RFP 250000002730 Schedule A2 - Healthcare Actuary and Consulting (MCSC).docx

Schedule A2 - Statement of Work Request for Proposal No. 250000002730 Healthcare and Benefit Auditing, Actuarial, and Consulting Services for Michigan Civil Service Commission (MCSC) Employee Benefits Division (EBD) This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP, as well as the Contractor who is awarded the contract. The term “Bidder” is used to identify where specific responses to the RFP are required.

The Contractor must respond to each requirement and provide comprehensive responses to questions. Attach any supplemental information and appropriately reference within your response.

IMPORTANT NOTE TO CONTRACTORS/BIDDERS: There are specific requirements for which acceptance must be simply acknowledged through a checkbox(es), and others that require further explanation. Click the appropriate checkbox and complete the entries as appropriate.

BACKGROUND

The Michigan Civil Service Commission (MCSC), Employee Benefits Division (EBD), administers a broad and complex array of benefits as part of the compensation program for eligible State employees, retirees, dependents and Consolidated Omnibus Budget Reconciliation Act (COBRA) participants. MCSC, EBD serves as the Plan Sponsor for this Contract. A broad, umbrella-type consulting contract is needed to advise staff and the MCSC concerning increases in benefit costs, compliance with changes in federal and state laws, actuarial and plan analysis of current benefits and future trends, and claim and program audits of current benefit third party administrators (TPAs).

The MCSC approves benefit arrangements reached through collective bargaining agreements for represented employees and through a compensation setting procedure for non-exclusively represented employees. Benefits for State classified employees and retirees are administered by the EBD, including self-insured State Health Plan (SHP) Preferred Provider Organization (PPO) which includes a Medicare Advantage plan, State High Deductible Health Plan (HDHP) with Health Savings Account (HSA), State Dental Plan and Preventive Dental, vision, life, and long-term disability plans and two fully insured Health Maintenance Organizations (HMOs). The SHP and HDHP have carve-out prescription drug and behavioral health/substance use disorder programs. The prescription drug plan includes an Employee Group Waiver Plan (EGWP). Employees who opt out of health, dental insurance, or select the reduced life insurance plan will receive a rebate. The State also offers numerous voluntary benefits for which employees pay the full premium cost. EBD administers a pre-tax Qualified Transportation Fringe Benefits (QTFB) program and General Purpose Health Care, Limited Purpose Health Care, and Dependent Care Flexible Spending Accounts. The COBRA program is also administered by EBD. The plan year operates on a calendar year basis. A listing of plan offerings and other information can be found at www.mi.gov/employeebenefits.

As of March 2025, there were approximately 46,200 active employees enrolled in one or more benefit plans with more than 74,000 dependents and 55,700 retirees enrolled in one or more plans with 28,200 dependents for a total of over 200,000 covered lives.

(Non-EGWP) enrollees 62,514 average EGWP enrollees

Health Care FSA Dependent Care FSA 12,557

1,207

Note: All Claims data above is for Plan Year (PY) / Calendar Year (CY) 2024.

SCOPE

Contractor will provide Healthcare and Benefit Auditing, Actuarial and Consulting Services periodically and at the direction of EBD. The Contractor must provide all staffing, systems and expertise required to perform all services specified in the Contract.

The primary purpose of this contract is to: (1) perform claims and program audits of benefit TPAs; (2) perform HMO renewal analysis and negotiations; (3) facilitate the development of bid specifications for benefit TPA RFPs upon request; and (4) provide consulting services on benefit plan design including analysis of current plans and program best practice education.

Requirements General Requirements

1.1.1. The Contractor must have available, on a continual basis, the expertise necessary to provide technical assistance in designing, evaluating, and administering the benefit programs as occasionally required by the EBD.

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1.1.2. The Contractor must advise the EBD on implementing new and modifying existing benefits, including analyzing the current rate model for self-insured plans, funding requirements, benefit design and cost impacts.

