4_-_FSAFEDS_Solicitation_Number_OPM35-14-R-0004_-_Questions_and_Answers--02.03.2015.pdf

UNITED STATES OFFICE OF PERSONNEL MANAGEMENT

SSOOLLIICCIITTAATTIIOONN NNUUMMBBEERR OOPPMM3355--1144--RR--00000044

QUESTIONS AND ANSWERS

1. Question: Page 48 of RFP – (C. Status Report) Currently how many participant have debit cards?

Answer: Participants do not have debit cards.

2. Question: Page 48 of RFP – (C. Status Report)

Currently what is the overall debit card substantiation rate?

Answer: Participants do not have debit cards.

3. Question: Page 48 of RFP – (C. Status Report) and Page 53 of RFP – (B. Acceptance of Paper

Claim & Paperless Reimbursement Claims) Currently what is the Avg # (or overall total) of manual claims per participant (non debit card)?

Answer: There are approximately four manual claims per participant.

4. Question: Page 48 of RFP – (C. Status Report)

Currently what is the Avg # (or overall total) of customer service calls per participant?

Answer: There are approximately 1.5 calls per participant.

5. Question: On page 48 of the RFP refers to “Standard Weekly/Bi Weekly Reports” will OPM share this information that the current vendor has provide to you in the past in-order for other vendors to better understand the current FSA volumes better, especially a, b, c, I, and j.

Answer: The Contractor must develop its own reports that meet the requirements.

The current volumes are referenced in the solicitation.

6. Question: Are claims allowed to be faxed or is everything inputted by participant electronically?

Answer: Manual claims may be submitted by postal mail, fax, online (electronically). Please Technical Factor 2: Claims Administration on Page 112 of the solicitation.

7. Question: What is the current rate your current vendor (ADP) charge for administrating the

FSA?

Answer: Pursuant to Title 5 United States Code 552, Subsection (b)(4) Trade secrets and commercial or financial information, we will not provide the current contractor’s unit price because this item contains commercial or financial information that was obtained from a person and is privileged or confidential and is exempt from public disclosure.

8. Question: Page 17, (6) 52.222-49 Service Contract Act – Place of Performance Unknown (a)

What is the revised date for the wage determination request, if applicable? Currently, the RFP states December 2, 2014.

Answer: We corrected the date and revised it from December 2, 2014 to February 6, 2015.

See Amendment Number 0001, Number 5.

9. Question: Page 32, 1752.239-71 Information Technology Systems Security; 1752.239-72

Contractor Access to OPM IT Systems and Pages 38-39, 1752.239-80 IT Security and Privacy Awareness Training; 1752.239-81 Specialized IT Security Awareness Training for Security Staff; 1752.239-82 HSPD-12 Compliance What access to OPM’s systems will be required under this contract? If system access is not required, would these contract clauses be removed?

Answer: We do not believe access to OPM IT Systems will be required under this contract.

However, we will leave the contract clauses in this solicitation. We will decide prior to contact award if we will remove the clauses from the contract.

10. Question: Page 39, 1752.239-83 Federal Desktop Core Configuration / United States

Government Configuration Baseline Compliance (a) Please clarify the minimum browser requirements. We understand that Microsoft no longer supports Internet Explorer 7 and will stop supporting version 8 in January 2016.

Answer: We do not have that information at this time.

11. Question: Page 51, D.1.3.4.1 General Administration – paragraph #3

Page 51 indicates the Contractor will manage the no allotment process, whereas page 58 says the Contractor will work with BENEFEDS on this process. Please clarify which process will be required.

Answer: BENEFEDS will work with payroll offices to identify participants that do not have an allotment. BENEFEDS will notify the Contractor which participants do not have an allotment. The Contractor will reconcile BENEFEDS’ records with its own, attempt to resolve the issue with the participant, and administer the account consequences of no allotment.

12. Question: Page 51, D.1.3.4.1 General Administration

The RFP states the Contractor provides the allotment amount to BENEFEDS. Please confirm if the Contractor should provide the allotment amount or the election to BENEFEDS.

Answer: The Contractor reports the participant’s allotment amount (which may be accelerated if requested by the participant) to BENEFEDS. BENEFEDS coordinates for these allotments to be sent by payroll offices to the Contractor each pay period. To the best of

OPM’s knowledge, the Contractor does not report the participant’s total election amount to

BENEFEDS.

13. Question: Page 53, D.1.3.4.2 FSAFEDS Administration (2) Claim Payments to Participants

(D) Reissued Checks and Page 70, D1.3.9.2 Returns of Forfeitures and Outstanding Checks

(2) Outstanding Checks

On page 53, the process outlined includes re-issuing un-cashed checks and contacting participants. The process outlined on page 70 #2 states that un-cashed checks are voided and the funds are returned to the risk reserve. Please clarify which process will be required.

Answer: Both processes will be required. If the participant does not respond to the letter referenced on Page 53 by the deadline provided, these funds are voided are returned the risk reserve.

14. Question: Page 44, D.1.2 Overview

Please confirm whether September 1 is the date by which the Contractor shall be fully operational or if that is the date on which implementation begins.

Answer: The Contractor must be fully operational and performing the requirements in the solicitation on September 1, 2015.

15. Question: Page 44, D.1.2 Overview and Page 99, Claims Administration Questions #13

On page 44, the RFP states OPM will award the contract no later than June 1, 2015, but on page 99, the RFP indicates the award date will be July 1, 2015. Please clarify the anticipated contract award date.

