1. Revision to Profession Services Contract in Exhibit F

Transcription

1 REQUEST FOR PROPOSALS ADMINISTRATION OF FLEXIBLE SPENDING ACCOUNT (FSA) AND HEALTH REIMBURSEMENT ARRANGEMENT (HRA) SERVICES FOR THE LOS ANGELES COMMUNITY COLLEGE DISTRICT RFP Number: Addendum Number: 2 Date: May 23, 2018 LOS ANGELES COMMUNITY COLLEGE DISTRICT Contracts Office 770 Wilshire Boulevard, 6 th Floor Los Angeles, California NOTICE TO PROPOSERS: THIS ADDENDUM SHALL BECOME PART OF THE RFP, AND PROPOSERS SHALL ACKNOWLEDGE, IN WRITING, RECEIPT AND INCORPORATION OF ALL ADDENDA AND CLARIFICATIONS IN THEIR RESPONSE. FAILURE OF THE PROPOSER TO RECEIVE ADDENDA SHALL NOT RELIEVE THE PROPOSER FROM ANY OBLIGATION UNDER ITS PROPOSAL AS SUBMITTED. THE PROPOSER SHALL IDENTIFY AND LIST IN ITS PROPOSAL ALL ADDENDA RECEIVED AND INCLUDED IN ITS PROPOSAL; FAILURE TO DO SO MAY BE ASSERTED BY THE DISTRICT AS A BASIS FOR DETERMINING THE PROPOSAL NON- RESPONSIVE. 1. Revision to Profession Services Contract in Exhibit F The addendum shall delete in its entirety Exhibit F: Professional Services Agreement and replace with ADDENDUM 2: ATTACHMENT 1: PROFESSIONAL AND SPECIALIALIZED SERVICES AGREEMENT. 2. New Requirements: (a) Data Privacy. Contractor will use the District Data and End User Data for the purpose of fulfilling its duties under this Agreement and for District s and its End User s sole benefit, and will not share such Data with or disclose it to any Third party without the prior written consent of District or as otherwise required by law. Specifically, Contractor shall not use such Data for Contractor s own benefit and, in particular, will not engage in data mining of the District and End User Data Page 1 of 12

2 or communications, whether through automated or human means, except as specifically and express required by law or authorized in writing by District. All District and End User Data shall be stored on servers located solely within the Continental United States. (b) Data Security and Integrity. All facilities used to store and process District and End User Data will implement and maintain administrative, physical, technical, and procedural safeguards and best practices at a level sufficient to secure such Data from unauthorized access, destruction, use, modification, or disclosure. Such measures will be no less protective than those used to secure Contractor s own Data of a similar type, and in no event less than reasonable in view of the type and nature of Data involved. Contractor shall at all times use industry-standard and up to date security tools, technologies and procedures, including, but not limited to anti-virus and anti-malware protections and intrusion detection and reporting methods in providing services to this Agreement. When required by District, Contractor warrants that all District Data and End User Data will be encrypted in transmission (including via web interface) and in storage at a level equivalent to or stronger than requested by District. (c) Data Audits. Contractor will at its own expense conduct at least once a year and immediately after any actual or reasonably suspected Data Compromise the following: An audit of Contractor s security policies, procedures and controls; formal review of adherence to all acceptable standards for certification of cloud computing services, perform a vulnerability scan, performed by a District-approved Third party scanner, of Contractor s systems and facilities used in any way to deliver Services under this Agreement or perform a formal penetration test, in a manner approved by District, of Contractor s systems and facilities that are used in any way to deliver Services under this Agreement. Contractor will provide District with reports or other documentation resulting from these audits, certifications, scans or tests within seven (7) business days of Contractor s receipt of such results. Based on the results of the above audits, certifications, scans and tests, Contractor will, within thirty (30) calendar days or receipt of such results, promptly modify its security measures in order to meet its obligations under this Agreement, and provide District with written evidence of remediation. (d) Requests for Data. Except as otherwise expressly prohibited by law. Contractor will: (1) if required by a court of competent jurisdictions or an administrative body to disclose District and/or End User Data, Contractor will notify District in writing immediately upon receiving notice of such requirement and prior to any disclosure; (2) consult with District regarding its response; (3) cooperate with District s reasonable requests in connection with efforts by District to intervene, Page 2 of 12

