FCT ALI Statement of Work Section C Draft

Section C

PART 1 - SECTION C

DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

C.1

C.2

C.3

C.3.1.1
C.3.1.2

C.3.2 CLAIM MANAGEMENT SERVICES AND OTHER AVIATION LIABILITY PROGRAM

Section C

PART 1 - SECTION C

DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

C.1

INTRODUCTION

The FAA has national contracts for providing air traffic control services at visual flight rules (VFR) control towers. This program is referred to as the Federal Aviation Administration Contract Tower (FCT) Program. Considering the devastating effects associated with an aircraft accident, the FAA acknowledges a need for the Agency to provide aircraft accident liability insurance coverage at each of the FCT locations. The FAA requires liability insurance coverage for each of the approximately 267 FCT locations, as well as the future use of Digital Tower Systems.
C.2

SCOPE

The Contractor must provide technical assistance to the FAA in all aspects of an Aviation Liability Insurance program. The program will provide for a structured approach for acquiring Aviation Liability Insurance to cover current and future FCTs. FCT locations are shown in Section J, Attachment J001, Facility Locations. The Contractor must provide managerial support of the Insurance Program to the FAA after the program has been acquired and implemented. The economic objective of the Aviation Liability Insurance Program is to gain FCT insurance at costs favorable to the FAA.
C.3

REQUIREMENTS

C.3.1 BROKERAGE SERVICES TO ACQUIRE AVIATION LIABILITY INSURANCE

The Contractor must provide brokerage services to acquire aviation liability insurance at the FCT locations identified in Section J, Attachment J001, Facility Locations. The contractor must negotiate premiums, to the extent that they can, in order to be able to provide insurance at a cost most favorable to the FAA. The Contractor must ensure that the FAA retains the flexibility to change the number of facility locations and/or the specific facilities as required. This procurement will allow for up to a 10% increase of the 267 FCTs at no additional premium or fees for the duration of the new contract. The liability coverage to be provided at each location is $30,000,000 per incident, with no aggregate limit.
C.3.1.1

Recommending Insurer(s)

The Contractor must make written recommendations for the selection of insurers to the FAA. Upon review by the FAA of acceptability of the recommended insurance program, the Contracting Officer will provide written authorization for the Contractor to proceed with policy