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1.1.3. The Contractor must work collaboratively with the Plan Sponsor in determining the need to re-bid a contract. This may include but is not limited to: monitoring and evaluating contract expiration dates and prospective renewal periods across Plan Sponsor’s portfolio, employing industry knowledge to determine the most favorable cadence of executing option years and/or rebidding a contract, evaluating renewal offers and estimating the financial impact of renewal as compared to a full rebid.

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1.1.4. The Contractor must assist in drafting future RFPs for TPAs of benefit plans and:

1.1.4.1. Employ knowledge of current industry trends, including extensive knowledge of potential Bidder pool in the development of RFP documents.

1.1.4.2. Provide, through subject matter experts, support and consultation to the EBD in the development of RFP content, Bidder evaluation, Bidder selection and post-award implementation.

1.1.4.3. Recommend service level agreement (SLA) standards.

1.1.4.4. Establish and include requirements for management data and reports that will support the EBD’s efforts in strategic planning and administrative oversight.

1.1.4.5. Provide criteria for the audit process to include in the RFP.

1.1.4.6. Recommend pricing methodologies and tools to be used in the evaluation of competitive bids.

1.1.4.7. Recommend selection criteria for the winning bid.

1.1.4.8. Evaluate competitive bids using EBD’s approved methodologies and tools.

1.1.4.9. Participate in all aspects of the bid response review committee upon request.

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Bidder must describe how they comply with the above requirement(s):

1.1.5. The Contractor must conduct studies of existing benefit programs to evaluate cost effectiveness and recommend delivery methods to increase efficiency.

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1.1.6. The Contractor must perform statistically valid claim and performance standard guarantee audits in TPA contracts to ensure compliance with contractual obligations. Errors discovered must be classified as financial or non-financial. Audits generally cover two to three plan years at a time, include both active and retiree populations and every year is subject to audit. The prescription drug TPA audit must be separated by Employer Group Waiver Plans (EGWP) and non-EGWP and claim and rebate elements and may be performed annually. When a new carrier is selected for administration of a benefit plan or significant benefit changes go into effect, an implementation audit may be required.

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Bidder must describe how they comply with the above requirement(s) and provide a sample audit report:

(Audit Report)

1.1.7. The Contractor must review and evaluate data provided by the EBD related to HMO costs, charges and assist with rate negotiations.

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Bidder must describe how they comply with the above requirement(s):

1.1.8. The Contractor must assist in the review and analysis of aggregate claims data and trend analysis for individual carriers.

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1.1.9. The Contractor must communicate new developments in state and federal laws and regulations affecting the provision of benefit plans and any anticipated impact to the State.

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Bidder must describe its process for monitoring and reporting on legislative and rule/regulation changes at both the federal and state levels.

1.1.10. The Contractor must demonstrate value in rates, subject matter expertise and dedication to EBD benefit initiatives. See Schedule B2 for Pricing and a list of potential proposed projects. Additional ad-hoc requests will be required throughout each year.

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Bidder must describe how they comply with the above requirement(s):

1.1.11. The Contractor’s system, processes, subcontractors, and partners must comply with all applicable requirements of the Health insurance Portability and Accountability Act of 1996 (HIPAA), as amended. The Business Associate Agreement (BAA) between Contractor and Plan Sponsor is attached to and incorporated herein as Schedule F2 – HIPAA Business Associate Agreement. The Contractor may be required to annually recertify compliance with the BAA.

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Training The Contractor must provide on-site or virtual training at the discretion of the EBD (including training materials) as determined by the Plan Sponsor. Attendance and travel expenses for multi-day conferences must be covered by the Contractor for two Plan Sponsor designees at least once per calendar year. Contractor must provide transportation, lodging, meals, conference fees, and other reasonable and customary expenses. Travel arrangements and expenses should be consistent with the official State of Michigan travel policy. Training topics may include but are not limited to: medical, dental, vision, and pharmacy benefit plans, pharmacy benefit management, vendor relationship management, the U.S. healthcare system, healthcare reform, Medicare, group plans, COBRA, and healthcare exchanges. All agendas and training materials must be approved by the EBD.

