RFP 902768 Third-Party Administrator Services for Flexible Spending Accounts and Commuter Benefits

It is the intent of these specifications, terms, and conditions to describe Third-Party Administrator Services for the County’s Flexible Spending Accounts and Commuter Benefits program being requested by the County.

The County intends to award a three-year contract (with the option to renew for two years) to the Bidder(s) selected as the most responsive and responsible Bidder(s) whose response(s) conform to the RFP and meet the County’s requirements.

Bidders may submit proposals for:

• Flexible Spending Account (FSA) Administration Services only;
• Commuter Benefits Administration Services only; or
• Both FSA and Commuter Benefits Administration Services as a bundled solution.

Bidders submitting proposals for only one service category must complete and submit the corresponding pricing table for that category. Bidders submitting proposals for both service categories must complete and submit the FSA pricing table, the Commuter Benefits pricing table, and the bundled FSA and Commuter Benefits pricing table.

The County reserves the right, at its sole discretion, to:

• Award separate contracts for FSA Administration Services and Commuter Benefits Administration Services to different Bidders based on the highest-ranked proposal for each respective category; or
• Award a single contract for bundled FSA and Commuter Benefits Administration Services to the highest-ranked Bidder under the bundled proposal category.

Proposals will be evaluated separately according to the service category or categories for which the Bidder submits a proposal. FSA-only proposals will be evaluated against other FSA proposals; Commuter Benefits-only proposals will be evaluated against other Commuter Benefits proposals; and bundled FSA and Commuter Benefits proposals will be evaluated as a separate category. Final award determination will be made in the best interest of the County.

Background

Alameda County Human Resources Services – Employee Benefits Center (HRS–EBC) is seeking a qualified Third-Party Administrator (TPA) to provide comprehensive administration of FSA and Commuter Benefits. The solution must include an integrated debit card for accessing funds, a secure online portal for account management, high-quality customer service, and effective communication and marketing materials that support employees in making informed benefit decisions.

HRS–EBC seeks to leverage the TPA’s administrative platform, reporting tools, and account management capabilities to align with and support the County’s existing FSA and Commuter Benefits Program and processes.

The selected TPA will provide complete administrative and claims services for all types of Flexible Spending Accounts and Commuter Benefits offered by the County. The TPA must demonstrate a proven and reliable process for contribution reconciliation, claims adjudication, and financial reporting. The TPA must also have the ability to interface and coordinate effectively with applicable County systems and departments.

At a minimum, the TPA will provide the following services:

• Claims Administration – End-to-end processing, adjudication, and reimbursement of all eligible FSA and commuter claims in compliance with applicable regulations.
• Web-Based Platform – A secure, user-friendly online portal and mobile access for account inquiries, claims submission, and real-time status tracking. For Commuter Benefits, the platform must also allow employee enrollment, changes and terminations.  For FSA, the platform must be able to track employee and employer funding separately.
• Debit Card Solution – A customized, compliant debit card program that enables participants to access FSA and commuter funds at point of sale.
• Customer Service – A dedicated toll-free (800) number with knowledgeable representatives and defined service level standards.
• Communications and Materials – Dual-branded, clear, and compliant communication materials, including enrollment guides and educational content.
• Account Management – A dedicated account management team responsible for implementation, ongoing support, and performance management.
• Reporting and Analytics – Robust, customizable reporting capabilities, including standard and ad hoc reports to support program oversight, compliance, and decision-making.

The County of Alameda is the sixth-largest county in California, employing approximately 9,771 employees, of whom approximately 9,288 are benefits-eligible. The County serves a population of approximately 1.6 million residents across 738 square miles and includes 14 cities, including Oakland, Berkeley, Hayward, Fremont, Livermore, and Pleasanton. The western portion of the County is primarily urban, while the eastern region is more suburban and light industrial. The County’s population is diverse in terms of race, ethnicity, religion, and socio-economic background.

Major County departments include, but are not limited to, the Alameda County Sheriff’s Office, General Services Agency, Human Resource Services Department, Information Technology Department, Public Works Agency, Registrar of Voters, Health Care Services Agency, Child Support Services Department, Social Services Agency, Probation Department, and Public Defender.

