dpo advisory council meeting - oregon.gov dpo minutes... · johnson (doj), robert jones (pers),...

Department of Administrative Services EGS | Procurement Services Submitted By: Jordan Sim

DPO Advisory Council Meeting Meeting Date: July 25, 2018

Time: 1:30 – 3:30pm Location: Department of Forestry 2600 State Street – Building C, Tillamook Conf. Room Salem, OR 97301 Attendees: Gail Carter (DAS), Melissa Esser (DOA), Joshua Hardage (DOR), Jay Jackson (DAS), Karen

Johnson (DOJ), Robert Jones (PERS), Connie Lelack (ODOT), Kelly Mix (DAS), Teresa Mortiz (OPRD), Salem Opeifa (DHCD/OWEB/OWRD), Rich Palmer (PUC), Toni Payseno (DOC), Tom Riel (DAS), Dennis Ruth (OMD), Kathy Storm (OFRI), Archana Thapa-Sherpa (DOJ), Melody Waight (ODFW), Jon Walton (OBDD), Heather Wyland (OED), Stacy Fulker (ODF), Jody Owens (ODOT), Kayla VanHoose (ODOT), Phillip Andrews (SOS), Amy Velez (DAS)

By Phone: Eloisa Miller (GOV), Kathy Harrison (ODOT/GOV), Bev Hall (OST), Karen Dehut (HECC), Sandra

Flickinger (OHCS), Stephanie Vorderlandvehr (OMB), Michelle Johnson (DSL), Julie Hall, (OST), Lillie Gray (ODE), Jennifer Bittel (DHS), Gail Stevens (CFB)

Guests: Eloisa Miller & Kathy Harrison (GOV), Jill Woods (DAS CHRO), Todd Sharff & Mark Noll

(DAS Risk Mgmt), Susan Wooley (BOLI), Amy Velez (DAS)

ITEM DISCUSSION Welcome/Announcements– Connie LeLack

Introductions were made.

Edits for June Mins: OMB is looking for new software & database because Office 365 was postponed. Attached hereto with edits.

Attachment from Eloisa Miller, GOV not attached to June Mins, is attached hereto.

June minutes accepted (with above edits).

August meeting cancelled.

Be aware, DPO Advisory Council Vice Chair position being voted on soon. Executive Order No. 18-03 updates – Eloisa Miller & Kathy Harrison (phone) Kathy Harrison is on a rotation from ODOT to head the Executive Order as Eloisa is going on

maternity leave beginning August 1, 2018. Kickoff meeting held July 26, 2018. Will be able to provide further information about the phased implementation plan, timeline & who stakeholders/project team & workgroup are after the kickoff meeting. All information will be available on the Governor’s Office website, will also provide information to DPOs.

New MQ’s Check-in – Jill Woods

Jill would like to know if anyone has questions regarding the new MQ’s? Has anyone had any issues? Are they effective?

ODOT got very good pool of candidates in Salem & Portland for the PCS 2 & 3, especially Portland positions they posted.


OBDD will be posting soon so they will be able to get further information in the future. ODFW posted a PCS 3 position that has a grant aspect to the position. They received more applicants but they were not necessary any more qualified than the pool they received prior to using the new MQ’s.

Question (Jill): Should we let the new MQ’s run a little longer as a pilot? They have been out since May. Answer: Yes, agreed, run longer. Will bring Jill back in September to discuss further. Question: What are the next steps? Answer: Either we make the MQ’s permanent or adjust to make them more effective, and revisit at that time.

Statewide Procurement Training – Kelly Mix (standing in for Debbie Dennis)

handouts Asks DPO’s to review – any questions or comments to be sent to Jordan Sim ([email protected]) or Amy Velez ([email protected]). In your review please focus on the Procedure, is it clear and easily followed? Also, compare the policy & procedure, do they work together? The goal is to complete and publish the Policy and Procedures by the end of 2018. Certification Programs – Please check the OPBC (basic), OPIC (intermediate), and OPAC (advanced) to make sure they are sequential and the requirements makes sense. Changed OPBC from 3 years to 5 years of experience, also gives more opportunity for training outside of DAS classroom. Oregon Public Procurement training- Definition is in the policy [“means training predominately related to Procurement that concurs with the contents of the OPBoK, contains a formula assessment, and is approved by the State Chief Procurement Officer”]

- State CPO would have to review the training and approve or deny credit Question: Does grant training fall under procurement training? Answer: It could, depending on the specific training. Would need to be sent in for review by the State CPO. Question: on Procedure; Exceptions don’t make sense. Should they be “Steps” or maybe “Options”? Answer: Kelly Mix will review Timelines: OPIC Exam (January – goal) OPAC Exam (Mid 2019) DAS Training Updates: Fundamentals of Procurement (August) 2 days of training with exam – trains on $10k-$150k procurements. Fundamentals of Procurement webinar – Goal is to have rolled out by September. Principles of Public Procurement – multiple versions & dates. Webinar is 3/5 hour sessions for 8 weeks with test at end of class. Question: is there a study guide available for the test out option? Answer: Yes, you receive a study guide when you registered for the test out option. John Koljesky can also provide to anyone who needs it. Question: is there a validation or compliance check on those who take the class?

mailto:[email protected]



Answer: No, it is up to the Agency to comply with the law.

2019 Reverse Auction Pilot – Amy Velez

handout In a reverse auction the rolls of the buyer and seller are reversed. Currently researching and deciding on an online portal. Workgroup includes staff from DAS, ODOT, OHA & DHS Working with other states to find out their experiences with the reverse auction Once more information is firmed up it will be distributed to the DPO’s.

2019 30% Price Weighting Pilot – Gail Carter

handout Agencies that are involved in the workgroup include DAS, DHS, and Aviation & ODOT. Any questions, concerns or ideas to be sent to Gail Carter ([email protected]) The workgroup will:

- Identify any templates or forms that will need to be edited - Identify any training that will be needed

Question: Has there been any agencies that have used a price weight in evaluation? Answer: Fish & Wildlife has used a price weight already, it worked well.

DAS Risk Management – Todd Scharff Handout Decided it is time for updates on the tools. The tools were created 2-3 years ago and have not been

updated since. Risk advises all to go to the Risk website to get the most updated tool every single time it is used. New risk tool is to be available September 1, 2018. New tool will:

- Get rid of some tabs that are of little use - Be cleaner and easier for staff use - Note cells now expand to provide for more detail - The “Rate It” tab will now include links that provide for more explanation than is currently

available - Now include Medical Malpractice & Professional Services to the extent that is realistic in

real life, - Have new coverages added – Electronic Services Contract; Grants (Directors & Officers

Coverage), Employee Dishonesty or Fidelity Bonds, and Drone Liability Coverage; - Have an added Summary Page to show in an easy display what your assessment has

shown; - Now require you to speak with Risk Management if your risk exceeds $10 million dollars,

DAS Risk Management – Mark Noll Handout Construction Tool (similar to above) more specific to construction will be available within 6

months. If any construction specific template language is needed before the tool is available, Risk can be disbursed if/when necessary.

BOLI – Susan Wooley

See PowerPoint for details (attached)– Question: What about resealing windows? Answer: Yes, considered reconstruction. So is replacing locks in buildings. Question: Is it based on the dollar amount of the job or the nature of the work?



Answer: Both; must be over $50k and attached to a building/structure or new construction.

Round Tale

CORRECTIONS: Toni: working on IT Helpdesk ticketing software for IT requests. Currently it is in test mode. The idea is that you can attach the EULA, it will be review and moved down the line to procurement – the software sends notifications throughout the process. Process time: 3 months for regular software & 6 months for cloud based software Toni believes it is promising. ADMINISTRATIVE: QRF Showcase – Looking for presenters. Contact Darvin Pierce ([email protected]) if interested. Jay Jackson – Reduction of greenhouse gases is a “hot topic” – the balance between harvesting timber and when to let trees keep growing is difficult because letting trees grow keeps the carbon out of the air but the need for timber is also there. Another issue is when wetlands are built on or the dirt is moved around, the carbon that is stored in the ground is released and causes a rise in carbon in the air. BUISINESS DEVELOPMENT: Posting again for a PCS A new sales platform will be explored and will be asking for funds for it.

Next Meeting: Date: September 26, 2018 Time: 1:30 - 3:30 pm Location: DPSST – 4190 Aumsville Highway SE, Board Room



DPO Advisory Council Meeting Meeting Date: June 27, 2018

Time: 1:30pm – 3:30pm

Location: ODF 2600 State Street, Building C Salem, Oregon

Attendees: Adam Bergerson (DPSST), Nancy Cody (DCBS), Debbie Dennis (DAS), Sharon Domaschofsky (OSP), Melissa Esser (DOA), Sandra Flickinger (OHCS), Lillie Gray (ODE), Joshua Hardage (DOR), Jay Jackson (DAS), Karen Johnson (DOJ), Robert Jones (PERS), Darwin Kumpula (DAS), Connie Lelack (ODOT), Linda Litchy (SOS), Rich Palmer (PUC), Toni Payseno (DOC), Brenda Brown (DHS/OHA), Tom Riel (DAS), Dennis Ruth (OMD), Kathy Storm (OFRI), Jean Straight (DSL), Archana Thapa-Sherpa (DOJ), Bethany Wachtler (ODE), Melody Waight (ODFW), Mandee Wilding (OMD), Heather Wyland (OED), Stephany Vorderlandwehr (OMB), Stacy Fulker (ODF), Blake Dye (OSP), Ashely Buol (DOJ), Jose Perfecto (OSL), Jay Jackson (DAS)

By phone: Nicole Brazeal (DAS), Michelle Johnson (DSL), Julie Hall (OST)

Guests: Eloisa Miller, GOV, Dmytro Shabanov (ODOT-intern), Nick Dye (DHS-intern), Connor Baele (DAS-intern), Shruthi Narayanan (DOR-intern)

ITEM DISCUSSION Welcome/Announcements– Connie Lelack

- Introductions were made.

- May minutes approved.

- Vote was taken, August DPO Council Meeting cancelled.

- Jennifer Bjerke with OSCIO was unable to make it, her presentation will be at a later meeting.Intern Introduction – DAS, Debbie Dennis

3 interns: interns: • Conner Baele: working at DAS on the Reverse Auction pilot• Nick Dye: DHS• Shruthi Narayanan: DOR working on making the SPOTS card program more efficient• Dmytro Shabanov: ODOT

EO 18-03 – GOV, Eloisa Miller

Handout - As there is currently no director and there is an OPA3 position available, the Governor’s Office isworking very hard to get the requirements of the EO processes finished.

- Governor’s Office acknowledges that they put aggressive dates on reporting, which are beingpushed back. Eloisa spoke of how many times in the past that this idea has been brought up, buthas never been followed through. Governor Brown is the first governor to actually give directionon how to get reporting done.

- There is a guidelines group that has been formed (includes DAS), but has not been tasked yetwith developing the guidelines. Eloisa stated that she has a deadline of end of August, 2018 toget guidelines and an outline of reporting out to agencies. Will have more detailed plans topresent in July. Eloisa was unsure of the data collection timeframe that will be required by thefirst report.

- Taking a phase approach (see attachment).

ATTACHMENT


- Currently no REQUIRED action by agencies, although some action is advisable. Action that canbe taken at this time:• Communicating with the public about the new process• Invite representatives of certified companies to submit bids• Try to figure out how your agency can effectively track spend before guidelines are out• Question: Are Certified Disabled Veterans now available in COBID/ORPIN?

Answer: Yes, there are many registered in COBID and ORPIN• Question: Will OregonBuys be able to transfer certifications from COBID like ORPIN

currently does?Answer: Yes, the only difference between OregonBuys and ORPIN is ORPIN has thecertification and commodity codes listed whereas OregonBuys only shows thecertification.

- Second Hand-out “Agency Input” will be sent out via email in GoogleDoc form for each agencyto complete and send back to the Governor’s Office to use and answer questions asked.

- Oregon Capitol Connections holds meetings on the last Tuesday of every month at 7:30-8:30amthat anyone is welcomed to come and find out what is going on at the Governor’s Office andstatus of projects.

Round Table

- Question: How will BaseCamp be effected by the changes at OSCIO?Answer: There will be no effect, BaseCamp is moving on as usual.

- Question: What changes are going on at OSCIO?Answer: Alex Petit resigned, interim CIO is Terrence Woods and Deputy CIO is JenniferBjerke.

- EMPLOYMENT:• Procurement Performance Audit & IT Audit• (2) PCS2 positions open

- FISH & WILDLIFE:• IT Audit, Federal Department of the Interior Audit• (1) PCS3 position open, posting for the 4th time. Very small pool of applicants

- LOTTERY:• Fully Staffed• Replacing financial system, partnering with Gartner

- REVENUE:• Finished the IT Audit• Taking on a new intake system possibly, to streamline workload (looking at a Microsoft

application)• Receiving lots of IGA’s that are being processed

- MEDICAL BOARD:• Looking at software and database options because WorkDay Office365 has been

postponed- JUSTICE:

• IT projects are coming up, also looking at WorkDay alternative- STATE POLICE:

• (1) PCS1 & (1) PCS2 positions available• Many IT projects coming up

- HUMAN SERVICES:

ATTACHMENT


• IT Audit • Just finished Child Welfare Audit

- CORRECTIONS: • Fully staffed • NIGP National Award going to Matthew Shoemaker for creating an IT Risk Assessment.

He is going to NIGP Forum in Nashville, TN to receive the award in August. - EDUCATION:

• (1) PCS3 position open • LD coming over from HECC • IT Audit • Working on making grant process more efficient • Working on Grants for the 19-21 biennium to get them started and to be proactive (over

4,000 grants to process and award) • Been having issues with software licenses, some companies will not negotiate terms – any

advice? o Do a Risk Assessment Form with the end users to work out what the risks are, have

CIO sign off for the file. Doing this shows that you’ve done the work and you’ve put out the effort with the software company.

o Toni Payseno will email form to Jordan Sim who will post it on the List Serve (also attached hereto).

- ADMINISTRATIVE SERVICES: • Debt collection, had to pull back because it was assumed that the DOR process was

automated while in fact it is a manual process. Having companies required to have a debt verification letter would overload staff and they would become backed up and it would take too long for the companies to receive the letter. DOR is currently working on a method to make this process automated.

• OregonBuys – Initial body of work is projected to be done by fall. SOS and ODF will be the first agencies to use OregonBuys. DAS continues to seek approval to implement the solution at an enterprise level. DAS may bring the request back to September eBoard.

• Working on the Reverse Auction and 30% weighting pilots. ODOT and DHS will have procurements in the Reverse Auction, ten procurements over $150,000 total for the pilot.

• Any ideas of procurements to participate in the pilots please email to Jordan Sim ([email protected]).

- TRANSPORTATION: • Hiring five new employees

- FORESTRY: Team deployed on fire duty - AGRICULTURE: Contract administration training completed. Fully staffed - ENVIRONMENTAL QUALITY:

• (1) PCS2 position open (1) PCS3 will be opening soon • Working on large IT project for new invoicing system

- MILITARY: • (1) PCS2 position open • CPAB Meeting coming up • Working on procurements for Statewide Lighting & Armory • National Guard training • Purchasing 364 boots for soldiers

ATTACHMENT



- PERS: • Lots of leadership movement • Asking for a new position PCS3

- JUSTICE: • Mary Brey is retiring • Hired 2 new attorneys • Robertson building was unusable for the beginning of the week. Will be back in Thursday

6/28/18 Next Meeting: Date: July 25, 2018 Time: 1:30 - 3:30 pm Location: Forestry 2600 State Street, Building C

ATTACHMENT

Policy No: 107-009-0060_PO | Effective: July 13, 2018 Page 1 of 4

STATEWIDE POLICY

NUMBER 107-009-0060_PO

SUPERSEDES Policy 107-009-0060 dated 05/10/2010

EFFECTIVE DATE 07/13/2018

PAGE NUMBER Page 1 of 4

Division Enterprise Goods and Services, Procurement Services

REFERENCE/AUTHORITY ORS 279A.159 OAR 125-246-0140 OAR 125-246-0165 OAR 125-246-0170

Policy Owner Department of Administrative Services SUBJECT Statewide Procurement Training

APPROVED SIGNATURE Katy Coba, Director/Chief Operating Officer (signature on file with DAS Business Services, policy coordinator)

PURPOSE The Department of Administrative Services, Procurement Services, oversees Oregon state government’s procurement training and certification programs. This Policy supports statewide compliance with ORS 279A.159 and OAR 125-246-0140. APPLICABILITY This Policy applies to any person who conducts a Procurement or administers a Public Contract for any State Contracting Agency. State Contracting Agency is defined in ORS 279A.010(1)(nn) and means an Executive Department entity authorized by law to conduct a Procurement. This policy does not apply to the Secretary of State or State Treasurer. This policy does apply to any person seeking Certification. The requirements of this Policy are in addition to, and do not supersede, modify or replace, other existing legal responsibilities of any State Contracting Agency. FORMS, EXHIBITS, &INSTRUCTIONS EXHIBIT A: Statewide Procurement Training Procedure 107-00-0060_PR DEFINITIONS In addition to these definitions, capitalized terms are defined in OAR 125-246-0110.

https://www.oregonlegislature.gov/bills_laws/ors/ors279A.html

https://secure.sos.state.or.us/oard/viewSingleRule.action?ruleVrsnRsn=8756




Agency or State Contracting Agency: is defined in ORS 279A.010(1)(nn) and means an Executive Department entity authorized by law to conduct a Procurement. Executive Department is defined in ORS 174.112, and generally means all statewide elected officers other than judges. It also includes all boards, commissions, departments, divisions and other entities within the Executive Department as described in the Oregon Constitution. Certificate: means written evidence that a person has successfully completed the assessment of a Learning Event or a series of Learning Events. A certificate demonstrates attainment of knowledge rather than mastery of a skill. Certification: means written evidence that a person has achieved proficiency in a skill or task objectively assessed and validated against Oregon and national criteria. Chief Procurement Officer, CPO, or State Chief Procurement Officer: means the person designated and authorized by the Director of the Department of Administrative Services to perform certain procurement functions described in the DAS Public Contracting Rules, or the Chief Procurement Officer’s delegate. Contract or Public Contract: is defined in OAR 125-246-0110(32), and means an agreement between two or more persons, which creates an obligation to do or not to do a particular thing. Contract essentials include competent parties, subject matter, a legal consideration, mutuality of agreement, and mutuality of obligation. Knowledge, Skills, and Abilities: means the attributes required to perform a job.