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Bidder must explain its training capabilities and any training that is included in its proposal:

Specific Standards IT Policies, Standards and Procedures (PSP) Contractors are advised that the State has methods, policies, standards and procedures that have been developed over the years. Contractors are expected to provide proposals that conform to State IT policies and standards. All services and products provided as a result of this RFP must comply with all applicable State IT policies and standards. Contractor is required to review all applicable links provided below and state compliance for the publicly available PSPs in their response. Non-public PSPs are available to bidders under NDA.

Public IT Policies, Standards and Procedures (PSP):

DTMB - IT Policies, Standards & Procedures (michigan.gov)

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Acceptable Use Policy To the extent that Contractor has access to the State’s computer system, Contractor must comply with the State’s Acceptable Use Policy, see 1340.00.130.02 Acceptable Use of Information Technology (michigan.gov). All Contractor Personnel will be required, in writing, to agree to the State’s Acceptable Use Policy before accessing the State’s system. The State reserves the right to terminate Contractor’s access to the State’s system if a violation occurs.

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SOM Digital Standards All software items provided by the Contractor must adhere to the State of Michigan Application/Site Standards which can be found at SOM Applications and Site Standards (michigan.gov).

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ADA Compliance The State is required to comply with the Americans with Disabilities Act of 1990 (ADA) and has adopted standards and procedures regarding accessibility requirements for websites and software applications. All websites, applications, software, and associated content and documentation provided by the Contractor as part of the Solution must comply with the Digital Accessibility Standards. See Terms and Conditions Section 12 Accessibility Requirements for additional information. Applicable standards can be found at SOM Applications and Site Standards (michigan.gov) under the SOM Digital Accessibility Guidelines heading.

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Products and Services In managing its obligation to meet the above milestones and deliverables, the Bidder is required to utilize the applicable State Unified Information Technology Environment (SUITE) methodologies, or an equivalent methodology proposed by the Bidder.

SUITE’s primary goal is the delivery of on-time, on-budget, quality systems that meet customer expectations. SUITE is based on industry best practices, including those identified in the Project Management Institute’s PMBoK and the Capability Maturity Model Integration for Development. It was designed and implemented to standardize methodologies, processes, procedures, training, and tools for project management and systems development lifecycle management. It offers guidance for efficient, effective improvement across multiple process disciplines in the organization, improvements to best practices incorporated from earlier models, and a common, integrated vision of improvement for all project and system related elements.

While applying the SUITE framework through its methodologies is required, SUITE was not designed to add layers of complexity to project execution. There should be no additional costs from the Bidder, since it is expected that they are already following industry best practices which are at least similar to those that form SUITE’s foundation.

SUITE’s companion templates are used to document project progress or deliverables. In some cases, Bidders may have in place their own set of templates for similar use. Because SUITE can be tailored to fit specific projects, project teams and State Program Managers may decide to use the Contractor’s provided templates, as long as they demonstrate fulfillment of the SUITE methodologies.

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The Bidder is required to review http://www.michigan.gov/suite and demonstrate how each PMM/SEM requirement will be met. Bidders wishing to use their own documents must submit an example of the document that will be substituted. If the Bidder deems a document to be non-applicable, please provide reasons for the determination. The State reserves the right to give final approval of substituted documents and items marked as non-applicable.

Bidder must describe how they will meet the requirements set forth above and note any exceptions for successful implementation and ongoing support of the Software:

Acceptance Acceptance The State will use the following criteria to determine acceptance of the Contract Activities:

1.1.1. Attendance of all required meetings and completion of reports within agreed-upon timeframes.

1.1.2. Adherence to implementation Plan and approved calendar.

1.1.3. Invoices must be submitted to Program Manager for review to determine whether all items were completed and (for unit priced items) number of hours did not exceed agreed-upon caps and number of hours are reasonable and verifiable. The Program manager or designee will approve based upon the same criteria.

