State of California

  M E M O R A N D U M

  REFERENCE CODE:
  98-057

  DATE:
  November 6, 1998

  TO:
  Personnel Officers
  Personnel Transactions Supervisors
  Personnel Transactions Staff

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  Request for Proposal for Flexible Benefits Third Party 
  Administrator

  CONTACT:
  Janice Yates, Benefits Program Manager
  (916) 324-0535, CALNET 454-0535
  FAX: (916) 322-3769
  OFFICE VISION: DPA(JaniceYates)
  INTERNET: JaniceYates@DPA.CA.GOV


  This memorandum is to notify you on the status of the State 
  of California's Request For Proposal (RFP) S9850201, 
  Flexible Benefits Third Party Administrator (TPA) that was 
  released by the Department of Personnel Administration 
  (DPA) in April 1998.  
  
  As noted in the FlexElect Procedure Manual and the 1999 
  FlexElect Brochure, DPA's contract with the current 
  recordkeeper, Hunt, DuPree, Rhine and Associates, Inc., 
  will expire on December 31, 1998.  Therefore, DPA conducted 
  a bidding process for the new contract period to begin 
  January 1, 1999.  As a result of this process, DPA posted 
  its Intent to Award to Central Bank, the apparent low 
  bidder.  However, in accordance with the protest provisions 
  specified in the RFP, one of the bidders, Employee Benefits 
  Cooperative, protested the award.
  
  The Department of General Services (DGS) has issued a 
  Statement of Decision for the protest. After speaking with 
  DGS regarding our options as the result of its decision, 
  DPA has decided to begin a new procurement process for a 
  TPA to become effective with the 2000 FlexElect Plan Year.  
  DPA plans to extend the contract with the current TPA, 
  Hunt, DuPree, Rhine & Associates, Inc., to cover the 
  interim period until a new contract is awarded.  Therefore, 
  Hunt, DuPree, Rhine & Associates, Inc. will continue as the 
  FlexElect recordkeeper for the 1999 FlexElect Plan Year.
  As DPA has done for previous plan years, in mid-December 
  1998 we will send a letter and a supply of Reimbursement 
  Claim Forms and mailing labels for Hunt, DuPree, Rhine & 
  Associates, Inc. to the home addresses of all reimbursement 
  account participants enrolled for the 1999 Plan Year.  The 
  letter will explain the reimbursment process to the 
  participants.  Additionally, at that time DPA will also 
  send a copy of the letter and claim form to all Personnel 
  Transaction Supervisors and Transaction Staff.
  
  If you have any questions regarding this information you 
  may contact Janice Yates, Benefits Program Manager, at 
  (916) 324-0535 or CALNET 454-0535.
  
  
  
  
  Kathie Vaughn, Chief
  Benefits Division