• Knowledge - refers to a body of information applied directly to the performance of a function. • Skills - refers to an observable competence to perform a learned psychomotor act. • Abilities - refers to competence to perform an observable behavior or a behavior that results in an

observable product. Learning Event: means a learning, training, or development activity completed through participation in a workshop, class, conference, or eLearning. Oregon Procurement Body of Knowledge (OPBoK): means a comprehensive list of the tasks, knowledge, skills, and abilities, and standards that define the necessary Procurement concepts for State Contracting Agencies. This list is the foundation for Learning Event development and serves as a roadmap for persons preparing for Certification testing. The OPBoK ensures alignment of Oregon Public Procurement Training and Certification with critical skills and knowledge needed for competent performance in Oregon public Procurement. View the OPBoK on the DAS PS Training website. Oregon Public Procurement Training: means training predominately related to Procurement that concurs with the contents of the OPBoK, contains a formal assessment, and is approved by the State Chief Procurement Officer. Procurement: means the act of purchasing, leasing, renting, or otherwise acquiring or selling: Supplies and Services; Architectural, Engineering, Photogrammetric Mapping, Transportation Planning or Land Surveying Services and Related Services; and Public Improvements. Procurement includes each function and procedure undertaken or required by an Agency to enter into a Public Contract, administer a Public Contract and obtain the performance of a Public Contract under the Public Contracting Code, and the applicable public contracting rules. Procurement includes Contract Administration. Contract Administration includes Amendments.

https://www.oregon.gov/das/Procurement/Pages/Training.aspx


EXCLUSIONS AND SPECIAL SITUATIONS The State Chief Procurement Officer determines disputes, requests for exception, requests for waiver, or sub-delegation relative to this Policy. POLICY GUIDELINES

I. Roles and Responsibilities 1. State Chief Procurement Officer’s duties and responsibilities according to OAR 125-246-0170(3),

include: a. Establishes standards of required education, training, experience, or a combination thereof

pursuant to ORS 279A.159 and OAR 125-246-0140; b. Establishes and implements an Oregon State Procurement Certification program; c. Provides training and instruction opportunities to ensure Agency staff are equipped with

necessary knowledge and skills to comply with the standards; d. Approves programs or persons that satisfy the standards, and determine any disputes, requests

for exception, requests for waiver, or sub-delegation. e. Sets dates by which agency staff must meet the requirements of ORS 279A.159.

2. Agency managers must ensure any person under their control has adequate education, training,

professional experience, or a combination thereof, which prepares the person to conduct a Procurement or administer a Contract according to the complexity, scope or category of Procurements the person conducts, and standards established by DAS.

3. A person who conducts a Procurement or administers a Contract for a State Contracting Agency must

meet the required education, training, professional experience, or a combination thereof, to conduct said procurement activities.

If this person does not have the required education, training, professional experience, or a combination thereof in accordance with the standards established by DAS pursuant to ORS 279A.159, OAR 125-246-0140, and this Policy, he or she must:

a. Have a Written delegation from a person who currently meets the standards, and b. Have their actions directly reviewed and approved by a person who currently meets the

standards and requirements.

II. Training Program Standards Training standards are set according to ORS 279A.159 and OAR 125-246-0140 to ensure adequate training, education, and experience:

a. Describes the content and quality of a curriculum for an appropriate education or training program;

b. Fixes a passing score for an examination or assessment, if appropriate; c. Specifies requirements for obtaining a certificate or other evidence of having completed the

education or training program; d. Determines the skills, level, and depth of knowledge a person must obtain from the education or

training program; and e. Describes the length of service or other evidence of adequate experience that a person must

have in order to conduct a Procurement or administer a Public Contract for a State Contracting Agency.


These standards also establish levels or classifications of education, training, and experience necessary for a person to conduct a Procurement or administer a Public Contract for a State Contracting Agency according to:

a. The complexity, scope or category of procurements a State Contracting Agency conducts; b. The degree of responsibility a person will have for conducting a procurement or administering a

Public Contract; or c. Other appropriate criteria.

III. Curriculum Design and Development 1. The OPBoK guides curriculum design and development. The OPBoK consists of:

a. Tasks associated with the procurement process; b. Knowledge, skills, and abilities associated with the procurement process; c. References to the specific standards that define the why, what, and how of the task (such

as: Oregon Revised Statutes, Oregon Administrative Rules, DAS Policies, and the DAS website and Oregon Procurement Manual.)

2. Each Oregon Public Procurement Training Learning Event shall have a formal assessment, as appropriate.

3. To the extent practical, Learning Events shall be accessible in the State Learning Management System, iLearnOregon.

ProcedureNo:107‐009‐0060_PR|Effective:July13,2018 Page1of6

STATEWIDE PROCEDURE

NUMBER 107-009-0060_PR

SUPERSEDES Procedure: N/A

EFFECTIVE DATE 07/13/2018

PAGE NUMBER Page 1 of 6

Division Enterprise Goods and Services, Procurement Services

REFERENCE/AUTHORITY ORS 279A.159 OAR 125-246-0140 OAR 125-246-0165 OAR 125-246-0170

Procedure Owner Department of Administrative Services SUBJECT Statewide Procurement Training

APPROVED SIGNATURE Katy Coba, Director/Chief Operating Officer (signature on file with DAS Business Services, policy coordinator)

PURPOSE This procedure outlines the course of action that must be followed in order to implement the Statewide Procurement Training Policy, 107-009-0060_PO.

APPLICABILITY This Procedure applies to any person who conducts a Procurement or administers a Public Contract for any State Contracting Agency, as defined in ORS 279A.010(1)(nn) and means an Executive Department entity authorized by law to conduct a Procurement. This Procedure does not apply to the Secretary of State or State Treasurer. This Procedure does apply to any person seeking Certification. The requirements of this Procedure are in addition to, and do not supersede, modify or replace, other existing legal responsibilities of any State Contracting Agency.

FORMS, EXHIBITS & INSTRUCTIONS Exhibit A – Statewide Procurement Training Policy 107-009-0060_PO Exhibit B – Am I a Contract Administrator? Checklist Exhibit C – Do I Conduct Procurements? Checklist

DEFINITIONS See Training Policy 107-009-0060_PO in addition to the following definitions.


Contact Hours: means: Successful completion of an Oregon Public Procurement Training. One Contact Hour is received for

each one-hour of instruction with a status of pass, complete, or grade of 80% or better. Successful completion of Other Procurement Related Training or Education as follows:

a) Attending a procurement related training or an industry meeting, convention, or event. Contact Hours are limited to seven hours per day. Session must be specific to procurement; have a speaker, instructor, trainer, facilitator or moderator; and provide documented proof-of-attendance.

b) Assisting in development or delivery of Learning Events. Contact Hours are unlimited, however only seven hours may be used as eligibility for a certification or renewal of certification within a given certification cycle.

Training Validation: means the validation that Oregon Public Procurement Training meets eligibility requirements in order to count towards certification Contact Hours. Eligibility requirements are:

Training content must concur with the applicable OPBoK domain, duty and task. Training must include an assessment of some type e.g. test, exercise, or required homework. The State Chief Procurement Officer must approve the training curriculum before delivery of the training

and use for Certification purposes. Oregon Procurement Body of Knowledge (OPBoK): means a comprehensive list of the tasks, knowledge, skills, and abilities, and standards that define the necessary Procurement concepts for State Contracting Agencies. This list is the foundation for Learning Event development and serves as a roadmap for persons preparing for Certification testing. The OPBoK ensures alignment of Oregon Public Procurement Training and Certification with critical skills and knowledge needed for competent performance in Oregon public Procurement. View the OPBoK on the DAS PS Training website. Oregon Public Procurement Training: means training predominately related to Procurement that concurs with the contents of the OPBoK, contains a formal assessment, and is approved by the State Chief Procurement Officer. Other Procurement Related Training or Education: means completion of procurement related training or education that meets the following eligibility requirements:

Training must be completed within the most recent five years prior to the application date. Training must provide proof-of-attendance. Acceptable proof-of-attendance is a transcript, certificate of

attendance, certificate of participation, or certificate of completion that includes: a) Applicant's name; title of the activity or event; date and location of the activity or event; name of

the training or education provider; and the number of Contact Hours. Procurement Experience: means experience that meets the following eligibility requirements:

Full-time equivalent conducting Procurement for one or more Oregon Public Agencies. Current employment in Oregon public sector is not required at the time of application for certification.

Experience must be within the most recent ten years prior to the application date, but does not have to be continuous.

Experience must be documented in an official position description that includes: class title, description of the work performed in that class, distinguishing characteristics of the class, illustrative duties, knowledge, skills and abilities required to perform the work, employment standards for incumbents of positions in that class, required licenses and certificates, and any necessary special requirements which must be met.

Test-out Option: means taking an assessment test instead of completing a course of instruction.


PROCEDURE ORS 279A.159 PROCUREMENT TRAINING LAW

RESPONSIBILITY STEP ACTION Agency Staff 1

Reviews the checklists Am I a Contract Administrator? (refer to Exhibit B), Do I Conduct Procurements? (refer to Exhibit C), and consults with Agency Manager to determine if either of the following ORS 279A.159 training is required for their position:

DAS PS - Contract Administration Training Certificate DAS PS - Principles of Public Procurement

Individuals with a current Oregon Procurement Basic Certification (OPBC) have satisfied the requirements of ORS 279A.159. Individuals with an expired or lapsed OPBC may Test-out of the requirement to take the class, and upon successfully passing the exam with a grade of 80% or higher will have satisfied the requirements of ORS 279A.159.

Agency Staff 2 Registers for required courses in iLearnOregon and successfully completes all course requirements. If desired, prints a certificate of completion provided in iLearnOregon.

PROCUREMENT CERTIFICATION PROGRAMS

RESPONSIBILITY STEP ACTION DAS Procurement Services (DAS PS)

1 Develops, implements, and maintains the following Procurement certification programs and requirements: Oregon Procurement Basic Certification (OPBC) – valid 5 years from certification date, requirements are:

1) At least one year of Procurement Experience; 2) No less than 75 Contact Hours of training or education

within the most recent 5 years which includes: a. Minimum 60 Contact Hours of Oregon Public

Procurement Training; b. 15 additional Contact Hours may be from any Other

Procurement Related Training or Education. 3) Must pass the exam. Unlimited exam retakes are available

for a fee. Retakes must wait until next scheduled exam session.

OPBC renewal requirements: 25 Contact Hours of procurement related education within the most recent 5 years, which must include the annual DAS PS rules update briefing, or equivalent. With exception of the DAS PS rules update briefing, continuing education Contact Hours may be from any approved source.


RESPONSIBILITY STEP ACTION Oregon Procurement Intermediate Certification (OPIC) – valid 5 years from certification date, requirements are: 1) At least three years of Procurement Experience; 2) No less than 125 Contact Hours of training or education which

includes: a. Minimum 100 Contact Hours of Oregon Public

Procurement Training; and b. 25 additional Contact Hours may be from Other

Procurement Related Training or Education. 3) Must pass the exam. Unlimited exam retakes are available for a

fee. Retakes must wait until next scheduled exam session. OPIC renewal requirements: 50 Contact Hours of procurement related education within the most recent 5 years, which must include the annual DAS PS rules update briefing, or equivalent. With exception of the DAS PS rules update briefing, continuing education Contact Hours may be from any approved source. Oregon Procurement Advanced Certification (OPAC) – valid 5 years from certification date, requirements are:

1) At least five years of Procurement Experience; 2) No less than 175 Contact Hours of training or education

which includes: a. Minimum 125 Contact Hours of Oregon Public

Procurement Training; b. 50 additional Contact Hours may be from Other

Procurement Related Training or Education. 3) Must pass the exam. Unlimited exam retakes are available

for a fee. Retakes must wait until next scheduled exam session.

OPAC renewal requirements: 50 Contact Hours of procurement related continuing education within the most recent five years, which must include the annual DAS PS rules update briefing, or equivalent. With exception of the DAS PS rules update briefing, continuing education Contact Hours may be from any approved source.

Agency Staff 2 Identifies and completes Oregon Public Procurement Training courses needed to meet Contact Hour requirements for certification. Contact Hours credited towards one level of certification can also be applied to a higher-level certification. To receive Contact Hours for Oregon Public Procurement Training not delivered by DAS PS, the training must meet Training Validation requirements.


RESPONSIBILITY STEP ACTION Agency Staff 3 Registers and successfully passes applicable certification exam in

iLearnOregon, and pays the associated fee. Reviews iLearnOregon transcript to confirm exam status.

Agency Staff 4 Submits application for certification / recertification, uploads all required documentation through the Oregon Procurement certification webpage, and pays the associated fee. NOTE: Individuals may check the status and expiration of existing Procurement credentials at any time through the Procurement Services Credential Tracking website.

DAS PS 5 Reviews certification application and notifies requester of status.

ACCESSING DAS PS PROCUREMENT TRAINING

RESPONSIBILITY STEP ACTION

DAS PS 1 Develops Learning Events that support the OPBoK and publishes the courses to the online DAS PS training calendar. Fees for training are based on the published DAS rate schedule.

Agency Staff 2 Visits the online DAS PS training calendar to view current course offerings and registers for applicable courses in iLearnOregon.

REQUESTING AN EXCEPTION TO THIS POLICY


Agency Staff 1 As applicable, submits a written request to the State Chief Procurement Officer for the award of Contact Hours for assisting in development or delivery of Learning Events. Visit the DAS PS Training website to download the request form and get submission instructions.

State Chief Procurement Officer

2 As applicable, reviews and validates the number of Contact Hours for development or delivery of Learning Events. Confirms amount with requester.



Agency Staff 3 As applicable, submits an email to the State Chief Procurement Officer ([email protected]) requesting a waiver of certification requirements. Request must include:

1) The basis for the waiver request (e.g. education, training, experience, or combination thereof); and

2) The signature of a supervisory level person with first-hand knowledge of the requestor’s Procurement proficiency.


4 As applicable, determines to either approve or deny the certification waiver request and notifies requester.

Agency Staff 5 As applicable, submits an email appeal to the State Chief Procurement Officer ([email protected]) for the certification waiver denial within 20 business days from denial date.


6 As applicable, reviews certification waiver appeal, makes final determination, and notifies requester.

BIG DIG CEILING PANELS – NTSB Findings

A&E and Construction Risk Assessment Tool – Thought Process – 7-25-18 VersionFollow bolded/colored path for thought process example.

Start Page

Architectural & Engineering and Related Services

Different Path

Traditional Construction

(Design/Bid/Build)

New Building Construction

Scope of Work

1. Commercial General Liability

and Umbrella

Insurance Selection Decisions for Procurement

Insurance Requirements

Summary Report

Auto-filled Insurance Template

Risk Reduction Strategies for

Project Managers

2. Workers Compensation Similar Path as CGL

3. Business Auto Liability

Similar Path as CGL

4. Contractor’s Pollution Liability Similar Path as CGL

5. Builder’s Risk Similar Path as CGL

6. Professional Liability

Similar Path as CGL

Existing Building Construction

Similar Path as New Building

Construction

Highway, Street or Bridge Construction

Similar Path as New Building

Construction

Design/Build Construction

Similar Path as Traditional

Construction with A&E Components

Construction Manager/General

Contractor (CM/GC)

Similar Path as Traditional

Construction

Construction Manager Contract

Part

General Contractor Part

Construction Contracts Risk Assessment Toolkit - Prototype 1

1.Dropdown or buttons - Choose contract(s) needed for completed project.

8. Insurance Template –Use auto-filled,

printable and exportable insurance template (optional).

5. Dropdown or buttons -Select each of six risk assessment pieces.

6. Questions _ Answer insurance selection and risk reduction questions for each piece.

3. Dropdown -Choose construction type.

4. Dropdown or links - Review scope of work and match with list of North American Industry Classification System (NAICS) code(s) and descriptions.

2. Form – Enter contract info such as contract number, contract name, building address, contract amount, contractor name, projected start date.

2A. Alert – If construction contract size is greater than $100M, contact DAS Risk for Wrap Up Insurance Program (OCIP vs CCIP) consideration.

7. Risk Assessment Report – Contract info and insurance selections populate printable summary report.

1

DRAFT Decision Questions - Risk Assessment Matrix

Traditional Construction (Design/Bid/Build) >>> New Building Construction Path

INSURANCE SELECTION DECISIONS – advice for Contract Procurement Managers

RISK REDUCTION STRATEGIES – advice for Project Managers

CGL and Umbrella Insurance

INSURANCE SELECTION DECISIONS

The contract is for a:

• Specialty trade contractor? If Yes - $1M/2M CGL, $5M Umbrella/Excess

• General contractor (GC) contract size less than $10M? If Yes - $1M/2M CGL, $10M Umbrella/Excess

• General contractor (GC) contract size more than $10M? If Yes - $1M/2M CGL, $20M Umbrella/Excess

RISK REDUCTION STRATEGIES

Could the contractor build or install something, that if defective?

