request for proposal€¦ · request for proposal tender name: provision of general insurance...

BANK OF JAMAICA

Request for Proposal

TENDER NAME: PROVISION OF GENERAL

INSURANCE PLACEMENT

RFP#: 2020-42-01-01

DEADLINE FOR SUBMISSION:

DATE: 25 August 2020

TIME: 3:00 P.M.

ISSUE DAY and DATE: 25 July 2020

Foreword

This standard bidding document (SBD) for the Procurement of Insurance Broker Services has been prepared by the Ministry of Finance (MOF). Its use is mandatory for the procurement of Insurance Broker Services within relevant thresholds.

Further edits to ensure compliance with the Act and its regulations may be required by the procuring entity. Those wishing to submit comments or questions on this document or to obtain additional information are encouraged to contact:

Chief Public Procurement Policy Officer,

Office of Public Procurement Policy,

30 National Heroes Circle

Kingston 4

Jamaica

[email protected]

1

B I D D I N G D O C U M E N T S

Issued on: 25 July 2020

for

Provision of General Insurance Placement

RFP No: 2020-42-01-01

Procuring Entity: Bank of Jamaica

2

Abbreviations and Acronyms

Act Public Procurement Act, 2015 BDS Bidding Data Sheet Commission Public Procurement Commission e-GP electronic Government Procurement System GCC General Conditions of Contract GoJ Government of Jamaica ITB Instructions to Brokers JV Joint Venture MOF Ministry of Finance NCB National Competitive Bidding Office Office of Public Procurement Policy regulations The Public Procurement Regulations SBD Standard Bidding Document STC Special Terms and Conditions TAJ Tax Administration Jamaica TCL Tax Compliance Letter TS Technical Specifications UNCITRAL United Nations Commission on International Trade Law

3

Table of Contents

PART 1 – Bidding Procedures ............................................................................................. 4

Section I. Instructions to Brokers ........................................................................................5

Section II. Bidding Data Sheet (BDS) ................................................................................21

Section III. Evaluation and Qualification Criteria ..........................................................25

Section IV. Bidding Forms ...................................................................................................29

PART 2 – Schedule of Requirements .............................................................................. 40

Section V. Schedule of Requirements ..............................................................................41

Section VI Agreement ...........................................................................................................51

Section VII. Contract Forms ...............................................................................................64

4

PART 1 – Bidding Procedures

Section I Instructions to Brokers 5

Section I. Instructions to Brokers

Table of Clauses

A. General .............................................................................................................................. 7

1. Scope of Proposal ....................................................................................................... 7

2. Source of Funds ............................................................................................................. 7

4 Eligible bidders ............................................................................................................ 7

B. Contents of Bidding Documents ................................................................................... 8

6. Sections of Bidding Documents .................................................................................... 8

7. Clarification of Bidding Document .............................................................................. 9

8. Pre-proposal meeting and site visit ......................................................................... 9

9. Amendment of Bidding Documents .......................................................................... 10

C. Preparation of proposals .............................................................................................. 10

10. Cost of Bidding ............................................................................................................ 10

11. Language of Proposal .................................................................................................. 10

12. Documents Comprising the Proposal....................................................................... 10

13. Proposal Submission Form and Price Schedules .................................................... 11

14. Alternative proposals ................................................................................................. 11

15. Proposal Prices and Discounts .................................................................................. 11

16 Currencies of proposal ............................................................................................. 12

17 Documents Establishing the Conformity of the insurance broker services and related services ......................................................................................................... 12

18 Documents Establishing the Qualifications of the broker ................................. 12

19 Period of Validity of proposals ............................................................................... 13

20 Proposal Security ...................................................................................................... 13

21 Format and Signing of proposal .............................................................................. 14

D. Submission and Opening of proposals .......................................................................... 14

22 Submission, Sealing and Marking of proposals ..................................................... 14

23 Deadline for Submission of proposals .................................................................... 15

24 Late proposals ........................................................................................................... 15

25 Withdrawal and Modification of proposals ........................................................... 15

26 Proposal Opening ...................................................................................................... 16

E. Evaluation and Comparison of proposals .................................................................. 16

27 Confidentiality........................................................................................................... 16

28 Clarification of proposals ........................................................................................ 17

29 Responsiveness of proposals ................................................................................... 17

30 Non-conformities, Errors and Omissions ............................................................... 17

31 Preliminary Examination of proposals .................................................................. 18

32 Examination of Terms and Conditions; Technical Compliance ........................ 18

33 Conversion to Single Currency ................................................................................ 18

34 Evaluation of proposals ............................................................................................ 18

35 Comparison of proposals ......................................................................................... 19

Section I Instruction to Brokers 6

36 Procuring Entity’s Right to Accept Any Proposal, and to Reject Any or All proposals .................................................................................................................... 19

F. Award of Contract ............................................................................................................ 19

37 Award Criteria ........................................................................................................... 19

38 Notification of Award and Standstill Period ........................................................ 19

39 Signing of Contract ................................................................................................... 20


Section I. Instructions to Brokers

A. General 1. Scope of Proposal

1.1 The procuring entity specified in the Bidding Data Sheet (BDS), issues this standard bidding document (SBD) for the supply of insurance broker services as specified in Section V, Schedule of Requirements. The name and identification number of this national competitive bidding (NCB) procurement are specified in the BDS. The name, identification, and category of risks are provided in the BDS.

1.2 Throughout this SBD:

(a) the term “in writing” means a communication in hand or machine written type and includes messages by facsimile, e-mail and other electronic forms of communications with proof of receipt.

(b) “Electronic communications” means the transfer of information using electronic or similar media and the recording of information using electronic media.

(c) if the context so requires, “singular” means “plural” and vice versa; and

(d) “day” means calendar day.

1.3 Bidding will be conducted either in hard copy or using the Government of Jamaica Electronic Procurement (GOJEP) System as specified in the BDS.

2. Source of Funds

2.1 The procuring entity has received public funds toward the cost of the project named in the BDS for the execution of this procurement.

3. Fraud, Corruption and Other Prohibited Practices

3.1 The Government of Jamaica requires that all parties involved in the procurement proceedings and execution of such contracts observe the highest standard of ethics.

3.2 For the purposes of this provision, offences of fraud and corruption are defined in Part VII of the Public Procurement Act, 2015 (Act) and any other Act relating to corrupt activities in Jamaica.

3.3 A person who commits an offence under the Act or any other Act relating to corrupt activities in Jamaica shall:

(a) be liable for conviction under the provisions of the Act or any other Act relating to corrupt activities in Jamaica;

(b) have their bid rejected if it is determined that the bidder is not in compliance with the provisions of the Act, the regulations or any other Act relating to corrupt activities in Jamaica; and

(c) risk other sanctions provided for in the Act or the regulations.

3.4 Furthermore, brokers shall be aware of the provision stated in Clause 13 of the Agreement.

4 Eligible bidders

4.1 In accordance with the Public Procurement Regulations, 2018, Section 17, bidders shall have to demonstrate that they have paid all taxes, duties, fees and other impositions as may be levied in Jamaica at the time of bid submission.


4.2 Bidders shall provide such evidence of their continued eligibility as the procuring entity may reasonably request.

5 Disqualified Bidders

5.1 Failure to directly obtain the bidding documents from the procuring entity will result in disqualification from the procurement proceedings.

5.2 A bidder shall not have a conflict of interest. All bidders found to have a conflict of interest shall be disqualified. Bidders may be considered to have a conflict of interest with one or more parties in this bidding process, if they are or have been associated in the past, with a firm or any of its affiliates which have been engaged by the procuring entity to provide consulting services for the preparation of the design, specifications, and other documents to be used for the procurement of the goods to be purchased under this bidding document; or that has been hired (or is proposed to be hired) by the procuring entity as Project Manager for the Contract.

5.3 A bidder that is ineligible in accordance with ITB Clause 3, at the date of contract award, shall be disqualified.

5.4 A Bidder falling in any of the disqualification grounds in sections 18 and 19 of The Public Procurement Regulations 2018 shall be disqualified.

B. Contents of Bidding Documents

6. Sections of Bidding Documents

6.1The bidding documents consist of Parts 1, 2, and 3, which include all the Sections indicated below, and should be read in conjunction with any Addendum issued in accordance with ITB Clause 9.

PART 1 Bidding Procedures

• Section I. Instructions to Brokers (ITB)

• Section II. Bidding Data Sheet (BDS)

• Section III. Evaluation and Qualification Criteria

• Section IV. Bidding Forms

PART 2 Supply Requirements

• Section V. Schedule of Requirements

PART 3 Contract

• Section VI. General Conditions of Contract (GCC)

• Section VII. Special Conditions of Contract (SCC)

• Section VIII. Contract Forms

6.2 “Bidding documents” means the SBD developed and prescribed by the Office of Public Procurement Policy (Office) for use in public procurement proceedings and all amendments made to the document for the purposes of a procuring entity and documents attached or incorporated by reference, that individually or collectively:

(a) invite proposals;

(b) establish the objects of a proposal;

(c) specify the conditions of a proposed procurement contract; and

(d) establish the applicable bidding procedures.

6.3 Unless obtained directly from the procuring entity, the procuring entity is not responsible for the completeness of the bidding documents and their addenda.


6.4 The broker is expected to examine all instructions, forms, terms, and specifications in the bidding documents. Failure to furnish all mandatory information or documentation required by the bidding documents shall result in the rejection of the proposal.

7. Clarification of Bidding Document

7.1 A prospective broker requiring any clarification of this bidding document shall contact the procuring entity in writing at the procuring entity’s address specified in the BDS. The procuring entity will respond in writing to any request for clarification, provided that such request is received prior to the period specified in the BDS. In the case of electronic bidding clarifications should be submitted through the GOJEP System. The procuring entity shall forward copies of its response to all those who have acquired the bidding documents directly from it, including a description of the inquiry but without identifying its source.

7.2 Should the procuring entity deem it necessary to amend the bidding documents as a result of a clarification or the pre-proposal meeting, it shall do so following the procedure under ITB Clause 9.

8. Pre-proposal meeting and site visit

8.1 The broker may wish to visit and examine the site(s) of the project and obtain for itself, at its own responsibility and risk, all information that may be necessary for preparing the proposal and entering into the Contract. The costs of visiting the site(s) shall be at the broker’s own expense.

8.2 The procuring entity will arrange for the broker and any of its personnel or agents to gain access to the relevant site(s), provided that the broker gives the procuring entity adequate notice of a proposed visit of at least fourteen (14) days. Alternatively, the procuring entity may organize a site visit or visits concurrently with a pre-proposal meeting, if one is required. Failure of a broker to attend a site visit will not be a cause for its disqualification.

8.3 No site visits shall be arranged or scheduled after the deadline for the submission of the proposals and prior to the award of Contract.

8.4 The broker and any of its personnel or agents will be granted permission by the procuring entity to enter upon its premises and lands for the purpose of such visit, but only upon the express condition that the broker, its personnel, and agents will release and indemnify the procuring entity and its personnel and agents from and against all liability in respect thereof, and will be responsible for death or personal injury, loss of or damage to property, and any other loss, damage, costs, and expenses incurred as a result of the inspection.

8.5 The broker’s designated representative is invited to attend a pre-proposal meeting, if provided for in the BDS. The purpose of the meeting will be to clarify issues and to answer questions on any matter that may be raised at that stage. Nonattendance at the pre-proposal meeting will not be a cause for disqualification of a broker.

8.6 The broker is requested, as far as possible, to submit any questions in writing, to reach the procuring entity not later than the number of days before the pre-proposal meeting, as indicated in the BDS.

8.7 Minutes of the pre-proposal meeting, including the text of the questions raised, without identifying the source, and the responses given, together with any responses prepared after the meeting, will be transmitted promptly to all brokers who have been invited.


9. Amendment of Bidding Documents

9.1 At any time prior to the deadline for submission of proposals, the procuring entity may, for any reason, whether at its own initiative or in response to a clarification requested by a prospective broker, amend the bidding documents. Later amendments on the same subject modify or replace earlier ones.

