Addendum_1.pdf

HillsboroughSchools.org • P.O. Box 3408 • Tampa, FL 33601-3408 • (813) 272-4000 Raymond O. Shelton School Administrative Center • 901 East Kennedy Blvd. • Tampa, FL 33602-3507

Superintendent of Schools Van Ayres

PROCUREMENT SERVICES

ADDENDUM TO COMPETITIVE SOLICITATION

February 23, 2026

Competitive Solicitation No. and Name: 26027-RFP-DST Employee Benefits & Risk Management Benefits Services

Addendum #: 1

NOTICE TO ALL POTENTIAL BIDDERS/PROPOSERS/RESPONDENTS

The above-referenced competitive solicitation is modified as outlined in this addendum. The original competitive solicitation documents and any previously issued addenda remain in full force and effect, except as modified by this addendum, which is hereby made part of the competitive solicitation. Respondents must consider this Addendum when preparing and submitting their bid/proposal/quote/reply.

1. This Addendum amends the above-referenced solicitation in the following particulars only:

Section Description of Change

26027-RFP-DST Employee Benefits & Risk Management :

The language in the referenced Section is hereby amended and added in its entirety with the following:

Renamed 26027-RFP-DST Employee Benefits & Risk Management Benefits Services

2. Questions and Answers

The following questions and answers are provided as a matter of information to clarify issues raised regarding the competitive solicitation. To the extent that changes to the competitive solicitation are required based on the questions received, the competitive solicitation has been modified as noted above in the competitive solicitation section of this addendum.

Questions and Answers Question Who is the incumbent, and how long has the incumbent been with Hillsborough County Public Schools?

Answer The incumbent is Aon Consulting, Inc. They have been with HCPS for 27 years.

Question

Our actuarial team is very experienced with the state of Florida, enjoys a lovely working relationship with the state and provides filings service for many of our Florida clientele today, however, our Actuarial staff are dispersed throughout the country as a national practice. Is that acceptable?

Acknowledging that a new benefits broker / consultant must assume the cost of the different programs listed in the RFP, can we request a bit more clarity around the cost of all the different services? Can you tell us what the current commission/fee structure is and what is being paid out of this structure?

Moving forward, would you want to continue this fee/commission structure?

Answer

While local actuarial team members are preferred, the requirement is that the actuaries are internal resources to your firm and not outsourced. We plan to continue with the same commission/fee structure. For Alight's benefits administration, communication, FSA spending, and COBRA administration, the total in 2025 was $1,961,329. Commissions received for the scope of service listed in Attachment A is $838,849 in 2025.

Hillsborough County Public Schools Page 2 of 6 26027-RFP-DST Employee Benefits & Risk Management Benefits Services

Question We shall at all times during the term of this Agreement and for a period of two (2) years thereafter, obtain and maintain in force the insurance coverages and limits at its own expense. Can HCPS agree to this provision?

Answer Yes.

Question Any cancelled or non-renewed policy will be replaced with no coverage gap, and a Certificate of Insurance evidencing the coverages set forth in this section shall be provided to HCPS upon request.

Is this acceptable to HCPS?

Answer Yes.

Question Can HCPS allow for indemnification to be limited to grossly negligent acts and omissions, breaches of the contract, intentional misconduct, or violations of law? Is this acceptable to HCPS?

Answer No.

Question Will HCPS allow a cap to be placed on the indemnification provision. If yes, what cap is allowed?

Answer No.

Question How many solicitations does HCPS put out regarding benefits per year?

Answer Our medical/rx procurement cycle has been approximately every 2-3 years under a fully insured model.

While we might expect that same frequency with medical ASO, that is yet to be determined. In the past 12 months, however, we have done 6 solicitations for a variety of coverages.

Question Regarding the current commissions plus fee compensation structure, is there a cap placed on commissions?

Answer Yes.

Question Is HCPS willing to agree to a flat-fee annual compensation structure, opposed to the current model of commissions and fees?

Answer The district wants to maintain the current commission arrangement.

Question What meeting cadence does HCPS administration expect from the team? How many regular meetings are conducted in person versus online?

Answer

In addition to quarterly strategy/projections and annual reviews, our consultants routinely participate in weekly and bi-weekly vendor calls, and monthly in-person insurance committee meetings. They also participate as needed both in-person and on-line with HCPS leadership and Board members. We enjoy a relationship where communication flows freely and ad hoc discussions are desired and expected.

Consistent projections and monthly actuarial involvement in the Insurance Committee meetings and financial analysis will be expected.

Question What does the current HCPS wellness program look like? What roles do Vitality Group International Inc. and the consultant take for wellness?