• Cause bodily injury to state employees? If Yes - see Tips

• Cause bodily injury to a third party (including a client, inmate, or citizen)? If Yes - see Tips

• Cause damage to state property? If Yes - see Tips

• Cause damage to a third party's property (including a clients, inmate, or citizen)? If Yes - see Tips

Tips – Can the work be performed after hours? Can you move employees from the construction zone? Can you partition off the construction area?

Will the contractor:

• Demolish any existing structures involved? If Yes - see Tips Tips Before any removal work begins, establish a value for each of the removed items. This is necessary to properly document the amount of work performed. The Resident Engineer and the Contractor should mutually agree upon the value. Recommend a photographic or video log of all existing conditions on the project be established before work commences. This can be a valuable record of existing conditions. All items to be removed, listed or unlisted in the Project Plans and Special Provisions, should be documented to show what was removed and when the removal was accomplished.

2

• Have neighborhoods, neighborhood associations, or businesses in the area? If Yes - complete

these steps

• Describe how far they are from the project.

• Will the construction involve any pounding, shoring, pile driving, etc. to drive support structures, for example, into the ground?

o If Yes - memorialize the condition of adjacent properties before work starts.

Business Auto Insurance



• Use a vehicle to accomplish the work? If Yes - BA insurance required

• Travel to or from state locations? If Yes - BA insurance required

• Transport state property, clients, or employees? If Yes - BA insurance required

If Yes - what is the value of state property?

If Yes - who insures during transit (owner or contractor)?

Specify level of transit insurance at the value of the property

• Transport hazardous materials? • If Yes - verify Form MCS-90 (Endorsement for Motor Carrier Policies of Insurance for

Public Liability under Sections 29 and 30 of the Motor Carrier Act of 1980) (https://www.fmcsa.dot.gov/registration/form-mcs-90-endorsement-motor-carrier-policies-insurance-public-liability-under) is included in the Business Auto policy and that transportation coverage is endorsed on the Contractor’s Pollution Liability Policy.


No questions

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Contractor’s Pollution Liability

CPL INSURANCE DEFINITIONS

Level 1 Contractor’s Pollution Liability (CPL) for contractor where hazardous materials and waste exposures are incidental to the contract: Combined single limit per occurrence not less than $1M. Annual aggregate limit not less than $1M.

Level 2 CPL for abatement contractor on smaller scale, lower risk (i.e., non-friable asbestos) projects: Combined single limit per occurrence not less than $5M. Annual aggregate limit not less than $5M.

Level 3 CPL for abatement contractor on larger scale and/or higher risk (i.e., friable asbestos) projects: Combined single limit per occurrence not less than $10M. Annual aggregate limit not less than $10M.



• For new construction, has Phase One non-invasive review been done?

• If Yes - what was the outcome?

• If negative - no further action

• If positive - call DAS Typically, phase ones will be conducted for land which was previously used for another purpose. A positive phase one (questionable or adverse findings) will often result in a request for a phase two.

• Store hazardous materials (i.e., operating fluids required by contractors while on the job site, such as fuel, lubricants, hydraulics) on the job site? If Yes - LEVEL 1 CPL

• Apply, use, or handle hazardous materials on the job site (no abatement activities)? If Yes - LEVEL 1 CPL

• Abate, remove, and/or dispose of hazardous materials or hazardous waste (i.e., asbestos, lead, or contaminated soil)? If Yes - LEVEL 2 or 3 CPL

• Transport hazardous materials or hazardous waste (i.e., asbestos, lead, or contaminated soil)? • Make sure transportation is added to CPL policy. If Yes - Needs CPL transport

endorsement

• Work in, around, or over (such as on a bridge) water, wells, wetlands, endangered species, or other protected areas where pollution or silt from the construction could likely run into? If Yes - LEVEL 2 or 3 CPL Any special risk reduction guidance or insurance selection recommendations?

4

• For new construction with demolition, or work on existing building

o For asbestos risk, was building built before 1985?

• If Yes - Contractor needs LEVEL 1, 2 or 3 CPL depending on role if no asbestos building survey done, or asbestos building survey shows building contains asbestos.

• If Yes - if asbestos building survey done shows building does not contain asbestos, contractor needs LEVEL 1 CPL if incidental CPL exposures noted in either the first or second question noted above.

• If No - Contractor needs If Yes, LEVEL 1 CPL if incidental CPL exposures noted in either the first or second question noted above.

o Other building hazardous materials identified (i.e., lead paint testing, underground fuel

tanks present, soil contamination testing)?

• If Yes - Contractor needs LEVEL 1, 2 or 3 CPL depending on role.

• If No - Contractor needs LEVEL 1 CPL if incidental CPL exposures noted in either the first or second question noted above.

5

Builder’s Risk

Thought process: Builder’s Risk/Installation Floater policy is built into the excess property policy: $1.5M deductible and $25M limit per occurrence. Applies to (1) any building and does not have to be on Risk Report and (2) report before break ground. Owner reserves the right to carry Builders Risk policy instead of contractor – should do a claims “what if?” to evaluate pluses/minuses. Project size or type triggers Builders Risk insurance recommendation. Need to determine project is tenant improvements or a tear down of the building. Are we taking down a wall of the building envelope to expand the size of the building? Need to value existing and new values. Are we adding or removing 50% or more of the building?

New Building Construction


• What is the value of the project? Select one

o Less than or equal to $25 million? Consider including in State’s excess-property Builders Risk policy and report before break ground, or require Contractor Builders Risk policy

o More than $25 million? Contractor’s Builder’s Risk policy required

• Will there be partial occupancy prior to final completion? If Yes - contact DAS risk when occupancy begins for Risk Report or negotiate coverage for partial occupancy

• Is there a financial or operational impact if the building is not completed on time? If Yes - STOP – call DAS RISK consider liquidated damages

• Are there any special items, equipment, raw materials, finishes which have a long lead time between ordering and final delivery? If Yes - STOP – call DAS RISK consider liquidated damages

• Are there any high value items being shipped to the building site for this project? If Yes - STOP – call DAS RISK consider offsite storage and transit coverage

• Is the cost of the architects and engineers work, along with building permits, included in the project cost?

o If Yes - confirm these costs are covered in the policy

• Will the contractor store contractor or state-owned property at temporary storage off the project site (more than 1000 feet away)?

o If Yes - confirm policy has a proper storage value limit to cover the stored value

• Is there a hot or cold testing exposure? If Yes - confirm policy covers this testing Testing (hot or cold testing) is something that can be covered under a builder’s risk policy. If you have a system, like a back-up generator being installed at the time of the build, you’ll want to make certain the policy has coverage for testing.

6


• What is the construction classification (i.e., wood frame, joisted masonry, fire resistive of the completed structure? Contact DAS Risk when occupancy begins for Risk Report update

• What is the security plan for the project: fenced? Lighted? Watchman services? If good plan, get better price for insurance

Existing Building Construction (applies to Traditional Construction >> Existing Building Construction Path)

INSURANCE SELECTION DECISIONS Installation Floater question

• Is the project maintenance, repair or interior renovation of an existing building? If Yes - Installation Floater required

Contractors Builder’s Risk questions

• Is the project adding additional square footage to an existing building, either by adding additional floors or adding on to the existing building by breaching a wall and building an addition? If Yes - Contractor’s Builder’s Risk required

• Will the building be occupied during the construction activity? If Yes - Contractor would need to try to get surplus lines insurance, may not be able to get Builders Risk Coverage

o Leave occupied value on Risk Report

o Contractor to use Builder’s Risk Policy for addition

• What is the value of the project? Select one

o Less than or equal to $25 million? Consider including in State’s excess-property Builders

Risk policy and report before break ground, or require Contractor Builders Risk policy

o More than $25 million? Contractors Builder’s Risk policy required

• Will there be partial occupancy prior to final completion? If Yes - contact DAS Risk when occupancy begins for Risk Report or negotiate coverage for partial occupancy

• Is there a financial or operational impact if the building is not completed on time? If Yes - STOP – call DAS RISK consider liquidated damages

• Are there any special items, equipment, raw materials, finishes which have a long lead time between ordering and final delivery? If Yes - STOP – call DAS RISK consider liquidated damages

• Are there any high value items being shipped to the building site for this project? If Yes - STOP – call DAS RISK consider offsite storage and transit coverage

7

• Is the cost of the architects and engineers work, along with building permits, included in the

project cost?

o If Yes - confirm these costs are covered in the policy

• Will the contractor store contractor or state-owned property at temporary storage off the project site (more than 1000 feet away)?

o If Yes - confirm policy has a proper storage value limit to cover the stored value

• Is there a hot or cold testing exposure? If Yes - confirm policy covers this testing

Testing (hot or cold testing) is something that can be covered under a builders risk policy. If you have a system, like a back-up generator being installed at the time of the build, you’ll want to make certain the policy has coverage for testing.


• What is the construction classification (i.e., wood frame, joisted masonry, fire resistive of the completed structure? Contact DAS Risk when occupancy begins for Risk Report

• What is the security plan for the project: fenced? Lighted? Watchman services? If good plan, get better price for insurance

8

Professional Liability applies to (1) A&E and Related Services and (2) Design/Build Contracts



• Provide professional advice, instructions, or services? If Yes - select type

• Design a structure, building, or road (not including a bridge)? If Yes - select type

• Large project (more than $250M) and large design firm (ENR Top 50)? $10M

• Smaller project (less than $250M) and smaller, regional/local design firm? $5M

• Design a bridge? If Yes - select type

• Larger, more involved projects and large design firm (ENR Top 50)? $10M

• Larger, more involved projects and smaller, regional/local design firm? $10M

• Minor bridge projects and smaller, regional/local design firm? $5M

• Design additions, remodels, or tenant improvements? If Yes - select type

• Medium to large project and large design firm (ENR Top 50)? $5M

• Smaller project (i.e., very small, interior remodel) and smaller, regional/local design firm? $2M

• Smaller projects, consider CGL and combined professional/pollution liability for GC • Consider $3-$5M underlying coverage


No questions

Rationale from WTR’S Andrew Boyer – Professional Liability North American Construction and Complex A&E

1. Design work for building, structure or road. Reaching a definitive position on limit is always a difficult one to gauge and will often depend on the size of contracts, type of work and size of design firm we are considering. Large design firms often purchase very significant ‘towers’ of coverage – USD50m, USD75m, USD100m+ but will very rarely make these levels available. They will only agree to evidence reduced levels and tie these levels into a limitation of liability to match. If we are considering large projects (say USD250m plus in contract size) and large design firms (ENR top 50) I think Oregon should be aiming to secure USD10m of cover for contracts like

9

these. They may consider reducing this to USD5m, if the projects are smaller and/or they are using smaller ‘boutique’ consultants that are regional/local.

2. Design work for bridge. I’d probably reiterate the comments above, but for bridges they should be less inclined to reduce to the USD5m amount, particularly if you’re talking about significant bridge projects.

3. Design work for TI’s, additions or remodels. Again I’d reiterate the comments above, but these type of projects could be viewed as lower risk. So Oregon could be more comfortable reducing to USD5m and may even consider a reduced amount, say USD2m, if the project is a very small, interior remodel for example.

For D&B Contractors, I will suggest they use the same criteria. Try and get USD10m on the large projects, using large contractors. Be prepared to reduce to USD5m if the project is smaller, but not drop below that unless the project is very small and low risk, such as interior re-modelling, additions etc.

Remember, if they are struggling to get significant limit from designers of D&B contractors, we can always go into the OPPI market and build excess catastrophe cover, like we did before.

1

KEY: WILLIS or WILLIS – proposed edits from State’s insurance broker Willis Towers Watson and DAS Risk team review $1,000,000 – Insurance values to be varied based on risk assessment

Proposed Model Public Improvement Contracts (Construction) Insurance Language

INSURANCE REQUIREMENTS

Contractor shall obtain at Contractor’s expense the insurance specified in this section 4 prior to performing under this Contract and shall maintain it in full force and at its own expense throughout the duration of this Contract, as required by any extended reporting period or tail coverage requirements, and all warranty periods that apply. Contractor shall obtain the following insurance from insurance companies or entities that are authorized to transact the business of insurance and issue coverage in State and that are acceptable to Agency. Coverage shall be primary and non-contributory with any other insurance and self-insurance with the exception of Professional Liability and Workers’ Compensation. Contractor shall pay for all deductibles, self-insured retention and self-insurance, if any. WORKERS’ COMPENSATION & EMPLOYERS’ LIABILITY

All employers, including Contractor, that employ subject workers, as defined in ORS 656.027, shall comply with ORS 656.017 and provide workers' compensation insurance coverage for those workers, unless they meet the requirement for an exemption under ORS 656.126(2). Contractor shall require and ensure that each of its subcontractors complies with these requirements. If Contractor is a subject employer, as defined in ORS 656.023, Contractor shall also obtain employers' liability insurance coverage with limits not less than $500,000 $1,000,000 each accident. If Contractor is an employer subject to any other state’s workers’ compensation law, Contractor shall provide workers’ compensation insurance coverage for its employees as required by applicable workers’ compensation laws including employers’ liability insurance coverage with limits not less than $500,000 $1,000,000 and shall require and ensure that each of its out-of-state subcontractors complies with these requirements. Contractor shall provide a waiver of subrogation in favor of the Owner. COMMERCIAL GENERAL LIABILITY

Required Not required

Commercial General Liability Insurance covering bodily injury and property damage written on an ISO CG 00 01 10 01 (or equivalent) in a form and with coverage that are satisfactory to the State. This insurance shall include personal and advertising injury liability, products and completed operations, contractual liability coverage for the indemnity provided under this contract, and have no limitation of coverage to designated premises, project or operation. Coverage shall be written on an occurrence basis in an amount of not less than $1,000,000 per occurrence. Annual aggregate limit shall not be less than $2,000,000. Contractor shall provide a waiver of subrogation in favor of the Owner. AUTOMOBILE LIABILITY INSURANCE


Automobile Liability Insurance covering Contractor’s business use including coverage for all owned, non-owned, or hired vehicles with a combined single limit of not less than $1,000,000 for bodily injury and property damage. This coverage may be written in combination with the Commercial General Liability Insurance (with separate limits for Commercial General Liability and Automobile Liability). Use of personal automobile liability insurance coverage may be acceptable if evidence that the policy includes a business use endorsement is provided. Contractor shall provide a waiver of subrogation in favor of the Owner.

2


CONTRACTOR’S PROFESSIONAL LIABILITY


Contractor’s Professional Liability insurance covering any damages caused by an error, omission or any negligent acts related to the services, including design services, to be provided under this Contract by the Contractor and Contractor’s subcontractors, agents, officers or employees in an amount not less than $1,000,000 per occurrence. Annual aggregate limit shall not be less than $2,000,000. If coverage is on a claims made basis, the retroactive date of the policy must be prior to the inception of the work and then either an extended reporting period of not less than 24 months equal to the statute of repose shall be included in the Professional Liability insurance coverage, or the Contractor shall provide Tail Coverage as stated below. CONTRACTOR’S POLLUTION LIABILITY


Contractor’s Pollution Liability Insurance covering Contractor’s or appropriate subcontractor’s liability for bodily injury, property damage, loss of use of property, government ordered cleanup costs, natural resource damage, environmental damage, asbestos and lead environmental or natural resource damage resulting from sudden, accidental and gradual pollution and related cleanup costs incurred by Contractor or subcontractor if the coverage is obtained by the subcontractor, all arising out of the work performed (including transportation risk) under this Contract is required. Combined single limit per occurrence shall not be less than The per loss limit within the policy shall be no less than $1,000,000. Annual aggregate limit shall not be less than $1,000,000. Contractor shall provide a waiver of subrogation in favor of the Owner. EXCESS/UMBRELLA INSURANCE


Excess/umbrella insurance coverage in the sum of $5,000,000 shall be provided and will apply over all liability policies, without exception, including but not limited to Commercial General Liability, Automobile Liability, and Employers' Liability coverage. Contractor shall provide a waiver of subrogation in favor of the Owner. BUILDER’S RISK INSURANCE


A. Builder’s Risk

During the term of this Contract, contractor shall maintain and keep in effect Builders Risk insurance on an all risk form, including earthquake and flood, covering risks of physical loss or damage to the structure(s) (including without limitation the transmission lines to the interconnected facilities, buildings, temporary structures, materials, supplies and equipment to be incorporated in the Work. For new construction, the contractor shall secure, be responsible for payment of premium, deductibles and any penalties associated with the policy. The policy shall include coverage for “soft costs” resulting from delay in construction. As applicable, Such insurance shall cover all building(s), facilities or other improvements, as outlined in the contract, during construction and testing, and shall include the Owner, Design-Builder, Consultants, Contractors, and Subcontractors, sub-subcontractors to the Project as insureds. Any deductible shall not exceed $50,000 for each loss, except the earthquake and flood deductible shall not exceed 2 five (5) percent of each loss or $50,000, whichever is more. The policy shall be written on a replacement cost basis and shall contain an agreed amount endorsement waiving any coinsurance penalty. The policy will include as loss payees the owner, the contractor and it subcontractors as their interest may apply. The policy limit should be equal to the full amount of the Contract.

3


B. Builder’s Risk Installation Floater

For other than new construction the Contractor shall obtain and keep in effect during the term of this Contract, a Builder's Risk Installation Floater for coverage of the Contractor's labor, materials and equipment to be used for completion of the Work performed under this Contract. The minimum amount of coverage to be carried shall be equal to the full amount of the Contract. This insurance shall include as loss payees the Owner, the Contractor and its Subcontractors as their interests may appear.

