ESBD_369756_1722028140966_SBA-24-218 Prescription Drug Savings Plan RFP.pdf

THE TEXAS A&M UNIVERSITY SYSTEM

Office of Procurement and HUB Program

REQUEST FOR PROPOSAL

RFP NUMBER: RFP01-SBA-24-218

Prescription Drug Savings Program

PROPOSAL MUST BE RECEIVED PRIOR TO:

2:00 P.M. Central Time on August 23, 2024

EMAIL RFP RESPONSES TO:

soprocurement@tamus.edu

Subject Line: SBA-24-218 – Prescription Drug Savings Program

NOTE: Proposal responses must be received by The Texas A&M University System Office of Procurement and HUB Program before the date and time specified for receipt of proposal in Section 2.3.

REFER INQUIRIES TO:

Jeff Zimmermann, Executive Director Procurement and Business Services | HUB Program

The Texas A&M University System soprocurement@tamus.edu

All proposals shall become the property of The Texas A&M University System and the state of Texas upon receipt.

Proposals may be subject to public review after contracts have been executed. Refer to Section 4.9 for more information regarding confidential and proprietary information.

mailto:soprocurement@tamus.edu mailto:Soprocurement@tamus.edu

The Texas A&M University System RFP01 SBA-24-218 Page 2 of 39

TABLE OF CONTENTS

SECTION 1. INTRODUCTION _________________________________________________________________ 4

1.1 Scope

1.2 Background

1.3 Plan Background

1.4 Enrollment

1.5 Purpose

1.6 Benefits Philosophy

1.7 Priorities/Expectations

1.8 Calendar of Events

1.9 Performance Period

SECTION 2. INSTRUCTIONS FOR RESPONDENTS __________________________________________________ 7

2.1 General Information

2.2 Examination of the Request for Proposal

2.3 Submittal Instructions

2.4 Proposal Components

2.5 Inquiries and Interpretations

2.6 Selection Process

SECTION 3. SCOPE OF WORK _______________________________________________________________ 11

3.1 Required Services

3.2 Current Status of PDSP Plan

3.3 Funding

3.4 Contract Documents

3.5 Qualifications of Respondents

SECTION 4. PROPOSAL RESPONSE ___________________________________________________________ 13

4.1 Cover Letter

4.2 Company Profile

4.3 Organizational Chart

4.4 Staffing…………………………………………………………………………………………………………………………………………14

4.5 Installation Team Staffing

4.6 References

4.7 Certification

4.8 Questionnaire

4.9 Confidential and Proprietary Information

4.10 Deviations

4.11 Alternative Plan Design

4.12 Supplemental Information

4.13 HUB Subcontracting Plan

SECTION 5. GENERAL TERMS AND CONDITIONS ________________________________________________ 17

Exhibit A – Execution of Offer

Exhibit B – Non-Collusion Affidavit

Exhibit C – Insurance Requirements

The Texas A&M University System RFP01 SBA-24-218 Page 3 of 39

Exhibit D – Questionnaire

Exhibit E – HIPAA Business Associate Agreement

The Texas A&M University System RFP01 SBA-24-218 Page 4 of 39

SECTION 1 - INTRODUCTION

1.1 Scope

The Texas A&M University System (“A&M System”) is seeking responses to its Request for Proposals (“RFP”) from qualified vendors (“Respondent”) licensed to operate in the state of Texas to provide a Supplemental Prescription Drug Savings Program (“PDSP”) for the plan year beginning September 1, 2024. The A&M System desires proposals that represent the best combination of quality and cost.

It is the intent of the A&M System to establish a services agreement (“Agreement”) with one vendor to meet these needs. The resultant Agreement will be between the selected vendor and the A&M System.

By submitting responses, each Respondent certifies that it understands this RFP and has full knowledge of the scope, nature, quality, and quantity of the work to be performed, the detailed requirements of the services to be provided, and the conditions under which the services are to be performed. Each Respondent also certifies that it understands that all costs relating to preparing and responding to this RFP will be the sole responsibility of the Respondent.

1.2 Background

The Texas A&M University System is one of the largest systems of higher education in the nation, with a budget of $7.3 billion. Through a statewide network of 11 universities, a comprehensive health science center, eight state agencies, Texas A&M-Fort Worth and Texas A&M-RELLIS, the Texas A&M System educates more than 157,000 students and makes more than 21 million additional educational contacts through service and outreach programs each year. System-wide, research and development expenditures exceed $1 billion and help drive the state’s economy. More information about The Texas A&M University System and all its member universities and agencies (“Member” or “Members”) can be found at the A&M System About page.

1.3 Plan Background

The A&M System, a state governmental employer, currently sponsors a self-funded, non-ERISA group health plan, The Texas A&M University System Group Health Program (the “A&M Care Plan”), comprised of three plans: the A&M Care Plan, the 65 Plus Medicare Advantage Plan (PPO), and the A&M Care J Plan. The A&M Care Plan is a preferred provider organization (“PPO”) offered to all benefits eligible employees (except those on a J-1 or J-2 visa) and Medicare eligible retirees regardless of where they live or work. The 65 Plus Medicare Advantage Plan (PPO) is offered to Medicare eligible retirees if the retiree and covered spouse (if applicable) are disabled, 65 or older, enrolled in Medicare Parts A and B, and not a “working retiree” that would normally meet the requirements for active coverage. The 65 Plus Medicare Advantage Plan (PPO) has a Part D Employee Group Waiver Plan as the prescription drug benefit. The A&M Care J Plan meets the visa requirements and only employees on a J-1 or J-2 visa may enroll in this plan.

