Exhibit B - Offeror Response Questions for RFP AABA 2027-0049.pdf

DPA Solicitation Number:

RFP AABA 2027*0049

Health and Welfare Actuarial and Broker Consultant for the

State of Colorado

EXHIBIT B – OFFEROR RESPONSE QUESTIONS

Exhibit B - Offeror Response Questions

Offeror Response Requirements

1.1. This Exhibit contains technical and management questions aligned with the evaluation criteria defined in Exhibit A, Section 4: Technical Capabilities, Management

Capabilities, Overall Quality and Completeness, Cost Proposal, and Accessibility.

1.2. If an Offeror is capable of providing services that offer additional advantages or features beyond the scope of any questions, please explain in the space provided.

1.2.1. If there are associated costs, please provide them in the Cost Proposal section.

1.3. Please answer all questions in the following sections:

1.3.1. Minimum Qualifications

1.3.2. Technical Capabilities

1.3.3. Management Capabilities

1.3.4. Cost Proposal Component

1.3.5. Accessibility Compliance

Offeror Response Instructions

1. Provide your responses in Word format without password protection.

2. Answer each section of each question immediately after the question.

e.g. This is where Offerors should answer questions.

3. Answer completely, but concisely. The State values brevity and clarity.

4. Cost Proposal: Offerors must submit Section 3 (Cost Proposal) as a standalone, separate electronic file in their proposal package (e.g., [Offeror Name] - Section 3 Cost Proposal).

Offerors shall not include any pricing figures or financial terms in any other section of their technical proposal response.

Minimum Qualifications - Offeror’s Response

1.1. Answer the following questions with “Confirmed” or “Not confirmed.” If an Offeror does not meet any of the Minimum Qualifications, they will be eliminated from consideration.

1.1.1. Confirm that you have all licenses required to perform employee-benefit-related services in the State of Colorado.

1.1.2. Confirm that you understand the flat annual fee will be the sole compensation for performing the work. Offeror may be required to perform ad-hoc tasks, including non-routine and time-consuming research not specifically outlined in the Scope of Work, without additional compensation. If additional work represents a material expansion of scope, the Offeror may request a formal contract amendment; however, given the State’s budget, additional compensation beyond the flat annual fee is not guaranteed and extremely unlikely.

1.1.3. Confirm that you have at least one member on the State’s team who holds a

Fellow of the Society of Actuaries (FSA) designation from the Society of

Actuaries.

1.1.4. Confirm that you have at least five years of experience providing consultation services for public sector clients of a comparable size to the State of Colorado

(~39,000 employees).

1.1.5. Confirm that you have the ability to attend meetings in person, as necessary.

1. Technical Capabilities - Offeror’s Response

1.1. Discuss how you will assist in the procurement process including:

1.1.1. market research,

1.1.2. estimating budget,

1.1.3. drafting scopes of work,

1.1.4. drafting solicitation questions,

1.1.5. evaluating proposals,

1.1.6. and any suggestions you have for additional assistance in the process.

1.2. Discuss how you will participate in the State’s evaluation process for all benefits solicitations in the capacity the State chooses, either as a voting committee member, subject matter expert, or in any other capacity.

1.3. Confirm that you will provide a summary of bids, recommendations of each bidder’s strengths and weaknesses, and recommendations on how to proceed with the solicitation.

1.3.1. Discuss your approach to this process on complicated solicitations such as medical and pharmacy benefits management.

1.4. In two sentences or less, provide your organization’s business philosophy about employee benefits consulting and insurance brokerage services.

1.4.1. Why does your business philosophy provide the best benefit to the State?

1.4.2. How does your philosophy differentiate you from other firms?

1.5. Describe your expertise with Colorado-based organizations your assigned office has in soliciting, contracting, and managing:

1.5.1. Medical,

1.5.2. Pharmacy Benefit Management,

1.5.3. Reverse Auctioneers for PBMs,

1.5.4. Dental,

1.5.5. Vision,

1.5.6. Life,

1.5.7. Short Term Disability and Long Term Disability (discuss any experience your firm has with FAMLI specifically),

1.5.8. Health Savings Accounts (HSA),

1.5.9. Flexible Spending Accounts (FSA),

1.5.10. Benefits Administration Systems,

1.5.11. Wellness.

1.6. You may be required to testify before the State legislature or support The State while providing testimony. Discuss your qualifications.