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Staffing Contractor Program Manager The Contractor must appoint a Senior Account Manager (the “Contractor Program Manager”) specifically assigned to State of Michigan accounts (EBD), who will respond to State (EBD) inquiries regarding the Contract Activities, answer questions related to ordering and delivery, etc. Bidder must identify its Contractor Program Manager.

The Contractor must notify the Contract Administrator at least 30 calendar days before removing or assigning a new Contractor Program Manager.

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Bidder must identify its Contractor Program Manager:

Customer Service Number The Contractor must specify its number for the State to contact the Contractor Program Manager. The Contractor Program Manager must be available for calls during the hours of 8:00 am to 5:00 pm EST.

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Bidder must identify its Customer Service Number:

Work Hours The Contractor must provide Contract Activities during the State’s normal working hours Monday – Friday, 8:00 a.m. to 5:00 p.m. EST and possible night and weekend hours depending on the requirements of the project.

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Key Personnel The Contractor must appoint at least five individuals who will be directly responsible for the day-to-day operations of the Contract (“Key Personnel”). Key Personnel must be specifically assigned to the State account and be knowledgeable on the contractual requirements in the following roles:

1. Senior Account Manager

2. Back-Up Account Manager

3. Project Manager/Coordinator

4. Pharmacy Consultant

5. Audit Consultant State inquiries must be acknowledged within one business day.

The State has the right to recommend and approve in writing the initial assignment, as well as any proposed reassignment or replacement, of any Key Personnel. Before assigning an individual to any Key Personnel position, Contractor will notify the State of the proposed assignment, introduce the individual to the State’s Project Manager, and provide the State with a resume and any other information about the individual reasonably requested by the State. The State reserves the right to interview the individual before granting written approval. In the event the State finds a proposed individual unacceptable, the State will provide a written explanation including reasonable detail outlining the reasons for the rejection. The State may require a 30-calendar day training period for replacement personnel.

Contractor will not remove any Key Personnel from their assigned roles on this Contract without the prior written consent of the State. The Contractor’s removal of Key Personnel without the prior written consent of the State is an unauthorized removal (“Unauthorized Removal”). An Unauthorized Removal does not include replacing Key Personnel for reasons beyond the reasonable control of Contractor, including illness, disability, leave of absence, personal emergency circumstances, resignation, or for cause termination of the Key Personnel’s employment. Any Unauthorized Removal may be considered by the State to be a material breach of this Contract, in respect of which the State may elect to terminate this Contract for cause under the Termination for Cause section of the Standard Contract Terms. It is further acknowledged that an Unauthorized Removal will interfere with the timely and proper completion of this Contract, to the loss and damage of the State, and that it would be impracticable and extremely difficult to fix the actual damage sustained by the State as a result of any Unauthorized Removal. Therefore, Contractor and the State agree that in the case of any Unauthorized Removal in respect of which the State does not elect to exercise its rights under Termination for Cause, Contractor will issue to the State the corresponding credits set forth below (each, an “Unauthorized Removal Credit”):

i. For the Unauthorized Removal of any Key Personnel designated in the applicable Statement of Work, the credit amount will be $25,000.00 per individual if Contractor identifies a replacement approved by the State and assigns the replacement to shadow the Key Personnel who is leaving for a period of at least 30-calendar days before the Key Personnel’s removal.

ii. If Contractor fails to assign a replacement to shadow the removed Key Personnel for at least 30-calendar days, in addition to the $25,000.00 credit specified above, Contractor will credit the State $833.33 per calendar day for each day of the 30-calendar day shadow period that the replacement Key Personnel does not shadow the removed Key Personnel, up to $25,000.00 maximum per individual. The total Unauthorized Removal Credits that may be assessed per Unauthorized Removal and failure to provide 30-calendar days of shadowing will not exceed $50,000.00 per individual.

