State of South Dakota Account Based Plans (HRA, HSA and FSA)

The State of South Dakota, Bureau of Human Resources and Administration, is requesting proposals for comprehensive administration of Account Based Plans—Health Reimbursement Accounts (HRA), Health Savings Accounts (HSA), and Flexible Spending Accounts (FSA)—with proposals due October 28, 2026 at 5:00 PM CDT.

The scope covers administration of six account types (Non-Tax HRA, Limited Non-Tax HRA, Dependent Care FSA, Medical FSA, Combination Medical FSA, and HSA) serving approximately 12,944 eligible employees, with 12,064 active employees and 94 COBRA participants currently enrolled as of July 1, 2026. Enrollment per plan type ranges from 184 to 8,460 participants. The State requires vendors to respond to all plan designs under a single contractual arrangement; separate contracts for individual services will not be considered. The contract term is five years beginning July 1, 2027, through June 30, 2032, with the opportunity for up to two additional one-year renewals at the State's discretion.

Vendors must meet substantial IT and security requirements, including Single Sign-On integration with OAuth 2.0 protocol, Web Content Accessibility Guidelines 2.1 Level AA compliance, vulnerability scanning, SOC 2 Type II reporting or FedRAMP certification, cyber liability insurance, annual risk assessments, multifactor authentication, and AES-256 encryption. All data must reside exclusively within continental United States data centers. Vendors must sign the Business Associate Agreement establishing HIPAA compliance obligations and the Contractor Security Acknowledgement Form committing to the State's Information Technology Security Policy. Vendors must complete a comprehensive Security and Vendor Questionnaire addressing system architecture, identity and access management, and compliance across proposed hosting models (vendor-hosted, state on-premises, or state cloud-hosted).

The cost proposal must be submitted in Excel format with itemized fees; administrative services fees cannot increase during the initial five-year contract term. Written questions are due October 16, 2026. Technical reviews begin November 9, 2026, with demonstrations and presentations scheduled for November 16–20, 2026, and anticipated award decision by December 14, 2026. Contract awards are subject to BIT approval.