Administration of Flexible Spending Accounts

REQUEST FOR PROPOSAL 3117

FOR

Administration of Flexible Spending Accounts

(TPA)

Prepared by

Community College of Allegheny County

Purchasing Department – College Office 800 Allegheny Avenue

Pittsburgh, Pennsylvania 15233

(412) 237-3146

RESPONSES TO THIS RFP MUST BE DELIVERED TO THE

PURCHASING DEPARTMENT

NO LATER THAN:

2:00 PM on, Wednesday, November 6, 2019

NO FAX OR ELECTRONIC RESPONSES ARE PERMITTED

Request for Proposal for Administration of Short Term Disability (TPA) - Page 2 of 27

SECTION ONE - PURPOSE OF THE RFP

I. INTENT/PURPOSE: The intent of this Request for Proposal (“RFP”) is to obtain information

regarding contractor services and firm prices for a Third Party Administrator (“TPA”) for flexible

spending accounts (“FSA”) for eligible employees at Community College of Allegheny County

(hereinafter “college” or “CCAC”).

II. GENERAL OVERVIEW: CCAC has high service expectations for a TPA who can provide

complete administrative and claims services for our health care and dependent care Flexible

Spending Accounts. Bidders must have a superior process for reconciliation of Flexible Spending

Account contributions and claims administration with excellent customer support to participants

and communication services. CCAC is seeking the following flexible spending account services,

but not limited to, the following:

1) Claims Administration

2) Web-based, online account inquiry and claims processing

3) Debit Card

4) Customer Service Local or 800 number (Service Center servicing employer and

participants must be located in the United States)

5) Communication materials

6) Dedicated Plan Administrator

7) Reporting Capabilities

8) Seamless implementation of program to CCAC and its participants

9) FSA COBRA administration

III. BACKGROUND: Founded in 1966, CCAC is a multi-campus public institution of higher

education located in Pittsburgh, Pennsylvania with approximately 2,000 employees of which

approximately 860 are eligible to participate in the FSA plan. The College has four campuses and

four centers located throughout Allegheny County and one center in Washington County. CCAC

currently serves approximately 26,000 credit and 18,000 non-credit students; nearly 44,000 total

unduplicated headcount.

The College offers health care flexible spending accounts and dependent care flexible spending

accounts. Participants can direct up to the maximum allowable limit pre-tax for each account.

Our employee enrollment experience in the FSA are as follows:

Flexible Spending Account 2017 Enrollment 2018 Enrollment 2019 Enrollment

Healthcare 93 95 87

Dependent Care 8 12 15

Plan Year (1/1 to 12/31) Health & Dependent Care Claims

# Claims Submitted

Elections

2017 1870 $127,254

2018 2092 $148,106

2019 1156

(1/1 thru 8/31) $151,590


Reimbursement:

The College’s FSA plan runs from January 1 – December 31 and includes a 2 ½ month grace period

until March 15 of the following year to incur claims for eligible expenses and March 30 to submit

claims.

Debit Cards:

Currently all Health Care FSA participants are issued a FSA debit card. Use is encouraged but not

mandatory. Participants choosing not to use the debit card for Health Care FSA reimbursement

may request a reimbursement using a manual reimbursement method. The debit card cannot be

used for Dependent Care reimbursement.

Manual Reimbursement:

This method is available for both the Health Care FSA and Dependent Care FSA. Participants may

submit claims in multiple methods, including via secure website by uploading scanned receipts and

support documentation, fax, or mail. The funds can be sent by check or direct deposit or directly to

the healthcare provider. Health FSA funds are available for reimbursement up to the annual amount

elected as of the first effective day of the plan. Funds for reimbursement from the Dependent Care

FSA become available only after contributions have been withheld from the participants paycheck

and reported to the vendor.

IV. SPECIFIC REQUIREMENTS:

Contractor shall:

i. Provide administration of health care and dependent care flexible spending

accounts, as well as any enhancements.

1. Provide CCAC timely written notice of any staffing changes among key

members of its account team. CCAC may also at any time request a

change in any member of its account team.

ii. Provide participants with a debit card option with current technology to pay for

eligible claims and have the capability to maintain health plan co-pays within

claims system to reduce or eliminate the need for paper documentation on certain

debit card transactions.

1. Provide clear communications regarding the features and functionality of

such debit/credit card.

2. Clearly explain all instances when the card may be used (pharmacy,

doctor’s office, vision provider, etc.).

3. Must provide a minimum of two debit cards to each account holder for

reimbursement, at no additional cost to the participant.

iii. Provide a paperless solution including real-time web-based account access for

participants and CCAC staff, web-based communications, self-service tools and

resources, enrollment capabilities and account access for both participants and

plan sponsor.


1. Maintain a fully automated claims adjudication system in compliance with

electronic transmission standards and security requirements and all other

regulations as required by HIPAA.

2. Reconcile funds and prepare time appropriate accounting statements to

designated CCAC staff, including revenues received, amount of claims

paid by plan type, plan year, account balance, and expense detail.

3. Have the capability to accept funds via ACH.

4. Provide the ability to process claims simultaneously for different plan

years (e.g. grace period administration). All reporting must be detailed by

each plan year.

5. Provide multiple options for participants to apply for claims

reimbursement (e.g. web-based, facsimile, US mail, email, etc).

6. Maintain full and accurate records for all claims paid.

iv. Ensure that the plan design, plan documents, implementation, communication and

reports are in compliance with all current applicable laws and regulations.

v. Participant Account Contributions

1. Accept the plan enrollment elections via secure electronic file transmission

and post to participant recordkeeping accounts, those elections.

2. Participant contributions are payroll deducted either twice a month over 24

pay periods; or once a month over 12 pay periods.

vi. Currently the College’s plan allows for claims eligible from the current plan year

to be processed by the grace period of March 15th of the following year. After

March 15th, any remaining unreimbursed contributions from the participant are

forfeited to the employer.

vii. Provide administrative services and technical guidance to CCAC as it relates to

the Internal Revenue Code Sections 125 and 129 and any other pertinent federal

laws, rules and regulations.

viii. Develop marketing and communication materials (approved by CCAC) to educate

employees about the program benefits with a focus on increasing program

participation.

