Procurement and contracts. Every vendor, scored and on the record.

Your plan's vendors decide most of what it costs. Ethos Fiduciary Procurement is how we choose them: a standardized RFP, every bid scored on its answers and on its contract terms, the contract negotiated before anything is signed, and the vendor measured against its promises every quarter, all documented for your committee.

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What you get.

Most vendor decisions are made by comparing renewal quotes, and the contract is signed as written. The contract is where the vendor's incentives and your plan's protections are actually set.

Requirements set with your committeeWhat the plan needs from the vendor, what it must not do, and how bids will be weighted, agreed before any vendor is contacted.
A standardized RFPEvery bidder answers the same scored questions and responds to the same contract terms, so the bids can be compared fairly.
Weighted scoringAnswers and contract terms are scored separately and then combined, using weights your committee sets in advance.
Negotiation and redlinesThe finalist contract marked up clause by clause, with the plan-protective language to negotiate and the reason for each change.
ImplementationFile feeds, data access, communications and transition of care handled so the change is invisible to employees where it should be.
Ongoing monitoringEach vendor scored against its contract every quarter, with service levels and performance guarantees reconciled.

The seven steps.

Step	What happens	What your committee gets
1. Requirements	Your plan’s needs, limits and scoring weights, agreed with the committee	A written scope for the RFP
2. RFP	A standardized questionnaire and the contract terms, sent to qualified bidders	One comparable set of answers
3. Scoring	Answers and contract terms scored separately, then combined	A ranked evaluation report
4. Finalists	Follow-up questions, references and contract positions	A short list with the trade-offs
5. Negotiation	The chosen vendor’s contract redlined and negotiated	Plan-protective terms, in writing
6. Implementation	Data, file feeds, communications and transition	A clean start date
7. Monitoring	Service levels and guarantees measured every quarter	A scorecard in every committee meeting

How bids are scored.

A vendor can answer every question well and still offer a contract that protects itself instead of your plan. So the questionnaire and the contract are scored separately.

In a recent PBM procurement, seven PBMs answered 43 questions across 11 topic areas and responded to 29 contract terms. Each answer was scored from 1 to 5 and weighted by topic, and the overall score blended the questionnaire (60%) with the contract terms (40%). The weights change with your plan’s priorities. The method doesn’t.

What it covers.

Why it matters.

Choosing and monitoring service providers is one of a plan fiduciary’s core duties, and ERISA judges it on process. A scored, documented procurement is the record that shows your committee chose prudently and paid only reasonable fees. Read what the duty requires.

Part of your Fiduciary Framework™.

Every Ethos service reports to your benefits committee. The work is reviewed at your quarterly committee meeting, each decision is recorded with the reasoning behind it, and the record lives in your Ethos Fiduciary OS. That is what lets your committee show the plan was run prudently.

See the Fiduciary Framework™ · How fiduciary governance works

Questions employers ask about this.

How long does procurement take?

For a renewal, Ethos starts marketing at least six months before the effective date, so there is time to score bids, negotiate the contract and implement without rushing. A single-vendor review can run at any point in the year.

Do we have to change vendors?

No. Often the best result is a better contract with the vendor you already have. Procurement gives your committee the evidence to decide either way, and the reasoning is recorded.

What does our committee receive?

An evaluation report with every bidder ranked, the scores behind the ranking, the contract terms each bidder accepted or rejected, and a recommendation, plus the redlined contract for the vendor you choose.

Which vendors does it cover?

PBMs, third-party administrators, stop-loss carriers, direct contracts and specialty health programs, and life, disability, absence, dental, vision and voluntary carriers.

See what your plan is really costing you.

A Strategic Analysis starts with your plan documents and your broker agreement, then shows you what your plan costs, where the risk sits, and what a committee would decide with the full picture.

Request a Strategic Analysis Call (407) 803-4710