REQUEST_FOR_PROPOSAL_FOR_COMPREHENSIVE_ADMINISTRATIVE_AND_INVESTMENT_SERVICES_FOR_THE_COUNTY_OF_ORANGE’S_HEALTH_REIMBURSEMENT_ARRANGEMENT_PROGRAM_(Addendum_#1_Revision).pdf

COUNTY OF ORANGE

COUNTY EXECUTIVE OFFICE HUMAN RESOURCES

REQUEST FOR PROPOSAL (RFP)

FOR

REQUEST FOR PROPOSAL FOR COMPREHENSIVE

ADMINISTRATIVE AND INVESTMENT SERVICES FOR

THE COUNTY OF ORANGE’S HEALTH

REIMBURSEMENT ARRANGEMENT PROGRAM

RFP NO. 017-202406-MC

County of Orange RFP

County Executive Office Human Resources - REQUEST FOR PROPOSAL FOR COMPREHENSIVE

ADMINISTRATIVE AND INVESTMENT SERVICES FOR THE COUNTY OF ORANGE’S HEALTH REIMBURSEMENT

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County of Orange

County Executive Office Human Resources

Procurement Services

400 W. Civic Center Drive

Santa Ana, CA

92701

SCHEDULE OF ACTIVITIES

Release Project Date September 11, 2024

Question Submission Deadline September 18, 2024, 4:00pm

Question Response Deadline September 25, 2024, 4:00pm

Proposal Submission Deadline October 9, 2024, 4:00pm

**This is a proposed schedule that is subject to change. Any changes to the schedule for the RFP process will be issued to all Respondents via addenda on the County’s online bidding system https://procurement.opengov.com/portal/ocgov **

PROPOSALS MUST BE RECEIVED ON

OR BEFORE

Wednesday, October 9, 2024

4:00 pm https://procurement.opengov.com/portal/ocgov

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SECTIONS

SECTION 1. INTRODUCTION AND INSTRUCTIONS TO OFFERORS

SECTION 2. WRITTEN PROPOSAL SCORING FORMAT

SECTION 3. PROPOSAL RESPONSE REQUIREMENTS

Attachments:

A - Attachment A - Scope of Services

B - Attachment B - Fees and Investment Options

C - Attachment C - Proposed Implementation-Transition Plan and Project Schedule

D - Attachment D - Staffing Plan

E - Attachment E - Performance Standards

F - Attachment F - Financial Performance Guarantees

G - Attachment G - Account Management Report Card

H - Attachment H - Business Associate Contract (HIPAA)

I - Exhibit 1 - EDD Independent Contractor Reporting Requirements

J - Exhibit 2 - Local Small Business Preference and Disabled Veteran Business Enterprise

Certification Requirements

K - Exhibit 3 - County of Orange Campaign Contribution Disclosure Form

L - Appendix A - Health Reimbursement Arrangement Plan Document

M - Appendix B - Plan Investments and Assets

N - Model Contract

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SECTION 1. INTRODUCTION AND INSTRUCTIONS TO OFFERORS

1.1 A. INTRODUCTION

This Request for Proposal (RFP) is being released for the provision of Comprehensive Administrative and Investment Services for the County of Orange’s Health Reimbursement Arrangement Program

(HRA Plan Administration and Investment Services). This RFP is an opportunity to allow qualified vendors to present proposals that will assist the County of Orange, CEO/HRS/Employee Benefits in selecting a contractor that will best meet the needs of the County for a three (3) year contract with two (2) optional one

(1) year renewal terms. Services are requested on an alliance basis. Review the RFP for more details on the acceptable terms of this alliance arrangement.

1. Plan Description

The County established the Health Reimbursement Arrangement (HRA) Program for the purpose of funding the reimbursement accounts of eligible employees and participants on a pre-tax basis and reimbursing the unreimbursed and substantiated qualified medical expenses of retired or separated participants (or spouse or covered dependent).

In 2008, the County implemented a plan to restructure the Retiree Medical Program for two of the

County’s represented units – the Association of Orange County Deputy Sheriffs (AOCDS) and the

Association of Orange County Law Enforcement Management (ACLEM). Individual HRA accounts were created for the current and future AOCDS and ACLEM represented employees, funded by a combination of County and mandatory employee contributions (all contributions are made on a pre-tax basis). In 2016, members of the Orange County Attorneys Association (OCAA) were added to the HRA. In 2023, the remaining County employees, both represented and unrepresented, were added to the HRA. Benefits (HRA account balances) become available to the individual Participant to be used to reimburse eligible qualified medical expenses upon retirement or separation from County service.

The Plan is intended to comply with the requirements of sections 105 and 106 of the Internal

Revenue Code of 1986 (Code), and as a health reimbursement arrangement as defined under

Internal Revenue Service (IRS) Notice 2002-45. The contributions made to reimbursement accounts, any investment gains and qualified medical expenses reimbursed under this Plan are intended to be eligible for exclusion from the gross income of eligible employees, participants and retired participants (including the spouses and dependents of each) under Code § 105(b).

