MARAD Protection & Indemnity Policy Services

Questions & Answers / Clarifications

This document provides responses to vendor questions regarding Solicitation 693JF726R000003 for Protection & Indemnity (P&I) Policy.

• Loss Ratio Report: MARAD has had no loss claims with American Club. The 2024 American Club Annual Report, which includes loss ratio information, is available on their website.
• Claims History: MARAD has filed $0 in claims since entering with American Club in 2020.
• Deductible Structure: Details are provided in the attached Certificate of Entry (COE).
• Sample Certificate of Entry (COE): A sample COE is attached. It clarifies that the entry is Mutual and details any required P&I coverage extensions.
• Proposal Submission: Team biographies in the appendix count towards the 30-page limit for the technical proposal.
• Key Personnel: Key personnel can include multiple team members with a significant level of effort.
• Limit Structure: The RFP references a minimum of $1 billion per vessel. The current COE limits the Association's liability to $1,000,000,000 per accident or occurrence. No fleet-wide aggregate limit is contemplated or prohibited. Coverage is $1B in any one accident or occurrence regardless of the number of vessels involved.
• Cadet Exposure: Cadets are classified as "cadets" and are not crew or passengers. There are no specific indemnity expectations related to cadet injury or illness.
• Trading & Navigation: The current COE provides relevant limitations and territory restriction clauses.
• Claims Handling: Insurers retain the authority to settle claims, but the Department of Justice has the final say on litigation positions and legal defense strategies.
• No Recourse Requirement: The P&I program is expected to prohibit any form of supplementary call, assessment, or recourse to assureds, meaning it should be a fixed premium coverage.

This Q&A document clarifies several aspects of the solicitation, including proposal submission guidelines, coverage limits, and claims handling. Bidders should review these answers carefully as they may impact their proposal preparation and understanding of the P&I policy requirements.

Form / Attachment / Pricing Sheet

This document is a Certificate of Entry for Class I - Protection & Indemnity Insurance, issued by The American Club (American Steamship Owners Mutual Protection and Indemnity Association, Inc.) to the Maritime Administration, Department of Transportation. It serves as evidence of the insurance contract for specified vessels.

• Member: Maritime Administration, Department of Transportation.
• Policy Year: 2025.
• Coverage: Class I - Protection & Indemnity Insurance.
• Vessels: Listed in a schedule, including "EMPIRE STATE," "GOLDEN BEAR," "KENNEDY," "PATRIOT STATE," and "STATE OF MICHIGAN," with their respective IMO numbers, flags, ports of registry, and gross tonnage.
• Period of Cover: Commences 20-FEB-25 and renews on 20-FEB-26.
• Special Terms & Conditions: Includes details on collision coverage, no laid-up returns, a limit of liability of US$1,000,000,000 per accident/occurrence, specific joint members, a US$10,000 deductible per accident (US$100,000 annual maximum), no hull insurance clause, and an applicable law clause (US Federal Law and New York State law).
• Endorsement: Details specific requirements for pre-employment medical examinations for crew hired from certain countries, with penalties for non-compliance.

This document confirms insurance coverage for vessels operated by the Maritime Administration. Bidders responding to opportunities involving these vessels should be aware of the insurance status and terms, particularly any implications related to the specified coverage, deductibles, exclusions, and the endorsement regarding crew medical examinations.

Solicitation / RFP / RFQ

This solicitation is for a licensed and experienced marine insurance broker to establish, manage, and administer a fleet Protection & Indemnity (P&I) Policy. The policy will provide coverage for risks associated with training ships owned by the U.S. Government and berthed at six State Maritime Academies (SMAs). The government may add or subtract vessels during the contract period.

• Brokerage and consultancy services for MARAD and SMAs.

• Placement, management, and administration of a fleet P&I coverage policy.

• Canvassing the P&I club market for best value.

• Advising MARAD on P&I coverage risks and costs.

• Placing annual P&I fleet coverage.

• Supporting MARAD with insurance claim processing.

• Policy must include a clause that does not require mandatory binding arbitration or pursuit of claims in foreign courts.

• Policy must have a "no recourse" clause to avoid club calls due to the Anti-Deficiency Act.

• Policy must cover the Federal Government and SMAs, naming them as assureds.

• Broker must be knowledgeable about U.S. admiralty and maritime law, including administrative claims processes.

• Deliverables include:

  • Draft project/deliverable schedule.
  • Fully executed policy for each performance year.
  • Copy of state brokerage license.

• Contract Type: Firm-Fixed-Price.

• Period of Performance: Base period from 02/19/2026 to 02/18/2027, with four (4) 12-month option periods.

• Total contract duration not to exceed 60 months/5 years.

• Estimated value: Not explicitly stated, but the P&I policy limits are at least $1,000,000,000 per training ship.

• Questions due: January 14, 2026, by 4:00 PM EST.

• Proposals due: January 30, 2026, by 4:00 PM EST via email to Lisa.Miles@dot.gov.

• Proposal format: Two volumes (Technical and Price).

• Technical Proposal: Max 30 pages, including an executive summary, corporate experience (3 examples), key personnel resume (min 10 years marine insurance experience), and past performance (min 3 references).

• Price Proposal: Includes commission percentage for Brokerage Services and an estimate for P&I Policy (TBD after award).

• Evaluation Factors (in descending order of importance):

  1. Corporate Experience
  2. Key Personnel Resume
  3. Past Performance
  4. Price

• Award will be made to the offeror whose proposal represents the best value.

• NAICS Code: 524210 (Insurance Agencies and Brokerages).

• Size Standard: $15M.

• No specific set-aside is mentioned in the provided pages.

• The solicitation includes numerous FAR clauses incorporated by reference.

• Key Personnel: Brokerage Agent.

• Government Points of Contact: Douglas Kennard (PCO) and Levi Abrams (COR).

• Place of Performance: [TBD].