Combined Synopsis and Solicitation
FAR 12.603 and FAR 5.203(a)(2)
This is a combined synopsis/solicitation for Federal Flexible Spending Account Program (FSAFEDS) Administration Services prepared in accordance with the format in subpart 12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; proposals are being requested and a written solicitation will not be issued.
- The solicitation number is 24322625R0004 and is issued as a Request for Proposal (RFP). This solicitation is associated to the Sources Sought Notice (SSN)/ Request for Information (RFI) issued in December 2023 under #SP-HI-237248. Offerors responding to this solicitation are NOT required to have participated in the market research phase or responded to the SSN/RFI to be considered eligible to respond to this solicitation.
- PROVISIONS AND CLAUSES. This solicitation document and incorporated provisions and clauses are those in effect through Federal Acquisition Circular (FAC) 2025-03. The Government intends to include Office of Personnel Management (OPM) and Federal Acquisition Regulation (FAR) Provisions and Clauses, either by reference or in full text in the resulting award as provided in Attachment 3a-c, Provisions and Clauses. In accordance with FAR12.603(c)(2) (viii) through (xiii), the following provisions apply to this solicitation: 52.212-2 through 52.212-5. any additional contract requirement(s) or terms and conditions (such as contract financing arrangements or warranty requirements) determined by the contracting officer to be necessary for this acquisition and consistent with customary commercial practices.
Note: The FAR Provisions and Clauses may be accessed in full at: https://www.acquisition.gov/far.
- QUESTIONS. All questions concerning any aspect of this announcement must be submitted in writing (using Attachment 4 Tab 1) to email box: FSA.Internet@opm.gov. Please state the following on the subject line: Questions for FSAFEDS Solicitation 24322625R0004. Questions must be submitted no later than 2:00 pm Eastern on Monday / April 21, 2025 for clarification sufficiently in advance of the deadline of receipt of the proposal to get an answer in time to meet that deadline. Attachment 4 (Tab 2 -Q&A from FSAFEDS 2020) has been provided as a reference; any questions you submit on Attachment, 4 that are addressed on attachment 4a will not be answered. Telephone requests will not be honored. The Government's response to inquiries will be made in writing. Any resulting additions, deletions or changes to the RFP will be made by issuances of a formal amendment.
Interested parties (offerors and/or their subcontractors) shall not contact anyone at OPM, other than the email box noted above for any purpose related this solicitation. Any contact related to this solicitation between any interested party and any OPM personnel other than the Procuring Contracting Officer (PCO) or Contract Specialist (CS) is prohibited and could be considered grounds for removal from participation in this procurement action.
NOTICE: In keeping with the Federal Acquisition Regulation (FAR), OPM adheres to the guidelines outlined in the FAR Part 1.102-2(c), which is to conduct business with integrity, fairness, and openness. In order to avoid any appearance of impropriety, the OPM Contracting Officer reserves the right to terminate contractor participation in a Request for Proposal for unauthorized contact with customers, presentation of gifts to Government officials, use of defamatory statements, or other inappropriate behavior.
- SOLICITATION CLOSING DATE. All proposals must be submitted via email to Matthew Manning via email: Matthew.Manning@opm.gov no later than 2 pm (Eastern), Monday / May 26, 2025. Proposals shall include all required items listed in Attachment X Proposal Instructions and Evaluation for Award.
- This acquisition is Unrestricted. Although the work may include multiple North American Industry Classification Standard (NAICS) codes, the primary code for this requirement is 524292, Third Party Administration of Insurance and Pension Funds. The Small Business size standard is $45.5 million. The Product Service Code (PSC) is R799, Support Management Other.
- The Government anticipates awarding a single Indefinite Delivery/Indefinite Quantity (IDIQ) Contract.
OPM along with other approved agencies will be authorized to issue task orders against this IDIQ; however, OPM will be the only agency authorized to make any changes to the terms and conditions. Each agency will assign their own Contracting Officer (CO) and Contracting Officer Representative (COR) as needed. OPM will issue a Benefits Administration Letter (BAL) post-award in January 2026 with ordering procedures.
Task orders will be used to definitize quantities and contract value (the value the Contractor collects in payment from all sources) regardless of whether any funds are being obligated via that task order.
