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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)$4.5MSingle Award
Contract source

Awarded vendors

  • Application Software, Inc. (ASIFlex)

Description

This contract calls for a single vendor to administer three employee‑benefit programs for the Los Angeles Community College District: a Health Reimbursement Arrangement (HRA), a Flexible Spending Account (FSA), and Continuation of Benefits (COBRA/AB 528). The services include enrollment processing, monthly funding, debit‑card issuance, claims administration, web‑based open‑enrollment support, customer‑service call handling, and comprehensive reporting to the district. The award will be a five‑year professional‑services agreement (May 1 2021 – April 20 2024) with a possible two‑year extension, and the vendor must be a U.S. entity licensed to do business in California. • Scope: full administration of HRA, FSA, and COBRA, including data exchange with the district’s SAP payroll system. • Scale: roughly 6,400 HRA participants, 456 FSA participants, 3,000 retiree‑eligible HRA members, and 209 LOA direct‑billing participants. • Delivery: hard‑copy proposal required; award pending Board of Trustees approval; optional two‑year renewal after the base term.

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
Consulting Services
NAICS
541611
Solicitation №
RFP NO. 21-02

Contract value

$4,500,000

The documents disclose participant counts but no fee amounts. Typical third‑party administrators charge a per‑participant‑per‑month (PPPM) fee ranging from $4–$7 for HRA, $2–$4 for FSA, and $3–$5 for COBRA. Assuming mid‑range fees (HRA $5.5 PPPM, FSA $3 PPPM, COBRA $4 PPPM) and the reported participant volumes (≈6,400 HRA, 456 FSA, 209 Direct‑Billing, plus ~3,000 retiree HRA), the annual fee estimate is: - HRA: 6,400 × $5.5 × 12 ≈ $422,400 - FSA: 456 × $3 × 12 ≈ $16,416 - Retiree HRA (assume same rate): 3,000 × $5.5 × 12 ≈ $198,000 - Direct‑Billing: 209 × $4 × 12 ≈ $10,056 Total annual fee ≈ $647,000. Over a five‑year base term this yields ≈ $3.2 million, plus a potential two‑year extension (~$1.3 million). Therefore a reasonable ballpark for the contract value is roughly **$4.5 million**. This estimate is based on industry fee benchmarks and the disclosed participant numbers; actual fees could be higher if the vendor includes additional services (e.g., premium payments, reporting, audit support).

AI estimate from the award documents

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