1.7. Describe your ability to provide support for Communications. Describe the services you provide in this area, proprietary resources, and share information on subject matter experts who would work with the State. Provide a sample project plan describing how you would support us for open enrollment.

1.8. Describe your ability to provide support for Wellness. Describe the services you provide in this area, proprietary resources, and share biographical information on subject matter experts who would work with the State.

1.9. Describe your ability to analyze wellness ROI and program effectiveness. Specifically discuss your ability to analyze ROI on an employer-created program.

1.10. Describe your ability to provide support for Human Resources Technology / Benefits

Administration System solicitation and system implementation. Describe the services you provide in this area, proprietary resources, and share biographical information on subject matter experts who would work with the State. Please share examples of work product and analysis provided to help clients solicit, select, and implement the best vendor for their situation.

1.11. Describe how do you ensure your customers continue to comply with all local, state, and federal laws and best practices?

1.11.1. Please share biographical information for compliance subject matter experts who will provide services to the state.

1.11.2. Describe how you disseminate compliance information.

1.11.3. Describe your process for ensuring the state’s compliance with applicable benefits law.

1.12. Describe how you would prepare bid evaluation summaries for a solicitation evaluation committee which evaluates bids and bidders for criteria including but not limited to:

1.12.1. coverage,

1.12.2. pricing,

1.12.3. claim payment procedures,

1.12.4. Medical outcomes,

1.12.5. administration,

1.12.6. programs to address chronic illness,

1.12.7. customer service,

1.12.8. financial solvency,

1.12.9. and networks.

1.12.10. Please provide a copy of a solicitation you prepared for another state client and a copy of the analysis you provide to help them make their decision. Please also share copies of implementation project plans.

1.13. How would you negotiate the best possible contractual provisions with insurance carriers after reviewing all insurance policies and verifying coverage as quoted and identifying any gaps or overlaps in coverage?

1.14. Explain how you would assist the State in creating meaningful performance standards on any contracts the State enters.

1.15. Describe how you would proactively keep the State informed of new or changing markets, forms, products, laws, government regulations, industry trends, best practices, emerging benefit solutions and any other information that may affect the

State’s healthcare, benefits, and wellness programs.

1.16. Describe how you provide benchmarking studies of benefit trends, including surveys of other local or national portfolios similar in size to the State of Colorado, to help calibrate benefit offerings with employee and employer costs.

1.17. Provide at least three innovations that you would suggest for the State’s health insurance program.

1.18. Discuss your familiarity with the State’s budget process.

1.19. Provide details of how you would make recommendations for programs to reduce employee benefits cost, improve outcomes, and/or provide better service to State employees.

1.20. Describe how you help the State develop short and long-term strategic benefit plan and contribution strategies.

1.21. Discuss your resources and ability to provide the State with answers to technical and compliance questions.

1.22. Describe your ability to provide an analytic tool to allow the State to perform analysis on, at least, the following:

1.22.1. Population trends (demographics, conditions, etc.),

1.22.2. Quality of care and outcomes,

1.22.3. Medical cost trends,

1.22.4. Pharmacy cost trends,

1.22.5. Benchmarking,

1.22.6. Catastrophic claims,

1.22.7. Chronic conditions.

1.22.8. Describe what else you would provide analytics on?

1.23. Provide a sample report or screen shots of the tool to help the State determine the tool’s overall design and degree of user intuition while performing analytical tasks.

1.24. Describe the types and sources of normative data to help us benchmark our plan design, claims utilization, diagnosis, preventive care adherence, demographics, and financial performance.

1.25. The State has a fully-insured plan with Kaiser Permanente (KP) and a self-funded plan administered by Cigna, and MedImpact for pharmacy benefits. Discuss your ability to manage coexisting relationships with more than one health insurance carrier.

1.26. Describe other services, products, and innovations that your firm could provide the

State that are not listed above. Please provide basic pricing structures for these services, products, or innovations in the Cost Proposal section.

1.26.1. Note: these additional items are not scored in the evaluation but used solely for informational purposes.

1.27. Describe your firm’s process for the annual renewal and negotiation process. Describe how you coordinate renewal activities with all carriers and administrators.

1.28. Discuss innovations that you might suggest for the State’s non-health insurance related benefits.

1.29. Provide the percentage of your organization’s total revenue that is represented by its combined actuarial, auditing, procurement and general health benefits consulting.

What other services does your organization perform to make up the remaining total revenue?