9.2 Amendments will be provided in the form of Addenda to the bidding documents, which will be sent in writing to all prospective brokers that received the bidding documents from the procuring entity. Addenda will be binding on brokers. Brokers are required to immediately acknowledge receipt of any such Addenda. It will be assumed that the amendments contained in such Addenda will have been taken into account by the broker in its proposal. In the case of electronic bidding any amendments to the bidding documents will be issued through the GOJEP System.

9.3 In order to afford prospective brokers reasonable time in which to take the amendment into account in preparing their proposals, the procuring entity may, at its discretion, extend the deadline for the submission of proposals, in which case, the procuring entity will notify all brokers in writing of the extended deadline for the submission of proposals, pursuant to ITB Sub-Clause 23.2.

9.4 If the clarification results in the ITB being materially inaccurate the procuring entity shall withdraw and reissue the ITB. Brokers who obtained these original documents will be permitted to participate without penalty.

C. Preparation of proposals

10. Cost of Bidding

10.1 The broker shall bear all costs associated with the preparation and submission of its proposal, and the procuring entity shall not be responsible or liable for those costs.

10.2 The procuring entity shall incur no liability by virtue of it exercising its power to cancel a procurement in accordance with Sections 41 and 44 of the Act.

10.3 Notwithstanding ITB Sub-Clauses 10.1 and 10.2, should the Procurement Review Board, following an application for reconsideration decide that the actions of the procuring entity were not in compliance with the provisions of the Act or the regulations, the Procurement Review Board may require the payment of compensation for any reasonable costs incurred by the broker. Any payment shall be limited to the costs of the preparation of the proposal or the costs relating to the application, or both.

11. Language of Proposal

11.1 The proposal, as well as all correspondences and documents relating to the proposal exchanged by the broker and the procuring entity, shall be written in the English language. Supporting documents and printed literature that are part of the proposal may be in another language provided they are accompanied by an accurate translation of the relevant passages into the English language, in which case, for purposes of interpretation of the proposal, such translation shall govern.

12. Documents Comprising the Proposal

12.1 The proposal shall comprise the following;

(a) Proposal Submission Form and the applicable Price Schedules, in accordance with ITB Clause 13.1;

(b) Proposal security in accordance with ITB Clause 20, if required;

(c) alternative proposals, if permissible, in accordance with ITB Clause 14;


(d) written confirmation authorizing the signatory of the proposal to commit the broker, in accordance with ITB Clause 21;

(e) documentary evidence in accordance with ITB Clauses 17, that the insurance broker services and related services conform to the bidding documents;

(f) documentary evidence in accordance with ITB Clause 18 establishing the broker’s qualifications to perform the contract if its proposal is accepted; and

(g) any other document required in the BDS.

12.2 In addition to the requirements under ITB 12.1, proposals submitted by a JV shall include a copy of the Joint Venture Agreement entered into by all partners. Alternatively, a Letter of Intent to execute a Joint Venture Agreement in the event of a successful proposal shall be signed by all partners and submitted with the proposal, together with a copy of the proposed agreement. – Not Applicable

13. Proposal Submission Form and Price Schedules

13.1 The broker shall submit the Proposal Submission Form furnished in Section IV without any alterations, amendments or modifications to its format with the information requested.

13.2 The broker shall submit the Price Schedules for insurance broker services and related services using the forms furnished in Section IV, Bidding Forms.

14. Alternative proposals

14.1 Unless otherwise specified in the BDS, alternative proposals shall not be considered.

15. Proposal Prices and Discounts

15.1 The prices quoted by the broker in the Proposal Submission Form and in the Price Schedules shall conform to the requirements specified below.

15.1 If so indicated in ITB Sub-Clause 1.1, proposals are invited for category of risks provided in the BDS. Prices quoted shall correspond to 100 % of the items specified for each risk(s).

15.2 All lots and items must be listed and priced separately in the Price Schedules.

15.3 The price to be quoted in the Proposal Submission Form shall be the total price of the proposal including all commissions paid by the Insurer to the broker, applicable taxes, and excluding any prompt payment discounts offered. All discounts offered by the Insurer must be offered to all brokers.

15.4 An Administrative discount can only be offered if the Insurer agrees to transfer a particular administrative function to the broker and therefore grants the discount on these terms. The broker must provide documentary evidence to support this.

15.5 Long Term Agreement Discounts will not be considered.

15.6 All proposals must be supported by brokers’ Slips, which are signed stamped and dated, to substantiate the Insurer’s quotation. In the case of overseas placement, the national broker is required to obtain supporting brokers’ Slips signed by at least the Lead Underwriter from their overseas correspondent.

15.7 If the risk is shared among two or more Insurers (split policies), brokers are required to provide documentary evidence indicating that each Insurer is aware of, and is in agreement with the rates and terms quoted. This is also applicable to overseas placement.

15.8 All quotations/rates must be clearly applied to the Price Schedule. Any ambiguous quotations/rates will result in the rejection of the proposal.


15.9 Any limit of cover must be clearly specified. Any unspecified amounts will result in the rejection of the proposal.

15.10 Any multiple options for the risks must be for the complete risk(s), otherwise the proposal will be rejected.

15.11 Any variation in the rates, terms and conditions proposed by the Insurer will result in the rejection of the proposal.

15.12 Prices quoted by the broker shall be fixed for the first year of performance. A proposal submitted with an adjustable price quotation shall be treated as non-responsive and shall be rejected, pursuant to ITB Clause 29. However, for the first year, in accordance with the BDS, prices quoted by the broker shall be subject to adjustment pursuant to ITB Clause 30.

15.13 For insurance placement in subsequent years the broker will follow the approach specified in the Agreement. However, in the event that renewal rates/premiums have been increased by 10% or more over the previous year, the procuring entity reserves the right to review the Agreement. The procuring entity reserves the right to terminate the Agreement if the renewal rates\premiums have been increased by 15% or more over the previous year other than by reason of claims or increased risk factors.

15.14 Section 144 (7) of the Insurance Regulations indicates that a fee can be charged for services in the form of “advice, counsel or opinion” but does not so indicate for “solicitation” or “negotiation”. By implication, “solicitation” and “negotiation” of insurance contracts will be paid for on a commission basis.

16 Currencies of proposal

16.1 The currency(ies) of the proposal and the currency(ies) of payments shall be the same. The broker shall quote in Jamaican Dollars the portion of the proposal price that corresponds to expenditures incurred in Jamaica, unless otherwise specified in the BDS.

16.2 The broker may express the proposal price for expenditure outside of Jamaica in any freely convertible currency. If the broker wishes to be paid in a combination of amounts in different currencies, it may quote its price accordingly but shall use no more than three freely convertible international currencies in addition to Jamaican Dollars.

17 Documents Establishing the Conformity of the insurance broker services and related services

17.1 To establish the conformity of the insurance broker services and related services to the bidding documents, the broker shall furnish as part of its proposal the documentary evidence that the insurance broker services conform to the technical specifications and standards specified in Section V, Schedule of Requirements.

18 Documents Establishing the Qualifications of the broker

18.1 The documentary evidence of the broker’s qualifications to perform the contract if its proposal is accepted shall establish to the procuring entity’s satisfaction:

(a) that it has the financial and technical capability necessary to perform the Contract, meets the qualification criteria specified in the BDS, and has a successful performance history.

(b) that any Insurer proposed conforms to the Insurance Act and its Regulations.

(c) that the broker meets each of the qualification criterion specified in Section III, Evaluation and Qualification Criteria.


(d) national brokers applying for eligibility for domestic preference shall supply all information required to satisfy the criteria for eligibility as described in ITB Clause 4.

(e) evidence of failure to adhere to fair market practice will result in disqualification of the broker’s proposal(s).

19 Period of Validity of proposals

19.1 Proposals shall remain valid for the period specified in the BDS after the proposal submission deadline date prescribed by the procuring entity. A proposal valid for a shorter period shall be rejected by the procuring entity as non-responsive.

19.2 In exceptional circumstances, prior to the expiration of the proposal validity period, the procuring entity may request brokers to extend the period of validity of their proposals. The request and the responses shall be made in writing. If a proposal security is requested in accordance with ITB Clause 20, it will also be extended. A broker may refuse the request for extension without forfeiting its proposal security. A broker granting the request shall not be required or permitted to modify its proposal.

20 Proposal Security

20.1 The broker shall furnish as part of its proposal a proposal security, if required, as specified in the BDS.

20.2 The proposal security shall be in the amount specified in the BDS and denominated in the currency of the proposal, and shall:

(a) at the broker’s option, be in the form of either an irrevocable letter of credit, or a bank guarantee from a banking institution, or a bond issued by a Surety which is incorporated and domiciled in Jamaica, or a proposal securing declaration, or a certified managers cheque, or an insurance certificate;

(b) be issued by a reputable financial institution selected by the broker and located in any eligible country. If the institution issuing the proposal security is located outside Jamaica, it shall have a correspondent financial institution located in the Jamaica to make it enforceable;

(c) be payable promptly upon written demand by the procuring entity in case the conditions listed in ITB Sub-Clause 20.5 are invoked;

(d) be submitted in its original form with the proposal (copies shall not be considered compliant with the requirement). In the case of the electronic submission of proposals, an electronic copy of the proposal security shall be sent and uploaded by the broker, the original must be submitted to the address provided at ITB Sub-Clause 22.1 not later than the time and date of proposal submission deadline.

(e) remain valid for a period of 28 days beyond the validity period of the proposals, or 28 days beyond the extended validity period, if applicable in accordance with ITB Sub-Clause 19.2.

(f) be stamped by the Stamp Office of Jamaica, in keeping with the Stamp Duty Act, as proof of payment of the relevant Stamp Duty. (The Stamp Duty Division within the Tax Administration of Jamaica (TAJ) issues a Vermillion seal on the bond and a validation barcode, which is placed on the reverse of the consideration (first) page.)


20.3 If a proposal security is required in accordance with ITB Sub-Clause 20.1, any proposal not accompanied by a substantially responsive proposal security in accordance with ITB Sub-Clause 20.1 and 20.2, shall be rejected by the procuring entity as non-responsive.

20.4 The proposal security of unsuccessful brokers shall be returned as promptly as possible upon the procuring entity’s receipt of a signed contract agreement.

20.5 The proposal security may be forfeited:

(a) if a broker materially modifies or withdraws its proposal during the period of proposal validity specified by the broker on the Proposal Submission Form, except as provided in ITB Sub-Clause 19.2;

(b) if a bidder does not accept a correction of errors in accordance with ITB Clause 30.4; or

(c) if the successful broker fails to sign the Contract in accordance with ITB Clause 40.

21 Format and Signing of proposal

21.1 The broker shall prepare one original of the documents comprising the proposal as described in ITB Clause 12 and clearly mark it “ORIGINAL”. In the case of electronic bidding the proposal uploaded on the GOJEP system shall be the “ORIGINAL”. Alternative proposals, if permitted in accordance with ITB Clause 14, shall be clearly marked “ALTERNATIVE”. In addition for hard copy proposals, the broker shall submit copies of the proposal, in the number specified in the BDS and clearly mark them “COPY.” In the event of any discrepancy between the original and the copies, the original shall prevail.

21.2 The original and all copies of the proposal shall be typed, digitally entered or written in permanent ink and shall be signed and stamped by a person duly authorized to sign on behalf of the broker. This authorization shall consist of a power of attorney and shall be attached to the proposal.

21.3 Any interlineations, erasures, or overwriting shall be valid only if they are signed or initialed by the person signing the proposal.

D. Submission and Opening of proposals

22 Submission, Sealing and Marking of proposals

22.1 Proposals shall be submitted by hand in hard copy or electronically as specified in the BDS.

(a) Brokers submitting proposals by mail or by hand shall enclose the original and each copy of the proposal, including alternative proposals, if permitted, in accordance with ITB Clause 14, in separate sealed envelopes, duly marking the envelopes as “ORIGINAL” and “COPY.” These envelopes containing the original and the copies shall then be enclosed in one single envelope. The rest of the procedure shall be in accordance with ITB Sub-Clauses 22.2, 22.3 and 22.4.

