3.1, Original Hardcopy Response
One (1) original compact disc (CD) of the Response / Section 3.3.2, Original CD Response
Additional mandatory DOCUMENTS/INFORMATION
Provided below is a checklist of additional mandatory information/documents that are also required. If this information or documents are not included in Vendors’ original submission Response, the Vendor will have three (3) Business Days after the Responses are due to submit this information. Failure to submit this information within three (3) Business Days of the Response Due Date will result in your Response being disqualified and no further evaluation will take place.
REQUIREMENT / PARAGRAPH(S) of ITN
Attachment A, Vendor Conflict of Interest Disclosure Form / Paragraph 3.3.4, Mandatory Documents and Information
Attachment B, Litigation, Claims or Regulatory Action Form / Paragraph 3.3.4, Mandatory Documents and Information
Attachment C, IT Security Questionnaire / Paragraph 3.3.4, Mandatory Documents and Information
Attachment D, IT Requirements Questionnaire / Paragraph 3.3.4, Mandatory Documents and Information
Attachment E, Disaster Recovery Questionnaire / Paragraph 3.3.4, Mandatory Documents and Information
Vendors’ Service Organization Control Report (SOC 1SM) SSAE 16 Type 2 Report (with bridge letter if required) / Paragraph 3.3.4, Mandatory Documents and Information
Corporate Change: See Section 4.3 Corporate Change for further details, if applicable. / Paragraph 3.3.4, Mandatory Documents and Information
Attachment F, Price Sheet / Paragraph 3.3.5, Pricing
ADDITIONAL SUBMISSION REQUIREMENTS
Provided below is a checklist list of additional submission requirements that should be submitted if applicable to Vendors’ Response:
One (1) redacted copy of Response on CD (if applicable) / Section 3.3.3, Redacted Copy of Response
Recommended VENDOR mandatory requirements
All Vendors recommended for award shall submit the following documents prior to the commencement of services.
REQUIREMENT / ATTACHMENT / SECTION(S)
Current W-9 Form / N/A
Insurance Certificate / Section 5.32, Insurance
SPECIAL NOTE(S):
The below conditions pertain to this competitive solicitation and are important for each Vendor to read and understand. It is the Vendors’ responsibility to review and submit all requested forms and information with their Response in accordance with all language specified in this solicitation.
1. Mandatory Requirement: When an item is identified in this solicitation as “shall submit” such item is a mandatory component of the Vendors’ Response. Failure to provide the specified document or information identified as “shall submit” in your Response or as otherwise indicated will result in rejection of the Response.
SECTION 1
Introductory MaterialS
1.1 Statement of Purpose: Citizens Property Insurance Corporation (“Citizens”) is seeking Responses from qualified Vendors to provide Citizens with a Vendor Hosted web-based Investment Portfolio Accounting Software System and Investment Accounting Services as outlined in Section 2, Scope of Services.
Vendors’ Proposed System must have the capability to track, value, reconcile and account for over 109 open/active invested asset accounts for Citizens’ approximate $15.3 billion fixed-income portfolio at par value, amortized cost and market value. As the consolidated book of record, the Investment Portfolio Accounting Software System in conjunction with service from Vendors’ dedicated team of subject matter experts is expected to actively provide current and future business, regulatory and operational reporting, special projects, functional, and technical requirements; for multiple defined End-Users, three (3) business account lines, and two (2) or more funding source types.
Currently, Citizens has three (3) business accounts: PLA (Personal Lines Insurance), CLA (Commercial Lines Insurance), and Coastal (High-Risk and Windstorm Insurance). By statute, each of these accounts must be tracked, valued, and accounted for separately to include preparation of consolidated financial statements for all three (3) of Citizens’ business accounts. Citizens has two (2) basic funding source types: bond and operating proceeds. Each funding type must be tracked, valued, and accounted for separately within all three (3) of the business accounts.
The Awarded Vendor will need to be prepared to begin the conversion process immediately upon Contract award. It is Citizens’ current intent to have a fully executed Contract by September 2013, and allow the Awarded Vendor a 6 to 9 month timeframe for ramp-up and transition.
1.2 CITIZENS’ BACKGROUND: In 2002, the Florida Legislature created Citizens by combining the Florida Residential Property and Casualty Joint Underwriting Association (“FRPCJUA”) and the Florida Windstorm Underwriting Association (“FWUA”). Organized as a not-for-profit government entity, Citizens public purpose is to provide residential, commercial and casualty insurance coverage to owners of certain properties in the State of Florida, who are not able to purchase coverage in the private insurance market.
Citizens’ is governed by Section 627.351(6), Florida Statutes, as amended (the “Act”), and operates pursuant to a Plan of Operation (the “Plan”) that is approved by the Financial Services Commission of the State of Florida. Citizens operations are supervised by a Board of Governors comprised of eight (8) members who are appointed by the Governor, CFO, President of the Senate and Speaker of the House. Additional information about Citizens is available at Citizens’ website: https://www.citizensfla.com.
1.3 TAXES: Citizens is a State of Florida legislatively created governmental entity which does not pay Federal Excise or State sales taxes on direct purchases of tangible personal property. Citizens will not pay for any personal property taxes levied on Vendor or for any taxes levied on employees’ wages.