The table below includes background information on the HRA. Unless otherwise indicated, information is as of 6/30/2024. The County’s HRA plan includes one active plan and one closed plan.

The County established the Health Reimbursement Arrangement (HRA) Program for the purpose of funding the reimbursement accounts of eligible employees and participants on a pre-tax basis and reimbursing the unreimbursed and substantiated qualified medical expenses of retired or separated participants (or spouse or covered dependent).

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In 2008, the County implemented a plan to restructure the Retiree Medical Program for two of the

County’s represented units – the Association of Orange County Deputy Sheriffs (AOCDS) and the

Association of Orange County Law Enforcement Management (ACLEM). Individual HRA accounts were created for the current and future AOCDS and ACLEM represented employees, funded by a combination of County and mandatory employee contributions (all contributions are made on a pre-tax basis). In 2016, members of the Orange County Attorneys Association (OCAA) were added to the HRA. In 2023, the remaining County employees, both represented and unrepresented, were added to the HRA. Benefits (HRA account balances) become available to the individual Participant to be used to reimburse eligible qualified medical expenses upon retirement or separation from County service.

The Plan is intended to comply with the requirements of sections 105 and 106 of the Internal

Revenue Code of 1986 (Code), and as a health reimbursement arrangement as defined under

Internal Revenue Service (IRS) Notice 2002-45. The contributions made to reimbursement accounts, any investment gains and qualified medical expenses reimbursed under this Plan are intended to be eligible for exclusion from the gross income of eligible employees, participants and retired participants (including the spouses and dependents of each) under Code § 105(b).

The table below includes background information on the HRA. Unless otherwise indicated, information is as of 6/30/2024. The County’s HRA plan includes one active plan and one closed plan.

Current provider MissionSquare Retirement

Assets Plan 803049 - $345,627,685 (active plan)

Plan 800161 - $5,881,908 (closed plan)

Participants Plan 803049 – 22,060 participants with a balance

Active – 18,763

Terminated – 3,297

Plan 800161 – 327 participants with a balance

Active – 0

Terminated – 327

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Contributions

(Contribution rates are established by labor agreements and subject to change.)

AOCDS Employees: 5% employer and 0% employee mandatory contributions

ACLEM Employees: 4% employer and 0% employee mandatory contributions

OCAA Employees: 1% employer and 1% employee mandatory contributions

All Other Employees: employer contribution each pay period of $60 for Full-Time and $30 for Part-Time employees (2.5% increase annually in July)

Investment options See Appendix B – Plan Investments and Assets

Administrative Fees 0.19% on all assets

Number of accounts with balance and benefit eligible as of 6/30/24 Plan 803049 – 3,297

Plan 800161 – 327

Number of participants receiving contributions in Q2 2024

Plan 803049 – 18,763

Plan 800161 – 0

Contributions Q2 2024 Plan 803049 – $11,477,962

Plan 800161 – $0

Contributions 7/1/2023 to 06/30/2024 Plan 803049 – $102,494,404

Plan 800161 – $0

Number of claims reimbursements processed in Q2 2024

Plan 803049 – 4,474

Plan 800161 - 984

Number of claims reimbursements processed 7/1/2023 to 06/30/2024

Plan 803049 – 22,276

Plan 800161 - 6,008

Amount of claim reimbursements paid in

Q2 2024

Plan 803049 – $2,081,363

Plan 800161 - $181,100

Amount of claim reimbursements paid

7/1/2023 to 06/30/2024 Plan 803049 – $8,131,588

Plan 800161 - $753,741

Number of group presentations 7/1/2023 to 06/30/2024

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Number of one-on-one consultations

7/1/2023 to 06/30/2024

198 virtual

12 in-person

Number of participant voice response contacts 1,869 calls to IVR

Number of participant call center contacts

1,513 calls routed to contact center

Number of participant website contacts Plan 803049 – 64,525

Plan 800161 – 3,631

2. Administrative Service Provider Structure

The County currently utilizes one provider for the two plans described above. It is anticipated that maintaining a single administrative service provider will provide consistent participant communications, plan level efficiencies, as well as cost savings for participants. Therefore, the

County anticipates selecting a single administrative service provider as a result of this RFP. Current assets will be transferred to the successful administrative provider (Contractor). The alliance structure is such that the administrative service provider enters into contracts with non-proprietary mutual funds or other investment products at the direction of the County.

3. Plan Financial and Participant Data

Appendix B - Plan Investments and Assets of this RFP contains information on the amount of assets in the plans. Note, only terminated participants are eligible for reimbursements. Plan 800161 is a closed plan and all remaining participants with a balance are eligible for reimbursements.

4. Plan Administrative Expenses

The County requires that the Offeror provide reimbursement to the County for a portion of the administrative and oversight expenses it incurs in maintaining the Plans for County employees.

This amount has been determined to be up to $90,000 per year, increased annually by the California

CPI for the previous calendar year. This reimbursement must be remitted to the County on a quarterly basis, or other time period as agreed to by the County.

