1. society
2. work
3. contracts

TABLE OF CONTENTS
GENESEE HEALTH SYSTEM BOARD
REQUEST FOR PROPOSAL
FOR PROFESSIONAL EMPLOYER ORGANIZATION (PEO) SERVICES
ISSUED:
MARCH 22, 2015
I.
PURPOSE AND SPECIFICATIONS
II.
SCOPE OF WORK
III.
CONTRACTOR RESPONSIBIITIES AND SPECIFICATIONS
IV.
BIDDER CRITERIA AND RESPONSE REQUIREMENTS
V.
RFP BIDDER COVER SHEET
VI.
TIMELINE
1
GENESEE HEALTH SYSTEM BOARD
REQUEST FOR PROPOSAL
FOR PROFESSIONAL EMPLOYER ORGANIZATION (PEO) SERVICES
I. PURPOSE AND SPECIFICATIONS
At this time, the The Genesee Health System (GHS) Board (hereinafter referred to as the
“Board”), is announcing its interest in securing responses from qualified Professional
Employer Organizations (“PEOs”), who can demonstrate written evidence of past
performance and business endeavors that align with the purpose, values, and vision of GHS,
to provide exemplary cost-effective human resource solutions and manage contract
employee risks as described within this Request for Proposals (“RFP”). GHS is seeking
sealed bid proposals from interested and qualified parties to provide PROFESSIONAL
EMPLOYER ORGANIZATION (PEO) SERVICES. These services will be provided to
GHS at locations as requested by the Board.
The purpose of this RFP is to allow GHS to identify the most qualified Proposer who, after
full Board approval, will be invited to negotiate a contract with GHS to provide exemplary
cost-effective human resource solutions and manage employee risks as described in Section
II of this RFP.
GHS will be entering into one contract for these services for the period of one (1) year with
an option to renew annually subject to:
1) Exemplary performance evaluations by the GHS and other qualified entities;
2) Availability of funds as determined by GHS; and
3) Changes in programmatic or service related needs as determined in the sole
discretion of GHS.
Quotations must be clear, concise, typewritten, and must be signed in ink by the official
authorized to bind the submitter to its provisions. The contents of this REQUEST FOR
PROPOSAL (RFP) will become incorporated within any contract signed by the Board and
the provider of these services. Do not retype this RFP, instead, respond on a separate page
and cite the section number for each response. All areas of the bid proposal must be
addressed in the same sequence cited in the RFP instructions in order that proper
consideration is given to the proposal. Quotations submitted without information or
incomplete content will result in the proposal being removed from consideration. The
bidder must complete a RFP Bidder Cover Sheet, following the format shown in Section V
on page 15, and attach it to the proposal.
Any change to this RFP subsequent to its release will be confirmed in writing by the Board.
ONE (1) original and FIVE (5) copies of each proposal must be submitted in a sealed
envelope/package. Quotations will be accepted until April 6, 2015 at 3:00 PM EDT.
Quotations must be received by this date and time in order for the proposal to be
considered. The following should be noted on the outside of the envelope:
2
CONFIDENTIAL
PROFESSIONAL EMPLOYER ORGANIZATION (PEO) SERVICES
RFP MATERIALS ENCLOSED
DO NOT OPEN UNTIL APRIL 6, 2015 AT 3:30 PM EDT
Quotations may be mailed or hand delivered to the following address:
Genesee Health System Board
Attention: Contract Management Dept.
420 W Fifth Avenue, Flint, MI 48503
Quotations will be publicly opened on APRIL 6, 2015, at 3:30 PM EDT at 420 W Fifth
Avenue, Flint, MI 48503. The proposal shall cover services beginning on or about April 30,
2015 or as agreed upon by the Contractor and the Board. The services will be delivered on
or about the dates specified with the Service Description section of this RFP, or as agreed
upon by the Contractor and the Board. Quotations must be presented for a minimum period
of time as outlined in Section IV. Bidder Criteria and Response Requirements, Subsection
C. Rate Submission for Service(s) to be provided.
The Board reserves the right to accept or reject any/all bid quotations received pursuant to
this RFP, in whole or in part; and/or to waive any/all irregularities therein; and/or to
delete/reduce the units of service; and/or to negotiate proposal terms in any way whatsoever
to obtain a proposal as deemed in its best interest. The Board reserves the right to resolicit/re-advertise as deemed necessary.