C. Builder’s Risk Period

Such insurance shall be maintained until the later of (a) final payment is made, or (b) no person or entity other than the Owner has an insurable interested in the covered property.

D. Builder’s Risk Losses

A loss insured under the Builder’s Risk and Builder’s Risk Installation Floater shall be adjusted by the Owner and made payable to the Owner for the insureds, as their interests may appear. The Contractor shall pay Subcontractors their just shares of insurance proceeds received by the Contractor, and by appropriate agreements, written where legally required for validity, shall require Subcontractors to make payments to their Sub-subcontractors in similar manner. The Owner shall have power to adjust and settle a loss with insurers. ADDITIONAL INSURED

The Commercial General Liability insurance and Automobile liability insurance required under this Contract must include an additional insured endorsement specifying the State of Oregon, its officers, employees and agents as Additional Insureds, including additional insured status with respect to liability arising out of ongoing operations and completed operations, but only with respect to Contractor's activities to be performed under this Contract. Coverage shall be primary and non-contributory with any other insurance and self-insurance. The Additional Insured endorsement with respect to liability arising out of your ongoing operations must be on ISO Form CG 20 10 07 04 or equivalent and the Additional Insured endorsement with respect to completed operations must be on ISO form CG 20 37 04 13 or equivalent. EXTENDED REPORTING

If any of the required insurance is on a claims made basis and does not include an extended reporting period through the ultimate statute of repose, Contractor shall maintain either tail coverage or continuous claims made liability coverage, provided the effective date of the continuous claims made coverage is on or before the effective date of this Contract, for a period equal to the ultimate statute of repose following the later of (i) Contractor’s completion and Agency’s acceptance of all Services required under this Contract, or, (ii) The expiration of all warranty periods provided under this Contract. CERTIFICATE(S) AND PROOF OF INSURANCE

Contractor shall provide to Agency Certificate(s) of Insurance for all required insurance before delivering any Goods and performing any Services required under this Contract. The Certificate(s) shall list the State of Oregon, its officers, employees and agents as a Certificate holder and as an endorsed Additional Insured. The Certificate(s) shall also verify a waiver of subrogation provision in favor of the Owner is included in the Workers’ Compensation, Commercial General Liability, Automobile Liability, and Contractor’s Pollution Liability policies. If excess/umbrella insurance is used to meet the minimum insurance requirement, the Certificate of Insurance must include a list of all policies that fall under the excess/umbrella insurance. As proof of insurance Agency has the right to request copies of insurance policies and endorsements relating to the insurance requirements in this Contract.

4


NOTICE OF CHANGE OR CANCELLATION

The contractor or its insurer must provide at least 30 days’ written notice to Agency before cancellation of, material change to, potential exhaustion of aggregate limits of, or non-renewal of the required insurance coverage(s).

INSURANCE REQUIREMENT REVIEW

Contractor agrees to periodic review of insurance requirements by Agency under this agreement and to provide updated requirements as mutually agreed upon by Contractor and Agency. STATE ACCEPTANCE

All insurance providers are subject to Agency acceptance. If requested by Agency, Contractor shall provide complete copies of insurance policies, endorsements, self-insurance documents and related insurance documents to Agency’s representatives responsible for verification of the insurance coverages required under this Section 4.

Table of Contents

Click one of the following links or click directly on a tab at the bottom of this document.

Tab 2 - Typical Cost Guide - use to learn typical costs associated with accidents and injuries.

Tab 4 - Rate it - IT Services - use AFTER completing Tab 3 to determine insurance requirements for IT related procurements.

Tab 1 - Instructions - use the instructions to learn about the most critical steps in the risk assessment process.

Tab 5 - Summary - IT Services - use AFTER completing Tab 4 to save/print insurance requirements summary for documentation.

Tab 3 - Assessment - IT Services - the most critical part of the risk assessment for IT related procurements; use to evaluate potential risk and cost.

State of Oregon - Department of Administrative Services, Risk Management v4_Revised Date: 08/01/2018

1.

2.

3.

4.

5.

a.

b.

This tool is to assist in guiding Agencies to determine:

Potential damage to the State and to non-State parties, such as private citizens, due to the

contractor's activities;

Personal Service Contracts and Goods Contracts

b. Less conservative ratings may result in inadequate insurance.

c.

State of Oregon - Insurance Coverage Assessment

Instructions

Using the "Assessment - IT Services" tab is essential and the most important part of the process. This will

provide guidance and a thought process for determining insurance requirements.

Before beginning, verify the correct contract insurance requirement template is being used. There are separate

templates for:

d. When/if deciding to adjust the insurance requirements above or below the worksheet results,

document the reason in the space provided.

a.

Use the thought process provided in the "Rate It" tab to arrive at a reasonable decision that can be

defended.

Conservative adjustments may result in greater insurance requirements (which provides more

protection, but more protection than what is needed can also increase costs and possibly eliminate

some potential contractors from the process).

Reasonably appropriate insurance requirements for use in the insurance requirement contract

template.

Information Technology (IT) Services

a.

b.

Keep in mind: There can be subjectivity when determining insurance requirements. Results from this assessment

may be adjusted. Considerations:

Review the Popups icon (red triangle on the top left of this field). These Popups/comment boxes offer very

helpful tips along your Risk Assessment journey.

After reviewing the "Assessment - IT Servies" tab, select the "Rate it - IT Servies" tab and complete the insurance

coverage assessment.


If more than one passenger, multiply above dollar amounts by number of passengers.

Note: Though cases may be reserved at these levels, it is not an indication the state is actually liable.

Guideline: These are relatively infrequent cases, but when the allegations are made they can be high risk and expensive claims. Alleged abuse is to clients in care,

custody and control of the state and where the state has contracted with another party to provide services the state is responsible to provide.

Potential Cost:

Can often range from $0 to $50,000.

Occasionally $100,000 to $500,000.

Though rare, cases can exceed $1,000,000 up to $3,000,000.

Type of Accident/Claim: Abuse (physical, sexual, emotional) to clients

Guideline: If contractor in accident, they could be liable for:

Other party’s vehicle.

Potential Cost:Potential Cost:

Total loss of other party’s vehicle average $2,000 to $25,000 (or more based on vehicle).

Bodily Injury to passengers in contractor's vehicle (such as a client or state employee) and/or passengers in the other part's vehicle.

Injury to passenger. If one person typically $0 to $100,000. Some could be up to $100,000 to $500,000. Less frequent but possible to be

over $500,000.

Less frequent, but possible to be over $100,000.

Type of Accident/Claim: Bodily Injury

Guideline:

Typical Cost Guide

Injury to body part. Examples: Fall and injure knee; Knocked down and injure back.

Potential Cost:

Many are $0 to $100,000.

Rare, but possible to be over $500,000.

Type of Accident/Claim: Automobile Accident


1.

2.

3.

Note:

After evaluating the risks per STEP 1 through STEP 3, determine risk ratings per STEP 4. Then, select the "Rate it - IT Services" tab to

complete the assessment and determine the insurance requirements.

How will the service be used? What is its purpose? What function does it serve?

How dependent is the overall project on the service?

What data and systems will be impacted (what other systems or data will this system interface with, if any)?

What other data and systems will the contractor have access to? For example, will the contractor have access to or be able to gain access

to other state servers or operating systems that then puts that data and systems at risk?

Will the contractor have access to or will any data be at risk that is private, protected or proprietary?

Seek assistance of business and subject matter experts related to this procurement. Their knowledge will likely be necessary for

completing the risk assessment.

Instructions

STEP 1: What is the Scope of Service?

Use this "Assessment - IT Service" worksheet to consider and evaluate risks to the State and to third parties (non-State parties, such

as private citizens) due to the contractor's activities (4 STEPS).

Enter NOTES as needed to help consider and evaluate the risks.

NOTES:

The questions within the steps below are to help prompt the thinking/assessment process, but is not an exhaustive list of

questions. Additional questions may need to be addressed.

Complete STEP 1 through STEP 4

IT Services - Complete an Assessment and Determine a RATING


Could it cause an interruption to a function of state business resulting in a loss of revenue to the state? (For example, would the agency

lose revenue due to being unable to process licenses, etc.?)

If yes, for how long?

If yes, what is the estimated dollar amount? = $

If yes, is any of the data private, protected information?

If yes, is the data private, protected or proprietary? Are there state or federal privacy laws associated with this data? Are there

state or federal fines, fees or penalties that would apply if they data was released? (Enter notes below.)

Could it cause an interruption or failure in a function of state business resulting in extra expenses? (For example, would a project need to

be discontinued and started over - essentially doubling the cost of the project?)

STEP 2: What could go wrong and how severe could it be (worse case scenario)?

Would the state incur additional cost by changing to manual methods or temporarily hiring outside resources, etc.? (For example, if the

system that is designed to automate a process fails or does not work properly would you have to resort to manual methods, incur overtime

cost, incur the cost of additional temporary labor, etc.?

If yes, estimate the cost to recover, restore, or recreate the data. $

If yes and any of the data is private, protected information, how many records? (Hover mouse here for definition of record and examples.)

If no, explain why:


Is there the potential (even remote potential) of data being released (breached), lost or destroyed as a result of the services provided?

Will the contractor have access to any other state systems or data? For example, will the contractor be able to gain access to other state

servers or operating systems that then puts that data and systems at risk?

If no, explain why:

If yes, ensure the responses to the above questions contemplates these exposures.

If no, explain why:

If yes, what type of data and how much data?

What could go wrong should there be an error or omission in the service? (Worse case scenarios) (Enter NOTES below)

If no, explain why:

If no, explain why:



NOTES:


Should the system fail or data be released or destroyed as a result of recommendations or services from the contractor, is there a

plan to back-up/replicate data? Is there a disaster recovery plan in place requiring the system and data restoration within 24

hours?

Will these preventative measures be contract requirements?

If something does go wrong, how likely is it that it will be identified and corrected early - before it becomes a worse case scenario?

What preventative measures and/or precautions will be required to reduce the likelihood of an error or omission?

STEP 3: MITIGATION: How likely is it that something will actually go wrong and how severe/costly might it actually be? Here are some

examples of factors to consider. The business people and subject matter experts involved in this risk assessment may have other or

additional factors to consider. (Enter your NOTES below.)

What is the reputation and experience of the contractor?

Considering the nature of the service provided, how often does something go wrong and what is the typical cost?

NOTES:

If things rarely go wrong, is it due to good fortune or good precautions/preventative measures ?

If something does go wrong, how likely is it that damages will be fairly minor compared to mid-level, significant, major, or

catastrophic?

What other controls will be in place to quickly identify a potential error or omission before acting on the advice/recommendations

of the contractor?

Will controls be in place to quickly identify a loss, damage or destruction of data?

After contemplating mitigation efforts that will be applied, how does the estimated impact of possible errors or omissions by the

contractor calculated in STEP 2 change (if at all)?


Minor Mid-Level Significant Major Catastrophic

Fair Fair Extreme Extreme Extreme

Low Fair Moderate High Severe



Low Low Fair Moderate High

None None None None None

INSTRUCTIONS:

1. First, go across the Severity line, selecting Insignificant, Minor, Mid-Level, Major, or Critical

2. Then, go down the column selecting Almost Certain, Likely, Possible, Unlikely, Rare, or None.

3. Where the two intersect is your risk rating.

Minor - Potential outcome or cost of damages or financial loss is $1,000,000 to $1,999,999.

Mid-Level - Potential outcome or cost of damages or financial loss is $2,000,000 to $4,999,999.

Significant - Potential outcome or cost of damages or financial loss is $5,000,000 to $7,499,999.

Major - Potential outcome or cost of damages or financial loss is $7,500,000 to $12,999,999.

Catastrophic - Potential outcome or cost of damages or financial loss is over $13,000,000 to $20,000,000.

SEVERITY RATING - GENERAL GUIDE:

STEP 4: After completing the above thought process, determine a rating.

Low

LIK

ELIH

OO

D

Insignificant - Potential outcome or cost of damages or financial loss is less than $1,000,000.

Rare Low

None None

*SEVERITY: --> Insignificant

Likely

Possible Low

"SEVERITY" - All things considered (per the thought process from STEPS 1 - 3) how severe might the loss or damage be in terms of dollars

(*see General Guide, below)?

"LIKELIHOOD" - All things considered (per the thought process from STEPS 1 - 3) how likely it is something will go wrong and/or result in

worst case scenario?

Unlikely Low

Almost Certain Fair


After evaluating the risks per STEP 1 through STEP 3, determine risk ratings per STEP 4. Then, select the "Rate it - IT Services" tab to

complete the assessment and determine the insurance requirements.

How will the service be used? What is its purpose? What function does it serve?

How dependent is the overall project on the service?

What data and systems will be impacted (what other systems or data will this system interface with, if any)?

What other data and systems will the contractor have access to? For example, will the contractor have access to or be able to gain access

to other state servers or operating systems that then puts that data and systems at risk?

Will the contractor have access to or will any data be at risk that is private, protected or proprietary?

Seek assistance of business and subject matter experts related to this procurement. Their knowledge will likely be necessary for

completing the risk assessment.

Instructions


Use this "Assessment - IT Service" worksheet to consider and evaluate risks to the State and to third parties (non-State parties, such

as private citizens) due to the contractor's activities (4 STEPS).

Enter NOTES as needed to help consider and evaluate the risks.

NOTES:




IT Services - Complete an Assessment and Determine a RATING


records

Could it cause an interruption to a function of state business resulting in a loss of revenue to the state? (For example, would the agency

lose revenue due to being unable to process licenses, etc.?)

If yes, is the data private, protected or proprietary? Are there state or federal privacy laws associated with this data? Are there

state or federal fines, fees or penalties that would apply if they data was released? (Enter notes below.)

Could it cause an interruption or failure in a function of state business resulting in extra expenses? (For example, would a project need to

be discontinued and started over - essentially doubling the cost of the project?)

STEP 2: What could go wrong and how severe could it be (worse case scenario)?

Would the state incur additional cost by changing to manual methods or temporarily hiring outside resources, etc.? (For example, if the

system that is designed to automate a process fails or does not work properly would you have to resort to manual methods, incur overtime

cost, incur the cost of additional temporary labor, etc.?

Is there the potential (even remote potential) of data being released (breached), lost or destroyed as a result of the services provided?

Will the contractor have access to any other state systems or data? For example, will the contractor be able to gain access to other state

servers or operating systems that then puts that data and systems at risk?

If yes, ensure the responses to the above questions contemplates these exposures.

What could go wrong should there be an error or omission in the service? (Worse case scenarios) (Enter NOTES below)


NOTES:


Should the system fail or data be released or destroyed as a result of recommendations or services from the contractor, is there a

plan to back-up/replicate data? Is there a disaster recovery plan in place requiring the system and data restoration within 24

hours?


If something does go wrong, how likely is it that it will be identified and corrected early - before it becomes a worse case scenario?

What preventative measures and/or precautions will be required to reduce the likelihood of an error or omission?

STEP 3: MITIGATION: How likely is it that something will actually go wrong and how severe/costly might it actually be? Here are some

examples of factors to consider. The business people and subject matter experts involved in this risk assessment may have other or

additional factors to consider. (Enter your NOTES below.)



NOTES:

If things rarely go wrong, is it due to good fortune or good precautions/preventative measures ?

If something does go wrong, how likely is it that damages will be fairly minor compared to mid-level, significant, major, or

catastrophic?

What other controls will be in place to quickly identify a potential error or omission before acting on the advice/recommendations

of the contractor?

Will controls be in place to quickly identify a loss, damage or destruction of data?

After contemplating mitigation efforts that will be applied, how does the estimated impact of possible errors or omissions by the

contractor calculated in STEP 2 change (if at all)?


INSTRUCTIONS:

1. First, go across the Severity line, selecting Insignificant, Minor, Mid-Level, Major, or Critical

2. Then, go down the column selecting Almost Certain, Likely, Possible, Unlikely, Rare, or None.


Minor - Potential outcome or cost of damages or financial loss is $1,000,000 to $1,999,999.

Mid-Level - Potential outcome or cost of damages or financial loss is $2,000,000 to $4,999,999.

Significant - Potential outcome or cost of damages or financial loss is $5,000,000 to $7,499,999.

Major - Potential outcome or cost of damages or financial loss is $7,500,000 to $12,999,999.

Catastrophic - Potential outcome or cost of damages or financial loss is over $13,000,000 to $20,000,000.

SEVERITY RATING - GENERAL GUIDE:

STEP 4: After completing the above thought process, determine a rating.

Insignificant - Potential outcome or cost of damages or financial loss is less than $1,000,000.

"SEVERITY" - All things considered (per the thought process from STEPS 1 - 3) how severe might the loss or damage be in terms of dollars

(*see General Guide, below)?

"LIKELIHOOD" - All things considered (per the thought process from STEPS 1 - 3) how likely it is something will go wrong and/or result in

worst case scenario?


1.

2.

3.

Cause bodily injury to state employees? (Hover mouse here for examples.)

No = 0, Low = 1, Moderate = 2, High = 3, Severe = 4, Extreme = 5



While performing the work, could the contractor:

No = 0, Low = 1, Moderate = 2, High = 3, Severe = 4, Extreme = 5Cause damage to state property? (Hover mouse here for examples.)

Cause bodily injury to a third party (including injury to a client or citizen)? (Hover mouse here for definition of "client", "citizen", "third party" and examples.)