5. Investment Offering – Core Funds

Each of the current core funds and their ticker symbols are listed in Appendix B – Plan

Investments and Assets. It is the County’s intention that each of the plans will continue to offer the investment options currently in place.

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Offerors are expected to provide recordkeeping services on an alliance basis for this fund lineup;

however, if a prospective Offeror cannot accommodate one or more of the funds listed, this should be indicated in the Offeror’s proposal (see Questionnaire) and alternative funds proposed.

6. Investment Offering – Lifecycle Options

The County currently offers the BlackRock Lifepath Index Funds as the default investment option for the plans.

7. Investment Offering – Stable Value

Within each of the plans, the current stable value fund is the MissionSquare PLUS Fund S11.

Offerors must have the ability to offer the existing stable value fund, a similar stable value fund offering or other cash equivalent in its fund line up.

8. Contract Term

The County anticipates engaging the selected Offeror for a three-year contract with the option to renew for two additional consecutive one-year renewal periods, at the same fees. The Contract effective date is anticipated to be July 1, 2025.

REFER TO ATTACHMENT A TO THE MODEL CONTRACT FOR A DETAILED

DESCRIPTION OF THE SCOPE OF SERVICES.

Offeror is expected to provide all the products and services that will meet or exceed the requirements and conditions, as set forth in this RFP, in accordance with the Model Contract.

1.2 B. PROPOSED TIME SCHEDULE

Date Action

September 11, 2024 Release of RFP

September 18, 2024 Questions from Offerors to be submitted electronically via

OPENGOV, https://procurement.opengov.com [RFP #017-

202406-MC] by 4:00 P.M. Pacific Time

September 25, 2024 Issuance of Addendum (Questions and Answers)

October 9, 2024 Deadline for Proposals (Closing Date) – On or before

October 9, 2024 at 4:00 P.M. Pacific Time

October 9, 2024 through

November 21, 2024 Evaluation of Proposals https://procurement.opengov.com/

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November 20, 2024 and November

21, 2024

Offerors’ Oral Presentations – The most responsive proposals may be asked to give an in-person oral presentation within five (5) calendar days of notification.

Please note the County reserves the right to modify the proposed RFP time schedule in its sole and absolute discretion if the County determines a modification is necessary.

1.3 C. INSTRUCTIONS TO OFFERORS AND PROCEDURES FOR SUBMITTAL

By submitting a Proposal, the Offeror represents that it has thoroughly examined and agrees to provide the services required under this RFP as detailed in Section III, Attachment A, and that it is capable of providing the services to achieve the County’s objectives. Offeror must abide by all provisions of the

Model Contract unless Offeror notes its objections in its Proposal. As noted below, if the Offeror cannot abide by any provisions of the Model Contract, Offeror must make notice of which provisions it cannot comply with in its Proposal.

Each Offeror must submit its Proposal in strict accordance with all requirements of this RFP and compliance must be stated in the Proposal. Deviations, clarifications and/or exceptions must be clearly identified and listed separately as alternative items for the County’s consideration.

i. Proposal Close Date and Time: Proposals are due on or before October 9, 2024, no later than 4:00 P.M. Pacific Time and must be submitted electronically via

OPENGOV, https://procurement.opengov.com [RFP #017-202406-MC]. For assistance on uploading proposals to OPENGOV, please contact the OPENGOV

Support Team via email at procurement-support@opengov.com. The County will not accept proposal(s) after the due date and time specified above in section B.

Paper, Facsimile, and Email proposals will NOT be accepted.

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COUNTY OFFICES WILL BE CLOSED FOR THE FOLLOWING HOLIDAYS:

Labor Day September 2, 2024

Native American Day September 27, 2024

Veteran’s Day November 11, 2024

Thanksgiving November 28 & 29, 2024

Christmas Day December 25, 2024

ii. Clarifications: The County has attempted to provide all information available. It is the responsibility of each Offeror to review, evaluate, and, where necessary, request any clarification prior to submission of a Proposal. If any person contemplating submitting a Proposal for the proposed contract is in doubt as to the true meaning of any part of this RFP or finds discrepancies in or omissions from the specifications, he/she may submit a written request for clarification to the assigned Deputy Purchasing

Agent, via https://procurement.opengov.com [RFP #017-202406-MC]. For

OPENGOV assistance, please contact the OPENGOV Support Team via chat at https://procurement.opengov.com or via email at procurement-support@opengov.com.

iii. Addenda: Any interpretation of, or correction to, this RFP will be made only by addendum issued by the Deputy Purchasing Agent or through OPENGOV. It is the

Offeror’s responsibility to access the website, https://procurement.opengov.com,throughout the entire process to obtain the most up-to-date information regarding this procurement process. The County will not be responsible for any other explanations, corrections to, or interpretations of the documents, including any oral information.

mailto:procurement-support@opengov.com mailto:procurement-support@opengov.com

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There will be No Pre-Proposal Conference for this RFP. Questions regarding the contents of this Proposal must be submitted electronically (via https://procurement.opengov.com [RFP #017-202406-MC] on or before

September 18, 2024, at 4:00 pm. (Pacific Time), and directed to the Deputy

Purchasing Agent.

iv. Validity of Proposals: Proposals must be valid for a period of at least three hundred and sixty-five (365) days from the Closing Date. No Proposal may be withdrawn after the Closing Date.

v. Submission Format: Each Respondent must provide: (1) complete electronic copy of their proposal. Proposals shall be formatted in the requested format type (PDF, Excel, or Word). All pages must be identified sequentially as listed below. Please try to limit file names to 80 characters or less.

