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REQUEST FOR PROPOSALS (RFP)
WORKERS COMPENSATION SELF-INSURED RESERVE ANALYSIS
OFFICE OF THE STATE COMPTROLLER
NOVEMBER 25, 2005
I. STATEMENT OF OBJECTIVES
The purpose of this RFP is to retain actuarial services to conduct an independent actuarial review of the loss reserve requirements in accordance with Generally Accepted Accounting Principles (GAAP) for the State of Connecticut's self-insured Workers Compensation program. Such loss reserve is to be calculated as of June 30th each year for the duration of the contract period.
As of June 30, 2004 The State's total Workers Compensation reserve requirements for loss liability consisted of case reserves on reported claims, additional developments on these case reserves, incurred but not reported claims, reopened claims, and claims in transit (reported but not recorded). The overall undiscounted loss reserve liability was estimated at between $256.2 and $297.2 million.
The State of Connecticut has provided workers compensation coverage to its employees on a self-insured basis since the early 1950's. It retains responsibility for all claims and does not purchase per claim or aggregate reinsurance. Since January of 2002, GAB Robins North America, Inc. has served as the State's claims administrator.
III. SCOPE OF WORK
OSC wishes to contract with a firm providing actuarial services with substantial expertise in workers' compensation programs. The loss reserve requirement is needed for the State's Comprehensive Annual Financial Report (CAFR), which is prepared in accordance with GAAP.
The contract will be for the four-year period, December 19, 2005 to June 30, 2009, as follows:
|Year 1||Valuation as of June 30, 2005|
|Year 2||Valuation as of June 30, 2006|
|Year 3||Valuation as of June 30, 2007|
|Year 4||Valuation as of June 30, 2008|
The contractor will be expected to produce an annual loss reserve amount for the State's Workers Compensation Fund. The calculation of the annual loss reserve amount must comply with the requirements of GAAP as established by the Governmental Accounting Standards Board. Loss reserves must be calculated by department. An annual actuarial report must be produced containing the following information:
IV. EXPECTED RESULTS
Production of an annual actuarial report as defined in the "scope of work" section above on or before the third Monday in February. For the first year of the contract the completion date is negotiable.
V. PROPOSAL SUBMISSION REQUIREMENTS
Each firm that wishes to be considered for the contract shall submit seven (4) copies of their proposal to be delivered to the following address no later than 3:00 p.m. (local time), Wednesday, December 14, 2005.
Director, Budget and Financial Analysis Division
Office of the State Comptroller
55 Elm Street, Room 601
Hartford, CT 06106
Proposals must include the following:
The title page must indicate the name of the firm, address, telephone number, name and title of the firm's contact person for this response, and the date.
The letter must include the name of the individual(s) proposed to serve the state on this engagement, a rationale for the firms ability to provide the requested services to the state, and a statement of positive commitment to the availability of the firm's staff to provide the required services.
This summary must include the resume(s) of the individual(s) proposed to serve the state on this engagement. All relevant experience of the firm as well as the individual(s) assigned should be detailed within this section.
The profile must include the size and location of the firm (including the location of the Connecticut office and the number of employees attached to the Connecticut office), the number of years that the firm has been in business, and relevant experience in servicing state and local governments.
Names, addresses, and phone numbers of individuals who can serve as references for the firm must be provided. The references provided should have direct experience working with the firm. At its option, the firm may provide sample work to illustrate its relevant experience. The state is not responsible for any costs incurred by any party in responding to this request for proposal.
The state desires costs to be detailed on an hourly rate basis with a not to exceed price for each year of the contract.
The proposal should include a summary of the bidder's experience with affirmative action. This information should include a summary of the bidder's affirmative action plan and the bidder's affirmative action policy statement.
VI. INSTRUCTIONS TO VENDORS
Any prospective contractors must be willing to adhere to the following conditions and must positively acknowledge such intent "to comply with the provisions of Section VII of this request for proposal" in the Contract Compliance section of the proposal submission:
VIII. EVALUATION OF PROPOSALS
Each proposal will be evaluated by a screening committee against the following criteria to determine which vendor is most capable of implementing the state's requirements.
XI. Rights Reserved to the State of Connecticut
The state reserves the right to award in part, to reject any and all proposals in whole or in part, to waive technical defects, irregularities and omissions if, in its judgment, the best interest of the State of Connecticut will be served.