1. Supply electronic versions and furnish sufficient number of hard copies to

CCAC prior to commencement of annual open enrollment and throughout

the year as needed.

ix. Provide on-site support at various CCAC-sponsored events/meetings to promote

and increase employee education upon request by CCAC. Participate in open

enrollment and periodic meetings, including on-site and webinars.


x. Provide communications to participants to include their account balance a

minimum of sixty (60) days before the end of the plan year/grace period to

minimize unnecessary forfeitures.

xi. Provide administrative, technical, and physical safeguards to protect any CCAC

information maintained in the contractor's custody.

xii. Provide interface data file requirements in a mutually agreeable format to CCAC

upon completion of final contract.

xiii. The Contractor shall be responsible for all activities related to transitioning the

services at the inception and termination of a Contract, including but is not limited

to grace and runout periods for Flexible Spending Accounts.

xiv. The bidder will be required to provide a complete description of administrative

services including but not limited to the following:

a. Direct participant submissions;

b. Claims adjudication;

c. Direct payment to participants with individualized statements;

d. Direct deposit to participant accounts of claim payments;

e. Reports to participant or including balancing and reconciliation of

accounts;

f. Provide a local or toll-free 800 number (Service Center servicing employer

and participants must be located in the United States); including a twenty-

four (24) hour, integrated voice response system.

g. Process Flexible Spending Account claims;

h. Process Flexible Spending Account claim checks;

i. Send reimbursements to the participants homes and via direct deposit;

V. DEFINITIONS/CLARIFICATIONS

A. “Contract” or “Agreement” as used throughout this document shall refer to any contract

that is awarded by the college to an interpreting company as a result of their response to

this RFP.

B. The “Contractor” may also be referred to throughout this document as “Interpreting

Contractor”.

SECTION TWO - INSTRUCTIONS/CONDITIONS FOR PROPOSAL SUBMISSIONS

I. REQUIRED SUBMITTALS

The college requires that responses to this solicitation contain the following information:


A. PRICING SUMMARY PAGE(S): Submit the pricing page(s) contained herein.

B. SUBMITTAL FORM –1: Vendor must complete, sign, and submit this page with their

proposal response.

C. QUESTIONNAIRE: Each bidder must answer the questions in the enclosed Questionnaire

on a separate sheet of paper in their bid response. The question must be included before the

answer. For each question, bidder should provide a full answer, however be short and

concise as possible to facilitate our analysis and to avoid confusion. Do not refer to other

sections of your proposal, however if the questions are answered in a previous subsection

of question(s) please note where specifically and elaborate as applicable; otherwise include

the applicable information in the response to the question. Please answer the questions as

it relates to, or is applicable to, Health Flexible Spending Account and Dependent Care

Spending Account

D. REFERENCES: Submit at least three current customer references (preferably of like size

and operational structure as to that of the college) using enclosed reference form.

D. REQUIRED DOCUMENTATION: Submit all documentation and support materials as

described throughout this RFP.

E. MBE/WBE PARTICIPATION: CCAC encourages the participation of minority and

women-owned businesses in all of its contracts and is committed to providing maximum

opportunities for qualified minority and/or women-owned business enterprises

("MBE/WBEs") to participate in its work. Bidder agrees (1) if qualified, to take reasonable

and timely steps to obtain appropriate certification (as, for example, from the National

Minority Supplier Development Council or the Women's Business Enterprise National

Council) as an MBE and/or WBE, (2) to ensure that MBE and/or WBEs are appropriately

considered as subcontractors and/or suppliers under this Agreement; and (3) to report

moneys spent for MBE and/or WBE subcontractors and/or suppliers for work as CCAC

may from time to time reasonably request. CCAC’s goal for MBE/WBE participation is

15%. Please provide documentation as to your firm’s good faith effort to reach this goal

by describing all applicable details of MBE/WBE participation that may be included in the

resulting agreement.

II. GENERAL SUBMITTAL REQUIREMENTS / CONDITIONS

A. All proposal responses, inclusive of the required submittals and all other documentation,

must be submitted in hard copy and either mailed, delivered by private carrier, or hand-

delivered. (No fax or electronic responses are permitted).

B. PROPOSAL DEADLINE: Proposals are due by 2:00 P.M. on Wednesday, November

6, 2019. (Proposals received late will not be considered by the college.)

C. One original and two (2) copies of such shall be appropriately identified and delivered to:

Community College of Allegheny County

Purchasing Department - Attn: Michael Cvetic

800 Allegheny Avenue

Pittsburgh, PA 15233

D. Proposals shall clearly indicate company name, full address, contact person, phone number,

fax number, e-mail address, and company website.


E. Proposals must contain the original signature of a duly authorized officer or agent of the

company submitting the proposal.

F. Any/all information/language that is proposed to be incorporated into any final agreement

shall be submitted with the vendor’s response.

G. All costs incurred in preparing a response shall be at the vendor’s expense.

H. Any proposal submitted must be held open for at least 90 days after the opening date.

I. A bidder conference will not be held for this RFP.

III. QUESTIONS

A. All questions regarding the RFP are to be directed to Michael Cvetic, Director of

Purchasing. It is preferred that questions be presented in written form and submitted

electronically to Mr. Cvetic’s email address of [email protected].

B. All questions must be submitted no later than 12:00 Noon on Wednesday, October 30, 2019

to [email protected].

IV. VENDOR QUALIFICATIONS:

In order to qualify to submit a proposal response to this RFP, a Vendor shall certify that they meet

the following minimum requirements:

A. Vendor must be regularly and continuously engaged in the business of providing flexible

spending accounts for a minimum of five consecutive years and be experienced and

competent to perform all work identified within this RFP.

B. Account Management Staff should have at least five or more years of day-to-day experience

to the related benefits. This is verifiable via resume.

C. Vendor must be financially solvent (audited financial documentation may be requested by

the college and must be provided within 48 hours upon request).

D. The Vendor must hold all applicable licenses, certifications, and registrations as required

and must provide copies to the college with their proposal response, or otherwise prior to

award of the contract. The Vendor shall also meet all federal, state and local requirements

as may be required with regard to the nature of its business.

V. VENDOR REPRESENTATIONS / WARRANTY

A. Any responding vendor, by submitting a proposal, specifically represents and warrants that

it has and shall possess, and that its employees, agents and subcontractors have and shall

possess, the required education, knowledge, experience and character necessary to qualify

them individually for the particular duties they perform.