Seek assistance of business and subject matter experts related to this procurement. Their knowledge will likely be necessary for completing the risk assessment.

Complete the assessments below to determine Commercial General Liability (CGL) and Automobile Liability insurance coverages and limits.

WORKERS' COMPENSATION & EMPLOYERS' LIABILITY: Link for more Workers' Compensation information

Complete the assessments below to determine Professional Liability (Technology Errors & Omissions) insurance coverages and limits.

Information Technology Services Procurements

Instructions:

Note: Contracted Training Services with no system or data access should use and complete the Service Risk Assessment Tool for Insurance Requirements (see below for

more details.)

COMMERCIAL GENERAL LIABILITY (CGL): Link for more CGL information

Cause damage to a third party's property (including a client's or citizen's property)? (Hover mouse

here for definition of "client", "citizen", "third party" and examples.)

Workers' Compensation does not need to be risk assessed. Requirements are already included in the Insurance Requirements template. Per our template language, if the contractor

is legally required to have it, then it is required. It is up to the contractor to know their legal workers' compensation requirements. The contractor can contact the Oregon Workers'

Compensation Division at (503) 947-7810 if they have questions or need assistance in determining their workers' compensation insurance requirements.

CGL is required in most all contracts, including IT Services contracts. It is difficult to imagine when CGL would NOT be required. It insures the Contractor has broad liability coverage

for contractual activities and for completed operations. For example: the contractor could leave something on the floor someone trips over; or hardware provided by the contractor

(if applicable) could heat up causing a fire.

RATING: If something goes wrong, how bad is the outcome likely to

be? (determine separately for each question; see "Rate It" tab for

assistance.)

Cause a personal or advertising injury to the state, a client of the state, or a citizen? (Hover mouse here for more information.)



https://www.oregon.gov/das/Risk/Pages/InsclausesWC.aspx#


https://www.oregon.gov/das/Risk/Pages/CntrctrInsReq.aspx#




https://www.oregon.gov/das/Risk/Pages/InsclausesCmrclIns.aspx#


Score:

0 Commercial General Liability coverage is not required.

1 - 10 CGL required: $1,000,000 per occurrence with $2,000,000 aggregate


18+ CGL required: $5,000,000 per occurrence with $10,000,000 aggregate


The amount indicated per the below chart based on the "Total Commercial General

Liability Score."

DAS Risk Management suggested insurance:

Based on the total score, require the contractor to have the following limits of Commercial

General Liability (CGL) insurance coverage:

THIS TOOL IS A GUIDELINE. If you conclude a different limit is appropriate, you

may use it. Document your reasoning below. 3. If none of the individual items received a score of 4 or 5, then base insurance requirement on

the chart below.

Limits:

As part of the IT Service Contract, will the contractor be providing hardware? If yes, if the hardware

malfunctions or is defective could it result in bodily injury or property damage? (Hover mouse

here for more information.)

Total Commercial General Liability Score:

$2,000,000 per occurrence with $4,000,000 aggregate,

1. If any one item receives a score of 4, then the suggested insurance requirement is as follows,

whichever is greater:

AUTOMOBILE LIABILITY: (regarding contractor's owned, non-owned, or hired vehicles) Link for more Automobile Liability information

Will the contractor: How Often?

If YES, require Auto Liability Coverage with Combined Single limit of $5,000,000. If

NO, continue with below questions and determine insurance requirements based

on the total score.

Total Automobile Liability Score:

Transport state property, clients, or employees? (Hover mouse here for definitions of: Limited, Often, Frequent) No = 0, Limited = 1, Often = 2, Frequent = 3

Transport by bus/van 15+ clients or employees per vehicle?

2. If any one item receives a score of 5, then the suggested insurance requirement is:

or


CGL required: $1,000,000 per occurrence with $2,000,000 aggregate

Automobile liability insurance is typically required in most contracts. Use whenever contracted work requires use of a licensed vehicle on public roads, or on your property. This

includes driving between job sites, to and from meetings, or even occasional trips by the contractor to attend a meeting.

Based on the score, require the contractor to have the following limits of Automobile Liability

Coverage:

Use a vehicle to accomplish the work? (Hover mouse here for definitions of: Limited, Often, Frequent) No = 0, Limited = 1, Often = 2, Frequent = 3

Travel to or from state locations? (Hover mouse here for definitions of: Limited, Often, Frequent) No = 0, Limited = 1, Often = 2, Frequent = 3


https://www.oregon.gov/das/Risk/Pages/InsclausesAutoLiabIns.aspx#


0

1 - 6

7 - 8

8+

I.

II.

III.

Select one of the following descriptions best describing the IT service being contracted for and complete the assessment to determine professional liability insurance limits.

Use when the contractor has NO access to our system or to data AND the training is not being relied upon for fulfilling a critical function. The contractor is providing general training

only such as use of Microsoft Office functions, etc. to assist with general employee development/skill building.

I. TRAINING SERVICES ONLY (Use the Service Risk Assessment Tool for Insurance Requirements) - Link

CONSULTING, PLANNING, or PROJECT MANAGEMENT SERVICES ONLY - Services where: 1) The service is for advice only; and 2) The contractor has NO access

to the operating system or protected personal information/data before, during, or after the services are provided.

Auto Liabiltiy Coverage required with $1,000,000 combined single limit

Use the Service Risk Assessment Tool for Insurance Requirements - Link

ANY SERVICE where the contractor WILL have access to or can impact the operating system and/or data.

PROFESSIONAL LIABILITY (Technology Errors & Omissions): (For IT Services)

TRAINING SERVICES ONLY - The contractor has NO access to our system or to data AND the training is not being relied upon for fulfilling a critical function.

The contractor is providing general training only such as use of Microsoft Office functions, etc. to assist with general employee development/skill building.

Auto Liability Coverage required with $2,000,000 combined single limit



may use it. Document your reasoning below.

Score: Limits:


No automobile insurance coverage required


Technology Errors and Omissions. A specialized form of professional liability coverage for the technology related errors, omissions and/or negligence of the contractor such as errors

or omissions in programming, software performance, and/or system failure and security. Which would include contractor's liability related to expenses associated with unauthorized

access to, or use of, systems and disclosure/breach of confidential information; denial or loss of service; introduction, implantation, or spread of malicious software code;

unauthorized access to system.

Instructions:

INSURANCE REQUIREMENT for TRAINING ONLY - Professional Liability insurance requirement for this service is optional. If you elect to require it, use the Professional Liability

insurance requirement language from the Services template rather than the IT services template.







Score:

0

3

3 - 4

4

4 - 5

5

5 - 6

6

$ -

Tech E & O required: $1,000,000 per claim

*If $10,000,000 or more is required, contact Risk Management to review.

Based on the score, require the contractor to have the following limits of Technology Errors &

Omissions coverage: Technology Errors & Omissions Score:

NO = 0. If YES: if contractor makes an error or omission in performing this

work, how severe is the likely outcome to be? Enter the score to the right.

Low = 3, Fair = 4, Moderate = 5, High = 6, Severe = 7, Extreme = 8

Technology Errors and Omissions Coverage Amount Selected:

Limits - No Less Than:


II. CONSULTING, PLANNING, or PROJECT MANAGEMENT SERVICES ONLY

Make professional judgements the state will rely on to accomplish the work?

Use when: 1) The service is for advice only; and 2) The contractor has NO access to the operating system or protected personal information/data before, during, or after the services

are provided.



First - Complete an assessment. See "Assessment - IT Services" worksheet/tab, then complete the following section.

Rating: In performing the work, will the contractor:



Enter Per Claim Amount Selected from Above

Technology Errors and Omissions coverage is not required.



Tech E & O required: $10,000,000 per claim*


Score:

0

3

3 - 4

4

4 - 5

5

5 - 6

6

Technology Errors and Omissions Coverage Amount Selected:

$ 5,000,000 Enter Per Claim Amount Selected from Above

*If $10,000,000 or more is required, contact Risk Management to review.

First - Complete an assessment. See "Assessment - IT Services" worksheet/tab.

III. ANY SERVICE where the contractor WILL have access to or can impact the operating system and/or data.

STEP 1: Assessment for contractors advice, intellect, judgements, and professional services such as programing, software, etc.

Then complete the following three steps (1, 2 and 3) to determine a per claim limit of coverage for Technology Errors & Omissions.



Rating:

Based on the score, require the contractor to have the following limits of Technology Errors &

Omissions coverage: Technology Errors & Omissions Score:

Technology Errors and Omissions coverage is not required.

Make professional judgements and or provide professional services such as programing, software,

etc. the state will rely on to accomplish the work?NO = 0. If YES: if contractor makes an error or omission in performing this

work, how severe is the likely outcome to be? Enter the score to the right.

Low = 3, Fair = 4, Moderate = 5, High = 6, Severe = 7, Extreme = 8


Limits - No Less Than:

In performing the work, will the contractor:

NOTE: The below scores overlap, allowing some flexibility in selecting insurance requirements

based on the specific situation. Use the matrix at the bottom of the "Assessment - IT Services"

worksheet as a guide. For example, a lower limit may be appropriate if the likelihood is "Unlikely"

or "Rare" and a higher limit may be appropriate if the likelihood is "Likely" or "Almost Certain".



Tech E & O required: $10,000,000 per claim*





STEP 3: Final Suggested Determination for Technology Errors & Omissions

Amount/Limits Required = a limit of no less than the amount noted within Step 1 or Step 2 above. The required limit of coverage is the greater of the two . (Hover mouse here for

examples.) (If more than $10,000,000 is required, contact Risk Management.)

How many records, including Protected Personal Information (PPI) (per state and federal law), are at risk? How many of these records could be damaged, destroyed, illegally accessed

or released? (Hover mouse here for definition of "record" and examples.)

$ 7,000,000

Number of records = (insert number in cell

to the right)

STEP 2: Assessment of damages due to a potential breach

THIS TOOL IS A GUIDELINE. If you conclude a different limit is appropriate, you may use it. Document your reasoning below.

7,000,000$

500,000

DAS Risk Management Suggested Technology Error and Omissions Coverage Amount Per Claim

Technology Errors and Omissions Coverage Amount Suggested Per Claim:

$ 5,000,000

$ 7,000,000

STEP 1 Technology Errors and Omissions Coverage Amount Selected Per Claim:

STEP 2 Technology Errors and Omissions Coverage Amount Suggested Per Claim:


Score

2

0

3

0

1

Seek assistance of business and subject matter experts related to this procurement. Their knowledge will likely be necessary for completing the risk assessment.

Complete the assessments below to determine Commercial General Liability (CGL) and Automobile Liability insurance coverages and limits.


Complete the assessments below to determine Professional Liability (Technology Errors & Omissions) insurance coverages and limits.

Information Technology Services Procurements

Instructions:

Note: Contracted Training Services with no system or data access should use and complete the Service Risk Assessment Tool for Insurance Requirements (see below for

more details.)





CGL is required in most all contracts, including IT Services contracts. It is difficult to imagine when CGL would NOT be required. It insures the Contractor has broad liability coverage

for contractual activities and for completed operations. For example: the contractor could leave something on the floor someone trips over; or hardware provided by the contractor

(if applicable) could heat up causing a fire.


2

8

Score

1

1

0

2





If YES, require Auto Liability Coverage with Combined Single limit of $5,000,000. If

NO, continue with below questions and determine insurance requirements based

on the total score.





Select one of the following descriptions best describing the IT service being contracted for and complete the assessment to determine professional liability insurance limits.

Use when the contractor has NO access to our system or to data AND the training is not being relied upon for fulfilling a critical function. The contractor is providing general training

only such as use of Microsoft Office functions, etc. to assist with general employee development/skill building.

I. TRAINING SERVICES ONLY (Use the Service Risk Assessment Tool for Insurance Requirements) - Link

CONSULTING, PLANNING, or PROJECT MANAGEMENT SERVICES ONLY - Services where: 1) The service is for advice only; and 2) The contractor has NO access

to the operating system or protected personal information/data before, during, or after the services are provided.

Auto Liabiltiy Coverage required with $1,000,000 combined single limit

Use the Service Risk Assessment Tool for Insurance Requirements - Link

ANY SERVICE where the contractor WILL have access to or can impact the operating system and/or data.

PROFESSIONAL LIABILITY (Technology Errors & Omissions): (For IT Services)

TRAINING SERVICES ONLY - The contractor has NO access to our system or to data AND the training is not being relied upon for fulfilling a critical function.

The contractor is providing general training only such as use of Microsoft Office functions, etc. to assist with general employee development/skill building.




Technology Errors and Omissions. A specialized form of professional liability coverage for the technology related errors, omissions and/or negligence of the contractor such as errors

or omissions in programming, software performance, and/or system failure and security. Which would include contractor's liability related to expenses associated with unauthorized

access to, or use of, systems and disclosure/breach of confidential information; denial or loss of service; introduction, implantation, or spread of malicious software code;

unauthorized access to system.

Instructions:

INSURANCE REQUIREMENT for TRAINING ONLY - Professional Liability insurance requirement for this service is optional. If you elect to require it, use the Professional Liability

insurance requirement language from the Services template rather than the IT services template.


Score

0

$ -

II. CONSULTING, PLANNING, or PROJECT MANAGEMENT SERVICES ONLY

Use when: 1) The service is for advice only; and 2) The contractor has NO access to the operating system or protected personal information/data before, during, or after the services

are provided.



First - Complete an assessment. See "Assessment - IT Services" worksheet/tab, then complete the following section.


Score

5

5

$ 5,000,000

First - Complete an assessment. See "Assessment - IT Services" worksheet/tab.

III. ANY SERVICE where the contractor WILL have access to or can impact the operating system and/or data.

STEP 1: Assessment for contractors advice, intellect, judgements, and professional services such as programing, software, etc.

Then complete the following three steps (1, 2 and 3) to determine a per claim limit of coverage for Technology Errors & Omissions.




STEP 3: Final Suggested Determination for Technology Errors & Omissions

Amount/Limits Required = a limit of no less than the amount noted within Step 1 or Step 2 above. The required limit of coverage is the greater of the two . (Hover mouse here for

examples.) (If more than $10,000,000 is required, contact Risk Management.)

How many records, including Protected Personal Information (PPI) (per state and federal law), are at risk? How many of these records could be damaged, destroyed, illegally accessed

or released? (Hover mouse here for definition of "record" and examples.)

$ 7,000,000

STEP 2: Assessment of damages due to a potential breach

THIS TOOL IS A GUIDELINE. If you conclude a different limit is appropriate, you may use it. Document your reasoning below.

7,000,000$

$ 5,000,000

$ 7,000,000


COMMERCIAL GENERAL LIABILITY:

X Required Not Required

Coverage shall be written on an occurrence basis in an amount of not less than per occurrence.

Annual aggregate limit shall not be less than $2,000,000 .

AUTOMOBILE LIABILITY:


Coverage shall be written on a combined single limit of not less than .

PROFESIONAL LIABILITY: (Technology Errors & Omissions)


per claim.

DAS Risk Management Suggested

Insurance Requirement Summary

IT Service Procurement

$1,000,000

$1,000,000

7,000,000$ Coverage shall be written on a per claim basis in an amount of not less than

8/8/2018 28 of 28

Tab 7 - Summary - Goods - use AFTER completing TAB 5 to save/print insurance requirements summary for documentation.

Tab 5 - Rate it - Goods - use AFTER completing Tab 3 to determine insurance requirements.

Table of Contents

Click one of the following links or click directly on a tab at the bottom of this document.

Tab 2 - Typical Cost Guide - use to learn typical costs associated with accidents and injuries.

Tab 3 - Assessment - Services & Goods - the most critical part of the risk assessment process; use to evaluate potential risk and cost.

Tab 4 - Rate it - Services - use AFTER completing Tab 3 to determine insurance requirements.

Tab 1 - Instructions - use the instructions to learn about the most critical steps in the risk assessment process.

Tab 6 - Summary - Services - use AFTER completing TAB 4 to save/print insurance requirements summary for documentation.


1.

2.

3.

4.

5.

Information Technology (IT) Services

a.

b.

Keep in mind: There can be subjectivity when determining insurance requirements. Results from this assessment

may be adjusted. Considerations:

Review the Popups icon (red triangle on the top left of this field). These Popups/comment boxes offer very

helpful tips along your Risk Assessment journey.

After reviewing the "Assessment - Service & Goods" tab, select the correct tab/worksheet based on the type of

procurement and complete the insurance coverage assessment.

State of Oregon - Insurance Coverage Assessment

Instructions

Using the "Assessment - Services & Goods" tab is essential and the most important part of the process. This

will provide guidance and a thought process for determining insurance requirements.

Before beginning, verify the correct contract insurance requirement template is being used. There are separate

templates for:

d. When/if deciding to adjust the insurance requirements above or below the worksheet results,

document the reason in the space provided.

a.

Use the thought process provided in the "Rate It" tab to arrive at a reasonable decision that can be

defended.

Conservative adjustments may result in greater insurance requirements (which provides more

protection, but more protection than what is needed can also increase costs and possibly eliminate

some potential contractors from the process).

Reasonably appropriate insurance requirements for use in the insurance requirement contract

template.

a.

b.

This tool is to assist in guiding Agencies to determine:

Potential damage to the State and to non-State parties, such as private citizens, due to the

contractor's activities;

Personal Service Contracts and Goods Contracts

b. Less conservative ratings may result in inadequate insurance.

c.


Injury to passenger. If one person typically $0 to $100,000. Some could be up to $100,000 to $500,000. Less frequent but possible to

be over $500,000.

Less frequent, but possible to be over $100,000.

Type of Accident/Claim: Bodily Injury

Guideline:

Typical Cost Guide

Injury to body part. Examples: Fall and injure knee; Knocked down and injure back.