Contractor acknowledges and agrees that each of the Unauthorized Removal Credits assessed above: (i) is a reasonable estimate of and compensation for the anticipated or actual harm to the State that may arise from the Unauthorized Removal, which would be impossible or very difficult to accurately estimate; and (ii) may, at the State’s option, be credited or set off against any fees or other charges payable to Contractor under this Contract.

The Contractor must identify the Key Personnel, indicate where they will be physically located, describe the functions they will perform, and provide current chronological résumés.

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The Contractor must identify all Key Personnel that will be assigned to this contract in the table below which includes the following:

1. Name and title of staff that will be designated as Key Personnel.

2. Key Personnel years of experience in the current classification.

3. Identify which of the required key personnel positions they are fulfilling.

4. Key Personnel’s roles and responsibilities, as they relate to this RFP, if the Contractor is successful in being awarded the Contract. Descriptions of roles should be functional and not just by title.

5. Identify if each Key Personnel is a direct, subcontract, or contract employee.

6. Identify if each Key Personnel staff member is employed full-time (FT), part-time (PT) or temporary (T), including consultants used for the purpose of providing information for the proposal.

7. List each Key Personnel staff member’s length of employment or affiliation with the Contractor’s organization.

8. Identify each Key Personnel’s percentage of work time devoted to this Contract.

9. Identify where each Key Personnel staff member will be physically located (city and state) during the Contract performance.

Information in the table below must align with the resumes submitted for each Key Personnel position.

Enter company name here

Michigan.gov/MiProcurement

Name / Title

Years of Experience in Current Classification 5.

Role(s) / Responsibilities 6.

Direct / Subcontract/ Contract

% of Work Time 9.

Physical Location

Senior Account Manager

Backup Account Manager

Project Manager / Coordinator

Pharmacy Consultant

Audit Consultant

[Bidder insert additional rows as needed.]

A. The Contractor must provide detailed, chronological resumes of all proposed Key Personnel, including a description of their work experience relevant to their purposed role as it relates to the RFP.

Qualifications will be measured by education and experience with particular reference to experience on projects similar to that described in the RFP.

Bidder must provide the resumes and information as required above – either in this response box or identified here as an attachment to this RFP labelled as “MCSC – Resumes – Vendor Name”.

Non-Key Personnel The Bidder may have additional staff who are not considered key, but whose roles are critical to the successful completion of EBD projects. Please identify staff and/or roles for additional team member(s) for this section detailing descriptions of their qualifications.

The Contractor must notify the Contract Administrator at least 10-calendar days before removing or assigning non-key personnel.

Non-Key Personnel Table

Organizational Chart The Contractor must provide an overall organizational chart that details staff members, by name and title, and subcontractors.

Bidder must provide detailed information as required above – either in this response box or identified here as an attachment to this RFP labelled as “MCSC – Org Chart – Vendor Name”.

Disclosure of Subcontractors If the Contractor intends to utilize subcontractors, the Contractor must disclose the following:

A. The legal business name; address; telephone number; a description of subcontractor’s organization and the services it will provide; and information concerning subcontractor’s ability to provide the Contract Activities.

B. The relationship of the subcontractor to the Contractor.

C. Whether the Contractor has a previous working experience with the subcontractor. If yes, provide the details of that previous relationship.

D. A complete description of the Contract Activities that will be performed or provided by the subcontractor.

E. If any contract activites will be performed outside of the United States.

Geographically Disadvantaged Business Enterprise Sub-Contractors: If contractors plan to utilize subcontractors to perform more than 20% of the deliverables under this contract, at least 20% of that subcontracted work must be awarded to Michigan-based Geographically Disadvantaged Business Enterprises (GDBE). Contractor will submit a plan detailing all subcontractors to be used, including the percentage of the work to be done by each. Contractor must inform the State to the name and address of the GDBE, the percentage of the work they will complete, the total amount estimated to be paid to the GDBE, and provide evidence for their qualifications as a GDBE. If contractor cannot find GDBE subcontractors to meet this requirement they must provide reasoning and justification to receive an exemption from this requirement from the State. (Existing business relationships will not be an approved reason for this.)