The IDIQ will have a minimum order guarantee of $25,000. Performance beyond the Start Up Period cannot occur unless and until the Contractor has achieved Authorization to Operate (ATO) during the Start Up Period, and therefore no guarantees can be given for any task orders beyond the Start Up Period. Agencies whose employees enroll in FSAFEDS benefits will be required to award their own task orders against the IDIQ for payment of their share of costs to the Contractor. The maximum order value for the IDIQ shall not exceed an aggregate total of $250 million.
Contract pricing for the Start-Up Period will be firm fixed price. Contract pricing for the ordering period will be firm fixed price, but quantities of those fixed price services will be indefinite. Pricing quoted in response to this RFP will be valid for the entire period of the contract and is not subject to redetermination, other than as applicable under the Service Contract Act. Offerors shall include any price increases for performance in future years in their quoted pricing.
- OBJECTIVE. The description of the requirements is as follows: See Attachment(s) 1a and b, Performance Work Statement (PWS) and Appendices.
- PEFORMANCE PERIOD. The contract will have a maximum of 54 months of performance periods available. Anticipated Periods of Performance and Dates are as noted in the table below:
Start-Up Period
Approximately 6 months
Date of Award through December 31, 2025
(ATO to be achieved by December 31, 2025)
ORDERING PERIOD
48 months
January 1, 2026 through December 31, 2029
The start and end dates for each task order will be specified at the time of issuance of each task order and shall not extend beyond the stated periods of performance in the master contract. Task order start and end dates shall align with the periods of performance stated in the IDIQ.
(Note: Anticipated date of award is on or about June 30, 2025)
- BASIS FOR AWARD. Refer to Attachment X, Proposal Instructions and Evaluation for Award for complete details.
- COMMITMENT OF PUBLIC FUNDS. A warranted, Government Contracting Officer (CO) is the only individual who can legally commit the Government to the expenditure of public funds in connection with the proposed acquisition or any task orders. Any other commitment, either explicit or implied, is invalid.
- PREPARATION COSTS. This RFP does not commit the Government to pay for the preparation and submission of proposal or any part of a proposal.
- ATTACHMENTS:
- Attachment 1
- a Performance Work Statement (PWS)
- b Appendices A through H, and Exhibit J
- Attachment 2 Pricing Proposal Schedule (CLIN Structure)
- Attachment 3 Provisions and Clauses
- a Provisions Full Text
- b FAR Clauses Full Text
- c OPM Clauses Full Text
- Attachment 4 RFP Question Response Form
- Reference Tab 2 FSAFEDS 2020 Q_A
- Attachment 5 Pass / Fail Forms and Questionnaires
- Attachment 6 Acknowledgement of Amendments
- Attachment 7 Small Business Participation Commitment Document (SBPCD) Template
- Attachment 8 IT Security Affirmation
- Attachment 9 Small Business Subcontracting Plan Template (required for all other than small business concerns)
- Attachment X Proposal Instructions and Evaluation for Award
Background
The U.S. Office of Personnel Management (OPM) is seeking a qualified third-party administrator to manage the Federal Flexible Spending Account Program (FSAFEDS) for active Federal civilian employees and eligible uniformed service members.
This initiative aims to provide health and dependent care flexible spending accounts on a self-supporting basis, enhancing the benefits offered to federal employees. The program is designed to compete with private sector offerings, ensuring that the Federal Government can attract and retain high-quality workers, especially in light of anticipated retirements in the coming years.
Work Details
The contractor will be responsible for the following tasks:
1. Administer health care and dependent care flexible spending accounts, ensuring compliance with IRS regulations.
2. Conduct enrollment activities for eligible participants, including a multi-dimensional education and marketing campaign during the Federal Benefits Open Season.
3. Provide customer service support, including interactive voice response systems and online claim submission capabilities.
4. Ensure secure handling of participant data in compliance with HIPAA and other privacy regulations.
5. Develop linkages with federal payroll systems via BENEFEDS for accurate enrollment and allotment processing.
6. Manage claims processing, including auto-adjudication of claims and handling appeals for denied claims.
7. Facilitate seamless transitions between contractors at the end of contract periods, ensuring continuity of services.
Period of Performance
The contract will have a maximum performance period of 54 months, consisting of a Start-Up Period of approximately 6 months from the date of award through December 31, 2025, followed by an Ordering Period lasting 48 months from January 1, 2026 through December 31, 2029.
Place of Performance
All contract performance must occur within the 50 United States or the District of Columbia.
