RFP_5800_SLW3033_ADD_1_v1.pdf

SOLICITATION ADDENDUM

AUSTIN FINANCIAL SERVICES – CENTRAL PROCUREMENT

Revised 7/21/2026

Solicitation: RFP 5800 SLW3033 Addendum No: 1 Date: July 21, 2026

This addendum is to incorporate the following changes to the above-mentioned solicitation:

1.0 Clarifications:

a. The original Workbook has been replaced with Workbook V2.

2.0 Extension: The solicitation due date is hereby extended until July 28, 2026 at 2 PM.

3.0 Questions:

Q1 Question: The RFP mentions the City recently put a 504-physician panel in place and seems to imply the new TPA should integrate with and support the panel. Is this a correct observation? If not, would the City be open to participating in an existing HCN?

Q1 Answer: Yes. The City currently utilizes a Texas Labor Code Chapter 504 certified health care provider panel administered under a separate contract. The selected Third-Party Administrator will be expected to coordinate and collaborate with the City's selected 504 administrator to support efficient claims administration, medical management, and return-to-work efforts. The City is not seeking participation in a Health Care Network (HCN) through this solicitation.

Q2 Question: Is the City only looking for claims handling (including surveillance and vocational rehab)? To clarify, this RFP excludes managed care services, correct?

Q2 Answer: Correct. The solicitation for TPA services excludes managed care.

Q3 Question: The City is not looking for fully bundled solutions that include both services, correct? Would the City be open to a provider that can provide a full solution including both service?

Q3 Answer: The City has issued separate solicitations for Third-Party Claims Administration services and Chapter 504 Provider Panel Administration services. Each solicitation will be evaluated independently.

Q4 Question: What does the City see as the greatest opportunities to further strengthen or enhance your current program?

Q4 Answer: The City is seeking innovative solutions that improve the overall efficiency, consistency, and effectiveness of its workers' compensation program. Areas of interest include, but are not limited to:

• proactive claim management

• timely communication with injured employees and City stakeholders

• effective medical management

• strong regulatory compliance

• meaningful performance metrics and analytics

• collaboration among the TPA, the City's 504 administrator, and City staff

• continuous quality improvement and customer service

Q5 Question: To clarify, is the City’s incumbent TPA providing medical and pharmacy bill review services under the current agreement? Are these services part of this RFP?

Q5 Answer: No, these services are not part of this RFP.

Q6 Question: Please expand on the key attributes the City is looking for in a new claims administrator. Are there any specific problems or issues that require resolution?

Q6 Answer: The City is seeking a claims administrator with demonstrated experience administering large, complex Texas public-sector workers' compensation programs.

• expertise in Texas workers' compensation laws and regulations

• proactive and timely claim management

• strong communication and customer service

• responsiveness and accountability through measurable performance standards

Q7 Question: Please confirm the start date of the contract. In the Scope of Work, II Term of Contract, January 1, 2027, is the date provided. However, in Section II B, the current service provider is noted to have the contract through September 30, 2027. Has the current service provider agreed to extend management through 2026?

Q7 Answer: TPA contract will begin January 1, 2027 with the transition period expected to begin 90 days prior.

Q8 Question: Would the City consider making all transition timeline requirements within the scope of work contingent upon timely receipt of all necessary data in the agreed upon format from the current service provider?

Q8 Answer: The City recognizes that certain transition activities are dependent upon timely receipt of information from the incumbent contractor and other parties. The selected contractor will be expected to work collaboratively with the City and the incumbent contractor to facilitate a successful transition.

Reasonable adjustments to transition activities may be considered where delays are outside of the selected contractor's control; however, respondents should propose a transition plan that meets the requirements of the solicitation.

Q9 Question: In Section IV.E.3. of the Scope of Work, please define what information is to be restricted from the departments.

Q9 Answer: The selected contractor shall provide City departments with information necessary to support claim administration, return-to-work efforts, and other authorized business functions. Certain confidential or protected information, including but not limited to attorney-client communications, litigation strategy, reserve information, and other information protected by applicable law or City policy, shall only be disclosed to authorized individuals consistent with applicable federal and state laws, including HIPAA, the Texas Workers' Compensation Act, and the Texas Public Information Act.

Q10 Question: Please provide copies of the last set of reports provided by the current handling TPA through the contract end-date to ensure ongoing reporting is accurate and timely.

Q10 Answer: The City believes the reporting requirements identified in the Scope of Work adequately describe the reporting expectations under this solicitation.

Q11 Question: The performance guarantee (PG) requirement currently requests a simple agree/disagree.

For us to provide an informed and accurate commitment, please clarify whether the PG terms are open to discussion and negotiation. Additionally, we would appreciate further detail on the specific performance metrics, measurement methodologies and thresholds that define acceptable performance, as the current language appears to allow for potential good faith misunderstandings in the future.

Q11 Answer: The Performance Guarantee requirements included in the solicitation represent the City's current expectations. Respondents should indicate whether they agree to the requirements as requested.

