RFP 6100062977-Flexible Spending Account

The Commonwealth of Pennsylvania's Office of Administration, Bureau of Employee Benefits (BEB) is seeking a Third-Party Administrator (TPA) for a Flexible Spending Account (FSA) and Dependent Care Reimbursement Account (DCAP) contract through RFP 6100062977. The procurement aims to provide comprehensive account administration for approximately 16,000 employees eligible for DCAP and 73,000 employees eligible for FSA, including participants from the Treasury Department, State Public School Building Authority, and Thaddeus Stevens College of Technology. The selected vendor will be responsible for enrollment, claims processing, customer service, COBRA administration, and technology integration with the Commonwealth's SAP system using web services. Key deliverables include web-based and mobile technology platforms, a robust communication strategy, and adherence to federal regulations like HIPAA and IRC Section 125. Evaluation criteria will be weighted 65% on technical merit and 35% on cost, with potential bonus points for domestic workforce utilization. The proposal is due on November 17, 2025, at 10:00 AM EST, with the contract term beginning January 1, 2027, and an initial open enrollment period scheduled for October 2026.

The solicitation does not specify explicit set-aside designations or restrictions for small, diverse, or veteran-owned businesses, though the procurement is valued under $250,000. The Commonwealth will provide a pre-funding amount not exceeding two months of anticipated claims, to be delivered by December 15, 2026. The contract includes a five-year and six-month initial term with potential for two additional one-year renewals, during which rates may increase up to 3% per renewal. Vendors must perform at least 50% of the contract value and demonstrate technological capabilities, comprehensive account management expertise, and strict regulatory compliance. The RFP includes detailed service level agreements with financial penalties for underperformance, ranging from $1,000 to $2,500 for failing to meet specific performance metrics. Proposing vendors must complete a comprehensive Personnel Listing (Appendix B) detailing key personnel qualifications and a Policy Driven Adoption for Accessibility (PDAA) Assessment to ensure digital accessibility standards are met.