26-010 Human Capital Management FINAL.pdf

REQUEST FOR PROPOSALS FOR

Human Capital Management

RFP 24-010

PROJECT DESCRIPTION

CalOptima is seeking proposals for the implementation and ongoing support of an integrated Human Capital Management (HCM) system.

SCHEDULE

RFP

Expected number of contracts to be awarded Up to 12

Pre-proposal meeting date and time NA

Is pre-proposal meeting mandatory? ☐ Yes ☒ No

Pre-proposal meeting link/location NA

Deadline for Questions, Comments & Contract Exceptions

8/20/2025

Proposal Due Date and Time 9/26/2025 @2PM Pacific Standard Time

Interviews/Presentations 10/20/2025 -10/31/2025

Vendor Selection (Tentative) 11/10/2025

CONTRACT

Expected Duration of Initial Agreement 5 years

Options to Extend 5 one-year options

Pricing method Please see attached pricing form

DESIGNATED POINT OF CONTACT

Name Lisa Ha

Email Lisaha@caloptima.org

While this proposal is ongoing, communication with CalOptima staff regarding it is prohibited except through the Designated Point of Contact.

Submit questions and proposals via Bidnet Direct.

If taking exception to any terms, use the Requested Changes and Modifications Form and submit via e-mail to the Designated Point of Contact.

https://www.bidnetdirect.com/california/caloptimahealth

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TABLE OF CONTENTS

SECTION 1 - CALOPTIMA Health

SECTION 2 - INSTRUCTIONS TO PROPOSERS

2.1 Questions, Comments & Contract Exceptions

2.2 Revisions to the Solicitation

2.3 Communication

2.4 Pre-proposal conference and site visits (If Applicable)

2.5 Modification or Withdrawal of Proposal

2.6 Joint Proposals

2.7 Prohibited Prior Work

2.8 Conflicts of interest

2.9 No Commitment

2.10 Pricing

2.11 Estimated Quantities

2.12 Proposal Submission

2.13 Ownership and Disclosure of Proposals and Materials

2.14 Electronic Signature and Consent

SECTION 3 - PROPOSAL EVALUATION AND CONTRACT AWARD

3.1 Determination of Responsiveness

3.2 Proposal Evaluations

3.3 Determination of Responsibility

3.4 Contract Award

3.5 Post Award Requirements

SECTION 4 - PROPOSAL CONTENTS AND FORMAT

4.1 Experience and Organizational Capability

4.2 Proposed Services

4.3 References

4.4 Supplemental Services (optional)

4.5 Supplementary Documents

4.6 Price

4.7 Required Forms (Attached)

SECTION 5 - PROTESTS

5.1 Protest Eligibility

5.2 Protest Deadlines

5.3 Protest Contents

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SECTION 6 - PROPOSER CERTIFICATIONS

6.1 Project Overview

6.2 Current State Overview

6.3 Definitions

6.4 Required System Features

6.5 Functional Modules

6.6 Information Processing System

6.7 Financial Requirements

6.8 Proposed Staffing and Project Organization

6.9 Implementation

6.10 Training

6.11 Support and Maintenance

6.12 Reports

6.13 Pricing

6.14 Minimum Qualifications

SECTION 7 - EVALUATION CRITERIA

ATTACHMENT 1 - AUTHORIZED SIGNATURES

ATTACHMENT 2 - PRICE PROPOSAL

ATTACHMENT 3 - SECURITY QUESTIONNAIRE

ATTACHMENT 4 - REQUESTED CHANGES AND MODIFICATIONS

ATTACHMENT 5 - CALOPTIMA LEVINE ACT DISCLOSURE STATEMENT

ATTACHMENT 6 - STANDARD CONTRACT

ATTACHMENT 7 - TABLES

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SECTION 1 - CALOPTIMA HEALTH

CalOptima Health is a public agency created by the Orange County Board of Supervisors to offer health insurance programs for low-income children, adults, seniors and people with disabilities.

It is Orange County’s single largest health insurer, providing coverage through three major programs - MediCal, California’s Medicaid Program for low-income children, adults, seniors, and people with disabilities; OneCare, which is a Medicare Advantage special needs plan for seniors and people with disabilities who qualify for both Medicare and MediCal; and PACE, Program of All-Inclusive Care for the Elderly, providing health and social services to frail older adults, so they can remain living in their communities.

SECTION 2 - INSTRUCTIONS TO PROPOSERS

2.1 Questions, Comments & Contract Exceptions

2.1.1 Submit all questions via BidNet Direct, by the Deadline for Questions and Comments. Responses will be posted on BidNet Direct as questions arrive.

CalOptima may not be able to acknowledge questions and comments received after the deadline.

2.1.2 If taking exceptions or suggesting revisions to the attached contract, instead of submitting those through BidNet Direct, use the attached Requested Changes and Modifications form and email it the Designated Point of Contact by the Deadline for Questions, Comments & Contract Exceptions. Identify specific sections and paragraph numbers to which exceptions are taken, as well as the rationale for the change. If requesting changes to language, identify specific words or phrases to be changed and provide new requested language.