Cover Page, and all applicable addenda, if any (PDF format)

Note: Special signature requirements for Corporations

Part 1 – Offeror’s Concurrence/Compliance (PDF format)

Part 2 – Offeror’s Company Profile (MS Word format)

Part 3 – Offeror’s Proposal Questionnaire (MS Word format)

Part 4 – Offeror’s References (PDF format)

Part 5 – Redlined Model Contract, including Attachments A through H, with any additions or deletions shown using “tracked changes”.

Part 6 – Additional Items:

• Section III, Exhibit 1 – EDD Independent Contractor Reporting Requirements (PDF format), if not applicable please omit;

• Section III, Exhibit 2 – County of Orange Local Small Business Preference

Certification Requirement (PDF format), if not applicable please omit;

• Section III, Exhibit 3 - County of Orange Campaign Contribution Disclosure Form, required for all Offerors (PDF format).

It is imperative that all Respondents responding to this RFP comply exactly and completely with the instructions set forth herein. All responses to this RFP shall be word-processed (except where otherwise provided or noted), concise, straightforward, and must fully address each requirement and question. Although not as a substitute for a complete written response, additional material, ADMINISTRATIVE AND INVESTMENT SERVICES FOR THE COUNTY OF ORANGE’S HEALTH REIMBURSEMENT

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Note: Allow sufficient time to upload all required files. OPENGOV will not allow any uploads after the due date and time specified herein, e.g., if Part 1 and 2 uploaded successfully at 3:58:38

P.M. and Part 3 is in progress of being uploaded at 4:00:01 P.M., Part 3 will not upload successfully.

vi. Confidential, Proprietary or Trade Secret Information: Proposals are not to be marked as confidential or proprietary and must not constitute or contain confidential, proprietary, or trade secret information. The County may refuse to consider any Proposal so marked.

All Proposals shall become the property of the County. The County reserves the right to make use of any information or ideas in the Proposals submitted. Proposals submitted in response to this RFP may become subject to public disclosure per the requirements of the California Public Records Act, Government Code Section 6250 et seq. Please be advised that all information and documents submitted to the County by Offeror shall become non-confidential, non-proprietary, non-trade secret, public records without exception and subject to public disclosure by the County at any time without prior notice to Offeror. The County shall not be liable in any way for disclosure of any such records or part thereof related to this RFP or any Proposal, including, but not limited to, evaluations, proposals, or any other information or records. In submitting the information and documents, the Offeror is agreeing to the County’s release of such information and documents in response to a Public Records request without further notice to the Offeror and is agreeing to indemnify and hold harmless the County for release of such information and documents.

By submitting information and documents to the County as part of this RFP, Offerors acknowledge and agree to the terms of this Section 6.

vii. Qualifications: By submitting a Proposal, the Offeror represents that it has thoroughly examined and become familiar with the services required under this RFP and that it is capable of providing the services to achieve the County’s objectives.

viii. Compliance: Each Offeror must submit its Proposal in strict accordance with all requirements of this RFP and such compliance must be stated in the Proposal.

Deviations, clarifications and/or exceptions must be clearly identified and listed separately as alternative items for the County’s consideration, as specified in Section

II, Part 1, Subsection 10, Statement of Compliance. The County, in its sole and absolute discretion, may reject a Proposal if it is conditional, incomplete or deviates from the specifications in this RFP.

ix. Presentations/Demonstrations: After the Closing Date, evaluation and Proposal clarification will commence. Offerors who submit Proposals most responsive to the

County’s requirements in this RFP, and therefore receive the highest score in the evaluation process, may be invited to give an in-person presentation/demonstration of

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ARRANGEMENT PROGRAM, 017-202406-MC Page 14 of 30 their Proposal to County staff. This presentation/demonstration will be provided to the

County at no cost to the County.