B. The college shall reserve the right to inspect and/or evaluate any potential awardees’

facility, physical equipment, staffing levels and staff qualifications, and/or any other

matters that may bear upon the ability to successfully perform the scope of work.

mailto:[email protected]

mailto:[email protected]


C. The college shall conduct interviews of vendors as needed to evaluate qualifications.

Should the college reasonably find that any vendor does not have the capacity to perform

the work to the colleges satisfaction; the college may reject the vendor’s proposal.

SECTION THREE - TERMS AND CONDITIONS OF THE AWARDED CONTRACT

The following terms and conditions shall apply to any resulting award or consideration of an award.

I. GENERAL CONDITIONS OF AN AWARD:

A. Any terms and conditions of a responding vendor’s that are in conflict with the college’s

terms and conditions, inclusive of any specific contractual requirements, must be readily

identified within the vendor’s RFP response.

B. The college may negotiate the inclusion, exclusion, or alteration of any language, terms,

pricing, or conditions prior to the issuance of a signed contract, or throughout the term of

the contract.

C. Any final contract shall incorporate this RFP document and vendor’s response, any addenda

issued, and the proposal as submitted by the successful vendor and accepted by the college.

D. Vendors are cautioned that although the vendor’s terms may be submitted for consideration,

the college reserves the right to negotiate its preference of the same, or otherwise reject the

vendor’s proposal if the college is not able and/or willing to agree to the vendor’s terms.

E. The college further reserves the right after the execution of contract documents to evaluate

the contractor’s performance, physical equipment, staff and all other matters that in the

college’s opinion, have a bearing upon the contractor’s ability to continually perform the

terms of the contract. Should the college reasonably find that the contractor is not

performing to the college’s satisfaction, the college may exercise its right to terminate the

contract at any time with written notice to the vendor.

II. EVALUATION AND AWARD OF PROPOSALS

A. While each proposal shall be considered objectively, CCAC reserves the right to accept or

reject any proposal and to waive any formalities, informalities or technicalities in the RFP

process at its own discretion.

B. The college will not be bound by oral explanations or instructions given by any CCAC

employee or agent at any time during the competitive proposal process or after award.

C. Modifications to the specifications of this RFP shall only be valid if issued in writing by

the college, by way of an addendum.

D. CCAC reserves the right to award any resulting contract in any manner that is determined

to be in its best interest. Factors other than prices proposed may be considered by the

college when awarding the agreement (e.g.: experience, MWDBE participation, number of

available administrators, etc.).


III. BOND AND INSURANCE REQUIREMENTS

A. PERFORMANCE BOND: A performance bond in the amount of $25,000.00 must be

submitted upon contract award and shall remain in place throughout the term of the

agreement, including any option years that the college may exercise.

The college will accept only bonds written by Surety Companies authorized to do business

in the Commonwealth of Pennsylvania and the County of Allegheny and included on the

United States Treasury Department Annual List of Surety Companies published July first

of each year. Limits for those companies appearing on the United States Treasury

Department list cannot be exceeded.

1) Irrevocable Letter of Credit: A contractor to the Community College of

Allegheny County may substitute an Irrevocable Letter of Credit in lieu of a

Performance Bond. If this option is chosen by the contractor, the Irrevocable

Letter of Credit must include the following terms.

a. The terms of payment must be stated as follows:

“The drafts must be accompanied by your (CCAC) signed statement

certifying that the contractor has not performed satisfactorily in accordance

with the specifications and conditions of the contract. Unsatisfactory

performance will be determined solely by the Community College of

Allegheny County”.

b. The Irrevocable Letter of Credit must be payable and confirmed through a

correspondent bank that has an office located in Allegheny County,

Pennsylvania and which has total assets of at least $5 billion.

c. The Irrevocable Letter of Credit shall not expire for a period of at least

ninety (90) days beyond the expiration date of the contract.

2) Certified or Cashier’s Check: In lieu of a performance bond or irrevocable letter

of credit, the college would accept a certified or cashier’s check I the amount of

$25,000, which would be held for the duration of the agreement and returned upon

completion.

B. INSURANCE REQUIREMENTS: The contractor must meet all Insurance and

Indemnification Requirements of the college as delineated in Form B (attached). An

applicable Certificate of Insurance must be provided to the College by the awarded contractor

prior to the start of any work and the required coverages must be maintained throughout the

duration of the contract, inclusive of any applicable option year term.

IV. TERM OF CONTRACT:

A. The college intends to award a contract for the initial term of January 1, 2017 through

December 31, 2017, with the right to exercise options for four (4) additional one-year terms

through December 31, 2018, December 31, 2019, December 31, 2020, and December 31,

2021.


B. The contractor shall be advised in writing 60 days prior to the end of the expiring contract

period as to whether the college will exercise an option.

V. TERMINATION PROVISIONS:

A. The awarded contract may be terminated in whole or in part in writing by the college in the

event of the failure by contractor to fulfill its obligations under the terms and conditions of

the contract, or in the event that the contractor files for bankruptcy or otherwise becomes

financially insolvent, or breaches any material provision of the agreement (all in the

college’s sole opinion). The college shall provide the contractor with a written notice of

any conditions which violate or endanger the performance of the contract, and, if after such

notice, the contractor fails to remedy such conditions within thirty (30) days to the

satisfaction of the college, the college may exercise its option in writing to terminate the

contract without further notice to the Contractor.

B. The above stated thirty (30) day time to cure shall not be required of the college when the

violation or breach involves, in the college’s opinion, public safety risks, or immediate or

imminent danger or damage to the college’s facilities or equipment.

C. Upon receipt of a termination notice pursuant to the foregoing paragraphs, contractor shall

promptly discontinue all services affected and vacate the premises, unless otherwise

directed by the notice of termination. college shall have the right before or after termination

to (a) take over the work and prosecute the same to completion by agreement with another

party; (b) recover by law from contractor any and all damages sustained by reason of non-

compliance with or breach of the contract; (c) withhold any and all payments to Contractor

that may be outstanding and apply the same to offset any damages; and/or (d) invoke the

contractor’s performance bond.

D. Upon termination, the contractor acknowledges and agrees that it shall not be entitled to,

nor shall it make a claim for, lost profits or loss of anticipated earnings because of

termination. college shall have the right at their notion to terminate the contract without

any liability whatsoever on the part of college. The college shall be the sole judge as to

whether or not contractor has fully and faithfully complied therewith.

