Human Resources, Payroll, Time, Labor, and Leave Services

The Texas Health and Human Services Commission (HHSC) is requesting proposals for Human Resources, Payroll, Time, Labor, and Leave managed services for approximately 50,000 state employees serving HHSC, the Department of State Health Services (DSHS), the Department of Family and Protective Services (DFPS), and the Cancer Prevention and Research Institute of Texas (CPRIT), with proposals due November 30, 2026, and a pre-proposal conference on October 26, 2026. The contract requires a mandatory VetHUB subcontracting plan with a 26% utilization goal of total contract value; responses without a compliant subcontracting plan will be rejected as non-responsive.

The scope encompasses Human Resources Services (recruitment and hiring via SAP SuccessFactors interfacing with PeopleSoft 9.2, performance management, compensation and classification administration, benefits coordination, health and safety, and unemployment wage verification); Payroll Services; Time, Labor, and Leave Services; Financial Services with commitment accounting; and Shared Services including an HHS Employee Service Center operating 7:00 AM to 7:00 PM Monday–Friday Central Time. The contractor must be a Certified SAP Partner for the recruitment and hiring module and maintain this certification throughout the contract term. Work is performed statewide across multiple agency locations including State Supported Living Centers, State Hospitals, and Disability Determination Services. The contract is structured as a three-phase engagement: Transition (six months), Operations (96 months comprising a four-year initial term plus an optional four-year extension), and Turnover (six months prior to contract end or within ninety days of HHSC request). Historical annual compensation has approximated $13 million per fiscal year, though HHSC reserves the right to adjust based on state funding availability and makes no guarantee of volume or total compensation.

Evaluation is weighted as Qualifications and Experience (15%), Project Work Plan (55%), Key Staffing Profile (10%), and Cost (20%), using a 10-point scoring scale. A performance bond set at a penal sum of $12 million is required. Contractors must comply with HHS MODERATE security baseline (NIST SP 800-53R4 MODERATE) with HIPAA and CMS-MARS-E overlays, submit a completed Security and Privacy Inquiry, and implement 200+ specified Information Security and Privacy controls. Questions are due October 29, 2026. HHSC anticipates evaluation through January 2027, notice of award in July 2027, and contract commencement in August 2027. Responses must be submitted via the HHS Online Bid Room requiring multi-step IAMOnline registration; technical difficulties do not constitute valid grounds for protest. Minimum qualifications include five years in HRPTLL services or equivalent ownership/executive management experience and demonstrated financial solvency.