(b) Brokers submitting proposals electronically shall follow the GOJEP procedures as described in the System: Quick Guide for Suppliers.

22.2 For hard copy proposals the inner and outer envelopes shall:

(a) Bear the name and address of the broker;

(b) be addressed to the procuring entity in accordance with ITB Sub-Clause 23.1;


(c) bear the specific identification of this bidding process indicated in ITB Sub-Clause 1.1 and any additional identification marks as specified in the BDS; and

(d) bear a warning not to open before the time and date for proposal opening, in accordance with ITB Sub-Clause 26.1.

22.3 If all envelopes are not sealed and marked as required, the procuring entity will assume no responsibility for the misplacement or premature opening of the proposal.

22.4 The proposals shall be deposited in the BID BOX provided in the address stated in ITB Sub-Clause 23.1.

23 Deadline for Submission of proposals

23.1 Proposals must be received by the procuring entity at the address or through the GOJEP system no later than the date and time specified in the BDS.

23.2 The procuring entity may, at its discretion, extend the deadline for the submission of proposals by amending the bidding documents in accordance with ITB Clause 8, in which case all rights and obligations of the procuring entity and brokers previously subject to the deadline shall thereafter be subject to the deadline as extended.

24 Late proposals

24.1 The procuring entity shall not consider any proposal that arrives after the deadline for submission of proposals, in accordance with ITB Clause 22. All late bids shall be declared late and rejected. The broker will be notified and must collect their bid within 30 days. It the bid is not collected within this period it shall be destroyed.

24.2 In the case of electronic bidding, brokers will be unable to upload their proposal once the proposal submission deadline has passed.

Brokers are therefore urged to commence bid upload at least two (2) hours prior to the submission time. The Procuring Entity will not be held liable for bids not submitted on time due to late commencement of bid upload. At the FIRST SIGN of any technical difficulties, bidders must make contact with the Office of Public Procurement Policy: (876) 932-5220,932-5253,932-5246.

25 Withdrawal and Modification of proposals

25.1 A broker may withdraw or modify its proposal after it has been submitted in accordance with ITB Clause 22 but only prior to the deadline for submission of proposals.

25.2 In the case of hard copy proposals brokers must send a written notice, duly signed by an authorized representative, and shall include a copy of the authorization (the power of attorney) in accordance with ITB Sub-Clause 21, (except that no copies of the withdrawal notice are required). The corresponding modification of the proposal must accompany the respective written notice. All notices must be:

(a) submitted in accordance with ITB Clauses 21 and 22, and in addition, the respective envelopes shall be clearly marked “WITHDRAWAL” or “MODIFICATION” and

(b) received by the procuring entity prior to the deadline prescribed for submission of proposals, in accordance with ITB Clause 23.

25.3 Proposals requested to be withdrawn in accordance with ITB Sub-Clause 25.1 shall be returned unopened to the brokers.

25.4 In the case of electronic proposals, the submitted proposal must be removed in accordance with the GOJEP System: Quick Guide for Suppliers and a new proposal uploaded.


25.5 After the proposal submission deadline the withdrawal or modification of a proposal will result in, forfeiture of any proposal security and rejection of the proposal.

26 Proposal Opening

26.1 Proposal Opening

(a) For hard copy proposals the procuring entity shall conduct the proposal opening in public at the address, date and time specified in the BDS and in accordance with ITB Sub-Clauses 26.2 to 26.6.

(b) For electronic bidding the GOJEP System shall prepare a proposal opening report that shall include, as a minimum: the name of the broker; the Proposal Price, per lot if applicable, and, if required, the presence or absence of a proposal security. A copy of the report will be distributed to all brokers who submitted a proposal.

26.2 Envelopes marked “WITHDRAWAL” shall be opened and read out and the envelope with the corresponding proposal shall not be opened, but returned to the broker. If the withdrawal envelope does not contain a copy of the “power of attorney” confirming the signature as a person duly authorized to sign on behalf of the broker, the corresponding proposal will be opened. No proposal withdrawal shall be permitted unless the corresponding withdrawal notice contains a valid authorization to request the withdrawal and is read out at proposal opening.

26.3 Envelopes marked “MODIFICATION” shall be opened and read out with the corresponding proposal. No proposal modification shall be permitted unless the corresponding modification notice contains a valid authorization to request the modification and is read out at proposal opening. Only envelopes that are opened and read out at proposal opening shall be considered further.

26.4 All other envelopes shall be opened one at a time, reading out: the name of the broker and whether there is a modification, including any alternative offers; the presence of a proposal security, if required; and any other details as the procuring entity may consider appropriate. Only alternative offers read out at proposal opening shall be considered for evaluation. Proposals shall be rejected at the proposal opening in accordance with ITB Sub-Clause 24.1 and 25.3.

26.5 The procuring entity shall prepare a record of the proposal opening that shall include, as a minimum:

o the name of the broker and whether there is a withdrawal or modification;

o and the presence or absence of a proposal security, if one was required.

o The brokers’ representatives who are present shall be requested to sign the attendance sheet.

o A copy of the record shall be distributed to all brokers who submitted proposals in time and posted online when electronic bidding is permitted.

E. Evaluation and Comparison of proposals

27 Confidentiality

27.1 Information relating to the examination, evaluation, comparison and recommendation of contract award, shall not be disclosed to brokers or any other persons not officially concerned with such process until publication of the Contract Award.

27.2 Any effort by a broker or any person to influence the procuring entity in the examination, evaluation, comparison of the proposals or contract award decisions, pursuant to Section 56 of the Act, shall result in the rejection of its proposal.


27.3 Notwithstanding ITB Sub-Clause 27.2, from the time of proposal opening to the time of Contract Award, if any broker wishes to contact the procuring entity on any matter related to the bidding process, it should do so in writing.

28 Clarification of proposals

28.1 To assist in the examination, evaluation and comparison of the proposals, the procuring entity may, at its discretion, ask any broker for a clarification of its proposal. Any clarification submitted by a broker in respect to its proposal and that is not in response to a request by the procuring entity shall not be considered. The procuring entity’s request for clarification and the response shall be in writing. In the case of electronic bidding this will be managed through the GOJEP System. No change in the prices or substance of the proposal shall be sought, offered, or permitted, except to confirm the correction of arithmetic errors discovered by the procuring entity in the Evaluation of the proposals, in accordance with ITB Clause 30.

28.2 If a broker does not provide clarifications of its proposal by the date and time set in the procuring entity’s request for clarification, its proposal shall be rejected.

29 Responsiveness of proposals

29.1 The procuring entity’s determination of a proposal’s responsiveness is to be based on the contents of the proposal itself.

29.2 A substantially responsive proposal is one that conforms to all the terms, conditions and specifications of the bidding documents without material deviation, reservation or omission.

29.3 A material deviation, reservation or omission is one that:

(a) affects in any substantial way the scope, quality, or performance of the insurance broker services and related services specified in the Contract; or

(b) limits in any substantial way, inconsistent with the bidding documents, the procuring entity’s rights or the broker’s obligations under the Contract; or

(c) if rectified would unfairly affect the competitive position of other brokers presenting substantially responsive proposals.

29.4 If a proposal is not substantially responsive to the bidding documents, it shall be rejected by the procuring entity and may not subsequently be made responsive by the broker by correction of the material deviation, reservation, or omission.

30 Non-conformities, Errors and Omissions

30.1 Provided that a proposal is substantially responsive, the procuring entity may waive any non-conformities or omissions in the proposal that do not constitute a material deviation.

30.2 Provided that a proposal is substantially responsive, the procuring entity may request that the broker submit the necessary information or documentation, within a reasonable period of time, to rectify nonmaterial nonconformities or omissions in the proposal related to documentation requirements. Such omission shall not be related to any aspect of the price of the proposal. Failure of the broker to comply with the request may result in the rejection of its proposal.

30.3 Provided that the proposal is substantially responsive, the procuring entity shall correct arithmetical errors on the following basis:

(a) if there is a discrepancy between the unit price and the line item total that is obtained by multiplying the unit price by the quantity, the unit price shall prevail and the line item total shall be corrected.


(b) if there is an error in a total corresponding to the addition or subtraction of subtotals, the subtotals shall prevail and the total shall be corrected; and

(c) if there is a discrepancy between words and figures, the amount in words shall prevail.

30.4 The amount stated in the proposal shall be adjusted by the procuring entity in accordance with the above procedure for the correction of errors and shall be considered as binding upon the broker. If the broker does not accept the corrected amount, the proposal shall be rejected, and the proposal security may be forfeited.

31 Preliminary Examination of proposals

31.1 The procuring entity through the Consulting Actuary shall examine the proposals to confirm that all documents and technical documentation requested in ITB Clause 12 have been provided, and to determine the completeness of each document submitted.

31.2 The procuring entity through the Consulting Actuary shall confirm that the following documents and information have been provided in the proposal. If any of these documents or information is missing, the offer shall be rejected.

(a) Proposal Submission Form, in accordance with ITB Sub-Clause 12.1;

(b) Price Schedules, in accordance with ITB Sub-Clause 12.1;

(c) Proposal security in accordance with ITB Clause 20, if applicable.

(d) Power of Attorney for the authorized representative signing the proposal.

(e) Any other requirements as indicated in the BDS.

32 Examination of Terms and Conditions; Technical Compliance

32.1 The procuring entity through the Consulting Actuary shall examine the proposal to confirm that all terms and conditions specified in the GCC and the SCC have been accepted by the broker without any material deviation or reservation.

32.2 The procuring entity shall evaluate the technical aspects of the proposal submitted

in accordance with ITB Clause 31, to confirm that all requirements specified in Section IV, Schedule of Requirements of the bidding documents have been met without any material deviation or reservation.

32.3 If, after the examination of the terms and conditions and the technical evaluation, the procuring entity determines that the proposal is not substantially responsive in accordance with ITB Clause 31.2(e), it shall reject the proposal.

33 Conversion to Single Currency

33.1 For evaluation and comparison purposes, the procuring entity shall convert all proposal prices expressed in amounts in various currencies into an amount in a single currency specified in the BDS, using the selling exchange rates established by the source and on the date specified in the BDS.

34 Evaluation of proposals

34.1 The procuring entity through the Consulting Actuary shall examine each eligible proposal to determine its responsiveness.

34.2 To evaluate a proposal, the procuring entity through the Consulting Actuary shall use

all the factors, methodologies and criteria defined in Section III. The non-price factors selected shall to the extent possible be expressed in monetary terms to facilitate comparison of proposals, or given weights/scores or be set out in descending order of importance or in a manner otherwise specified in Section III,


Evaluation and Qualification Criteria. The factors, methodologies and criteria to be

used shall be as specified in Section III.

34.3 To evaluate a proposal, the procuring entity through the Consulting Actuary shall consider the following:

(a) evaluation of the risk(s), as specified in the BDS; and the proposal Price as quoted in accordance with ITB Clause 15.

(b) price adjustment for correction of arithmetic errors in accordance with ITB Sub-Clause 30.3;

(c) price adjustment due to discounts offered in accordance with ITB Clause 15. In addition, the consulting Actuary will adjust prices for any discount offered by an Insurer which is not consistently offered to all brokers;

(d) the application of any applicable non-price evaluation criteria specified in the BDS and as set out in Section III, Evaluation and Qualification Criteria.

35 Comparison of proposals

35.1 The procuring entity through the Consulting Actuary shall compare proposals in accordance with ITB Sub-Clause 34.3 to determine the proposal that has the lowest proposal price or is the most advantageous.

36 Procuring Entity’s Right to Accept Any Proposal, and to Reject Any or All proposals

36.1 The procuring entity reserves the right to accept or reject any proposal, and to annul the bidding process and reject all proposals without thereby incurring any liability to brokers:

(a) at any time prior to the acceptance of the successful proposal; or

(b) after the successful proposal is accepted if:

(i) the broker presenting the successful proposal is disqualified under the Act or the regulations;

(ii) the procurement is cancelled;

(iii) the broker presenting the successful proposal is excluded on the grounds of an unfair competitive advantage or a conflict of interest that is likely to impair the integrity of those procurement proceedings;

(iv) the procurement, the proposal or the broker contravenes or is otherwise not compliant with the provisions of the Act or the regulations.