1.4 CONTRACT TERM: The Contract term is anticipated to be five (5) years, and, at Citizens’ sole discretion, have two (2) optional 2-year renewal terms. All terms, conditions and pricing will remain fixed for the term of the Contract and any renewal options.
1.5 Calendar of Events: Listed below are this solicitations’ important events and the corresponding dates and times. These timeframes are subject to change at Citizens’ sole discretion. It is a Vendor’s responsibility to comply with these timeframes and to monitor Citizens’ website for any changes.
CALENDAR OF EVENTS /DATE: / TIME: / ACTIONS: /
February 26, 2013 / Solicitation Released
March 12, 2013 / 5:00 PM ET / Questions Deadline: Deadline for submission to Citizens (as specified in Paragraph 3.1)
March 21, 2013 / 5:00 PM ET / Answers Posted: Answers to Questions posted on Citizens’ website.
April 3, 2013 / 2:00 PM ET / Response Deadline: Deadline for all Responses to be submitted to Citizens.
April 4 to April 22, 2013 / Review/Evaluation of Written Responses
May 2, 2013 / Anticipated Date for Public Evaluation Committee Meeting to determine which Vendors will proceed to Demonstrations/Negotiations
DEMONSTRATIONS/NEGOTIATIONS:
May 13 and May 14, 2013 / Anticipated Date for Vendor Demonstrations/Negotiations
June 3, 2013 / Anticipated Date for Public Evaluation Committee to announce Recommendation of Award
June 21, 2013 / Board of Governors Meeting
after award of Contract:
September 2013 / Contract Begins (Tentative)
6-9 Months / Ramp- Up and Transition Period
July 2014 / Services Begin
1.6 procurement officer CONTACT INFORMATION: The Procurement Officer and point of contact for this solicitation is:
Christina Hennekes, Procurement Officer
Purchasing Department
Citizens Property Insurance Corporation
2101 Maryland Circle
Tallahassee, Florida 32303
Phone (850) 521- 8405
E-Mail:
1.7 No Contact or Lobbying: Vendors shall not contact, directly or indirectly, any employee, representative or Board of Governors member for the purposes of influencing or attempting to influence an award or other final decision. A Vendor may, as an exception to this prohibition, contact the named Procurement Officer or their designee. The provisions of this section shall begin the date this solicitation is released and continue until the earlier of: the Board rendering an award for this solicitation, or the rejection of all Responses. Any contact prohibited by this section may disqualify a Vendor from further consideration.
SECTION 2
SCOPE OF SERVICES
2.1 Project Background: Citizens’ governmental status statutorily requires that our financial statements for all three (3) of Citizens’ business accounts are prepared separately on a monthly basis. Because of Citizens’ insurance company status and GAAP standards, Citizens’ financial statements must also be prepared on a quarterly basis. In conformity with Florida Statutes and accounting rules prescribed by the Florida Office of Insurance Regulation (“FOIR”), Citizens’ financial statements are prepared in accordance with the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual, subject to deviations prescribed or permitted by the FOIR.
Citizens uses a book value roll-forward approach on a monthly basis to verify, reconcile, and record investment activity to the general ledger via the use of Investment Portfolio Accounting Software System generated reports. Citizens’ general ledger account code structure is congruent with the Annual Statement Line (ASL) number in the Yellow Book, which is regulated by the NAIC as well. Specifically, trade activity and other investment related transactions are loaded into the Investment Portfolio Accounting Software System (“System”) based on the Custodians’ audited bank statements by business line, funding type, and investment account respectively. Once all database transactions and receipts are verified and agree with the Custodian Bank, Citizens uses specific system reports as outlined in Section 2.5.2, Monthly Reporting Services to record: 1) realized gains/losses, 2) premium amortization, 3) discount accretion, 4) acquisitions, 5) dispositions, 6) income accruals/receipts, and 7) schedule line maturity classifications for all accounts.
From a portfolio perspective, Citizens currently has an approximate $15.3 billion fixed-income portfolio comprised of $9.4 billion in operating bond proceeds and $5.9 in note bond proceeds as of November 30, 2012. Approximately 89% of the portfolio is managed by 12 external investment managers, who have been given the authority to make investments on behalf of Citizens. Citizens accounts for six (6) Senior Secured Serial Bond issuances with a principal balance of $5.7 billion; five (5) pre-event bonds and one (1) post event bond. The PLA and CLA accounts share one (1) outstanding bond issuance with a principal balance amount of $1.5 billion. The Coastal Account has five (5) outstanding bond issuances with a combined principal balance amount of $4.2 billion. All bonds are secured by and payable from pledged revenues.
Investments in debt securities are valued at cost and amortized under the valuation standards of the NAIC. On a GAAP basis, investments in debt securities are generally reported at fair value. According to NAIC guidelines for property and casualty insurance companies, Citizens classifies all securities based on days to maturity from Citizens’ date of acquisition. Long-term bonds (D1) category includes securities and certificate of deposits that mature beyond one (1) year. Short-term bonds (DA1) category includes securities that mature in one (1) year or less. Cash Equivalents (E2) category includes securities that mature in 90 days or less. Certificate Deposits (E1) category is considered cash if it matures in one (1) year or less.