REQUEST FOR QUALIFICATIONS INSURANCE BROKERAGE SERVICES

REQUEST FOR QUALIFICATIONS INSURANCE BROKERAGE SERVICES SUSQUEHANNA AREA REGIONAL AIRPORT AUTHORITY ONE TERMINAL DRIVE, SUITE 300 MIDDLETOWN, PA 17057 NOVEMBER 18, 2013

TABLE OF CONTENTS Page ARTICLE I INVITATION.... 3 ARTICLE II - GENERAL INFORMATION... 4 2.01 Definitions... 4 2.02 Background... 4 2.03 Special Insurance Considerations... 5 ARTICLE III INSTRUCTIONS TO RESPONDENTS... 5 3.01 Introduction... 5 3.02 Responsibility for Statement... 5 3.03 Statement Submittal... 6 3.04 Statement Deadline... 6 3.05 Minimum Statement Requirements... 6 3.06 Scope of Services... 7 3.07 Contract Term... 7 3.08 SBE/DBE... 7 3.09 Authority Contact... 8 3.10 Pre-Submission Meeting... 8 SECTION 4.00 - POST SUBMITTAL EVENTS... 8 4.01 Evaluation of Statements... 8 4.02 Statement Selection... 9 4.03 Selection Criteria... 9 4.04 Notice of Acceptance of Statement... 9 4.05 Right to Know Law... 9 SECTION 5.00 - SCHEDULE...... 11 5.01 Schedule of Events... 11 EXHIBIT A ORGANIZATIONAL STRUCTURE... 12 EXHIBIT B EXISTING INSURANCE PROGRAM... 13 EXHIBIT C BROKER QUALIFICATIONS/REMITTANCE SHEETS... 17 2

ARTICLE I - INVITATION REQUEST FOR QUALIFICATIONS AIRPORT INSURANCE BROKERAGE SERVICES The Susquehanna Area Regional Airport Authority (SARAA) is seeking statements of qualification from experienced insurance brokers to provide Insurance Brokerage Services for one and/or more insurance policies beginning April 1, 2014. SARAA is a municipal authority that owns and operates Harrisburg International Airport, Capital City Airport, Franklin County Regional Airport and Gettysburg Regional Airport. Interested brokers shall have five years of experience of managing accounts similar in scope and size to SARAA and with at least ten consecutive years of brokerage experience. Interested parties may download the instructions from the HIA website: www.flyhia.com under Doing Business with Us, Insurance RFQ. Sealed responses (one original and five copies) must be submitted to Deputy Director of Finance and Administration, SARAA, One Terminal Drive, Suite 300, Middletown, PA 17057 by 12:00 P.M. EST on December 30, 2013 labeled QUALIFICATIONS FOR AIRPORT INSURANCE BROKERAGE SERVICES. SARAA reserves the right to accept, reject and/or make requests for new statements at its sole discretion. 3

SECTION 2.00 - GENERAL INFORMATION 2.01 DEFINITIONS - the following terms and definitions will apply throughout this Request for Qualifications. "Airports" "Authority" Respondent(s) Company(s) Contract(s) Director RFQ Statement means Harrisburg International Airport located in Middletown, PA; Capital City Airport located in New Cumberland, PA; Franklin County Regional Airport located in Chambersburg, PA; Gettysburg Regional Airport located in Gettysburg, PA for the purposes of this document, Authority refers the Susquehanna Area Regional Airport Authority that owns and operates the Airports any company or organization submitting a Statement for the services means the successful company or companies refers to the document allowing Company(s) to provide Insurance Brokerage Services to the Authority refers to the Executive Director who has responsibility for the overall management and administration of the Airports means Request for Qualifications document submitted by Respondent(s) to be considered for Insurance Brokerage Services 2.02 BACKGROUND The Susquehanna Area Regional Airport Authority (SARAA) is a joint municipal authority created in 1998, under the Pennsylvania Municipality Authorities Act of 1945, to own and operate an airport system. It was created by the counties of Dauphin, Cumberland, and York, the cities of Harrisburg and York, and the townships of Lower Swatara and Fairview. SARAA s Board of Directors are volunteer community leaders appointed to staggered five year terms by elected officials from the aforementioned government entities. The airport system consists of Harrisburg International Airport, as the commercial airport, and three general aviation airports, Capital City Airport, Franklin County Regional Airport and Gettysburg Regional Airport. 4

