Notice of Intent to Award for Solicitation RFP 190000002803

This Notice of Intent to Award pertains to a Health Maintenance Organization (HMO) services procurement by the Michigan Department of Technology, Management, & Budget on behalf of the Michigan Public School Employees' Retirement System (MPSERS). The RFP No. 190000002803 was posted on the SIGMA VSS platform on July 18, 2019, with a 20-day solicitation period and a proposal submission deadline of August 7, 2019. The procurement sought qualified HMO service providers capable of delivering comprehensive health insurance coverage for both Medicare and non-Medicare populations within the MPSERS plans, with premium rates effective January 1, 2020, through December 31, 2020. Evaluation of the three submitted proposals utilized a Pass/Fail methodology assessing bidders on mandatory requirements documentation, statements of work compliance, vendor questionnaire responses, and adherence to standard contract terms. The contract structure includes a one-year base term with four optional one-year renewal periods, allowing for sustained service delivery and performance assessment across the five-year potential contract window.

The Joint Evaluation Committee recommended multiple-vendor awards to Blue Care Network of Michigan and Priority Health Managed Benefits, while Health Alliance Plan of Michigan was deemed non-responsive due to taking unacceptable exceptions to Statement of Work provisions. The base contract year allocates $32,000,000.00 to Blue Care Network of Michigan and $78,000,000.00 to Priority Health Managed Benefits, totaling $110,000,000.00 for the initial term, with the comprehensive five-year program value reaching $993,500,000.00 when including all optional renewal years. The award was contingent upon State Administrative Board approval as of the September 30, 2019, posting date, with a response deadline of October 4, 2019, for any protests or objections to the award recommendation.