Start-Up, Other Costs at Stake

In its announcement to bidders, OPM said that it anticipated that a contractor will impose a fee “made on a cost per account basis” for recouping its first-year start-up costs. Afterward, OPM said it anticipates “a fee or fees, made on a cost per account basis, for account maintenance costs. Account maintenance costs are the total recurring costs, both direct and indirect, for administering and operating the FSA program.” The fee could have sub-components, such as a medical account maintenance fee and a dependent care account maintenance fee. The program is to be self-funding and the government will not contribute either toward the start-up costs or to the ongoing maintenance of the program.