CalOptima will consider contract exception requests and if suggested modifications are accepted, the solicitation will be revised, and an addendum will be posted with the revised terms. However, if sufficient proposals are received with few or no suggested modifications, CalOptima may accept the proposals with few requests and reject those with more.

2.1.3 Failure to make exceptions prior to the deadline for questions and comments, or as otherwise directed, will be deemed a waiver of any objection.

2.1.4 CalOptima may determine non-responsive any proposals that are conditional or that include material exceptions to the specifications or terms.

2.1.5 Requests for complete replacement of the contract, or for replacement of the federal provisions, will not be granted and will render a proposal non-responsive.

2.1.6 If a “REQUESTED CHANGES AND MODIFICATIONS” form is not submitted during the Question, Comments and Contract Exceptions deadline, the terms submitted in the Sample Contract will be in force.

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2.2 Revisions to the Solicitation

CalOptima may cancel, revise, or reissue this solicitation, in whole or in part, for any reason. Revisions will be posted as addenda on BidNet Direct. No other revision of this solicitation will be valid. Proposers are responsible for ensuring that they have received all addenda prior to submitting proposals.

2.3 Communication

2.3.1 Other than the Designated Point of Contact, no proposer or person acting on behalf of a prospective proposer may communicate with or discuss the details of the procurement process or any proposal with any officer, agent, or employee of CalOptima other than the Designated Point of Contact. CalOptima may deem unresponsive a proposal from any proposer or persons acting on behalf of a proposer who violates this prohibition. This prohibition does not include mere administrative matters (e.g. due dates, etc.).

2.3.2 Outside of evaluation committee meetings, members of an evaluation committee and associated subject matter experts may not communicate about matters involving deliberations or the details of an ongoing solicitation with co-workers, supervisors, directors, individuals in other departments, or other CalOptima staff that is not directly involved in evaluating proposals.

2.4 Pre-proposal conference and site visits (If Applicable)

2.4.1 If a pre-proposal conference is scheduled, and if American with Disabilities Act (ADA) accommodations are required, submit a request for accommodations to the Designated Point of Contact.

2.4.2 Answers to questions will be posted as addenda on BidNet Direct.

2.4.3 If the pre-proposal meeting is mandatory, proposers who did not attend the pre-proposal meeting may be disqualified.

2.5 Modification or Withdrawal of Proposal

Proposals may be withdrawn, modified, or replaced at any time prior to the Due Date and Time. After the Due Date and Time, proposals may not be modified unless requested by CalOptima.

2.6 Joint Proposals

If submitting a joint proposal, one entity will be fully responsible for performance under any resulting contract and other participants must be subcontractors. In addition, all entities in the joint proposal will be required to undergo the same background checks before CalOptima executes a Contract.

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2.7 Prohibited Prior Work

2.7.1 No person or entity may submit a proposal in response to this RFP if that person or entity has:

A. Been a single entity that drafted or directly assisted CalOptima in establishing specifications and requirements for this procurement, or

B. Has had access and exposure to information pertinent to this procurement that is not available to other proposers and that would provide an unfair competitive advantage.

2.7.2 Proposers that received assistance from any such person or entity will be disqualified.

2.7.3 This exclusion does not apply:

A. To general and non-specific advice or information offered to or requested by CalOptima to aid in developing the solicitation, as long as the participation was limited to conceptual, preliminary, or initial plans or specifications and all potential proposers have access to the same information, including the conceptual, preliminary or initial plans.

B. To comments made at a pre-proposal conference or to comments made subsequent to publication of the solicitation or if multiple sources were consulted for assistance prior to release of the solicitation.

2.8 Conflicts of interest

Proposers and subcontractors or subconsultants are eligible for contracts with CalOptima only if they are not currently, and will not, during the performance of the required services, participate in any other similar work involving a third-party with interests currently in conflict or likely to be in conflict with CalOptima’s interests.

2.9 No Commitment

This RFP does not commit CalOptima to make an award, nor will CalOptima pay any costs incurred by proposers in the preparation and submission of proposals, or costs incurred in making necessary studies for the preparation of proposals.

2.10 Pricing

If a pricing sheet is provided, submit prices using the pricing sheet or as otherwise directed. Failure to submit prices as directed may result in the proposal being found non-responsive.

2.11 Estimated Quantities

If the solicitation results in an indefinite quantity or requirements contract, the actual amount of goods or services requested may be less than the maximum value of the

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contract and there is no guarantee, either expressed or implied, as to the actual quantity of goods and services that will be authorized under the Contract.

2.12 Proposal Submission

2.12.1 Allow time for all documents to upload to BidNet Direct. Failure to complete an upload may result in rejection of a proposal.

2.12.2 Complete all documents electronically. Other than signatures, hand-written responses, whether or not submitted electronically, may be rejected.

2.12.3 If directed to submit information as one or more PDF, Excel, or other electronic files, include the solicitation name and number in all filenames.

2.12.4 No proposals or modifications submitted by email or facsimile will be considered. Proposals not submitted by the Due Date and Time via BidNet Direct may be rejected.