Harrisburg International Airport (HIA) is a small hub, commercial service airport situated on approximately 760 acres of land in Middletown, PA, about 10 miles southeast of the capital city of Harrisburg. On August 2004, SARAA opened the doors to its new terminal building at HIA, claimed to be the first multi modal and intermodal transportation facility built after the September 11 terrorist attacks. In 2012, over 1.3 million passengers utilized SARAA s facilities and services. As of December 2012, seven major/national airlines provide scheduled service to and from HIA. Capital City Airport (CXY) is located in Fairview Township, York County, PA and is compromised of approximately 273 acres of land. CXY is a reliever and a general aviation airport with approximately 33,000 operations in 2012. On July 26, 2004, SARAA acquired Franklin County Regional Airport (FCRA). FCRA is located in Chambersburg, PA and is compromised of approximately 100 acres. At FRCA, there are three hangars owned and managed by the Authority and there are approximately 23 based aircraft. On August 25, 2006 SARAA acquired Gettysburg Regional Airport (GRA) which is a small general aviation airport compromised of approximately 60 acres of land in Gettysburg, PA. At GRA, the Authority owns and manages all aircraft hangars and there are approximately 20 based aircraft. The Authority is responsible for the operations, management and development of the Airports. The Authority staff is classified by functional department, and all department Deputy Directors report to the Executive Director, who in turn reports to the Board of Directors. For informational purposes, the Authority s organizational chart is attached and made part of this RFQ as Exhibit A. 2.03 SPECIAL INSURANCE INFORMATION CONSIDERATIONS At HIA, the Authority owns and operates its own water production and waste water treatment facilities. The water originates from 10 active wells. The Pennsylvania Air National Guard is based at HIA and occupying approximately 40 acres of the property. At HIA and CXY, the fuel farm systems are owned and operated by tenants, and the Authority is not involved in any aspect of that operation. At FCRA, sky diving activities are conducted by an operator and the operator fuels its airplanes via fuel trucks. There are currently no fuel farm systems at FCRA. At GRA, the fuel system is owned and operated by the Authority. It s an above ground system with two 3,000 gallon compartments of AvGas fuel. HIA also has its own Police and Fire Depts. with 24/7 staffing, see Exhibits A and B for additional information on Fire and Police. ARTICLE III INSTRUCTIONS TO RESPONDENTS 3.01 INTRODUCTION. The Authority is seeking Statements of Qualifications based on the Minimum Statement Requirements for one and/or more insurance brokers to provide insurance services for single, multiple or all insurance policies, as specified on Exhibit B of this document. Respondents are required to specify the insurance policies for which they are qualified to provide services. 5

3.02 RESPONSIBILITY FOR STATEMENT. Each Respondent is responsible for carefully examining the terms and conditions set forth in this Request for Qualifications, for making an inspection of the Airports and its facilities, and for otherwise judging for itself all the circumstances and conditions affecting the Respondent s Statement. Submission of a Statement shall be conclusive evidence that the Respondent has made such examinations and investigations. Failure on the part of the Respondent to make such examination and to investigate fully and thoroughly shall not be grounds for any declaration that the Respondent did not understand the conditions of the Statement. 3.03 STATEMENT SUBMITTAL - Respondents shall abide by all the procedures set forth in the Request for Qualifications in the preparation and submission of their Statement. Each Respondent must include one original and five copies of the Statement. Mail or deliver this material to: Thomas C. Peiffer Deputy Director of Finance and Administration Susquehanna Area Regional Airport Authority One Terminal Drive, Suite 300 Middletown, PA 17057 3.04 STATEMENT DEADLINE - Statements must be received at the address provided in Section 3.03 herein no later than December 30, 2013 by 12 p.m. EST. 3.05 MINIMUM STATEMENT REQUIREMENTS - In order for a Respondent s Statement to be considered by the Authority, a Respondent must meet the following minimum requirement and return all the information as requested in Section 7 below Exhibit C: 1) Respondent is licensed to do business in the Commonwealth of Pennsylvania; 2) Name, address and contact information (phone, email, etc.) on Statement; 3) Certification and warranty that it has successfully provided brokerage services for at least the last ten (10) consecutive years; 4) Evidence of a minimum of five (5) years of experience of managing accounts similar in scope and size to the Authority. See Exhibit C as referenced in section 7 below; 5) Proof of professional liability insurance protecting the Responder and its clients; 6) Most recent annual report and financial statements including independent Accountants and/or Auditors report, must be submitted with response to Exhibit C; 6