GDBE definition: "Geographically Disadvantaged Business Enterprise" also known as GDBE, is a Michigan-based business that satisfies one or more of the following: (i) Is certified as a Michigan HUBZone Small Business Concern by the United States Small Business Administration. (ii) Has a principal place of business located within a Qualified Opportunity Zone within Michigan. (iii) More than half of its employees either work at a secondary location or have a principal residence located within a Qualified Opportunity Zone within Michigan, or both.

Additional information on GDBEs can be found here:

Michigan GDBE Website Bidder must provide detailed information as requested in the above requirement(s).

The legal business name, address, telephone number of the subcontractor(s).

A description of subcontractor’s organization and the services it will provide and information concerning subcontractor’s ability to provide the Contract Activities.

The relationship of the subcontractor to the Bidder.

If yes, provide the details of that previous relationship.

A complete description of the Contract Activities that will be performed or provided by the subcontractor.

Of the total bid, the price of the subcontractor’s work.

Bidder must provide information based on the work performed by all subcontractors

Total percentage of work that will be performed by subcontractors:

Total percentage of subcontracted work that will be performed by GDBE subcontractors:

Project Management Project Plan A. Contractor must provide project/strategy plan within five business days of Contract effective date to the Program Manager for final approval. This plan must include Contractor’s project organizational structure and a staffing table with names, titles and locations of personnel assigned to the EBD’s account. This must match the staffing in the accepted proposal.

B. Contractor must be available on an on-call basis for consultation and advice on subjects not specifically identified in this Contract related to benefit administration. Contractor must respond to requests within two business days and must provide resolution to problems presented in a reasonable amount of time.

C. Consultations or activities estimated to involve over $7,000 of billed costs must be treated as individual projects. The EBD will provide a description of the objectives of the project and the final services expected. Contractor must, in turn, provide an individual proposal with the following information:

1. A list of steps and deliverables

2. A list of assigned personnel with resumes included for consultants not identified as in this Contract

3. The estimated time-line for completion

4. The total maximum price for the project based on the hourly rates in the Contract and personnel assigned.

D. Agreement to proceed on individual projects will be by acceptance of the proposal by the EBD and signed Change Notice. The Contractor must meet all project milestones based on a mutually agreed-upon plan developed at the beginning of the project.

E. In addition to continuous liaison with Contractor, team staff of the EBD may meet periodically with the Contractor’s project manager, at the request of the EBD, to review progress and provide necessary guidance for solving problems which may arise.

F. The Contractor will carry out this project under the direction and control of the Program Manager.

G. The Contractor must notify the EBD within 24 hours of becoming aware of any issues affecting any aspect of a benefit program or administration thereof.

H. The Contractor must develop an annual work plan in collaboration with the EBD in conjunction with the State’s budget cycle.

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Bidder must submit a sample project plan as described above either in this response box or identified here as an attachment to this RFP labelled as “MCSC – Sample Project Plan – Vendor Name”.

Meetings Contractor must attend meetings, either in person or virtually, at the request of the EBD.

The State may request other meetings, as it deems appropriate.

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Reporting A. Contractor must submit written summaries of projects at the request of EBD. These summaries must describe work accomplished or to be accomplished, real or anticipated problems, results, and notice of any significant deviation from previously agreed upon work plans. Written reports must be provided in draft form at least two business days prior to any meeting scheduled to discuss intermediate or final results.

B. All audits shall include a detailed written summary of findings in draft form for approval and in final form. The audit report must include, at minimum, audit results, a description of methodology, errors identified as either financial or non-financial in accordance with contract service level agreements, and recommendations for remedy if applicable. Bidder must include a sample of a detailed written summary.

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Bidder must provide samples of required reports as attachments to this RFP. List file names attached with bid response here.

Pricing Price Term Pricing is firm for the entire length of the Contract.