The A&M System currently contracts with Blue Cross and Blue Shield of Texas for administration of the A&M Care Plan, 65 Plus Medicare Advantage Plan (PPO), and J Plan. Express Scripts is the Pharmacy Benefit Manager (PBM) for the administration of the self-insured prescription drug plans. The prescription drug plan is a carve-out program, providing prescription drug benefits for the plans.

The self-funded health plans are operated by the A&M System Benefits Administration office (“SBA”) and SBA is considered a “covered entity” under the Health Insurance Portability and Accountability Act of 1996 and its implementing regulations (“HIPAA”). As such, SBA must comply with all provisions of HIPAA regarding all privacy and security measures relevant to the operations of the programs within SBA when operating in a capacity subject to HIPAA. Additionally, any person or entity who performs functions or activities on behalf of or provides certain services to a covered entity that involve access to protected health information are considered business associates under HIPAA. As such, SBA requires the selected http://www.tamus.edu/about/

The Texas A&M University System RFP01 SBA-24-218 Page 5 of 39

Respondent to execute the HIPAA Business Associate Agreement (“HIPAA BAA”) attached as Exhibit E.

The current vendor for the Prescription Drug Saving Plan is Prescription Care Management (PCM). The SBA website is available at https://www.tamus.edu/benefits/ to review details of the current benefit plans offered by the A&M System.

1.4 Enrollment

The A&M System currently has 44,933 benefits-eligible employees and retirees. Of the 44,933 eligible employees and retirees, 33,216 are currently enrolled in the self-insured A&M Care plans. Of the 33,216 enrolled in the plans, 25,432 are in the A&M Care Plan and J Plan, and 7,784 are in the 65 Plus Medicare Advantage Plan (PPO). There are 59,858 covered lives, including employees, retirees, survivors, dependents, and COBRA participants.

1.5 Purpose

This RFP provides detailed information about the A&M System and its benefit needs and provides the required format for the vendor’s response. Proposals containing any deviations may be considered by the A&M System, however, deviations must be identified and described in detail in order to be considered.

The intent of this RFP is to allow all Respondents to provide a sufficient amount of data that will enable the A&M System to assess the proposal and qualifications of the Respondent. To this end, each Respondent shall furnish, as a part of the proposal, a complete general description of experience in their respective fields.

Respondent is to independently investigate and verify, at its own discretion, all information acquired from the A&M System or from any other source which is relied on by Respondent in the preparation of its proposal.

1.6 Benefits Philosophy

The A&M System’s benefit programs are viewed as an important part of the total compensation package.

It is expected that the benefits offered will attract new employees, promote the retention of career employees and reward retired employees for their service. Therefore, superior quality and responsiveness to participants’ needs are essential.

The A&M System is committed to providing eligible employees, retired employees and their dependents access to group benefit plans of the highest quality at the lowest possible cost to the A&M System and to its employees. The manner in which the programs are funded demands strict containment of costs in order to maximize benefits for the beneficiaries.

The prescription drug plan is available to all benefit-eligible employees, graduate student employees, retirees, and their dependents at all System Members. The authority to plan, implement and control the A&M System’s benefit programs has been assigned to the Director of System Benefits Administration (the Director). The Director has the responsibility for the design and development of System-wide health plans, and for the operation and administration of other employee benefit plans.

The System Benefits Administration (SBA) staff monitors plan experience, negotiates carrier contracts, maintains official records, and ensures quality, efficiency, and statutory compliance in the benefit plans.

SBA also maintains, reports, and analyzes claims and financial data related to the plans. It is the responsibility of each Member to inform employees and retirees of their insurance eligibility, advise them about options and perform enrollment and counseling functions. These activities are usually performed in the Human Resource and/or Payroll departments of each Member.

The plans are non-ERISA plans. However, for the most part, we comply with ERISA.

https://www.tamus.edu/benefits/

The Texas A&M University System RFP01 SBA-24-218 Page 6 of 39

One tool to provide the A&M System administration with a continuous evaluation of benefit plans is the System Employee Benefits Advisory Committee (SEBAC). SEBAC consists of representatives from each Member, retired employee representatives, and ex-officio members. Meetings are held several times per plan year between September and May to update participants on new developments and provide a forum for public comment. The conclusions of the committee are forwarded as recommendations to the Director for consideration or action.

1.7 Priorities/Expectations

Respondents should note the following priorities and expectations with regard to the possibility of the A&M System establishing a contractual relationship with any Respondent:

(a) Ensuring a Quality Level of Service. This priority encompasses the quality of the level of service that can be provided to all Members in a timely, cost-effective manner. The A&M System is seeking a Respondent that will ensure the provision of such quality in its delivery of service through proven training techniques and established metrics.