3 quash or modify legal, order, demand, or request; and (4) upon District s request, provide District with a copy of its response. If District receives a subpoena, warrant, or other legal order, demand or request seeking District or End User Data maintained by Contractor, District will promptly provide a copy to Contractor. Contractor will supply District with copies of Data required for District to respond within seventy-two 72 hours after receipt of copy from District, and will cooperate with District s reasonable requests in connection with its response. (e) Data Compromise. Contractor shall report, either orally or in writing, to District any Data Compromise involving District or End User Data, or circumstances that could have resulted in unauthorized access to or disclosure or use of District or End User Data, not authorized by this Agreement or in writing by District, including any reasonable belief that an unauthorized individual has accessed District or End User Data. Supplier shall make the report to District immediately upon discovery of the unauthorized disclosure, but in no event more than forty-eight (48) hours after Contractor reasonably believes there has been such unauthorized use or disclosure. Oral reports by Contractor regarding Data Compromises will be reduced to writing and supplied to District as soon as reasonably practicable, but in no event more than forty-eight (48) hours after oral report. Immediately upon becoming aware of any such Data Compromise, Contractor shall fully investigate the circumstances, extent and causes of the Data Compromise, and report the results to District and continue to keep District informed on a daily basis of the progress of its investigation until the issue has been effectively resolved. Contractor s report discussed herein shall identify the nature of the unauthorized use or disclosure; the type of Data used or disclosed; who made the unauthorized use or received the unauthorized disclosure; and what corrective action Contractor has taken to prevent a similar unauthorized use or disclosure. Within five (5) calendar days of the date Contractor becomes aware of any such Data Compromise, Contractor shall have completed implementation of corrective actions to remedy the Data Compromise, restore District access to the Services as directed by District, and prevent further similar unauthorized use or disclosure. Contractor, at its expense, shall cooperate fully with District s investigation of and response to any such Data Compromise incident. Page 3 of 12

4 Except as otherwise required by law, Contractor will not provide notice of the incident directly to the persons whose Data were involved, regulatory agencies, or other entities, without written permission form District. Notwithstanding any other provision of this Agreement, and in addition to any other remedies available to District under law or equity, Contractor will promptly reimburse District in full for all costs incurred by District in any investigation, remediation, or litigation resulting from any such Data Compromise, including but not limited to providing notification to Third parties whose Data were compromised and to regulatory bodies, law-enforcement agencies or other entities as required by law or contract; and/or identity restoration services to assist each person impacted by a Data Compromise; the payment of legal fees and expenses, audit costs, fines and penalties and other fees imposed by regulatory agencies or courts of law as a result of the Data Compromise. (f) Data Retention and Disposal. Contractor will use appropriate and reliable storage media, Contractor will regularly backup District and End User Data and retain such backup copies for a minimum of twelve (12) months after this Agreement has ended. At the District s request, Contractor will either securely destroy or transmit all data to a District repository any backup copies of District and/or End User Data. Contractor will supply District a certificate indicating data records disposed of, date of disposal, and method used in its disposition. Contractor shall retain logs associated with End User activity for a minimum of twelve (12) months. Contractor will immediately place a legal hold on Data destruction or disposal under its usual records retention policies of records that include District and End User Data, in response to an oral or written request from District indicating that those records may be relevant to litigation that District reasonable anticipates. Oral requests by District for a hold on record destruction will be reduced to writing and supplied to Contractor for its records as soon as reasonably practicable under the circumstances. District will promptly coordinate with Contractor regarding the preservation and disposition of these records. Contractor shall continue to preserve the records until further notice by District. (g) Data Transfer upon Termination or Expiration of Agreement. Upon termination or expiration of this Agreement, Contractor will ensure that all District and End User Data are securely transferred to District, or a Third party designated by District, within thirty (30) calendar days, and in a manner further specified by District. Page 4 of 12