The EBC within the Human Resource Services Department administers employee benefits programs and currently provides benefit information through an internal online intranet site. The County utilizes PeopleSoft/Oracle as its Human Resources Information System (HRIS) platform.

The County offers a comprehensive benefits program, including pre-tax benefits under Internal Revenue Code Sections 125, 132, and 137. These benefits include medical, dental, vision, voluntary employee life insurance, voluntary accidental death and dismemberment insurance, FSA, and Commuter Benefits. The historical and current employee enrollment in the FSA and Commuter Benefits are as follows:

FSA are offered through payroll deductions under IRS Code Section 125 and include Health Care, Dependent Care, and Adoption Assistance accounts for eligible expenses. Current annual employee contribution limits are up to $3,300 for Health Care FSA, $7,500 for Dependent Care FSA, and $6,000 for Adoption Assistance FSA, subject to change based on IRS regulations.

The County also provides an employer credit (“County Allowance”) that employees may apply toward eligible pre-tax benefits. In accordance with IRS Notice 2013-54, any remaining allowance may be applied to a Health Care FSA in most cases. Certain employee groups may allocate contributions across multiple FSA types based on eligibility. Any unused employer credit amounts are cashed out to employees on a bi-monthly per pay period basis. The County operates on a 26-pay-period calendar; however, benefit deductions and cash-outs are based on 24 pay periods.

In addition, the County offers a Commuter Benefits Program via payroll deductions under IRS Code Section 132(f), as amended by Section 910, PL105-78, for qualified mass transportation, parking, and vanpooling expenses. This allows employees to elect pre-tax payroll deductions for qualified transportation expenses. Current limits allow up to $340 per month for transit and vanpooling expenses, $340 per month for qualified parking, or up to $680 per month for combined parking and transit expenses. Both amounts are subject to change.

Qualified mass transportation expenses can be reimbursed using debit cards, prepaid cards, vouchers, tokens, fare cards, or any items entitling a person to transportation on a mass transit facility such as (but not limited to) BART, MUNI, and AC Transit.

Qualified parking expenses are the costs for parking on or near a County business premises or at a location from which the employee commutes by car, bus, or train.

Qualified vanpooling is done in a “commuter highway vehicle,” defined as a vehicle with a seating capacity of six or more adults (not including the driver), and at least 80% of the annual mileage is for transporting employees between their residence and employer. Typically, there is a fee for using a vanpool service. The fee is a reimbursable commuting expense.

ConnectYourCare is the current administrator for the County’s FSA program, including Health Care FSA, Dependent Care Assistance Program, and Adoption Assistance accounts. WEX, Inc. is the current administrator for the County’s Commuter Benefits program, including Parking Program and Transit Program. The Contractor(s) will be expected to coordinate with the County and the incumbent vendors as necessary to support implementation and transition activities.

Project Details

• Reference ID: 902768
• Department: General Services Agency-Procurement
• Department Head: Detra Dillon (Purchasing Administrator)

Important Dates

• Questions Due: 2026-07-01T00:00:00.000Z
• Pre-Proposal Meeting: 2026-06-29T16:00:00.000Z — Online Teams Meeting - https://teams.microsoft.com/meet/27472108075470?p=WUTpnEBRluYsfh9O2R

Evaluation Criteria

• Completeness of Response (1 pts) —

  Responses to this solicitation must be complete.  Responses must address all the requirements identified within this solicitation and all related documents, including any Addenda. Failure to meet the Bidder Minimum Qualifications may also be considered an incomplete response and may result in the disqualification of the Bidder.

• Debarment and Suspension (1 pts) —

  Bidders, its principal, and named subcontractors are not identified on the list of Federally debarred, suspended, or other excluded parties located at www.sam.gov/SAM.

• Cost (100 pts) —

  The points for Cost will be computed by dividing the amount of the lowest responsive and responsible bid received by each Bidder’s total proposed cost.

