5 U.S.C. 8709; 40 U.S.C. 486(c); 48 CFR 1.301.
FAR part 5 has no practical application to the FEGLO Program because OPM does not issue solicitations. Eligible contractors (i.e., qualified life insurance companies) are identified in accordance with 5 U.S.C. 8709.
5 U.S.C. 8709; 40 U.S.C. 486(c); 48 CFR 1.301.
FAR part 6 has no practical application to the FEGLI Program in view of the statutory exception provided by 5 U.S.C. 8709.
5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.
FAR subpart 9.4 is implemented by changing the FAR offeror's certification at FAR 52.209-5 (which is part of a solicitation) to a pre-contract certificate and a contract clause. These provisions reflect the FEGLI Program's statutory exemption from competitive bidding (5 U.S.C. 8709), which obviates the issuance of solicitations.
(a) The contracting officer may require the precontract certificate in 2152.209-70 to be filed prior to or during negotiations.
(b) The contracting officer shall insert the clause at 2152.209-71 in all FEGLI Program contracts.
(a) The contractor must meet the requirements of chapter 87 of title 5, United States Code; parts 870, 871, 872, 873, and 874 of title 5, Code of Federal Regulations; chapter 1 of title 48, Code of Federal Regulations, and the standards in this subpart. The contractor shall continue to meet these and the following statutory and regulatory requirements while under contract with OPM. Failure to meet these requirements and standards is cause for OPM's termination of the contract in accordance with part 2149 of this chapter.
(b) The contractor must actually be engaged in the life insurance business and must be licensed to transact life and accidental death and dismemberment insurance under the laws of all the States and the District of Columbia at the time of application.
(c) The contractor must not be a Federal, State, local or territorial government entity.
(d) The contractor must not be debarred, suspended or ineligible to participate in Government contracting or subcontracting for any reason.
(e) The contractor must keep statistical and financial records regarding the FEGLI Program separate from that of all its other lines of business.
(f) The contractor must enter into rate redeterminations as deemed necessary by OPM.
(g) The contractor must furnish such reasonable reports as OPM determines are necessary to administer the FEGLI Program.
(h) The contractor must establish and maintain a system of internal control that provides reasonable assurance that:
(1) The payment of claims and other expenses is in compliance with legal, regulatory, and contractual guidelines;
(2) Funds, property, and other FEGLI Program assets are safeguarded against waste, loss, unauthorized use, or misappropriation;
(3) Revenues and expenditures applicable to FEGLI Program operations are properly recorded and accounted for to permit the preparation of reliable financial reporting and to maintain accountability over assets; and,
(4) Data are accurately and fairly disclosed in all reports required by OPM.
(i) The contractor must permit representatives of OPM and of the General Accounting Office to audit and examine records and accounts pertaining to the FEGLI Program at such reasonable times and places as may be designated by OPM or the General Accounting Office.
5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.
This subpart prescribes mandatory specifications for performance under FEGLI Program contracts.
(a) The contractor is required to invest and reinvest all FEGLI Program funds on hand, including any attributable to the special contingency reserve (as used in 5 U.S.C. 8712), until needed to discharge promptly the obligations incurred under the contract. Within the constraints of safety and liquidity of investments, the contractor shall seek to maximize investment income.
(b) The contractor is required to credit income earned from its investment of FEGLI Program funds to the FEGLI Program. Thus, the contractor must be able to allocate investment income to the FEGLI Program in an appropriate manner. If the contractor fails to invest funds on hand, properly allocate investment income, or credit any income due to the contract, for whatever reason, it shall return or credit any investment income lost to OPM or the FEGLI Program, retroactive to the date that such funds should have been originally invested in accordance with 2152.210-70.
The contractor is required to inform the contracting officer of all significant events.
(a) The clause at 2152.210-70 shall be inserted in all FEGLI Program contracts.
(b) The clause at 2152.210-71 shall be inserted in all FEGLI Program contracts.