State of Connecticut

This page was last updated on: June 22, 2015

NOVEMBER 25, 2005


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.


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:


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.


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.

John Clark
Director, Budget and Financial Analysis Division
Office of the State Comptroller
55 Elm Street, Room 601
Hartford, CT 06106
(860) 702-3350

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.


  1. Vendors who are furnished a copy of this RFP and intend to make a proposal are requested to submit a letter of intent by Monday, December 5, 2005. Those not intending to make a proposal are asked to submit a negative reply.
  2. Questions regarding this request for proposals must be submitted in writing by Monday, December 5, 2005. Those vendors submitting a letter of intent will receive copies of all written questions and answers regarding this request for proposals.
  3. The firm or firms selected as finalists after an initial evaluation may be required to give a presentation to the selection committee.
  4. All responses to this request for proposals must conform to these instructions. Failure to conform may be considered appropriate cause for rejection of the response.
  5. Delivery of responses must be in a sealed envelope or box. The name and address of the vendor must appear on the envelope or box. FAX responses are not acceptable.
  6. Vendors must structure the response as outlined in this request for proposals.
  7. The state of Connecticut is exempt from the payment of excise, transportation, and sales taxes imposed by the federal and state government. Such taxes must not be included in the cost.
  8. The proposal must be signed by an authorized official of the vendor. The proposal must provide the name, title, address and telephone number for individuals with authority to negotiate and contractually bind the company.
  9. All cost estimates will be considered as "not to exceed" quotations.
  10. There will be no bidders' conference.


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:

  1. The State of Connecticut reserves the right to accept any or all proposals submitted for consideration. All proposals will remain sealed until the deadline for submission has passed.
  2. Any contract awarded as a result of this request for proposals must be in full conformance with the statutory requirements of the State of Connecticut.
  3. All proposals submitted in response to this request for proposals are to be the sole property of the State of Connecticut and will become subject to the provisions of the Freedom of Information statutes.
  4. Any product, whether acceptable or unacceptable developed under a contract awarded as a result of this request for proposals is to be the sole property of the State of Connecticut unless explicitly exempted under contractual provision.
  5. The timing and sequence of events relating to this request for proposals will be determined by the State of Connecticut.
  6. Any price offerings by vendors must be valid for a period of 120 days from the due date of the vendor's proposal.
  7. Any alleged oral agreement made by a vendor with any agency or employee will be superseded by the written agreement.
  8. The State of Connecticut reserves the right to amend or cancel this request for proposals.
  9. The State of Connecticut reserves the right to reject the proposal of any vendor that is in default of any prior contract for misrepresentation.
  10. The State of Connecticut reserves the right to correct inaccurate awards resulting from its clerical errors.
  11. Proposals are subject to rejection in whole or in part if they limit or modify any of the terms and conditions and/or specifications of this request for proposals.
  12. A vendor, if requested, must be prepared to present evidence of experience, ability, service facilities, and financial standing necessary to meet the requirements set forth or implied in the proposal.
  13. No additions or changes to the original proposal will be accepted after submittal.
  14. By responding, the vendor implicitly states that the proposal is not made in connection with any competing vendor submitting a separate response to this request for proposals, and is in all respects submitted without collusion or fraud. It is further implied that the vendor had no involvement with employees of the Office of the State Comptroller in the development of this request for proposals.
  15. The proposal must include a summary of the bidder's experience with Affirmative Action. This information is to include a summary of the bidder's Affirmative Action Plan and the bidder's Affirmative Action Policy Statement.
  16. It is mutually understood and agreed that the contractor shall not assign, transfer, convey, sublet or otherwise dispose of his contract or his right, title, or interest therein, or his power to execute such contract, to any other person, firm or corporation, without the previous written consent of the Office of the State Comptroller.


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.