2.12.5 Proposals must be signed by a legally authorized representative of the entity submitting the proposal.

2.13 Ownership and Disclosure of Proposals and Materials

2.13.1 All open proposals, including documents and materials submitted with proposals, become the property of CalOptima.

2.13.2 CalOptima is subject to California Public Records Act (California Government Code, Section 6250 et. seq.). With selected exceptions, the contents of any submissions will be treated as open records and will be open to inspection by interested parties after a contract is executed or CalOptima rejects all proposals.

2.13.3 If submitting confidential or proprietary information as part of a proposal, clearly delineate any limits on the use or distribution of that material in writing.

Documents protected by law from public disclosure will not be disclosed if clearly marked with the word "Confidential" on each applicable page, with each confidential provision clearly identified. A mere list of confidential pages will not suffice to meet this requirement. Requests to treat the entire proposal as confidential will be rejected and will result in no part of the proposal being treated as confidential.

2.13.4 Trade secrets may be marked as confidential only to the extent they meet the requirements of the California Uniform Trade Secrets Act (CUTSA). Only information claimed to be a trade secret at the time of submittal to CalOptima and marked as confidential will be treated as a trade secret.

2.14 Electronic Signature and Consent

Submission of any materials in response to this RFP constitutes:

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2.14.1 Consent to CalOptima’s release of such materials without notice to the person or entity submitting the materials; and

2.14.2 Complete waiver of all claims against CalOptima and its officers, agents, and employees that CalOptima has violated a proposer's right to privacy, disclosed trade secrets, or caused damage by allowing the proposal or materials to be inspected; and

2.14.3 Agreement to hold CalOptima harmless for release of such information; and

2.14.4 Acknowledgement that CalOptima will not assert any privileges that may exist on behalf of the person or entity submitting the materials.

SECTION 3 - PROPOSAL EVALUATION AND CONTRACT AWARD

3.1 Determination of Responsiveness

3.1.1 Each proposal will be reviewed to determine whether it conforms to the instructions set forth in this solicitation. CalOptima, in its sole discretion, may waive minor irregularities in submissions if it determines that there will be no advantage provided to the proposer, and no other proposer would suffer a disadvantage.

3.1.2 Failure to conform to any revisions in instructions or specifications may render a proposal non-responsive.

3.1.3 If a proposal is found non-responsive, CalOptima will notify the proposer, and the proposer will no longer be included in any activities or correspondence regarding the solicitation.

3.2 Proposal Evaluations

3.2.1 CalOptima will establish a committee to evaluate responsive proposals.

Evaluations will be based on the criteria specified in the RFP as well as information gathered from background checks, oral presentations, and CalOptima’s knowledge of the proposer.

3.2.2 After reviewing all responsive proposals, the evaluation committee may request clarifications and may recommend one or more top-ranked proposers for final negotiation of contract terms. Alternatively, CalOptima may invite top-scoring proposers for oral presentations, after which proposers may be allowed to amend their proposals and submit best and final offers. After final evaluations of proposals, presentations, and best and final offers, the evaluation committee may recommend one or more top-ranked proposers for final negotiation of contract terms.

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3.3 Determination of Responsibility

Prior to awarding a contract, CalOptima will make a determination of a proposer's responsibility based on initial information submitted in the proposal, information submitted upon request by CalOptima, information resulting from CalOptima’s inquiry of proposer's references and investigations into the proposer’s background, and CalOptima’s own knowledge of the proposer. CalOptima will take into consideration matters such as the proposer’s integrity, compliance with public policy, record of past performance, and financial and technical resources. Proposers determined to be non-responsible and who cannot be made to be responsible within timelines set by CalOptima will not be considered further.

3.4 Contract Award

3.4.1 Award, if made, will be to the responsive, responsible firm that the evaluation committee concludes offering the best value to CalOptima for the services and goods described in this solicitation, or if applicable, for a specific portion of the services and goods described. Failure to award a contract to lowest cost proposer will not constitute a valid cause of action against CalOptima.

3.4.2 Debriefings, if requested, will only be provided after contract award.

3.5 Post Award Requirements

If selected for award, the selected consultant or contractor may be required to provide various forms and disclosures before a contract can be executed. Examples of requested forms and disclosures may include:

3.5.1 Forms

A. Insurance certificates as outlined in the contract or PO if not already provided;

B. W9 signed within the previous 6 months.

3.5.2 Disclosures

A. All pending litigation and tax liens;

B. Any criminal charges where the company and/or officers, and/or owners of over 10% of the company are defendants regarding the charges;

C. Audited financial statements for the past three fiscal years, if requested;

D. Samples, drawings, illustrations, and related items.

3.5.3 Staff agreements

If the work requires access to documents and materials that are confidential or unavailable to the general public, CalOptima may require execution of a non-disclosure or similar agreement prior to providing access to such materials. The

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selected proposer will be required to collect, store, and maintain such signed agreements for all staff that will have access to such materials.

SECTION 4 - PROPOSAL CONTENTS AND FORMAT

Proposals should demonstrate the experience, capacity, training, knowledge, and skills necessary to successfully perform the work described in this solicitation. The information may include: the financial capacity of the firm, the staff size, staff licenses and experience, competing demands on the resources of the firm and the individuals, and any other information that would enable CalOptima to make a fair assessment of a proposer’s suitability.

Submit proposals in the following order. Number all pages.

