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COMMUTER BENEFITS PROGRAM RFR – FORUM QUESTIONS AND ANSWERS
| Please elaborate on the different types of subsidies offered. |
| There are a few subsidies offered in the Commonwealth in which a department purchases MBTA passes directly for employees, however the primary Program should be geared to employees paying for passes with pre-tax and post tax dollars in accordance with IRS exemption amounts. Bidders should identify all options available with employees paying for all amounts and employer departments paying all or a portion of the passes. The Program must offer transportation benefits with the greatest level of tax benefits |
| Are cash reimbursements in any form currently allowed? |
| Yes, anyone that returns a pass before the 6th day of the month may receive a refund with proper adjustment to taxable wages. We are seeking a Plan Administrator to provide CTR with what options are allowable and available for all types of transportation benefits including adjustments and refunds. |
| We understand that the Commonwealth has a centralized accounting system and also a centralized payroll system for employees located in 152 State agencies and 5 University of Massachusetts college campuses at locations throughout the state are currently eligible to enroll in the Commuter Benefits program. The Commonwealth also has eligible employees in several states and the District of Columbia who cannot access the current benefit. Considering the total number of agencies, payrolls, subparts, etc., how many total payroll centers will the contractor have to interface with? How many payrolls files/feeds should the contractor expect? |
| Two: HR/CMS and the University of Massachusetts’s payroll system, e*mpac. One monthly deduction, if applicable, from each system. |
With 153 separate departments, each managing payroll operations that feed into HR/CMS and 5 campuses into e*pac, we are interested in learning what options are available
| With the request to administer the bicycling benefit, please confirm that it can only be a post-tax benefit for the participants since it will be offered in addition to the transit benefit. |
| We are seeking a Plan Administrator to provide CTR with what options are allowable and available for all types of transportation benefits, what tax exemption or other benefits are allowable, in what format, requirements, reporting etc. |
| Is paper enrollment required or can enrollment be completely web-based? |
| We are seeking a Plan Administrator to provide CTR with what options are allowable and available for all types of transportation benefits. CTR will consider a web-based approach if compliant with ADA. |
| What percentage of Commonwealth employees have access to the internet? |
| Unknown. The State does not rely solely on internet access for access to information or distribution of information. |
| Will eligibility files be provided to allow the tracking of terminations and new hires for eligible employees? |
| No however we will provide you with existing enrollees. Terminated employees will no longer have payroll deductions for passes etc. Bidders should identify what information they will need to have to operate the various benefits. |
| Please confirm the initial contract term (2 years or 3 years with two 1 year options). |
| The RFR states the period, which will subject to negotiation based upon the Response by the Bidder to allow recoupment of costs through employee charges. Bidders should propose an alternate period if the one identified in the RFR is not cost effective. |
| Will the contract resulting from this RFP eliminate the GIC role in employee education and communication, both in an oral capacity and as a distribution center? |
| No. GIC has no role currently with Transportation Benefits and this contract will be separate and distinct from any contract for employee benefits provided by GIC. |
| Does CTR want the marketing of the program to be electronic or paper-based? |
| A combination of both initially would be recommended. However, the Bidder should propose what options are available that will not place undue costs on employees provided a solely on-line option must be ADA compliant. |
| Will CTR allow participants to choose payroll deductions over the pre-tax limit as post-tax contributions? |
| We are seeking a Plan Administrator to provide CTR with what options are allowable and available for all types of transportation benefits. We will coordinate pre and post tax deductions as necessary. |
| Will centralized reporting of the program be utilized or are multiple reports expected, separated by agency? |
| One report with department break outs is desirable. The Bidder must identify what is available. |
| If CTR determines that it would be advantageous to accept a quote from an offeror that encompasses other cafeteria plan benefits (i.e. DCAP and HCSA), what will happen to the existing contract with the incumbent cafeteria plan administrator? |
| CTR will not consider DCAP and HCSA at this time since these benefits are under the jurisdiction of GIC which has just executed a contract with a benefits coordinator. Therefore, these benefits should not be offered at this time. |
| We understand that CTR has requested an aggressive implementation schedule of the Plan to become effective. Will the anticipated early March date for initial payroll deductions or Plan enrollment (clarify) be adjusted if the anticipated award is not made on February 3rd? |
| The Program needs to be up and running at a minimum to enable pre-tax payroll deductions in April for May passes to be available to employees. We anticipate meeting the NEW award date of around Feb 5-9th. The RFR calendar has been updated as follows: |
· January 20, 2010 -Answers to On-Line Forum Questions Posted on Comm-PASS