Answer HCPS has a robust wellness program supported by monthly on-line meetings with our consultant's wellbeing experts who incorporate clinical consulting that connects the HCPS wellness program and the Vitality platform.

Question What does current management and oversight look like for Vitality Group International Inc.?

Answer HCPS has a robust wellness program supported by monthly on-line meetings with our consultant's wellbeing experts who incorporate clinical consulting that connects the HCPS wellness program and the Vitality platform.

Question What is the current payment made for Alight Holdings Company for benefits administration?

Answer For Alight's benefits administration, communication, FSA spending, and COBRA administration, the total in 2025 was $1,961,329.

Question How have employee benefit communications been handled by HCPS? Who is responsible for the design and distribution of these materials?

Hillsborough County Public Schools Page 3 of 6

Answer Alight handles communications including design and distribution.

Question How many open enrollment meetings do HCPS have per year? How is open enrollment handled by HCPS administration?

Answer We have one benefits health fair per year. Alight provides online enrollment capability and call center support for open enrollment.

Question Are both online platforms and in-person assistance available to employees for open-enrollment? Does the current consultant provide in-person services, if so, how many team members are present on-site?

Answer We do not provide in-person assistance for enrollment. The current consultant provides onsite support at our health fair.

Question Will HCPS allow for an extension of the due date if necessary?

Answer HCPS does not want to extend the date.

Question We currently do not allow certain information such as payroll, facilities, etc., to be available for up to 5 years after the date of the final payment. Can HCPS agree to the limitations on this provision?

Answer Yes.

Question Is there a performance guarantee under the current contract? If so, can HCPS describe any current performance guarantees?

Answer No.

Question Will HCPS consider removing the Student Confidentiality clause as the nature of this clause does not relate to our scope of services?

Answer Yes.

Question Can HCPS provide a copy of the current consultant agreement?

Answer See uploaded Exhibits.

Question What is the current covered population (employees + dependents + retirees) and projected growth over the next 3 years?

Answer As of December 2025, our current membership population is 22,621.

Question What is the current annual medical + pharmacy claims spend and administrative cost?

Answer Through December 2025, total claims were $284,244,399. Total premium was 198,528,517. This is based on fully-insured reporting data.

Question What are the current stop-loss attachment points (specific and aggregate) and number of claimants exceeding 50% of the specific deductible?

Answer Specific = $1,000,000. There is no Aggregate coverage. We have been self-funded since 1/1/26. There are currently no claimants exceeding 50% of the specific deductible.

Question How many high-cost claimants (> $250k) were incurred in the most recent 24 months?

Answer The most recent 24 months will be from fully-insured data. In 2024, there were 61 high-cost claimants over $250k. In 2025, there were 91 high-cost claimants over $250k.

Question How frequently does HCPS expect formal actuarial projections (monthly monitoring vs quarterly formal vs annual certification)?

Answer We expect formal actuarial projections on a quarterly basis.

Question Does HCPS require independent reserve certification separate from funding projections?

Answer Yes.

Question

How frequently does HCPS expect:

○ Monthly experience reporting?

○ Large claimant review?

○ Pharmacy rebate analysis?

Site-of-care review?

Hillsborough County Public Schools Page 4 of 6

Answer Monthly experience reporting - monthly. Large claimant review - monthly. Pharmacy rebate analysis -quarterly. Site-of-care review - quarterly.

Question Will HCPS provide direct claims feeds from carriers/TPA, or will the consultant be responsible for data aggregation and validation?

Answer Consultant.

Question Are ad hoc reporting requests common, and if so, approximately how many per year?

Answer Yes, multiple ad hoc reporting requests each quarter.

Question What is the expected turnaround time for ad hoc analytics requests?

Answer Turnaround time is discussed at the time of each request.

Question What is the current scope of oversight required for:

• Vitality Group International, Inc.

• Alight Holdings Company, LLC

Answer

For both Vitality and Alight, the consultant is required to perform standard vendor management, coordinate tasks and calls on behalf of the District, support open enrollment communications, attend weekly and monthly vendor calls, and provide any additional support as needed. Vitality requires support from the consultant's wellness Subject Matter Experts to integrate our program with Vitality.

Alight requires support from the consultant regarding communication strategy and benefits administration implementation.

Question Does HCPS expect the consultant to conduct formal annual vendor performance audits?

Answer Yes.

Question Does HCPS anticipate RFPs for TPA, PBM, stop-loss, or other vendors within the first 24 months?

Answer Stop loss will be marketed annually. Although RFPS for TPAs and PBMs are not anticipated at this time, we reserve the right to request RFP services within the first 24 months.

Question How frequently does HCPS request compliance interpretation memos (estimate annually)?

