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

2. 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

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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. Re-Procurement Timeline