F. Award of Contract

37 Award Criteria

37.1 The procuring entity shall award the Contract to the broker whose proposal has been determined to be the lowest priced or the most advantageous.

38 Notification of Award and Standstill Period


38.1 Prior to the expiration of the period of proposal validity, the procuring entity shall notify all brokers, in writing, of the determination of the successful proposal including all the information required by Section 44 (2) of the Act.

38.2 The date of the notification under ITB Sub-Clause 38.2 establishes the commencement of the standstill period specified in the BDS. During this time brokers may query, apply for reconsideration or otherwise challenge the decision of the procuring entity. This may include a request for debriefing seeking explanations for the grounds on which their proposals were not selected.

39 Signing of Contract

39.1 On the expiry of the standstill period the procuring entity shall send the successful broker the Letter of Acceptance.

39.2 The successful broker shall return the signed contract within 28 days from the date of the Letter of Acceptance and shall sign, date, and return to the procuring entity the signed Contract Agreement.

39.3 On receipt of the signed Contract Agreement the procuring entity will immediately notify in writing all unsuccessful brokers, of the final results of the bidding process. This notice will discharge their proposal securities pursuant to ITB Clause 20.

39.4 Following signature of the Contract Agreement, the procuring entity shall publish, in the manner prescribed by the Office, the results, identifying the name of the supplier, the contract price and the contract number.

Section II Bidding Data Sheet 21

Section II. Bidding Data Sheet (BDS)

The following specific data for the insurance broker services and related services to be procured shall complement, supplement, or amend the provisions in the ITB. Whenever there is a conflict, the provisions herein shall prevail over those in ITB.

ITB Clause Reference

A. General

ITB 1.1 The procuring entity is: Bank of Jamaica

ITB 1.1

The name and identification number of the NCB are:

PROVISION OF GENERAL INSURANCE PLACEMENT - RFP#:2020-42-01-01

Bidding will be conducted in accordance with hard copy procedures

ITB1.1 The name of the Project is: Provision of General Insurance Placement 2020-2023

ITB 4.1 Brokers and any local insurers used in the submissions must provide valid Tax compliance Letters

For more information: [https://www.jamaicatax.gov.jm/]

ITB 4.2 Brokers and any local insurers used in the submissions must be registered with the

Public Procurement Commission under the following classification: Insurance Services

For more information: http://www.ocg.gov.jm

B. Contents of Bidding Documents

ITB 7.1 For Clarification of proposal purposes only, the procuring entity’s address is:

Attention: Head of Procurement Procurement Administration Section

Address: Bank of Jamaica

Nethersole Place

City: Kingston

Country : Jamaica, W.I.

Facsimile number:

Electronic mail address: [email protected]

All clarifications must be submitted to the Following

Address: [email protected] Subject: Queries/Clarification

RFQ # 2020-42-01-01 Insurance Placement

https://www.jamaicatax.gov.jm/

http://www.ocg.gov.jm/

mailto:[email protected]

mailto:[email protected]


Requests for clarification should be received by the procuring entity no later than: Tuesday, 04 August 2020 and responses will be provided before the deadline for submission of bids stated at ITB 23.1.

ITB 7.2 A site visit will be organized as part of the pre-bid meeting.

The Site Visit will take place at the following date, time and place:

Date: Friday, 31 July 2020

Time: 10:00 a.m.

Place: Bank of Jamaica, Nethersole Place, Kingston

ITB 7.5 A pre-proposal meeting shall take place.

The pre-proposal meeting shall take place at the following date, time and place:

Date: Friday July 31, 2020

Time: 10:30 a.m.

Place: Bank of Jamaica

Nethersole Place

Kingston

ITB 7.6 Any questions must be submitted two (2) days before the date of the pre-proposal meeting.

ITB 8.1 Extension of Deadline for submission of proposals – Not Applicable

C. Preparation of proposals

ITB 12.1 (f) The broker shall submit the following additional documents in its proposal:

1. Current Tax Compliance Letter (TCL) - broker and proposed local insurers

2. Valid Public Procurement Commission (PPC) Certificate - broker and proposed local insurers

3. A copy of valid Certificate of Registration from the Financial Services Commission (FSC) - broker and proposed local insurers

4. Signed Proposal Submission Form – Section IV (Bidding Forms)

5. Summary of the Risk(s) for each Proposal - Section IV (Price Schedule)

ITB 12.2 Not Applicable

ITB 13.1 Proposal Submission Form and the applicable Price Schedules – Section IV

ITB 14.1 Alternative proposals shall be considered. Only alternative proposals as specified below will be considered.

The number of alternative proposals shall be limited to 1.

ITB 15.13 The prices quoted by the bidder “shall not” be adjustable. If prices shall be adjustable, the methodology is specified in Section III Evaluation and Qualification Criteria.

ITB 17.1 The broker shall submit, with its proposal, the items set out in Section V, Schedule of Requirements

ITB 18.1 (a) The broker shall submit, with its proposal, the documentary evidence set out in Section 3 to prove that it has the financial and technical capability to perform the contract. Omission of any item in Section III may lead to disqualification of the Bid.


ITB 19.1 The proposal validity period shall be 120 days.

ITB 20.1 No Bid Security is required

ITB 20.2 The amount if Bid Security shall be: - N/A

D. Submission and Opening of proposals

ITB 21.1 Proposals will be submitted in hard copy.

In addition to the original proposal, the required number of copies is: 2.

ITB 21.2 Written confirmation authorizing the signatory of the Proposal to commit to the Broker

This authorization shall consist of a power of attorney and shall be attached to

the proposal if bid not signed by Director or Managing Director.

ITB 22.1 The envelopes containing the ORIGINAL and the COPIES shall be enclosed in one single envelope.

ITB 22.2 The inner and outer envelopes shall bear the following additional identification marks:

“GENERAL INSURANCE PLACEMENT”

RFP # 2020-42-01-01

General Insurance Services 2020 – 2023

Attention: Head of Procurement

Procurement Administration Section

Bank of Jamaica

Nethersole Place, Kingston, Jamaica, W.I.

ITB 22.3 The deadline for the submission of proposals is:

Date: Tuesday, 25 August 2020

Time: 3:00 p.m.

Late proposals will be rejected.

ITB 22.3 The envelopes should bear the clear warning

NOT TO BE OPENED until the official Tender Opening is being conducted

ITB 23.1 The address of the Procuring Entity is:

Bank of Jamaica Nethersole Place, Kingston, Jamaica, W.I.

ITB 26.1 The proposal opening shall take place at:

Date: Tuesday, 25 August 2020

Time: 3:10 p.m.

There will be no public opening of bids.


E. Evaluation and Comparison of proposals

ITB 31.2(c) A proposal security is not required

ITB 31.2 (d)

Power of Attorney for the authorized representative signing the proposal if bid not signed by Director or Managing Director.

ITB 31.2(e) The proposals shall be evaluated as set out in Section III

ITB 33.1 Proposal prices expressed in different currencies shall be converted to: Not Applicable

The source of exchange rate shall be: Not Applicable

The date for the exchange rate shall be: Not Applicable

ITB 34.3(a) Evaluation will be on the basis of entire portfolio based on specification,

incomplete proposals will be disqualified.

F. Award of Contract

ITB 38.2 The number of days for standstill shall be five (5) days.

Section III Evaluation and Qualification Criteria 25

Section III. Evaluation and Qualification Criteria

This Section complements the Instructions to Brokers. It contains the criteria that the procuring entity through the Consulting Actuary may use to evaluate a proposal and determine whether a broker has the required qualifications. No other criteria shall be used.

Contents

1. Evaluation Criteria (ITB Sub-Clause 34.3 (d))


1. Evaluation Criteria (ITB Sub-Clause 34.3 (d))

The procuring entity’s Consulting Actuary’s evaluation of a proposal shall take into account, in addition to the Proposal Price quoted in accordance with ITB Clause 12, the Technical Evaluation Criteria set out in this Section III.

TECHNICAL EVALUATION

Bidders whose proposals score below the minimum of seventy (70) points on the Technical Evaluation will be deemed non-responsive and the associated Financials will be returned.

A Bid will be rejected for failure to include any of the Eligibility Items – 1(i) to 1(v)

A Bid will be disqualified for failure to include any of the Responsiveness Items – 2(i) to 2(xiii)

ELIGIBILITY AND RESPONSIVENESS

1. Eligibility Checklist Y N

(i) Valid Current Tax Compliance Letter (TCL) - Broker & Insurer

(ii) Valid Public Procurement Commission Certificate - Broker and Insurer

(iii) Signed Proposal Submission Form for each Proposal

(iv) Summary of the Risk(s) for each Proposal

(v) Valid Certificate of Registration from the Financial Services Commission (FSC) in category of insurance – broker and insurer

2. Responsiveness Checklist Y N

(i) Evidence of Professional Indemnity Cover of at least J$30 million for local Broker

(ii) Evidence of Fidelity Guarantee Insurance Cover for local Broker of at least J$20 million

(iii) Bid Securing Declaration

(iv) Power of Attorney (if Bid not signed by Director or managing Director)

(v) Completed and signed Statement of Acceptance of the Terms and Conditions of the Draft Standard Contract Form

(vi) Evidence of Registration as a Facultative Placement Broker if Facultative Insurance is being proposed

(vii) Broker Information Form

(viii) Ratings of overseas Insurers from internationally recognized Rating Agency.

(ix)

For large Risks – Confirmation that local Insurer has the capacity to carry the Risk in its standard reinsurance treaty or that facultative reinsurance support has been arranged

(x) Signed, stamped, dated Brokers’ Slips for each Risk confirming 100% of the coverage if placed locally and at least 15% if placed overseas

(xi) Details of Fronting Fees and Commissions for all overseas placements

(xii) CVs of Staff to be assigned to the Account

(xiii) Disclaimer


TECHNICAL EVALUATION CRITERIA

Maximum Points

1. Key Project Resource Persons and Qualifications 60

(i) Identify the Members of the Team (minimum 3 persons) 8

(ii) Indicate the role of each Member of the Team 10

(iii) Indicate the relevant experience of each Member of the Team 12

(iv) A minimum of (3) client references of similar works from current contracts:

▪ Excellent - 10 ▪ Good – 5 ▪ Satisfactory – 2.5 ▪ Unsatisfactory - 0

30

2. Audited Financials 20

(i) Audited Financial Statements for the Broker for the last three (3) complete years prior to the deadline for the submission of tenders 10

(ii) Audited Financial Statements for the Insurer for the last 3 complete years prior to the deadline for the submission of tenders 10

3. Alternative Programme Structure (provide responses for each Alternative) 20

(i) Identify the changes to the programme structure 10

(ii) Provide a rationale for the changes 5

(iii) Identify the cost savings versus coverage on the specified terms-by the same insurer 5

100


FINANCIAL EVALUATION

The Financial Evaluation shall be conducted by the Consulting Actuary and shall have

regard to the coverage proposed and the cost of the coverage. The Financial evaluation

shall be conducted only for qualified proposals that satisfy the minimum required

technical score of 70 points. The winning proposal will be the best qualified financial

proposal as judged by the actuary and will not necessarily be the lowest cost financial

proposal.

Section IV Bidding Forms 29

Section IV. Bidding Forms

Table of Forms

Broker Information Form ............................................................................................. 30

Proposal Submission Form ........................................................................................... 31


Broker Information Form

[The broker shall fill in this Form in accordance with the instructions indicated below. No alterations to its format shall be permitted and no substitutions shall be accepted.]