7) Respondent must answer all questions in attached Exhibit C (Broker Qualifications/Remittance Sheets) and return this form, signed along with your Proposal/Statement; 8) Please limit your submission / statement to 20 pages or less excluding the annual report and financial statements from Article III, Section 3.05, and #5 above. 3.06 SCOPE OF SERVICES. The Company(s) will be expected to perform the following services for the Authority: 1) Conduct an assessment of the Airports and its facilities; 2) Develop an understanding of the Airports areas of exposure and implement strategies to address such exposure; 3) Evaluate Authority s existing insurance policies and loss experience; 4) Apply your understanding of the Airports risk exposure and recommend and propose changes to the existing policies, as shown on attached Exhibit B ; 5) Market, negotiate and implement insurance policies for the Authority considering the Airports risk exposure and loss experience; 6) Implement an annual renewal program and an account analysis and present such data to the Authority; 7) Review existing lease agreements and contracts and recommend appropriate insurance coverage considering the Authority s risk exposure and today s market conditions; 8) Provide daily account management; 9) Provide claims management including but not limited to processing and monitoring of claims, assisting with claims investigation, and evaluation of settlement options; 10) Provide certificates of insurance to parties of interest as needed; 11) Provide advisory services and reporting by monitoring the insurance companies, their ratings and market conditions; 12) Any additional services that the Company may believe to be necessary based on the Authority s structure and operation. 3.07 CONTRACT TERM. The Contract(s) term will be for an initial three (3) year period, with two (1) year renewal options available at the sole discretion of the Authority. The anticipated Contract(s) start date is April 1, 2014. 7

3.08 SBE/DBE The Authority is committed to promoting development of small business enterprises (SBE) and disadvantaged business enterprises (DBE) in this area. All SBE and DBEs are encouraged to participate in this RFQ process and the Authority agrees to comply with all applicable federal, state and local laws, including the Civil Rights Act of 1964 as amended, where applicable. 3.09 AUTHORITY CONTACT - Inquiries on all matters pertaining to this RFQ or the process should be directed to: Thomas C. Peiffer Deputy Director of Finance and Administration Or Michael B. Yingling Property Manager Susquehanna Area Regional Airport Authority One Terminal Drive, Suite 300 Middletown, PA 17057 Telephone: 717.948.3900 Facsimile: 717.948.3516 E-Mail: michael.yingling@saraa.org Inquiries shall be limited to this RFQ, or questions related to clarification of the contents of this RFQ. All clarifications will be supplied to known Respondents and posted on HIA s website, www.flyhia.com, Doing Business with Us, Insurance RFQ. 3.10 PRE-SUBMISSION MEETING: The pre-submission meeting is scheduled on December 16, 2013 at 1:30 p.m. EST, McIntosh Boardroom, 3 rd Floor, Terminal Building, and Harrisburg International Airport. Interested Respondents may contact the Authority representative listed in Section 3.09 to attend the meeting. Only those Respondents who RSVP by December 1, 2013 will be entitled to attend. Please note that attendance is not mandatory and will not disqualify any Respondent from the RFQ process. The purpose of the meeting is to familiarize interested Respondents with the Airports and its facilities to better assist Respondents in preparing their Statements. No tour will be given due to the timeframe of the RFQ process. SECTION 4.00 - POST SUBMITTAL EVENTS 4.01 EVALUATION OF STATEMENTS - The Authority will use evaluation criteria it judges most appropriate to the review process and the relative importance of this criteria will be determined at the sole discretion of the Authority. No Respondent shall have any cause of 8

