Actuarial analysis & consultation services

Trade Agreement: NONE Tendering Procedures: All interested suppliers may submit a bid Attachment: None Competitive Procurement Strategy: Lowest/Lower Bid Comprehensive Land Claim Agreement: No Nature of Requirements: TITLE

Actuarial Analysis and Consultation Services

OBJECTIVE

VAC requires the Contractor to provide recommendations on the acquired actuarial costing models to be used to calculate an actuarial valuations of benefits options afforded to Veterans based on a reliable and objective financial comparison of benefits received under the Pension Act prior to the introduction of the New Veterans Charter on April 6, 2006 and those received under the Charter after its introduction.

BACKGROUND

The introduction of the New Veterans Charter (NVC) in 2006 represented the most sweeping changes to Veterans' benefits and services in the past 60 years.

This modernization moved Veterans Affairs Canada (VAC) Programs from a model of delivery of benefits to aging Veterans to a model of case management aimed at encouraging and supporting younger clients as they re-establish themselves in civilian life. NVC programs and services are intended to support Veterans and clients at a point in time in which they are needed. Other programs and services NVC offers include rehabilitation, financial benefits, health benefits, and career transition services.

The implementation of the NVC and the shift from monthly disability pensions to lump sum disability awards has met with both praise and criticism from individual Veterans, Veterans' organizations, Departmental Advisory committees, and the Veterans Ombudsman. For some clients, the NVC has been a positive experience; on the other hand some stakeholders would like to see VAC revert to either a monthly model or one that offers clients a choice (among the single lump sum, an annuity, or a monthly pension). In some circumstances over the course of a lifetime, a disability pension and associated benefits results in more benefits being paid to the client than is the case with the disability award and other relevant NVC benefits.

Case scenarios were used in the original design of the NVC programs and have been used periodically since its introduction to examine the impact of Program changes on individual VAC clients and groups of clients as the primary method of comparative analysis to demonstrate the similarities and differences in the two benefits at the client level, depending on the type of client and the extent of disability. Each case provides present value calculations to compare the lifetime value of a monthly pension payment to a lump-sum payment and other NVC benefits.

Which payment stream is most monetarily advantageous is dependent on factors including marital and dependent status, life expectancy, and severity of disability. The disability award (DA) and disability pension (DP) are not easily compared in all circumstances and because the tools used to do the assessment of individual client circumstances were done over time and for varying purposes. VAC is not always able to respond to or react in a timely and consistent manner to analysis from external veterans or organizations that suggests the NVC benefits for an individual client or client group are more or less than what would have been offered pre-NVC.

SCOPE OF WORK

The Department has acquired an Actuarial Valuation Model which will permit to improve its capacity to complete actuarial valuations of existing benefits and to conduct "what-if" scenario planning for business and policy planning purposes. The Model operates primarily in a MS Excel environment with links to supporting data files. To ensure the accuracy and relevance of cost information, VAC requires the professional services of an actuary consultant with experience to provide the professional knowledge and advice to assist the Chief Financial Officer in establishing actuarial models and methodologies.

PERIOD OF THE CONTRACT

The period of the Contract is from date of Contract to September 30, 2013 inclusive.

MANDATORY TECHNICAL CRITERIA

MT1: The bidder must demonstrate that the proposed resource have a minimum of 6 years of experience in providing actuarial estimates and/or actuarial consulting services for health or social programs.

Bidder must provide detailed information including project description, start and end dates by month and client name and telephone number.

MT2: The bidder must demonstrate that the proposed resource have at least one of the following work experience:

- minimum of 6 years of experience at the executive level in preparing or providing strategic, expert advice and recommendations to senior management on client or human resources and program expenditure forecasts and costing estimates;

or

- minimum of 6 years of experience with statistical methodologies and applications used to prepare forecast frameworks or models for health or social programs.

Bidder must provide detailed information including project description, start and end dates by month and client name and telephone number.

MT3: The Bidder must demonstrate that the proposed resource have at least one of the following:

- provide proof of membership as a Fellow in good standing of the Canadian Institute of Actuaries or Society of Actuaries;

And/or

- proof of authorization to append their names with the initials FCIA (Fellow, Canadian Institute of Actuaries) http://www.cia-ica.ca/about-us/actuaries/careers/enrolment/fellow

BASIS OF SELECTION

Lowest Evaluated Price

A bid must comply with the requirements of the bid solicitation and meet all mandatory evaluation criteria to be declared responsive.

The responsive bid with the lowest evaluated price will be recommended for award of a contract.

CONTRACTING AUTHORITY

The Contracting Authority for the Contract is

Jocelyne C Gagnon Supply Specialist Public Works and Government Services Canada Acquisitions Branch Professional Services and Procurement Directorate 11 Laurier Street, Phase III Gatineau, Québec K1A 0S5 Telephone: 819-956-0575 / Facsimile: 819-956-2675 E-mail address: jocelyne.c.gagnon@tpsgc-pwgsc.gc.ca Delivery Date: Above-mentioned

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.