Answer: Page 44 is correct. We corrected the date on Page 99 of the solicitation and revised it from July 1, 2015 to June 1, 2015. See Amendment Number 0001, Number 9.

16. Question: Page 63, D.1.3.4.6 Unpaid Agency Invoice Recovery Protocols

The RFP states that estimates must be sent at least 60 days prior to the January and

October billing cycles. Since the 60-day window occurs prior to the end of the enrollment period for each cycle, is OPM’s intent that the Contractor use projections for providing estimates of the number of accounts?

Answer: Yes, the Contractor may use projections for providing estimates of the number of accounts.

17. Question: Page 85, (2) Addendum to FAR 52.212-1 Instructions to Offerors (D) Instructions for Submission of Proposals (v)

By what date does OPM anticipate responding to these questions so that any feedback can be incorporated in offerors’ proposals prior to the February 6 deadline?

Answer: We will respond to the questions as soon as possible. We will also decide if we should extend the offer due date based on the magnitude of the questions and answers.

18. Question: Page 95, FSAFEDS Administration #5

By electronic signature, does OPM mean the participant’s electronic acceptance of the online enrollment including the terms and conditions, or is a process required by which an actual electronic sound, symbol, or process is attached to the enrollment and executed by the participant with the intent to sign the record?

Answer: OPM does not have an exact requirement for how an electronic enrollment is memorialized. In this solicitation, we are asking how the potential Contractor would seal the enrollment when there is no paper record.

19. Question: Page 115, (C) Detailed Evaluation Process Technical Factor 5: Education, Marketing and Enrollment, paragraph #3 and Page 116, (C) Detailed Evaluation Process

Technical Factor 5: Education, Marketing and Enrollment #3

On page 115, the last line of paragraph 3 under Technical Factor 5 states enrollments must be accepted online and by phone. On page 116 under Enrollment Logistics, the RFP states enrollments will be accepted via phone and email. Please clarify if accepting enrollment via email is required.

Answer: Page 115 of the solicitation is correct. Enrollments must be accepted online and by phone. Enrollments do not need to be accepted via email. We corrected 116 of the solicitation and revised it from “…by phone and email” to “…online and by phone.” See

Amendment Number 0001, Number 10.

20. Question: Page 9, (4) CLINS Pricing Guidance (a). All pricing is all-inclusive and FFP

If an employee is enrolled in both a HCFSA and a DCFSA, does the current Contractor bill for both the HCFSA and DCFSA fee?

Answer: Yes, the current Contractor bills for both the HCFSA and DCFSA fee.

21. Question: Page 10, (2) 52.212-5 Contract Terms and Conditions Required to Implement

Statutes or Executive Orders – Commercial Items (Dec 2014), (b) the Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or

Executive Orders applicable to acquisitions of commercial items. [Contracting Officer check as appropriate.]

Is the Contractor required to comply only with those FAR clauses as marked by the

Contracting Officer? For example, Contractor must comply with (1) 52.203-6 Restrictions on

Subcontractor Sales to the Government since it is marked [X] by the Contracting Officer;

however, Contractor is not required to comply with (6) 52.204-14 Service Contract

Reporting Requirements since it is not marked by the Contracting Officer?

Answer: Yes, as stated in the solicitation, “The Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items:” We inadvertently omitted checking Clause 52.204-14

Service Contract Reporting Requirements (Jan 2014). We corrected this omission and checked the clause. See Amendment Number 0001, Number 4.

22. Question: Page 10, (c) Contract Clauses, (2) 52.12-5 Contract Terms and Conditions

Required to Implement Statutes or Executive Orders – Commercial Items (Dec 2014)

On PAGE 10 Sub-Section (c) Contract Clauses, (2) (b) provides “the Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items:” Does this Solicitation contemplate the need to implement provisions of laws (statutes) or Executive orders, and will the FAR clauses indicated in this paragraph be incorporated in the contract?

Answer: Yes, the Contracting Officer has included FAR Clause 52.212-5 Contract Terms and

Conditions Required to Implement Statutes or Executive Orders – Commercial Items (Dec

2014) in this solicitation and has therefore determined that the clause is applicable to this solicitation. Yes, the FAR clauses will be incorporated into the resulting contract.

23. Question: Page 11, Sub-Section (c) Contract Clauses, (2) (b) (16) – Utilization of Small

Business Concerns is checked as an FAR clause with which the Contractor must comply

To the extent this FAR clause is applicable to this solicitation, are there specific goals that are being sought?

Answer: OPM’s Fiscal Year 2015 subcontracting goals are stated in the first paragraph of

Attachment 1 – U.S. Office of Personnel Management Small Business Subcontracting Plan

Outline. We corrected the goal for all small businesses and revised it from 51.0% to 50.0%.

See Amendment Number 0001, Number 12.

24. Question: Page 11, Sub-Section (c) Contract Clauses, (2) (b) (17) – Small Business

Subcontracting Plan Utilization of Small Business Concerns is checked as an FAR clause with which the Contractor must comply

To the extent this FAR clause is applicable to this solicitation, will the Contracting Officer be requesting that the offeror negotiate a subcontracting plan that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business concerns, small disadvantaged business, and women-owned small business concerns?

Answer: See the following pages of the solicitation for instructions regarding the Small

Business Subcontracting Plan: (1) Page 21, Clause 1752.219-70 Small Business

Subcontracting Plan (June 2006), (2) Page 108, Paragraph (6), and Page 117, Paragraph (l).