4.1 Experience and Organizational Capability

4.1.1 Experience

Provide a summary of experience providing similar services, demonstrating the experience and capacity necessary to successfully perform the services required by this RFP. Include examples, descriptions of work completed, and outcomes, if known.

4.1.2 Organizational Capacity

Provide evidence of adequate human, organizational, technical, and professional resources and abilities to meet the needs of this solicitation. Include an organizational chart for the organization responding to this solicitation and describe the organization’s expertise and capability to complete the proposed work.

4.1.3 Key Personnel

If certain individuals are essential to the proposed work, they will be considered Key Personnel. Include their resumes, a description of their past work related to proposed services, and proposed role on the project team for the duration of the engagement. If CalOptima accepts the proposal, Key Personnel may not be replaced without CalOptima’s approval and no substitutes may be made unless CalOptima accepts the substitute as substantially equivalent.

4.2 Proposed Services

4.2.1 Describe the services to be provided and a work plan for delivering the services.

As applicable, include a detailed breakdown and description of the specific steps that will be followed to perform the services required by this RFP. Proposers may elect to include in this section any innovative methods or concepts that might be beneficial to CalOptima if the requirements established in this RFP are met.

Include a proposed schedule for the completion of the services and the deliverables, including the start and end dates and intermediate delivery dates.

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4.2.2 List the types of documents, materials, and resources required from CalOptima for completion of the services described in the RFP.

4.3 References

Identify three public agencies in California for which your organization completed deployments. These agencies must be part of the CalPERS retirement system and also have a 9/80 workweek available to their employees. Include the name, title, email address, and telephone number of the person at the client organization who is most knowledgeable about the work. Ensure that the information is current and accurate because if references cannot be contacted, the proposal may be rejected. If contractually prohibited from disclosing a client, include sufficient detail regarding the work and the size of the organization to provide a demonstrated record of success in similar engagements.

4.4 Supplemental Services (optional)

List any related and recommended products or services not specified in this RFP that may be offered and that CalOptima might consider.

4.5 Supplementary Documents

As applicable, provide additional documents and materials in the following order:

4.5.1 Minimum Qualifications, using CalOptima forms if provided

4.5.2 Financial Documents, if requested.

4.5.3 Samples, drawings, illustrations and related items.

4.5.4 If this is a solicitation for Information Technology related goods and services, and third-party items are included, provide the third-party software specifications, warranties, and sales terms.

4.6 Price

4.6.1 Include a price proposal for the services to be provided and the total price for all services, inclusive of time in hours for the completion of each task and items which are normally referred to as reimbursable expenses, i.e., travel, meals, and lodging. Reimbursement will not be made for out of pocket or reimbursable expenses, which must be included in the total price. This total price will be used in determining scores for evaluation purposes.

4.6.2 If including any optional services or products, price and label such services or products as optional, and include those in an addendum. These optional services or products will not be used to evaluate the proposal or price.

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4.6.3 If providing a combination of software and services, indicate whether software is proprietary or from a third-party. If software requires a separate purchase or agreement by CalOptima, if known, provide the price of the software for the duration of the contract; if unknown, provide an estimated price.

4.7 Required Forms (Attached)

4.7.1 Authorized Signatures

4.7.2 Price Proposal Form

4.7.3 Levine Act documentation

4.7.4 Audit and Legal Questionnaire

SECTION 5 - PROTESTS

Protests that do not comply with the protest procedures outlined below will be rejected.

5.1 Protest Eligibility

5.1.1 Protests or objections may be filed regarding the procurement process, solicitation or addenda content, or contract award.

5.1.2 CalOptima will review only protests submitted by actual or prospective proposers and bidders. Protests by actual or prospective subcontractors will be rejected.

5.2 Protest Deadlines

File protests with any supplemental materials by 5 p.m. PST, as appropriate, on the deadlines set forth below. Failure to file by the relevant deadline constitutes a waiver of any protest on those grounds. Supplemental protest materials filed after the relevant deadline will not be considered unless CalOptima determines that there are extenuating circumstances.

5.2.1 If relating to the content of the solicitation or an addendum, file within five business days after the date CalOptima releases the solicitation or addendum.

5.2.2 If relating to contract award, file within five business days following CalOptima’s announcement of the proposer selected, which announcement may be made by a public posting or by direct notice to proposers.

5.2.3 The date of filing is the date CalOptima receives the protest, unless received after 5 p.m. PST or on a CalOptima non-business day, in which case the date of filing will be the next business day.

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5.3 Protest Contents

5.3.1 Submit protests in writing to the Designated Point of Contact. Include all of the following:

A. Detailed grounds for the protest, supported with technical data, documentary evidence, names of witnesses, and other pertinent information related to the subject being protested; and

B. The law, rule, regulation, or policy upon which the protest is based, alleging a clear violation of a specific law, rule, regulation, or policy; and

C. If applicable, identification of any proprietary or confidential material, which must be indicated by stating on the front page of the protest document that proprietary material is included and identifying the alleged proprietary information wherever it appears within the protest documents.

5.3.2 Protest documents will not be withheld from any interested party outside of CalOptima unless withholding the information is required by law or regulation.

