1. Income Eligible Re-Procurement
Board of Early Education and Care
September 9, 2008

2. Income Eligible Program Background Information
The Income Eligible program provides financial assistance to more than 30,000 children from birth through 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
School Age 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
Analyzed existing program resources and relative need of communities across the state
Conducted survey of family child care systems and reviewed current systems requirements
Reviewed contracting practices in other states
Developed RFI to test various policy options
Analyzing options for developing contracts that can absorb future policy innovations – e.g., QRIS, rates
Reviewing options to streamline 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 Implications 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. Research Update Family Child Care Systems Overview
Family child care systems provide program and administrative support to family child care providers who want the support of a larger organization offering the following services:
Eligibility & Enrollment Business Assistance Billing Services
Professional Development Home Visitors Transportation
Technical Assistance Backup Child Care Referrals
EEC does not contract directly with individual family child care providers, but instead contracts with systems
Only a few states fund family child care systems, including California, Illinois and Washington, D.C.
67 systems operate in Massachusetts serving ~2,500 providers, caring for an estimated 12,500 children

12. Research Update Family Child Care Systems: Current Standards/ Requirements are Contractual
All requirements and standards for family child care systems are imbedded in the contract with EEC
Revised standards were developed in the 1990s and incorporated into the existing Income Eligible contract
To inform the development of standards and requirements for the forthcoming RFR, EEC conducted a survey of family child care systems

13. Research Update Family Child Care Systems: Survey Findings
Surveyed all systems (response rate of 78%) to gather data in the following areas:
Content of provider agreements and orientations
Administrative and business services
Training and professional development
Home visiting practices
Transportation services
Language and translation
Staffing and spending practices
Systems offer similar services statewide but approach and specific services offered varies
Significant variation among systems in training, professional development, transportation and home visiting services
Many systems exceed the requirements of the existing contract with EEC

14. Research Update Implications of Family Child Care System Survey
To further strengthen the quality of services and provide consistent supports, EEC may want to work with systems to develop family child care system standards
Procurement timeline will only allow for limited modifications/ More time required to develop statewide system standards
For current RFR, continue to embed system requirements within contracts.
Institute minor changes to ensure requirements are consistent with current EEC polices
Initiate collaborative process to develop system standards over long-term

15. Research Update Income Eligible – Request for Information (RFI)
Purpose of RFI is to:
Collect basic program information from providers
Solicit feedback on proposed allocation of contract resources
Test feasibility of proposals to streamline fiscal and reimbursement polices
Test degree of provider compatibility with EEC administrative and technological requirements
Solicit feedback on options related to the structure and terms of the RFR contract
The RFI will be available to group and school age child care providers, family child care providers and systems, and public schools

16. Procurement Discussions Preview of Future Board Discussion Topics
October
Integrating contracts with future policy innovations
Follow-up on family child care systems (if necessary)
Minimum criteria for eligible bidders
November
Review of RFI findings
Allocation of contracts across age groups
Streamlining administrative & fiscal polices
December
Methodology for evaluating bids and awarding contracts
Review options for continuity of care
January
Review RFR Criteria
Vote on RFR

17. Re-Procurement Timeline