Short-Term and Long-Term Disability Benefits

The State of Colorado Department of Personnel & Administration is requesting proposals for short-term and long-term disability benefits administration covering approximately 39,500 eligible state employees, with proposals due October 2, 2026 at 3:00 p.m. Mountain Time under RFP AABA 2027-0042. Service-Disabled Veteran Owned Small Businesses are encouraged to submit proposals and must provide appropriate verification documentation.

The scope encompasses fully insured, experience-rated STD and LTD plan administration, claims adjudication and payment, customer service, underwriting, consulting, and reporting. Key technical requirements include mandatory integration with Colorado's PERA Disability program, FAMLI coverage coordination, and Workers' Compensation offset procedures. All communication materials and systems must comply with Web Content Accessibility Guidelines (WCAG) Level AA. Vendors must demonstrate prior experience administering disability benefits to at least one public sector employer with more than 20,000 members and confirm licensure in Colorado. Responses addressing technical capabilities are limited to fewer than 150 words per question.

The contract commences April 1, 2027 and runs through June 30, 2029, with potential extension through June 30, 2032 (initial two-year-three-month term plus up to four one-year renewal options, not to exceed five years total). The State assumes an annual covered payroll of $10 million and currently pays 100 percent of STD premiums while LTD benefits are entirely employee-paid. Premium rates are guaranteed firm for five years with adjustments only once annually on the plan anniversary. The incumbent carrier is Unum. Current STD benefits feature a 30-calendar-day elimination period, 22-week maximum benefit period at 60% wage replacement (maximum $3,000 per week); LTD provides 60% wage replacement to a maximum $10,000 monthly with maximum payment periods varying by age at disability.

Vendor inquiries are due September 15, 2026 at 12:00 p.m.; intent-to-bid notification by September 25, 2026 at 12:00 p.m. Oral presentations are estimated for the week of November 16, 2026, with Notice of Intent to Award anticipated the week of November 23, 2026, and contract execution estimated for March 2027. Pricing must be submitted as firm, fixed prices in a separate Cost Exhibit with all related costs including surcharges and travel included. Vendors must be registered to conduct business in Colorado prior to contract execution and must disclose any conflicts of interest, debarment history, or serious negative contract performance issues from the past seven years.