Vermont Department of Labor Workers Compensation Modernization

Agency:	State of Vermont
State:	Vermont
Type of Government:	State & Local
NAICS Category:	541611 - Administrative Management and General Management Consulting Services 541612 - Human Resources Consulting Services
Posted Date:	Jan 27, 2026
Due Date:	Feb 24, 2026
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Contact information:	Please Login to View Page
Bid Documents:	Please Login to View Page

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Department of Buildings and General Services

Office of Purchasing & Contracting

133 State Street, 5th Floor | Montpelier VT 05633-8000

802-828-2211 phone |802-828-2222 fax

http://bgs.vermont.gov/purchasing

Agency of Administration

SEALED BID

REQUEST FOR PROPOSAL

Vermont Department of Labor Workers’ Compensation

Modernization

ISSUE DATE

QUESTIONS DUE

RFP RESPONSES DUE BY

January 27, 2026

February 10, 2026 – 4:30 PM (EST)

February 24, 2026 – 4:30 PM (EST)

PLEASE BE ADVISED THAT ALL NOTIFICATIONS, RELEASES, AND ADDENDUMS ASSOCIATED

WITH THIS RFP WILL BE POSTED AT:

http://www.bgs.state.vt.us/pca/bids/bids.php

THE STATE WILL MAKE NO ATTEMPT TO CONTACT INTERESTED PARTIES WITH UPDATED

INFORMATION. IT IS THE RESPONSIBILITY OF EACH BIDDER TO PERIODICALLY CHECK THE

ABOVE WEBPAGEFOR ANY AND ALL NOTIFICATIONS, RELEASES AND ADDENDUMS

ASSOCIATED WITH THIS RFP.

STATE CONTACT:

E-MAIL:

USE SUBJECT:

Kyle Emerson, State Purchasing Agent

sov.thepathforward@vermont.gov

VDOL WORKERS COMP MODERNIZATION

1. OVERVIEW:

1.1. SCOPE AND BACKGROUND: Through this Request for Proposal (RFP) the Agency of Digital Services

on behalf of the Vermont Department of Labor Workers’ Compensation Division (hereinafter the “State”) is

seeking to establish contracts with one or more companies that can provide implementation of a modern

Case and Document Management solution for administering the State’s Workers’ Compensation Program.

1.2. CONTRACT PERIOD: Any Contract(s) arising from this RFP will be for a period of implementation plus 5

YEARS. The State anticipates the start date for such contract(s) will be June 1, 2026.

1.3. SINGLE POINT OF CONTACT: All communications concerning this RFP are to be addressed in writing

to the State Contact listed on the front page of this RFP. Actual or attempted contact with any other

individual from the State concerning this RFP is strictly prohibited and may result in disqualification.

1.4. BIDDERS’ CONFERENCE: A bidders’ conference will not be held.

1.5. QUESTION AND ANSWER PERIOD: Any bidder requiring clarification of any section of this RFP or

wishing to comment on any requirement of the RFP must submit specific questions in writing no later than

the deadline for question indicated on the first page of this RFP. Questions may be e-mailed to the point

of contact on the front page of this RFP. Questions or comments not raised in writing on or before the last

day of the question period are thereafter waived. At the close of the question period a copy of all

questions or comments and the State's responses will be posted on the State’s web site

http://www.bgs.state.vt.us/pca/bids/bids.php . Every effort will be made to post this information as soon as

possible after the question period ends, contingent on the number and complexity of the questions. All

information provided by vendors during this process will be public and bidders shall not provide

confidential information, except as described in 4.1 below.

1.6. CHANGES TO THIS RFP: Any modifications to this RFP will be made in writing by the State through the

issuance of an Addendum to this RFP and posted online at http://www.bgs.state.vt.us/pca/bids/bids.php .

Modifications from any other source are not to be considered.