Date: [insert date (as day, month and year) of proposal submission] Ref No.: [insert number of bidding process]

Page ________ of_ ______ pages

1. broker’s Legal Name [insert broker’s legal name]

2. In case of JV, legal name of each party: [insert legal name of each party in JV]-N/A

3. broker’s actual or intended Country of Registration: [insert actual or intended Country of Registration]

4. broker’s Year of Registration: [insert broker’s year of registration]

5. broker’s Legal Address in Country of Registration: [insert broker’s legal address in country of registration]

6. broker’s Authorized Representative Information

Name: [insert Authorized Representative’s name]

Address: [insert Authorized Representative’s Address]

Telephone/Fax numbers: [insert Authorized Representative’s telephone/fax numbers]

Email Address: [insert Authorized Representative’s email address]

7. Attached are copies of original documents of: [check the box(es) of the attached original documents]

Tax Compliance Letter (TCL)

Public Procurement Commission (PPC) registration in stated category

Registered with Financial Services Commission (FSC) as Facultative Broker

_____ Audited Financial statements

Articles of Incorporation or Registration of brokers legal name named in 1, above, in accordance with ITB Sub-Clauses 4.1 and 4.2.


Proposal Submission Form

[The broker shall fill in this Form in accordance with the instructions indicated No alterations to its format shall be permitted and no substitutions shall be accepted.]

Date: [insert date (as day, month and year) of proposal submission]

Ref No.: [insert number of bidding process]

Alternative No.: [insert identification No if this is a proposal for an alternative]

To: [insert complete name of procuring entity]

We, the undersigned, declare that:

(a) We have examined and have no reservations to the bidding documents, including Addenda No.: [insert the number and issuing date of each Addenda];

(b) We offer to supply in conformity with the bidding documents and in accordance the Schedule of Requirements the following insurance broker services and related services [insert a brief description of the insurance broker services and related services];

(c) We attach evidence of our fulfilment of the non-price criteria of award set out in Section III, Evaluation and Qualification Criteria;

(d) The total price of our proposal, excluding any prompt payment discounts offered in item (e) below, is: [insert the total proposal price in words and figures, indicating the various amounts and the respective currencies];

(e) Our proposal shall be valid for the period of time specified in ITB Sub-Clause 19.1, from the date fixed for the proposal submission deadline in accordance with ITB Sub-Clause 23.1 and it shall remain binding upon us and may be accepted at any time before the expiration of that period;

(f) We have no conflict of interest in accordance with ITB Sub-Clause5.2;

(g) Our firm, its affiliates or subsidiaries—including any brokers or suppliers for any part of the contract—has not been declared ineligible in accordance with ITB Sub-Clause 5.3;

(h) We hereby agree that in competing for (and, if the award is made to us, in executing) the Contract, we undertake to observe the laws against fraud and corruption, including bribery, in force in Jamaica;

(i) We understand that this proposal, together with your written acceptance thereof included in your notification of award, shall constitute a binding contract between us, until a formal contract is prepared and executed.

We understand that you are not bound to accept the lowest responsive proposal or any other proposal that you may receive. We understand that the procuring entity may cancel a procurement at any time prior to the acceptance of the successful proposal or after the successful proposal is accepted if

(i) the broker presenting the proposal is disqualified under the Act or the regulations of the Public Procurement Act, 2015;

(ii) the procurement is cancelled;


(iii) the broker presenting the successful proposal is excluded on the grounds of corruption, unfair competition and a conflict of interest; or

(iv) the procurement, the proposal or the broker contravenes or is otherwise not compliant with the provisions of the Public Procurement Act, 2015.

Signed:_______________ [insert signature of person whose name and capacity are shown]

In the capacity of _______[insert legal capacity of person signing the Proposal Submission Form]

Name:____________ [insert complete name of person signing the Proposal Submission Form]

Duly authorized to sign the proposal for and on behalf of:_____ [insert complete name of broker]

Dated on ____________ day of __________________, _______ [insert date of signing]


Price Schedule Forms

[The broker shall fill in these Price Schedule Forms in accordance with the instructions indicated. The list of line items in column 1 of the Price Schedules shall coincide with the list of insurance broker services and related services specified by the procuring entity in the Schedule of Requirements.]

MINISTRY OF FINANCE AND PLANNING

PROCUREMENT POLICY IMPLEMENTATION UNIT

TENDER GUIDELINES FOR THE PLACEMENT OF GOVERNMENT PORTFOLIOS

SUMMARY OF PROPOSAL

Name of

Risk/Policy

Insurable

Values/Sums

Insured ($)

Description of

Scope of

Coverage

Proposed

Insurer/(S)

Quoted

Premium

Rates/Flat

Premiums

Gross

Premiums

($)

Type And

Level of

Discount/s

Value of

Discount/S

($)

Net

Premiums

($)

Remarks

34

Curriculum Vitae (CV)

Position Title and No. [e.g., K-1, TEAM LEADER]

Name of Expert: [Insert full name]

Date of Birth: [day/month/year]

Country of Citizenship/Residence

Education: [List college/university or other specialized education, giving names of educational institutions, dates attended, degree(s)/diploma(s) obtained]

___________________________________________________________________________

Employment record relevant to the assignment: [Starting with present position, list in reverse order. Please provide dates, name of employing organization, titles of positions held, types of activities performed and location of the assignment, and contact information of previous clients and employing organization(s) who can be contacted for references. Past employment that is not relevant to the assignment does not need to be included.]

Period Employing organization and your title/position. Contact information for references

Country Summary of activities performed relevant to the Assignment

[e.g., May 2005-present]

[e.g., Ministry of ……, advisor/broker to…

For references: Tel…………/e-mail……; Mr. Bbbbbb, deputy minister]

Membership in Professional Associations and Publications:

______________________________________________________________________

Language Skills (indicate only languages in which you can work):

______________________________________________________________________

Adequacy for the Assignment:

Detailed Tasks Assigned on broker’s Team of Experts:

Reference to Prior Work/Assignments that Best Illustrates Capability to Handle the Assigned Tasks

[List all deliverables/tasks in which the Expert will be involved)

Experts contact information: [address ………………….., e-mail…………………., phone……………]

35

Certification:

I, the undersigned, certify that to the best of my knowledge and belief, this CV correctly describes myself, my qualifications, and my experience, and I am available to undertake the assignment in case of an award. I understand that any misstatement or misrepresentation described herein may lead to my disqualification or dismissal by the procuring entity, and/or sanctions by the Government.

[day/month/year]

Name of Expert Signature Date

[day/month/year]

Name of authorized Signature Date

Representative of the broker

[the same who signs the Proposal]

Yes No

(i) This CV correctly describes my qualifications and experience

(ii) I am employed by the procuring entity

I certify that I have been informed by the firm that it is including my CV in the Proposal for the [name of project and contract]. I confirm that I will be available to carry out the assignment for which my CV has been submitted in accordance with the implementation arrangements and schedule set out in the Proposal.

OR

[If CV is signed by the firm’s authorized representative and the written agreement attached]

I, as the authorized representative of the firm submitting this Proposal for the [name of project and contract], certify that I have obtained the consent of the named expert to submit his/her CV, and that I have obtained a written representation from the expert that s/he will be available to carry out the assignment in accordance with the implementation arrangements and schedule set out in the Proposal.

36

Bid-Securing Declaration - Not Applicable

[The bidder shall fill in this Form in accordance with the instructions indicated.]

Date: [date (as day, month and year)]

RFB No.: [number of bidding process]

Alternative No.: [identification No if this is a bid for an alternative]

To: [complete name of procuring entity]

We, the undersigned, declare that:

We understand that, according to your conditions, bids must be supported by a Bid-Securing Declaration.

We accept that we will automatically be suspended from being eligible for bidding in any contract with the procuring entity for the period of time of [number of months or years] starting on [date], if we are in breach of our obligation(s) under the bid conditions, because we:

a) have materially modified or withdrawn our bid during the period of bid validity

specified in the Letter of Bid; or

b) does not accept a correction of errors; or

c) having been notified of the acceptance of our bid by the procuring entity during the

period of bid validity, fail or refuse to execute the Contract; or (ii) fail or refuse to

furnish the performance security, if required, in accordance with the ITB.

We understand this bid Securing Declaration shall expire if we are not the successful bidder, upon the earlier of (i) our receipt of your notification to us advising the execution of the contract with of the name of the successful bidder; or (ii) twenty-eight days after the expiration of our bid.

Signed: [signature of person whose name and capacity are shown] In the capacity of [legal capacity of person signing the bid Securing Declaration]

Name: [complete name of person signing the bid Securing Declaration]

Duly authorized to sign the bid for and on behalf of: [complete name of bidder]

Dated [date of signing]

37

CLIENT REFERRAL FORM To: Dear Sir/Madam: Re: Client Reference for_________________________________________________________ (Name of Firm) The above-captioned firm has provided insurance brokerage services to my company/institution for ___________________ years. Please specify. The start and end dates of contracts entered in are as follows: Start Date (dd/mm/yyyy) End Date (dd/mm/yyyy) ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ The quality of the service provided can be rated as follows, using the criteria listed below: 2 = Excellent; 1.0 = Good; 0.5 = Satisfactory; 0 = Unsatisfactory

Criteria Excellent Good Satisfactory Unsatisfactory

1. Initial placement of Risks

2. Renewal Procedure

3. Timely invoicing

4. Timely Claims processing

5. Responsiveness to queries administrative matters

Do you currently have a contract with this firm? Tick one: Yes ________ No ________ If no, please state briefly the circumstances under which the contract was terminated. _________________________________________________________________________ _________________________________________________________________________

38

Please give general comments in the space provided on the company’s performance during your contract with them for services specified (attach additional sheets if the space below is inadequate).

Yours truly, Signature: _______________________________________ Name:__________________________________________ In the capacity of: __________________________________ Date: ___________________________________________ Company Seal/Stamp

39

Disclaimer

TO: Bank of Jamaica

Nethersole Place

Kingston

NAME OF BIDDER:

ADDRESS OF BIDDER:

RFP NAME AND NUMBER: RFP # 2020-42-01-01 Insurance Placement

We, the above-mentioned Bidder for the bid referred to above, hereby verify that the

information contained in our bid document is accurate and hereby acknowledge that the

Bank of Jamaica does not give any representation, warranty or undertaking, expressed

or implied in respect of the information contained in the bid document and no

responsibility or liability will be accepted by the Bank of Jamaica as to the accuracy or

completeness of the document or for any other written or oral information made

available to bidders.

________________________________________

Signature and Seal

________________________________________

Date

NOTE: THIS DISCLAIMER MUST BE ON THE LETTERHEAD OF THE CONTRACTOR/COMPANY AND MUST BE

INCLUDED BY THE BIDDER WITH ITS BID

40

PART 2 – Schedule of Requirements

41

Section V. Schedule of Requirements

Contents

1. Specifications of Coverage ........................................................ 42

42

Specifications of Coverage 1. Introduction

1.1. The Bank of Jamaica (hereinafter called “the Bank”) invites tenders from brokers which are pre-qualified by the Financial Services Commission (FSC) and registered with the Public Procurement Commissions (PPC) to provide insurance services.

1.2. The contract under bid will be valid for a period of three (3) years, effective 2020

November 1.

2. Cover is required for the following classes of insurance:

(1) Commercial All Risks (7) Fidelity Guarantee (2) Property All Risks (8) Private Motor Comprehensive (3) Engineering / Machinery Breakdown (9) Special Type Motor Comprehensive (4) House Owners Comprehensive (10) Motor Cycle Comprehensive (5) Employers Liability (11) Motor Contingent Liability (6) Public Liability (12) Group Personal Accident

Detailed Technical Specifications and Standards [whenever necessary].