E. Good Faith Efforts: It is the college’s intent to procure and maintain a stable business

relationship with its Security contractor. The parties thereby agree to attempt, in good faith,

to resolve all disputes between them in an amicable and efficient manner.

VII. MISCELLANEOUS PROVISIONS OF THE CONTRACT

A. INDEPENDENT CONTRACTOR STATUS: It shall be expressly agreed that

contractor’s status hereunder an award is that of independent contractor. Neither contractor,

nor any person hired by contractor, shall be considered employees of the college for any

purpose.

B. AUTHORITY TO BIND: In the performance of the awarded services, contractor agrees

that the contractor shall not have the authority to enter into any contract or agreement to

bind the college in any way and shall not represent to anyone that the Contractor has such

authority.


C. GOVERNING LAWS: Any resulting agreement shall be governed by and construed in

accordance with the laws of the Commonwealth of Pennsylvania.

D. CONTRACTOR INTEGRITY PROVISIONS: The awarded contractor must agree and

abide by the following integrity, confidentiality and non-disclosure provisions:

1) COLLEGE’S INTERESTS: contractor agrees that it will not during the term of the

resulting agreement engage in any activity which is contrary to and in conflict with

the best interests, goals and purposes of the college.

2) CONFIDENTIALITY: The contractor, and its employees, shall not disclose to

others any confidential information gained by virtue of the resulting contract.

3) COMPLIANCE WITH APPLICABLE LAW: The contractor shall maintain the

highest standards of integrity in the performance of the contract and shall take no

action in violation of state or federal laws, regulations, or any other requirements

that govern contracting with the college.

E. VERBAL AUTHORIZATIONS:

1) No verbal agreement or understanding with any officer, agent or employee of the

college, either before or after the execution of the contract, shall alter, amend,

modify, or rescind any of the terms or provisions contained in this RFP or any of

the contract documents.

2) However, the above provision shall not limit or affect the right of the college to

make changes or variations in the scope or general requirements of the contract.

Any such changes must be authorized in writing by the college.

F. COMMONWEALTH PROVISIONS

The contractor further agrees that every provision required by the laws, ordinances or

regulations of the Commonwealth of Pennsylvania or political subdivisions relating to

agreements entered into by a public body in the Commonwealth of Pennsylvania or political

subdivisions thereof, are to be inserted and made part of this RFP and any resulting

agreement and shall be deemed to have been inserted with force and affect as if all such

provisions and clauses were fully and specifically set forth herein. This RFP and any

resulting agreement shall be read, construed and endorsed as though the same were fully

set forth herein.

Pricing Sheet – Page 1 of 2

RFP No. 3117 – Third Party Administrator – Flexible Spending Accounts

The information requested in this Section (in addition to the RFP questionnaire) is required to support

the reasonableness of your proposed price.

Reflect the details of the expected total contract cost for the following plan years. The contract will take

the form of a three (3) year agreement, beginning to coincide with implementation of a go-live date for

January 1, 2021 plan year, and two (2) one-year options to extend the contract.

Include specifics regarding the following:

Competitive fees (although lowest cost is not necessarily the only decision-making factor)

Clear description of fee components and calculations

Administrative fee should be quoted on a per-participant-per-month (PPPM) basis and should be

all inclusive – no separate renewal fee, postage fees, run-out fees, etc.

Note: All “add-on” costs must be estimated and documented.

Plan: CY 2021 CY 2022 CY 2023 CY 2024 CY2025

HC FSA

DC FSA

Indicate yes or no if the services listed below are included in the above price quote. If not, can the

service by provided for an additional fee and provide proposed fee.

Service: Included in Admin Fees?

Yes or No

If no, explain.

Weekly claims processing and

reimbursement

Online employer and participant

account access

Quarterly participant account

statements

Direct Deposit

Debit card Fees

Debit card Replacement Fees

Direct vendor payment

FSA COBRA administration

Renewal Fees

Pricing Sheet – Page 2 of 2


*Please be sure to include any other possible fee category that could be applicable to the services

requested in this RFP that is in addition to the PPPM charge

Data or Participant Account

Correction Fees

Brochures (printing, shipping,

postage, etc.)

Reporting Custom- Ongoing or Ad

Hoc

Video, CD, Webinars, other

Plan sponsor consultation on

participation issues

Conference calls/web conference with

plan sponsor

On-site Employee Meetings

If yes, how many? ______

Annual Benefit Fairs

*Other:

*Other:

*Other:

*Other:

*Other:

*Other:

*Other:

*Other:

*Other:

Interpreting Services – Submittal Form -1


By submitting a proposal the vendor acknowledges that the following items are hereby

understood and agreed to:

The undersigned, having carefully examined all sections and attachments to this Request for Proposal

does hereby offer to furnish all labor, materials, equipment, supplies, insurance and bonds specified,

and services necessary to fulfill the contract in accordance with the RFP which is/are hereby

acknowledged by the signature below.

STATEMENT OF NON-COLLUSION

Finally, the undersigned also certifies that this proposal is made without previous understanding,

agreement or connection with any person, firm, or corporation making a proposal on this same service

and is in all respects, fair and without collusion or fraud.

SIGNATURE OF OFFEROR

(Must be signed by a duly authorized officer or agent of the responding company.)

Company

Name

_______________________________

Signed by

_____________________________

FEIN

_______________________________

Name

(printed)

_____________________________

Address _______________________________ Title _____________________________

_______________________________

Telephone

_____________________________

Zip + four

_______________________________

Fax

_____________________________

Date _______________________________ E-mail _____________________________

REQUEST FOR PROPOSAL

INSURANCE REQUIREMENTS

FORM “B”

Indemnification. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold

harmless the Community College of Allegheny County (CCAC), its agents, officers, employees, and

volunteers from and against all claims, damages, losses, and expenses (including but not limited to attorney

fees and court costs) arising from the acts, errors, mistakes, omissions, work or service of Contractor, its

agents, employees, or any tier of its subcontractors in the performance of this Contract. The amount and type

of insurance coverage requirements of this Contract will in no way be construed as limiting the scope of

indemnification in this Paragraph.

