# Enhancing the Allowance for Insurance Fund Loss Analysis

Canonical: https://abierto.us/opportunities/rfp23fcsic002

- Solicitation number: RFP-23-FCSIC-002
- Notice type: Solicitation
- Status: Closed. Deadline was February 7, 2024 at 5:00 PM EST
- Department: Farm Credit Administration
- Agency: Farm Credit Systems Insurance Corporation
- Contracting office: Farm Credit System Insurance Corp (781211)
- NAICS: 524298 All Other Insurance Related Activities
- Product or service code: R410 Support- Professional: Program Evaluation/Review/Development
- Place of performance: McLean, Virginia
- County: Fairfax County (FIPS 51059). https://abierto.us/counties/fairfax-county-va-51059
- City: McLean. https://abierto.us/cities/mclean-va-5148376
- First posted: January 25, 2024
- Last posted: February 1, 2024
- SAM.gov: https://sam.gov/workspace/contract/opp/656d7b66701b4bc0916c2fb5f272da3e/view

## Description

FCSIC has developed an Allowance for Insurance Fund Loss Procedure to evaluate the level of risk an insured bank poses to the Insurance Fund. FCSIC employs a risk matrix that contains general measures, financial ratios, and thresholds for assessing insurance risk. The risk matrix is divided into low-risk, medium-risk, and high-risk categories.

Any System bank that breaches a medium- or high-risk threshold is closely scrutinized to determine whether a loss to the Insurance Fund is probable and can be reasonably estimated. System bank losses could originate from investments, individual borrower loans and/or association direct notes. The probability of bank default related to any of these asset classes is generally very low.

However, some associations are very large and a large association failure may cause its funding bank to default on its insured debt, exposing the Insurance Fund to losses. The following tasks will be required:

**Task 1:** Review FCSIC’s Allowance for Insurance Fund Loss Procedure, Evaluate and opine on the appropriateness of the insurance risk matrix thresholds, and Develop enhancements to the current methodology for determining when a loss to the Insurance Fund is probable.

**Task 2:** Develop a high-level project plan for creating a model that computes a probability of default for each System bank and association, and Develop a high-level project plan for building out a loss given default rating system for the banks and associations in the System. Additional advice and analytical support related to FCSIC’s risk management process may be requested.

## Publications

- January 25, 2024: Solicitation, due February 2, 2024 at 5:00 PM EST. Notice fe90267205934eb5816f762c0374889d. https://sam.gov/workspace/contract/opp/fe90267205934eb5816f762c0374889d/view
- January 30, 2024: Solicitation, due February 2, 2024 at 5:00 PM EST. Notice 41006f958d504e90bdbe31e45fdcf9c1. https://sam.gov/workspace/contract/opp/41006f958d504e90bdbe31e45fdcf9c1/view
- February 1, 2024: Solicitation, due February 7, 2024 at 5:00 PM EST. Notice 359a318a45854e5ea52a3858aebec5ba. https://sam.gov/workspace/contract/opp/359a318a45854e5ea52a3858aebec5ba/view
- February 1, 2024: Solicitation, due February 7, 2024 at 5:00 PM EST. Notice 656d7b66701b4bc0916c2fb5f272da3e. https://sam.gov/workspace/contract/opp/656d7b66701b4bc0916c2fb5f272da3e/view

## Points of contact

- Mark Bowen, bowenm@fcsic.gov, 7038834386

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Source: SAM.gov Contract Opportunities bulk extract. Confirm deadlines on SAM.gov before responding. Cite https://abierto.us/opportunities/rfp23fcsic002.