ASSET VERIFICATION SYSTEM (AVS) SERVICES

The State of South Carolina Department of Health and Human Services (SCDHHS) is seeking a contractor to provide a comprehensive Asset Verification System (AVS) for Medicaid eligibility verification, specifically targeting Aged, Blind, and Disabled aid categories. The solicitation requires a secure, internet-based portal capable of processing approximately 14,000 monthly transactions across a network of over 35,000 financial institutions nationwide, in compliance with Section 1940 of the Social Security Act and the Fair Credit Reporting Act. Key deliverables include system maintenance, user support, operational management, project kickoff coordination, comprehensive work plans, user acceptance testing, system security plans, disaster recovery plans, and ongoing performance reporting. The evaluation criteria will weight Technical Solution at 45 points, Qualifications and Experience at 30 points, and Price at 25 points. Critical procurement dates include a pre-proposal conference on August 17, 2021, at 10:00 AM ET, vendor questions due by August 19, 2021, at 3:00 PM ET, and proposal submissions due on October 13, 2021, at 11:00 AM ET. The anticipated contract period is five years, with an initial three-year term and two potential one-year renewals, commencing December 22, 2021, and concluding December 21, 2026.

The solicitation does not explicitly outline specific set-aside designations for disadvantaged enterprises. Mandatory minimum qualifications for vendors include five years of prior experience operating an AVS or similar system, documented Medicaid experience, and an established financial institution network. Contractors must maintain substantial liability insurance, including $5 million per occurrence and $10 million aggregate for errors and omissions coverage related to information security and privacy. All government data must be processed, stored, and transmitted within the continental United States, and the contractor must obtain Authority to Operate (ATO) certification before processing government data. The total potential contract value is estimated at $2,221,810, with a total cost of ownership of $1,476,960, including implementation phase costs of $500,000, operations transaction fees, non-transactional monthly services, and a $1,000,000 modification pool. The pricing structure allows flexibility, permitting vendors to propose transaction-based fees, fixed fees, or a combination of approaches. No incumbent vendor is specifically identified in the solicitation materials.