INTRODUCTION AND OVERVIEW
GHS operates as a Mental Health Authority under the provisions of Act 258 of the Michigan
Public Acts of 1974, as amended. The Board intends to enter into a contract with a forprofit or non-profit entity or entities to provide PROFESSIONAL EMPLOYER
ORGANIZATION (PEO) SERVICES. It is expected that the proposal to provide these
services will be in compliance with all applicable State and Federal standards and
guidelines.
GHS manages and provides, both directly and through existing contracts, a continuum of
services to persons with mental health disabilities who are located within the County of
Genesee. Services are directed to persons who meet the criteria found in the most recent
Diagnostic and Statistical Manual of Mental Health Disorders published by the American
Psychiatric Association. Priority is given to the provision of services to individuals and
families with severe and persistent mental illness, children with serious emotional
disturbance, persons with developmental disabilities, and persons with substance use
disorders.
3
Managed care has created a need for the Board to more clearly define the role of and
expectations for contractors from whom Professional Employer Organization (PEO)
Services are purchased. This RFP establishes criteria and requirements that have been
designed to cover important aspects of the services to be provided.
The Board has chosen to meet the challenge of managed care by managing its mental health
and substance use disorder care service delivery through evaluation and monitoring, and
expecting its service providers to be solely responsible for managing its operations
consistent with terms of the accepted contract. Consequently, the submitter should be aware
that providers from whom the Board purchases services are expected to operate in the
marketplace and be able to effectively meet the requirements for establishing and
maintaining a contractual relationship with the Board.
COST LIABILITY
The Board assumes no responsibility or liability for costs by the bidder, or any bidder prior
to the execution of a contract between the organization and the Board.
BIDDER RESPONSIBILITIES
All inquiries concerning the content of the RFP shall be addressed to the address cited on
page three of the RFP.
It is the responsibility of the bidder to understand all details of the RFP. The bidder, by
submitting a response indicates a full understanding of all details and specifications of the
RFP. Bidders are expected to present narrative statements/summaries in a clear, concise and
organized manner for review.
The bidder is solely responsible for delivery of its ONE (1) original proposal and FIVE (5)
copies to the GHS Contract Management Office, located at 420 W Fifth Avenue, Flint,
Michigan 48503, no later than 3:00 PM EDT on APRIL 6, 2015. The Contract
Management Department will be the sole point of contact throughout the RFP process.
Bids submitted after the deadline will not be considered and will be discarded.
All bids submitted by the deadline will become the property of the Board.
OTHER MATERIALS
Bidders may attach other materials believed to be relevant to illustrate the bidder’s ability to
successfully provide these services.
4
AWARD OF CONTRACT
It is the intent of the Board to enter into a contract with a provider that will emphasize
administrative efficiencies, and possess the capacity, infrastructure and organizational
competence to provide the required services under this proposal.
Award recommendations are contingent upon an initial evaluation of the bidder’s
qualifications to determine if the bidder is a quality provider.
There are three types of evaluation that may be used to determine if a bidder meets quality
standards. The first is an evaluation of the written response to the RFP. The second
involves interviewing bidder’s staff and/or regulators. The third involves interviews with
bidder’s customers and/or consumers.
The process of evaluating each bidder’s proposal may involve interviews with a random
sampling of the bidder’s current and previous customers. This is not an exclusive criterion
for awarding the contract.
In addition to access to customers, the evaluation process must be assured of unimpeded
access to employees of the bidder. Specific requests for information, to assist the
evaluators, will be submitted to the prospective bidder in order to facilitate sampling
satisfaction.