Performance measures, calculation methodologies, reporting expectations, and applicable remedies are identified within the solicitation documents. The City reserves the right to negotiate final contract terms with the successful respondent consistent with applicable procurement requirements.

Q12 Question: In section D, item number 2, the City states that it “will NOT prefund any 3rd party vendor or administrator owned bank account.” Will the City consider initial funding based on your calculated losses so that funds are available for initial payments at program inception? The respondent does not pay client losses from its own funds, so initial funding is needed to cover required payments.

Q12 Answer: The City will not prefund. We may discuss ZBA or other options.

Q13 Question: Does the City’s wage management system have the ability to electronically transfer the data for the initial 13 weeks of wage payments to the selected provider to be automatically populated in the DWC-3 form?

Q13 Answer: The City currently utilizes Workday for payroll and human resources administration. While certain data exports are available, the City cannot guarantee automated integration into a respondent's proprietary claims management system. The selected contractor will be expected to work collaboratively with the City to identify efficient methods for exchanging data.

Q14 Question: In the Workbook, tab 3:

o (1) How does the City anticipate separating the performance between the third-party administrator

(TPA) and managed care company since the overall PBO results include both claims performance and managed care?

o (2) Does the City anticipate charging the selected TPA the PG penalties for non-TPA services under that section (i.e., subrogation, preauthorization and medical bill review)?

o (4) Does the City anticipate charging the selected TPA PG penalties for non-TPA services under that section (utilization review [UR]/bill review and bill review/pharmacy EDI)?

o (14) Please expand on what the City is defining as artificial intelligence (AI). Also, please provide the City’s policy as referenced under the section “acceptable performance” as mandatory compliance.

Also, please explain the referral to external law enforcement and/or regulatory agency.

o (15) Under what circumstances would the City allow an adjuster to approve medical treatment previously denied by medical review

Q14 Answer: Performance Guarantees will apply only to services that are within the scope of work and contractual responsibility of the selected TPA. Contractors will not be held accountable for services that are outside their contractual responsibilities. For purposes of this solicitation, "Artificial Intelligence (AI)" refers broadly to computer-based systems or technologies that perform functions typically requiring human judgment, including but not limited to machine learning, generative AI, natural language processing, predictive analytics, automated decision-support tools, and similar technologies.

Any proposed use of AI must comply with all applicable federal, state, and local laws, as well as applicable City policies governing information security, privacy, confidentiality, records management, and responsible technology use. Additional contract requirements may be incorporated during contract negotiations. The City expects all medical treatment decisions to be made in accordance with the Texas Workers' Compensation Act, applicable Division of Workers' Compensation rules, evidence-based treatment guidelines, and any applicable dispute resolution processes.

If new medical information, subsequent clinical documentation, a revised utilization review determination, or another legally recognized basis supports reconsideration, the adjuster shall handle the request in accordance with applicable law and established claims handling procedures.

Q15 Question: In the Workbook, tab 8, for the Surveillance Services section, please confirm the term “legal entity” is referring to an appropriately licensed agency and not an attorney or law firm.

Q15 Answer: Yes. For purposes of this solicitation, the term "legal entity" refers to a properly licensed business entity that is legally authorized to perform surveillance services in accordance with all applicable federal, state, and local laws and regulations.

Q16 Question: In the Workbook, tab 8, the header indicates the tab includes Voc Rehab. However, there are no questions for that service. Does the City have any requirements that can be shared?

Q16 Answer: Voc Rehab is not part of this RFP.

Q17 Question: In the Workbook, tab 9 (6), is the City only interested in the 2026 enhancements since the contract should start January 1, 2027 (see conflict question regarding current TPA contract expiration date)?

Q17 Answer: The City is interested in enhancements that are currently available or are reasonably anticipated to be available at the commencement of the contract. Respondents are encouraged to identify both recently implemented enhancements and planned innovations that would provide value to the City's workers' compensation program during the contract term.

Q18 Question: Please provide a copy of the current contract rates.

Q18 Answer: The City of Austin responds to all public information requests (PIRs) promptly and in accordance with the Public Information Act (PIA). Pursuant to section 552.301(c) of the Government Code, the City of Austin has designated certain addresses to receive requests for public information sent by electronic mail. Please submit your request for more information using one of the prescribed methods below to help us ensure we answer all requests in a timely manner.

- Electronic mail: public.information@austintexas.gov

- City’s online Public Records Center:www.austintexas.gov/pir

4.0 ALL OTHER TERMS AND CONDITIONS REMAIN THE SAME.

ACKNOWLEDGED BY:

Offeror Name Offeror Authorized Signature Date mailto:public.information@austintexas.gov http://www.austintexas.gov/pir

RETURN ONE COPY OF THIS ADDENDUM WITH YOUR RESPONSE PRIOR TO THE SOLICITATION CLOSING

DATE. FAILURE TO DO SO MAY CONSTITUTE GROUNDS FOR REJECTION OF YOUR OFFER.