(b) Level of Experience and Expertise. Respondent must demonstrate its capabilities in providing the utmost level of experience and expertise to ensure successful implementation and delivery of services as determined by the A&M System.

(c) Delivery Efficiency as it Relates to Total Costs. Respondent must demonstrate its ability to deliver the required services in a cost-effective and timely manner while not sacrificing the quality required by the A&M System.

1.8 Calendar of Events

Activity Date

Release of Request for Proposal July 29, 2024

Deadline to Submit Questions August 5, 2024

Release of Addendum (if applicable) August 9, 2024

Responses Due August 23, 2024, by 2:00 p.m.

Presentation/Interview (if applicable) August 30, 2024

Selection of Respondent August 31, 2024

The A&M System will make every effort to adhere to the above schedule. The schedule, however, is subject to change. This may be in the event that further clarification of responses or terms of contract are in the best interest of the A&M System and/or in the event the A&M System requires more time to assure that the selection of the Respondent is in accordance with its policies, rules and regulations, as well as actual timing needs.

1.9 Performance Period

Should the A&M System, in its sole discretion, enter into an agreement with the successful Respondent as a result of this RFP, the agreement shall be effective as of the date that is agreed upon by the A&M System and successful Respondent. The A&M System anticipates that the initial term of such Agreement will extend for three (3) years, with the option to renew for up to an additional three (3) years, providing all parties mutually agree on the extension. Any extensions shall be at the same terms and conditions plus any approved changes to be determined by the A&M System and negotiated in writing with the successful Respondent. The A&M System reserves the right to amend the terms of the Agreement as necessary to meet state or federal requirements.

The Texas A&M University System RFP01 SBA-24-218 Page 7 of 39

SECTION 2 – INSTRUCTIONS FOR RESPONDENTS

2.1 General Information

This RFP outlines the services and proposal requirements in Section 3. Proposals are to be in accordance with the outline and specifications contained herein, are to remain in effect a minimum of 180 days from the date of submission and may be subject to further extensions as negotiated. A statement to this effect should be contained in the Respondent's cover letter.

Each proposal shall be prepared simply and economically, providing a straightforward and concise description of the Respondent’s ability to meet the requirements of this RFP. Emphasis shall be on completeness, clarity of content and responsiveness to the offer requirements.

This RFP contains specific requests for information. Respondents are encouraged to examine all sections of this RFP carefully, in that the degree of interrelationship between sections is critical. In responding to this RFP, Respondents are encouraged to provide any additional information they believe relevant.

Clause headings appearing in this RFP have been inserted for convenience and ready reference. They do not purport to define, limit or extend the scope or intent of the respective clauses. Whenever the terms “must", "shall", "will", "is required”, or "are required” are used in the RFP, the subject being referred to is to be a required feature of this RFP and critical to the resulting submittal.

In those cases where mandatory requirements are stated, material failure to meet those requirements could result in disqualification of the Respondent's response. Any deviation or exception from RFP specifications must be clearly identified by the Respondent in its submittal.

Expenses for developing and presenting proposals shall be the entire responsibility of the Respondent and shall not be chargeable to the A&M System. All supporting documentation submitted with this submittal will become the property of the A&M System.

By submitting a proposal, Respondent agrees that Respondent and Respondent’s employees and agents are independent vendors and have no employer-employee relationship with the A&M System. The A&M System shall not be responsible for the Federal Insurance Contribution Act payments, federal or state unemployment taxes, income tax withholding, Workers’ Compensation Insurance payments, or any other insurance payments, nor will the A&M System furnish any medical or retirement benefits or any paid vacation or sick leave.

The A&M System reserves the right to alter the specifications of its benefit programs and subsequently negotiate with the selected Respondent as needed to comply with any required changes.

In the event of a change in condition which may affect the Prescription Drug Savings Program for which proposals are solicited, the A&M System will expect a good-faith effort from any Respondent selected, to absorb additional liabilities during the term of the contract without requiring rate increases until the next following renewal date. Such changes in condition include, but are not limited to, the following:

• Rules of the Texas Department of Insurance.

• Opinions of the Attorney General of the state of Texas.

• Federal and State statutes, court decisions and regulations from agencies and departments that may affect employment and benefit programs.

2.2 Examination of the Request for Proposal

Before submitting, each Respondent will be held to have examined A&M System requirements outlined in Section 3 and satisfied itself as to the existing conditions under which it will be obligated to perform in accordance with the specifications of this RFP.

The Texas A&M University System RFP01 SBA-24-218 Page 8 of 39

No claim for additional compensation will be allowed due to unfamiliarity with the specifications and/or existing conditions. It shall be understood that the Respondent has full knowledge of all the existing and/or revised conditions and accepts them "as is."

2.3 Submittal Instructions

All proposals must be received by the A&M System no later than 2:00:00 p.m. Central Time, August 23, 2024 electronically via email to soprocurement@tamus.edu with the subject line of “RFP01 SBA-24-218 – Prescription Drug Savings Program”. The sent time indicated within the A&M System email server shall be used for the receipt and acceptance of the response. A file sharing tool may be used to submit the proposal response if large file sizes are an issue. If opting to use a file sharing tool it is recommend to send a test file prior to the due date.

