OPM soliciting dental and vision contracts

The Office of Personnel Management took a significant step Tuesday toward offering supplemental dental and vision coverage to federal employees.

OPM posted a synopsis of its solicitation for dental and vision contracts on the FedBizOpps Web site, the government's portal for procurement opportunities valued at more than $25,000.

A full solicitation for contract applications is scheduled to be published Sept. 16, with bids due Nov. 16, according to the announcement.

The proposal's timeline aims toward a rollout date for the program of July 2006. Last week, an OPM spokesman said that delaying the system has "never been any thought that we've entertained." But OPM said in the synopsis issued Tuesday that it is soliciting input from potential vendors on pushing the start date back to December 2006.

In floating the six-month delay, OPM cites "concerns about a mid-year start date [including] potential increased underwriting risk and/or low enrollment for the initial six-month enrollment period." Also, OPM said it may be preferential to have a December start date to make the program "more compatible with other federal employee benefit programs that operate on a calendar year cycle."

In its synopsis, OPM said the agency may award multiple contracts for the benefits, and encourages companies to submit applications on their own or as part of a consortium. That statement would make it possible for regional contractors to submit proposals.

In a letter to OPM Director Linda Springer on July 14, Reps. Tom Davis, R-Va., chairman of the House Government Reform Committee, and Jon Porter, R-Nev., chairman of its Subcommittee on the Federal Workforce and Agency Organization, asked Springer to include regional health plans in its request for proposals. Springer wrote a reply letter indicating that she would.

The FedBizOpps announcement also stated that OPM will post a draft statement of work for comment on its Web site on Aug. 25. Potential vendors' comments must be submitted by Sept. 6.

The supplemental health coverage was mandated by Congress in the 2004 Federal Employee Dental and Vision Benefits Enhancement Act. The dental and vision offerings will be voluntary, and agencies will not contribute to the plans.

OPM said the base period for contracts will be seven years, with additional option periods also consisting of seven years. The government will not award a single company the contract, but will instead grant several contracts and allow employees to pick their supplier. OPM will award contracts based on a best-value determination.