1.30. Do you have a data warehouse to receive claims data from the State’s plans?

1.30.1. Will you provide direct access to the underlying data upon request?

1.30.2. Discuss what data, if any, you receive from KP. If you do not receive data from

KP, how will you help the State predict expenses, negotiate rates, and manage the KP contract?

1.31. In two sentences or less, provide your organization’s business philosophy with regard to employee actuarial services.

1.31.1. Why does your business philosophy provide the best benefit to the State?

1.31.2. How does your philosophy differentiate you from other firms?

1.32. Describe your expertise pricing potential plan design changes especially regarding annual rate setting. Discuss any systems/resources you use for this purpose and how/why your suite of systems/resources produces the most accurate pricing.

1.33. You will provide responses to Fiscal notes from the State on proposed legislation. The deadlines for these responses may be as little as four hours. These responses will require you to analyze the fiscal and policy impacts of the legislation including any conflicts with state or federal laws. Discuss your ability to meet this need.

1.34. Specifically discuss your ability to meet the tight turnaround time for Fiscal Notes.

1.35. Types of actuarial services performed by your firm for state and local governmental health benefit plans.

1.35.1. Briefly describe the services provided.

1.35.2. Include a list of names of governmental entities and plans for which the firm has provided services similar to those specified in this RFP.

1.35.3. How many years has your firm provided actuarial services?

2. Management Capabilities - Offeror’s Response

2.1. Provide the following identification information:

2.1.1. Company’s legal name.

2.1.2. Primary address.

2.1.3. How long your firm has been in business.

2.1.4. A summary of relevant clients and years of experience with each, to show that the company has, at minimum, the required years and levels of experience.

2.1.5. Identify your company’s Colorado offices by location, number of employees and indicate which will be involved in this Contract.

2.2. Please provide documentation of required licensing to provide employee benefit related insurance broker services in the State of Colorado.

2.3. Describe how your organizational structure and number of employees assigned to the

State’s account will meet the State’s needs and provide the best value to the State.

2.4. State the location of the primary office that would provide consulting and brokerage services to the State.

2.4.1. How many large public-sector clients with more than 10,000 employees are currently served by this office? (Please note that the State prioritizes information regarding local or comparable clients with smaller employee bases over larger organizations that are less similar to the State.)

2.4.2. What is the client retention rate for the office that will be servicing?

2.4.3. What is the employee turnover rate for 2025 for this office?

2.4.4. What is the average tenure at your firm?

2.5. Provide an example of how your firm has recently assisted a large public entity in creating and marketing a solicitation.

2.5.1. What pitfalls have you learned to avoid in your experience working with a large entity?

2.5.2. What helped find the best vendor?

2.6. The State has a relatively small benefits team and will require significant time and energy from the awarded Offeror. Over the last four years, the incumbent vendor has spent the following amount of time (in hours) on the State’s account:

Role 2023 2024 2025 2026 Total

SR Analyst/Analyst 346.50 369.50 391.75 443.25 1,551.00

SR

Consultant/Consultant

656.00 1,373.50 919.25 441.25 3,390.00

SVP/VP 1,139.75 947.00 1,057.25 815.50 3,959.50

Total 2,145.25 2,690.00 2,368.25 1,700.00 8,900.50

2.6.1. With that understanding, please provide a detailed explanation of how you will provide sufficient personnel to perform the Work. Specifically discuss the following:

2.6.1.1. Who is the single point of contact who will be assigned to the State to meet this solicitation’s requirements, and who will be on the State’s team?

2.6.1.2. Please include biographical information, resumes, and anticipated roles for each person assigned to work with the State.

2.6.1.3. Please summarize each team member’s experience consulting with

Public Entities.

2.6.1.4. Please describe how we will engage with your team. How will we engage with your subject matter experts and technical personnel?

2.6.1.5. Provide a plan for how the Offeror will replace personnel as needed so that the transition between personnel does not impact the ability of the

Offeror to complete the Work.

2.7. Discuss your client service model and provide biographical information/resumes, and weekly availability (in hours) for the following positions. If there are additional positions you recommend, please include that information as well.