It is each Respondent’s responsibility to ensure that the entire submittal response is received by the A&M System by the deadline stated above regardless of submission method. Late submittals will not be considered under any circumstances.

Submittal File Format: Submission shall be saved as two (2) separate files in Adobe Portable Document Format (PDF) according to the items listed below and named as such: I) “company name – Proposal” and II) “company name – Forms”.

2.4 Proposal Components

The following documents and all requirements from noted sections are to be returned as part of Respondent’s proposal submittal. Failure to include these documents may be basis for response disqualification.

I. Proposal

Cover Letter (Section 4.1)

Table of Contents

Proposal (Section 4.2 – 4.12)

II. Forms

Signed Execution of Offer (Exhibit A)

Non-Collusion Affidavit (Exhibit B) – signed and notarized

HUB Subcontracting Plan (Section 4.13)

Proposal format: The proposal response shall be presented in the order listed above with sections noted accordingly for easy reference. The Table of Contents shall provide page numbers for each section of the proposal.

Forms: Additional information regarding the Execution of Offer and Non-Collusion Affidavit.

• Execution of Offer: The signature in the Execution of Offer within the electronic copy shall serve as the official signature of record. Signature can be done electronically with DocuSign, Adobe or another similar tool.

• Non-Collusion Affidavit: The Respondent signature on this document may be done electronically with DocuSign, Adobe or another similar tool. An agreement may not be executed with the awarded Respondent until this document is fully signed and notarized.

mailto:soprocurement@tamus.edu

The Texas A&M University System RFP01 SBA-24-218 Page 9 of 39

2.5 Inquiries and Interpretations

All technical questions concerning this RFP are to be directed, in writing, to Jeff Zimmermann, Executive Director, Procurement and Business Services to soprocurement@tamus.edu. Respondent may not contact other individuals at the A&M System to discuss any aspect of this RFP, unless expressly authorized by the Procurement Office to do so.

Questions regarding the RFP, including questions for more data or information beyond that included in this RFP and any attachment, should be presented in writing. Deadline for submission of questions is August 5, 2024.

Responses to inquiries which directly affect an interpretation or change to this RFP will be issued in writing by addendum/amendment and posted to the Electronic State Business Daily (ESBD) according to the schedule in Section 1.8. CLICK HERE for the posting to obtain all documents related to this RFP. You may also copy and paste the following link (http://www.txsmartbuy.com/esbd) into your browser and input Agency Number “710” and select “Posted” for the Status.

All such addenda/amendments issued by the A&M System prior to the time that proposals are received shall be considered part of the RFP, and the Respondent shall consider and acknowledge receipt of such within Exhibit A. Addendums issued and not acknowledged by the Respondent shall be considered accepted. Only formal written addenda issued by the A&M System in response to an inquiry shall be binding. Oral and other interpretations or clarification will be without legal effect.

2.6 Selection Process

Proposals submitted in response to this RFP shall be evaluated on the basis of the criteria listed below with the selection being the proposal that the A&M System deems to represent the best value to the A&M System. The list of criteria is not exhaustive and is not listed in order of importance. While the criteria shall provide the basis for an objective evaluation of each proposal, the experience and judgment of the SBA staff and the evaluation committee shall also be important in the selection process.

• Compliance with the requirements listed in the RFP

• Vendor License

• Financial Strength and Stability

• Administrative Capability

• Customer/Member services

• Past experience

• Costs

• Organizational flexibility

• References

• Finalist presentations, if necessary

The A&M System is not required to select the lowest priced proposal but will take into consideration other factors such as those enumerated above.

The RFP provides the information necessary to prepare and submit proposals for consideration by the A&M System. All properly submitted proposals will be reviewed, evaluated, scored and/or ranked by the A&M System. The A&M System may compile a final ranking of the Respondents in the order that they provide the overall “best value” to the A&M System based on an evaluation of the responses to the RFP. The A&M System may interview one or more of the top ranked Respondents as part of the evaluation process.

After proposal tabulation and such investigation of Respondents as the A&M System deems appropriate, an award may be made to the Respondent whose proposal it judges to represent the best value to the A&M System. Final determination for award of the contract will be made on the overall best value to the A&M System. The A&M System reserves the right to reject any or all proposals.

mailto:soprocurement@tamus.edu http://www.txsmartbuy.com/esbd/filter=T&agencyNumber=710&solStatus=1 http://www.txsmartbuy.com/esbd

The Texas A&M University System RFP01 SBA-24-218 Page 10 of 39

The selection of the successful proposal may be made by the A&M System on the basis of the proposals initially submitted, without discussion, clarification, or modification. In the alternative, selection of the successful proposal may be made by the A&M System on the basis of negotiation with any of the Respondents. The A&M System shall not disclose any information derived from the proposals submitted by competing Respondents in conducting such discussions.

All proposals must be complete and convey all of the information requested to be considered responsive.

If a proposal fails to conform to the essential requirements of the RFP, the A&M System alone will determine whether the variance is significant enough to consider the proposal susceptible to being made acceptable, and therefore a candidate for further consideration, or not susceptible and therefore not considered for award.

