07-21-2015 Regular School Board Meeting
Agenda Item #21


Title
Affordable Care Act Reporting, Tracking, and Management Platform

Discussion

The Affordable Care Act (ACA) requires all large employers to provide all full-time employees working more than 30 hours per week with a health insurance plan acceptable to the Federal Government.  Those employers that fail to offer an acceptable plan to 95% of “full-time” employees are subject to a $2,000 fine for essentially all full time employees ($2,000 x All Full Time Employees – 30).  In addition, the Federal Government, in particular, the Internal Revenue Service (IRS), is tasked with verification that all employees working for the employer are tracked according to ACA requirements and must verify to the employee and the IRS that a proper accounting of time worked, plans offered, and several other requirements are met.  Employers failing to provide proper documentation of their employee counts are subject to a $250 per employee fine with a maximum fine of $3,000,000.  Employers that fail to do any accounting have an added fine of $500 per employee with no cap in the fine.  These fines were recently increased from $100 per employee with a $1,500,000 cap in fine as of June 29, 2015.  The ACA has outlined a rather complicated process that the district is not capable of doing currently.  As a result, the Office of Employee Benefits and Risk Management are seeking the assistance from an outside entity to help us comply with the law in order to avoid the costly fine potential.  
 
The Office of Employee Benefits and Risk Management developed the scope of what was needed to comply with the law with the assistance of Willis Consulting and asked the Office of Purchasing and Warehouse Services to issue a Request for Proposal (RFP) to seek these services from the few companies that are currently offering such a service.  The RFP basically solicited a company that can fully integrate several software processes in order to properly track benefit offerings provided to employees from January to December of this year in the department's current and future benefit enrollment software, the district’s accounting software, the district’s payroll and finance software, complete the required IRS forms and send them to the IRS and to the employees; as employees must file a form with their tax returns henceforth and in all future years. 

Purchasing issued the first RFP for these as follows:
First RFP:
RFP 15-P-092-WH Affordable Care Act Reporting, Tracking and Management Platform
Date Solicited: June 2, 2015
Date Opened: June 18, 2015
No. Firms Solicited:  170, 4 were supplemental suppliers provided by our consultant
No. Firms Bidding: 1
Upon review of the single proposal received for the RFP it was determined the best course of action was to cancel the RFP in the interest of competition and because the offered pricing was considerably higher than expected.

Second RFP:
RFP 16-P-004-WH Affordable Care Act Reporting, Tracking and Management Platform
Date Solicited: June 19, 2015
Date Opened: June 30, 2015
No. Firms Solicited:  171, 4 were supplemental suppliers provided by our consultant
No. Firms Bidding: 1
Upon review of the single proposal received for this RFP it was determined to be non-responsive as the vendor could not provide all of the required services.  The RFP was canceled. 

After making two unsuccessful attempts at selecting a vendor using the RFP selection process, the Office of Purchasing and Warehouse Services advised the Office of Employee Benefits and Risk Management it has sufficiently exhausted its capacity to solicit a vendor and as such recommended that the department pursue direct negotiations with a vendor willing to provide this service.  

The Office of Employee Benefits and Risk Management and Willis Consultants contacted several firms willing to provide these services.  All three vendors as noted in the attachment report that they can meet the ACA requirements and are willing to provide a quote for these services.  The only caveat for one of the vendors who quoted is that their contract must be fully negotiated and in place by July 31, 2015 as that is the last day they were willing to take on new clients.  After a comparison of pricing and services, Equifax offered the most responsive quote and as such, the department asks the Board to allow us to negotiate and finalize a three-year agreement.



Recommendation

Grant the Superintendent authority to contract with Equifax to provide ACA Compliance Software and Reporting Services including 6055/6056 reporting to the Internal Revenue Service at a cost up to $94,380 for 2015, $77,540 for 2016, and $79,808 for 2017.



Meeting Date(s)
Consent w/o Information - 7/21/2015

Authority for Action
Board Policy 6320, FL Administrative Code 6A-1.012(11)(12)(15)

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Operating - Other

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program
201594,380.00No73198500010027500779000
201677,540.00No73198500010027500779000
201779,808.00No73198500010027500779000

Contact

Mark Langdorf, Office of Employee Benefits and Risk Management, ext. 620/216
Dr. Deborah Pace, Associate Superintendent, Office of Human Resources Services, ext. 200




Attachment:  2015-18 ACA Application Management Program Analysis.pdf