action against the Authority arising out of a failure to secure an agreement with the Authority, failure by Authority to consider a Respondent's Statement or the methods by which the Authority evaluated Statements received. The selection of the prospective Company(s) and the decision to engage in negotiations with that Company shall be at the sole discretion of the Authority. The Authority intends to enter into a Contract(s) with selected Company(s) whose Statement(s), in the sole judgment of Authority, is advantageous to Authority and users of the Airport. The Authority reserves the right 1) to accept the Company it deems most suitable and beneficial, 2) to reject any or all Statements for any reason, and 3) to waive any of the requirements of the Statement procedures explained in this document. The Authority reserves the right to retain all copies of Statements submitted by prospective Respondents. The Authority may require presentations and/or panel interviews from selected Respondents. Authority s senior management will make that determination during the selection process and reserves the right to invite single, multiple or all Respondents. The evaluation team will consist of selected senior management. 4.02 STATEMENT SELECTION - The Authority intends to select one or more insurance brokers to provide insurance services for single, multiple or all insurance policies or but reserves the right to accept none of the Statements, to negotiate for modification of any Statement with the mutual consent of the Company, to accept the Statement which, in the judgment of the Authority, shall be deemed the most advantageous to the Authority, and/or to proceed in any other manner deemed to be in the Authority s best interest. 4.03 SELECTION CRITERIA - Although not intended to be an all inclusive list of factors to consider, the following items will be considered when selecting a Company(s): a. Qualifications and Experience; b. Location of the office managing the account; c. Background of the project team; d. References; f. Type of Broker compensation; g. Other minimum requirements of this RFQ. 4.04 NOTICE OF ACCEPTANCE OF STATEMENT - Upon the Authority s selection of Statement(s), the selected Company(s) will be notified not later than January 23, 2014 by telephone, then Certified Mail, Return Receipt Requested, of the selection to provide the Insurance Brokerage Services. The selected Company(s) will enter into Contract(s) with the Authority. Should the selected Company(s) fail or refuse to so perform, the Authority reserves the right and shall be free to revoke such selection. The Company(s) and Authority will schedule a meeting or separate meetings to discuss Authority s background information to solicit insurance quotes, if necessary. 9

4.05 RIGHT TO KNOW LAW The Statements will be subject to the Pennsylvania Right to Know Law. A Respondent acknowledges, in submitting a Statement, that any documents or information provided to the Authority may be subject to release to the public under the Pennsylvania Right to Know Law. All Respondents shall appropriately label any document or information that the Respondent considers a trade secret or confidential proprietary information. The Authority will make reasonable attempts to maintain the confidentiality of any trade secrets or proprietary information identified by a Respondent and shall notify the Respondent in accordance with the Pennsylvania Right to Know Law when a request has been made under the Right to Know Law for the release of such document or information. However, under no circumstances shall the Authority be liable to any Respondent, or to any other person or entity, for any disclosure of any such trade secret or confidential information. The Authority may not consider Statements in which all or a substantial portion of the Statement is declared by Respondent to constitute trade secrets or confidential information. THIS SECTION INTENTIONALLY LEFT BLANK 10

5.01 SCHEDULE OF EVENTS SECTION 5.00 - SCHEDULE RFQ Advertised November 18, 2013 Pre-Submission Meeting December 16, 2013 Statements Due December 30, 2013 Selection of Company January 22, 2014 Notify All Respondents January 23, 2014 Contract Execution and February 2014 Authority background information gathering Policy Quotes Due March 1, 2014 Broker Agreement Effective April 1, 2014 11