Identifying either the entire contents or the majority of contents of a protest as proprietary or confidential will result in no part of the protest being treated as proprietary or confidential by CalOptima.

SECTION 6 - PROPOSER CERTIFICATIONS

By submitting a proposal, each proposer certifies that:

• Its submission is not the result of collusion or any other activity that would tend to directly or indirectly influence the selection process; and

• It is able or will be able to comply with all requirements of this solicitation at the time of contract award; and

• All required licenses, certificates and permits are or will be valid at the time of contract award and will be kept valid for the duration of the contract; and

• Neither proposer, its employees, nor any affiliated firm providing goods and services contemplated by this solicitation has prepared the plans, specifications, or requirements for this solicitation, or has any other actual or potential conflict of interest;

• It is unaware of any financial or economic interest of any public officer or employee of CalOptima relating to this solicitation; and

• It is not presently debarred or declared ineligible for award of a contract by any federal agency or from participating in any federal healthcare programs.

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SCOPE OF WORK

6.1 Project Overview

CalOptima, a California Public Agency, is seeking proposals for the implementation and ongoing support of an integrated Human Capital Management (HCM) system. The system must support all aspects of CalOptima’s human resources, payroll, benefits, and other related functions while providing a user-friendly, mobile-capable experience for employees and managers.

Vendors may submit proposals that meet the requirements for one, all, or any number of the functional areas listed in TABLE A – FUNCTIONAL AREAS. Each module will be scored independently. CalOptima will award no more than one contract per module.

Responding to one module only does not preclude selection for that module over a firm that responds to more than one module. However, CalOptima prefers to award one contract to a single firm that is either the provider of the complete proposed system or an authorized value-added reseller of all components. CalOptima may award one or multiple contracts, with preference given to single firms offering integrated or fully managed solutions.

Proposals must indicate whether CalOptima will be advised or required to purchase any goods or services from third parties or if the entire system will be provided and warranted through the contracted firm. Proposals must include an estimated cost for the entire system, whether included or purchased through a third-party, and must list any specific integrations required, (e.g., benefits carriers, time and attendance systems, or other third-party applications).

The objectives are to:

• Eliminate functional gaps between current HCM modules.

• Replace manual and paper-based processes with digital workflows.

• Consolidate data flows and enhance reporting.

• Provide scalable support for up to 3,000 employees.

• Support complex work schedules, including remote workers (with a few outside of California) and 9/80 schedules.

• Seamlessly exchange data with the California Public Employees’ Retirement System (CalPERS), which may have differing requirements and rules that need to be adhered to.

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6.2 Current State Overview

CalOptima currently operates Ceridian Dayforce (implemented in 2013) without organizational unit configuration. As a result, the system lacks key functionalities such as comprehensive Employee and Manager Self-Service, approvals, and process flows.

Employee data management is heavily reliant on manual processing.

CalOptima’s workforce includes ~1700 employees, remote and on-premises, with variable work schedules, including traditional 40-hour schedules, 9/80 schedules with varying start/end times, and other non-traditional work schedules. The agency is a CalPERS member and requires full compliance with CalPERS pensionable hours and earnings calculations.

6.3 Definitions

401(a) - an employer-sponsored retirement plan, similar to a 401(k), but primarily offered by government, educational institutions, and non-profit organizations. Unlike 401(k)s, employer contributions are typically mandatory.

457 plan - a tax-advantaged, deferred compensation retirement savings plan available to employees of state, local, and certain non-profit organizations.

ACA – Affordable Care Act

Bi-directional Feeds - a system where data or files are transferred in both directions between two systems. This means that changes made in one system are automatically reflected in the other, and vice versa, ensuring data consistency and synchronization.

CalPERS - California Public Employees' Retirement System is the nation’s largest public pension fund and an agency in the California executive branch that manages pension benefits for employees, retirees, and their families.

Carrier Connection - a direct electronic link between the HRIS and the vendor which allows employee demographic and enrollment data to automatically transmit to the benefits carrier on a set cadence. CalOptima will refer to these and all other integration files as file feeds.

HRIS - Human Resources Information System.

Public Agency - Any government entity or organization, such as the federal government, state governments, local governments (counties, cities, etc.), and their respective departments, agencies, boards, and commissions. This includes entities like school districts, fire districts, and other political subdivisions.

SSO – Single Sign On; user authentication that allows users to access multiple applications with a single set of credentials.

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SCIM - System for Cross-domain Identity Management; an open standard that automates data provisioning to allow a wide variety of user accounts to be created, updated, or deactivated with minimal effort.

6.4 Required System Features

6.4.1 General Requirements

Any proposed system must include standard components of the modules listed in TABLE A – FUNCTIONAL AREAS, and meet the following key requirements:

A. Browser agnostic

B. Adheres to all federal, state, and local regulations regarding payroll processing for public agencies, tax reporting, benefits administration, and labor laws, including the Fair Labor Standards Act (FLSA), Affordable Care Act (ACA), Family and Medical Leave Act (FMLA), and IRS payroll requirements

C. Provides secure document storage and retention policies to meet public sector recordkeeping requirements while maintaining HIPAA, and other data privacy standards

D. All sensitive data must be encrypted in transit using TLS 1.2 or higher and at rest using AES-256 or another NIST-approved algorithm. This includes PII, payroll, benefits, and employee history data.