Invited Offeror(s) should be prepared to make their oral presentation/demonstrations in-person at the County offices within five (5) calendar days after notification and be prepared to discuss all aspects of the Proposal in detail, including technical questions regarding the Proposal. Invited

Offeror(s) shall not be allowed to alter or amend the Proposal through the use of the presentation/demonstration process. Invited Offeror(s) who cannot attend the presentation/demonstration scheduled as requested may be subject to elimination from the selection process at the County’s sole and absolute discretion.

x. County Rights: The County reserves the right to negotiate modifications with any

Offeror as necessary to serve the best interests of the County. Any Proposal may be rejected as non-responsive if it is conditional, incomplete or deviates from specifications in this RFP. The County reserves the right to waive, at its discretion, any procedural irregularity, immaterial defects or other improprieties which the County deems reasonably correctable or otherwise not warranting rejection of the

Proposal. No such waiver will excuse a proponent from full compliance.

xi. Expenses: Pre-contractual expenses are not to be included in, or as part of Attachment

B – Fees and Investment Options, under the Model Contract. Pre-contractual expenses are defined as including, but not limited to, expenses incurred by the Offeror such as costs incurred in; a.) preparing its Proposal in response to this RFP; b) submitting that

Proposal to the County; c) negotiating with the County any matter related to the

Offeror’s Proposal; and d) any other expenses incurred by the Offeror prior to the date of award and execution, if any, of the Contract.

xii. Notice: The County reserves the right to: a) negotiate the final Contract with any

Offeror(s) as necessary to serve the best interests of the County; b) withdraw this RFP, in whole or in part, at any time without prior notice; c) award its total requirements to one Offeror or to apportion those requirements among two or more Offerors as the

County may deem to be in its best interests; and d) reject any Proposal if it is conditional, incomplete or deviates from the specification in this RFP.

The County makes no representations that any Contract will be awarded to any Offeror responding to this RFP. Moreover, the County may decide to forego negotiations with the Offeror and accept the Proposal submitted; therefore, the Proposal submitted should contain the Offeror’s most favorable terms and conditions.

xiii. Joint Venture: Where two or more Offerors desire to submit a single Proposal in response to this RFP, they should do so on a prime/subcontractor basis rather than as a joint venture. The County intends to contract with a single firm or multiple firms but not with multiple firms doing business as a joint venture.

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xiv. Lobbyist: The County does not require and neither encourages nor discourages the use of lobbyists or other consultants for the purpose of securing business.

xv. D-U-N-S Number: The County requires a valid Data Universal Number System (D-

U-N-S) number prior to Contract Award. If needed, your company may obtain one at no cost at www.dnb.com. If you are unable to provide/obtain a D-U-N-S number, please indicate so in your proposal/bid submission response.

1.4 D. EVALUATION PROCESS AND CRITERIA

Proposals will be evaluated on the basis of the response to all requirements in this RFP. The County shall use the following criteria in its evaluations and comparisons of Offeror(s). No inference is to be drawn concerning relative importance of criteria based on the order presented

Contract award shall be made to the responsible Offeror(s) whose proposal is most advantageous to the

County, taking into consideration the applicable evaluation criteria set forth below. Please note, however, that the listing of fees as an evaluation criterion does not require the County to select the

Offeror(s) with the lowest fee proposal.

Proposals will be evaluated on the basis of responsiveness to the questions and requirements in this

RFP by an evaluation panel (Panel).

Proposals will be competitively evaluated on the basis of the following criteria listed in random sequence not in the order of importance:

A. Organization, Staff Qualifications, and Relevant Experience: Experience of Offeror including financial condition, prior experience and performance record, including references, technical innovation, transition planning and quality assurance plans. Offerors will be evaluated on the extent to which they can accept existing contract provisions (See Model Contract).

B. Participant Communications and Customer Service Capability: Experience of Offeror including the ability to provide the customer service, participant communication, and education requirements outlined in this RFP. This will include staffing (including for any local service office), competence of personnel whom the Offeror intends to assign to the project, the Offeror’s experience in providing enrollment counseling, investment information and other services such as investment advice for participants and the capabilities of voice response and website systems that are proposed.

C. Claims Administration: Experience of Offeror in processing claims for reimbursement, including but not limited to methods for submitting claims, disbursement options, requirements/restrictions, and oversight/management of subcontractors if utilized.

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D. Plan Administrative Services: Experience of the Offeror, including the ability to provide the administrative and recordkeeping service requirements outlined in the RFP. This will include competence of personnel whom the Offeror intends to assign to the project and the capabilities of the Offeror’s system to execute the various transactions, to interface with the County’s systems, to maintain participant and plan level records, including the financial information and reporting required by the County, and accurately represent the financial status of the participants and the

Plans. This also includes the claims administration services.

E. Investment Services and Trust Administration: Offerors will also be evaluated on their ability to maintain the current investment option array to the greatest extent possible and to provide the greatest amount of investment flexibility to the County in making future fund changes to the investment option array. Offerors shall also be evaluated on the stable value option offered, as well as trust administration services.

F. Implementation/Transition: Experience of the Offeror in implementing plans of similar size and complexity, as well as the reasonableness of the timeline and resources to be dedicated to

G. Cybersecurity: Compliance with Department of Labor’s (DOL) Employee Benefits Security

Administration (EBSA) guidance related to cybersecurity and adherence to, or exceeding, industry standards for protecting participant information and plan asset data. Offers will be evaluated on documentation and implementation of cybersecurity best practices, track record including any history of past security breaches and remediation actions taken, as well as innovative/industry leading approaches to safeguarding participant and plan data.

