Attachment N - Deviations Exceptions -- 10.06.25.docx

This is an Attachment N Deviations/Exceptions form for South Dakota's Bureau of Human Resources and Administration's RFP #25RFP17863 for Medical Network and Pharmacy Administration Services. The form requires bidders to clearly identify all areas where their proposals deviate from the requested services, contract language, insurance requirements, and plan benefit features. Bidders must explicitly list any deviations rather than referencing their standard proposals or benefit summaries, as the State requires a thorough understanding of all proposed differences. The RFP seeks an Administrative Services Organization to provide claims administration, enrollment services, provider network management, medical management, and Pharmacy Benefit Manager services for approximately 12,435 active employees across four medical plans and one pharmacy plan. Proposals are due December 15, 2025, at 5:00 p.m. CDT, with a Letter of Intent and Offeror Privacy and Security Agreement required by November 7, 2025. The contract period runs five years from July 1, 2026, through June 30, 2031, with potential for two five-year renewals. Final vendor selection is anticipated by January 16, 2026, with implementation required 60 days prior to the FY27 Annual Enrollment period beginning April 15, 2026.

The State is self-insured for all medical plans and currently operates without stop-loss coverage, meaning the selected contractor will bear no specific or aggregate stop-loss risk. CVS Caremark currently administers pharmacy services, though the RFP does not definitively confirm them as the incumbent for comprehensive services. Evaluation will be conducted on a 100-point technical scoring basis considering specialized expertise, resources and availability, past performance, project management, cost, account management services, reporting capabilities, and network management adequacy. No specific set-aside designations or restrictions for disadvantaged enterprises are mentioned. The successful vendor must integrate with the State's existing technology infrastructure, including compliance with BIT Technology Standards, Single Sign-On integration with OAuth 2.0, and web application vulnerability scan requirements. Bidders must provide detailed implementation timelines, performance guarantees across five key areas, and demonstrate network adequacy through geoaccess reports showing provider access within specified distances.