2. DETAILED REQUIREMENTS/DESIRED OUTCOMES:

2.1. The State of Vermont is interested in obtaining bids to meet the following business need(s): The State

currently generates, receives, and stores vast amounts of paper to administer its Workers’ Compensation

(WC) program. WC uses an outdated image scanning system that is time consuming to scan documents

and inefficient to retrieve them. The department needs a scalable, efficient way to digitize, store, and

retrieve information. We also want to eliminate the need to store/manage paper files and to implement

electronic records retention, both of which will help to minimize our paper storage footprint. The State is

currently working on a scalable scanning solution that the selected vendor may need to integrate with.

In addition, WC needs to replace manual, paper-based workflows with a fully functioning online case

management system for WC claims. The case management system will also allow WC staff to quickly

create and run standard reports for staff, management, and the legislature, as well as ad-hoc reports.

WC needs to migrate from IAIABC EDI Claims 1.0 to 3.1, the standard that governs the submission of

Workers’ Compensation Injury Reports, to become current with the most recent IAIABC standard. WC also

needs assistance managing the business process migration from the 1.0 to 3.1 standard.

2.2. The State of Vermont seeks to achieve the following Business Value(s):

2.2.1. Cost Savings: Over the lifecycle of the new solution, the total costs will be less than the current

solution through a combination of system costs and reduced staff time.

2.2.2. Customer Service Improvement: Implementing both case management and document

management in one, integrated system, to automate current manual and paper-based workflows will

yield faster turnarounds for submissions, ease the burden of manually tracking claims, eliminate

manual data entry errors, and improve WC staff productivity.

2.2.3. Risk Reduction: The new solution will reduce risk to the State.

2.2.3.1. Implementing a system for digitizing and digitally storing department documents is a more

sustainable solution than the current practice of storing paper files. Digitally storing files allows

for backup of data for continuity of operations, where there is no ability to backup paper files

(i.e. no recovery from fire or flood).

2.2.3.2. Implementing a new case and document management system, replacing existing WC IT

systems that are outdated, unsupported, and are either at risk for failure or currently failing,

drastically reduces, or removes, the risk of disrupting business operations due to systems’

failures.

2.2.4. Compliance: The new solution will ensure WC is compliant with State regulations.

2.2.4.1. The new system will allow WC to quickly run reports to fulfill legislative requests for program

information.

2.2.4.2. Migrating to IAIABC EDI Claims 3.1 will bring WC up to the current version of the IAIABC

claims’ standard.

2.3. Functional and Non-Functional Requirements

2.3.1.The State’s Functional and Non-Functional Requirements are provided in the attached State of

Vermont Bidder Response Form (Exhibit C).

2.3.2.The Non-Functional Requirements include requirements for the following:

2.3.2.1. Hosting

2.3.2.2. Application Solution

2.3.2.3. Security

2.3.3.Data Compliance: Solutions must adhere to applicable State standards, policies, and laws. The

Bidder Response Form includes a table of data types and their applicable State standards, policies,

and laws. The boxes in the table that are checked are the ones that are applicable to this

procurement

2.3.4.Included in this project will be the conversion of our existing user accounts and data from the current

systems into the new Case Management system. The new Case Management vendor must work

with the State to convert the data. There will be some data transformation needed where a data point

was changed, and the existing accounts have no data or different data. Digital files are split across

SharePoint, OneDrive, and a network drive mostly containing images (jpg, png, tiff, etc), word

documents, videos, emails, and PDF files. Total size estimate for file migration is around 100 GB and

100,000 files. Data (not including files) is stored in multiple databases, with the following breakdown:

Database

WC Case Management

EDI Transaction Log

Hearing Docket

Exclusions

Denials/Discontinuances

Tracking

File Tracking

Mental Health Claims

Voc Rehab Tracking

Type

Unify DB

MS SQL

MS Access (mdb)

Size on

Disk

600 MB

1152 MB

23 MB

10 MB

# Tables

TTL Cols

216

675

140

TTL

Rows

6909434

1988829

113021

56929

Growth

per Year

2.30%

MS Access (mdb)

MS Access (accdb)

MS Access (mdb)

11 MB

54 MB

2 MB

31 MB

168 47359

<1%

21 684223

405

<1%

242 226755

2.3.5. Microsoft Azure DevOps shall be used to record and manage requirements (Epics, User Stories,

Acceptance Criteria, Business Rules, Test cases and more), and administer testing of the

product. The State's instance of Azure DevOps is the source of truth for all business requirements

and test case execution.

