SBE: Agency Payroll System

The Illinois State Board of Education (ISBE) is seeking a vendor to provide a new cloud-based agency payroll processing system through a Request for Proposal (RFP) posted in July 2025. The procurement targets a comprehensive system capable of processing payroll for 550-600 individuals across three payroll groups: Exempt, AFSCME, and IFSOE Bargaining Units. The system must support single sign-on capabilities using Active Directory or Entra ID, handle multiple payroll types including regular, delayed, supplemental, and lapse period payrolls, and integrate with ISBE's existing Management Information Database Accounting System. Key deliverables include automated transaction processing, document scanning, talent management applications, and comprehensive reporting capabilities. The evaluation will be points-based, with 800 points for technical requirements, 160 points for commitment to diversity, and 280 points for pricing, totaling 1,240 possible points. The procurement timeline includes bid posting in July 2025, demonstrations in August 2025, and an expected award in August 2025, with system implementation to be completed by December 31, 2025. The initial contract term will run from execution through June 30, 2030, with a maximum total contract duration not to exceed ten years.

The RFP emphasizes a strong commitment to diversity, with a Commitment to Diversity (C2D) evaluation factor equivalent to 20% of the solicitation's technical score. Vendors must provide detailed information on Business Enterprise Program (BEP) goal compliance, subcontracting with Women, Minorities, and Persons with Disabilities (WMDB) businesses, DEI spend, time investments, policies, and staffing diversity. Potential bidders must complete various disclosure forms, including the Illinois Procurement Gateway Active Registered Vendor Disclosure and Vendor Disclosure forms, which require comprehensive reporting on business operations, ownership, and compliance with state regulations. The procurement includes specific data handling and confidentiality requirements, with vendors needing to comply with regulations such as FERPA, ISSRA, and SOPPA. Insurance requirements include professional liability insurance of $1,000,000 per claim and a cyber liability insurance policy with $2,000,000 per claim and aggregate limits. While a specific contract value is not explicitly stated, the comprehensive nature of the system and the required capabilities suggest a significant investment in modernizing ISBE's payroll and human resources infrastructure.