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Insurance for Department of State Art Work

Solicitation Number: SAQMMA10R0222
Agency: Department of State
Office: Office of Acquisitions
Location: Acquisition Management
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Combined Synopsis/Solicitation
Added: Jun 21, 2010 11:44 am

Insurance Coverage

Management/Office of Fine Arts (M/FA)
U.S. Department of State


The U.S. Department of State's Office of Fine Arts requires insurance coverage (at a firm fixed price) for its fine and decorative arts collection. The insurance shall provide protection against loss or physical damage to the objects which are a permanent part of the collection, as well as to the objects on temporary loan to the U.S. Department of State by various private citizens or organizations. The coverage shall include terrorism protection.

The property value of the fine and decorative arts collection owned by the U.S. Department of State and the fine and decorative arts collection on loan by the general public to the U.S. Department of State is estimated to be $64,795,172. (See Attachment "A" which lists the permanent collection and objects on loan to the U.S. Department of State as of January 20, 2010.) The successful offeror shall provide insurance coverage for property values worth $65,000,000 at a firm fixed price. Sixty-five million dollars in insurance coverage provides the U.S. Department of State a $204,828.00 allowance for additions to Attachment "A" (at no additional cost to the U.S. Department of State) over the course of the contract term.

Additionally, a fixed price shall be established for each additional $10,000 of coverage required if the collection within the US Department of State grows or is re-valued beyond the established $65,000,000. If that occurs, an addendum will be added to the contract to cover the new objects at the stated price.

There are smoke detectors and sprinklers in all of the Diplomatic Reception Rooms, the seventh floor State Rooms and the Treaty Room, where the vast majority of the collection resides within the U.S. Department of State located at 2201 C Street, NW, Washington, DC 20520. The objects housed outside of the U.S. Department of State include:

Blair House 21 items approximate value: $355,026
War College 1 item approximate value: $2,000
White House 1 item approximate value: $3,000
National Portrait Gallery 1 item approximate value: $50,000
Foreign Service Institute 2 items approximate value: $20,550
Keshishian Rug Storage 34 items approximate value: $929,315

Major Duties and Responsibilities


The fine and decorative arts protection shall include:

1) Zero deductible
2) Breakage endorsement
3) Replacement value coverage for all risks
4) Up to $20,000,000 in door-to-door coverage on scheduled/unscheduled objects that are being shipped or in transit (per occurrence)
5) Terrorism coverage.

The insurance coverage shall apply to (1) scheduled objects (Attachment "A") and (2) newly acquired/to be scheduled objects not to exceed the total amount of $65,000,000 worth of values. Newly acquired items shall be covered from the date of acceptance into the permanent collection of the U.S. Department of State or from the date of loan to the U.S. Department of State. Up-dated schedules will be provided to the Contractor within 90 days of the objects being added to the schedule.


At the time of contract signing, the Contractor shall provide the Office of Fine Arts with a single point of contact, who will serve as the Office of Fine Arts contact for all claims, inquiries and issue resolution.


If loss or damage occurs, the Office of Fine Arts will seek an estimate to identify the amount required to repair or replace the object and will provide a copy of the estimate with the claim. All scheduled and to be scheduled property will be insured for replacement value. If the Contractor and the Office of Fine Arts disagree on replacement value, then the amount of loss will be determined as provided by the Appraisal Clause of the policy.


The Contractor shall pay all claims within 30 days of submission by the Office of Fine Arts.


If the Government and the Contractor fail to agree as to the amount of loss, each shall, on the written demand of either, made within sixty (60) days after receipt of proof of loss by the Contractor, select a competent and disinterested appraiser, and the appraisal shall be made at a reasonable time and place. The appraisers shall first select a competent and disinterested umpire, and failing for fifteen (15) days to agree upon such umpire, then on the request of the Government or the Contractor, such umpire shall be selected by a judge of a court of record in the State in which this policy is issued. Such appraisers shall appraise the loss, stating separately the actual cash value at the time of loss and the amount of loss, and failing to agree shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The Government and the Contractor shall each pay his or its chosen appraiser and shall bear equally the other expenses of the appraisal and umpire. The Contractor shall not be held to have waived any of its rights by act relating to appraisal.


In the event of a conflict between the terms, conditions and clauses in this solicitation/contract and any insurance policy provided by the Contractor under this solicitation/contract, the terms, conditions and clauses in this solicitation/contract shall prevail.

Key Qualifications:

For the purpose of this contract, a responsible underwriter is one who is licensed to provide commercial fine arts insurance business in all 50 states and the District of Columbia. If at any time during the life of the contract, an underwriter no longer meets that requirement, the bidder shall immediately notify the Contracting Officer. If so directed, the Contractor shall provide the required insurance coverage through an underwriter that meets the requirements. If the selection of a new carrier results in a premium increase/decrease, the U.S. Department of State shall not be responsible for or entitled to such increases/decreases. Under either circumstance, no change shall be made to the agreed upon price.

Supervisory Controls

The insurance carrier will work directly with the Office of Fine Arts (M/FA) at the U.S. Department of State to address any claims, questions, or concerns. The point of contact will be:

Hope Kosier
Project Coordinator / (COR)

Work Conditions


Security Requirements




Period of Performance

Insurance coverage is required for a term of one year, commencing October 15, 2010.


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Attachment A insured items

Other (Draft RFPs/RFIs, Responses to Questions, etc..)
Attachment A insured items
Posted Date:
June 21, 2010
Description: List of insured items
P.O. Box 9115
Rosslyn Station
Arlington, Virginia 22219
Katherine F Weakley
Phone: 7038756073