Flexible Spending Account (FSA) Account Services

The University of Alaska (“UA”) is seeking a qualified third-party administrator (TPA) to provide comprehensive administration services for its Flexible Spending Accounts (FSA) program supporting benefit-eligible employees across the UA System.

The primary goal of this procurement is to select a qualified Contractor to administer the program for the upcoming five-year contract period, ensuring continuous, high-quality service while pursuing administrative enhancements.

Core Services / Deliverables

• IRC Section 125 Administration: Deliver full third-party administration for Health Care FSA (up to $3,400 election), Limited Purpose FSA (up to $3,400 election), and Dependent Care FSA (up to $7,500 election) in strict compliance with Internal Revenue Code Section 125 regulations.
• Discretionary Claims Adjudication: Accept full discretionary authority to make all claim eligibility determinations, substantiation reviews, and coverage interpretations under applicable IRS rules and UA plan terms.
• Disbursement Options: Provide daily claim processing and multi-channel reimbursement capabilities, including direct deposit to employee bank accounts, direct payment to healthcare/dependent care providers, and default payment processing via card network.
• Automatic Debit Card Issuance: Automatically issue and mail standard debit cards by default to 100% of enrolled participants in the Health Care FSA and Limited Purpose FSA prior to their coverage effective date at no additional fee.
• Plan Document Services: Draft, maintain, and provide complete Section 125 Master Plan Documents, Summary Plan Descriptions (SPDs), and ongoing regulatory amendments upon request at no extra charge.

Technical and Integration Requirements

• File Format Acceptance: Accept and process UA employee demographic, enrollment, and payroll deduction data files in UA’s existing fixed file structures without requiring changes to UA systems or charging initial file setup/reformatting fees.
• Enterprise Access & SSO: Provide cloud-based, secure employer and employee portals featuring Single Sign-On (SSO) integration via SAML 2.0 with mandatory Multi-Factor Authentication (MFA) support.
• Data Transmission: Support automated, scheduled batch file transfers (SFTP) and real-time/daily processing capabilities for enrollment updates and payroll deduction processing.

Implementation

• Data Migration: Successfully migrate historical FSA plan data (covering prior plan years FY16–FY26+) from the incumbent administrator without data loss or corruption.
• Go-live and full operational performance aligned with the University’s benefit administration schedule beginning **July 1, 2027**.

Submission

All Proposals must be uploaded and submitted prior to the “Closing Date” via the **BONFIRE Portal**: https://ua.bonfirehub.com/opportunities. The Owner will NOT accept Proposals in any other manner (i.e. facsimile, email, hardcopy, etc.). The Offeror shall upload and submit *Submittal Forms A-G*. Each file should be submitted in Adobe PDF format.

UA anticipates awarding a contract in January 2027. UA expects the FSA administration services to be structured under a firm-fixed-price per-participant-per-month (PPPM) administrative fee structure. Offered rates shall remain effective for a minimum of three (3) years from the date of contract award.

The contract period is five years.