In accordance with Sections 5-141e, 5-264b and 5-264d of the Connecticut General Statutes, the OSC is charged with the responsibility for establishing and maintaining an FSA Program for its DCAP, Transportation Fringe Benefit and Health Care Flexible Spending Account Programs for state employees pursuant to Sections 132, 129, 105 and 125 of the Internal Revenue Code of 1986 and the regulations promulgated thereunder. The purpose of the FSA Program is to make available tax savings for eligible dependent care expenses, eligible transportation and parking expenses and eligible medical expenses not covered by the State health insurance program.

Under the FSA Program, the Comptroller or program administrator upon receipt of the written request of the employee will establish and maintain a flexible spending account in accordance with an employee's election of any of the programs offered under the FSA Program. The Comptroller will reduce the salary of such employees by the amount designated in such requests. Such amounts will be transferred to the employee?s flexible spending account and will be used to reimburse the employee?s eligible flexible spending expenses in accordance with the provisions of Sections 132, 129, 105 and 125 of the Internal Revenue Code and the regulations promulgated thereunder.

The OSC will utilize the services of the contractor to provide setup, administration and management of the FSA Program pursuant to Sections 132, 129, 105 & 125 of the Internal Revenue Code and the regulations promulgated thereunder. Start up of the FSA Program is expected to begin January 1, 2006 depending on the outcome of the implementation timeline. Employee participation in the FSA Program is entirely voluntary. Employees electing to participate with the FSA Program will bear the entire cost; no employer contribution is contemplated. The selected administrator will report to the Retirement & Benefit Services Division, Employee Benefits Unit.

The contractor is expected to respond to the following requirements: 

1. Establishing an FSA Program pursuant to Sections 132, 129, 105 & 125 of the Internal Revenue Code and the regulations promulgated thereunder including the development of enrollment and processing procedures.
2. Processing and development of enrollment applications pursuant to Sections 132, 129, 105 & 125 of the Internal Revenue Code and the regulations promulgated thereunder.
3. Processing of all claim reimbursements pursuant to Sections 132, 129, 105 & 125 of the Internal Revenue Code and the regulations promulgated thereunder.
4. Responding promptly and accurately to all claim inquiries.
5. Establishing and carrying out marketing of the FSA Program.
6. Operating a State specific toll free hotline during open enrollment period and throughout plan year.
7. Mailing enrollment material during open enrollment period and throughout plan year.
8. Establishing a direct deposit system for participant deposits and reimbursements.
9. Providing participants with a reporting system that allows the production of weekly account statements including but not limited to account balance, account deposits, account claims total, account remaining election totals.
10. Provide the State with necessary reporting including, but not limited to, annual forfeiture reporting.
11. Developing and distributing a Plan Document.
12. Conduct Discrimination Testing.
13. Conform to and process current and future federal/state reporting requirements.
14. Transfer of information to and from State of Connecticut Core-CT PeopleSoft system.
15. Advise the State on resolution of matters of claim disputes pursuant to Sections 132, 129, 105 & 125 of the Internal Revenue Code and the regulations promulgated thereunder.
16. Development of State specific FSA program web site.

 The State of Connecticut currently employs approximately 60,000 state employees of which approximately 50,000 would be eligible for the FSA Program. The DCAP currently has approximately 800 participants. The Transportation Fringe Benefit Program currently has approximately 100 participants. It is unknown at this time what the level of participation will be for the Health Care Flexible Spending Account.

VI. PROPOSAL SUBMISSION REQUIREMENTS

1. A letter of intent is required. The purpose of this letter is to indicate the contractor?s intention to respond to this RFP. This letter of intent must be received at the offices of the Retirement & Benefit Services Division by 4:30 pm on November 4, 2005. Proposals will not be accepted if this requirement is not met.
    

In this letter the contractor must provide an email address for the communication of information about the RFP. As indicated below contractors may submit questions regarding this RFP by email. Answers to questions submitted as well as other information related to the contractor selection process will be provided to contractors at the email address provided in the letter of intent. 

2. The Contractor shall submit an original plus ten (10) copies of its proposal in loose-leaf binders. Proposals shall be submitted to:

STATE OF CONNECTICUT
Office of the State Comptroller
Attention: Araceli Alvarez
Associate Retirement & Benefits Officer
Retirement & Benefit Services Division
55 Elm Street
Hartford, CT 06106 

3. Contractors who may have questions regarding the proposal must submit them in writing addressed to the VAC at: osc.fsaprgm@po.state.ct.us by November 7, 2005. It is expected that the VAC will provide responses to those questions submitted by the deadline date by November 10, 2005. No phone calls will be accepted relative to this RFP.
   
4. Final proposals must be in writing and received before the close of business, 4:30 p.m., November 21, 2005.
   
5. Proposal should include the following:

• Title Page

The title page should indicate the date, subject, name of the contractor, address, telephone number, name and title of contractor?s contact person.

• Offices

A description of the office that would support the State?s activities, including its geographic location, staffing level, the background, experience, and qualifications of personnel, as well as other available resources.

• Experience

A description of your experience specific to the services requested in this RFP. List all other Government Agencies, Corporations, and Organizations that you have provided these services for in the past two (2) years. The profile should not exceed four (4) pages.

• References

Names, addresses, and phone numbers of individuals who can serve as references for the contractor should be provided. References should be contract managers who have worked directly with the respondent in engagements relevant to the scope of work proposed in this contract.

• Work Samples

Samples of reports, policy and procedural recommendations, memoranda, etc., from previous consulting engagements relevant to the scope of work proposed in this contract may be attached to the proposal. It is only necessary to submit one copy of each sample for consideration.

• Budget

The contractor will submit a detailed line item budget with narrative for each of the four (4) years. The budget should include all personnel and non-personnel costs associated with the implementation and ongoing operations under this contract.

