HCM ERP System Replacement - Phase 1

The Commonwealth of Kentucky Finance and Administration Cabinet is requesting proposals for a Benefits Administration and Billing software solution with implementation and deployment services to replace its aging SAP HCM system under RFP 758 2700000012, with proposals due August 31, 2026 at 3:30 p.m. ET and a mandatory vendors' conference on August 4, 2026.

The procurement mandates an integrated delivery model: a Software Solution Provider (SSP) must partner with exactly one Systems Integrator (SI), with each party limited to a single partnership. Proposals offering only software or only services will be deemed non-responsive. The solution must serve the Kentucky Employees' Health Plan (KEHP), which covers approximately 192,000 members and 300,000+ covered lives across 649 billed customers, managing benefits eligibility, enrollment, premium billing, payment collection, processing, and reconciliation.

All software must be a commercial off-the-shelf (COTS) product requiring minimal customization and incorporate Business Analytics & Reporting and Mobility functionality. FedRAMP compliance is mandatory for cloud-based solutions. The system must integrate with Tyler Technologies Transaction Payment Engine, support single sign-on, and maintain NIST SP 800-53 moderate-level security controls. All Commonwealth data must remain within the continental United States. Vendors must comply with Commonwealth Office of Technology AI Policy CIO-126; AI usage requires approval from the COT and AI committee. Systems Integrators must provide fixed-fee implementation pricing with 25% on-site and 75% remote work, with deliverable-based payments and 15% Commonwealth retainage pending final system acceptance.

The cost proposal carries a maximum of 1,345 points; the technical proposal, 8,070 points. Proposals scoring less than 65% of maximum technical points will not be evaluated further. The Commonwealth may award multiple contracts. Written questions are due August 6, 2026. Proposals must remain valid for a minimum of six months. All awarded vendors must cooperate fully with an Independent Verification and Validation vendor throughout implementation.