H. Cost: Offerors will be evaluated on the overall value of all services to be provided for the cost

(recordkeeping, administration, individual and group meetings, communications, etc.).

Proposals deemed to meet all minimum RFP requirements will be scored based on established criteria, which have been weighted and will be assigned points that measure the responsiveness to each identified criterion. The total number of points earned will be tallied for each Proposal, and the

Proposals will be rank-ordered, based upon the Offeror(s) submitted written materials.

Following the initial evaluation process, the highest ranking Offeror(s) (if deemed necessary by the

Panel) may be required to complete an additional questionnaire regarding more specific processes and capabilities, as well as provide additional pricing information. In addition, Offerors may be required to provide an on-site interview or clarification as it relates to the requested and/or proposed services.

Offerors who submit Proposals most responsive to the County’s requirements may be asked to give an oral presentation of their Proposal to County staff. Selected Offerors should be prepared to make their oral presentation within five (5) calendar days after notification and be prepared to discuss all aspects of their Proposals in detail, including technical questions regarding the Proposals. The Panel may not score the Offeror(s) based on performance of these additional requirements and use this score in making a final recommendation for award. These additional requirements will take place before the final

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ARRANGEMENT PROGRAM, 017-202406-MC Page 17 of 30 recommendation for award to the County of Orange Board of Supervisors and any contract negotiations.

1.5 E. SELECTION / AWARD PROCESS

Upon completion of the evaluation process, the Panel will make a recommendation for award to the

DPA. Contract award shall be made to the responsible Offeror whose proposal is most advantageous to the County. Upon successful completion of negotiations, the award and executed Contract will be submitted to the Board of Supervisors for approval. In addition, County reserves the right to verify and validate any information prior to Contract Award and during the entire Term of the Contract.

The Model Contract contained in Section III of this RFP is the Contract proposed for execution. It may be modified to incorporate negotiated items and other pertinent terms and conditions set forth in this

RFP, including special conditions and requirements and those added by addendum, necessary attachments, and to reflect the Offeror’s Proposal and qualifications. The County reserves the right to add or delete provisions, terms or conditions to support the final proposed Contract.

Negotiations may or may not be conducted with the finalist(s); therefore, the proposal submitted should contain Offeror’s most favorable terms and conditions, since the selection and award may be made without further discussion or need for clarification. Any exceptions to the terms and conditions of the proposed Contract or the statements regarding Offeror’s inability to comply with any of the provisions thereof are to be declared in the Offeror’s proposal: Section II entitled Proposal Response

Requirements. Any additional exceptions to the terms and conditions made by any Offeror after submission of its proposal may result in elimination from further consideration.

If a satisfactory Contract cannot be negotiated in a timely manner, the County, in its sole discretion, may terminate negotiations with the selected Contractor and begin Contract negotiations with the next finalist.

1.6 F. PROTEST PROCEDURES

Any actual or prospective Offeror, who alleges a grievance in the solicitation or award of the Contract may submit a protest to the Deputy Purchasing Agent. All protests shall be type written on the protester’s letterhead and submitted in accordance with the provisions stated herein.

1. Procedure

All protests shall be typed under the protester’s letterhead and submitted in accordance with the provisions stated herein. All protests shall include at a minimum the following information:

• The name, address and telephone number of the protestor;

• The signature of the protestor or protestor’s authorized representative;

• The solicitation number;

• A detailed statement of the legal and/or factual grounds of the protest;

• The form of relief requested.

2. Protest of Bid/Proposal Specifications

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All protests related to bid or proposal specifications must be submitted to the Deputy Purchasing

Agent no later than five (5) business days prior to the close of the proposal. Protests received after the five (5) business day deadline will not be considered by the County.

In the event the protest of specifications is denied and the protester wishes to continue in the solicitation process, they must still submit a bid prior to the close of the solicitation in accordance with the bid/proposal submittal procedures provided in the bid/proposal.

3. Protest of Award of Contract:

In protests related to the award of a Contract, the protest must be submitted no later than five (5) business days after the notice of the proposed contract award is provided by the Deputy Purchasing

Agent. Protest relating to a proposed contract award which is received after the five (5) business day deadline will not be considered by the County.

4. Protest Process

In the event of a timely protest, the County shall not proceed with the solicitation or award of the contract until the Deputy Purchasing Agent, the County Purchasing Agent or the Procurement

Appeals Board renders a decision on the protest.

Upon receipt of a timely protest, the Deputy Purchasing Agent will within ten (10) business days of the receipt of the protest, issue a decision in writing which shall state the reasons for the actions taken.

The County may, after providing written justification to be included in the procurement file, make the determination that an immediate award of the Contract is necessary to protect the substantial interests of the County. The award of a Contract shall in no way compromise the protester’s right to the protest procedures outlined herein.

If the protester disagrees with the decision of the Deputy Purchasing Agent, the protestor may submit a written notice to the Office of the County Purchasing Agent requesting an appeal to the

Procurement Appeals Board, in accordance with the process stated below.