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Price Changes Adjustments will be based on changes in actual Contractor costs. Any request must be supported by written evidence documenting the change in costs. The State may consider sources, such as the Consumer Price Index; Producer Price Index; other pricing indices as needed; economic and industry data; manufacturer or supplier letters noting the increase in pricing; and any other data the State deems relevant.

Following the presentation of supporting documentation, both parties will have 30 days to review the information and prepare a written response. If the review reveals no need for modifications, pricing will remain unchanged unless mutually agreed to by the parties. If the review reveals that changes are needed, both parties will negotiate such changes, for no longer than 30 days, unless extended by mutual agreement.

The Contractor remains responsible for Contract Activities at the current price for all orders received before the mutual execution of a Change Notice indicating the start date of the new Pricing Period.

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Ordering Authorizing Document The appropriate authorizing document for the Contract will be a Delivery Order (DO).

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Invoice and Payment Invoice Requirements All invoices submitted to the State must include: (a) date; (b) DO Number; (c) quantity; (d) description of the Contract Activities; (e) unit price; (f) shipping cost (if any); (g) vendor-generated invoice number and (h) total price. Overtime, holiday pay, and travel expenses will not be paid. Invoices must be supported by a description of work performed, and applicable project and associate name and hours billed. In addition, a budget tracking spreadsheet must be provided with lines for each project that includes the total project budget, monthly spend and remaining budget.

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Payment Methods The State will make payment for Contract Activities via Electronic Funds Transfer (EFT).

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Procedure Invoices along with supporting documentation must be submitted to the State Program Manager via email. Any billed hours or costs reimbursable by a carrier must be invoiced to the State Program Manager separately and simultaneously.

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Liquidated Damages Late or improper completion of the Contract Activities will cause loss and damage to the State and it would be impracticable and extremely difficult to fix the actual damage sustained by the State. Therefore, if there is late or improper completion of the Contract Activities the State is entitled to collect liquidated damages in the amount of $5,000 and an additional $100 per day for each day Contractor fails to remedy the late or improper completion of the Work.

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Service-Level Agreement (SLA) A. The Contractor will be held accountable to meet the requirements and the service level requirements established in this Contract.

B. The State reserves the right to reconsider or amend SLA amounts for split awards should they occur.

C. Please Note: Should bidders require clarification or have any questions with regard to the SLAs, they should submit them during the Question and Answer Period of this solicitation; please see the Proposal Instructions for the timeline.

Service Level Agreements for this Contract will be as follows:

SLA Metric 1. Timely Deliveries

$500.00 may be assessed beginning with the third occurrence of non-compliance and on each occurrence thereafter in a given calendar year.

Extenuating circumstances will be reviewed by the Program Manager before any Service Credits are assessed.

At the discretion of the State, these credits may be applied toward any payable due to the Contractor or be payable directly to the State. Payments made directly to the state will be completed within 10 days of notice of assessment.

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Schedule B2 - Pricing Request For Proposal No. 250000002730 Healthcare and Benefit Auditing, Actuarial, and Consulting Services for Michigan Civil Service Commission (MCSC) Employee Benefits Division (EBD)

1. The Contractor must provide a pricing schedule for the proposed Contract Activities using the information provided below. The pricing schedule should be submitted in the below named Excel document; however, you may also submit an additional pricing schedule in a non-modifiable format (e.g., PDF). Failure to complete the pricing schedule as requested may result in disqualification of your proposal.

2. Price proposals must include all costs, including but not limited to, any one-time or set-up charges, fees, and potential costs that Contractor may charge the State (e.g., shipping and handling, per piece pricing, and palletizing).

3. The Contractor is encouraged to offer quick payment terms. The number of days must not include processing time for payment to be received by the Contractor's financial institution.

4. Quick payment terms: % discount off invoice if paid within days after receipt of invoice.

5. By submitting its proposal, the Contractor certifies that the prices were arrived at independently, and without consultation, communication, or agreement with any other Contractor.

Pricing must be completed in the Excel document Schedule B2 – Pricing - EBD image1.png