It is anticipated that contract(s) will be awarded on or before April 30, 2015.
Bidders who are awarded contracts shall not have the right to assign or delegate any of their
duties or obligations under the contract to any other party without written permission of the
Board.
DISCLOSURE
All information in a bidder’s proposal is subject under the provisions of Public Act No. 442
of 1976 known as the Freedom of Information Act.
CONFLICT OF INTEREST
Bidders awarded a contract will affirm that no principal, representative, agent, or other
acting on behalf of or legally capable of acting on the behalf of the bidder, is currently an
employee of the Board; nor will any such person connected to the bidder currently be using
or privy to any information regarding the Board which may constitute a conflict of interest.
At the time of bidding, any bidder shall disclose any known direct or indirect financial
interests (including but not limited to ownership, investment interests, or any other form of
remuneration) that may be present between the contractor or his/her potential
subcontractors, and GHS personnel or those working on behalf of the Board. This
5
disclosure shall be made to the GHS Contract Management Department who will forward
the information to the CEO.
As part of their bid, include a list of any known potential subcontractors, including the
portion of bid work being contracted out to other licensed contractors. This listing of
potential subcontractors shall be limited to the name of the company, name of the
company’s owner(s), and business address. If any other subcontractor is selected after a bid
is awarded, the successful bidder shall provide GHS Contract Management with the name of
the company, its owner(s), and address. This requirement is not intended to apply to
minimal relationships such as the purchase of a small dollar amount of supplies to complete
a project.
RELATIONSHIP OF THE PARTIES (INDEPENDENT CONTRACTOR)
The relationship between the Board and any bidders successful in obtaining a contract is
that of client and independent contractor. No agent, employee, or servant of the contractor
shall be deemed to be an employee, agent, or servant of the Board for any reason. The
contractor will be solely and entirely responsible for its acts and the acts of its agents,
employees, and servants during the performance of a contract resulting from the RFP.
NO WAIVER OF DEFAULT
The failure of the Board to insist upon strict adherence to any term of a contract resulting
from this RFP shall not be considered a waiver or deprive the Board of the right thereafter to
insist upon strict adherence to that term, or any other term, of the contract.
DISCLAIMER
All the information contained within this RFP reflects the best and most accurate
information available to the Board at the time of the RFP preparation. No inaccuracies in
such information shall constitute a basis for legal recovery of damages, either real or
punitive. If it becomes necessary to revise any part of this RFP, a supplement will be issued
to all bidders who indicate their intent to bid via e-mail as specified on Page 16, Section VI.
Time Requirements, paragraph 1).
II. SCOPE OF WORK
GENERAL STATEMENT
GHS is seeking responses from qualified Professional Employer Organizations (PEOs) who
can demonstrate written evidence of past performance and business endeavors that align
with the purpose, values, and vision of GHS, to provide exemplary cost-effective human
resource solutions and manage employee risks as outlined in this Section of the RFP.
Proposers should note that partial responses to proposed services, as determined by GHS,
will be deemed non-responsive and will disqualify the Proposer from further consideration.
To ensure full coverage of all required service components and to promote collaboration
6
among qualified organizations, Proposers may propose written sub-contracting
arrangements with other qualified partners as long as the qualifications and costs associated
with such proposed sub-contracts are clearly identified in the Proposal, and there is
sufficient justification for the sub-contract.
PROPOSER’S QUALIFICATIONS
[A]
Qualified Proposers shall provide a written summary demonstrating exemplary past
experience in expeditiously and efficiently providing the services of a Professional
Employer Organization (PEO) to include:
1. Written evidence of past performance and business endeavors that align with the
purpose, values, and vision of GHS.
2. Number of years the PEO has been in business in the United States and in Michigan.
Indicate if the PEO is a State of Michigan based corporation and does it have an
office in GHS’s service area of Genesee County.
3. Membership in a National Association or Organization to assure GHS that the PEO
is current with industry developments. If not a member of a National Association or
Organization you must explain how you stay abreast of industry developments.