A&M System may perform reference checks and seek further information, as needed from all Respondents whose proposals A&M System, at its discretion, considers viable, based on the initial evaluation and scoring.

The Respondent’s response to this requirement officially authorizes A&M System to contact these organizations to discuss the services and other considerations which the Respondent has provided to such organizations and authorizes the organizations to provide such information to A&M System and Respondent shall and hereby does release and hold harmless A&M System, the state of Texas, and the organization of any and all liability whatsoever, in connection with providing and receiving all such information. Any negative responses received from reference checks may be grounds for disqualification of the proposal.

The A&M System may cancel this RFP or reject proposals at any time prior to an award and is not required to furnish a statement of the reasons why a particular proposal was not deemed to be the most advantageous. The selection of the successful proposal may be made by the A&M System on the basis of the proposals initially submitted, without discussion, clarification, or modification. In the alternative, selection of the successful proposal may be made by the A&M System on the basis of negotiation with any of the Respondents. The A&M System shall not disclose any information derived from the proposals submitted by competing Respondents in conducting such discussions.

By submitting its proposal in response to this RFP, Respondent accepts the evaluation process and acknowledges and accepts that determination of the “best value” firm will require subjective judgments by the A&M System.

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SECTION 3 – SCOPE OF WORK

3.1 Required Services

Notwithstanding other sections of this RFP which describe administrative interactions, Respondents are advised of the administrative requirements listed in this section of the RFP. The selected Respondent will become responsible for these items and services to the A&M System upon the award of any contract. Any cost associated with these items and services must be included in your proposal.

a. Benefit contracts, affirmed by the A&M System as to form and content in accordance with state and federal statutes, and technical and legal assistance in the administration thereof.

b. Management agreements, in addition to any benefit contracts, which formalize the A&M System’s relationship with any vendor.

c. Communication materials necessary for the proper explanation of the services subject to editing of format, content and final approval by the A&M System.

d. Monthly, quarterly, and annual management reports, including but not limited to utilization, member satisfaction, and case management information as agreed to by the A&M System and the Respondent.

e. File transfer and exchange with the A&M System’s pharmacy benefit manager.

f. All outreach to physicians and/or employees in regards to the program.

3.2 Current Status of PDSP Plan

The PDSP is intended to decrease the pharmacy spend of the A&M System Health Plan and save the A&M System money while providing quality care to participants via a HIPAA compliant, rules-driven, real-time, non-disruptive program that creates additional savings with minimal impact on the participating population. The program shall be accomplished with no benefit design or formulary changes as well as no additional prior authorization or step therapy components.

The PDSP provider shall:

a. Reduce pharmacy drug spend without changing benefits or plan designs.

b. Perform contracted services/tasks and produce the required PDSP requirements by the due dates.

c. Provide all hardware and software needed to meet all requirements in this RFP. This includes all necessary supplies, equipment and staff support required to generate these requirements.

d. Provide support services for the duration of the contract.

3.3 Funding

Any PDSP considered must decrease expense while not decreasing the care or options to the employee group. Savings should be guaranteed at a rate above any applicable fees.

The A&M System’s plan year corresponds to the State and A&M System fiscal years which begin on September 1 and end on August 31.

3.4 Contract Documents

The awarded Respondent will provide a first draft of a services agreement (“Agreement”) between both parties, HIPAA Business Associate Agreement (draft provided in Exhibit E), and any other required legal documentation to the appropriate A&M System Benefits Administration point of contact in electronic format (preferably MS WORD) for review and edits. In addition to the standard terms and conditions included in your Administrative Services Agreement, the selected Respondent must also include the

The Texas A&M University System RFP01 SBA-24-218 Page 12 of 39 following items:

• Mandatory Dispute Resolution language – The dispute resolution process provided in Chapter 2260, Texas Government Code, and the related rules adopted by the Texas Attorney General pursuant to Chapter 2260, shall be used by the A&M System and Respondent to attempt to resolve any claim for breach of contract made by Respondent that cannot be resolved in the ordinary course of business. Respondent shall submit written notice of a claim of breach of contract under this Chapter to the Deputy Chancellor and Chief Financial Officer for the A&M System, who shall examine Respondent’s claim and any counterclaim and negotiate with Respondent in an effort to resolve the claim.

• General Release and Indemnification – Language should be included that will defend, release, hold harmless, and unconditionally indemnify the A&M System, each and all of its System Members, its officers and employees, and the State of Texas from:

o Any liability that might result from discriminatory organizational practices; and o Any liability that arises from the acts or omissions of any officer, employee, agent, or representative of the contractor or individual or organization under contract to the contractor for specific services related to the administration of the A&M System’s benefit plans.

• Ability to Audit – Language should be included that will allow for audits to be performed by either the A&M System internal audit staff, the State Auditor’s Office or a third-party auditor contracted with the A&M System.

Submission and completion of these documents is not required as part of the RFP response.

3.5 Qualifications of Respondents

All entities must be able to demonstrate sufficient financial stature and operational capacity to accommodate the needs of the A&M System. To affirm financial capability, the Respondent must submit all documentation as requested in the Company Profile to be included in the RFP response (see Section 4.2).