25. Question: Page 14, Sub-Section (c) Contract Clauses, (2) (c) provides “the Contractor shall comply with the FAR clauses in this paragraph (c), applicable to commercial services, that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items:”

Does this Solicitation contemplate the need to implement provisions of laws (statutes) or

Executive orders, and will the FAR clauses indicated in this paragraph be incorporated in the contract?

Answer: Yes, the Contracting Officer has included FAR Clause 52.212-5 Contract Terms and

Conditions Required to Implement Statutes or Executive Orders – Commercial Items (Dec

2014) in this solicitation and has therefore determined that the clause is applicable to this solicitation. Yes, the FAR clauses will be incorporated into the resulting contract.

26. Question: Page 15, Sub-Section (c) Contract Clauses, (2) (e)(1) provides “notwithstanding the requirements of clauses in paragraphs (a), (b), (c), and (d) of this clause, the Contractor is not required to flow down any FAR clause, other than those in this paragraph (e)(1) in a subcontract for commercial items.”

If paragraphs (b) and (c) do not apply, is Contractor required to flow down the FAR clauses contained in paragraph (e)(1)?

Answer: As stated in FAR Clause 52.212-5 Contract Terms and Conditions Required to

Implement Statutes or Executive Orders – Commercial Items (Dec 2014), Paragraph (e)(1), “Unless otherwise indicated below, the extent of the flow down shall be as required by the clause–…” See the clauses stated in (i) through (xvii).

27. Question: Page 31, 1752.239-70. Internet Protocol Version 6 (IPV6) (November 2012). All functionality, capabilities, and features must be supported and operational in both a dual stack IPv4/IPv6 environment and an IPv6 only environment. All management, user interfaces, configuration options, reports, and other administrative capabilities that support

IPv4 functionality will support comparable IPv6 functionality. A letter of self-certification must be included with the proposal response.

How will you require the contractor to demonstrate the compatibility of our infrastructure to fully support IPv6?

Answer: The solicitation states OPM reserves this right. We will inform respondents if and when we decide to exercise this right.

28. Question: Page 32, In accordance with FAR 11.002(g) and OPM CIO Directives, this acquisition must comply with NIST USGv6 and IPv6 Test Program.

How will you require the contractor to demonstrate the compatibility of our infrastructure to fully support IPv6?

Answer: We will inform respondents if and when we decide to exercise this right.

29. Question: Page 37, 1752.239-78 Federal Reporting Requirements (November 2012).

Contractors operating information systems on behalf of OPM must comply with Federal

Information Security Management Act (FISMA) reporting requirements.

Is FISMA a requirement of this contract or will you consider non-FISMA security programs?

Does the current Contractor of record comply with this requirement?

Answer: As stated in the clause, “Contractors operating information systems on behalf of

OPM must comply with Federal Information Security Management Act (FISMA) reporting requirements.” We will not provide the requested information regarding the contract clauses in the current contract.

30. Question: Page 47, 50. D.1.3.3 Reporting Requirements

Are reports to be made available per agency? Or, is all reporting accomplished at the OPM level with agency level detail?

Answer: Regular reports are at the program-wide level except as otherwise provided in the solicitation. Ad hoc reports may be requested from time to time showing certain metrics by agency.

31. Question: Page 47, 50. D.1.3.3 Reporting Requirements

Will all or some reports be needed in summary level for all FSAFEDS groups combined in addition to separately (by agency)?

Answer: Reports provided by agency must have total amounts showing the program-wide figures.

32. Question: Page 47, 50. D.1.3.3 Reporting Requirements

If reports are made available on a secure Employer (Administrator) portal via secure login to be downloaded by any number of privileged users acceptable?

Answer: Yes, reports that are made available on a secure Employer (Administrator) portal via secure login to be downloaded by any number of privileged users are acceptable.

33. Question: Page 47, 50. D.1.3.3 Reporting Requirements

Can delivery method vary by report? For example, not all reports are available on the

Employer (Administrator) portal and may be sent directly by the key account manager. Is that acceptable to the OPM?

Answer: Yes, reports that are available on the Employer (Administrator) portal and reports sent directly by the key account manager are acceptable.

34. Question: Page 51, The Contractor will need to develop linkages with all Federal payroll systems via BENEFEDS.

Will the Contractor receive incoming data separately from each payroll agency or from the

BENEFEDS system for all agencies? Will separate files and frequencies be used for different payroll agencies?

Answer: The Contractor will receive incoming data from BENEFEDS for all agencies. Some agencies use different payroll frequencies than others and this will affect when the

Contractor receives the allotments from the agency.

35. Question: Page 51, The Contractor will need to develop linkages with all Federal payroll

Will the Contractor be expected to send any outgoing data to separate payroll agencies or to BENEFEDS for agencies?

Answer: Generally, the Contractor will not be required to communicate directly with payroll offices. BENEFEDS coordinates with payroll offices for the Contractor.

36. Question: Page 51, The Contractor will need to develop linkages with all Federal payroll

Can you provide a record layout with field descriptions for all inbound and outbound files processed through the BENEFEDS?

Answer: No, we cannot provide a record layout with field descriptions for all inbound and outbound files processed through the BENEFEDS. The Contractor will work with BENEFEDS on developing these files in a way that works best for both parties.