· February 2, 2010 noon Submission of Responses Deadline noontime
· February 2-5, 2010 Evaluation of Responses Oral Interviews with Finalists if required and Selection
· February 5-9, 2010 Award Notification and Contract Execution
| Simply by submitting a proposal, will the proposer be bound by the RFP requirements to the letter or will the content of the proposal be used to determine the terms of the contract and the ultimate deliverables? |
| The RFR is the basis for the Contract, therefore, the Bidder is asked to identify any issues, concerns, recommendations etc. as part of the Response as a basis for selection. CTR does not want protracted negotiations with a contractor due to the emergency nature of getting at a minimum the MBTA passes up and running and available to employees by the dates in the RFR. |
| Please provide a sample performance evaluation for Customer Service. |
| We do not have a sample performance evaluation for Customer Service since this is a new program. The Contractor will be evaluated on feedback we get directly from employees and any contractor established surveys. |
| Could the Commonwealth of MA be more specific as to quantitative measures for customer service requirements related to employees and payroll staff members? |
| We do not have specifics at this point because this is a new program. We would anticipate robust and professional customer service levels to ensure that the employees were transitioned to the new program get the services they need and that they will have access to their passes etc. in advance of the time that these passes are needed so that commuting will not be disrupted and that they will get the full value of any tax benefits to which they are entitled. |
| Will any deviation from the RFP be considered when negotiating the final contract? |
| As stated in the earlier question the RFR is the basis for the Contract, therefore, the Bidder is asked to identify any issues, concerns, recommendations etc. as part of the Response as a basis for selection. CTR does not want protracted negotiations with a contractor due to the emergency nature of getting at a minimum the MBTA passes up and running and available to employees by the dates in the RFR. Bidders should anticipate identifying any recommendations that will make the contract the most successful for the Commonwealth, any areas identified in the current RFR that will make it more cost prohibitive for employees, or any language the bidder will want to negotiate, including proposed alternative language or clarifications. Please note in the RFR that language related to indemnification and limitations of liability are not negotiable, these restrictions are from the Atty. Gen.'s office. Other language may be negotiable provided the language is identified as part of the response and includes proposed alternative language, or the goals to be achieved by the negotiation are included within explanation and how the contract will be impacted if the Commonwealth is unable to negotiate the language exactly as proposed by the bidder. The Commonwealth will not entertain items identified after selection and these items will be nonnegotiable as being unfair to other bidders who identified all issues concerns and language as part of the RFR. Please note, that we do not anticipate being forced to accept a bidders standard protocols language contracts forms etc. as a basis for signing the contract, and any requirement that forces this acceptance may be the basis for disqualification of bidder. As the state government we are mandated to sign the standard contracts and any underlying documents are subject to the conditions contained in these contracts, and the limited ability to negotiate these terms. However, we will consider all items language concerns that bidders raise, explain, and provide solutions and alternatives. Again, we anticipate that a successful bidder will have an established program with a proven track record ready to roll out and that we will not need to negotiate significant number of details in order to provide this program to employees. |
| Is the Commonwealths expectation that the selected vendor will charge a monthly administrative fee for each enrolled employee and will the employee pay that fee or will the Commonwealth pay the fee? |
| This program is an employee paid self-service program which will not be subsidized by state agencies but must provide the greatest extent possible the largest tax benefits available. |
| Please review your interpretation of the Bicycle Benefit under 132(f). |
| Unclear what the question means. We will not provide a legal analysis of the bicycle benefit and fully expect that a qualified bidder will provide us with the correct implementation of this benefit for state employees if it is available, under what circumstances, what benefits are allowable, requirements employee must provide the bidder to document eligibility, and ensuring that benefits are used for the appropriate purpose. The goal of the RFR is to provide the most comprehensive program that will allow all types of qualified transportation benefits to be provided to employees that are eligible. We would presume that a qualified bidder will have the capability to provide a variety of options from which a state employee can select the best option for themselves. |
| Does submitting a response to the RFP automatically bind the proposer to the requirements of the RFP without any deviation? |
| Please see the previous answer to similar question. |
| Does the Commonwealth want the benefit for March or can enrollment begin in March? |
| The current roll out plan for the payroll system (HR/CMS) upgrade is live March 22, 2010. This allows employees to have their April 2010 passes properly issued using the current functionality. The selected vendor would begin enrollment in March for April deduction for May passes |