Answer The consultant's legal department provides updates as legislation occurs, annual updates, and specific interpretations as member issues on plan compliance requires.

Question Has HCPS experienced recent DOL, IRS, or state-level audits related to benefits?

Answer No.

Question Is 112.08 attestation required annually, and is this currently outsourced?

Answer Yes, 112.08 is required annually. Our current consultant's 112.08 actuary (separate from our medical actuary but with the same consulting firm) provides the 112.08 attestation.

Question Does HCPS intend to market medical and pharmacy annually, or on a multi-year cycle?

Answer While not currently anticipated to market annually, we reserve the right to request RFP support and analysis from the consultant on an annual basis.

Question What is the expected timeline from renewal analysis to Board approval?

Answer While there is no written timeline, once the renewal analysis is provided by the consultant and presented to HCPS and then presented to the Health Insurance Committee, it will go to the Board for final approval. We would expect this process to take 60-90 days, but is subject to change.

Question Does HCPS expect multiple plan design scenarios annually (e.g., 3–5 modeling options)?

Answer Yes.

Question

How often is onsite attendance expected:

• Board meetings?

• Employee benefit committee meetings?

• Open enrollment meetings?

Hillsborough County Public Schools Page 5 of 6

Answer Board meetings - monthly. Employee benefit committee meetings - monthly. Open enrollment meetings - 1-2 meetings each year, as needed.

Question Please confirm the estimated annual commission revenue under current benefit lines.

Answer $838,849 net of Alight fees.

Question Confirm the total annual vendor administration cost (~$1.9M) to be offset — does this fluctuate materially year-to-year?

Answer $1,961,329. This is relatively consistent year over year.

Question If commissions do not fully offset vendor costs in a given year, how is the shortfall handled?

Answer The consultant is expected to cover the cost of the shortfall.

Question Is HCPS open to a hybrid fee + commission structure?

Answer Not at this time.

Question

Scope of Services – Comprehensive Breakdown

1.1. Please confirm which of the following products and services the District expects the benefits broker/consultant to provide under this RFP, including but not limited to:

• Medical (fully insured and/or self-funded)

• Prescription drug programs

• Dental

• Vision

• Basic and supplemental life

• Disability (short-term and long-term)

• Voluntary/worksite products

• Employee assistance programs (EAP)

• Wellness and population health initiatives

• Retiree benefits

• COBRA administration

• Section 125/FSA/HSA administration

• ACA compliance reporting

• Stop-loss placement (if applicable)

• Ancillary lines not listed above

Answer All of these services listed.

Question

Benefit Administration Services & Alight Platform

2.1. Please confirm the current scope of services provided by Alight, including:

• Enrollment platform functionality

• Eligibility management

• Payroll integration

• Billing reconciliation

• COBRA administration

• Retiree administration

• Call center support

• ACA reporting

• FSA/HSA administration

• Data analytics and reporting capabilities

Answer All of these services listed.

Question How does the District administer open enrollment as well as enrolling new hires during the year?

Hillsborough County Public Schools Page 6 of 6

Answer Our open enrollment and new hire enrollment is handled through Alight's benefits administration platform, as is the benefits communication, microsite, and spending accounts.

Question Does Alight administer open enrollment or new hire enrollments for the District?

Answer Yes.

Question Does Alight provide Benefit Educators to assist the District daily to educate the employees on how to select and use their benefits? If yes, how many daily, on-site, staff are assigned by Alight?

Answer

Alight does not provide Benefit Educators on site. Alight provides a call center and microsite to educate our employees and assist them with benefits election. Our consultant has a specific division that provides onsite benefits enrollment counselors, group meetings and integration with the Alight system, which we can deploy when desired.

Question Please list the specific expenses the Broker is expected to pay on behalf of the District with the compensation paid to the Broker. Please include the entities’ name, service/product, and annual amount to be paid.

Answer The consultant expected to cover the costs of Alight, which includes benefits administration and communications, as well as special projects when needed.

Question Please provide a copy of the contract and current pricing issued for RFP 20118-DST-IV Answer See attachment.

Question Please provide the commissions and/or fees currently earned for the benefits listed in Attachment B of RFP 26027-RFP-DST Employee Benefits and Risk Management

Answer $838,849 is netn commissions for the scope of work.

This Addendum shall be construed and governed by the laws of the State of Florida.

Sincerely, Rebecca Baez, Procurement Officer

THE BIDDER/PROPOSER/RESPONDENT MUST ACKNOWLEDGE RECEIPT OF THIS ADDENDUM WITH YOUR

BID/PROPOSAL/REPLY ON THE FORM PROVIDED IN THE COMPETITIVE SOLICITATION.