PRT is dedicated to encouraging contract participation by diverse businesses, disadvantaged business enterprises, and small business entities. We must, however, assure that our contractors maintain sufficient insurance coverages to protect PRT from risks inherent in the contractual activities that our contractors perform.
PRT does not take lightly the impact of insurance costs on contractor bidding due to PRT's commitment to encouraging small and diverse business participation in its procurements. Since these costs are ultimately “passed on” in the form of higher contract prices to PRT, we attempt to establish an appropriate balance between risk mitigation and establishing a robust, competitive bidding environment.
To accomplish an appropriate balance, PRT utilizes the services of a third party, independent insurance broker, who reviews the anticipated contract services and provides expert advice to PRT as to what insurance coverages should be required of the contractor, consistent with relevant industry standards for the required contractual activities.
On occasion, potential bidders for a solicitation submit pre-bid questions to PRT, seeking reconsideration of insurance requirements where a potential error in risk assessment is perceived. In such circumstances, PRT does consider a potential bidder’s comments, consults with its insurance broker, and where appropriate, makes revisions to the solicitation insurance requirements before bids are due. Overall, our experience has been that the vast majority of our contractors, including their diverse and small business subcontractors, have been able to fully comply with the insurance requirements established by our broker.