FY27 Claims Processing for DFPS

The Health and Human Services Commission (HHSC) Procurement and Contracting Services, on behalf of the Texas Department of Family and Protective Services (DFPS), is soliciting an Invitation for Bid (IFB) for claims processing services for Child Protective Services (CPS) clients across ten DFPS regions (Regions 1-5, 7-11; Region 6 is excluded). The contract requires timely processing and payment of checks and online purchases on behalf of DFPS for goods and services benefiting eligible CPS clients, with services to be performed during regular business hours from 8 a.m. to 5 p.m. Central Time, Monday through Friday, excluding State Holidays, with emergency disbursement capabilities available same-day or next business day as designated. One separate contract will be awarded per region with an anticipated contract start date of September 1, 2026, running through August 31, 2031 with no renewal options, though DFPS reserves the right to extend for up to one year for continuity or transition purposes. Required qualifications include three years of relevant full-time business experience in payment processing or similar services, three years of financial management experience including account management and billing processes, and documented evidence of sufficient financial resources with minimum financial reserves equal to two months of operations for the desired region(s) served, ranging from $9,814 for Region 10 to $138,753 for Region 3. Respondents must submit an administrative fee proposal on a fixed-price basis structured as a unit rate for each accurate and timely completed disbursement, along with minimum three business references for similar services provided in the last two years and all required exhibits including the Pricing Sheet and Minimum Qualifications (Exhibit C), Respondent Reference Form (Exhibit D), and Affirmation and Solicitation Acceptance (Exhibit A). Written questions are due by May 6, 2026 at 10:30 a.m., with official answers posted by May 11, 2026, and response submissions are due by May 20, 2026 at 10:30 a.m.

The solicitation contains no identified HUB Subcontracting Plan requirement unless the respondent determines the need to subcontract, in which case prior notification to DFPS is mandatory within five business days of solicitation posting. Contractors must maintain $1 million in Errors and Omissions insurance and $50,000 in Commercial Crime Insurance with third-party property endorsement throughout the contract term. Respondents must comply with extensive federal and state civil rights laws, maintain E-Verify system participation for employee eligibility verification, obtain all necessary licenses and permits at contractor expense, and comply with comprehensive cybersecurity training and data security requirements as specified in DFPS guidelines, along with mandatory background check and screening requirements for employees with direct client contact. No specific budget or award values are listed; pricing will be evaluated based on respondents' submitted fixed-price administrative rate proposals for claims processing services by region. DFPS reserves the right to issue Corrective Action Plans for noncompliance, suspend or remove contract portions, and require removal of any employee or agent failing to meet performance standards or compliance requirements.