4. Membership in Employer Services Assurance Corporation (ESAC), or provide
information allowing GHS to assure GHS that its employees and employment taxes
will be paid and benefit payments will be assured in the event of payment default by
the PEO.
5. Workers’ Compensation Certification Program evidencing that the PEO’s risk
management program is meeting proven insurance industry risk management best
practices to reduce work-related accidents and control losses.
6. Any additional Industry Recognized Awards/Certifications.
7. Identify the PEO’s workers’ compensation carrier, the rating of the carrier, how long
the PEO has been with the carrier, and what coverage commitment the PEO has for
the future.
8. Credentials and experience of the PEO’s administrative, human resources, and risk
management staff and indicate the average staff tenure with the organization.
9. Professional and client references, including bank and credit references. The PEO
shall demonstrate that payroll taxes and insurance premiums have been paid
consistently and timely.
10. Indicate if the PEO offers a Client Defense Program and up to what dollar amount
will the PEO pay for legal fees for the defense of qualified employee lawsuits filed
against GHS.
11. Indicate if the PEO offers Employment Practices Liability Insurance (EPLI)
coverage. Identify the PEO’s insurance carrier, the coverage per claim and overall
aggregate, the deductible per claim. Indicate the type of claims included in the
coverage.
[B]
Qualified Proposers shall describe their organization’s financial viability with
particular attention given to the Proposer’s ability to continue in business for the duration of
the contract period(s). The description should include an analysis of operation data for the
7
last three (3) years and a trend analysis noting prospectively how the organization believes
operations will continue based on historical results. The description should include the
number of years in operation.
SERVICES TO BE PROVIDED
The following are the services to be provided by a qualified Professional Employer
Organization (PEO) for GHS for approximately 20 (twenty) employees receiving payroll
every two (2) weeks made through electronic deposits or through issuing checks:
A. Human Resource Management - GHS requires the Proposer to provide a detailed
description of their human resource management services to include:
1. Personnel Consultation and Assistance
2. Unemployment Claims Handling
3. Conflict Resolution
4. Employee Handbooks, Employment Forms, Policies
5. Personnel File Maintenance
6. Compliance with Employment Laws and Regulations
7. Employee Background Checks
8. Drug Testing Program
9. Supervisory Training on Legal Compliance, Management
10. Pre-employment Screening/Skills Testing
12. Employee Discipline
12. Knowledge and compliance to the Affordable Care Act.
B. Workers’ Compensation/Safety - GHS requires the Proposer to provide a detailed
description of their workers’ compensation/safety services to include:
1. Workers’ Compensation Claims Handling
2. Compliance with Workers’ Compensation Laws
3. Investigation of Employee Claims
4. Fraudulent Claims Reward Program
5. Managed Care Program
6. Preparation/Compliance with OSHA Regulations
7. Safety Policies and Inspections
C. Benefits - GHS requires the Proposer to provide a detailed description of their
benefits to include:
1. Workers’ Compensation Insurance (mandatory)
2. Health Insurance
3. Dental Insurance, if available
4. Vision Insurance, if available
5. Life Insurance
6. Disability Insurance
7. 401 (K) Retirement Plan
8. Track Eligibility Dates for Benefits, Conduct Enrollments
9. Compliance with COBRA, HIPAA, ERISA
8
10.
11.
12.
13.
14.
15.
16.
