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Arizona Department of Administration·Arizona

Workers’ Compensation Cost Containment and Pharmacy Benefit Management (PBM) Services

Closes in 4 days$1M – $5MRequest for Proposal
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Description

The State of Arizona seeks one or more vendors to provide statewide workers’ compensation cost‑containment services and pharmacy benefit management (PBM) solutions. The contract will be an ID/IQ arrangement with an initial 12‑month term, extendable up to five years, and may be awarded to multiple contractors. Vendors must demonstrate expertise in workers’ compensation claim analysis, cost‑containment strategies, PBM operations (including formulary management, claim adjudication, and rebate handling), and must meet stringent information‑security (GovRAMP) and HIPAA Business Associate requirements. The solicitation demands comprehensive documentation, including insurance certificates, security attestations, and a $1.00 placeholder line‑item in the e‑procurement system. • Core services: workers’ compensation cost‑containment, PBM administration, 24/7 nurse triage, utilization review, bill review, and pharmacy audit. • Mandatory compliance: GovRAMP Core (or snapshot within 60 days post‑award), HIPAA BAA, AZDOHS security program, and extensive insurance limits. • Performance metrics: utilization‑growth targets for nurse triage, bill‑review turnaround (2 business days for questionable bills, 10 days for clean‑claim recommendation), and at least 3 % pharmacy audit coverage annually. • Financial model: firm‑fixed pricing submitted via an Excel sheet; all rebates must be remitted to the State, with no service fees charged for PBM.

Attached files

Contact

Simon Alvarez(Procurement Officer)

[email protected]

(602) 542-8911

Key dates

Opened
10/5/2026
Pre-bid meeting
10/14/2026
Closes
11/5/2026
Duration
12 months

Last updated

Details

Type
Request for Proposal
Industry
Risk Management
NAICS
541618
Solicitation №
BPM007467

Budget estimate

$1,000,000 – $5,000,000

The solicitation references FY25 and FY26 spending of roughly $2.12 M and $1.85 M for the State program, plus $0.10 M–$0.24 M for the Special Fund, suggesting a combined annual spend of about $4 M. Assuming a competitive fixed‑price contract covering a 12‑month term, the award could reasonably range from $1 M (lower‑bound for a single‑vendor solution) to $5 M (upper‑bound if multiple vendors are awarded and the contract is extended). Factors influencing the range include the breadth of services selected (full PBM suite vs. limited cost‑containment), the chosen pricing model (per‑incident vs. lump‑sum), and any required GovRAMP compliance costs.

AI estimate from the solicitation

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