Insurance. Contractor shall maintain during the term of this Contract insurance policies described below

issued by companies licensed in Pennsylvania with a current A.M. Best rating of A- or better. At the signing

of this Contract, and prior to the commencement of any work, Contractor shall furnish the CCAC Purchasing

Department with a Certificate of Insurance evidencing the required coverages, conditions, and limits required

by this Contract at the following address: Community College of Allegheny County, Purchasing Department,

800 Allegheny Avenue, Pittsburgh, PA 15233.

The insurance policies, except Workers’ Compensation and Professional Liability, shall be endorsed to name

Community College of Allegheny County, its agents, officers, employees, and volunteers as Additional

Insureds with the following language or its equivalent:

Community College of Allegheny County, its agents, officers, employees, and volunteers are hereby

named as additional insureds as their interest may appear.

All such Certificates shall provide a 30-day notice of cancellation. Renewal Certificates must be provided

for any policies that expire during the term of this Contract. Certificate must specify whether coverage is

written on an Occurrence or a Claims Made Policy form.

Insurance coverages required under this Contract are:

1) Commercial General Liability insurance with a limit of not less than $1,000,000 per occurrence for

bodily injury, property damage, personal injury, products and completed operations, and blanket

contractual coverage, including but not limited to the liability assumed under the indemnification

provisions of this Contract.

2) Automobile Liability insurance with a combined single limit for bodily injury and property damage

of not less than $1,000,000 each occurrence with respect to Contractor’s owned, hired, and non-owned

vehicles.

3) Workers’ Compensation insurance with limits statutorily required by any Federal or State law and

Employer’s Liability insurance of not less than $100,000 for each accident, $100,000 disease for each

employee, and $500,000 disease policy limit.

Questionnaire


Each bidder must answer the questions in Exhibit D – Questionnaire on a separate sheet of paper in their

bid response. The question must be included before the answer. For each question, bidder should

provide a full answer, however be short and concise as possible to facilitate our analysis and to avoid

confusion. Do not refer to other sections of your proposal, however if the questions was answered in a

previous question of a subsection, please note where specifically and elaborate as applicable; otherwise

include the applicable information in the response to the question. Please answer the following

questions in the various subsections as it relates to, or is applicable to, each category listed below:

1. Health Flexible Spending Account

2. Dependent Care Spending Account

Questionnaire

General Questions

1. Provide your name, primary business address, and company website address.

2. Provide an overview of your organization/firm, including at minimum: historical background, location(s) of business, main business activity, length of time in business, length in time administering FSA benefits, and organizational structure. Please limit to 500 words or less.

3.

Indicate the number of FSA plans your company has in force as of January 1, 2019. What is the average tenure of your client? What is the average size of those employers? Please separately identify those that are Higher Education Institutions along with the average percentage of participants enrolled in an FSA (separately for HCFSA, DCFSA)

4. Do you outsource any portions of the FSA administration?

5. Please provide a listing of all services you provide as it relates to Internal Revenue Codes 125 and 129.

6. What is your turnover rate for 2017 and 2018?

7. Are you publicly or privately held? If other, please describe.

8. Have you ever conducted business under another name? If so, what name? Is your company a subsidiary or affiliate of another company? If yes, please explain and provide full disclosure of any direct or indirect ownership or control by any administrative service agency.

9. Describe the current and future direction of your administrative services (i. e. Overall growth, new systems, new capabilities, projected availability dates, etc.).

10. Have your organization, employees, agents, independent contractors, or subcontractors been cited or fined or been threatened with citation or financial penalties within the last five years by federal or state regulators for violations of federal or state laws and/or failure to implement regulations? If yes, explain fully.

11.

Have you been involved in litigation in the last five years arising out of your performance in the administration of group sponsored FSA plans? (Exclude routine matters involving participants and benefits that do not reflect on your performance under the contract/agreement with your clients.) If the answer is yes, please explain fully. What is the current status? If it has been resolved, what was the outcome?

12. In the past 15 years, have you had any IRS or HIPAA audits that resulted in findings of noncompliance in the administration of FSA plans for any client? Summarize the details including dates of action and corrective measures required and taken.

13. Describe any pending arrangements to merge or sell your company.

14. Please include your most current annual report of your organization.

Questionnaire 15. Briefly indicate the main attributes that differentiate your company from your competitors.

16. How do you ensure client confidentiality consistent with current HIPAA requirements? How frequently does your staff complete HIPAA training? Is your system HIPAA compliant for data security? Explain how.

17. Have you or any business associate report a HIPAA breach involving 500 or more individuals in any given state or jurisdiction? If so, provide a statement.

18. Describe your record retention policy.

19. How do you ensure logical security and access to your programs, systems and data? What security controls do you have in place to protect customer data?

20. Explain your company’s plan for a system back‐up in the event of a system failure or disaster.

21. Do you obtain a service organization control report or other evaluation of the controls in place to protect customers’ data?

22. What type of information do you provide to clients on current laws and compliance issues; legislative updates?

23. Do you provide indemnification protection in the case of noncompliance? If yes, please indicate to what extent and include the contract language.

24. Please provide details of the contract termination language.

25. What type of client support is available after the client has cancelled services?

26. What performance guarantees would your organization provide for services contemplated under this RFP?

Communication and Education

27. Please list the communication and educational materials you provide to employees regarding Flexible Spending Accounts (flyers, brochures, video, etc.) and the purpose of each one. Please provide samples.

28. Do you have separate communications for the Flexible Spending Accounts Debit Card? What additional information does this cover (how claims are substantiated, when to use/when not to use the Debit Card, what to do when they can’t use the Debit Card, etc.)? Please provide copies of all of your printed materials.

29. Describe your notification process for claim denials and claim appeals.

30. How will the Debit Card be distributed to Participants?

31. Can you support and provide staffing for face to face educational meetings (i.e. multiple meetings at 5 different locations within Allegheny County scheduled over several days for a period of time) to all CCAC employees as determined by the College?

32. Can you participate and support one (1) Health Fair held around the Annual Open Enrollment Period?

33. Does your organization provide support and/or participate in open enrollment communications campaigns? Describe your involvement and how you will assist participants in learning about their benefit options. (Open enrollment at CCAC is held November 1 each year for two weeks).

34. Will Webinars be available for Employees? Is there an extra cost for this service? (Do not include fees in this section- all costs related information should be provided in the cost proposal.)

