Request for Proposal for Section 125 Flexible Spending and COBRA Administration

The Madison Metropolitan School District (MMSD) in Wisconsin is seeking a comprehensive administrative services provider for Section 125 Flexible Spending Accounts and COBRA continuation coverage through a Request for Proposal (RFP). The district requires a strategic partner to administer services for approximately 2,780 teachers, 145 administrators, 1,300 support personnel, and 2,500 part-time staff. Required service capabilities include online enrollment, benefits card administration, direct deposit reimbursement processing, and bilingual customer support. Evaluation criteria will weight proposals across multiple dimensions: organizational ability (30%), organizational qualifications and experience (25%), pricing (35%), references (5%), and diverse-owned business certification (5%). Key procurement timeline milestones include a March 30, 2018 deadline for written questions, proposal submissions due April 20, 2018 at 2:00 PM CST, potential vendor interviews on May 4, 2018, and Board approval anticipated for June 25, 2018, with the contract effective January 1, 2019.

The district requires proposers to maintain $1 million in commercial and product liability insurance and will award the contract to the most responsive and responsible vendor with the highest total score. The current incumbent for Flexible Spending Account administration is Employee Benefits Corporation, which provides services at $2.75 per member per month, while COBRA administration is currently handled internally at $99 annually. The procurement allows for a three-year initial contract term through January 1, 2022, with options for two additional one-year renewals by mutual agreement. All proposals must remain valid for 60 days from the submission date, and MMSD reserves the right to negotiate final contract terms and potentially cancel the award if successful negotiations cannot be concluded. The district is exempt from federal excise and Wisconsin state sales taxes, which may provide additional financial considerations for potential vendors.