Third Party Administration of the NYS Flex Spending Account

The contract involves the selection of a qualified Third Party Administrator (TPA) to oversee the comprehensive administration of the New York State Flex Spending Account (FSA) program, which encompasses health care, dependent care, and adoption expenses authorized under IRS Code Sections 125 and 129. The scope includes employee enrollment, claims processing, payroll interfacing, appeals, COBRA administration, HIPAA compliance, customer service, and reporting. The program aims to serve approximately 250,000 eligible employees across all New York State counties, including employees from the Executive Branch, the Unified Court System, Legislature, and several public benefit corporations. The contract, valued between five and fifteen million dollars, is set to commence on February 1, 2026, and will extend through December 31, 2031. The procurement process emphasizes diversity and inclusion goals, including subcontracting targets for minority-owned, women-owned, and service-disabled veteran-owned businesses. The solicitation, issued on August 12, 2025, requires interested vendors to submit proposals by October 9, 2025, with detailed instructions provided for cost proposals, compliance, and evaluation criteria. The RFP emphasizes the importance of compliance with administrative, legal, and privacy standards, including HIPAA, and mandates that proposers demonstrate experience with similar large-scale benefits administration. The process involves a competitive bidding environment, with no bidder’s conference scheduled but opportunities for written questions and clarifications. The selected vendor will be responsible for implementing systems to support the FSA, ensuring seamless integration with existing payroll and benefits systems, and maintaining high standards of customer service and regulatory compliance throughout the contract term.