1. Claims Administrator for the Retirement Medical Benefits Healthcare Reimbursement Arrangement Plan Pre-Proposal Conference September 20, 2012 Adam Thiemann IDOA Strategic Sourcing Analyst

2. Agenda General Information Purpose & Scope of RFP Key Dates Proposal Preparation & Evaluation Minority and Women’s Business Enterprises Question and Answer Session

3. General Information Sign-In Sheet for Attendees Sign-In Sheet and PowerPoint will be posted on IDOA’s Solicitation Website Hold questions until the end of the presentation

4. Purpose of the RFP The purpose of this RFP is to select a vendor that can satisfy the State’s need for a Claims Administrator. It is the intent of SBA to contract with a vendor that provides quality administration of the Account and any arising claims under the Plan. The purpose of the Plan is to reimburse eligible Retired Participants for certain qualifying medical expenses they, their spouses, and their dependent children incur.

5. Scope of RFP For active participants/eligible employees, the awarded vendor will be responsible, at the minimum for performing the following: –Tracking Demographics –Tracking Contributions –Tracking Annual Interest Amount –Providing an Annual Statement –Customer Care Support

6. Scope of RFP For retired participants, the awarded vendor will be responsible, at the minimum for performing the following: –Initial Setup –Tracking Demographics –Tracking Annual Interest Amount –Maintaining the Subaccount –Retiree Annual Statement –Customer Care Support –Claims Processing –Checks and EOB Mailed to Retiree Homes –Subaccount Reconciliation

7. Scope of RFP As of June 30, 2012 –Approximately 4,100 Retired Participants with remaining balances. –Approximately 27,800 Participating Employees receiving Active Contribution During FY 2012 –24,685 claims –Average claim of $502.00 –Total claims paid were $12.4M –Claims totaled $9.6M in FY 2011

8. Contract Term The term of the initial contract shall be for a period of three (3) years from the date of contract execution. There may be a one (1) year renewal for a total of four (4) years at the State’s option.

9. Key Dates ActivityDate Issue of RFP September 11, 2012 Deadline to Submit Written Questions September 25, 2012 @ 3:00 P.M. rfp@idoa.IN.govrfp@idoa.IN.gov Response to Written Questions/RFP Amendments September 28, 2012 Submission of Proposals October 19, 2012 @ 3:00 P.M. The dates for the following activities are target dates only. These activities may be completed earlier or later than the date shown. Proposal Evaluation October 22, 2012 Proposal Discussions/Clarifications (if necessary) TBD Oral Presentations (if necessary) TBD Best and Final Offers (if necessary) TBD Contract Award November 30, 2012

10. Proposal Preparation On electronic copies of proposals, please submit all documents as separate attachments, instead of one PDF file Use the templates provided for all answers Do not alter templates, unnecessary changes to templates may result in disqualification.

11. Business Proposal (Attachment E) Company Financial Information (Section 2.3.3) –Confidential information must be kept separate from the proposal in both hard and soft copy Contract Terms (Section 2.3.5) –Respondent should review sample State contract (Attachment B) and note exceptions to State mandatory and non-mandatory clauses in Transmittal Letter Buy Indiana (Section 2.3.14) –5 definitions, details provided in Business Proposal –Status shall be finalized by proposal due date

12. Proposal Preparation Indiana Economic Impact, Attachment C –Definition of FTE (Full-Time Equivalent) –Example: If a Respondent has 5 full time employees and is bidding on its 5 th contract, and all contracts get an equal amount of commitment from the employees then each employee commits 20% of his or her time to the new contract: 0.2 x 5 employees= 1 FTE.

13. Technical Proposal (Section 2.4) Every point made in each section must be addressed in the order given. Where appropriate, supporting documentation may be referenced by a page and paragraph number. 60 questions broken down into the following categories: –General Expertise –Security of Data –Quality Control –Accounting Methods –Customer Service –Implementation/Rollout

14. Cost Proposal (Attachment D)

15. Proposal Evaluation Summary of Evaluation Criteria: 1. Adherence to Mandatory Requirements –Pass/Fail 2. Management Assessment/Quality (Business & Technical Proposal) –30 points 3. Cost (Cost Proposal) –-25 to 25 points (5 bonus available) 4. Indiana Economic Impact –15 points 5. Buy Indiana –10 points 6. Minority (10) and Women Business (10) –Subcontractor Commitment 20 points (2 bonus available) * 100 Total Points (7 bonus possible)

16. Minority and Women’s Business Enterprises Complete Attachment A, MWBE Form - Include sub-contractor letters of commitment Goals for Proposal - 8% Minority Business Enterprise - 8% Women’s Business Enterprise

18. Minority and Women’s Business Enterprises Prime Contractors must ensure that the proposed subcontractors meet the following criteria: Must be listed on the IDOA Directory of Certified Firms Each firm may only serve as one classification – MBE or WBE A Prime Contractor who is an MBE or WBE must meet subcontractor goals by using other listed certified firms. Certified Prime Contractors cannot count their own workforce or companies to meet this requirement. Must serve a commercially useful function. The firm must serve a value- added purpose on the engagement. Must provide goods or service only in the industry area for which it is certified as listed in the directory at http://www.in.gov/idoa/2352.htmhttp://www.in.gov/idoa/2352.htm Must be used to provide the goods or services specific to the contract National Corporate Diversity Plans are generally not acceptable

20. Minority and Women’s Business Enterprises TOTAL BID AMOUNT:

21. Minority and Women’s Business Enterprises Effective May, 2011, a new MWBE scoring methodology will be utilized for all RFP’s released New Process – MWBE scoring is conducted based on 20 points plus a possible 2 bonus points scale - MBE: Possible 10 points + 1 bonus point - WBE: Possible 10 points + 1 bonus Point Professional Services Scoring Methodology: - The points will be awarded on the following schedule: - Fractional percentages will be rounded up or down to the nearest whole percentage - Submissions of 0% participation will result in a deduction of 1 point in each category - The highest submission which exceeds the goal in each category will receive 11 points (10 points plus 1 bonus point). In case of a tie both firms will receive 11 points %1%2%3%4%5%6%7%8% Pts.1.252.503.755.006.257.508.7510.00

22. Minority and Women’s Business Enterprises BidderMBE %Pts.WBE %Pts.Total Pts. Bidder 112.0%10.010.0%10.020.0 Bidder 26.0%7.54.0%5.012.5 Bidder 38.0%10.08.0%10.020.0 Bidder 416.0%11.012.0%11.022.0 Bidder 50.0%0.0%-2.0 RFP MWBE Scoring Example

23. Questions and Answers

24. Thank You athiemann@idoa.in.gov