Potential Cost:

Many are $0 to $100,000.

Rare, but possible to be over $500,000.

Type of Accident/Claim: Automobile Accident

Guideline: If contractor in accident, they could be liable for:

Other party’s vehicle.

Potential Cost:Potential Cost:

Total loss of other party’s vehicle average $2,000 to $25,000 (or more based on vehicle).

Bodily Injury to passengers in contractor's vehicle (such as a client or state employee) and/or passengers in the other part's vehicle.

If more than one passenger, multiply above dollar amounts by number of passengers.

Note: Though cases may be reserved at these levels, it is not an indication the state is actually liable.

Guideline: These are relatively infrequent cases, but when the allegations are made they can be high risk and expensive claims. Alleged abuse is to clients in

care, custody and control of the state and where the state has contracted with another party to provide services the state is responsible to provide.

Potential Cost:

Can often range from $0 to $50,000.

Occasionally $100,000 to $500,000.

Though rare, cases can exceed $1,000,000 up to $3,000,000.

Type of Accident/Claim: Abuse (physical, sexual, emotional) to clients


1.

2.

3.

Note:

NOTES:

What could go wrong?

Who could be harmed?

What can be harmed or damaged?

Could it cause an interruption to a function of state business or a loss of revenue to the State? If yes, for how long?

NOTES:

REFER TO "COST GUIDE" TAB FOR ASSISTANCE IN DETERMINING POTENTIAL COSTS

How severe could an injury be?

How badly damaged could property be?

NOTES:

What would be the financial impact to the state if a certain function could not operate or revenue was lost for a length of time as

determined under STEP 2?

Services & Goods - Complete an Assessment and Determine a RATING

Seek assistance of business and subject matter experts related to this procurement. Their knowledge will likely be necessary for completing

the risk assessment.

Instructions



STEP 3: What is the potential severity (how bad could it be - worse case scenario)?

STEP 2: Based on Scope of Service:



If things rarely go wrong, is it due to good fortune or good precautions/preventative measures?

NOTES:

SEVERITY - GENERAL GUIDE: Insignificant - Would not be serious. Potential outcome or cost of any property damage, injury or financial loss is less than $10,000.

Minor - Has potential to be serious. Potential outcome or cost of any property damage, injury or financial loss is less than $100,000.

Fair - Serious. Potential outcome or cost of any property damage, injury $100,000 to $500,000.

Major - Very serious. Potential outcome or cost of any property damage or injury or financial loss $500,000 to $2,000,000.

Catastrophic - Extremely serious or tragic. Potential cost of any property damage, injury or financial loss is OVER $2,000,000.

INSTRUCTIONS:

"Severity" - All things considered (per the thought process from STEPS 1 - 4), how severe might the loss or damage be in terms of dollars

(*see Severity - General Guide, above).?

"Likelihood" - All things considered (per the thought process from STEPS 1 - 4), how likely it is something will go wrong resulting in injury or

damage.


If something does go wrong, how likely is it that it will be identified and corrected early - before it becomes worse case scenario?

If something does go wrong, how likely is it that the damage or injury will be fairly minor compared to moderate, critical, or catastrophic

damage?

STEP 5: After completing the above thought process, use the below chart and determine a rating.

STEP 4: How likely is it that something will actually go wrong and how severe might it be?


Use this "Assessment - Services & Goods" worksheet to consider and evaluate risks to the State and to non-State parties (such as

private citizens) due to the contractor's activities (5 STEPS).

Enter notes as needed (as you feel appropriate to the situation) to help consider and evaluate the risks. For example, some

procurements are complex and may necessitate notes to help evaluate risk and to refer back to. Some procurements may have

low exposures and less note taking may be needed. Use the "NOTES:" sections at your option and discretion.

After evaluating the risks per STEP 1 through STEP 4, determine risk ratings per STEP 5. Then, select the "Rate it - Services" or

"Rate it - Goods" tab based on the procurement to complete the assessment and determine insurance requirements.



EXPANDING BOXES

AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA



AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

What could go wrong?

Who could be harmed?

What can be harmed or damaged?

Could it cause an interruption to a function of state business or a loss of revenue to the State? If yes, for how long?

REFER TO "COST GUIDE" TAB FOR ASSISTANCE IN DETERMINING POTENTIAL COSTS

How severe could an injury be?

How badly damaged could property be?

What would be the financial impact to the state if a certain function could not operate or revenue was lost for a length of time as

determined under STEP 2?

Services & Goods - Complete an Assessment and Determine a RATING

Seek assistance of business and subject matter experts related to this procurement. Their knowledge will likely be necessary for completing

the risk assessment.

Instructions



STEP 3: What is the potential severity (how bad could it be - worse case scenario)?

STEP 2: Based on Scope of Service:



If things rarely go wrong, is it due to good fortune or good precautions/preventative measures?

What preventative measures and/or precautions will be taken to prevent something from going wrong?


SEVERITY - GENERAL GUIDE: Insignificant - Would not be serious. Potential outcome or cost of any property damage, injury or financial loss is less than $10,000.

Minor - Has potential to be serious. Potential outcome or cost of any property damage, injury or financial loss is less than $100,000.

Fair - Serious. Potential outcome or cost of any property damage, injury $100,000 to $500,000.

Major - Very serious. Potential outcome or cost of any property damage or injury or financial loss $500,000 to $2,000,000.

Catastrophic - Extremely serious or tragic. Potential cost of any property damage, injury or financial loss is OVER $2,000,000.

INSTRUCTIONS:

1. First, go across the Severity line, selecting Insignificant, Minor, Fair, Major, or Catastrophic

2. Then, go down the column selecting Almost Certain, Likely, Possible, Unlikely, or Rare.


"Severity" - All things considered (per the thought process from STEPS 1 - 4), how severe might the loss or damage be in terms of dollars

(*see Severity - General Guide, above).?

"Likelihood" - All things considered (per the thought process from STEPS 1 - 4), how likely it is something will go wrong resulting in injury or

damage.


If something does go wrong, how likely is it that it will be identified and corrected early - before it becomes worse case scenario?

If something does go wrong, how likely is it that the damage or injury will be fairly minor compared to moderate, critical, or catastrophic

damage?

STEP 5: After completing the above thought process, use the below chart and determine a rating.

STEP 4: How likely is it that something will actually go wrong and how severe might it be?


CGL is required in most all contracts. It is difficult to imagine when CGL would NOT be required. It is perhaps the most important of all insurance policies in a contractual relationship.

It insures the Contractor has broad liability coverage for contractual activities and for completed operations. NOTE: CGL does NOT provide coverage for Professional Liability. If

Contractor's work is in a professional field requiring specialized knowledge and intellectual skills, Professional Liability will also be required.

Cause damage to state property?


Build, sell or install something that if defective could result in injury or property damage? (Hover mouse here for more information and examples.)



Based on the total score, require the contractor to have the following limits of Commercial General Liability

(CGL) insurance coverage:

Cause damage to a third party's property (including a client's or citizen's property)? (Hover mouse here for definition of "client", "citizen", "third party" and examples.)




or

1. If any one item receives a score of 4, then the suggested insurance requirement is as follows, whichever is

greater:

The amount indicated per the below chart based on the "Total Commercial General Liability

Score."


Services Procurements



Cause bodily injury to a third party (including injury to a client or citizen)? (Hover mouse here for definition of "client", "citizen", "third party" and examples.) No = 0, Low = 1, Moderate = 2, High = 3, Severe = 4, Extreme = 5

While performing the work, could the contractor:

The furnishing of labor, time or effort by a contractor or vendor.



RATING: If something goes wrong, how bad is the outcome likely to be?

(determine separately for each question; see "Rate It" tab for assistance.)





Cause a personal or advertising injury to the state, a client of the state, or a citizen? (Hover mouse here for more information and examples.)






Score:






3. If none of the individual items received a score of 4 or 5, then base insurance requirement on the

chart below.

$5,000,000 per occurrence with $10,000,000 aggregate, THIS TOOL IS A GUIDELINE. If you conclude a different limit is

appropriate, you may use it. Document your reasoning below.

Limits:


0

1 - 6

7 - 8

8+



Use when contracting with any type of medical provider and/or medical facility. In almost all cases, CGL coverage will also be required. Hover mouse here for examples of when to

use.

Setting Limits:

Transport by bus/van 15+ clients or employees per vehicle?

If YES, require Auto Liability Coverage with Combined Single limit of

$5,000,000. If NO, continue with below questions and determine

insurance requirements based on the total score.



No = 0, Limited = 1, Often = 2, Frequent = 3

No = 0, Limited = 1, Often = 2, Frequent = 3

Based on the score, require the contractor to have the following limits of Automobile Liability Coverage:

PROFESSIONAL LIABILITY: (For Medical and Health Services) Link for more Professional Liability information


Total Automobile Liability Score:


How Often?


Use a vehicle to accomplish the work? (Hover mouse here for definitions of: Limited, Often, Frequent)

No = 0, Limited = 1, Often = 2, Frequent = 3Transport state property, clients, or employees? (Hover mouse here for definitions of: Limited, Often, Frequent)

No automobile insurance coverage required Auto Liability Coverage required with $1,000,000 combined single

limit


Travel to or from state locations? (Hover mouse here for definitions of: Limited, Often, Frequent)

THIS TOOL IS A GUIDELINE. If you conclude a different limit is


Limits: Score:




https://www.oregon.gov/das/Risk/Pages/InsclausesProfErrorOmis.aspx#


1.

2.

$ 1,000,000

$ 3,000,000

Enter Per Claim Amount:

Enter Aggregate Amount:

Use when Contractor's work is in a professional field requiring specialized knowledge and intellectual skills. Examples include: accountants, actuaries, educators, attorneys, engineers,

third party administrators, etc. DO NOT use in trade services contracts limited to physical or manual work. NOTE: This coverage does not cover exposures under Commercial General

Liability (GCL). In almost all cases CGL coverage will also be required.

See above for medical and health services professional liability requirements.

See IT risk assessment tool for determining insurance requirements regarding IT Services, SaaS and System Acquisition.

$2,000,000 per claim with $4,000,000 aggregateFor Hospitals:

In performing the work, will the contractor:

PROFESSIONAL LIABILITY: (other than IT Services) Link for more Professional Liability information

Professional Liability Coverage Amount Selected:

For all other medical and health

services & providers: $1,000,000 per claim with $3,000,000 aggregate

Total Professional Liability Score:

NO = 0, YES = 2


NO = 0, YES = 1

Design a structure, building, or road (not including a bridge)?

Design a bridge?

RATING:

Based on the score, require the contractor to have the following limits of Professional Liability (PL)

coverage:

Handle confidential, private or protected information? NO = 0, YES = 1

None = 0, Low = 1, Moderate = 2,

High = 3, Severe or Extreme = 4 If contractor makes an error or omission in performing this work, how severe is the likely outcome? (TIP: See

"Rate It" tab to determining rating of Low, Moderate, High, or Extreme.)

Provide professional advice, instructions, or services?

NO = 0, YES = 1

Provide administrative services (such as third party claim administration services for self-insurance programs; health plan and/or

retirement plan administration. For example: health plan or retirement plan administrative services for PEBB or PERS or similar

services.)?

Providing Actuarial Services? (Hover mouse here for more information.)

NO = 0, YES = 3

NO = 0, YES = 1

NO = 0, YES = 4

Infringe on a copyright, design, or trademark? (Hover mouse here for more information.)




Score:

0

1 - 5

5 - 7

7 - 9+



PL required: $2,000,000 per claim with $4,000,000 aggregate

Limits:

PL required: $5,000,000 per claim with $10,000,000 aggregate

Professional Liability coverage is not required.

PL required: $1,000,000 per claim with $2,000,000 aggregatePL required: $1,000,000 per claim with $2,000,000 aggregate


$ 1,000,000 Network Security and Privacy Liability Coverage Amount Suggested:

Use when contractor will be using, removing, hauling storing, or disposing of hazardous materials. (Hover mouse here for definitions of hazardous material.)

Total Pollution Liability Score:

SEE PROJECT MANAGER: if unsure about rating this exposure OR if rating results in required limits of $5M or more (Risk Management is also

available as a resource).

NO = 0, YES = 1

How many records, including protected personal information (per state and federal law), are at risk? How many of these records could be damaged, destroyed, illegally accessed or

released? (Hover mouse here for definition of "record" and examples.)

Work in, around, or over (such as on a bridge) water, wells, wetlands, endangered species, or other protected areas?

NETWORK SECURITY AND PRIVACY LIABILITY:

NO = 0, YES = 1

NOTE: The below scores overlap, allowing some flexibility in selecting insurance requirements based on the specific situation. Use the matrix at the bottom of the "Rate it - Services & Goods" worksheet as a guide. For example, a lower limit may be appropriate if the likelihood is "Unlikely" or "Rare" and a higher limit may be appropriate if the likelihood is "Likely" or "Almost Certain".

POLLUTION LIABILITY: Link for more Pollution Liability information

In performing the work, will contractor:

Apply, use or handle hazardous material on the job site (including removal and/or abatement of hazardous material)?

RATING:

Use when in the course of providing contracted Services , the Contractor has access to (or utilizes) agency or client protected/private data. Examples may include: administrative

services for employee benefit programs (such as health insurance claims or enrollment services; or administration of retirement programs); or when data is being electronically

accessed by or submitted to the Contractor (such as for payroll services).

NOTE: This applies to contracts for Services that happen to involve use of/access to private data in the course of providing those contracted services. This DOES NOT apply to SaaS or

System Acquisition contracts (AKA: IT contracts). Risk assessments to determine insurance requirements for SaaS and System Acquisition contracts should be completed using the IT

Services tool.

NO = 0, YES = 1

NO = 0, YES = 2

Store hazardous material on the job site?

Transport hazardous material (other than substances that are of the normal functioning of a vehicle)?

Based on the score, require the contractor to have the following limits of Pollution Liability Coverage:

Number of records = (insert number

in cell to the right) 1,000

If contractor makes a mistake performing this work, rate the potential outcome. TIP: See

"Rate It" tab if assistance is needed to determine rating of Low, Moderate, High, or Extreme. Also: Consider if

potential spill or release would be in or around water, endangered species or protected areas.

None = 0, Low = 1, Moderate = 2,

High = 3, Severe = 4, Extreme = 5


https://www.oregon.gov/das/Risk/Pages/InsclausesPollutLiab.aspx#

https://www.oregon.gov/das/Risk/Pages/InsclausesPollutLiab.aspx#

Score: Limits:

0 Pollution Liability coverage NOT REQUIRED

1 - 4

4 - 6

6 - 8

8+


appropriate, you may use it. Document your reasoning below. Pollution Liability required: $500,000 per occurrence with $1,000,000 aggregate

Pollution Liability required: $5,000,000 per occurrence with $10,000,000 aggregate





Enter Directors and Officers Coverage Amount Selected:

CRIME PROTECTION COVERAGE: EMPLOYEE DISHONESTY or FIDELITY BOND: Link to more Crime Protection Coverage information

• Lack of organizational governance.

When granting money, for example, this coverage helps provide a remedy if granted funds are misused. If contracting with a non-profit for services this coverage helps provide some

financial stability if the non-profit’s funds are misused and no longer available for maintaining operations (which is necessary for providing contracted services).

Setting Limits:

Typical minimum requirement: $1,000,000 per claim. This typical minimum requirement is usually appropriate. HOWEVER, based on the size of the organization and funds at risk,

higher amounts can be requested.

ADDITIONAL COVERAGES: The following are non-typical coverages that may be required based on the exposures from specialized contracted

services. Review to confirm if they are needed.

Use when granting money. May also consider when contracting with a non-profit for services. When granting money, also see CRIME PROTECTION COVERAGE: EMPLOYEE

DISHONESTY or FIDELITY BOND (below).

1. When Granting Money: If money granted exceeds $1,000,000 consider a limit equal to the amount being granted. If this exceeds $5,000,000, contact Risk

Management.

• Breach of fiduciary duty resulting in financial loss;

• Misuse of the organization’s funds;

2. When contracting with a non-profit for services: For contractors (who are non-profits) with annual revenues of:

Up to $10,000,000 - ask for limits of at least $1,000,000;

$10,000,000 to $25,000,000 - asks for limits of at least $2,000,000;

DIRECTORS AND OFFICERS COVERAGE:

$ -

What it covers / why it's important: Directors and Officers (D&O) insurance offers insurance coverage for the Directors and Officers of non-profit, for-profit, and privately held

businesses. It helps protect them from losses which may arise from managerial decisions that may have adverse financial consequences. This may include:

$25,000,000 to $50,000,000 - ask for limits of at least $5,000,000;

Contract Risk Management when considering limits greater then $5,000,000.


https://www.oregon.gov/das/Risk/Pages/InsclausesCrimeProtCov.aspx#

https://www.oregon.gov/das/Risk/Pages/InsclausesCrimeProtCov.aspx#

Score:

0

1 - 2

Use when contractor (or contractor employees) (or grantee) is handling granted money, or your money, or has access to your negotiable securities or other valuable property (such as

computers or other personal property) or data. Particularly important when the contractor has unsupervised access to state property, including access during non-business hours or

when granting money to a grantee.

NO = 0, YES = 1

Have access to substantially valuable tangible moveable property? NO = 0, YES = 1

Limits:

Employee Dishonesty or Fidelity Bond coverage NOT REQUIRED

Have access to granted money, your money or negotiable securities?

Total Crime Protection Coverage Score:

Employee Dishonesty or Fidelity Bond coverage REQUIRED in an amount equal to the maximum exposure.

