CalHEERS SDMO RFP #73040873

The State of California, through the Office of Technology and Solutions Integration, is seeking a prime contractor to provide comprehensive System Development, Maintenance, and Operations (SDMO) services for the California Healthcare Eligibility, Enrollment, and Retention System (CalHEERS), a critical platform that enables residents to apply for, determine eligibility for, and enroll in health coverage programs including Covered California, Medi-Cal, CalFresh, and CalWORKS. The solicitation, RFP #73040873, outlines a complex, multi-year effort requiring seamless integration with state systems like SAWS for Modified Adjusted Gross Income (MAGI) calculations and data sharing across public assistance programs. Proposals must address a broad scope of work spanning system enhancements, operational support, performance monitoring, transition planning, and compliance with stringent technical and administrative standards, including ISO/IEC/IEEE software testing and verification protocols. The contract, structured with a five-year base and up to five optional years, mandates adherence to state-specific procurement rules and includes mandatory requirements such as a detailed cost workbook, performance bonds, insurance coverage, accessibility compliance (Section 508), sustainability practices, and a transition and knowledge transfer plan. Bidders must submit a three-volume proposal adhering to strict formatting and submission guidelines: Volume I contains administrative and compliance documentation excluding cost data, Volume II includes fully executed contract agreements, and Volume III presents the cost workbook and supporting financials in specified formats. Proposals are evaluated on a best value trade-off basis, with 6,500 points allocated to technical merit—including understanding of project management, system change approach, transition-in readiness, and key staff qualifications—and 3,500 points to cost realism. The evaluation places heavy emphasis on the bidder’s capacity to manage system transitions, mitigate operational risks, and maintain critical system performance against SLAs. Key personnel roles—such as Project Manager, Technical Manager, Security Officer, and Data Scientist—must be pre-approved, and their replacement requires state consent; failure to maintain qualified staff may trigger a stop-work order. The contract prohibits offshore work without explicit approval, mandates annual security and HIPAA training for all personnel, requires monthly screening against federal exclusion lists, and enforces stringent ethics compliance, including Form 700 disclosures. All submissions are due by January 20, 2026, via email and sealed hard copy, with no late proposals accepted. The State retains full inspection and acceptance rights at destination, and provisions allow for termination for default based on un