Addendum 1 - 27-87787 (2).docx

This Addendum #1 to Request for Proposal 27-87787 is issued by the Indiana Department of Administration on behalf of the Indiana Department of Correction and notifies prospective vendors that the Scope of Work and Technical Proposal sections have been updated and must be reviewed prior to final proposal submission. The solicitation seeks comprehensive correctional health services for approximately 25,000-28,000 incarcerated individuals, including up to 1,000 Immigration and Customs Enforcement detainees, across eighteen adult facilities, three juvenile facilities, and ten parole districts. A mandatory pre-proposal conference was held on August 26, 2026, with written questions due August 27, 2026 by 3:00 PM Eastern Time. Proposals are due October 5, 2026 at 3:00 PM Eastern Time. The contract term is three years from execution with two optional two-year renewal periods for a potential total of seven years. Evaluation and award activities are scheduled for October through November 2026, with award recommendation targeted for the week of November 30, 2026.

The incumbent vendor is Centurion Health of Indiana, LLC, under a contract expiring March 31, 2027. Pricing must be firm for 180 days from award and remain fixed throughout the initial three-year term with no inflation adjustments permitted. A 3% Indiana Veteran Owned Small Business subcontractor participation goal applies, with respondents eligible to earn up to 5 points for meeting or exceeding this goal plus 1 bonus point; an additional 5 points are available under the Buy Indiana Initiative for qualifying Indiana companies. Outpatient medical claims are reimbursed at Medicare plus 4 percent, while inpatient hospital claims under HIP 2.0 Medicaid require the vendor to reimburse IDOC approximately 33 percent quarterly. Financial responsibility bonds or letters of credit equal to 5 percent of the total contract price are required prior to execution. Respondents must provide audited financial statements for the last four fiscal years or a formal declaration with CPA-certified verification of available funds. The vendor must maintain 90 percent or better pass rates across 485 established performance measures, with financial penalties of $10,000 per facility per week ($20,000 for intake facilities) for staffing deficiencies and minimum reimbursement penalties of $10,000 per deficiency per facility for performance measure failures not corrected within a 30-day cure period.