5 3. Answers to Questions: # Questions Answers 1 2 How many employees are currently enrolled in the FSA and HRA plans? What is the current average HRA account balance? Can the District confirm if additional annual HRA contributions have been negotiated after 12/31/2016? The number of HRA accounts varies from year to year, depending on the number of fulltime employees - for example in 2016 the District had 4,023 total HRA accounts; in 2015 the District had 3,986 total HRA accounts; in 2014, the District had a total of 3,935 HRA accounts; and in 2013, the District had 3,955 total HRA accounts. A small number of accounts are for early retirees (less than age 65); and a portion of the total are for retirees who have ongoing account management for unused HRA funds remaining in their accounts. The District renegotiated the HRA for three years: 2018, 2019 and The HRA is for $1,500 for each year. Page 5 of 12

6 3 4 5 Does the District currently hold the $10.9 million in HRA funds in a Trust account? Does the District provide a means where employees can invest the funds held in their HRA account until exhausted? Would the District be interested in a Plan offering which provided an HRA account with investment features? What is the current total number of benefit eligible employees with the District? The HRA funds are funded yearly, they are not held in trust. The funds are held in a bank account owned by LACCD. * For FSA the funds are sent monthly to the administrator from the payroll collections except for July and August. For HRA we send monthly to cover checks, validated claims and card spends. Current administrator pays claims on FSA and HRA within 3 days of validation of claim. For FSA the funds are sent monthly to the administrator from the payroll collections except for July and August. For HRA we send monthly to cover checks, validated claims and card spends. No Because the balances are kept by BOTH calendar year and then by individual there are approximately 2900 with balances, some individuals have never used any of their HRA balances and presently have a balance of $7,500. We typically budget about $6 million a year ($5.5M to actives and $500,000 to retirees). Below are listed the HRA balances that presently must be maintained by a vendor $ balances for 2010 $761,041 For 2011 $1,321,172 For 2012 $2.0 million For 2013 $2.9 million For 2014 $4.3 Million (as of June 30, 2014). List individuals # given HRA in 2010 (4018) 2011 (4030), 2012 (3998), 2013 (3954), and 2014 (3928) Page 6 of 12

7 Can the District confirm the number of new hires and terminations in the prior year? How many employees are currently enrolled in COBRA/California AB 528 Program with the District? What is the current administration fee for the FSA, HRA, COBRA Services. Are there any ancillary fees that you pay, such as costs for mailed statements, benefit packets? Does the District pay the cost the FSA and HRA plans on behalf of District employees? Who is the current administrator for the District s FSA, HRA, COBRA Services? How long has the current administrator provided services to the District? Why has the District decided to bid these services now (fees, service issues, standard due diligence, etc.)? a. Is the claims technology adequate for the District and participants? Total new hires for : Total separations: 2,815. Total employees enrolled in COBRA AB 528: 101 Currently, the District pays $2.65 pp/pm administrative fee inclusive of all costs. However, please note that proposals will NOT be scored in comparison to the current contract but will be scored against each other. Proposers are strongly encouraged to submit their best pricing irrespective of what the current rates are. Wageworks Wageworks has been LACCD's provider since January 1, 2018 when they assumed the contract from ADP. The LACCD is required by its Board of Trustees to perform a formal and public procurement for these services for each new contract over the statuary bid threshold. Since California Educational Code limits contracts to a maximum term length of five (5) years, this process occurs every 5 years. The District declines to answer. Vendors are requested to provide their best proposal given the information provided. Page 7 of 12

8 b. Are there service level concerns with the current administrator? c. If no service issues, what would be the catalyst for the District to change administrators? What amenities or service features do you like about the current FSA, HRA, COBRA administrator? Are there particular features or processes the District is seeking in the chosen vendor? ADP is the current TPA on a one year contract meant to bridge the gap between the ends of the contract from the last time this service went out to bid (2009) until a new five year agreement can be finalized with the highest scoring bidder of this RFP. The awarded bidder of the last RFP was SHPS which was subsequently acquired by ADP during the period of the contract. The current contract does not have any guarantees and the current TPA has performed satisfactorily. The fact that the District is in no way meant to infer any failure on the part of the current TPA and is a result of the District's policy of bidding out services of this contract value when that have reached the statutory limit of five years per the Educational Code of California. This RFP is the result of a great deal of analysis of the needs of the District and does not imply that the current TPA actually provided any of the services specified therein nor does the current fee structure have any weight or bearing on the requirements of the RFP. In fact, the District is looking for a very different fee structure than the existing system. The LACCD is required by its Board of Trustees to perform a formal and public procurement for these services for each new contract over the statuary bid threshold. Since California Educational Code limits contracts to a maximum term length of five (5) years, this process occurs every 5 years. a. Regular communication with account manager and LACCD b. Clear written communication to employees c. Billing information that details the flat rate per participant each month a. Regular communication with account manager and LACCD b. Clear written communication to employees c. Billing information that details the flat rate per participant each month Page 8 of 12