IRA and Savings Bond Plan
Employee Assistance Program
Tuition Reimbursement
Cafeteria Plan/Flexible Spending Account Plan
Adoption Assistance
Credit Counseling
Employee Entertainment and Services Discounts
D. Payroll - GHS requires the Proposer to provide a detailed description of their payroll
services to include:
1. Report Hours
2. Computation and Preparation of Payroll
3. Direct Deposit
4. Deductions for Child Support, Levies, and Garnishments
5. Withhold Income Taxes and FICA
6. Complete Quarterly Tax Filings
7. Complete W-4s, I-9s, and W-2s,
8. Print/Deliver Checks
9. Employer Verification
10. Employee Earnings Records
11. Customized Reporting of Payroll Costs
E. Online Services - GHS requires the Proposer to provide a detailed description of
their online services to include:
1. Timekeeping, Timesheets, and
2. Access – Reporting, Data Change Requests, New Hire Enrollment and Payroll Entry
PRICE FOR PROFESSIONAL EMPLOYER ORGANIZATION (PEO) SERVICES
GHS requires the Proposer to provide detailed, itemized pricing for each service provided in
Section II on page 8 of this RFP to include all applicable costs and fees to GHS. The
Proposer shall indicate the thresholds for changes in costs and fees and whether it is an
increased or decreased cost/fee. The Proposer shall indicate if there are any other costs to
GHS.
Additionally, GHS requires the Proposer to provide a sample of their invoice, itemizing
applicable costs and fees to include:
1. Employer Taxes:
- Social Security
- Medicare
- Federal Unemployment
- State Unemployment
2. Administrative Fee
3. Workers’ Compensation Insurance (approximately 20 employees)
4. Combined Rates for Services Provided
9
5. Combined Rates for Services Provided After $7,000.00 State and Federal caps
are met.
III.
CONTRACTOR RESPONSIBIITIES AND SPECIFICATIONS
STAFFING LEVELS AND FUNCTIONS
The Contractor shall maintain sufficient staff to deliver the agreed upon Professional
Employer Organization (PEO) services as specified in the Contractor’s Proposal.
Upon execution of the contract, the Contractor must provide a current organizational chart
listing positions and lines of authority.
The Contractor must submit written notification, within five (5) working days, to GHS of
changes in key staff. When the position is filled, GHS shall be notified in writing of the
identity and qualifications of the new incumbent.
PROFESSIONAL QUALIFICATIONS
The Contractor will ensure that all staff are appropriately qualified and participate in a
professional development plan.
RECORDS AND DOCUMENTATION
During the term of the contract, the Contractor shall maintain accurate records and any
documentation required by the State and/or Federal regulations. The Contractor shall
provide copies of all such documentation and records as determined by GHS.
The Contractor agrees to maintain the confidentiality of all records required by law or
administrative rule to be protected from disclosure. The Contractor further agrees to hold
harmless, defend, and indemnify GHS from any claim or damage, including reasonable
attorney's fees and costs or from any fine or penalty imposed as a result of an improper
disclosure by the Contractor of confidential records at its expense. The Contractor shall
maintain all records required to be maintained pursuant to the resulting contract in such
manner as to be accessible by GHS upon demand. Where permitted under applicable law,
access by the public shall be permitted without delay.
MONITORING AND PERFORMANCE REQUIREMENTS
Contractors must comply with the requirements of GHS's contract with reference to
monitoring by GHS. GHS will monitor for compliance on an ongoing basis during the
fiscal year. The Contractor also agrees to fully cooperate with GHS in the conduct of
performance audits as applicable.
10
FINANCIAL AUDIT REQUIREMENTS
Contractors must comply with the requirements of GHS’s contract with reference to
financial audits as applicable.
CONTRACTOR UNIQUE ACTIVITIES
The Contractor shall hold confidential all information relating to GHS personnel, which is
obtained by the Contractor under the resulting contract and shall not use the information
obtained in any manner except as permitted by law.
The Contractor shall be knowledgeable of and in full compliance with all state and federal
laws, rules, and regulations as amended from time to time that affects or may affect the
subject areas of this contract including, but not limited to, the authorities listed in the
applicable sections of this RFP. The Contractor shall request technical assistance from GHS
when deemed necessary to facilitate compliance with these authorities. GHS's failure to
provide such technical assistance does not relieve the Contractor of its responsibilities to
ensure compliance with all state and federal laws, rules and regulations or performance
under the terms of the contract.