All entities responding to this RFP must certify (see Section 4.7) that they are licensed to do business in the state of Texas and permitted to contract with the State or any of its subdivisions.

The Texas A&M University System RFP01 SBA-24-218 Page 13 of 39

SECTION 4 – PROPOSAL RESPONSE

Respondents are instructed to respond using the proposal format included in this RFP in order to expedite analysis and comparison of proposals received. Failure to use the stated format or failure to provide complete responses, may, at the A&M System’s option, disqualify the Respondent.

A complete proposal shall consist of the following items:

4.1 Cover Letter

This letter shall summarize interest and ability to provide the scope of this RFP, include a statement to the validity of the proposal, and provide a contact name for this RFP response, including title, address, telephone number, facsimile, and email address.

4.2 Company Profile

4.2.1 Provide a contact name for this RFP response, including title, address, telephone number and email address.

4.2.2 Legal Name: _____________________

DBA Name:______________________

Number of Years in Business: _______

Type of Operation (i.e., Individual, Partnership, Corporation)

Number of Employees: ______(company wide)

Annual Sales Volume: _____________________________(company wide)

4.2.3 Provide a general overview of the company, including where the company is headquartered, if it has a major base of operation in Texas, and if it has operated under other names.

4.2.4 Include a narrative history of the firm and its background in providing employee group benefits.

Explain the added value or service that your organization provides that distinguishes it from all others. Is your organization privately or publicly held?

4.2.5 Financial Stability – Respondent shall provide the following to verify financial stability:

• A copy of your company’s audited financial statements for the past two (2) years; or

• A financial rating of your company and any documentation (such as a Dunn and Bradstreet Analysis) which indicates the financial stability of your company.

4.2.6 Describe your company’s disaster recovery and contingency plans. Have you ever tested or actually implemented these plans?

4.2.7 Is your company currently for sale or involved in any transaction to expand or to become acquired by another business entity? If yes, please explain the impact both in organizational and directional terms.

4.2.8 Provide any details of all past or pending litigation or claims filed against your company that would negatively impact your company’s performance under an agreement with the A&M System.

4.2.9 Is your company currently in default on any loan agreement or financing agreement with any bank, financial institution, or other entity. If yes, specify date(s), details, circumstances, and prospects for resolution.

4.3 Organizational Chart

Provide an organizational chart identifying the chain of authority through the company’s CEO for this

The Texas A&M University System RFP01 SBA-24-218 Page 14 of 39 account. Include names, addresses, titles, email addresses and telephone numbers for each individual.

4.4 Staffing

Describe the staff involved in the management of this account. Include names, titles, addresses, email addresses, and brief biographies of the following individuals or their organizational equivalents who will be assigned to the A&M System account(s):

• National/Governmental Accounts, Director

• Account Manager

• Customer Service

• Eligibility File Coordinator

4.5 Installation Team Staffing

Describe the installation team and provide the names, titles addresses, email addresses, and brief biographies of any individuals who are not included in Section 4.4 above.

4.6 References

4.6.1 Provide the name, address, email address, and telephone number of the primary contact at two public entities or corporations and two major universities of similar size and with decentralized administration that are current clients of your company.

4.6.2 Provide two references, including the name, address, email address, and telephone number for the individual who will have primary responsibility for the A&M System account.

4.6.3 Provide the name, address, email address, and telephone number of the primary contact at two large accounts that have cancelled their coverage with your organization within the past year.

4.7 Certification

4.7.1 Certify that the organization has a current license from the Texas Department of Insurance (TDI) to serve in Texas, if applicable, is in good standing with the TDI and disclose any actions that are pending or in process with TDI.

4.7.2 Certify that no commissions, broker or finders fees are included in the quoted fees/premiums or will be paid to any individual, agency or company, if your company is selected to provide coverage for the A&M System.

4.7.3 Certify that enrollment of any employee, retired employee, or dependent of the A&M System will not be limited or discouraged by “quota” or other restriction.

4.7.4 Certify against discriminatory selection or segregation of the total group of eligible employees of the A&M System by excluding, or seeking to exclude, or otherwise discriminating against any of the following classes:

4.7.5 Women: Title VII of the Civil Rights Act of 1964, as amended; Executive Order 11246 of 1965, as amended

4.7.6 Pregnant Women: Pregnancy Discrimination Act of 1978, PL95-555

4.7.7 Racial Minorities: Title VII of the Civil Rights Act of 1964, as amended

4.7.8 Aged and Retired: Age Discrimination in Employment Act of 1967, as amended; Tax Equity and Fiscal Responsibility Act of 1983 (TEFRA); Deficit Reduction Act of 1984 (DEFRA); Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA)

4.7.9 Disabled Individuals and those with catastrophic and terminal diseases: Sections 503 and 504 of the Rehabilitation Act of 1973, Americans with Disabilities Act of 1990

The Texas A&M University System RFP01 SBA-24-218 Page 15 of 39

4.8 Questionnaire

Complete the Questionnaire found in Exhibit D.

4.9 Confidential and Proprietary Information

In order to protect and prevent inadvertent access to confidential information submitted in the response, the Respondent is to provide a schedule of all pages that the Respondent in good faith, and with legally sufficient due diligence, considers to contain any confidential and/or proprietary information.