37. Question: Page 51, The Contractor will need to develop linkages with all Federal payroll

How many of the 160 payroll agencies information will come through BENEFEDS? Will all those that come through BENEFEDS be in the same file and/or separate files in the same file format?

Answer: To the best of OPM’s knowledge, all payroll records come to the Contractor in a consolidated format created by BENEFEDS.

38. Question: Page 51, The Contractor will need to develop linkages with all Federal payroll

Company X typically receives data from client(s) in a proprietary format (Program Sponsor

File). Will the 160 entities and/or BENEFEDS be able to send data in our file format?

Answer: The Contractor will work with BENEFEDS on a mutually agreeable file format.

39. Question: Page 51, The Contractor will need to develop linkages with all Federal payroll

Will we receive a single file from BENEFEDS or one file per payroll agency?

Answer: To the best of OPM’s knowledge, the Contractor will receive a single file from

BENEFEDS.

40. Question: Page 51, The Contractor will need to develop linkages with all Federal payroll

Do all payroll agencies have the same payroll schedule?

Answer: No, all payroll agencies do not have the same payroll schedule. However, most agencies pay biweekly.

41. Question: Page 51, The Contractor will need to develop linkages with all Federal payroll

Do all payroll entities report payroll deductions at the same time and frequency or are they all potentially unique?

Answer: Most agencies pay biweekly at the same time. A relatively small number of agencies use a different pay frequency.

42. Question: Page 54, 3. Funding Claims Payments. The Contractor has the responsibility for paying claims that are not funded and may request temporary assistance from OPM’s Risk

Reserve Account if needed. If OPM asks the Contractor to pay claims for participants before their first payroll allotment, this action may accelerate the need for funds advancement.

PAGE 55. Third – Risk Reserve Account. Upon OPM approval, Risk Reserve Account held by

OPM at the U.S. Treasury may be used to fund current claims when cash forecasts indicate five days or less of cash on hand…

Can you provide the calculation for determining 5 days cash on hand or can you provide an estimate of the average $ balance needed to maintain a cash balance for 5 days of cash on hand?

Answer: The calculation is usually made by taking the reimbursement funds account balance today and dividing it by reimbursements made today; although OPM’s actuaries may use a different formula. There is no fixed dollar amount to cover five days.

Reimbursements tend to spike in March and April; although the introduction of carryover may lead reimbursements to spike more in December.

43. Question: Page 54, 3. Funding Claims Payments. The Contractor has the responsibility for

Reserve Account if needed. If OPM asks the Contractor to pay claims for participants before their first payroll allotment, this action may accelerate the need for funds advancement.

PAGE 55. Third – Risk Reserve Account. Upon OPM approval, Risk Reserve Account held by

OPM at the U.S. Treasury may be used to fund current claims when cash forecasts indicate five days or less of cash on hand…

Will cash on hand balances held by the current Contractor be transferred to the new

Contractor?

Answer: Yes, cash on hand balances held by the current Contractor will be transferred to the new Contractor

44. Question: Page 54, 3. Funding Claims Payments. The Contractor has the responsibility for

Reserve Account if needed. If OPM asks the Contractor to pay claims for participants before their first payroll allotment, this action may accelerate the need for funds advancement.

PAGE 55. Third – Risk Reserve Account. Upon OPM approval, Risk Reserve Account held by

OPM at the U.S. Treasury may be used to fund current claims when cash forecasts indicate five days or less of cash on hand…

What is the balance for the Risk Reserve Account as of December 31, 2014? What is the projected balance for the Risk Reserve Account as of December 31, 2015.

Answer: This information in not available. It is sufficient and is currently paying most of the administrative fees normally paid by participating agencies. Under the guidance of OPM’s actuaries, the target balance for the account is 1/12 of total participant HCFSA elections.

The fund continues to grow.

45. Question: Page 54, 3. Funding Claims Payments. The Contractor has the responsibility for

Reserve Account if needed. If OPM asks the Contractor to pay claims for participants before their first payroll allotment, this action may accelerate the need for funds advancement.

PAGE 55. Third – Risk Reserve Account. Upon OPM approval, Risk Reserve Account held by

OPM at the U.S. Treasury may be used to fund current claims when cash forecasts indicate five days or less of cash on hand…

Will the OPM approve advance funding for this contract for an amount equal to 5 days cash on hand before the first payroll allotments start to flow?

Answer: Because the outgoing Contractor will transfer reimbursement cash on hand to the incoming Contractor, we do not expect a Risk Reserve transfer will be necessary at the start of the new contract.

46. Question: Page 59, D.1.2.4.3 BENEFEDS. Contractor must process a weekly “coordination of benefits” file.

What information is contained on the coordination of benefits file?

Answer: To the best of OPM’s knowledge, the coordination of benefits file reconciles the

Contractor’s records of a participant’s self-reported FEHB health carrier and FEDVIP dental and vision carriers with BENEFEDS’ records of carrier premiums paid. By knowing which health, dental, and vision plans the participant has, the Contractor knows which dental and vision claims must be denied at this time because the participant’s health plan provides some dental/vision benefits that have not yet been processed against this claim.

47. Question: Page 64, D.1.3.5 Claims Administration. The Contractor must develop enrollment forms…

Can you describe the annual enrollment process that is used today? What system(s) are used to allow employees to elect their annual election (allotment) amounts?

Answer: The current Contractor accepts enrollments by phone and online through its secure website. Participants provide their employing agency, name, address, phone, email address, social security number, dependent information (if applicable), election amounts, and insurance carriers. Participants decide whether they wish to elect paperless reimbursement through their insurance carriers, if available, and whether they wish to accelerate allotments.