35.

List the types of employee communications you provide and include samples of such materials: a. Hardcopy handouts (welcome kits) b. Video-taped information c. On-site Seminars- if so, how many? d. Website address

36. What types of statements (including frequency) are provided to participants?

37. List the available technology used in servicing the account included in this proposal.

38. Will you provide voice response technology and/or internet access to participants for current account status information?

39. Do you provide electronic and/or on-line internet access to enrollment/change forms, claims and communications materials? Is it compatible to use on mobile devices such as iPad, smart phones, laptops, etc?

40. Do you provide a mobile application for participants? If yes, please explain what services are provided through the smartphone application.

Questionnaire 41. Is a monthly newsletter provided to the employer as part your service?

42. Do your quoted rates include the full cost of communications, including the production and distribution (including postage) of promotional materials?

Implementation/Administration

43. Please provide an implementation checklist based on a go-live date for the start of the FSA plan year beginning January 1, 2021.

44. Describe your approach to implementing our account, including time frames. Please explain how you would facilitate claims incurred between January 1, 2020 to March 15, 2020. How would you help with the grace period?

45. Identify the project team members that would service CCAC account during implementation. If different, also identify the service team who will work with the account after implementation. If not already provided, please provide resume for each member of both teams that will work on the account.

46.

Please provide a detailed description and flow chart of your FSA administrative process from annual enrollment, through reimbursement and forfeiture. Provide samples of the following documents:

a. Enrollment materials and other applicable communications documents b. Claim forms c. Quarterly balance statements

d. Year-end forfeiture warner letter

47. Does your FSA system allow for multiple individuals at the CCAC to have access to view and change information if needed? What daily functions are available?

48. Does your FSA system allow a feed or upload from CCAC for purposes of elections and/or qualifying events? Will a notice be provided that file submissions are received? How is that notice provided and within what timeframe?

49. If a conflict is found in a data feed, confirm that the conflict information will be reported back to CCAC within one business day so CCAC can correct and retransmit their records.

50. With regard to exchanging data, CCAC may include their system generated employee IDs for each individual person/member in the provided file format. Please confirm that your organization can store the CCAC-assigned employee ID’s, and include these data elements on any participant-level reporting to CCAC.

51. Does your system allow for direct and remote access, manual data entry, and correction of eligibility data by authorized CCAC contacts? Is there auditable tracking of who made manual changes available?

52. Is a website available to participants that allow them to do any of the following: check the status of their account, submit a claim, and check request for additional information for a pending claim. Please list any additional capabilities available.

53. Which internet browsers are supported by your organization?

54. Please provide a detailed description of how Employer and Participant contributions shall be provided to the Third Party Administrator and the timing.

55. How are the individual accounts funded? Will contributions be pulled from CCAC at the time of payroll deduction or when a claim is incurred? If yes, please explain how this is set up and the process.

56. Describe your practices for handling claims appeals. Please provide a copy of your appeals procedures.

57. How would renewal fees be evaluated?

58. Describe the escalation process for customer service satisfaction and grievances.

59. System – CCAC uses a benefits module through Ellucian Colleague. Please describe your capability and experience integrating with this system, if any.

60. Describe how your organization would determine employee eligibility and reimbursement eligibility, if applicable.

61. Describe your reimbursement process in detail. Include location of office(s), timelines, funds transfers and personnel responsibilities that would be involved.

62. Confirm that no minimum participation requirements will be imposed.

Questionnaire

Claims Administration

63. Please provide the number of FSA claims processed for 2016, 2017 and 2018 (Separately for Health Care and Dependent Care)

64. How frequently do you make claim reimbursements (daily, weekly, biweekly, semi-monthly or monthly)? Can CCAC determine frequency of reimbursements? Does the processing fee vary based upon the reimbursement frequency?

65. What is your average FSA claim turnaround time for the past 12 months (number of days from receipt of a clean claim)?

66. Describe the timeline for paying a clean claim. Start the timeline with your receipt of a clean claim on 2/1/19.

67.

What is your method of participant reimbursement (debit card, mailed check and/or direct deposit)? a. Is there a minimum reimbursement or claim amount? b. For mailed check and direct deposit, what is the frequency in payment for participants opting for either

method? c. Is there a charge to CCAC or CCAC participants for paper check reimbursement? If so, additionally detail

within the cost proposal.

68.

Are you able to accept rollover claims from medical, dental and/or vision providers? Describe your experience working directly with third-party administrators or insurers to automatically adjudicate an FSA reimbursement request when a claim is paid? Discuss briefly, indicating issues where the claims process is likely to have problems.

69. How are manual claims filed and processed?

70. Will you accept faxed, scanned emailed claims, and/or online submission via secure website or portal?

71. What is your definition of a covered expense? Can the participants define covered expenses or do you cover all services as defined by the IRS? What steps do you take to ensure that a submitted FSA claim is a covered expense under Section 125 and 129?

72. Do you investigate and analyze claims prior to payment? Describe the administrative process of claims review.

73. What claim documentation will you require from a participant in order to pay the claim?

74. Describe how you administer individual accounts in situations where the participant's request for reimbursement exceeds year-to-date contributions.

75. Describe your standard method for processing claim run-out after the plan year closes.

76. Describe how forfeitures are handled and the timeline for handling them.

77. Will you process all claims in accordance with applicable federal and state laws and regulations?

78. Will you generate detailed quarterly account statements to enrollees, and end-of-plan-year warning notices regarding forfeitures?

79.

Describe your processes for the following: a. Process to replace reimbursement checks or direct deposits into closed accounts. b. Handling of checks that have voided. c. Process and timeframe to replace lost or stolen checks.

80. Explain the time period for un-deposited or outstanding checks. What is your process for returning funds that have not cleared the bank within the established stale dated check timeframe?

81. Provide the process for month-end processing and reconciliation of all reimbursements issued and voided.

82. Describe your process for administration of Dependent Care Accounts.

83. Describe your website for online services.

84.

Confirm your team will, at no additional cost, initiate and provide at least annual meetings with CCAC employer contacts to present current plan and service performance, address any recent issues/challenges encountered, and discuss other pertinent topics to be identified prior to each meeting. At minimum, CCAC requests that an account team member closely involved in the daily operations of the CCAC account and a manager-level team member with oversight responsibilities attend all meetings.