The State of Connecticut is not responsible for any costs incurred by any party in responding to this RFP.

• Affirmative Action

The Proposal must include a summary of the contractor?s experience with Affirmative Action. This information is to include a summary of the contractor?s affirmative action plan and the contractor?s affirmative action policy statement.
Regulations of Connecticut State Agencies Section 46a-68j-30(10) requires agencies to consider the following factors when awarding a contract that is subject to contract compliance requirements:

1. The contractor?s success in implementing an affirmative action plan;
2. The contractor?s success in developing an apprenticeship program complying with Section 46a-68-1 to 46a-68-17 of the Connecticut General Statutes, inclusive;
3. The contractor?s promise to develop and implement a successful affirmative action plan;
4. The contractor?s submission of EEO-1 data indicating that the composition of its work force is at or near parity when compared to the racial and sexual composition of the work force in the relevant labor market area; and
5. The contractor?s promise to set aside a portion of the contract for legitimate small contractors and minority business enterprises, where applicable. (See CGS 32-9e)

•  Notification to Contractors" Form

A "Notification to Contractors" form is attached, which should be read and signed by the contractor. (Attachment I)

• Contract Compliance Requirement Reporting Form

Attached is a Contract Compliance Requirement Reporting Form, that the contractor must complete and sign, which will be sent to the Commission on Human Rights and Opportunities by the awarding agency. (Attachment II)

•  Gift Affidavit

  The Contractor is required by the Office of the State Comptroller to provide an affidavit detailing campaign contributions and any gifts, as that term is defined in Section 1-79(e) of the general statutes, given to officers or employees of the Office of the State Comptroller or any member of the Vendor Advisory Committee for the two year period preceding the issuance of the Request for Proposals. The affidavit is required to be submitted as part of the contractor's proposal.

  The gift affidavit is provided as Attachment III to this RFP.

  At the contractor?s option, an Executive Summary may be included in the Proposal.

VII. INSTRUCTIONS TO CONTRACTORS

All responses to this RFP must conform to these instructions. Failure to conform may be considered appropriate cause for rejection of the response.

Delivery of Responses ? RFP responses must be in sealed envelopes upon which a clear indication has been made of the RFP reference title, as well as the date and time the bid is due. The name and address of the vendor must appear on the envelope. FAX responses are not acceptable.

Structure of Response ? Contractors must structure the responses as outlined in this RFP.

Inclusion of Taxes in Prices ? The State of Connecticut is exempt from the payment of excise, transportation, and sales taxes imposed by the Federal Government and/or the State. Such taxes must not be included in the prices.

Signature and Responsible Persons ? The Proposal must provide name, title, address, and telephone number for individuals with authority to negotiate and contractually bind the contractor, and for those who may be contacted for the purpose of clarifying the information provided with the Office of the State Comptroller. While companies may designate representatives to submit proposals, it is the policy of the State Comptroller?s Office, with respect to products under the FSA Program, to contract only with carriers selected to provide coverage.

"Not to Exceed" Quotations ? All cost estimates will be considered as "not to exceed" quotations.

There will be no contractors? conference.

Any prospective contractor must be willing to adhere to the following conditions and must positively state them in the Proposal:

1. Acceptance or Rejection by the State ? The State reserves the right to accept or reject any or all Proposals submitted for consideration. All Proposals will be kept sealed and safe until the deadline for submission has passed.
2. Conformance with Statutes ? Any contract awarded as a result of this RFP must be in full conformance with statutory requirements of the State of Connecticut.
3. Ownership of Proposals ? All Proposals in response to this RFP are to be the sole property of the State, and are subject to the provisions of Section 1-19 of the Connecticut General Statutes (Re: Freedom of Information). Any information a contractor deems proprietary or confidential must be specifically identified as such. Blanket identification of an entire proposal will not be accepted.
4. Ownership of Subsequent Products ? Any product, whether acceptable or unacceptable, developed under the contract awarded as a result of this RFP is to be the sole property of the State unless stated otherwise in the RFP or contract.
5. Timing and Sequence ? Timing and sequence of events resulting from this RFP will ultimately be determined by the State.
6. Stability of Proposed Prices ? Any price offerings from contractors must be valid for a period of 120 days from the due date of contractor Proposals.
7. Oral Agreements ? Any alleged oral agreement or arrangement made by a contractor with any agency or employee will be superseded by the written agreement.
8. Amending or Canceling Requests ? The State reserves the right to amend or cancel this RFP if it is in the best interests of the agency and the State.
9. Rejection for Default or Misrepresentation ? The State reserves the right to reject the Proposal of any contractor, which is in default of any prior contract or for misrepresentation.
10. State?s Clerical Errors in Awards ? The State reserves the right to correct inaccurate awards resulting from its clerical errors.
11. Rejection of Qualified Proposals ? Proposals are subject to rejection in whole or in part if they limit or modify any of the terms and conditions and/or specifications of the RFP.
12. Contractor Presentation of Supporting Evidence ? A contractor, if requested, must be prepared to present evidence of experience, ability, service facilities, and financial standing necessary to satisfactorily meet the requirements set forth or implied in the proposal.
13. Changes to Proposal ? No additions or changes to the original proposal will be allowed after submittal. While changes are not permitted, clarification at the request of the agency may be required at the contractor?s expense.
14. Collusion ? By responding, the contractor implicitly states that the Proposal is not made in connection with any competing contractor submitting a separate response to the RFP, and is in all respects fair and without collusion or fraud. It is further implied that the contractor did not participate in the RFP development process, had no knowledge of the specific contents of the RFP prior to its issuance, and that no employee of the agency participated directly or indirectly in the contractor?s proposal preparation.