2.3.6. The Contractor shall follow business analysis methodologies as directed by the State and that are

consistent with the International Institute of Business Analysis(IIBA) Business Analysis Book of

Knowledge (BABOK).

3. GENERAL REQUIREMENTS:

3.1. PRICING: Bidders must price the terms of this solicitation at their best pricing. Any and all costs that

Bidder wishes the State to consider must be submitted for consideration. If applicable, all equipment

pricing is to include F.O.B. delivery to the ordering facility. No request for extra delivery cost will be

honored. All equipment shall be delivered assembled, serviced, and ready for immediate use, unless

otherwise requested by the State.

3.1.1.Prices and/or rates shall remain firm for the initial term of the contract. The pricing policy submitted by

Bidder must (i) be clearly structured, accountable, and auditable and (ii) cover the full spectrum of

materials and/or services required.

3.1.2.Cooperative Agreements. Bidders that have been awarded similar contracts through a competitive

bidding process with another state and/or cooperative are welcome to submit the pricing in response

to this solicitation.

3.2. STATEMENT OF RIGHTS: The State shall have the authority to evaluate Responses and select the

Bidder(s) as may be determined to be in the best interest of the State and consistent with the goals and

performance requirements outlined in this RFP. The State of Vermont reserves the right to obtain

clarification or additional information necessary to properly evaluate a proposal. Failure of bidder to

respond to a request for additional information or clarification could result in rejection of that bidder's

proposal. To secure a project that is deemed to be in the best interest of the State, the State reserves the

right to accept or reject any and all bids, in whole or in part, with or without cause, and to waive

technicalities in submissions. The State also reserves the right to make purchases outside of the awarded

contracts where it is deemed in the best interest of the State.

3.2.1.Best and Final Offer (BAFO). At any time after submission of Responses and prior to the final

selection of Bidder(s) for Contract negotiation or execution, the State may invite Bidder(s) to provide a

BAFO. The state reserves the right to request BAFOs from only those Bidders that meet the minimum

qualification requirements and/or have not been eliminated from consideration during the evaluation

process.

3.2.2.Presentation. An in-person presentation by the Bidder may be required by the State if it will help the

State’s evaluation process. The State will factor information presented during presentations into the

evaluation. Bidders will be responsible for all costs associated with providing the presentation.

3.3. CONFLICTS OF INTEREST:

3.3.1.Organizational Conflict of Interest (OCOI): An OCOI arises when a bidder as a business entity has

interests (for example, customers, partners, contracts) that could undermine, or reasonably be

perceived to undermine, its faithful and unbiased performance of a contract with the State that may

result from this solicitation.

3.3.2. Personal Conflict of Interest (PCOI): A PCOI arises when an interest held by an individual, agent

or employee of a bidder could undermine, or reasonably be perceived to undermine, its faithful and

unbiased performance of a contract with the State that may result from this solicitation.

3.3.3. Requirements: The State does not seek to contract with any individual or business entity having a

conflict of interest which cannot be mitigated to the State’s satisfaction. To ensure the State’s

awareness of actual, potential, or reasonably perceived PCOIs and OCOIs, bidders shall:

a) Prior to submitting a proposal, conduct an internal review of its current affiliations and activities and

identify actual, potential, or reasonably perceived PCOIs or OCOIs relative to a contract with the State

that may result from this solicitation.

b) Disclose in your proposal any actual or potential PCOI or OCOI or the existence of any facts that

may cause a reasonably prudent person to perceive a PCOI or OCOI with respect to a contract with

the State that may result from this solicitation. Disclose, also, any actions proposed to mitigate the

PCOI or OCOI.