Questionnaire

Debit Card and Functionality

85. Does your Debit Card system have the ability to substantiate claims from multiple carriers/plans? Can you load Medical, Dental, and Vision co-pays so the card will substantiate those claims?

86. Does your Debit Card work with both Health Care and Dependent Care Flexible Spending Account types? Please explain the functionality for each account type.

87. Are there different requirements for funding the debit cards?

88. How do participants have to substantiate claims under the debit card manually by submitting receipts or supporting documentation?

89. Describe your process for auto-adjudicating FSA claims. What types and percentages of your claims are auto adjudicated? What steps have been taken to reduce the need for substantiation and increase auto-adjudicated claims?

90. Please describe the process for collecting money from participants when they fail to submit receipts. What parts of the process do you manage, and what is the employer responsible for?

91. Please describe the process of turning off the card if a participant fails to submit receipts when asked. What is the timing of this and how do you communicate with the participant that this is happening?

92. Explain the grace or “run out” period after the end of the Plan Year and how the Debit Card works.

93. If a claim exceeds the balance in an account what is the process for funding the claim? Please describe for both health care and dependent care.

94. Does a participant automatically receive a debit card or do they request one? Does the participant have the choice to obtain a debit card?

95. Does a participant receive a debit card every plan year or are existing cards reloaded from year to year?

96. What is the process/adjudication for recurring or multiple transactions?

97. What is the process for non‐substantiated claims?

98. What is your minimum reimbursement claim amount?

99. What is the deadline for substantiated claims submission?

100. How is a participant notified when additional information is needed to process a claim?

101. What is the typical turnaround for reimbursements?

102. If a debit card claim is denied, other than time of transaction, how do you notify the claimant?

103. What appeals process is in place for a participant whose debit card claim transaction is denied?

104. What is the process and timeline for lost or stolen debit cards?

Reporting

105. Explain your reporting capability (Administrator Site with Query tool, canned reports, customized reports, etc.).

106. Please include a copy of standard reports that is provided to the employer as part of the program. What is the report frequency (monthly, weekly, quarterly)?

107. Confirm that you are able to customize reports and this is included in your quoted rate(s).

108. Is there a charge for ad hoc reporting? If so, please provide the cost methodology (e.g., per report, hourly charge, etc) and the average preparation time. (Do not include fees in this section- all costs related information should be provided in the cost proposal.)

109. Can you track and generate enrollment and eligibility reports at least quarterly? Reports should include participants’ balances, annual election amounts and per-pay-period contributions. Reports must be available no later than the end of the calendar month following the end of the quarter.

110. Can you provide reports of paid claims, contributions and expenses available on a monthly basis? How will the Employer know if it was a manual claim or a Debit Card claim?

111. Can you report the end of the year forfeitures by plan type?

112. Are reports available online? What are the download format options (e.g., Excel, PDF, etc)?

Questionnaire

Files

113. Do you have a specific interface file format? If yes, please provide the specifications.

114. How are the files submitted?

115. Do you require separate files for eligibility and participant contributions?

116. How often can you accept an eligibility file to ensure that Debit Cards are turned off in a timely manner?

117. What is required to be reported and the timeframe to ensure claims are processed timely?

118. What process ensures that terminated Participants’ Debit Cards are deactivated?

119. What is the ‘cut off’ time to receive files showing payroll deductions so any claims filed manually are processed by pay day?

Finance and Banking

120. What is the billing frequency?

121. What are your payment terms for administrative services and preferred method?

122. Please provide a sample detailed invoice.

123. Currently, CCAC remits payments via ACH debit and is provided a reconciling report from the vendor on transactions and amounts. Confirm that you are able to accept ACH debit and provide reconciling reporting on a daily frequency or based on claim activity, via secure website/portal.

Customer Service

124. Briefly describe your customer service training program.

125. How do you measure the quality of your customer service?

126. Do you provide a customer service unit with a local or toll-free participant services telephone line to answer questions for CCAC participants? Will this unit be dedicated solely to CCAC? Is the personnel for this unit located in the United States? Is this function outsourced? If so, provide the name of the outsourcer.

127. Please provide an address to the offices that will provide service and administration for CCAC employer representatives? Will a dedicated account manager or team be assigned? Can they be contacted via phone and/or e‐mail? Please list hours of operation and time zone. How are contacts “after hours” of operation handled?

128.

Please provide an address to the offices that will provide service and administration for CCAC participants? If the same as for employer representatives, simply indicate the “same as for employer”. Otherwise, please provide address. Will a dedicated account manager or team be assigned? Can they be contacted via phone and/or e‐mail? Please list hours of operation and time zone. How are contacts “after hours” of operation handled?

129. How many full-time staff members are located at the customer service office proposed for CCAC? How many are dedicated solely to FSA administration?

130. Describe the customer service available to participants.

131. What are your standards for responding to written inquires? Voicemails?

132. Will you contact and communicate directly with claimants as required to resolve problems or to respond to questions?

133. Are there special telephone features for the hearing impaired?

134. Are calls recorded and available for CCAC’s review upon request? If so, how many months will the recordings be made available? Can CCAC employer contact hear a specific call made to your call center if the CCAC staff person can provide a date and approximate time?

135. Describe your interactive voice response system capabilities and web, online capabilities for employers and participants.

136. Are participants and employer contacts able to easily opt out of any interactive voice response to speak to a live customer service person?

137. Describe your organizations participant satisfaction surveys and provide the most recent results.

Questionnaire

138. Confirm that you will acknowledge any and all inquiries and/or complaints from CCAC employer contacts, whether made via phone or email, within 2 business days. Additionally, you will initiate a resolution plan, and when requested, create a corrective action plan, within 3 business days of initial notification.

139. Confirm that 100% of claim inquiries and/or complaints will be acknowledged (return response) within 2 business days, and follow-up of resolution status within 3 business days, if not yet resolved.

140.

If COBRA services is not selected service administrated by vendor, will your organization provide COBRA informational/advising support to CCAC for questions and issues concerning the college’s administration of COBRA? Is there an additional fee? (Do not include fees in this section- all costs related information should be provided in the cost proposal.)

References

RFP No. 3117 –Third Party Administration-Flexible Spending Accounts Submit at least three current customer references (preferably of like size and operational structure as to that of

the college). CCAC is interested in working with a carrier that has experience with and a history of

administrating FSA Services to other higher education industry clients of similar size.