Information in any tangible form which is submitted by Respondents will be treated as confidential until such time as a contract is executed. After that time, the A&M System is required to provide access to certain records in accordance with the provisions of Chapter 552, Tex. Government Code, now known as the Texas Public Information Act (TPIA), formerly known as the Open Records Act. By submitting a response, the Respondent acknowledges and agrees that the A&M System shall have no liability to the Respondent or to any other person or entity for disclosing information in accordance with the TPIA. The A&M System shall not have any obligation or duty to advocate the confidentiality of the Respondent’s material to the Texas Attorney General or to any other person or entity. The Respondent further understands and agrees that upon the A&M System’s receipt of a TPIA request for a copy of the Respondent contract, including the response and any exhibits to the contract and response, the only documents that the A&M System shall treat as the Respondent’s confidential and proprietary information shall be the documents the Respondent identifies as required above. It is the Respondent’s sole obligation to advocate in good faith the confidential or proprietary nature of any information it provides in its response, and the Respondent understands that the Texas Attorney General may nonetheless determine that all or part of the claimed confidential or proprietary information shall be publicly disclosed.

4.10 Deviations

In an effort to compare “apples to apples”, deviations to the RFP and the current plan design are strongly discouraged. The Respondent shall enumerate and provide a detailed description of any deviations to provisions contained in the RFP. If your organization is unable to perform any of the required administrative services or unable to administer any portion of the current services provide details.

4.11 Alternative Plan Design

The response to this RFP should be based on the same benefit design that is currently in place. No deviations to this plan design will be accepted at this time.

4.12 Supplemental Information

Information or exhibits provided that are not specifically requested in Sections 4.1 through 4.11 above should be included at the end of the proposal behind a divider page entitled “Supplemental Information.”

4.13 HUB Subcontracting Plan

It is the policy of the state of Texas and the A&M System to encourage the use of Historically Underutilized Businesses (“HUB”) in our prime contracts, subcontractors, and purchasing transactions. The goal of the HUB program is to promote equal access and equal opportunity in A&M System contracting and purchasing.

Subcontracting opportunities are defined as those opportunities contracted with a vendor to work, supply commodities, or contribute toward completing work for a governmental entity. Each Respondent shall indicate what portion(s) of the scope they anticipate to subcontract, if any. The Respondent is required to submit a properly completed HUB Subcontracting Plan (“HSP”) form to document their good faith effort to solicit and use State of Texas certified HUB vendors to perform portion(s) of the scope as defined in this

RFP.

Subcontracting opportunities are possible for this RFP and, therefore, an HSP is required. Failure to submit

The Texas A&M University System RFP01 SBA-24-218 Page 16 of 39 a comprehensive HSP form with the RFP response will be considered a material failure to comply with the requirements of the RFP, and will result in rejection of the submittal. The HUB Subcontracting Plan (HSP) form shall be submitted with the RFP response by the date and time specified.

The HUB participation goal for this RFP is 15% and every Respondent shall endeavor to achieve this goal.

HSP Form Requirements

The HSP form can be found here: https://www.tamus.edu/business/hub-procurement/hub-programs-3/.

The HUB goal stated in this RFP takes precedence over the standard HUB goal stated on the HSP form, unless otherwise noted. The Respondent shall complete Section 1, Section 2a, and Section 4 of the HSP form, properly completing all subsequent steps as stated on the HSP form.

If the Respondent shall subcontract with a vendor(s) with which a pre-existing agreement exists, the Respondent shall list each vendor in Section 2b of the HSP form and provide an explanation with the RFP response as to why solicitations were not done (e.g. contractual requirements). If the Respondent shall subcontract with a vendor(s) with which no pre-existing agreement exists, then the Respondent shall make a good faith effort to utilize Texas certified HUBs according to the instructions as stated on the HSP form, which may include providing supporting documentation.

If the Respondent shall self-perform the entire scope, a statement which attests that the Respondent shall perform the subcontracting opportunities identified by the A&M System with its own employees and resources is required. This statement shall be documented in Section 3 of the HSP form.

For information regarding the HSP form requirements, please contact Ms. Porschia Tolbert, A&M System HUB Program Director, at so-hubprogram@tamus.edu for assistance. Respondents may submit a draft of the HSP form at least five business days prior to submittal of their response to the RFP for review by Ms.

Tolbert.

https://www.tamus.edu/business/hub-procurement/hub-programs-3/ mailto:so-hubprogram@tamus.edu

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SECTION 5 - GENERAL TERMS AND CONDITIONS

A. TERMS AND CONDITIONS: The A&M System reserves the right to accept, reject, modify, and/or negotiate any and all submittals received in conjunction with this RFP. It reserves the right to waive any defect or informality in the submittals on the basis of what it considers to be in its best interests. Any submittal which the A&M System determines to be incomplete, conditional, obscure, or which has irregularities of any kind, may be rejected. The A&M System reserves the right to award to the company, or companies, which in our sole judgment, will best serve our long-term interest.

This RFP in no manner obligates the A&M System to the eventual purchase of any products or services described, implied, or which may be proposed, until confirmed by written agreement, and may be terminated by the A&M System without penalty or obligation at any time prior to the signing of a contract.