| In which other states/metropolitan areas are Commonwealth employees located? How many employees are in each one of these areas? |
| List is attached. |
| When are data files submitted to MBTA in the month? |
| Currently files are submitted on or before the 20th of the prior month. |
| Is there dedicated payroll staff for specific agencies or do you administer the program across multiple agencies through a single payroll function? |
| Previously CTR provided administrative function with agency payroll officers performing the data entry and enrollment process in cooperation with CTR. Under the new program CTR will no longer provide a centralized or any other industry of process to support the program other than verification information for employee status. Employee self service is not planned to be rolled out for several months after the upgrade. Deductions will continue to be processed through department payroll staff. |
| What is the percentage of the enrolled population that receives passes and how many receive the Charlie Card? |
| This information was provided as part of the RFR. That is all the information we have at this time, however or program is limited to MBTA passes in the metropolitan area. We presume that the bidder would be providing a much more robust and comprehensive qualified transportation benefit program which to provide a great variety of benefits including parking at MBTA locations. |
| Will you accept a proposal from a vendor which deviates from the RFP requirements? If so, how will that proposal be evaluated? |
| Please see the previous answer. This will depend on what the deviation is and whether or not the deviation supports the purposes of the RFR which is to provide the most comprehensive, robust customer service and extensive commuter benefits program to state employees at the most cost effective amount for employees with the highest tax benefits or exemptions. Any deviations or proposals must be identified with alternatives proposed and explanations of why the proposals are in the best interest of the Commonwealth and state employees. |
| How does the Commonwealth reach employees that may not have access to a computer or phone during the day? |
| Currently this is not been accomplished other then through communications for payroll Director to employees as needed. We would envision that would not be up to the Commonwealth to contact employees but as part of the enrollment process communication would be directly with the employee based on whatever e-mail address mobile phone or other method of communication that the employee chooses to be contacted during the day. |
| Can the vendor you choose host live meetings and or webinars for Payroll Coordinators in order to train-the-trainer about the benefit? |
| Yes. The Commonwealth is open to any training opportunities will most effectively and efficiently train both payroll coordinators as well as the employees under the initial and ongoing basis, including frequently asked questions developed during the process. |
| How do employees receive their benefits information; electronically or in print? |
| Both |
| Do you have an internal website or intranet in order to disseminate information about the benefit? |
| yes, but content or provider link is envisioned as a vendor activity. |
| Since our subcontractors service our entire book of business, will the Commonwealth agree to be notified of a change vs. have the right to approve? |
| This certainly negotiable. Existing subcontractors that support the contractor's current business do not have to be approved, provided that any changes after a contract is executed that might significantly impact performance or create a risk of a lapse in performance or loss of qualified transportation benefits would trigger the requirement that we would have the right to approve or be notified in advance of this type of change. |
| For privately held companies, can the Commonwealth agree to review financial statement's or auditor's reports AFTER the contract is executed and services begin? We are concerned about the confidential treatment of this information. |
| We will consider this provided the company can provide an alternative that will demonstrate that the privately held company is financially solvent and is not the risk of bankruptcy, severe litigation liabilities or any other financial issues such as the pending merger or consolidation will impact the ability of the contract be signed quickly or any performance levels it might be impacted or a reduced. |
| Will the Commonwealth agree to limit liability for special damages for all claims except for those relating to confidentiality/privacy> |
| No. We are unable to negotiate limitations of liability or indemnification based on restrictions on the Atty. Gen.'s office. Bidders having an issue with these restrictions must identify what concerns they have, what limitations they are seeking and why they are not sufficiently covered by liability insurance to cover these costs which we would presume a professional business would have and would be incorporated into the cost of doing business. |
| Will the Commonwealth consider a disengagement fee if you term within the first year? |