48. Question: Pages 72-79, QASP. Numbers 1 – 4.9.

What is the aggregate % of fees at risk, with the current Contractor, for all performance standards combined?

Answer: We will not provide the requested information regarding the current contract.

The offeror will propose this percentage.

49. Question: Page 77, QASP 4.6. Both offeror’s staff and the offeror’s processes support and utilize the information provided via BENEFEDS to promote best practices and avoid duplicative efforts to the extent possible.

What types of information will be provided to Contractor by BENEFEDS?

Eligibility information? YES_____ NO_____

Payroll deduction (allotment) information? YES_____ NO_____

Annual election amount information? YES_____ NO_____

Participant demographic profile information? YES_____ NO_____

Answer:

Eligibility information? YES_____ NO__X___

Payroll deduction (allotment) information? YES__X___ NO_____

Annual election amount information? YES_____ NO__X___

Participant demographic profile information? YES_____ NO__X___

50. Question: No specific reference section.

Can the OPM provide historical volumes for calls and claims processed for the most recent

12-month period?

Answer: In 2014, the current Contractor received approximately 500,000 calls to its

Interactive Voice Response system, 1.3 million manual claims, and over 12 million paperless claims.

51. Question: Pages 2-134

Can the RFP be provided to us in MS Word format?

Answer: No, we will not provide the RFP in MS Word format.

52. Question: Page 2, Section Number (b)(1)

Are vendors required to meet the NAICS Codes?

Answer: The North American Industry Classification System (NAICS) Code describes the principal purpose of the service being acquired. Offerors must meet all of the requirements described in the solicitation.

53. Question: Page 4, Section Number (b)(3)

Can you confirm if the contract year is considered September 1 through August 31?

Would the first plan year under this contract begin January 1, 2016 or a different date?

Answer: The period of performance for Base Year 1 will be contract award through August

31, 2016. The period of performance for Base Year 2, Base Year 3, Base Year 4, and Option

Year will be September 1 through August 31.

54. Question: Page 4, Section Number (b)(3)

This indicates 325,000 health care FSA participants and 55,000 dependent care FSA participants.

Of the 55,000 dependent care FSA participants, how many also have health care or LEX FSA?

Answer: Of the 55,000 dependent care FSA participants, approximately 40,000 also have health care or LEX FSA.

55. Question: How many of the 325,000 HCFSA participants are in the general-purpose HCFSA and how many are in the LEX HCFSA?

Answer: For 2015, approximately 337,000 participants are in the general-purpose HCFSA and approximately 2,900 participants are in the LEX-HCFSA.

56. Question: Page 4, Section Number (b)(3)

What is the total participant count?

Answer: For 2015, the total participant count is approximately 353,000.

57. Question: Page 17, Section Number c(5)

This section seems to indicate that the $19.30 wage includes the cost of an employee's fringe benefits calculated on an hourly basis. Is that correct?

Answer: Yes, this rate is all-inclusive.

58. Question: Page 17, Section Number c(5)

Is the Contractor required to meet this wage (subject to any adjustments made in (6)(a) below for performance area?

Answer: No, the Contractor is not required to meet this rate. As stated below Clause

52.222-42 Statement of Equivalent Rates for Federal Hires (May 1989), “This Statement is for Information Only: It is not a Wage Determination.”

59. Question: Page 17, Section Number c(6)(a)

This section indicates a request for wage determination is due by 12/2/2014 and that a specific place or area was not provided. Since these are followed by places for inserted items, are we to assume that when the contract is drafted that this section will be completed to indicate the place or area where work is to be performed and a prospective date from the date of award will be inserted?

Answer: We corrected the date and revised it from December 2, 2014 to February 6, 2015.

See Amendment Number 0001, Number 5. The place of performance will be the successful offeror’s site. Therefore, the place of performance is unknown at this time since we have not selected the successful offeror. We will request a wage determination when we select the successful offeror and will attach the applicable wage determination to the contract.

60. Question: Page 19, Section Number 1752.209-71(f)

Is the employee recruiting and employee retention practices to be monitored by the

Contractor and reported to OPM? Or will be OPM actually be doing the monitoring? Please also address what the term "monitoring" includes. How involved will the OPM actually be in the Contractor's hiring and firing practices?

Answer: The Contractor is responsible for monitoring its employee recruiting and employee retention practices on a regular basis.

61. Question: Page 19, Section Number 1752.209-72

If the Contracting Officer requires that an employee be dismissed from work, does that mean that the employee must simply be dismissed from working on OPM's contract? Or does this mean that the employee must be terminated from all employment with the

Contractor?

Answer: This clause is only referring to the Contractor’s employees who will be working on the resulting contract.

62. Question: Page 19, Section Number 1752.209-73(a)(1)

Contractors have marketing and sales staff that will continue to solicit new business from other employers. Is this meant that staff other than marketing and sales staff will not solicit new business? Or does this mean that all staff will not solicit new business from the federal government? Or does this mean that marketing and sales staff that continue to solicit new business are unable to work on the OPM contract in any other capacity after award?

Answer: Paragraph (a)(1) of Clause 1752.209-73 means no contractor employees shall solicit new business while performing work under the resulting contract onsite at the

Government’s facility.

