Funds Disbursement Services

The Texas Health and Human Services Commission (HHSC) and Department of State Health Services (DSHS) issued an Invitation for Bids (IFB) solicitation number HHS0016249 for advanced funds disbursement services to be provided statewide. The procurement seeks a qualified contractor to process and disburse funds to clients through money orders and wire transfers available at statewide locations including grocery stores and banks. Key deliverables include creating and distributing money orders by mail, establishing wire transfer networks for client pickup at authorized money transfer agents such as MoneyGram, Fidelity, or Western Union, implementing control mechanisms to ensure accurate payment processing, submitting daily authorization and disbursement reports, and providing monthly reconciliation reports. The contractor must maintain relationships with authorized money transfer agents, establish USPS or contracted courier services for statewide fund delivery, develop and maintain a Business Continuity and Disaster Recovery Plan and Quality Assurance Plan, and designate key personnel including a Project Manager, Payment and Reimbursement Coordinator, and Automation Coordinator. Required qualifications include a minimum of two years of relevant experience within the last seven years, three verifiable references for similar contracts completed within the last three years, required insurance coverage including Cyber/Privacy Liability Insurance, Workers' Compensation with employer's liability limits of $1,000,000 per accident and per disease, and Umbrella Liability Insurance of at least $1,000,000. A mandatory orientation session in Austin, Texas, must occur within 30 calendar days of contract award and shall not exceed two days. The solicitation was posted on March 3, 2026, with a questions and clarifications deadline of March 12, 2026, and responses were due by April 2, 2026, at 10:30 AM Central Time. Pricing must be firm and fixed for the contract life, submitted on Exhibit C—Pricing Sheet, and include all labor, equipment, materials, supplies, and related expenses. The historical annual spend for similar services is $94,384.68, provided as a guideline only, with HHSC providing no guarantee of volume, usage, or compensation.

The solicitation does not identify specific set-aside designations or restrictions limiting responses to disadvantaged enterprises or particular organization types. No incumbent vendor or current contractor is identified in the solicitation documents. The contract term extends from the award date through August 31, 2026, with three optional one-year renewal periods available through August 31, 2030, and one additional one-year extension option at HHSC's discretion. All respondents must complete and submit numerous required exhibits including Exhibit A (HHS Solicitation Affirmations—version 2.10 effective March 2026), Exhibit B (Contract Affirmations, Data Use Agreement, and Uniform Terms and Conditions), Exhibit B-1 (Security and Privacy Inquiry form), Exhibit C (Pricing Sheet), Exhibit D (Bidder Reference and Contractor Qualifications Form), Exhibit E (HHS Online Bid Room Information), Exhibit F (Information Security Acceptable Use Policy), and Exhibit G (Information Security Acceptable Use Agreement), along with acknowledgment of Addenda #1 and #2. Failure to submit required exhibits, including Exhibit A and the Pricing Sheet, will result in automatic bid disqualification. The procurement requires compliance with extensive state and federal affirmations and certifications, including E-Verify requirements, cybersecurity training, human trafficking prohibitions, suspension and debarment status verification, and numerous other statutory provisions. Respondents may submit bids electronically through the HHS Online Bid Room or via alternative submission methods specified in the solicitation package, with late submissions not accepted under any circumstances. Based on the historical annual spend of $94,384.68, the estimated five-year contract value would approximate $471,923.40, though HHSC does not guarantee any specific volume or compensation level.