(YEAR 20 --TO 20 --)

INSURED:

ADDRESS:

TYPE OF POLICY:

SCOPE OF COVER:

EXTENSION:

SCHEDULE: (here or attached)

SUM INSURED/LIMIT OF INDEMNITY:

ESTIMATED ANNUAL TRANSIT/TURNOVER: (where applicable)

EXCESS:

INSURER: (indicating percentage holding)

CLAIMS EXPERIENCE: (To be prepared by the Insurer(s))

BIDDERS WILL BE PROVIDED WITH THE FOLLOWING DOCUMENTS AT THE SITE VISIT SCHEDULED FOR 31 JULY 2020:

(1) DETAILED TENDER SPECIFICATIONS (2) PRIVATE MOTOR VEHICLE SCHEDULE (3) HOMEOWNERS’ PROPERTY SCHEDULE

43

3. Technical Specifications

(a) Insurers should ensure that their quotations are clear so as not to give rise to queries. They should, therefore, refrain from the following:

i. providing different rates, discounts, or loading to brokers for the identical risks, or failing to justify special arrangements offered exclusively to a particular broker;

ii. varying the conditions indicated to different brokers in respect of minimum/maximum participation in a risk or submitting quotations tied to the acceptance of other risks; and

iii. failing to state clearly or consistently, the policies to be included in a Package arrangement.

(b) Insurers should indicate explicitly whether premiums are subject to a minimum value, and if so, whether they are adjustable (e.g. on subsequent declarations of insured values, stock levels, etc.).

(c) Insurers should indicate explicitly how rates are to be applied, to which values, etc.

(d) Insurers shall comply with proper market practice, as failure to do so will result in disqualification of their tenders. For example, adding an insignificant modification in terms or programme structure to justify quoting lower premium rates will lead to disqualification of the affected proposal.

(e) Where an Insurer “No Quotes” unconditionally to brokers, but later decides that the company is open to proposals, he must advise all brokers. In order to facilitate the monitoring of this aspect of the tender, brokers are requested to submit their unconditional “No Quote” brokers’ Slips from the insurance companies with their tenders, so that the Consulting Actuaries will be in a position to know which companies “No Quoted” unconditionally.

44

INFORMATION BULLETIN

Procedure for Placing Insurance Business with Unregistered Insurers

Section 20 of the Insurance Act, 2001 and Part XIII of the Insurance Regulations, 2001 allow locally

registered insurance entities to place insurance business with unregistered foreign insurance companies

under certain specified conditions. Three important conditions are that:

• The insurance cover must not be available in Jamaica,

• The Financial Services Commission must approve the transaction, and

• The applicant must meet the prescribed requirements.

Below are the detailed requirements for the placement of this type of insurance.

________________________________________________________________________

Insurance and Co-Insurance

Applies to: Facultative Placement Brokers (“FPB”) only.

1. Procedure for Placing Business

Before placing business with an unregistered insurer, a FPB or a locally registered insurance company

(company) must do the following:

a) Conduct a diligent search to determine if the full amount or type of insurance can be placed with

an insurer or co-insured with another insurer registered in Jamaica to sell that class of business.

This requires obtaining documentation from all insurers locally registered to transact the class of

business in question, indicating the level of risk they are willing to take.

b) Determine through proper due diligence, that the selected unregistered insurer meets the FSC’s

eligibility requirements as set out in Regulations 143, 145 and 146 of the Insurance Regulations,

2001 which are summarized below.

c) Apply to the FSC for permission to place the contract with the unregistered insurer, providing

evidence of the diligent search (referred to in (a)) above), the due diligence on the eligibility

requirements and any other documents that would assist the Commission in reaching a decision.

Upon approval by the FSC, the broker or company may proceed with placing the entire business or that

portion of the business for which cover cannot be found in Jamaica.

2. Eligibility Requirements - Unregistered Insurer

An unregistered insurer must provide evidence to the FPB of meeting the eligibility requirements. These

requirements include:

a) Meeting the fit and proper criteria as defined under the Act - Section 2(3). This includes the

completion of Fit and Proper questionnaires on the directors and senior managers

b) Being authorized to sell insurance in its domiciliary jurisdiction

c) Being authorized to write the class or type of insurance in question in its domiciliary jurisdiction

45

d) Meeting the capital and surplus requirement. This requires the company to have capital and

surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater

of:

(a) the minimum capital and surplus requirement under the Insurance Act, 2001 or

(b) an amount as prescribed by Regulation 28 in the case of general insurers or Regulation 29

in the case of long-term insurers

e) Meeting any other requirement that may be prescribed by the FSC from time to time

3. Withdrawal of Eligibility

The FSC may declare an unregistered insurance company ineligible and notify each FPB, if the

Commission believes that the insurer:

a) Is in an unsound financial position

b) Has acted in an untrustworthy manner

c) No longer meets the standards set out in Section 11 of the Insurance Act

d) Has willfully violated the laws of Jamaica, or

e) Does not conduct a proper claim practice

4. Actions Against Eligible Unregistered Insurers

An eligible unregistered insurer may be sued upon a cause of action arising in Jamaica under a facultative

insurance placements contract made by it or evidence of insurance issued or delivered by the FPB.

Policies issued by the eligible unregistered insurer must contain a provision stating the substance of this

regulation and must also designate a person to whom the Commission must send all correspondence.

5. Duties of the Facultative Placement Broker and Local Insurance Company

f) a) No contract of insurance placed by a FPB shall be binding on the policyholder and no premium

is due and payable until the FPB has notified the policyholder in writing, in a form acceptable to the

Commission, that:

(i) the insurer with which the FPB places the insurance is not registered with the

Commission and is not subject to its supervision; and

(ii) in the event of insolvency of the insurer the policyholder may have to pursue losses in

another jurisdiction.

b). Certificate, Cover Note, Binder or other Evidence of Insurance

Once the insurance is approved, if the policy is not readily available, the certificate, cover note or

binder containing certain information, must be delivered within thirty (30) days to the policyholder

or to the producing broker. This information must include:

i) For facultative placements - The name of the FPB and the following legend in bold ten-

point type: “This is evidence of insurance procured under Section 20 of the Insurance

Act, 2001 and Part XIII of the Insurance Regulation, 2001. The insurer(s) is/(are) not

regulated by the Commission”;

ii) The description and location of the property insured and its location;

iii) General description of the coverage including material limitations, the premium, the rate

and the taxes applicable;

iv) Name and address of the policyholder, the FPB, the insurer or insurers, the proportion of

the risk assumed by each insurer and the registration number of the FPB;

v) Copies of any other agreements, conditions, endorsements, exclusions, clauses or any other

material facts that would normally be included in the policy.

46

Once the policy is available, in addition to the information required for the certificate, cover note or

binder, the policy must also designate the person in Jamaica to whom the Commission shall mail

process.

If after the delivery of any evidence of the insurance there is:

• a change in the identity of the insurer(s), or

• a change in the proportion of risk assumed by the insurer(s) or

• any other material change in coverage, or

• a change in any other material as to the insurance coverage

then, within seven (7) days of the change, an endorsement to the original document or an appropriate

substitute for same showing the current status and insurers should be delivered to the policyholder

or the producing broker.

c). Filing Requirements

Within thirty (30) days of placing insurance with an unregistered insurer, a report must be filed with

the FSC. This report must include:

• the name and address of the policyholder;

• the identity of the insurer(s);

• the description of the subject and location of the risk;

• the premium;

• any other pertinent information that the Commission may reasonably require; and

• the effective date and terms of the insurance contract.

The affidavit must also be filed at the same time (See prescribed format attached).

By the end of the month following the end of each quarter, two (2) copies of a report showing

business placed with unregistered insurers in the quarter must be filed with the FSC. This report

must contain aggregate gross premiums written, aggregate return premiums and the amount of

aggregate taxes remitted to the government.

d). Records

The following records on unregistered insurance placed must be maintained for a minimum of five

(5) years following the termination of the contract and be available for examination at all times:

i) A copy of the notice informing the policyholder that:

(a) the insurer is not registered with the Commission nor is subject to its supervision; and

(b) in the event of insolvency of that insurer, the policyholder may have to pursue losses in

another jurisdiction.

Please note that this notice is required before the contract can be binding upon the

policyholder and before any premiums are due and payable.

ii) A copy of the quarterly report filed with the FSC.

iii) A complete and true record of the insurance contract which includes a copy of the policy,

certificate, cover note, any other evidence of insurance, any correspondence relating to the

insurance and the application in accordance with Regulation 155(1).

It is important to note that the Commission, by granting permission to an entity to place insurance

business with an unregistered insurer, does not assume any liability towards the applicant in relation

to the insurance contract concerned or its placement [see Section 20 (3) of the Insurance Act].

47

This bulletin contains the general provisions for placing business with unregistered insurers. It does

not replace the need for a careful review of the applicable provisions in the Insurance Act, 2001 and

the Insurance Regulations, 2001.

All questions regarding this information bulletin on placing business with unregistered insurers should be

directed to:

The Financial Services Commission

39-43 Barbados Avenue

P.O. Box 325

Kingston 5, Jamaica, W.I.

Telephone (876) 906-3010

Email: [email protected]

48

AFFIDAVIT

Pursuant to Regulation 149(f) Insurance Regulations, 2001

RE: Insurance Placement with an Uninsured Unregistered Insurance Company

……………………………………………………………………, declares that it has employed

(Name of Facultative Placement Broker or Company) diligent efforts to place the coverage stated in

the report, which this affidavit forms a part of, with a company registered in Jamaica but was

unsuccessful in part or in whole. Diligent efforts included contacting, in writing, every local insurance

company registered to transact the relevant class of business and receiving a written response as to

their partial or total inability to do so.

The following companies were contacted and they indicated their inability to provide the required

coverage:

Further, the Client policyholder ……………………………………was informed, in writing, prior to placement of the

insurance that:

(Name of policyholder)

1. the facultative placement insurer(s) with whom the insurance was to be placed is not registered in

Jamaica and is not subject to supervision by the Financial Services Commission or any other

regulatory body in Jamaica; and

2. in the event of the insolvency of the facultative placement insurer(s), claims may have to be pursued

in other jurisdictions.

I …………………………………………………… declare that the information given above is accurate

and complete.

(Name of Principal Officer)

Dated the _____ ______ day of ______________ ______

(Date) (Month) (Year)

Signed by: ( ____________________________ )

in the presence of: ( ___________________________________ )

Signature

( ___________________________ ) ______________________________

Justice of the Peace/ Signature and Seal

Attorney at Law

Intermediary Name: ___________________________________

Period Ending: ___________________________________

Date: __________________________________

NO.

INSURANCE

COMPANY

DATE

CONTACTED

%

ABLE TO

COVER

NO.

INSURANCE

COMPANY

DATE

CONTACTED

%

ABLE TO

COVER

1 8

2 9

3 10

4 11

5 12

6 13

7 14

49

FACULTATIVE INSURANCE PLACEMENTS

Facultative

Placement

Insurer

Type of

Policy

Gross Premiums

Written

Return Premiums

From Facultative

Insurer

Return Premiums

Paid to

Policyholder

Date

Remitted to

Jamaica

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

TOTAL

To the best of my knowledge the above information represents an accurate account of facultative insurance

placement transactions for quarter ending………………..………..

NAME: ________________________________

(Principal or officer)

SIGNATURE: ________________________________

DATE: ________________________________

50

PART 3 - Agreement

INSURANCE BROKER CONTRACT

BETWEEN

______________________________

[name of procuring entity]

AND

__________________________________

[name of successful broker]

Section VI Agreement 51

Section VI Agreement

This AGREEMENT (hereinafter called the “Agreement”) is made the [number] day of the month of [month], [year], between, on the one hand, [name of procuring entity] (hereinafter called the “procuring entity”) and, on the other hand, [name of broker] (hereinafter called the “broker”).

[Note: If the broker consist of more than one entity, the above should be partially amended to read as follows: “…(hereinafter called the “procuring entity”) and, on the other hand, a JV (name of the JV) consisting of the following entities, each member of which will be jointly and severally liable to the procuring entity for all the broker’s obligations under this Agreement, namely, [name of member] and [name of member] (hereinafter called the “broker”).]

WHEREAS

WHEREAS

(a) the procuring entity has requested the broker to provide certain insurance broker services as defined in this agreement (hereinafter called the “services”);

(b) the broker, having represented to the procuring entity that it has the required professional skills, expertise and technical resources, has agreed to provide the services on the terms and conditions set forth in this agreement;

(c) the procuring entity has received public funds towards the cost of the consulting services.

