COBRA and Flexible Spending Accounts Administration

The City of Waco, Texas is seeking proposals for COBRA and Flexible Spending Accounts (FSA) administration services through RFP No. 2025-018, with an effective date of October 1, 2025. The procurement covers comprehensive administration of COBRA and FSA services for approximately 1,603 benefit-eligible employees, including medical (UMR), dental (Delta Dental), vision (Superior Vision), and FSA plans. The selected vendor will be responsible for managing approximately 425 FSA participants (394 Healthcare FSA and 31 Dependent Care FSA), handling 4-8 monthly employee terminations and new hires, and providing critical administrative services such as initial notifications, qualifying event notices, carrier notifications, and premium collection. Vendors must detail their fee structures, including implementation fees, per-employee-per-month (PEPM) charges, and additional service fees, while demonstrating robust customer service capabilities, implementation processes, and cyber security measures. Proposals are due by March 21, 2025, at 2:00 P.M. CT, with a virtual proposal opening via Zoom at 3:30 P.M. CT on the same day, using Meeting ID 161 205 7332. Questions from potential bidders are due by March 13, 2025, and must be submitted through the Bonfire online procurement platform.

The City encourages participation from Minority and Women-Owned Business Enterprises (MWBE), though MWBE status will not determine contract award. The current COBRA administrator is Navia, charging $0.50 PEPM, while the FSA administrator also charges $3.40 PEPM with a $100 monthly minimum fee, totaling approximately $17,340 annually. The selected vendor must have integration capabilities with Tyler Technologies' HRIS/Payroll system and provide additional services such as bi-lingual support, Section 125 Plan documentation, Summary Plan Description, direct deposit capability, automatic claim adjudication, and annual discrimination testing. Vendors are required to offer a 60-month rate guarantee and may provide on-site enrollment meetings at $75/hour or $300/day plus travel expenses. The procurement allows for submissions via mail, drop-off, or electronic submission, with no specific restrictions on organizational type beyond the standard municipal procurement requirements. Potential bidders should contact Melanie Wade, Purchasing Agent, at 254-750-8098 or melaniew@wacotx.gov for additional information.