9 Does the District work with a benefits consultant or broker? If so, who (name, company). Is the District intending for the administrator to work with the consultant/broker? Does the current administrator provide the District with a dedicated account team to work with for onboarding and plan administration? Does the current administrator provide the District with a hold harmless agreement for all plan services? Can the District provide additional information regarding ad hoc reporting which may be requested by the District? What is the current number of and timing of ad hoc reports being provided by the current administrator? Was a decision made to extend HRA funding beyond the agreement referenced in the RFP which expired on 12/31/2016? Will the contract awardee be expected to just administer the remaining HRA funds balances, or will that provider also be expected to administer a new funding program as well? LACCD declines to respond to this question LACCD declines to respond to this question LACCD declines to respond to this question The District would like to keep metrics regarding number of participants, number of eligible per calendar or fiscal year, the total aggregate usage of the HRA by year and month, types of categories of use (co-payments, medication, etc.) and usage by employee bargaining group. In addition, the district would like metrics on the overall COBRA administration. The District renegotiated the HRA for three years: 2018, 2019 and The HRA is for $1,500 for each year. There is no guaranteed funding beyond Yes, the District will provide the vendor with an electronic file showing remaining balance for each participant, included Active, early retiree, or retiree. Page 9 of 12

10 Please provide the number of participants in the FSA program (Healthcare and Dependent Care) DCFSA: 71; HCFSA: 338 Enrollment as of January 2018 would be appreciated! Please provide the number of participants in the HRA program Enrollment as of January 2018 would be appreciated Approximately 4,500 How many participants are currently 101 paying into COBRA? How many participants on average access COBRA benefits annually? How many participants are currently accessing healthcare through AB 528? How many participants on average utilize Check Remittance (annually)? 30 Participants Page 10 of 12

11 On the document titled LACCD DM0296_RFP_18-02_Notice_Posted, the due date for the RFP is no later than 2:00 p.m. Pacific Time on May 19, However, on the document titled LACCD DMO0295_RFP_18-02_HRA-FSA_3rd Party Administration-Final, the due date for the RFP is listed as Thursday, May 24, 2018 by 2p.m. Pacific Time. Please confirm the correct due date for the proposal? The 19th or 24th? Is the LACCD considering combining previous year s balances to reflect one account with all HRA dollars? Who is the current COBRA and Direct Bill vendor for the LACCD? What is Los Angeles Community College District s (LACCD s) payroll frequency (monthly, bi-weekly, semimonthly, etc)? Whether companies from Outside USA can apply for this? (like, from India or Canada) Whether we need to come over there for meetings? As per addendum 1, the due date is now June 7, 2018 by 2p.m. Pacific Time. Separation is required from the district end, not user end. This is for data reporting purposes. However, all balances must be available to the employee and those can be combined for the employee to determine their HRA balance. Health Benefits--LACCD Depending on the type of employee either bi-monthly or monthly. Most employees are on monthly. Please see added requirements listed above. No face-to-face participant account reviews are required. It would be highly desirable if a representative could be available for up to 4 educational sessions a year (at 3 regional workshops and a 4th for another Benefits conference typically held annually). Page 11 of 12

12 34 35 Can we perform the tasks (related to RFP) outside USA? (like, from India or Canada) Can we submit the proposals via ? Please see added requirements listed above. No. Proper submittal is described in full in the RFP document. Any deviancy from the process described in the document will result in nonconsideration of such proposal at the District's sole discretion. End of addendum 2 Page 12 of 12