(d) The broker carries on the business of insurance brokerage and is registered to carry on such business under the provisions of the Insurance Act.(e)The procuring entity requires insurance to cover various risks in connection with its operations, which insurance shall come up for renewal and shall be effected on the commencement date [insert date] and on the [day] of [month] [year]procuring entity in each subsequentyear (hereinafter called the "renewal period").

(f). By public notice/letter of invitation, the procuring entity invited tenders from pre-qualified, registered Insurance brokers for the provision of services in relation to the procuring entity’s insurance portfolio.

(g). The procuring entity issued to prospective Intermediaries, including the broker, specifications and data relevant to procuring entity’s insurance requirements, being documents entitled "Information and Specifications for Coverage” for the year from the commencement date________________to___expiry date__________, appended hereto as Appendix 1.

(h). proposals were received from various Intermediaries, including the broker, whose winning bid is appended hereto as Appendix 2.

NOW THEREFORE the Parties hereto hereby agree as follows:

1. Entire Agreement. This Agreement contains all covenants, stipulations and provisions agreed by the Parties. No agent or representative of either Party has authority to make, and the Parties shall not be bound by or be liable for, any statement, representation, promise or agreement not set forth herein.

2. The following documents attached hereto shall be deemed to form an integral part

of this Agreement:

Appendix 1: Information and Specifications for Coverage

52

Appendix 2: Broker’s proposal

Appendix 3: Letter of Appointment

In the event of any inconsistency between the documents, the following order of precedence shall prevail: the Special Terms and Conditions (STC), the Agreement Terms and Conditions and Appendices. Any reference to this Agreement shall include, where the context permits, a reference to its Appendices.

3. The mutual rights and obligations of the procuring entity and the broker shall be as set forth in the Agreement, in particular:

(a) the broker shall carry out the services in accordance with the provisions of the Agreement; and

(b) the procuring entity shall make payments to the broker in accordance with the provisions of the Agreement.

Now this AGREEMENT WITNESSETH as follows:

The procuring entity agrees to appoint the broker and the broker agrees to accept such appointment to act procuring entity on the following Terms and Conditions:

1. COMMENCEMENT AND DURATION

In accordance with Letter of Appointment dated [number] day of the month of [month], [year],procuring entity appended hereto as Appendix 3, the appointment shall be for a period of as specified in the STC.

2. REMUNERATION

The broker’s estimated remuneration for services provided shall be as indicated in the STC:

3. SERVICES

During the term of this Agreement, the broker shall provide the services as specified at Appendix 1 hereinafter set forth in accordance with the terms and conditions of this Agreement.

4. BROKER'S OBLIGATION

4.1. Administration of Insurance Account

(a) The broker shall liaise with the procuring entity through the authorised

representative specified in the STC to handle their insurance portfolio.

(b) The broker shall provide an authorised representative.

(c) The broker shall appoint technically knowledgeable Account Staff as specified in

the STC.

(d) Where applicable the broker shall liaise with overseas insurance Intermediaries to

ensure that the procuring entity’s insurance portfolio is adequately serviced.

(e) The broker shall exercise reasonable care and diligence in the performance of its

duties under the Agreement and shall use its best endeavours to obtain the best

coverage at the most favourable premium rates.

(f) The broker shall promptly return any fees and/or brokerage commissions received

in respect of insurance policies that are voided by Insurers or otherwise terminated

and the broker shall secure the return of premium(s) from the insurer(s) and

promptly pay this to the procuring entity.

53

(g) The broker, Experts and Insurers are responsible for meeting any and all tax

liabilities arising out of the contract unless it is stated otherwise in the STC.

4.2. Insurance Placement in Respect of Each Contract Year

4.2.1 The broker shall negotiate, procure and place insurance coverage on behalf of the

procuring entity with competent, reputable and suitable Insurers, and maintain such

insurance coverage as meets the procuring entity’s needs and are on terms and

conditions which are in the best interest of the procuring entity. For the first Agreement

year the coverage shall be in accordance with the bid submitted at Appendix 2.

4.2.2 For the first and second renewal of the insurance coverage, the broker shall

commence the renewal negotiations no later than two (2) months prior to the expiry

date of the policies. The broker shall keep the procuring entity fully informed of the

progress of such negotiations and shall, at least six (6) weeks prior to renewal date,

advise the procuring entity of the renewal terms, and provide to the procuring entity

details of the proposed terms of the coverage and the premiums, substantiated by

Intermediaries Slips which are signed, stamped and dated by all local insurers and at

least the lead insurer/reinsurer if coverage is to be placed overseas, whether directly

or via Facultative Insurance/Reinsurance.

4.2.3 The broker shall disclose to the procuring entity details of all insurers providing

coverage to the procuring entity whether local or overseas and where coverage is by

means of Facultative Insurance the broker shall disclose the local fronting insurer, the

lead overseas insurer, the fronting fees and overseas commissions.

4.2.4 The broker shall deal with the issuance of final policy wording in accordance with

any agreed changes.

4.2.5 The broker shall notify the procuring entity in writing of any restrictions, terms,

conditions and warranties imposed by any Insurer that are not stated in the policy and

that the broker has been made aware of.

4.2.6 The broker shall collect, prepare and present required information to Insurers to

facilitate the placement of the insurance and ensure that there is no interruption in

procuring entity’s insurance coverage as a result of error or negligence on the part of

the broker.

4.2.7 The broker shall, in the event of being unable to procure coverage on any

particular risk in procuring entity’s insurance portfolio; give notice in writing to

procuring entity of such failure immediately after the fact shall have become or could

reasonably have become known to the broker.

4.2.8 The broker shall, at least three (3) months before the end of the Agreement

period, prepare and present detailed and accurate information on the insurance

requirements of the procuring entity.

In carrying out these functions, the broker shall act in a professional manner in the interest of the procuring entity.

4.3. Insurance Risk Management

4.3.1 The broker shall in relation to the Risks and Insurance Coverage of the procuring

entity monitor and advise the procuring entity on the following:

(a) The relative costs of the principal types of insurance which in the opinion of the

broker might be suitable to procuring entity’s needs.

54

(b) The competency and solvency of Insurers with whom insurance policies are

placed on behalf of the procuring entity.

(c) The ability and record of such Insurers with regard to payment of claims.

(d) Any other factor whatsoever, relating to the procuring entity’s risk exposure and

to the ability and competency of any of the Insurers to continue to provide the insurance

coverage in the insurance portfolio.

4.3.2 With respect to performance of the obligations set out in (b) (c) and (d) above,

the broker may rely on the advice and information available to the Financial Services

Commission in relation to policies of insurance which are placed on the Jamaican Market.

4.4. Premiums

4.4.1 The broker shall collect from the procuring entity and punctually remit to the

Insurers the insurance premiums for the coverage being provided to the procuring entity.

4.4.2 The broker shall account to procuring entity for all premiums collected from the

procuring entity.

4.4.3 Where applicable the broker shall liaise with overseas Insurers to ensure the

procuring entity’s insurance portfolio is adequately services.

4.4.4 The broker shall disclose to the procuring entity the name of all Insurers (local and

overseas) and/or Sub-Intermediaries, with whom a Agreement is placed on its behalf

and the premium payable to each.

4.4.5 In the event that renewal rates/premiums have been increased by 10% or more

over the previous year, the procuring entity reserves the right to review this Agreement.

The procuring entity reserves the right to terminate this agreement if the renewal

rates\premiums have been increased by 15% or more over the previous year other than

by reason of claims or increased risk factors.

4.5. BROKER'S RENUMERATION

4.5.1 The broker's sole remuneration in respect of services will be to the broker by the Insurer with whom each insurance policy is placed. The Broker’s remuneration for services provided shall be its normal Brokerage fees and commissions which shall be payable by the Insurers out of the premiums collected for the policies of insurance placed on behalf of the procuring entity. 4.6. Claim Procedures

4.6.1 The broker shall design claim procedures for the procuring entity.

4.6.2 The broker shall promptly notify and negotiate claims and settlement with Insurers

as soon as advice of such claims is given by the procuring entity, and take responsibility

for resolving any disputes in relation to the claims.

4.6.3 The broker shall provide the procuring entity with a prescribed status report on all

claims made by or against the procuring entity on a monthly basis.

4.7. Indemnity

The broker shall indemnify the procuring entity for all loss, damage or expense wholly or partially occasioned to the procuring entity by the neglect, error or act of omission of the broker, its servants, agents and/or employees in respect of this Agreement provided that the broker shall not be liable to the procuring entity for any loss, damage,

55

costs, or expenses of an indirect or consequential nature including without limitation any economic loss or other loss of turnover, profits, business or goodwill.

4.8. Professional Indemnity Insurance

The broker shall at its own cost, effect and maintain professional indemnity insurance as specified in the STC to cover losses as mentioned above in keeping with the requirements of the Financial Services Commission.

5. Obligations of the Procuring Entity

5.1. Relevant Information

5.1.1. During the term of this Agreement, the procuring entity shall provide the

broker with all information relating to the operation of the procuring entity and access

to all buildings, plants and sites and other property of the procuring entity including

information as may be required and as may be reasonably requested.

5.1.2. The procuring entity shall prepare and deliver required information for the

Insurers via the broker in a timely manner and within the time frame stipulated by the

Insurers to facilitate and negotiate placement of insurances and compliance with the

procuring entity’s deadlines and ensure that there is no interruption in the coverage as

a result of the procuring entity’s failure, neglect or tardiness to do.

5.1.3. The procuring entity shall notify the broker of material changes in the usage

of any of the procuring entity’s facilities relative to the services.

5.1.4. Information provided by the broker shall not relieve the procuring entity of

any obligation or duty owed to an Insurer to make disclosure of information not provided

by the procuring entity to the broker.

5.2. Payment of Premiums

5.2.1. The procuring entity shall remit all insurance premiums to the broker within

thirty (30) days of the placement of insurance cover by the broker.

5.3. Administration of the Insurance Account

5.3.1. The procuring entity shall liaise with the broker through the authorised

representative in the handling of the services.

5.3.2. The procuring entity shall provide persons knowledgeable in the operations

of the procuring entity who can pro-actively generate new and critical information to

enable the broker to act.

5.3.3. The broker shall keep, and shall make all reasonable efforts to cause its Sub-

Intermediaries to keep, accurate and systematic accounts and records in respect of the

services, and in such form and detail as will clearly identify relevant time changes and

costs.

5.3.4. The broker shall permit and shall cause to permit, the procuring entity

and/or persons appointed by the procuring entity to inspect the Site and/or all accounts

and records relating to the performance of the contract and the submission of the bid

to provide the services, and to have such accounts and records audited by auditors

appointed by the procuring entity if requested by the procuring entity.

5.4. Indemnity

5.4.1 The procuring entity hereby acknowledges that the broker may and will rely upon

all information given to the broker by the procuring entity in connection with the

56

performance of the services pursuant to this Agreement and the procuring entity hereby

agrees to release and indemnify and hold harmless the broker from and against all suits,

actions, claims, liabilities and costs and expenses which may result from such

information proving to be incorrect or misleading in any respect.

6. Force Majeure

6.1 Definition

6.1.1 For the purposes of this contract, “Force Majeure” means an event which is beyond the reasonable control of a Party, is not foreseeable, is unavoidable, and makes a Party’s performance of its obligations hereunder impossible or so impractical as reasonably to be considered impossible under the circumstances, and subject to those requirements, includes, but is not limited to, war, riots, civil disorder, earthquake, fire, explosion, storm, flood or other adverse weather conditions, strikes, lockouts or other industrial action confiscation or any other action by Government agencies.

6.1.2 Force Majeure shall not include (i) any event which is caused by the negligence or intentional action of a Party or such Party’s Experts, brokers or Insurers, nor (ii) any event which a diligent Party could reasonably have been expected to both take into account at the time of the conclusion of this contract, and avoid or overcome in the carrying out of its obligations hereunder.