63. Question: Page 21, Section Number 1752.219-70(b)(1)

This language appears to state that an individual could not read from an electronic device in order to obtain navigational information. Does the language really just intend that an individual is not allowed to enter data into the navigational equipment while driving?

Answer: As stated in Clause 1752.209-75 Reducing Text Messaging While Driving (October

2009), Paragraph (b)(1), “Texting” or “Text Messaging” means reading from or entering data into any handheld or other electronic device, including for the purpose of SMS texting, e-mailing, instant messaging, obtaining navigational information, or engaging in any other form of electronic data retrieval or electronic data communication.” This paragraph means reading from or entering data into any handheld or other electronic device.

64. Question: Page 44, Section Number (d) (1) D.1.2.

Is it the intent to have claims administration begin on September 1, 2015 or January 1, 2016? If not, what is the date that claim administration would begin?

Answer: The Contractor must perform all contract requirements beginning September 1, 2015.

65. Question: Page 45, Section Number (d) (1) D.1.3.1.1.

The key elements indicate that claim payments are issued weekly. Will other claim frequencies be considered such as twice weekly, three times weekly, daily, etc.?

Answer: Yes, we will consider other claims frequencies with consideration on the cost impacts to the program, such as bank fees.

66. Question: Page 47, Section Number (d) (1) D.1.3.2.4.

In the event that there are insufficient payroll deductions to cover claims, what is the turn-around-time to receive funds if temporary assistance is required from the OPM Risk Reserve

Account?

Answer: If temporary assistance is required from the OPM Risk Reserve Account, the turnaround time is approximately 2-4 business days.

67. Question: Please provide the number of claims processed each month for the most recent full plan year. Please also provide information regarding the frequency of this occurrence and dollar amount requested for each occurrence over the most recent plan year.

2014 Health Care Claims Dependent Care Claims

January 1,259,402 26,161

February 1,506,258 26,871

March 156,242 32,243

April 1,445,806 22,512

May 1,149,775 22,583

June 1,330,144 28,184

July 923,495 15,090

August 808,409 14,846

September 850,018 23,958

October 586,763 9,653

2014 Health Care Claims Dependent Care Claims

November 509,979 9,899

December 561,945 13,077

The occurrence of claims and the dollar amount of each claim varies by day and by claim.

68. Question: Page 48, Section Number (d) (1) D.1.3.3.1.A.c. & d. & e. & k. & m.

Phone calls, emails, issues, medical necessity, appeals are not tracked to this level; is this a requirement? Can you provide a sample report?

Answer: Yes, these reports are required. We will not provide a sample report. The

Contractor must develop its own reports that meet the requirements

69. Question: Please provide the number of emails, calls, and appeals received each month for the most recent full plan year.

2014 Calls to Interactive Voice Response

(IVR)

Emails (Approximately)

Appeals (Approximately)

January 42,870 4,000 40-60

February 44,322 4,000 40-60

March 58,730 4,000 40-60

April 40,047 3,200 40-60

May 24,364 2,000 40-60

June 28,786 2,000 80-100

July 19,074 1,600 80-100

August 16,895 1,600 40-60

September 19,593 1,600 40-60

October 17,354 1,600 40-60

November 55,391 5,000 40-60

December 127,111 5,000 40-60

70. Question: Page 50, Section Number (d) (1) D.1.3.3.2

What is meant by "profit negotiation"?

Answer: We are referring to the Contractor meeting the performance standards in the

Quality Assurance Surveillance Plan (QASP), which can affect the Contractor’s price. If the

Contractor does not meet the performance standards in the QASP, OPM will reduce the price. We revised this sentence. See Amendment Number 0001, Number 6.

71. Question: Pages 51 and 52, Section Number (d) (1) D.1.3.4.1

In the instance where: 1) no allotment is made for the employee, 2) the Contractor is required to contact and focus on the employee, and 3) the employee may not be direct billed, what process is the Contractor to follow in order to obtain the necessary allotment?

Is the contractor to obtain permission from the employee and then contact the appropriate payroll center to obtain the allotment?

Answer: BENEFEDS will work with the payroll office and the Contractor will work with the participant to identify and resolve the issue. Under FedFlex, the Contractor will not reimburse expenses incurred during a period of no allotment (leave without pay) unless the employee accelerated allotments ahead of time.

72. Question: Page 52, Section Number (d) (1) D.1.3.4.2.1.B.

Why is there an assumption that no new participants enroll in the program after October 1?

Are employees not allowed to join the program after October 1? If an employee enrolls after October 1, does the Contractor get paid an administrative fee for those months or not?

Answer: We do not permit Qualifying Life Event or New Employee enrollments after

October 1 due to the small number of pay periods remaining in the year.

73. Question: Page 52, Section Number (d) (1) D.1.3.4.2.1.B.

Can you confirm if administrative fee billings for collection purposes only are to be produced two times per year and that invoices are to be produced monthly? Page 49, under D.1.3.3.1.B., invoice copies are required as standard monthly reports.

Answer: The monthly report will reflect whether an agency has paid its invoices. Some agencies take longer to pay than others. Invoices only need to be produced twice a year, but need to be tracked monthly for OPM.

74. Question: Page 52, Section Number (d) (1) D.1.3.4.2.1.D.

What other languages are required for claims translation services?

Answer: Any language needed to process claims at the same standards of timeliness and accuracy is required for claims translation services. In some cases, FSAFEDS has allowed employees to translate their own receipts if they are in a language other than English.

Employees must certify that the information is true and accurate when submitting their claim.

