Income Eligible Re-Procurement Board of Early Education and Care July 14, 2008

Income Eligible Program Background Information The Income Eligible program provides financial assistance to more than 30,000 children from birth to age 13 Financial assistance provides access through vouchers, grants and contracts Contract portion of the program covers nearly 12,000 children, approximately 40% of Income Eligible caseload Has been more than 10 years since Income Eligible contracts were last put out to bid This re-procurement of contracts will bring EEC into compliance with state procurement requirements

Income Eligible Program Contract Spending in Context * Includes contracts for supportive care, teen parents and homeless families.

Income Eligible Program Profile of Contract Providers The agency has Income Eligible contracts with nearly 220 providers in nearly 170 towns statewide Has contracts with three provider types: Group Child Care Family Child Care Systems After School Programs One out of five contract providers uses EEC contracts for most of their available slots

Contract Practices Nationwide Review of Other States More than 20 states report using child care contracts, but only 10 states (including MA) have large contract programs (most dating to 1970s) Estimated 10% to 12% of children receiving assistance nationwide are served through contracts States tend to use contracts in four basic ways: Stabilize Access Extend Day/Year for H.S. Meet Needs of Specific Population Improve Quality Procurement regulations vary across states, with a majority of states using RFP process during procurement but often only used to procure expansion slots Source: Rachel Schumacher, Kate Irish, and Mark Greenberg, Untapped Potential: How States Contract Directly with Providers to Shore Up Child Care Choices, Center for Law and Social Policy, 2003

Income Eligible Re-Procurement Goals Comply with state procurement laws Make policies and practices more equitable Ensure consistent and stable placements Support provider stability Focus on the highest need areas Encourage quality programming Continue building a thriving system

Components of Re-Procurement Topics for Research & Future Board Discussions Integrate Contract Requirements With Other Policy Innovations Streamline Administrative and Fiscal Policies Set Minimum Criteria for Eligible Bidders Establish Methodology for Allocating Contracts Geographically Establish Methodology for Evaluating Bids and Awarding Contracts

Research Phase Topics Being Researched for Future Board Discussions Have already analyzed existing program resources and relative need of communities across the state Conducted survey of family child care systems Reviewing contracting practices in other states Issuing RFI in July to test various policy options Analyzing options for developing contracts that can absorb future policy innovations – e.g., QRIS, rates Reviewing options to streamline EEC administrative and fiscal policies across contracts, vouchers, and grants Developing options for minimum bidder requirements and bidder evaluation criteria Make point that our focus will be to design contracts that can absorb policy innovations as they evolve

Research Update Summary of Community Research EEC has analyzed the following data for more than 350 communities across three age groups: Children below federal poverty level and children on the EEC’s centralized waiting list Capacity for 12,000 licensed providers and more than 450 school-based programs Subsidized capacity across five funding sources including contracts, vouchers, CPC, Head Start and school-based preschool Accountability status of schools in each community Compared relative need in each community with existing subsidized capacity

Research Update Results of Community Research Contracts are distributed equitably across regions Contracts are in high-need communities, with 95% of children on the waiting list and 95% of children below federal poverty living in towns with EEC contracts We are already in communities with highest need, and we know that we need to do more in those communities

Procurement Discussions Preview of Future Board Discussion Topics September Review of family child care systems survey RFR standards for family child care systems Integrating contracts & future policy innovations Workforce, regulatory reform and QRIS October Review of RFI findings Minimum criteria for eligible bidders Streamlining administrative & fiscal polices November Methodology for evaluating bids and awarding contracts Review options for continuity of care

Re-Procurement Timeline