E. All systems hosting or processing CalOptima data must reside within the continental United States. The vendor must disclose any offshore hosting, support, or development access.

F. All system /changes should be trackable and auditable

G. The vendor must perform regular vulnerability assessments and annual third-party penetration tests. Critical vulnerabilities must be remediated within industry-standard timelines. Executive summaries must be available to CalOptima upon request.

H. The system must generate audit logs for all administrative actions, data access events, configuration changes, and user activity. Logs must be tamper-evident and retained for a minimum of 7 years unless otherwise required by law.

I. Hardware and software updates at no cost to CalOptima, requiring minimal IT support

J. Expandable, scalable, reliable, flexible, with customizable workflows

K. Integrates with existing systems across the CalOptima organization (workflows, approvals, bi-directional feeds), provides automatic transfer

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of employee data between HRIS, Payroll and Time Keeping modules (See

TABLE B – CURRENT SYSTEMS)

L. Simple and intuitive user experience, e.g. employee self-service

M. Automated file feeds and carrier connections

N. Supports Android and iOS mobile devices

O. Accommodates various shifts and multiple work schedules, e.g. standard 40-hr week, 9/80 schedule, evening or nighttime hours, full-time, part-time, exempt, non-exempt, temporary, out of class pay, etc.

P. Interfaces with or allocates hours to CalPERS

Q. Reports available on all data fields

6.4.2 Authentication and Identity Management

The system must allow Single Sign-On across CalOptima systems and meet the following requirements:

A. Industry-standard authentication protocols including SAML 2.0, OAuth 2.0, and OpenID Connect to enable interoperability with CalOptima's Identity Provider (IdP)

B. Identity Provider Integration - compatible with Azure Active Directory, allowing users to authenticate using existing enterprise credentials

C. User Provisioning and Deprovisioning – allows automated user provisioning and deprovisioning based on identity provider configurations or SCIM standards

D. Multi-Factor Authentication (MFA) - integrates with CalOptima's existing MFA policies, allowing enforcement of additional authentication steps during the login process

E. Role-Based Access Control (RBAC) that aligns with identity provider security group or role assignments, ensuring users are granted appropriate permissions upon login

F. The system must support Zero Trust principles, including enforcement of least privilege access, continuous session validation, and dynamic access controls tied to risk posture and identity attributes.

G. Session Management and Security - allows for session timeout, automatic logout, and session revocation in coordination with the IdP’s session policies

H. The SSO process must be seamless, requiring no additional logins or re-authentication once the user has signed in through the Identity Provider (Microsoft Entra ID, previously known as Azure AD).

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6.5 Functional Modules

6.5.1 Employee Data Management

A. Employee Records i Centralized employee records with demographic, employment, compensation data ii Work authorization status iii Education, certifications, and licenses iv Performance reviews and appraisals v Employee files / document management vi Historical employment records including: pay rates, job titles, effective dates, leave of absence start and end dates for a period of 10 years or more.

vii Disciplinary actions

B. Onboarding i Pre-employment screening and background checks ii Integration with E-Verify iii Paperless new hire paperwork and onboarding checklists iv Benefits enrollment and orientation v Customizable workflow automations with variable approval paths and notifications.

C. Job Descriptions and Organizational Charts i Job descriptions with essential functions and qualifications ii Printable organizational charts to visualize departmental structures and reporting relationships

D. Succession Planning i Identification and development of high-potential employees ii Tracking employee skills and competencies

E. Talent Acquisition

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i Applicant tracking system (ATS) for job postings, resume screening, and candidate interviews ii Integration with job boards and social media platforms iii Integrated ATS with an HCM for Position Management or Position Control.

iv Text to chat within the ATS so applicants can communicate directly with the Recruiter via chat options.

v Define your system's size constraints for uploaded attachments.

Specify the process to receive an attachment that is above this capacity.

vi Capability to create and save templates for notices (i.e., email templates to candidates upon applying, next steps in process, etc.)

including embedding hyperlinks into the notices (i.e., pre-employment forms, background notice disclosure forms, etc.).

vii Automatically send notices at the time of action, or schedule notices (delayed) to be sent within a certain time frame of action (i.e., submittal of application, confirmation of self-scheduling appointments).

(1) Specify whether self-scheduling notifications are visible when the applicant self-schedules from their applicant portal.

viii Vary the onboarding process workflow according to multiple candidate and position factors including employee type, business unit, job title, location and state.

ix Onboarding workflows pre-defined and triggered when hiring specific combinations of title, department, etc.

F. Configurable Workflows i Flexible, customizable, configurable approval processes for employee changes and variable approval paths for terminations, status changes, job changes, pay rate changes, manager changes ii Customizable workflow approval paths based on transaction type iii Multiple approvers, and can return denied plans to originating manager iv Super approvers with configurable approval functions

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v Seamless handling of supervisor changes mid-process without losing approvals vi Send out notifications to various departments/teams specificizing via email or systemically, upon actions in the system.

vii Functional wizards for new hire, termination, and employee movement (transfers/demotions/promotions).

G. Core HCM i Understand and properly utilize future effective dated records.

ii Define your system's organization unit/ business structure and use of managerial hierarchy.