RATING:

Based on the score and the maximum exposure, require the contractor to have the following Employee Dishonesty

coverage:

$ - Enter Crime Protection Coverage Amount Selected:

(maximum dollar amount exposure that could be stolen by contractor or their employees)

In performing the work, could contractor or their employees:


1.

2.

3.

4.

Enter Motor Carrier Cargo Liability Coverage Amount Selected:

Use when contracting for transit by a common carrier or trucking entity to cover state property during the transit and while in the care, custody, or control of the carrier.

To further ensure adequate coverage, ask of the carrier the total value of the full load that will be hauled. Request an insurance requirement in an amount at least equal

to the value of the full load (our property may be included with other property being hauled on the same load).

Minimum legal requirement is $10,000.

Typical minimum requirement: $1,000,000 per occurrence; aggregate limit $3,000,000. This typical minimum requirement is usually appropriate. HOWEVER:

3. Has the contractor been in business for a short or long period of time? How much experience do they have?

MOTOR CARRIER CARGO LIABILITY: Link for more Motor Carrier Cargo Liability information

Typical industry standard is $100,000.

5. Does the contractor currently carry Physical Abuse and Sexual Molestation insurance? If not, why not? Are they unable to obtain such coverage?

Use when contracting for services that will involve a contractor having any kind of custodial care over a client of the state (client meaning someone in the care, custody, control of the

state).

Additional limits can be requested up to, for example: $3,000,000 per occurrence and $6,000,000 aggregate, or $5,000,000 per occurrence and $10,000,000 aggregate, depending

upon the exposure. To determine if more than the typical minimum requirement should be requested consider the following:

Examples of services contracted with where this coverage should be considered includes, but is not limited to: Day care centers, assisted living facilities, long term care and/or skilled

nursing facilities, training centers, group homes (that are contracted with), etc.

PHYSICAL ABUSE AND SEXUAL MOLESTATION COVERAGE: Link to more Physical Abuse and Sexual Molestation Coverage information

1. Does the contractor have sound policies and procedures regarding: hiring/screening/background checks of potential employees; preventative measures for avoiding

potential misconduct; proper supervising/monitoring of employees; investigation and reporting of any alleged incident?



$ -

It is appropriate to ask for $100,000, but know the value of the property that will be in transit to ensure this limit is adequate.

Setting Limits:

$ 1,000,000

$ 3,000,000

Enter Per Occurrence Amount:

Physical Abuse and Sexual Molestation Coverage Amount Selected:

2. Will such (or similar) requirements noted above be included in the contract?

4. Does the contractor have a history of such claims being made against them?

Setting Limits:

Enter Aggregate Amount:


https://www.oregon.gov/das/Risk/Pages/InsclausesTrckrCov.aspx#

https://www.oregon.gov/das/Risk/Pages/InsclausesTrckrCov.aspx#

https://www.oregon.gov/das/Risk/Pages/InsclausesPhysAbuSexMolest.aspx#

https://www.oregon.gov/das/Risk/Pages/InsclausesPhysAbuSexMolest.aspx#

>

>

>

>

>

>

>

>

1.

2.

3.

4.

AIRCRAFT LIABILITY: Link for more Aircraft Liability information

For single engine turbine aircraft - no less than $10,000,000 combined single limit.

For multi engine turbine aircraft - no less than $25,000,000 combined single limit.

For single engine piston aircraft - no less than $2,000,000 combined single limit.

Use when the contract involves the operation of an aircraft (including helicopters). If the contract involves the aerial application of any chemicals, fertilizer, seed, etc. also require

Aircraft Aerial Application Liability insurance (see below). If the contract involves carrying cargo, also require Air Cargo Insurance (see below).

Setting Limits WHEN CARRYING PASSENGERS or WHEN CARRYING CARGO ONLY BUT WILL BE FLYING OVER POPULATED AREAS:

DRONE / UNMANNED AIRCRAFT SYSTEMS (UAS) / UNMANNED AERIAL VEHICLE (UAV) LIABILITY:

Setting Limits: Coverage is available in $1M increments up to (or possibly in excess of) $25,000,000. HOWEVER, limits should be determined through the risk assessment completed

on the prior page. Suggested limits with additional considerations are provided here. IMPORTANT: See STEP 5 of Risk Assessment on prior page.

For multi engine piston aircraft - no less than $10,000,000 combined single limit.

Remoteness of flight territory (making it difficult for fire-fighting response).

Enter Drone Liability Coverage Amount Selected: $ -

Wet season or dry/fire season (conditions where threat of fire increases if the drone crashes). Cost of forest and/or wildland firefighting can be extreme.

Use when the contract involves the operation of a drone (also known as: UAS; UAV).

Flying drone (especially gas powered drone) over wetlands.

If through the risk assessment the potential severity of the risk has been determined to be "Insignificant" - no less than $1,000,000 combined single limit.

If through the risk assessment the potential severity of the risk has been determined to be "Minor" - no less than $1,000,000 combined single limit.

If through the risk assessment the potential severity of the risk has been determined to be "Fair" - no less than $1,000,000 or $2,000,000 combined single limit, depending

on likelihood and other mitigation factors in place.

If through the risk assessment the potential severity of the risk has been determined to be "Major" - no less than $2,000,000 to $5,000,000 combined single limit,

depending on likelihood and other mitigation factors in place.

ADDITIONAL CONSIDERATIONS FOR DETERMINING POTENTIAL SEVERITY AND INSURANCE LIMIT

If through the risk assessment the potential severity of the risk has been determined to be "Catastrophic" - no less than $5,000,000 and up to $25,000,000 combined

single limit, depending on likelihood and other mitigation factors in place. Contact Risk Management to review.

Will the flight be over urban, high automobile traffic, or rural areas? Exposure may be lower in rural areas (provided low risk of fire or pollution, see below).

Flights over wildland and forested areas also consider:


https://www.oregon.gov/das/Risk/Pages/InsclausesAircraft.aspx#


1.

2.

3.

4.

1.

2.

1.

2.

3.

Aircraft Aerial Application Liability Coverage Amount Selected:


Setting Limits WHEN CARRYING CARGO ONLY AND FLYING ONLY OVER REMOTE AREAS WITH LITTLE OR NO POPULATION:


$300,000 combined single limit


Minimum Requirement: No less than: $100,000 per person and $300,000 per occurrence for bodily injury and $100,000 for property damage.

Use when contracting for air transport of cargo (goods).


Setting Limits:

Request limits of at least the value of the property that will be in transit.



AIR CARGO LIABILITY INSURANCE:

Enter Aircraft Liability Coverage Amount Selected:

AIRCRAFT AERIAL APPLICATION LIABILITY: Link for more Aircraft Aerial Application Liability information

The following coverage is listed in order of preference. Ask for $500K CSL. If it is not available or adds significant cost, the other coverage levels are acceptable. However, ask the

contractor if they have a claim history affecting their ability to attain higher coverage at an affordable cost. Their response may impact your overall evaluation of the contractor.

Setting Limits:

Use in addition to Aircraft Liability whenever a contract involves the aerial application of chemicals, fertilizers or seeds, etc.


Enter Air Cargo Liability Coverage Amount Selected:

$ -

$ -

Enter number 1, 2 or 3 from selection above: -




1.

2.

1.

2.

3.

1.

2

*Total vehicles includes state vehicles plus all other vehicles in the care, custody, or control of the shop at any one time.

If more than 100 total vehicles* are in the care, custody or control of the shop at any one time: no less than $5,000,000 combined single limit.

Use when contracting on an agency or statewide basis for services involving auto dealers, service stations, auto repair shops and other related auto business for repairs, maintenance

and/or servicing of vehicles. Garage Liability covers the legal liability of such businesses for claims of bodily injury and property damage arise out of their business operation, including

premises liability (accidents on their premises) and products liability.

If more than 100 total vehicles* are in the care, custody or control of the shop at any one time: no less than $5,000,000 per location


BAILEE'S COVERAGE: Link for more Bailee's Coverage information

Setting Limits:

GARAGEKEEPERS LEGAL LIABILITY: Link for more Garagekeepers Legal Liability information

Setting Limits:

If 50 or fewer total vehicles* are in the care, custody or control of the shop at any one time: no less than $1,000,000 per location

If 50 - 100 total vehicles* are in the care, custody or control of the shop at any one time: no less than $2,000,000 per location

Use when contracting to leave vehicles in the care, custody or control, of an auto related business including garage lot operators. This insurance covers the vehicle(s) left on the

premises primarily for storage or parking (Use Garage Liability if vehicle being left with contractor for repairs, servicing, etc.).

Minimum coverage limits should at least be equal to what it would cost to recreate, restore, or replace the property being entrusted to the contractor, including research.

Use when state property is being entrusted to and will be under the care, custody and control of the contractor (Bailee) such as for storage or servicing. This can include anything

from art to valuable papers to dry cleaning entrusted to the contractor while it is undergoing repair.

To further ensure adequate coverage, ask of the contractor the total value of all property of others entrusted to the contractor at any one time. Request an insurance

requirement in an amount equal to this value.

$ -

If 100 or fewer total vehicles* are in the care, custody or control of the shop at any one time: no less than $2,000,000 combined single limit.

GARAGE LIABILITY: Link for more Garage Liability information

Setting Limits:

NOTE: Because Garage Liability includes Garage Keepers Legal Liability (see below) when vehicles are left with the contractor for service, repairs, etc., suggested coverage and limits

should be adjusted based on the number of vehicles in the care, custody or control of the shop at any one time.

$ - Enter Garage Liability Coverage Amount Selected:

Enter Garagekeepers Legal Liability Coverage Amount Selected:


https://www.oregon.gov/das/Risk/Pages/InsclausesBaileesCov.aspx#

https://www.oregon.gov/das/Risk/Pages/InsclausesBaileesCov.aspx#

https://www.oregon.gov/das/Risk/Pages/InsclausesGarage.aspx#




Setting Limits: If contracting for this service, contact Risk Management to assist in determining appropriate coverage(s) and limits.

MARINE PROTECTION LIABILITY: Link for more Marine Protection Liability information

$ - Enter Bailee's Coverage Amount Selected:

Use when contract services involve the use of vessels on waters. (Hover mouse here for more information)Use when contract services involve the use of vessels on waters. (Hover mouse here for more information)

Marine Protection Liability Coverage Amount Selected: $ -


https://www.oregon.gov/das/Risk/Pages/InsclausesMarine.aspx#

https://www.oregon.gov/das/Risk/Pages/InsclausesMarine.aspx#

Score

0

1

0

3

1

0

5


It insures the Contractor has broad liability coverage for contractual activities and for completed operations. NOTE: CGL does NOT provide coverage for Professional Liability. If

Contractor's work is in a professional field requiring specialized knowledge and intellectual skills, Professional Liability will also be required.



Services Procurements

The furnishing of labor, time or effort by a contractor or vendor.







Score

1

0

0

1



Use when contracting with any type of medical provider and/or medical facility. In almost all cases, CGL coverage will also be required. Hover mouse here for examples of when to

use.

Setting Limits:

If YES, require Auto Liability Coverage with Combined Single limit of

$5,000,000. If NO, continue with below questions and determine

insurance requirements based on the total score.


PROFESSIONAL LIABILITY: (For Medical and Health Services) Link for more Professional Liability information


Auto Liability Coverage required with $1,000,000 combined single

limit




Score

0

$ 1,000,000

$ 3,000,000

Use when Contractor's work is in a professional field requiring specialized knowledge and intellectual skills. Examples include: accountants, actuaries, educators, attorneys, engineers,

third party administrators, etc. DO NOT use in trade services contracts limited to physical or manual work. NOTE: This coverage does not cover exposures under Commercial General

Liability (GCL). In almost all cases CGL coverage will also be required.

See above for medical and health services professional liability requirements.

See IT risk assessment tool for determining insurance requirements regarding IT Services, SaaS and System Acquisition.

$2,000,000 per claim with $4,000,000 aggregate

PROFESSIONAL LIABILITY: (other than IT Services) Link for more Professional Liability information

$1,000,000 per claim with $3,000,000 aggregate



Score

0

$ 1,000,000

Use when contractor will be using, removing, hauling storing, or disposing of hazardous materials. (Hover mouse here for definitions of hazardous material.)

SEE PROJECT MANAGER: if unsure about rating this exposure OR if rating results in required limits of $5M or more (Risk Management is also

available as a resource).

How many records, including protected personal information (per state and federal law), are at risk? How many of these records could be damaged, destroyed, illegally accessed or

released? (Hover mouse here for definition of "record" and examples.)


NOTE: The below scores overlap, allowing some flexibility in selecting insurance requirements based on the specific situation. Use the matrix at the bottom of the "Rate it - Services & Goods" worksheet as a guide. For example, a lower limit may be appropriate if the likelihood is "Unlikely" or "Rare" and a higher limit may be appropriate if the likelihood is "Likely" or "Almost Certain".

POLLUTION LIABILITY: Link for more Pollution Liability information

Use when in the course of providing contracted Services , the Contractor has access to (or utilizes) agency or client protected/private data. Examples may include: administrative

services for employee benefit programs (such as health insurance claims or enrollment services; or administration of retirement programs); or when data is being electronically

accessed by or submitted to the Contractor (such as for payroll services).

NOTE: This applies to contracts for Services that happen to involve use of/access to private data in the course of providing those contracted services. This DOES NOT apply to SaaS or

System Acquisition contracts (AKA: IT contracts). Risk assessments to determine insurance requirements for SaaS and System Acquisition contracts should be completed using the IT

Services tool.


CRIME PROTECTION COVERAGE: EMPLOYEE DISHONESTY or FIDELITY BOND: Link to more Crime Protection Coverage information

• Lack of organizational governance.

When granting money, for example, this coverage helps provide a remedy if granted funds are misused. If contracting with a non-profit for services this coverage helps provide some

financial stability if the non-profit’s funds are misused and no longer available for maintaining operations (which is necessary for providing contracted services).

Setting Limits:

Typical minimum requirement: $1,000,000 per claim. This typical minimum requirement is usually appropriate. HOWEVER, based on the size of the organization and funds at risk,

higher amounts can be requested.

ADDITIONAL COVERAGES: The following are non-typical coverages that may be required based on the exposures from specialized contracted

services. Review to confirm if they are needed.

Use when granting money. May also consider when contracting with a non-profit for services. When granting money, also see CRIME PROTECTION COVERAGE: EMPLOYEE

DISHONESTY or FIDELITY BOND (below).

1. When Granting Money: If money granted exceeds $1,000,000 consider a limit equal to the amount being granted. If this exceeds $5,000,000, contact Risk

Management.

• Breach of fiduciary duty resulting in financial loss;

• Misuse of the organization’s funds;

2. When contracting with a non-profit for services: For contractors (who are non-profits) with annual revenues of:

Up to $10,000,000 - ask for limits of at least $1,000,000;

$10,000,000 to $25,000,000 - asks for limits of at least $2,000,000;

DIRECTORS AND OFFICERS COVERAGE:

$ -

What it covers / why it's important: Directors and Officers (D&O) insurance offers insurance coverage for the Directors and Officers of non-profit, for-profit, and privately held

businesses. It helps protect them from losses which may arise from managerial decisions that may have adverse financial consequences. This may include:

$25,000,000 to $50,000,000 - ask for limits of at least $5,000,000;

Contract Risk Management when considering limits greater then $5,000,000.


Score

0

Use when contractor (or contractor employees) (or grantee) is handling granted money, or your money, or has access to your negotiable securities or other valuable property (such as

computers or other personal property) or data. Particularly important when the contractor has unsupervised access to state property, including access during non-business hours or

when granting money to a grantee.

$ -


Use when contracting for transit by a common carrier or trucking entity to cover state property during the transit and while in the care, custody, or control of the carrier.



Minimum legal requirement is $10,000.

Typical minimum requirement: $1,000,000 per occurrence; aggregate limit $3,000,000. This typical minimum requirement is usually appropriate. HOWEVER:

3. Has the contractor been in business for a short or long period of time? How much experience do they have?

MOTOR CARRIER CARGO LIABILITY: Link for more Motor Carrier Cargo Liability information

Typical industry standard is $100,000.

5. Does the contractor currently carry Physical Abuse and Sexual Molestation insurance? If not, why not? Are they unable to obtain such coverage?

Use when contracting for services that will involve a contractor having any kind of custodial care over a client of the state (client meaning someone in the care, custody, control of the

state).

Additional limits can be requested up to, for example: $3,000,000 per occurrence and $6,000,000 aggregate, or $5,000,000 per occurrence and $10,000,000 aggregate, depending

upon the exposure. To determine if more than the typical minimum requirement should be requested consider the following:

Examples of services contracted with where this coverage should be considered includes, but is not limited to: Day care centers, assisted living facilities, long term care and/or skilled

nursing facilities, training centers, group homes (that are contracted with), etc.

PHYSICAL ABUSE AND SEXUAL MOLESTATION COVERAGE: Link to more Physical Abuse and Sexual Molestation Coverage information





$ -

It is appropriate to ask for $100,000, but know the value of the property that will be in transit to ensure this limit is adequate.

Setting Limits:

$ 1,000,000

$ 3,000,000

2. Will such (or similar) requirements noted above be included in the contract?

4. Does the contractor have a history of such claims being made against them?

Setting Limits:


AIRCRAFT LIABILITY: Link for more Aircraft Liability information




Use when the contract involves the operation of an aircraft (including helicopters). If the contract involves the aerial application of any chemicals, fertilizer, seed, etc. also require

Aircraft Aerial Application Liability insurance (see below). If the contract involves carrying cargo, also require Air Cargo Insurance (see below).