2.7.1. Account Executive,

2.7.2. Pharmacist consultant,

2.7.3. Actuary,

2.7.4. Clinical/medical expert,

2.7.5. Wellness expert,

2.7.6. Stop loss expert,

2.7.7. KP expert, specifically someone familiar with KP plans not based in California,

2.7.8. Compliance expert,

2.7.9. Project-specific personnel that would be available to the State,

2.7.10. Procurement and contracting experts – Colorado solicits every contract at least once every five years and expects assistance drafting the proposal, analysis, contract negotiation, and implementation,

2.7.11. Executive Sponsor,

2.7.12. IT expertise – someone who can help acquire or manage new IT systems.

2.8. Discuss your knowledge of the State of Colorado Procurement Code and the measures you will take to ensure compliance with it.

2.9. Describe how you will absorb ownership of any data collected from the State. At the time of Contract termination, what is your retention policy/requirements for data collected during the Contract term?

2.10. Describe your firm’s ownership structure, financial status, and stability. Include your most recent two years of audited financial statements, you may label them

“confidential.”

2.11. Disclose all direct and indirect compensation (monetary and non-monetary) that your firm receives or may receive from vendors bidding on State of Colorado business. This includes, but is not limited to overrides, contingent commission, book of business/quota compensation.

2.11.1. Discuss how you will provide transparency about this compensation and how you will make the State whole for any compensation earned from the State’s business.

2.12. Disclose any financial interest or investments in vendors, products, or solutions that could potentially deliver services to the State of Colorado.

2.13. Service Level Agreement (SLA) Operational Commitments

2.13.1. Confirm your firm’s agreement to adhere to the following key performance deliverables outlined in Exhibit A (Statement of Work) and Exhibit B (Offeror

Response Questions), and describe the internal quality assurance processes, actuarial models, and auditing tools you will use to guarantee accuracy and compliance:

2.13.1.1. Delivering monthly and annual income/expense reports comparing actual claims experience against budgeted amounts, maintaining accurate rate-setting models, and projecting reserve adequacy for self-funded plans.

2.13.1.2. Conducting annual PBM market checks, performing annual pharmacy claims audits to calculate rebate/payout accuracy, and validating PBM reverse auctioneer savings projections.

2.13.1.3. Auditing carrier performance guarantee calculations annually, verifying carrier math against underlying policy terms, and recovering payouts due to the State.

2.13.1.4. Delivering complete cost-benefit and policy impact analyses within requested deadlines, including turnarounds of 4 hours or less during legislative sessions.

2.13.1.5. Delivering 100% of open enrollment support tasks, vendor file feed testing, and administrative resource coordination on schedule during the March–June window.

2.13.2. (Optional) Describe any additional performance guarantees, service level agreements (SLAs), or quantitative quality standards your firm proposes beyond the State's baseline requirements listed above. Detail the specific performance metrics, tracking methodologies, and reporting processes your firm will use to measure and report on these self-proposed standards.

2.14. Provide three (3) references evidencing at least three (3) years of actuarial/insurance brokerage experience with other organizations, preferably governmental, of similar size and complexity to the State of Colorado occurring within the past six (6) years.

Reference #1

Legal Name of Business Reference:

Legal Business Address:

Contact Name and Title:

Contract Phone Number:

Contact Email Address:

Period of Service (mm/yy to mm/yy):

Reference #2

Legal Name of Business Reference:

Legal Business Address:

Contact Name and Title:

Contract Phone Number:

Contact Email Address:

Period of Service (mm/yy to mm/yy):

Reference #3

Legal Name of Business Reference:

Legal Business Address:

Contact Name and Title:

Contract Phone Number:

Period of Service (mm/yy to mm/yy):

2.15. Provide three (3) references who are your three most recent terminated clients of comparable size to the State of Colorado.

Reference #1

Legal Name of Business Reference:

Legal Business Address:

Contact Name and Title:

Contract Phone Number:

Reference #2

Legal Name of Business Reference:

Legal Business Address:

Contact Name and Title:

Contract Phone Number:

Contact Email Address:

Period of Service (mm/yy to mm/yy):

Reference #3

Legal Name of Business Reference:

Legal Business Address:

Contact Name and Title:

Contract Phone Number:

3. Cost Proposal - Offeror’s Response

3.1. Mandatory Requirements

3.1.1. Quoted rates must demonstrate competitive pricing and an understanding that funding is provided by the State of Colorado subject to legislative budget constraints.

3.1.2. Quoted prices must cover all baseline requirements in Exhibit A (Scope of

Work). Any optional or additional services proposed outside basic implementation must be separately identified and priced as an addition to the flat fee.