EXHIBIT A ORGANIZATIONAL STRUCTURE 12

1. Property, Boiler and Machinery EXHIBIT B EXISTING INSURANCE PROGRAM Total insured $177,000,874 Buildings $154,670,171 Contents $12,330,703 Rents/Business interruption $10,000,000 Deductible (per occurrence) $25,000 Flood annual aggregate $25,000,000 Deductible (flood) $100,000 Earthquake annual aggregate $25,000,000 Deductible (earthquake) $100,000 Exclusions: pollution & contamination, terrorism, computer virus, mold, product contamination and recall 2. Airport Owners and Operators Liability Bodily injury, personal and advertising injury $100,000,000 And property damage, each occurrence Products-Completed Operations $100,000,000 (Annual aggregate) Personal Injury and advertising injury $50,000,000 (Annual aggregate) Malpractice (annual aggregate) $50,000,000 Fire Damage (limit any one fire) $2,000,000 Medical Expense (limit any one person) $5,000 Hangar keepers not in flight (any occurrence) $100,000,000 Hangar keepers not in flight (any one aircraft) $100,000,000 Non-owned Aircraft Liability $100,000,000 13

Excess Auto Liability (off premises) $50,000,000 Excess of $1,000,000 (any one occurrence) Excess Employers Liability (excluding disease) $50,000,000 Excess of $1,000,000 (any one occurrence) Deductible per occurrence $5,000 per occurrence/ $50,000 annual aggregate Exclusions: war, hi-jacking, noise, pollution, other perils exclusion clause, nuclear risks exclusion clause, date recognition exclusion endorsement, any and all liability arising directly or indirectly out of the demolition or disposal of a defunct power plant, host liquor liability, terrorism 3. Commercial Automobile (50 power units as of 10/16/2013) Bodily injury and property damage combined $1,000,000 Uninsured/underinsured motorists $35,000 Medical benefits Deductible (vehicles with an original new cost Over $50,000 Deductible (vehicles with an original new cost Between $30,000 and $49,999 Vehicles with an original new cost Less than $30,000 Hired auto physical damage deductible No specific amount $2,000 (comprehensive) $2,000 (collision) $1,000 (comprehensive) $1,000 (collision) $500 (comprehensive) $500 (collision) $1,000 (comprehensive) $1,000 (collision) 4. Public Officials & Employment Practices Liability Limit (including claims expenses) $1,000,000 Deductible (public officials) $25,000 Deductible (employment practices) $25,000 Retention (wage and house defense) $75,000 14

Exclusions: ADAA cost exclusion, prior claim or circumstance exclusion, anti trust exclusion, intellectual property exclusion, fungus and mold exclusion, bond exclusion 5. Police Professional Liability Limit (per person) $1,000,000 Limit (per occurrence) $1,000,000 Limit (annual aggregate) $1,000,000 Deductible (including LAE) $5,000 Exclusions: asbestos, fungus, terrorism 6. Storage Tank Liability Limit (per storage tank incident) $1,000,000 Limit (aggregate all storage tanks incidents $2,000,000 Claim & redemption costs) Limit (aggregate all legal defense expenses) $2,000,000 Limit (total policy aggregate for all storage tank $4,000,000 Incidents) Deductible (per claim) $25,000 7. Commercial Crime Employee Dishonesty Limit $1,000,000 Employee Dishonesty Deductible $5,000 Forgery or Alteration Limit $1,000,000 Forgery or Alteration Deductible $5,000 Loss Inside Premises - Money & Securities Limit $1,000,000 Loss Inside Premises - Money & Securities $5,000 Deductible Loss outside Premises - Money & Securities Limit $1,000,000 Loss Outside Premises - Money & Securities $5,000 Deductible 15