The Respondent must include a formal copy of any Respondent terms and conditions applicable to this transaction. Evaluation and acceptance and/or modification of these terms and conditions by the A&M System Office of General Counsel are essential prior to the execution of any resultant Agreement. In the event the Respondent does not supply terms and conditions with their submittal, A&M System terms and conditions will govern this transaction.

B. GOVERNING LAW: Respondent agrees that, in the event of a dispute, laws of the State of Texas will prevail.

C. NON-DISCRIMINATION: The parties agree that in the performance of any contract they shall not discriminate in any manner on the basis of race, color, national origin, age, religion, sex, genetic information, veteran status or disability protected by law. Such action shall include, but is not limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation. By submitting a submittal, Respondent certifies that it will conform to the provisions of the federal Civil Rights Act of 1964, as amended.

D. CIVIL RIGHTS REQUIREMENTS: All Respondents must comply with applicable civil rights laws.

E. IMMIGRATION REFORM AND CONTROL ACT OF 1986: By submitting a state of qualification, the Respondent certifies that it does not, and will not, during the performance of any resultant Agreement, employ illegal alien workers or otherwise violate the provisions of the federal Immigration Reform and Control Act of 1986, as amended.

F. DEBARMENT STATUS: By submitting a proposal, Respondent certifies that it is not currently debarred from submitting submittals on contracts nor is it an agent of any person or entity that is currently debarred from submitting bids on contracts.

G. PUBLIC INFORMATION: Respondent is hereby notified that the A&M System strictly adheres to all statutes, court decisions, and the opinions of the Texas Attorney General with respect to disclosure of public information. The A&M System may seek to protect from disclosure all information submitted in response to this RFP until such time as the resultant Agreement is executed. Upon execution of the resultant Agreement, the A&M System will consider all information, documentation, and other materials requested to be submitted in response to this RFP to be of a non-confidential and non-proprietary nature and therefore subject to public disclosure under the Texas Public Information Act, Texas Government Code, Chapter 552. Respondent will be advised of a request for public information that implicates its materials and will have the opportunity to raise any objections to disclosure to the Texas Attorney General

H. ALTERNATE PROPOSALS: A&M System reserves the right to consider alternate proposals submitted by Respondents. Alternate proposals shall be clearly marked “Alternate” with the proposed alternates clearly defined and all pricing/cost advantages included, if applicable.

I. ANTITRUST: Respondent hereby assigns to the A&M System, any and all claims for overcharges associated with any contract resulting from this RFP which arise under the antitrust laws of the United States 15

The Texas A&M University System RFP01 SBA-24-218 Page 18 of 39

U.S.C.A. Section 1, et seq. (1973) and which arise under the antitrust laws of the State of Texas, Texas Business and Commercial Code Ann. Sec. 15.01, et seq. (1967).

J. EXECUTIVE HEAD OF A STATE AGENCY AFFIRMATION: In accordance with Section 669.003 of the Texas Government Code, relating to contracting with the executive head of a state agency, Respondent certifies that it is not (1) the executive head of the A&M System or any of its Members, (2) a person who at any time during the four years before the date of the contract was the executive head of the A&M System or any of its Members, or (3) a person who employs a current or former executive head of the A&M System or any of its Members.

K. REQUIRED CONTRACT TERMS: Respondent understands that the resultant Agreement will contain the following terms and conditions or, in the sole discretion of the A&M System, terms and conditions substantially similar to the following conditions (“Required Terms”). If Respondent takes exception to any of the Required Terms, Respondent will submit a list of exceptions as part of its proposal.

1. INDEMNIFICATION AND HOLD HARMLESS: The Respondent shall defend, indemnify and hold harmless the A&M System, Members, and their regents, employees and agents (collectively, the “A&M System Indemnitees”) from and against any third-party claims, damages, liabilities, expense or loss (each, a “Claim”) asserted against A&M System Indemnities arising out of any acts or omissions of Respondent or its employees or agents pertaining to the activities and obligations under this Agreement.

2. TERM: This Agreement shall commence upon execution and continue for three (3) years (the “Initial Term”) unless earlier terminated in accordance with the provisions of this Agreement. The parties may renew this Agreement for three (3) additional one-year terms (each, a “Renewal Term”, and collectively with the Initial Term, the “Term”) upon mutual written agreement signed by authorized representatives of both parties.

3. EARLY TERMINATION: The A&M System shall have the right to terminate this Agreement with the Respondent without penalty after a thirty (30) day’s written notice of termination to the Respondent under the following circumstances:

(a) Default of Respondent

It shall be considered a default whenever the Respondent shall:

i. Disregard or violate material provisions of the Agreement or A&M System instructions or fail to execute the work according to the agreed upon schedule of completion and/or time of completion specified, including extensions thereof, or fail to reach agreed upon performance results.

ii. Declare bankruptcy, become insolvent, or assign company assets for the benefit of creditors.

(b) Convenience of A&M System

Termination of this Agreement by the A&M System at any time for any reason.

Note: Any termination notice shall not relieve the Respondent of the obligation to deliver and/or perform prior to the effective date of the…