5. Appeal Process

If the protester wishes to appeal the decision of the Deputy Purchasing Agent, the protester must submit, within three (3) business days from receipt of the Deputy Purchasing Agent’s decision, a written appeal to the Office of the County Purchasing Agent.

Within fifteen (15) business days, the County Purchasing Agent will review all materials in connection with the grievance, assess the merits of the protest and provide a written determination that shall contain his or her decision on whether the protest shall be forwarded to the Procurement

Appeals Board.

The decision of the County Purchasing Agent on whether to allow the appeal to go forward will be final and there shall be no right to any administrative appeals of this decision.

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1.7 G. EDD INDEPENDENT CONTRACTOR REPORTING REQUIREMENTS

Effective January 1, 2001, the County is required to file federal Form 1099-Misc for services received from a “service provider” to whom the County pays $600 or more or with whom the County enters into a contract for $600 or more within a single calendar year. The purpose of this reporting requirement is to increase child support collection by helping to locate parents who are delinquent in their child support obligations.

The term “service provider” is defined in California Unemployment Insurance Code Section 1088.8, subparagraph B.2 as “an individual who is not an employee of the service recipient for California purposes and who received compensation or executes a contract for services performed for that service recipient within or without the state.” The term is further defined by the California Employment

Development Department to refer specifically to independent contractors. An independent contractor is defined as “an individual who is not an employee of the government entity for California purposes and who receives compensation or executes a contract for services performed for that government entity either in or outside of California.”

The reporting requirement does not apply to corporations, general partnerships, limited liability partnerships, and limited liability companies.

Additional information on this reporting requirement can be found at the California Employment

Development Department website located at:

http://www.edd.ca.gov/Payroll_Taxes/FAQ_-

_California_Independent_Contractor_Reporting.htm.

1.8 H. COUNTY OF ORANGE LOCAL SMALL BUSINESS (OCLSB) AND

DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) PREFERENCE

1. OCLSB: Effective January 1, 2020, County of Orange Board of Supervisors adopted the County of OCLSB

Preference policy. Implementation of the OCLSB Preference policy supports local businesses, the local economy and the development of the County’s tax base.

To be certified as a Local Small Business by the County of Orange, a business shall meet (1) and

(2) below:

A. Local Business requirements:

1. maintains their principal center of operations (i.e., headquarters) within Orange County, and;

b. has:

a. a business address located in the County of Orange that is not a post office box, or

b. a valid business license or certificate of occupancy issued by the County of Orange or by an Orange County city, or other documentation acceptable to the County of Orange.

B. Small Business Requirements:

http://www.edd.ca.gov/Payroll_Taxes/FAQ_-_California_Independent_Contractor_Reporting.htm http://www.edd.ca.gov/Payroll_Taxes/FAQ_-_California_Independent_Contractor_Reporting.htm

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a. must be certified as a Small Business by the State of California Department of General

Services (DGS); and,

b. DGS Small Business requirements must be valid at the time of bid/proposal submittal.

2. DVBE: Effective January 1, 2021, County of Orange Board of Supervisors adopted the

DVBE Preference policy. The DVBE Preference policy supports local business opportunity, economy and the development of the County’s tax base, and in addition recognizes the service and sacrifice given by the men and women of our Armed Forces.

To be certified as a Disabled Veteran Business Enterprise by the County of Orange, a business shall meet (1) below:

A. Disabled Veteran Business Enterprise Requirements:

A. must be certified as a DVBE by the State of California Department of General Services (DGS); and, B. DGS DVBE requirements must be valid at the time of bid proposal submittal.

To participate as an OCLSB and/or DVBE, please read and follow the process outlined on

EXHIBIT 2 – COUNTY OF ORANGE LOCAL SMALL BUSINESS (OCLSB) AND DISABLED

VETERAN BUSINESS ENTERPRISE (DVBE) PREFERENCE CERTIFICATION

REQUIREMENTS.

1.9 I. COUNTY OF ORANGE CAMPAIGN CONTRIBUTION DISCLOSURE

(LEVINE ACT)

Exhibit 4, the Campaign Contribution Disclosure Form, must be completed by applicants for, or persons who are the subject of, any proceeding involving a license, permit, or other entitlement for use, including most contracts and franchises, pending before the Board of Supervisors (Board) of the County of Orange or any of its affiliated agencies.

IMPORTANT NOTICE

Government Code section 84308 (also known as the “Levine Act”) contains requirements that are summarized generally as follows:

A. If you are an applicant for, or the subject of, any proceeding involving a license, permit, or other entitlement for use, you are prohibited from making a campaign contribution of more than $250 to any member of the Board of Supervisors or other County official who may participate in your proceeding. This prohibition begins on the date your application is filed or the proceeding is otherwise initiated, and the prohibition ends 12 months after a final decision is rendered by the Board of Supervisors or other County officer. In addition, no Board member or other County official who may participate in your proceeding alternate may solicit or accept a campaign contribution of more than $250 from you during this period.

