Partnership Arrangement Is Possible

While several major companies operate such programs for private sector employers and only one of them might get the contract award, it’s possible that a partnership of such companies would get the work. That’s what happened in a similar situation when OPM was soliciting companies to administer the Federal Long Term Care Insurance Program, when a partnership of the Metropolitan Life and John Hancock companies won the award. In both cases, a major issue is the capacity to take payments from the varied federal payroll systems. Like the LTC contract, the contract to administer the FSAs would be for seven years.