3.1.3. Proposed prices must remain firm for the initial term and all extension terms.

Price increases will only be considered if requested in writing with at least 180 days’ advance notice and supported by substantive documentation. Approved increases are contingent upon good-faith negotiations and available State budget appropriations.

3.2. Please provide the quoted flat annual fee to perform all Brokerage and Actuarial services detailed in this solicitation. Offerors must bid on the complete Scope of Work;

partial bids for only Brokerage or only Actuarial services will be deemed non-responsive.

3.3. Note: The annual fee shall be all-inclusive of all work detailed in Exhibit A (Scope of

Work), with no additional fees. If performing any of the duties detailed in the Exhibit

A (Scope of Work) would incur additional costs, calculate that into the annual fee.

3.4. If there are any additional services which your firm has found to be commonly performed under Contracts of a similar nature, but that the State of Colorado has not included in this solicitation, please provide a detailed description of such additional services. If the additional services listed herein would incur additional increases to the annual fee quoted above, please include the amount of the increase to the annual fee that would be required to include these additional services. Please do not include this increase as an hourly rate - include the increase as an addition to the annual fee.

3.5. State your agreement that the prices proposed will be held firm for the initial term as well as all extension terms. If at any time the awarded Offeror would like to request price increases, all requests for such must be provided in writing with 180 days’ advance notice and supported with substantive documentation justifying such increase. The State will review such requests and negotiate them with the successful

Offeror in good faith; if a price increase is justified, and budget is available, the State will then add the increase to the Contract.

3.6. Proposed Performance Guarantee At-Risk Fee Schedule

3.6.1. Offerors must propose a percentage of their flat annual fee to put at risk for failing to meet the State's core technical performance standards.

3.6.2. Complete the table below by entering your proposed fee-at-risk percentage for each required deliverable.

3.6.3. Offeror-Proposed PGs (Optional): Offerors are encouraged to propose additional performance guarantees in rows 6 through 8 below.

3.6.4. If a performance guarantee standard is missed during the contract year without prior written waiver from the State, the corresponding percentage of the total flat annual fee will be credited back to the State on the subsequent billing invoice.

3.6.5.

Performance Guarantee Metric

Scope of Work Standard Offeror Proposed At Risk Fee % (Per Occurence)

1. Actuarial Projection Accuracy

Deliver monthly/annual income and expense projections, rate-setting models, and reserve adequacy calculations where year-end actual claims fall within _____% of baseline projections, adjusted for legislative or plan design changes.

[Offeror FIll-In] ______% accuracy

[Offeror FIll-In] ______% amount at risk

2. PBM Oversight & Claims Audit

Validate reverse auctioneer savings projections, complete annual PBM market checks, and execute annual pharmacy claims audits to verify carrier payouts.

[Offeror FIll-In] %

3. Carrier PG Auditing Audit annual carrier performance guarantee reports, verify mathematical

[Offeror FIll-In] % calculations against contract terms, and enforce carrier compliance.

4. Legislative Fiscal Notes Deliver 100% of fiscal note analyses within requested deadlines, including turnarounds of 4 hours or less.

This should be an accelerating performance guarantee.

Miss 1 [Offeror FIll-In] % Miss 2 [Offeror FIll-In] % Miss 3 [Offeror FIll-In] %

5. Open Enrollment & Admin Support

Complete 100% of open enrollment resource gathering, vendor file feed testing, and troubleshooting on schedule (March–June).

[Offeror FIll-In] %

6. Offeror-Proposed PG #1 (Optional)

[Offeror Insert Description] [Offeror FIll-In] %

7. Offeror-Proposed PG #2 (Optional)

[Offeror Insert Description] [Offeror FIll-In] %

8. Offeror-Proposed PG #3 (Optional)

[Offeror Insert Description] [Offeror FIll-In] %

4. Accessibility Compliance - Offeror’s Response

4.1. Confirm that all written deliverables provided to the State, including reports, presentations, spreadsheets, open enrollment materials, and policy briefs, will be formatted to comply with C.R.S. § 24-85-101 et seq. and WCAG 2.1 Level AA standards.

4.2. Describe your firm’s internal process and quality assurance checks for ensuring electronic documents (PDF, Word, Excel, PowerPoint) and employee benefit communications are fully accessible to individuals using assistive technology (e.g., screen readers, proper heading structures, alt-text for graphics, accessible contrast).

4.3. If your firm provides an online portal, data warehouse, or client analytics tool as referenced in your proposal, describe how administrators with disabilities access and navigate the platform.