Setting Limits WHEN CARRYING PASSENGERS or WHEN CARRYING CARGO ONLY BUT WILL BE FLYING OVER POPULATED AREAS:


Setting Limits: Coverage is available in $1M increments up to (or possibly in excess of) $25,000,000. HOWEVER, limits should be determined through the risk assessment completed

on the prior page. Suggested limits with additional considerations are provided here. IMPORTANT: See STEP 5 of Risk Assessment on prior page.


Remoteness of flight territory (making it difficult for fire-fighting response).

$ -

Wet season or dry/fire season (conditions where threat of fire increases if the drone crashes). Cost of forest and/or wildland firefighting can be extreme.

Use when the contract involves the operation of a drone (also known as: UAS; UAV).

Flying drone (especially gas powered drone) over wetlands.

If through the risk assessment the potential severity of the risk has been determined to be "Insignificant" - no less than $1,000,000 combined single limit.

If through the risk assessment the potential severity of the risk has been determined to be "Minor" - no less than $1,000,000 combined single limit.

If through the risk assessment the potential severity of the risk has been determined to be "Fair" - no less than $1,000,000 or $2,000,000 combined single limit, depending

on likelihood and other mitigation factors in place.

If through the risk assessment the potential severity of the risk has been determined to be "Major" - no less than $2,000,000 to $5,000,000 combined single limit,

depending on likelihood and other mitigation factors in place.

ADDITIONAL CONSIDERATIONS FOR DETERMINING POTENTIAL SEVERITY AND INSURANCE LIMIT

If through the risk assessment the potential severity of the risk has been determined to be "Catastrophic" - no less than $5,000,000 and up to $25,000,000 combined

single limit, depending on likelihood and other mitigation factors in place. Contact Risk Management to review.

Will the flight be over urban, high automobile traffic, or rural areas? Exposure may be lower in rural areas (provided low risk of fire or pollution, see below).

Flights over wildland and forested areas also consider:



Setting Limits WHEN CARRYING CARGO ONLY AND FLYING ONLY OVER REMOTE AREAS WITH LITTLE OR NO POPULATION:




Minimum Requirement: No less than: $100,000 per person and $300,000 per occurrence for bodily injury and $100,000 for property damage.

Use when contracting for air transport of cargo (goods).


Setting Limits:

Request limits of at least the value of the property that will be in transit.



AIR CARGO LIABILITY INSURANCE:

AIRCRAFT AERIAL APPLICATION LIABILITY: Link for more Aircraft Aerial Application Liability information

The following coverage is listed in order of preference. Ask for $500K CSL. If it is not available or adds significant cost, the other coverage levels are acceptable. However, ask the

contractor if they have a claim history affecting their ability to attain higher coverage at an affordable cost. Their response may impact your overall evaluation of the contractor.

Setting Limits:

Use in addition to Aircraft Liability whenever a contract involves the aerial application of chemicals, fertilizers or seeds, etc.


$ -

$ -

-



If more than 100 total vehicles* are in the care, custody or control of the shop at any one time: no less than $5,000,000 combined single limit.

Use when contracting on an agency or statewide basis for services involving auto dealers, service stations, auto repair shops and other related auto business for repairs, maintenance

and/or servicing of vehicles. Garage Liability covers the legal liability of such businesses for claims of bodily injury and property damage arise out of their business operation, including

premises liability (accidents on their premises) and products liability.

If more than 100 total vehicles* are in the care, custody or control of the shop at any one time: no less than $5,000,000 per location


BAILEE'S COVERAGE: Link for more Bailee's Coverage information

Setting Limits:

GARAGEKEEPERS LEGAL LIABILITY: Link for more Garagekeepers Legal Liability information

Setting Limits:

If 50 or fewer total vehicles* are in the care, custody or control of the shop at any one time: no less than $1,000,000 per location

If 50 - 100 total vehicles* are in the care, custody or control of the shop at any one time: no less than $2,000,000 per location

Use when contracting to leave vehicles in the care, custody or control, of an auto related business including garage lot operators. This insurance covers the vehicle(s) left on the

premises primarily for storage or parking (Use Garage Liability if vehicle being left with contractor for repairs, servicing, etc.).

Minimum coverage limits should at least be equal to what it would cost to recreate, restore, or replace the property being entrusted to the contractor, including research.

Use when state property is being entrusted to and will be under the care, custody and control of the contractor (Bailee) such as for storage or servicing. This can include anything

from art to valuable papers to dry cleaning entrusted to the contractor while it is undergoing repair.

To further ensure adequate coverage, ask of the contractor the total value of all property of others entrusted to the contractor at any one time. Request an insurance

requirement in an amount equal to this value.

$ -

If 100 or fewer total vehicles* are in the care, custody or control of the shop at any one time: no less than $2,000,000 combined single limit.

GARAGE LIABILITY: Link for more Garage Liability information

Setting Limits:

NOTE: Because Garage Liability includes Garage Keepers Legal Liability (see below) when vehicles are left with the contractor for service, repairs, etc., suggested coverage and limits

should be adjusted based on the number of vehicles in the care, custody or control of the shop at any one time.

$ -


Setting Limits: If contracting for this service, contact Risk Management to assist in determining appropriate coverage(s) and limits.

MARINE PROTECTION LIABILITY: Link for more Marine Protection Liability information

$ -

Use when contract services involve the use of vessels on waters. (Hover mouse here for more information)Use when contract services involve the use of vessels on waters. (Hover mouse here for more information)

$ -


1.

2.

3.

a.

b.

c.

d.

Goods Procurements

Considerations:

Anything purchased other than services or real property.

If we are responsible to arrange/provide shipping of the Good and will be using an outside delivery company, a Services contract should be put in place with

that outside delivery company that will include, among other things, auto liability and motor carrier cargo liability.

Additional SERVICES may include shipping of the Good. Here is some insurance requirement guidance related to shipment of the Good.

If the contractor is responsible for shipping the Good and we do not take ownership/title of the Good until it is received, and the contractor uses an outside

delivery company/motor carrier to deliver the Good, we do not need to request auto liability or motor carrier cargo liability related to shipment of the Good.

The contractor remains responsible for the Good. If the Good is damaged during shipping, we will still hold the contractor responsible for the Good (and the

contractor can make a separate claim against the delivery company).

Before beginning this assessment, use internal guidelines or consult with your supervisor to determine if a contract with insurance requirements will be implemented,

then proceed with this assessment.

This assessment worksheet is for GOODS only. If SERVICES are included in the contract, such as service/maintenance of the GOOD, then additional insurance

requirements will likely apply. Use the "Services" worksheet to assess those risks and determine those additional insurance requirements.

If the contractor will be shipping the Good on their own truck/vehicle, additional required coverage will include auto liability and motor carrier cargo liability

(regardless of when we take ownership/title of the Good.) See Services worksheet to evaluate these coverage needs.

If we will be using our own state employees and vehicle to pick-up and deliver the Good, we do not need to request auto liability or motor carrier liability

related to shipment of the Good.


Score:





REMINDER: This assessment worksheet is for GOODS only. If SERVICES are included in the contract, such as service/maintenance of the GOOD, then

additional insurance requirements will likely apply. Use the "Services" worksheet to assess those risks and determine those additional insurance

requirements.


Cause bodily injury to a third party (including injury to a client or citizen)? (Hover mouse here for definition of "client", "citizen", "third party" and examples.)

Cause damage to a third party's property (including a client's or citizen's property)? (Hover mouse here for definition of "client", "citizen", "third party" and examples.) No = 0, Low = 1, Moderate = 2, High = 3, Severe = 4, Extreme = 5

3. If none of the individual items received a score of 4 or 5, then base insurance requirement on the chart

below.

1. If any one item receives a score of 4, then the suggested insurance requirement is as follows, whichever

is greater:


The amount indicated per the below chart based on the "Total Commercial General Liability

Score."




It insures the Contractor has broad liability coverage for contractual activities and for completed operations.







Limits:

Could the Good provided by the contractor, if defective or if it malfunctions:

RATING: If something goes wrong, how bad is the outcome

likely to be? (determine separately for each question; see

"Rate It" tab for assistance.)

Cause damage to state property? (Hover mouse here for examples.)



or

Based on the total score, require the contractor to have the following limits of Commercial General

Liability (CGL) insurance coverage:




Goods Procurements

Anything purchased other than services or real property.

If we are responsible to arrange/provide shipping of the Good and will be using an outside delivery company, a Services contract should be put in place with

that outside delivery company that will include, among other things, auto liability and motor carrier cargo liability.

Additional SERVICES may include shipping of the Good. Here is some insurance requirement guidance related to shipment of the Good.

If the contractor is responsible for shipping the Good and we do not take ownership/title of the Good until it is received, and the contractor uses an outside

delivery company/motor carrier to deliver the Good, we do not need to request auto liability or motor carrier cargo liability related to shipment of the Good.

The contractor remains responsible for the Good. If the Good is damaged during shipping, we will still hold the contractor responsible for the Good (and the

contractor can make a separate claim against the delivery company).

Before beginning this assessment, use internal guidelines or consult with your supervisor to determine if a contract with insurance requirements will be implemented,

then proceed with this assessment.

This assessment worksheet is for GOODS only. If SERVICES are included in the contract, such as service/maintenance of the GOOD, then additional insurance

requirements will likely apply. Use the "Services" worksheet to assess those risks and determine those additional insurance requirements.

If the contractor will be shipping the Good on their own truck/vehicle, additional required coverage will include auto liability and motor carrier cargo liability

(regardless of when we take ownership/title of the Good.) See Services worksheet to evaluate these coverage needs.

If we will be using our own state employees and vehicle to pick-up and deliver the Good, we do not need to request auto liability or motor carrier liability

related to shipment of the Good.


Score

0

REMINDER: This assessment worksheet is for GOODS only. If SERVICES are included in the contract, such as service/maintenance of the GOOD, then

additional insurance requirements will likely apply. Use the "Services" worksheet to assess those risks and determine those additional insurance

requirements.


It insures the Contractor has broad liability coverage for contractual activities and for completed operations.










AUTOMOBILE LIABILITY:


Coverage shall be written on a combined single limit of not less than .

PROFESIONAL LIABILITY: (For Medical and Health Services)


Coverage shall be written on an occurrence basis in an amount of not less than per claim.

Annual aggregate limit shall not be less than 3,000,000$ .

PROFESIONAL LIABILITY: (For other than Medical & Health Services or IT Services)

Required X Not Required


Annual aggregate limit shall not be less than .




POLLUTION LIABILITY:




DIRECTORS AND OFFICERS:


Coverage shall be written on a combined single limit in an amount of not less than .

CRIME PROTECTION:




ADDITIONAL COVERAGES may be needed. Please refer to the ADDITIONAL COVERAGES section within the

"Rate it - Service" tab OR click HERE

Service ProcurementSummary Document to Assist with Insurance Requirement Template

1,000,000$

$1,000,000

$1,000,000

$1,000,000

8/8/2018 42 of 44


PHYSICAL ABUSE AND SEXUAL MOLESTATION:




MOTOR CARRIER AND CARGO:






AIRCRAFT LIABILITY:



AIR CARGO LIABILITY:



AIRCRAFT AERIAL APPLICATION LIABILITY:



GARAGE LIABILITY:



GARAGEKEEPERS LEGAL LIABILITY:



BAILEE'S:



MARINE PROTECTION LIABILITY:



Continued - ADDITIONAL COVERAGES may be needed. Please refer to the ADDITIONAL COVERAGES section within the

"Rate it - Service" tab OR click HERE

$1,000,000

8/8/2018 43 of 44





NOTES:



Goods Procurement

8/8/2018 44 of 44

PREVAILING WAGE RATE LAW OVERVIEW

for DPO Advisory Council

OREGON BUREAU OFLABOR & INDUSTRIES

July 25, 2018

BOLI © 2018

COVERAGE OF THE PWR LAW

TWO-STEP TEST

1. Does the definition of “public works”apply? ORS 279C.800(6)(a)

(This is not the same as “public improvement” under ORS 279A.010(1)(cc))

2. Do any of the exemptions from the lawapply? ORS 279C.810

2

BOLI © 2018

Step 1:Definition of Public Works

(A) Construction, reconstruction, majorrenovation or painting that is carried on orcontracted for by a public agency to servethe public interest.

ORS 279C.800(6)(a)

(Generally, this type of project must cost in excess of $50,000 and must use some funds of a public agency.)

3

BOLI © 2018

Definition of Public Works:The terms “construction,” “reconstruction,”and “major renovation” are defined in ruleOAR 839-025-0004:

(5) – Construction: initial construction oraddition to buildings, structures or roads.

(22) – Reconstruction: restoration ofexisting buildings, structures or roads.

(11) – Major renovation: remodeling oralteration of buildings or structures;alteration of roads.

4

BOLI © 2018

“Public Works” may include maintenance andrepair work, if it includes construction,reconstruction, renovation or painting. Ex:

Repairing a roof

Upgrading sewer lines

Replacing carpeting in part of a building

Patching pot holes or chip sealing a road

Installing security cameras

Replacing a boiler

Resealing windows

Installing/reconfiguring systems furniture5

BOLI © 2018

Definition of Public Works:The project must be “carried on or contracted forby any public agency to serve the public interest.”

Carried on – public agency conducts/manages(i.e., has substantial control over) the project.

Contracted for – public agency has entered intoa binding agreement for construction, even ifnot directly with contractor.

To serve the public interest – a project that is tothe advantage or well being of the communityor people as a whole.

6

BOLI © 2018

Definition of Public Works:(B) Construction, reconstruction, majorrenovation or painting and project will use$750,000 or more of funds of a publicagency. Project could be publicly or privatelyowned; does not have to be “carried on” or“contracted for” by a public agency.

(C) Privately owned construction and publicagency will occupy or use 25% or more of thesquare footage of completed project; projectmust use some funds of a public agency.

ORS 279C.800(6)(a)7

BOLI © 2018

Definition of Public Works:

(D) Installation or construction of a device,structure or mechanism that uses solarradiation on public land, premises, structuresor buildings, regardless of cost of projectand whether project uses public funds.(2010 HB 3651, effective 1/1/11)

ORS 279C.800(6)(a)

8

BOLI © 2018


(E) Construction, reconstruction, majorrenovation or painting of a road, highway,building, structure or improvement of anytype that occurs, with or without using fundsof a public agency, on real property that apublic university listed in ORS 352.002 owns.(2013 HB 2646, effective 1/1/14 for OUS;2015 HB 2664, effective 1/1/16 for publicuniversities.)

ORS 279C.800(6)(a)

9

BOLI © 2018


“Public Works” does not include:

The reconstruction or renovation of privatelyowned property that is leased by a publicagency. ORS 279C.800(6)(b)(A)

Defined as: “improvements of all typeswithin the framework or footprint of anexisting building or structure.”

• OAR 839-025-0004(23)

10

BOLI © 2018

Step 2:Exemptions from the Law

1. Projects with a total project cost of $50,000or less (except for projects on public property with

a solar component)

$50,000 threshold includes all contracts formaterials, supplies and labor.

Project may be made up of multiplecontracts; each contract is subject to PWRwhen the combined price of all contractsawarded is over $50,000. ORS 279C.810(2)(a)

11

BOLI © 2018

Exemptions from the Law:

$50,000 threshold, con’t.

$50,000 threshold may include materials andsupplies the agency purchases, if purchasedspecifically for that project.

$50,000 threshold does not include:

•Value of donated materials;

•Work performed by volunteers or agencylabor force.

ORS 279C.810(2)(a)

12

BOLI © 2018

Exemptions from the Law:

2. Projects for which no funds of a publicagency are directly or indirectly used (exceptfor projects on public property with a solarcomponent, and any C/R/MR/P projects on publicuniversity property)

ORS 279C.810(2)(b)

13

BOLI © 2018

Exemptions from the Law:3. Projects for residential construction that are

privately owned and that predominantlyprovide affordable housing

Definitions: “Affordable housing” = occupants whose incomes

are no greater than 60% of the area median.

“Predominantly” = 60% or more.

“Residential construction” = single-family housesor apartment buildings not more than four storiesin height.

14

BOLI © 2018

BOLI provides coverage determinations whenrequested: Requestor must submit all information necessary to

make the determination.

BOLI will make the determination within 60 days ofreceiving all necessary information.

Procedure for making a request and determinationsissued are posted on BOLI’s web site.

The requestor or anyone adversely affected oraggrieved by the determination can request ahearing. ORS 279C.817

Questions About Coverage?

15

BOLI © 2018

AGENCY RESPONSIBILITIES

Found on pages 37-49 in the PWR Law handbook:

Planned Public Improvement Forms NEW requirements for these forms

Required Specification and Contract Provisions

Ensuring a Payment Bond is Filed

Notice of Public Works Form

Paying the PWR Fee

Certified Payroll & Withholding Requirements

16

BOLI © 2018

AGENCY LIABILITY Liability for wages plus liquidated damages on

projects subject to state & federal law if agencyfails to include in specifications state and federalrates or fails to include in contract a provisionthat workers must be paid higher of the two rates.

Liability for unpaid wages if agency fails toinclude statement in contract that contractors andany subcontract must comply with ORS 279C.840.

Liability for unpaid wages for not ensuring apayment bond is filed as required under ORS279C.380 and 279C.390.

17

BOLI © 2018

Questions? Call for help!

Susan Wooley (971) 673-0853

Mary Sharman (971) 673-0839

Randall Tendick (971) 673-0852(for forms and fee payments)

www.oregon.gov/boli

18

dpo advisory council meeting - oregon.gov dpo minutes... · johnson (doj), robert jones (pers),...

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