(1) Specify how many levels your organization unit structure can contain and any limitations.

(2) Describe how your organization unit structure and managerial hierarchy ties into approvals and process flows for Employee and Manager Self Service.

iii Customizable user/role security controls. Specify if there is one standard security/role area, or if there are multiple independent security/role control areas (examples: timekeeping, general HCM, mobile app, etc.).

iv Full audit trail documentation for employee data and system configuration data, including: user, time, employee record data, specific field name changed, and previous/new value.

v Maintain historical data for current/former employees (e.g., names, employment, job/assignments, performance ratings, status, and pay).

(1) Please list any limitations of viewable and reportable history for the following (job information, salary and wage data, evaluation and performance data, career, skills and education, training information, OSHA and workers’ compensation data, organizational changes, employee status, benefit elections, paycheck details, earnings/deduction/tax detail).

vi Create user defined fields; with and without effective dating.

vii Uploading and storing documents in common document file formats such as .pdf, .doc, .xls/xlsx, .rtf, .html, etc., common email file extensions such as .msg, .eml, etc., common image file extensions

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such as .png, .jpeg, etc., common audio file extensions such as .mp3/mp4, .avi, .wav, etc.

viii Indicate any size constraints or limitations.

ix Electronic Signatures

(1) Specify if electronic signatures, acknowledgements, or both are utilized.

(2) Indicate if your system is compatible and integrated with electronic signature platforms such as DocuSign and/or AdobeSign. Specify which platform(s).

x Delegation functionality (allowance for a proxy or change the owner) for any specific task. List any limitations or unavailable managerial tasks that cannot be delegated.

xi Pay vendors directly out of the system.

xii Change workers’ comp codes on a particular employee without changing job title. (example: Staff Accountant job is coded to 8810, but a teleworking Staff Accountant needs to be coded to 8871).

xiii Auto populate fields based on defined criteria.

(1) Example: An employee with job title of Staff Accountant, department populates to Accounting; Because their location is full office, workers’ comp code auto populates to 8810; Because they are full time, the PTO policy and benefits eligibility class for full time employees auto populates; because they are full time, and location is partial telework, reoccurring earnings of commuter allowance, internet stipend are automatically added to their profile for autopay.

xiv Provide a test environment to utilize during the implementation phase.

xv Provide an on-going duplicate test environment after go-live.

xvi Document Signatures and Routing

(1) Example: obtain electronic signatures on annual handbook acknowledgement and route employee documents into their employee files atomically once signed.

xvii True “point in time” system.

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(1) Identify any limitations.

H. Compensation & Performance Management i Compensation Planning & Budgeting

(1) Build salary budgets and track compensation spending

(2) Automatic calculation of merit increases based on percentage or dollar amount

(3) Real-time visibility into managers' budget totals, used, and remaining amounts

(4) Cascading budget roll-up and team budget summaries

(5) Configurable compensation cycles with flexible payout intervals ii Compensation & Performance Integration

(1) Incorporation of performance results into compensation module for compensation / merit planning

(2) Generates official employee notification documents for compensation changes

(3) Online visibility into employees’ total compensation package, including salary, pension, benefits, and incentives iii Compensation & Performance Management

(1) Process for employees to write rebuttals to performance reviews.

(2) Store historic pay structures and keep employee records tied to those structures intact.

(3) Set up non-base pay compensation eligibility rules by job titles, job level, business unit, etc. for discretionary pay such as commissions, performance bonus tied to goals (not merit), bilingual pay, etc.

(4) Manage one-time bonuses and include them in the regular rate of pay for overtime calculations.

(a) Specify any limitations (example: inability to calculate over a date range not tied to a singular pay period)

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(5) Performance review cycle management dashboard for administrators. Be specific about what and when administrators can and cannot view, change, etc.

(6) Describe the functionality for administrators to assign different review forms/processes for different employees within the same review cycle (e.g. mid-year/annual/90-day reviews/as needed reviews).

(7) Cascading performance goals from the supervisor levels to staff levels

(8) Performance feedback from multiple reviewers (i.e.

subordinates, directors, other managers, peers).

(a) In addition, describe the ability for the multiple reviewers to exchange data simultaneously.

(9) Define how pay grades tie to positions and job titles in your system.

(a) Further define any other codes (example, workers’ compensation codes) that are tied directly to job titles. For each code tied to the job titles, please define if the tied code can or cannot be altered on an individual employee record without changing the job title.

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(10) Customizable job requisition forms, streamlined position approvals and tracking of position history for position management

(11) Automated electronic compensation notices (PDF) based on customized templates, label documents, and file in electronic employee records

(12) Track and search disciplinary actions including a description of the incident, including fields for case number, priority, complainant name, job title, supervisor, department, subject name, job title, supervisor, department, complaint basis (multiple values), complaint type, investigator name, multiple date fields (received, closed, investigation entry dates), status of investigation, investigation result/disposition, and free-form notes field.