11
GENESEE HEALTH SYSTEM BOARD
REQUEST FOR PROPOSAL
FOR PROFESSIONAL EMPLOYER ORGANIZATION (PEO) SERVICES
IV.
BIDDER CRITERIA AND RESPONSE REQUIREMENTS
A. Service Delivery System
1. Bidder shall provide a list of the customers they served during the past two years.
2. Bidder shall provide a list of customer references including company names,
contact names and phone numbers for follow-up. A minimum of four complete
references shall be provided by bidder.
3. Bidder shall describe the technical support services available to GHS along with
any associated costs, if applicable.
4. Bidder shall provide a detailed time-table required to meet each of the six report
deadlines identified within the service description section of this RFP. Bidder
shall specify when they require access to audit data in order to meet the
deadlines established for each report. [GHS’s fiscal year ends September 30th
each year.]
5. Bidder shall demonstrate a proven track record of financial stability.
6. Bidder shall disclose any and all lawsuits, litigation, or sanctions whether
awarded, enforced, or encumbered against or by your company, agency,
directors, owners, or employees within the past 10-years, as could relate to the
provisions of this contract in the providing of Professional Employer
Organization (PEO) Services.
7. Bidder shall describe in detail all background checks to be conducted prior to
placing any audit staff into service, and any on-going checks with their
frequencies.
B. Legal Structure and Financial Viability
1. The bidder shall submit documentation and proof of entity (e.g. IRS 501(c)3
determination); copy of Articles of Incorporation or document under which the
organization is constituted/organized from its inception.
2. The bidder shall include the names, addresses, and titles or representations of all
owners or controlling parties of the organization, whether they are individuals,
partnerships, corporate bodies, or subdivisions of the bodies.
12
3. The bidder shall attach a copy of its Certificate or License (if applicable).
4. The bidder shall attach a Certificate of Workers’ Disability Compensation
insurance coverage.
5. The bidder shall attach a certificate of professional liability (errors and
omissions) in a sum of not less than $1 Million per claim and $1 Million annual
aggregate.
6. The bidder shall attach a certificate of general liability insurance with Broad
Form General Liability Endorsement or equivalent, if not in policy proper,
Provider and Contractual liability coverage with limits of not less than $1
Million per occurrence and $1 Million annual aggregate.
C.
Rate Submission for Service(s) to be provided
1. Proposals must be presented with the following criteria:
a. One year commitment with two, one year options
2. Proposals must represent the total all inclusive cost of providing Professional
Employer Organization (PEO) Services.
13
GENESEE HEALTH SYSTEM BOARD
REQUEST FOR PROPOSAL
FOR PROFESSIONAL EMPLOYER ORGANIZATION (PEO) SERVICES
V. RFP BIDDER COVER SHEET
Bidder Information
Name of Organization:
Address:
Authorized Representative:
Title:
Telephone Number:
Fax Number:
Person(s) to Contact:
1. For the GHS Board representative to ask questions regarding the contents of the
bid packet:
Contact Name:
Title:
Telephone Number:
Email:
Program Services Included in the Proposal:
PROFESSIONAL EMPLOYER ORGANIZATION (PEO) SERVICES
14
GENESEE HEALTH SYSTEM BOARD
REQUEST FOR PROPOSAL
FOR PROFESSIONAL EMPLOYER ORGANIZATION (PEO) SERVICES
VI.
TIME REQUIREMENTS
1) All bidders must indicate the intent to bid to the GHS Contract Management
Department via email at [email protected] no later than 12:00 PM EDT on
March 26, 2015.
2) Questions may be submitted to the GHS Contract Management Department via
email to [email protected] no later than 12:00 PM EDT on March 26, 2015.
3) Questions and answers will be compiled and posted on the GHS website and
emailed to those who indicated their intent to bid by 5:00 PM EDT on March 27,
2015.
4) Final proposals must be received by mail or in person at 420 W Fifth Ave., Flint,
MI, no later than 3:00 PM EDT on April 6, 2015.
15