75. Question: Page 53, Section Number (d) (1) D.1.3.4.2.2.C.

It is understandable that an additional fee is not allowed for administration of carryover amounts when the employee has reenrolled for the following year. However, if the employee has not reenrolled for an additional amount but simply allowed the excess monies to rollover into the next year, is it the intention of OPM that the Contractor will be required to service that account for additional year(s) (since this could continue for as long as the employee remains eligible) at no additional cost?

Answer: Re-enrollment is a prerequisite for carryover. Employees who neglect to re-enroll will not have a carryover account the following year. The Contractor will still need to process close-out claims for prior year expenses through the close-out date of April 30.

76. Question: Page 54, Section Number (d) (1) D.1.3.4.2.3.

Has OPM ever requested that the Contractor slow down payment of claims? If so, please describe in detail the dates and reasoning. This would create additional calls; how is this accounted for and does OPM do outreach communication to participants to notify them that claim payments will be delayed?

Answer: In recent memory, OPM has not requested the Contractor to slow down payment of claims.

77. Question: Page 54, Section Number (d) (1) D.1.3.4.2.4.

What is the current forfeiture balance?

Answer: Approximately $7.4 million was forfeited from the 2013 plan year.

78. Question: Page 55, Section Number (d) (1) D.1.3.4.2.4.A.

We understand this language to indicate that the Contractor assumes the tax liability for interest earned. However, the interest must be paid to OPM (this section later indicates that the interest should be transferred to the Claims Reimbursement account). Please clarify where the interest is to be transferred/paid. Is the Contractor allowed to offset the interest payment as an expense?

Answer: Interest in excess of bank fees is to be deposited in the Claims Reimbursement

Account held by the Contractor, but owned by OPM. The Contractor must report this amount to OPM monthly, but does not need to transfer actual funds to OPM.

79. Question: Page 58, Section Number (d) (1) D.1.3.4.2.4.C.

Please describe the information expected to be provided via the IVR?

Answer: The offeror must provide this information in its proposal.

80. Question: Page 59, Section Number (d) (1) D.1.3.4.2.4.C.

How many status changes take place each year for health care FSAs and for dependent care

FSAs?

Answer: This information is not available.

81. Question: Page 60, Section Number (d) (1) D.1.3.4.3.

What is the "refund reconciliation?"

Answer: To the best of OPM’s knowledge, this is a reconciliation of erroneous payroll contributions that need to be refunded to the participants.

82. Question: Page 60, Section Number (d) (1) D.13.4.4.

Please provide the total number of claims submitted during the most recent full plan year.

Answer: See the Answer to Question Number 67.

83. Question: Of this total, please provide, by carrier, the number of paperless claims submitted during the most recent full plan year.

Answer: All DCFSA claims are manual. Approximately 7-8% of HCFSA claims are manual, except during the last three months of the year when the figure is 12-15%. The remaining

HCFSA claims are paperless. Paperless claims by carrier is not available.

84. Question: Page 63, Section Number (d) (1) D.1.3.4.6.

How many agency invoices remain unpaid each June 30th?

Answer: This varies year-to-year. This information is not available.

85. Question: Page 65, Section Number (d) (1) D.1.3.6.1.d.

What languages are currently supported in addition to Spanish?

86. Question: Page 65, Section Number (d) (1) D.1.3.6.1.f.

Can you confirm if the plan year is September 1 through August 31 or calendar year?

Answer: The plan year is January 1 to December 31. There is a grace period for dependent care. The contract year is September 1 to August 31.

87. Question: Page 66, Section Number (d) (1) D.1.3.6.2.

Please provide specifics regarding the type of information provided through the IVR.

88. Question: Please also provide the volume of calls handled via the IVR for the most recent full plan year.

Answer: See the answer to question number 69.

89. Question: Page 66, Section Number (d) (1) D.1.3.6.2.

What language translations are expected for the IVR?

90. Question: Page 66, Section Number (d) (1) D.1.3.7.

What is OPM's expectation/projections for increased participation?

Answer: OPM projects approximately 1% growth per year.

91. Question: What are the reasons OPM feels the enrollment has not increased in recent years?

Answer: The enrollment increased 4.4% for 2015. Prior to this, enrollment had been relatively flat.

92. Question: Page 67, Section Numbers (d) (1) D.1.3.7. 4. & 6.

Are any communication/marketing materials required to be mailed directly to participant homes? If so, what is the quantity? Will this be mailed to all eligible employees or current participants?

Answer: Direct mail has been used in the past, but is not required if more cost-effective marketing strategies are available. The amount of direct amount is not available. OPM will require direct mail if we believe a situation warrants this method of communication/notification.

93. Question: How many agency sites require material to be mailed? What was the quantity and number of locations for the most recent plan year? Can material be emailed or otherwise posted?

Answer: This information is not available. The Contractor should provide materials in the most cost-effective manner to ensure re-enrollments and new enrollments.

94. Question: Page 68, Section Number (d) (1) D.1.3.8.1

We understand this language to indicate that at the end of the year if aggregate employee reimbursements exceed aggregate employee allotments that the Contractor must make up the difference out of its own funds. Additionally, it appears that if aggregate employee allotments exceed aggregate employee reimbursements that the difference must be returned to OPM. Is that understanding accurate?

