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  5. ›ADMINISTRATION OF HEALTH REIMBURSEMENT ARRANGEMENT (HRA)…

Awarded contract·Los Angeles Community College District·California

ADMINISTRATION OF HEALTH REIMBURSEMENT ARRANGEMENT (HRA), FLEXIBLE SPENDING ACCOUNT (FSA), AND CONTINUATION OF BENEFITS (COBRA)

Won by Application Software, Inc. (ASIFlex)$5MSingle Award
Contract source

Awarded vendors

  • Application Software, Inc. (ASIFlex)

Description

The Los Angeles Community College District is procuring a five‑year professional‑services contract to administer its employee benefit programs—Health Reimbursement Arrangement (HRA), Flexible Spending Account (FSA), and Continuation of Benefits (COBRA). The selected vendor will manage enrollment, claims processing, debit‑card issuance, reporting, and communications while integrating with the District’s SAP‑based HR/payroll system. The contract is valued by participant‑based fees and will commence on May 1 2021, with an optional two‑year extension. • Scope covers HRA (medical & Medicare), FSA, COBRA/AB‑528, and direct‑billing services for ~10 000 participants. • Vendor must provide a web‑based open‑enrollment portal, toll‑free customer service, monthly/annual reporting, and retain records for seven years. • The solicitation was open to full and open competition; the intent to award was issued on April 1 2021 to Application Software, Inc. (ASIFlex).

Attached files

Key dates

Bids closed
3/18/2021
Starts
5/1/2021
Ends
4/20/2024Renews
Duration
5 years

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Industry
Healthcare and Medical Services
NAICS
524210
Solicitation №
RFP NO. 21-02

Contract value

$5,000,000

No explicit contract value is disclosed. The RFP covers roughly 6,400 HRA participants, 456 FSA participants, about 3,000 retiree HRA‑eligible participants, and 209 LOA direct‑billing participants – totaling ~10,000 covered lives. Typical third‑party administrators charge a per‑participant‑per‑month (PPPM) fee ranging from $5 to $12 for HRA/FSA and $2‑$5 for COBRA. Assuming an average blended PPPM fee of $7 across 10,000 participants yields $70,000 per month, or about $840,000 per year. Over a five‑year base term this equals roughly $4.2 million. Adding the optional two‑year extension (if exercised) could push the total toward $5‑$6 million. Therefore a reasonable ball‑park estimate for the contract’s value is approximately $5 million.

AI estimate from the award documents

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