SPECIAL NOTICE
B -- Intent to sole source. Rate of Return Update 2008.
- Notice Date
- 4/16/2008
- Notice Type
- Special Notice
- Contracting Office
- Department of the Interior, Office of the Secretary, National Business Center GovWorks, NBC - Acquisition Services Directorate 381 Elden Street, Suite 4000 Herndon VA 20170
- ZIP Code
- 20170
- Description
- Under the authority fo Federal Acquisition Regulation (FAR) 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements," the Department of the Interior/National Business Center, on behalf of US Department of Agriculture, Risk Management Agency (RMA), intends on awarding a sole source contract to Milliman, Inc. The overall purpose of this acquisition is to determine whether returns by crop insurance companies reinsured by the Federal Crop Insurance Corporation (FCIC) are higher or lower than a reasonable rate of return. To achieve this purpose the contractor shall review the reasonable rate of return previously derived and update it as necessary. In addition, a rate of return by crop insurance companies shall also be derived and compared to the reasonable rate of return. These analyses will be used by the USDA - Risk Management Agency (RMA) to evaluate the Standard Reinsurance Agreement (SRA) between crop insurance companies and the FCIC. Milliman, Inc. is a well-respected consulting and actuarial firm that provides financial and actuarial analyses in the areas of property and casualty insurance, investments, financial services, healthcare, employee benefits, healthcare, and life insurance. Milliman provides analyses to organizations including business, financial, government, union, education, and nonprofit organizations. In 2002, Milliman, Inc. won an open and competitive bid to provide a wide-range of analyses regarding the Standard Reinsurance Agreement cited in Section 3 above. The methodologies in two of their analyses (Reasonable Rate of Return and Historical Rate of Return) have been adopted by the RMA to determine whether profits by crop insurance companies are reasonable. The Milliman methodology is unique in that it converts returns from a statutory accounting basis to a GAAP (Generally Accepted Accounting Principles) basis. This allows a direct comparison of Return on Equity (ROE) by other property and casualty insurance companies (or any other company filing an Annual Report). Since the 2002 analyses, some of the data sources and available variables have changed. As developer of the agency adopted methodologies, only Milliman, Inc. can determine how to use current data and variables within the adopted methodologies and still maintain consistency with previous analyses. Since insurance analyses rely heavily on historical experience, it is important to maintain consistency so that changes in ROE are due to changes in actual outcomes rather than changes in methodologies. Milliman, Inc. will provide that consistency. Any questions or inquiries please contact Cathy Boulware at (703) 964-3650 or cathy.boulware@aqd.nbc.gov.
- Web Link
-
FedBizOpps Complete View
(https://www.fbo.gov/?s=opportunity&mode=form&id=9fd2d05fe56b7150a05249495d0e0704&tab=core&_cview=1)
- Record
- SN01555256-W 20080418/080416220228-9fd2d05fe56b7150a05249495d0e0704 (fbodaily.com)
- Source
-
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