Addendum 2 - Benefit Administration Solution RFP.doc
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- Contract number
- 24-416CMS-BENF4-P-77070
- Issued by
- Illinois
About this file
This document is Addendum 2 to a Request for Proposal (RFP) #24-416CMS-BENF4-B-42679 issued by the Illinois Department of Central Management Services (CMS). The addendum, dated July 15, 2024, provides clarifications and responses to vendor questions regarding a benefits administration solution procurement.
The RFP seeks a vendor to provide comprehensive benefits administration services, with specific interest in a solution that can manage both core benefits administration and voluntary insurance programs. The state is open to proposals from various vendor types, including those who can provide benefits administration services directly or through subcontractors. Key points include the state's willingness to allow commissions from voluntary plans as vendor compensation, permitting subcontractors to serve as Broker of Record, and the ultimate goal of awarding a single contract to a vendor capable of delivering integrated benefits administration services that maintain the current service arrangement.
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Benefit Administration Solution RFP
#24-416CMS-BENF4-B-42679
Addendum 2
The Illinois Department of Central Management Services (CMS) is issuing Addendum 2 to amend the original Request for Proposal (RFP) for the above referenced project as issued by this office on June 17, 2024, and is now considered a part thereof.
This addendum is to be acknowledged in accordance with the RFP, Subsection C.6, Offeror Questions and Agency Response. Vendors are instructed to read the entire package before attempting to complete the information required therein. All other terms and conditions of the RFP shall remain in full force and effect, unchanged except as amended hereby.
This addendum answers questions received by CMS on July 15, 2024.
Questions contained in this addendum are repeated word-for-word exactly as they were received.
1. Given that we typically do not see the process working in this fashion, we would like to learn about your thought process of contracting directly with a Benefits Administration vendor to include brokering the voluntary insurance programs.
Answer: The agency contracted with the current vendor for benefit administration services, voluntary benefits were an option that the agency implemented during the term of the contract. The agency’s primary goal is to contract with a vendor to provide benefits administration services with the intent of maintaining the current service arrangement including offering employees voluntary benefit services.
2. Does the State of Illinois allow for the use of commissions from the voluntary plans as compensation to the selected vendor? To subcontractors?
Answer: Yes.
3. Would the State of Illinois allow the subcontractor of the selected vendor become the Broker of Record on the Voluntary Programs?
Answer: Yes.
4. Is the State of Illinois also accepting proposals from Brokers/Consultants in which the Benefits Administration component is a part of their proposal?
Answer: The agency would not prohibit an offeror from bidding on the benefits administration service as long as they can meet the mandatory and minimum service requirements in the request for proposal.
5. Is the goal to have only 1 contract with 1 vendor for the brokerage and administration?
Answer: The State seeks to award to a Benefit Administration vendor who can provide voluntary benefits directly or through a subcontracted vendor (broker of record).
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