(13) Integration with MS Outlook to set meetings/check availability iv Incorporation of performance results into compensation module for compensation / merit planning

I. Benefits Administration i Open Enrollment

(1) Online enrollment and benefit selection for employees

(2) Communication and education materials for employees ii Benefits Eligibility and Enrollment

(1) Eligibility determination for various benefits (e.g., health insurance, dental insurance, life insurance, retirement plans)

(2) Automated enrollment options

(3) Tracking and managing COBRA eligibility and premiums

(4) Qualified Life Events iii Leave of Absence

(1) Tracking and managing various types of leave, including, but not limited to

(a) Family and Medical Leave Act (FMLA)

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(b) Family and Medical Leave Act (FMLA)/California Family Rights Act (CFRA)

(c) California Family Rights Act (CFRA)

(d) Family and Medical Leave Act (FMLA)/Pregnancy Disability Leave (PDL)

(e) Pregnancy Disability Leave (PDL)

(f) Sick leave

(g) Vacation leave

(h) Personal leave

(i) Military leave

(2) Automated leave accrual and request processes

(3) Integration with time and attendance systems

(4) Accrual automation and integration with payroll

(5) Tickler/calendar reminder for overdue notices or action needed in the leaves module.

J. Benefits i Automated assignment of benefits to employees based on predefined classes, such as part-time or full-time status ii How does your system define and manage eligibility requirements for employees to participate in benefit plans? Does the system use benefit eligibility classes to group employees, and how are these groups matched to the correct benefit elections?

iii Automatically cap reportable hours for CalPERS at 40 hours per week, regardless of employee work schedule (e.g., 5/40, 9/80, or 4/10)?

(1) Describe how the system handles different work schedules while ensuring that the reportable hours for CalPERS do not exceed 40 hours per week based on CalPERS designated reportable earnings.

(2) Specify if these rules can be modified to account for specific organizational needs or CalPERS requirements

K. Workers’ Compensation

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i Ability to store prepared forms and/or packets and choose and send those forms/packets to individuals directly from the system.

(examples: Pre-Prepared Injury Packets and Return to Work packets).

ii Automated compliance check to ensure proper workers’ comp state code matches the employee's USPS zip code iii Ability to track work restrictions, accommodations, transitional duties and tools for scheduling, documenting, and managing return to work plans.

L. Learning & Development i Training Management

(1) Course catalog and registration

(2) Online training modules and delivery platforms

(3) Tracking of training completions and certifications

(4) Ability to import customized classes into the catalog ii Skill Tracking and Development Plans

(1) Identification of employee skills gaps

(2) Development of individual development plans (IDPs)

(3) Tracking of employee development progress iii Learning & Development

(1) Job and role-based training planning and assignment

(2) Waitlist management for instructor-led training (ILT) and blended learning, including prioritization (autofill or admin/instructor determination, learner enrollment status notifications).

(3) Learning content includes assessments, knowledge checks, surveys and graded tests (i.e., multiple choice, true/false, matching, hot spots).

(a) Collects and analyzes results (i.e. commonly missed questions) and content exercises, job aids and other elements to reinforce learning.

M. Employee Self-Service i Access to Personal Information

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(1) View and update personal information, such as contact details and emergency contacts

(2) Access pay stubs, W-2 forms, and tax documents

(3) View and update benefit information ii Time-Off Requests

(1) Submit and track time-off requests (vacation, sick leave, personal leave)

(2) View time-off balances and accruals iii Enroll in and make changes to benefit plans online iv Performance Reviews

(1) Access and complete performance reviews online

(2) View performance history and goals

(3) Complete Self Appraisals and 360 Appraisals v Training - Register for training courses and view training schedules

N. Payroll & Time Keeping i Time & Attendance

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(1) Optimized time and attendance systems: support for multiple time capture methods, including physical time clocks, mobile applications, web-based punch-in/out options, and badge swipe systems (utilizing existing 7-digit badge numbers), ensuring flexibility for all employees

(2) Real-time tracking of work hours and overtime: accurate logging of regular hours, overtime, double-time, shift differentials, and holiday pay, ensuring compliance with federal, state, and local labor regulations

(3) Automatic adding of reoccurring pays, with and without recalculation of the regular rate of pay

(4) Automated calculation of the regular rate of pay, retro pay, gross pay, deductions, and net pay: seamless integration with the payroll module to calculate wages, taxes, deductions, and benefits with minimal manual intervention

(5) Geo-fencing capabilities for time tracking: restrict punches to designated work locations, preventing offsite clock-ins and ensuring location-based workforce accountability for remote, field-based, or mobile employees

(6) Leave and absence management: automated PTO accruals, absence tracking, FMLA / leave monitoring, and sick leave compliance, with seamless integration into payroll and HR systems

(7) Automated alerts and notifications: system-generated reminders for missed punches, overtime alerts, timesheet approvals, and scheduling conflicts to improve payroll accuracy and compliance

(8) Manager and employee self-service portals: enable employees to submit time adjustments, request leave, and view time records, while managers can review, approve, and monitor attendance in real time

(9) Shift scheduling and forecasting tools: support for automated shift scheduling, labor cost forecasting, and real-time adjustments based on staffing needs, ensuring optimized workforce management

(10) Real time data for time keeping ii Tax Calculations and Withholdings

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(1) Accurate calculation and withholding of federal, state, and local taxes

(2) Compliance with changing tax laws and…