Answer: Yes, this is correct. Because HCFSA participants have their entire balance available on January 1 but make payroll deductions over the course of the year, there is some risk of underfunded reimbursements from employees who leave Federal service. Historically, these amounts have been offset and dwarfed by forfeitures (allotments exceeding reimbursements).

95. Question: Page 72, Section Number (d) (1) D.1.3.10.

QASP#1 - Is the minimum 5% charge at risk cumulative overall or per line item?

Answer: This is cumulative.

96. Question: Page 73, Section Number (d) (1) D.1.3.10.

Item 3.2 - Can you provide details regarding what is included in the clearance applications and documentation requirements?

Answer: The offeror must provide this in its proposal.

97. Question: Page 74, Section Number (d) (1) D.1.3.10.

QASP#2-Is the minimum 5% charge at risk cumulative overall or per line item?

Answer: This is cumulative.

98. Question: Page 75, Section Number (d) (1) D.1.3.10.

Item 1.4 - Can you provide a copy of the standard assessment tool used for post-call assessments?

Answer: The offeror must provide this in its proposal.

99. Question: Page 108, Section Number (e)(2)(F)

Please provide the current fee structure. From page 2, (b)(2)(d) and page 42, (d)(1)D.1.1, it appears that the participating Federal agencies pay the entire fee. Will you please confirm that the entire fee is paid by the employer? If not, please describe the cost sharing. If employees contribute toward the cost, how are the fees paid? From the FSA, via pretax payroll deduction, other?

Answer: Participating agencies pay the administrative fees on behalf of their participating employees. Employees do not pay the administrative fee.

100. Question: Page 115, Section Number (e)(3)(C)Technical Factor 5.

Describe or provide a schedule of health fairs conducted each year. The number of fairs, dates, locations, duration, attendance, etc.

Answer: This varies by agency and by office. The Contractor may not be able to attend all fairs, but should try to attend as many as feasible or most.

101. Question: Page 9, Appendix D

How many benefits officers meetings are held annually? How much time is allotted for presentations?

Answer: This information is not available. The amount of benefits officers meetings held annually varies by year under current budget conditions. The amount of time allotted for the presentations varies and is usually flexible.

102. Question: How many employee educational meetings and/or webinars were held during the most recent plan year? At what locations? What was the attendance at each?

103. Question: Page 10, Appendix D

Please provide the type and quantity of material mailed to locations for this past plan year. How many locations?

104. Question: Page 12, Appendix E

How many employees of the current administrator now have Top Secret clearance?

105. Question: Section (b) 4, Pg 9 - Are the current administration fees billed on an account basis or a participant basis e.g., if an employee enrolls in both a HSFSA and a DCFSA, are the agencies billed for one administration fee or two administration fees?

Answer: The current administration fees are billed on a per account. The employee enrolled in an HCFSA and an DCFSA would be billed for two administrative fees.

106. Question: Section D.1.2, Pg 44 - Is there any flexibility in the live dates for both enrollment support and account administration support?

Answer: Our target is for the successful offeror to perform all requirements beginning on September 1, 2015. Only minimal enrollment support would be needed prior to mid-

November when Open Season would begin.

107. Question: Section D.1.3.4.2 Pg 52 - Can you provide more detail on the administrative services required for foreign claims requests e.g., translation service, anticipated volumes?

Answer: Participants may self-translate foreign claims as long as they certify that the information presented is accurate. We do not separately track foreign claims.

108. Question: Section D.1.3.4.2 Pg 57 - Does OPM expect the provider to host and maintain the FSAFEDS site as part of the per participant administrative fees received?

Answer: Yes, OPM expects the Contractor to host and maintain the FSAFEDS site as part of the per participant administrative fees received.

109. Question: Section D.1.3.4.2 Pg 58 - Which payroll systems /providers do the 160 agencies use today?

Answer: To the best of OPM’s knowledge, all payroll deductions will be processed by

BENEFEDS for the Contractor, so generally speaking BENEFEDS is the only payroll point of contact for the Contractor.

110. Question: In order to address current needs what are the key reasons that OPM is issuing this RFP?

Answer: The current contract expires this year. In accordance with the Federal

Acquisition Regulation (FAR), we are required to compete the contract.

111. Question: Is the current provider bidding on this RFP?

Answer: OPM does not know the potential offerors.

112. Question: Will the provider be allowed to retain a portion of the investment earnings in excess of bank fees to offset administrative costs?

Answer: No, the Contractor will not be allowed to retain a portion of the investment earnings in excess of bank fees to offset administrative costs. Bank fees/costs should be offset from the interest earnings as provided. All other administrative costs must be included in the per participant per month administrative fees.

113. Question: How are income taxes funded on the interest/investment earnings?

114. Question: Does OPM currently offer a debit card or will it be offered in 2015 or future years?

Answer: OPM does not currently offer debit cards for FSAFEDS. This is something we would consider for future years.

115. Question: Can you provide the participation counts for HRA and HSA and participation projection for the next three years?

Answer: No, the FSAFEDS Program Office does not tract HRA and HSA participation headcounts. FSAFEDS enrollment is projected to grow approximately 1% each year.

116. Question: What has the trend been for FSA participants converting to HRA and/or HSA plans?

Answer: All Federal employees who are eligible for the FEHB health insurance program are eligible to enroll in an HRA, and most are eligible for an HSA. Some FSAFEDS participants have an HRA or an HSA in addition to their flexible spending account.

117. Question: Does OPM have future plans to centralize the payroll systems to consolidate the data exchange process? If so, when?

Answer: No, this is not under…