  Cost evaluation points may be adjusted by considering:

  1. Reasonableness (i.e., how well does the proposed pricing accurately reflect the Bidder’s effort to meet requirements and objectives?).
  2. Realism (i.e., is the proposed cost appropriate to the nature of the products and/or services to be provided?).
• Description of Proposed Services and Customer Service (75 pts) —

  Proposals will be evaluated considering the RFP specifications, Bidder’s response submitted in the corresponding section of Exhibit A – Bid Response Packet, and the questions below:

   

  1. How effective is Bidder’s account management services in supporting the County’s FSA and/or Commuter Benefits Program?
  2. How responsive is Bidder’s customer service model, including availability of toll-free support and service level standards?
  3. How comprehensive are Bidder’s communication and support services, including training, marketing materials, and participation in County events?
  4. How capable are Bidder’s services for providing timely research, issue resolution, and ongoing support to HRS/EBC staff? 
• Description of Technical Solution and System Capabilities (75 pts) —

  Proposals will be evaluated considering the RFP specifications, Bidder’s response submitted in the corresponding section of Exhibit A – Bid Response Packet, and the questions below:

   

  1. How functional is Bidder’s proposed system, including the web-based platform, participant portal, and reporting tools?
  2. How effective is Bidder’s debit/credit solution for accessing FSA and/or commuter benefits?
  3. How secure is Bidder’s system, including compliance with HIPAA and data protection requirements?
  4. How compatible is Bidder’s system with the County’s PeopleSoft/Oracle HRIS and file transmission requirements? 
• Description of Administration and Operational Approach & Relevant Experience (125 pts) —

  Proposals will be evaluated considering the RFP specifications, Bidder’s response submitted in the corresponding section of Exhibit A – Bid Response Packet, and the questions below:

  1. How effective is Bidder’s approach to claims processing, including adjudication, timeliness, and reimbursement methods?
  2. How reliable is Bidder’s approach to enrollment processing, account maintenance, and participant account management?
  3. How accurate is Bidder’s approach to contribution processing, reconciliation, and funding of participant accounts?
  4. How feasible is Bidder’s transition and implementation plan to ensure continuity of services within the required timeframe?
  5. How compliant is Bidder’s approach to administering services in accordance with applicable laws and Internal Revenue Code requirements?
  6. How relevant is Bidder’s experience in administering FSA and/or Commuter Benefits program of similar size and complexity?
• Reporting, Compliance, and Program Management (75 pts) —

  Proposals will be evaluated considering the RFP specifications, Bidder’s response submitted in the corresponding section of Exhibit A – Bid Response Packet, and the questions below:

  1. How comprehensive is Bidder’s reporting capability, including standard, ad hoc, and participant-level reporting?
  2. How effective is Bidder’s approach to reconciliation, data analysis, and program performance monitoring?
  3. How proactive is Bidder’s approach in identifying cost savings and program improvements?
  4. How responsive is Bidder’s approach to regulatory compliance, including updates and impact analysis of legislative changes?
• Reference (50 pts)
• Small Local Emerging Business Preference (ADMIN SCORING) (25 pts) —

  Points equaling 5% of the Bidder’s total score for the above Evaluation Criteria will be added.  This will be the Bidder’s final score for purposes of award evaluation.

• Local Preference (ADMIN SCORING) (25 pts) —

  Points equaling 5% of the Bidder’s total score for the above Evaluation Criteria will be added.  This will be the Bidder’s final score for purposes of award evaluation.

Submission Requirements

• Submit Bid Response and Bid Form(s) (required) —

  Please confirm that both your response and the Bid Form(s) have been uploaded here.

• Submit Bid Response (required) —

  Please confirm that your response has been uploaded here.

• Has your response addressed all the requirements identified within the solicitation and all related documents, including any addenda? Failure to meet the Bidder Minimum Qualifications may also be considered an incomplete response and may result in the disqualification of your bid. (required)
• Your company, its principal, and named subcontractors are not identified on the list of Federally debarred, suspended, or other excluded parties located at www.sam.gov/SAM. (required)
• I certify that I have read, understood and agree to the terms in this solicitation, and that I am authorized to submit this response on behalf of my company. (required)
• Pricing (required) —
  • Choose Option 1 when you have set line items, for example:
    • This is a quote for goods or commodities.
    • This is a public works bid, with a pricing table that can be uploaded into OpenGov Procurement from an Excel spreadsheet.
    • Seeking services for hourly rate schedules.
  • Choose Option 2 when you need vendors to provide you with the line items. 
• Evaluation Committee? (required) —

  Will there be an evaluation committee to review the proposals and score them based on weights and multiple criteria?

• Procurement and/or Project Contact (required) —

  Select the information you would like display.