Provide this same information for two (2) recently terminated customers. Include the reason the engagement

was terminated.

Current Customers

Company Name: Contact Person:

Address: Telephone Number:

City, State, Zip: E-mail Address:

Services Provided / Date(s) of Service:

Number of eligible employees/Number of participants:











Terminated Customers






Reason engagement was terminated:






Reason engagement was terminated:

COMMUNITY COLLEGE OF ALLEGHENY COUNTY

800 ALLEGHENY AVENUE, PITTSBURGH PA 15233

Bond Number

P E R F O R M A N C E B O N D

Know all men by these Presents that we “TO BE COMPLETED ONLY BY AWARDEE”

(hereinafter called “Principal”) as Principal, and

authorized to do business in the Commonwealth of Pennsylvania (hereinafter called “Surety”) as Surety, are held and

firmly bound unto the Community College of Allegheny County, through its Board of Trustees,

in the sum of

to be paid to the said College aforesaid, its certain attorney, or assigns. To which payment will and truly be made, said

principal and said surety to bind themselves their respective successors or assigns jointly and severally, firmly by these

presents.

WITNESS our hands and seals, the day of 20 .

WHEREAS the above bounded

has filed with the Community College of Allegheny County, proposals

for the

The Condition of the above Obligation is such that if the said

shall perform

In accordance with the agreement between

and the Community College of Allegheny County of even date herewith and the specifications and proposals attached to

and made part of the agreement, and shall indemnify and save harmless the said Community College of Allegheny

County from all liens, charges, demands, loss and damages of every kind and nature, whatsoever. Then this obligation

to be void, otherwise to be and remain in full force and virtue.

Attest: (SEAL)

CONTRACTOR

(SEAL)

SECRETARY PRESIDENT

Signed, Sealed and delivered in presence of (SEAL)

SURETY COMPANY

_________________________________ ________________________________

MASTER SERVICES AGREEMENT (AWARDEE ONLY)

RFP 3117 – Administration of Flexible Spending Accounts (TPA)

THIS MASTER SERVICES AGREEMENT ("Agreement") is made and entered into as of this day of ,

by and between Community College of Allegheny County, with a business office located at 800 Allegheny

Avenue, Pittsburgh, PA 15233 (hereinafter referred to as the “College”), and Phoenix Roofing Inc. (hereinafter

referred to as “Contractor”).

RECITALS

WHEREAS, the College has issued a Request for Quotation, Bid Solicitation, Request for Proposal, and/or

a Purchase Order (hereinafter individually and collectively referred to as the “Order”), pursuant to

RFP 3117

Administration of Flexible Spending Accounts (TPA)

which College seeks to procure certain work and services, as more fully described on the Order; and

WHEREAS, Contractor has submitted a proposal to the College to provide the services described in the

Order, a copy of which is attached hereto as Exhibit A (hereinafter the “Proposal”) and incorporated by reference;

WHEREAS, the College desires to engage Contractor to provide the services, pursuant to and in accordance

with the terms and conditions that this Agreement set forth herein.

NOW, THEREFORE, in consideration of the premises and covenants that this Agreement contains, the

receipt and adequacy of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

1. Term. The term of this Agreement shall be as specified in the Order unless otherwise stated in the

section below. If no date is specified, this Agreement shall begin with the date first stated above and terminate

upon satisfactory completion of the services described herein.

2. Services. Contractor shall fully and faithfully perform the work and services described in the Order

and the Proposal and any specifications, scope of work or other documentation attached thereto. Contractor

warrants that all work and services performed by or on behalf of it under this Agreement will conform to all terms

and specifications set forth in the Order and in the Proposal.

3. Price/Fees: The College shall pay Contractor for the services and work performed by Contractor in

accordance with the fees and/or prices set forth in the Proposal.

4. Terms and Conditions: This Agreement, and the services to be performed by Contractor

hereunder, will be subject to and governed by College’s Standard Terms and Conditions for the Purchase of Goods

and Services (“Master Terms”), which are incorporated herein by reference. The Master Terms can be viewed and

downloaded at https://www.ccac.edu/Terms_and_Conditions.aspx. By signing below, Contractor

acknowledges its receipt and acceptance of the Master Terms.

5. Insurance Requirements: In addition to the Master Terms, Contractor shall comply with the

insurance and indemnification requirements set forth on Exhibit B, which are incorporated herein by reference.

Prior to commencing performance of the Services, Contractor shall furnish to the College a properly executed

certificate(s) of insurance which evidence all insurance required by Exhibit B. Said certificate(s) of insurance shall

be attached herein as Exhibit C.

6. Assignment. Contractor may not assign or subcontract this Agreement or its performance thereof,

in whole or in part, without the College’s prior written consent.

https://www.ccac.edu/Terms_and_Conditions.aspx

7. Entire Agreement; Modification. This Agreement, together with the Exhibits and other documents

referenced and incorporated herein, sets forth the entire agreement of the parties on the subject matter hereof and

supersedes all previous or concurrent agreements between them, whether oral or written. Any proposal, quotation,

acknowledgment, confirmation or other writing submitted by Contractor to the College shall not be deemed to amend

or modify this Agreement, and will be of no legal effect except to the extent that it serves to identify the work and

services to be performed by the Contractor. This Agreement, and the terms set forth in the Master Terms, will control

over any conflicting terms or provisions contained in any proposal, invoice or other documentation submitted by

Contractor to College. The terms of this Agreement may not be modified or changed except by a writing that both

parties sign. This Agreement shall inure to the benefit of the College and Contractor and the College’s successors

and assigns.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above

written.

By: __________________________

Signature: __________________________

Title: __________________________

Date: ___________________________

COMMUNITY COLLEGE

OF ALLEGHENY COUNTY

By: Joyce Breckenridge

Signature: _______________________________

Title: Vice President for Finance

Date: _____________________________

EXHIBITS - The following Exhibits are attached hereto and made a part of this Agreement for all purposes:

* Exhibit A - Contractor’s Proposal Response

* Exhibit B - Insurance Requirements

* Exhibit C - Contractor’s Certificate(s) of Insurance.

* Exhibit D – Performance Bond

Documents

Administration of Flexible Spending Accounts