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 under RFP AABA 2027-0042, with proposals due October 2, 2026 at 3:00 PM Mountain Time. Service-Disabled Veteran Owned Small Business (SDVOSB) offerors are encouraged to participate and must submit verification of certification through the U.S. Department of Veterans Affairs.

The scope covers fully insured, experience-rated STD and LTD plan administration for approximately 39,500 eligible State employees and dependents across 62 individual departments and 11 institutions of higher education. Required services include claims adjudication, claims payment, customer service, underwriting, consulting, and regulatory reporting. The contract commences April 1, 2027 and extends through June 30, 2029, with optional extensions through June 30, 2032 (not to exceed five years total). Offerors must meet mandatory minimum qualifications, demonstrate experience with large government sector clients, and comply with Colorado law and federal Web Content Accessibility Guidelines (WCAG) Level AA standards. SOC 2 Type II certification is required. The State self-bills premiums monthly and requires 45 to 50 days for premium processing across 14 payroll systems. STD premiums are 100% employer-funded; LTD premiums are 100% employee-paid on a post-tax basis.

Current plan experience shows STD maximum benefit of $3,000 weekly with 60% replacement over a 22-week benefit period and 30-calendar-day waiting period; LTD provides 60% monthly replacement up to $10,000 with a 180-calendar-day elimination period. The incumbent contract began July 1, 2015. Evaluation criteria include Accessibility Requirements, General Professional Services, Technical Components for STD and LTD, Cost, Management Capability, and Customer Service using comprehensive value analysis. Intent to bid is due September 25, 2026; vendor inquiries are due September 15, 2026. Oral presentations are estimated for the week of November 16, 2026. Pricing must be firm, fixed, and all-inclusive with no commissions. Proposals remain firm offers for 180 days.