3.3.4.The State shall have sole discretion to determine whether a PCOI or OCOI can be mitigated to the

State’s satisfaction and may discuss the conflict with the bidder if and to the extent the State deems

discussion necessary to its determination. The State reserves the right to (a) reject from further

consideration any proposal having a PCOI or OCIO that cannot be mitigated to the State’s full

satisfaction and (b) terminate a contract upon discovery that a contractor failed to disclose facts

pertaining to a PCOI or OCOI in its proposal, or otherwise misrepresented relevant information to the

State.

3.4. WORKER CLASSIFICATION COMPLIANCE REQUIREMENTS: In accordance with Section 32 of The

Vermont Recovery and Reinvestment Act of 2009 (Act No. 54), Bidders must comply with the following

provisions and requirements.

3.4.1.Self Reporting: For bid amounts exceeding $250,000.00, Bidder shall complete the appropriate

section in the attached Certificate of Compliance for purposes of self-reporting information relating to

past violations, convictions, suspensions, and any other information related to past performance

relative to coding and classification of workers. The State is requiring information on any violations

that occurred in the previous 12 months.

3.4.2.Subcontractor Reporting: For bid amounts exceeding $250,000.00, Bidders are hereby notified that

upon award of contract, and prior to contract execution, the State shall be provided with a list of all

proposed subcontractors and subcontractors’ subcontractors, together with the identity of those

subcontractors’ workers compensation insurance providers, and additional required or requested

information, as applicable, in accordance with Section 32 of The Vermont Recovery and

Reinvestment Act of 2009 (Act No. 54). This requirement does not apply to subcontractors providing

supplies only and no labor to the overall contract or project. This list MUST be updated and provided

to the State as additional subcontractors are hired. A sample form is available online at

http://bgs.vermont.gov/purchasing-contracting/forms. The subcontractor reporting form is not

required to be submitted with the bid response.

3.5. EXECUTIVE ORDER 05-16: CLIMATE CHANGE CONSIDERATIONS IN STATE PROCUREMENTS:

For bid amounts exceeding $25,000.00 Bidders are requested to complete the Climate Change

Considerations in State Procurements Certification, which is included in the Certificate of Compliance for

this RFP.

After consideration of all relevant factors, a bidder that demonstrates business practices that promote

clean energy and address climate change as identified in the Certification, shall be given favorable

consideration in the competitive bidding process. Such favorable consideration shall be consistent with

and not supersede any preference given to resident bidders of the State and/or products raised or

manufactured in the State, as explained in the Method of Award section. But, such favorable

consideration shall not be employed if prohibited by law or other relevant authority or agreement.

3.6. METHOD OF AWARD: Awards will be made in the best interest of the State. The State may award one

or more contracts and reserves the right to make additional awards to other compliant bidders at any time

if such award is deemed to be in the best interest of the State. All other considerations being equal,

preference will be given first to resident bidders of the state and/or to products raised or manufactured in

the state, and then to bidders who have practices that promote clean energy and address climate change,

as identified in the applicable Certificate of Compliance.

3.6.1.Evaluation Criteria: Consideration shall be given to the Bidder’s project approach and methodology,

qualifications and experience, ability to provide the services within the defined timeline, cost, and/or

success in completing similar projects, as applicable, and to the extent specified below.

Evaluation Factors

Contractor Profile: Experience, Financial Strength, References (Bidder

Response Form Part 1). Experience with Workers’ Compensation

including State regulations and best practices, data collection

requirements, and program reporting requirements.

Contractor Industry Knowledge: Evidence of competency in this

industry including knowledge and experience with Workers’ Compensation

Total Points for

This Factor

This page summarizes the opportunity, including an overview and a preview of the attached documents.

TITLE	QUESTIONS DUE	ANSWERS POSTED	DUE DATE	NO POSTING AFTER
Vermont Department of Labor Workers Compensation Modernization Bidder Response Form	02/10/2026 04:30PM		02/24/2026 04:30PM

Vermont Department of Labor Workers Compensation Modernization

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