Flexible Spending Account

The City of Detroit Office of Contracting and Procurement, on behalf of the Detroit Human Resources Department, is requesting proposals for end-to-end administration of Health Care Flexible Spending Accounts (HC FSA), Dependent Care Flexible Spending Accounts (DC FSA), and Commuter Benefits programs (Transit and Parking), with proposals due July 22, 2026.

Respondents must demonstrate compliance with IRS Sections 125 and 132, HIPAA, ERISA, and nondiscrimination testing requirements. The vendor must integrate with existing systems including UKG for HRIS and payroll and WEX for benefits administration, and provide SOC 2 Type 2 reports for cloud environments. Support for City of Detroit–specific services such as transit card fulfillment is required. Vendors must disclose whether their proposed solution involves Artificial Intelligence or plans to implement it within five years.

The functional and technical evaluation matrix spans 20 categories including vendor overview, plan administration and compliance, eligibility and enrollment, contributions and payroll integration, claims and reimbursement, debit card solutions, commuter benefits capabilities, participant experience, technology infrastructure, document management, reporting, user interface design, security controls, cloud service provider infrastructure, backup and disaster recovery, mobile accessibility, and support and training. The evaluation framework requires vendors to indicate whether requirements are "Met and Proposed" (C), "Intent Met with Alternative" (A), or "Not Met" (N).

Respondents must provide organizational information, a single point of contact, FEIN, years in business, and employee counts; document at least three relevant prior experiences from the last five years with reference information; disclose any subcontractors; submit staffing documentation including organization charts and key personnel resumes; and disclose claims, lawsuits, contract terminations, and any debarred or suspended individuals within the past ten years. A Priority Hire Agreement option requires commitment to prioritizing Detroit residents for project employment.

The RFP includes pricing submission on a per-participant per-month basis for each of the three program categories. Respondents may submit optional fees. The City prefers minimum three-year fee guarantees and references from similar-sized public sector organizations.