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B. These prohibitions also apply to your agents, and, if you are a closely held corporation, to your majority shareholder as well. These prohibitions also apply to your subcontractor(s), joint venturer(s), and partner(s) in this proceeding. Also included are parent companies and subsidiary companies directed and controlled by you, and political action committees directed and controlled by you.

C. You must file the attached disclosure form and disclose whether you or your agent(s) have in the aggregate contributed more than $250 to any Board member or other County officer who may participate in your proceeding during the 12-month period preceding the filing of the application or the initiation of the proceeding.

D. If you or your agent have in the aggregate contributed more than $250 to any individual Board member or other County officer who may participate in your proceeding during the 12 months preceding the decision on the application or proceeding, that Board member or other County officer must disqualify himself or herself from the decision. However, disqualification is not required if the Board member or other County official returns the campaign contribution within 30 days from the time the member or official knows, or should have known, about both the contribution and the fact that you are a party in the proceeding. The Campaign Contribution Disclosure Form should be completed and filed with your application or proposal, or with the first written document you file or submit after the proceeding commences.

A. A proceeding involving “a license, permit, or other entitlement for use” includes all business, professional, trade and land use licenses and permits, and all other entitlements for use, including all entitlements for land use, all contracts (other than competitively bid, labor or personal employment contracts), and all franchises.

B. Your “agent” is someone who represents you in connection with a proceeding involving a license, permit or other entitlement for use. If an individual acting as an agent is also acting in his or her capacity as an employee or member of a law, architectural, engineering, consulting firm, or similar business entity, both the business entity and the individual are “agents.”

C. To determine whether a campaign contribution of more than $250 has been made by you, campaign contributions made by you within the preceding 12 months must be aggregated with those made by your agent within the preceding 12 months or the period of the agency relationship, whichever is shorter. Contributions made by your majority shareholder (if a closely held corporation), your subcontractor(s), your joint venturer(s), and your partner(s) in this proceeding must also be included as part of the aggregation. Campaign contributions made to different Board of Supervisors members or other County officer who may participate in your proceeding are not aggregated.

A list of the Board of Supervisors members and other County officials are listed on Exhibit 4. This notice summarizes the major requirements of Government Code section 84308 of the Political

Reform Act and California Code of Regulations, Title 2 sections 18438.1-18438.8.

SECTION 2. WRITTEN PROPOSAL SCORING FORMAT

2.1 PHASE 1

No. Evaluation Criteria Scoring Method Weight (Points)

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1. Organization, Staff Qualifications, and

Relevant Experience

Experience of Offeror including financial condition, prior experience and performance record, including references, technical innovation, transition planning and quality assurance plans. Offerors will be evaluated on the extent to which they can accept existing contract provisions

(See Model Contract).

N/A N/A

2. Participant Communications and Customer

Service Capability

Experience of Offeror including the ability to provide the customer service, participant communication, and education requirements outlined in this

RFP. This will include staffing

(including for any local service office), competence of personnel whom the

Offeror intends to assign to the project, the Offeror’s experience in providing enrollment counseling, investment information and other services such as investment advice for participants and the capabilities of voice response and website systems that are proposed.

N/A N/A

3. Claims Administration

Experience of Offeror in processing claims for reimbursement, including but not limited to methods for submitting claims, disbursement options, requirements/restrictions, and oversight/management of subcontractors if utilized.

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4. Plan Administrative Services

Experience of the Offeror, including the ability to provide the administrative and recordkeeping service requirements outlined in the

RFP. This will include competence of personnel whom the Offeror intends to assign to the project and the capabilities of the Offeror’s system to execute the various transactions, to interface with the County’s systems, to maintain participant and plan level records, including the financial information and reporting required by the County, and accurately represent the financial status of the participants and the Plans. This also includes the claims administration services.

N/A N/A

5. Investment Services and Trust

Administration

Offerors will also be evaluated on their ability to maintain the current investment option array to the greatest extent possible and to provide the greatest amount of investment flexibility to the County in making future fund changes to the investment option array. Offerors shall also be evaluated on the stable value option offered, as well as trust administration services.

N/A N/A

6. Implementation/Transition

Experience of the Offeror in implementing plans of similar size and complexity, as well as the reasonableness of the timeline and resources to be dedicated to.

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7. Cybersecurity

Compliance with Department of

Labor’s (DOL) Employee Benefits

Security Administration (EBSA) guidance related to cybersecurity and adherence to, or exceeding, industry standards for protecting participant information and plan asset data. Offers will be evaluated on documentation and implementation of cybersecurity best practices, track record including any history of past security breaches and remediation actions taken, as well as innovative/industry leading approaches to safeguarding participant and plan data.

2.2 PHASE 2

1. Organization, Staff Qualifications, and

Relevant Experience

Experience of Offeror including financial condition, prior experience and performance record, including references, technical innovation, transition planning and quality assurance plans. Offerors will be evaluated on the extent to which they can accept existing contract provisions

(See Model Contract).

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ARRANGEMENT…