Loss Inside Premises Robbery or Safe, Burglary $1,000,000 Of Other Property Limit Loss Inside Premises Robbery or Safe, Burglary $5,000 Of Other Property Deductible Computer Fraud Limit $1,000,000 Computer Fraud Deductible $5,000 Funds Transfer Fraud Limit $1,000,000 Funds Transfer Fraud Deductible $5,000 Money Orders & Counterfeit Paper Limit $1,000,000 Money Orders & Counterfeit Paper Deductible $5,000 8. Workers Compensation Employers Liability: Bodily Injury by Accident $1,000,000 Bodily Injury by Disease Policy Limit $1,000,000 Bodily Injury by Disease Each Employee $1,000,000 Class Code 7428 Airport Operations Ground Employees base salary is $3,359,190 Class Code 953 Clerical Office base salary is $1,166,957 16

EXHIBIT C BROKER QUALIFICATIONS/REMITTANCE SHEET A. Provide a brief overview of your company, including mission statement, business model, and ownership structure. B. Provide a summary of your expertise in placing Property/Casualty Lines of Insurance. C. Provide a brief description of any specializations within your firm which you feel our organization would benefit from. D. Describe your client/customer base, including total number of clients, as well as your total number of full-time employees. E. Please describe your experience and expertise with clients in our business sector. F. Provide your annual customer retention rates. SECTION 1 BROKER QUALIFICATIONS SECTION 2 TEAM STRUCTURE AND SERVICES Provide a Client Service Team Organization Chart. For each member of the team provide: a. Roles and Responsibilities b. Office Location c. Biography d. Number of Accounts Handled e. Tenure with your firm f. Will any of your SECTION Company 3 Principals ORGANIZATION be assigned OF to SERVICING service our account? TEAMS Describe your company s philosophy regarding the structure of your client service teams. How are corporate resources organized and delivered? 17

Please provide your information on the following: SECTION 4 - MARKETING A. Your philosophy on the insurance bidding/marketing process B. Your methodology of collecting underwriting data, and the structure of submissions you present to insurance carrier underwriters C. The structure of your client proposal documents SECTION 5 LOSS CONTROL SERVICES A. Describe your resources and expertise in the area of Loss Control/Loss Prevention/Safety Services. B. How many full-time Loss Control Professionals are on the staff of your servicing office (not third party providers)? C. How do these Loss Control Professionals keep abreast of Loss Control Methods and techniques in the marketplace? D. Will you assign a dedicated Loss Control representative to our organization? E. How do you coordinate with the insurance carrier s Loss Control professionals? A. Describe your resources and expertise in the area of Claims Management. B. How many full-time Claims Professionals are on the staff of your servicing office (not third party providers)? C. Will you assign a dedicated Claims Representative? D. How do these Claims Professionals keep abreast of Claims Methods and techniques in the marketplace? E. Do you maintain Claims Attorneys on staff? SECTION 6 CLAIMS SERVICES 18

Please provide the names of five client references. Provide clients with similar exposures to our organization that reside in the Mid-Atlantic region. a. Contact name, title and phone number. b. The services you provide. c. How long you have represented them. SECTION 7 REFERENCES d. Do any members of the proposed service team service these clients? Fees and Commissions: SECTION 8 BROKER COMPENSATION A. Please describe your firms method of compensation (Fixed or percent based) for the placement of insurance policies and the provision of the other services outlined herein. B. Are there other potential charges besides those outlined is A. above? If so, please describe them. C. Describe how your firm addresses contingent commissions and supplementary commissions. SECTION 9 ADDITIONAL INFORMATION Describe any additional services that you provide to your clients not addressed in this document. Are such services included in your base service fee or are they provided for additional fee? SECTION 10 BROKER ACKNOWLEDGMENT Broker acknowledges that the information supplied by Broker in response to this RFQ is true and correct, and further acknowledges that SARAA will rely upon that information in accepting Broker Response. In the event that SARAA determines that the information supplied by Broker is not correct or is materially misleading, Broker understands and agrees that SARAA may revoke its acceptance at any time during the first year of the relationship. In such event, Broker agrees that it shall not be entitled to any fees for services provided (whether or not such services are the subject of the incorrect or materially misleading information). This provision shall 19

survive and not be superseded by any subsequent agreements entered into by Broker and SARAA. Signed: Print Name: Title: Date: Company: 20