Cafeteria Plan Administration Services

The Agency for Community Transit (Illinois) is requesting quotes for third-party cafeteria plan administration services for two employee flexible benefits plans under RFQ 26-1-14601, with quotes due July 21, 2026 at 11:00 a.m. Central time. Questions are due July 9, 2026 at 5:00 p.m. Central time, with anticipated addenda issued July 10.

Contractors must be licensed to conduct flexible benefits plan administration services in Illinois. The scope encompasses administration of a Base Employee FSA Plan (approximately 134 eligible employees, 55 current participants) and a Driver Employee FSA Plan (approximately 156 eligible employees, 37 current participants), both operating on calendar-year cycles with 24 bi-weekly pay periods annually. Both plans offer medical/medical-related premium coverage, medical expense reimbursement accounts, and dependent care reimbursement accounts with 75-day grace periods and 90-day run-out periods. The contractor must interpret plan terms, manage participant eligibility based on minimum 20 hours per week employment, process ACH-initiated funding payments, maintain IRS compliance on highly compensated employee non-discrimination requirements, provide secure online portal access for participants and the Agency to view account balances and transactions, and issue debit cards with built-in controls preventing non-compliant transactions. Deliverables include all startup activities completed by January 1, 2027, monthly reports within five business days detailing plan payments and balances by participant, annual year-end administration reports, and immediate notification of significant administrative problems within ten business days.

Contract term runs from January 1, 2027 through completion of plan year 2029, with automatic option years unless the Agency provides non-renewal notice by October 1 of the prevailing term; any extension beyond plan year 2031 requires written approval from both parties. Bids are fixed unit-price and must remain firm for 90 days from the due date. Award goes to the lowest responsive and responsible bidder deemed most advantageous when considering price and other factors, subject to Board approval anticipated August 13, 2026, with contract award August 18. The contract is partially funded by Madison County Transit's operating assistance grant from the Illinois Department of Transportation. Bids must be submitted electronically through Bonfire at mct-act.bonfirehub.com. Bidders must acknowledge all addenda and certify conflicts of interest, independent pricing, proper Illinois business organization, and compliance with all solicitation terms.