| No. The Commonwealth is not paying any fees or costs associated with this contract. All fees are recouped based on the fees established for employees enrolling for the program. We anticipate that it will take some time the contractor to recoup set of fees and cover its own costs and that this is a significant investment for any contractor. Therefore we would not anticipate terminating within the first year of the contract unless the contractor failed to perform up to the expected level and did not provide employees with the benefits to which they are entitled on a timely basis and with the appropriate level of customer service. Given the significant destruction to employees with any kind of termination or change would not anticipate terminating unless the contractor's performance was poor and employees complained that the level of service in the level of benefits was substandard and unsatisfactory. It would be our understanding that in this type of situation the contractor would be subject to damages for failure to perform such as liquidated damages that the Commonwealth considering in order to compensate employees for failure to get the services to which they are entitled under the program. We do not foresee terminating unless the Commonwealth or state employees are dissatisfied with the program. |
| How should we handle existing contractors under Section 9 of the contract? Why do you need copies of the subcontractor agreements? |
| The goal of identifying subcontractors to identify any high risk contractors that may be debarred under state or federal law that we are prohibited from doing business with or present an unfair risk to the Commonwealth or state employees. We also want to ensure that the contractor is capable of providing services as stated and is not subcontracting with another contractor as a way of circumventing the procurement process and of subcontractors are necessary to support the program but are not running the program independent of the contractor. We also want to ensure that the contractors qualified to perform services. |
| Will the Commonwealth agree to a late payment charge of 2% if admin fees are not paid within the 45 days? |
| No. The Commonwealth is not paying any fees or costs associated with this contract. All fees are recouped based on the fees established for employees enrolling for the program. |
| Does the Commonwealth have a requirement to send paper communication materials to employees or is electronic distribution sufficient? |
| Bidders should identify what the recommendation will be to disperse information to state employees, including any restrictions, costs and how the various methods may impact the fees to employees. |
| What is the current payroll deduction schedule? If a participant enrolls by January 10th, when is the monthly deduction? End of January? |
| Bi-weekly payroll. Deductions are either 1st or second of the month—with a 3rd payperiod on occasion. Schedule is available |
| Will the Commonwealth allow use of their logo to co-brand the enrollment website? |
| No. The Commonwealth is not authorized to allow it its logo to appear on another website. Normally contractors will develop a logo specific to the Commonwealth program to be used as an entry point for state employees to recognize their program. |
| How many full-time personnel are assigned to currently administer this program? |
| None. The program is intended to be a currently operational program with minimum data entry or other day-to-day management by either payroll coordinators at the state agency or by CTR. That is why the Commonwealth is seeking a plan administrator. |
| Will MBTA allow the transfer of current Charlie Card #s to the new administrator vs. having to reissue new cards? |
| This is something that bidders need to acquire directly with the MBTA since we presume that qualified bidder will already have an existing relationship with the MBTA were be able to coordinate this information prior to submitting the response. Kevin we have this info to provide, correct? yes |
| What % of current participants have the Charlie Card? MBTA tickets/vouchers? |
| Answered in RFR |
| Is there any flexibility on the 3/1 effective date? That seems like a tight schedule due to the vendor notification on 2/3. |
| No. The contract will be effective March 1 to begin enrollment transition, deductions are April for May. This is an emergency procurement and we need to get at a minimum the MBTA passes up and running as soon as possible. We presume a qualified bidder will already have the capability to provide this employee self-service mechanism and will not have to be built or built a new system to accommodate these benefits. |
| What is the overall driver of why the Commonwealth wants to outsource this program? |
| The Commonwealth does not have the personnel with resources to offer more than the MBTA passes at this time within the Metro Boston area. Therefore they are many state employees who do not have access to the types of commuter benefits to which they are eligible. In addition our payroll system cannot accommodate customizations necessary to support a variety of transportation benefits available to state employees, and we are canceling the customization that we formally used for the MBTA passes and are moving to a Plan Administrator Program since the payroll system will no longer have the customization to interface information in the same manner as previously for MBTA passes. |
| Will the winning bidder be required to run this entire program through the existing MOCPP platform or can enrollment and ordering be performed through the companies own existing proprietary system? |
| Open to reviewing alternatives. The Commonwealth seeks an employee self service program or one with little administrative burden for state agency payroll directors. The Commonwealth has no set plan for implementation, except that at a minimum current employees who are currently receiving MBTA passes on a pre-tax basis continue to receive their MBTA passes in March with tax exclusion benefits so there is no disruption with receipt of passes. We have no requirement that payroll deductions continue or whether employees order passes on-line and receive through the mail. We plan to pick the partner that best supports the programs needed at the most reasonable cost for employees by the deadlines, and a contractor with a proven track record for excellent service and customer service. |