6.1.3 Force Majeure shall not include insufficiency of funds or failure to make any payment required hereunder.

a. No Breach of Contract

6.1.4 The failure of a Party to fulfill any of its obligations hereunder shall not be considered to be a breach of, or default under, this contract insofar as such inability arises from an event of Force Majeure, provided that the Party affected by such an event has taken all reasonable precautions, due care and reasonable alternative measures, all with the objective of carrying out the terms and conditions of this contract.

b. Measures to be Taken

6.1.5 A Party affected by an event of Force Majeure shall continue to perform its obligations under the contract as far as is reasonably practical, and shall take all reasonable measures to minimize the consequences of any event of Force Majeure.

6.1.6 A Party affected by an event of Force Majeure shall notify the other Party of such event as soon as possible, and in any case not later than fourteen (14) calendar days following the occurrence of such event, providing evidence of the nature and cause of such event, and shall similarly give written notice of the restoration of normal conditions as soon as possible.

6.1.7 Any period within which a Party shall, pursuant to this contract, complete any action or task, shall be extended for a period equal to the time during which such Party was unable to perform such action as a result of Force Majeure.

6.1.8 During the period of their inability to perform the consulting services as a result of an event of Force Majeure, the broker, upon instructions by the procuring entity, shall either:

(a) demobilize, in which case the broker shall be reimbursed for additional costs

they reasonably and necessarily incurred, and, if required by the procuring

entity, in reactivating the services; or

57

(b) continue with the services to the extent reasonably possible, in which case

the broker shall continue to be paid under the terms of this contract and be

reimbursed for additional costs reasonably and necessarily incurred.

6.1.9 In the case of disagreement between the Parties as to the existence or extent of Force Majeure, the matter shall be settled according to Clause 10 of this Agreement.

7 Conflict of Interest

7.1 The broker shall hold the procuring entity’s interests paramount, without any

consideration for future work, and strictly avoid conflict with other assignments

or their own corporate interests.

a. broker Not to Benefit from Commissions, Discounts, etc.

7.1.1 If the broker, as part of the services, has the responsibility of advising

the procuring entity on the procurement of goods, works or consulting services,

the broker shall comply with the applicable policies of the Government of

Jamaica, and shall at all times exercise such responsibility in the best interest of

the procuring entity. Any discounts or commissions obtained by the broker in the

exercise of such procurement responsibility shall be for the account of the

procuring entity.

b. Prohibition of Conflicting Activities

7.1.2 The broker shall not engage, and shall cause its Experts and Insurers

not to engage, either directly or indirectly, in any business or professional

activities that would conflict with the activities assigned to them under this

contract.

c. Strict Duty to Disclose Conflicting Activities

7.1.3 The broker has an obligation and shall ensure that its Experts and

Insurers shall have an obligation to disclose any situation of actual or potential

conflict that impacts their capacity to serve the best interest of their procuring

entity, or that may reasonably be perceived as having this effect. Failure to

disclose said situations may lead to the disqualification of the broker or the

termination of its contract.

8 TERMINATION

8.1 Without prejudice to any other rights conferred by the Applicable Law or this

Agreement, the procuring entity shall be entitled to terminate this Agreement in

any of the following events:

8.1.1 If the broker, its servants, agents or employees shall breach any terms of this Agreement, the broker shall remedy the breach within fourteen (14) days of the written notice which the procuring entity may serve on the broker and if the breach remains unremedied at the expiration of the aforesaid notice period, the procuring entity shall be at liberty to terminate the appointment of the broker.

8.1.2 If the broker shall compound with creditors or be put into receivership or shall have a provisional order in bankruptcy made against, it, or being a partnership is dissolved or being a company passes a winding up resolution or has a winding up order made against it.

8.1.3 If the broker shall, for any reason, cease to be a registered broker

58

under the provisions of the Insurance Act or fail to maintain a valid Tax Compliance and registration with the Commission or for whatever reason becomes disqualified, incompetent or ineligible to perform the services.

8.1.4 Furthermore, if it is determined that the broker or the Insurer under the Applicable Law has engaged in fraud and corruption, as defined in GCC Clause 10, in competing for or in executing the contract, then the procuring entity may, after giving fourteen (14) calendar days written notice to the broker, terminate the broker's employment under the contract

8.2 The failure by the procuring entity to enforce at any time or for any period any

one of more of the terms or conditions of this agreement shall not be a waiver of

the right at any time subsequently to enforce all or any new terms and conditions

of this Agreement. In any event the terms and conditions of this agreement shall

be reviewed annually by the procuring entity.

9 NOTICES

9.1 Any Notice to be given under this Agreement by one party to the other shall be in

writing and may be delivered personally or sent by e-mail or facsimile with the

original by registered post addressed to the other Party at the respective addresses

stated in this Agreement or such other address as may be notified by one Party to

the other in writing for that purpose.

9.1.1 Any such Notice sent by e-mail or facsimile with original by registered

post will be deemed to be served one (1) day after transmission and in

proving such service it shall be sufficient to prove that the notice was

properly addressed.

10 APPLICABLE LAW

10.1 This Agreement shall be construed and governed in accordance with the Laws

of Jamaica.

11 DISPUTES

11.1 The procuring entity and the broker shall make every effort to resolve amicably

by direct informal negotiation any disagreement or dispute arising between them

under or in connection with the Agreement in accordance with the STC.

11.2 If, after twenty-eight (28) days, the Parties have failed to resolve their dispute

or difference by such mutual consultation, then either the procuring entity or the

broker may give notice to the other party of its intention to commence

arbitration, as hereinafter provided, as to the matter in dispute, and no

arbitration in respect of this matter may be commenced unless such notice is

given. Any dispute or difference in respect of which a notice of intention to

commence arbitration has been given in accordance with this Clause shall be

finally settled by arbitration. Arbitration may be commenced prior to or after

delivery of the goods under the Agreement. Arbitration proceedings shall be

conducted in accordance with the rules of procedure specified in the STC.

11.3 Notwithstanding any reference to arbitration herein,

(a) the Parties shall continue to perform their respective obligations under

the Agreement unless they otherwise agree; and

(b) the procuring entity shall pay the broker any monies due the broker.

59

11.4 Any dispute between the Parties arising under or related to this Agreement that

cannot be settled amicably may be referred to by either Party to the

adjudication/arbitration in accordance with the provisions specified in the STC.

12 CONFIDENTIALITY

Neither Party shall without the prior written consent of the other use or disclose any information acquired from the other, except in the normal course of executing the respective objectives of each party.

13 FRAUD AND CORRUPTION

13.1 The Government of Jamaica requires that all Parties involved in the procurement proceedings and execution of such contracts observe the highest standard of ethics.

13.2 For the purposes of this provision, offences of fraud and corruption are defined in Part VII of the Act and any other Act relating to corrupt activities in Jamaica.

13.3 A person who commits an offence under the Act or any other Act relating to corrupt activities in Jamaica shall

(a) be liable for conviction under the provisions of the Act or any other Act relating to corrupt activities in Jamaica;

(b) have their bid rejected if it is determined that the bid or broker is not in compliance with the provisions of the Act, the regulations or any other Act relating to corrupt activities in Jamaica

(c) risk other sanctions provided for in the Act or the regulations.

i. Commissions and Fees

13.4 The procuring entity requires the broker to disclose any commissions, gratuities or fees that may have been paid or are to be paid to agents, or any other party with respect to the selection process or execution of the Agreement. The information disclosed must include at least the name and address of the agent or the other party the amount and currency, and the purpose of the commission, gratuity or fee. Failure to disclose such commissions, gratuities or fees may result in termination of the Agreement and/or sanctions by the procuring entity.

60

IN WITNESS WHEREOF the Parties hereto have set their hands and affixed their seals on the date first herein before mentioned.

Executed under the Common Seal of )

)

by , Chairman & CEO and ) ……………………………………………………

)

, Secretary, ) ……………………………………………………

duly authorised in that behalf )

In the presence of )

)

)

………………………………… )

Witness

Executed under the Common Seal of )

____________[name of successful broker] )

by , Director and ) ……………………………………………………

)

, Director ) ……………………………………………………

in accordance with its Articles of )

Association in the presence of )

)

)

………………………………… )

Witness

61

Special Terms and Conditions

Clause No

1 The appointment shall be for a period of _________, commencing on _______and ending on ____________.

2 [procuring entity to insert table of priced services]

No Estimated services Required, Year 1

Description,

Details, Estimated Value

Services Charge

In Jamaican dollars

Remarks

1. Cargo Insurance (1) Give details and Est’d Value

2. Cargo Insurance (2) Ditto

3. Maritime Insurance (1)

Ditto

4. Maritime Insurance (2)

Etc.

5. Fire Insurance

6. Third Party Liability

7. Automobile and Heavy Equipment

8. Workmen’s Compensation

9. Etc.

10.

ESTIMATED TOTAL FOR THE YEAR

4(a) The authorised representative of the procuring entity is

Name:

Position:

Address:

Facsimile :

E-mail (where permitted):

4(b) The authorised representative of the broker is

Name:

Position:

Address:

Facsimile :

4(c) The broker shall provide the names and contact details (including out of hours

62

contact details) for the following positions to the procuring entity as a minimum level:

[Procuring entity to edit accordingly

(a) Nominated Account Director

(b) Nominated Account Manager

(c) Nominated broker

(d) Nominated Claims Handler ]

4.7 The level of professional indemnity insurance required is [JMD insert figure].

9.2 Amicable Settlement

Any claim for loss or damage arising out of breach or termination of Agreement shall be settled between the procuring entity and broker by negotiation. If this negotiation is not successfully settled within fifteen (15) days after the date of initiation or negotiation or within such longer period as the parities may mutually agree, then the Parties will jointly agree, within ten (10) days after the date of expiration of the period in which the Parties should have successfully concluded their negotiations, to appoint a Mediator to assist in reaching an amicable resolution of dispute. This procedure shall be private and without prejudice. If the Parties fail to agree upon the appointment of a Mediator within the stipulated period, then, within seven (7) days of expiration of this period, the procuring entity shall request appointment of a Mediator by the Dispute Resolution Foundation of Jamaica. The Mediator shall not have the power to impose a settlement on the Parties. If the dispute is not resolved between the Parties within thirty (3) days after the appointment of the Mediator by the Dispute Resolution Foundation of Jamaica, or after such longer period as the Parties may mutually agree, the mediator shall advise the Parties of the failure of the Mediation.

For the purposes of this clause, a negotiation is deemed to have been initiated as of the date of receipt of notice by one party of a request from the other party to meet and negotiate the matter in dispute.

For the purposes of this clause, a Mediator is deemed to have been appointed as of the date of notice of such appointment being given to both Parties.

9.4 Dispute Settlement

In the event of the failure of the mediation between Parties, the mediator will record those verifiable facts that the Parties have agreed. Subsequently the case will be handled by arbitration. The Parties agree to accept the award of the Arbitrator as binding and irrevocable with in the provisions of the Arbitration Act of Jamaica. The mediator’s role in the dispute resolution process shall cease upon appointment of the Arbitrator. During the dispute settlement process, the broker shall continue to perform the consulting services in accordance with this Agreement. Failure to do so shall be considered a breach of Agreement.

Arbitration

The seat of the arbitration shall be Jamaica and disputes shall be settled in accordance with the Arbitration Act of Jamaica. Rules of procedure to be adopted shall be those as published by the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules of 1976.

63

Appendix 1: Information and Specifications for Coverage

[to be inserted]

Appendix 2: broker’s proposal

[to be inserted]

Appendix 3: Letter of Appointment

[to be inserted]

Section VII Contract Forms 64

Section VII. Contract Forms

Table of Forms

1. Letter of Appointment

Section VII. Contract Forms 65

1. Letter of Appointment

[letterhead paper of the procuring entity]

[date]

To: [name and address of the supplier]

Subject: Notification of Award Contract No. [insert number]

This is to notify you that your proposal dated [insert date] for execution of the [insert name of the contract and identification number, as given in the BDS] for the Accepted Contract Amount of [insert amount in words] ([insert amount in numbers]), as corrected and modified in accordance with the Instructions to Brokers is hereby accepted by [insert name of procuring entity].

Authorized Signature:

Name and Title of Signatory:

Name of procuring entity: