1. 2008 Re-procurement of Income Eligible Contracts EEC Board Meeting January 8, 2008

2. 2 All EEC Contracts Contract Type# of Providers FundingChildren Served Re- procurement Income Eligible – Center Based 164$56.7M11,925 Income Eligible Flex Pool 216$7.2M1,000 Family Child Care52$33M1,000 Supportive133$52.3M4,061 Homeless10$1.0M85 Non-traditional Hours 6$780K64 Teens39$7.4M517 Access Management 15$11.5M33,511

3. 3 Provider Research Provider Reliance on EEC Contracts Nearly 220 providers have contracts with EEC at more than 700 sites EEC purchases an average of 33% of licensed capacity in programs with contracts Nearly one in five contracted providers contracts with EEC for 75% or more of their licensed capacity Of the providers with contracts, about 80% have vouchers and 25% have CPC-funded slots (FY07 Data) EEC purchases about half of the capacity in contract programs with contracts, vouchers and CPC funding

4. 4 Goals for 2008 Re-procurement Comply with state procurement laws Make policies and practices more equitable Ensure consistent and stable placements Support provider stability Target expansion to highest need areas Encourage quality programming Continue building a thriving system.

5. 5 Strategic System Building Supporting Program Excellence Increasing Parent Access & Affordability Building a Thriving State System

6. 6 Strategic System Building Through EEC Funding

7. 7 2008 Income Eligible Re-procurement What’s Not Changing Procure contracts for specific age groups Maintain contract award allocations by region/community Allow providers to continue to serve current families regardless of EEC funding stream Allow eligible families to continue current placement regardless of EEC funding stream

8. 8 2008 Income Eligible Re-procurement Highlights of Proposed Key Changes Provide vouchers to maintain placements if contract award is reallocated elsewhere Phase in simplified single on-line billing and payment system for EEC contracts and vouchers Reconcile hours of care families are eligible for across contracts and vouchers Provide consistent provider reimbursement policies across contracts and vouchers Use waiting list, capacity (licensed and subsidized), population, and poverty data to identify highest need areas for expansion IF applicant pool exceeds available funding, use quality criteria as part of selection process

9. 9 Additional Issues Being Considered Enter into direct contracts with independent family child care providers? Separate family child care system contracts into two parts: direct services and quality supports? Need to balance mix of contract, grant, and voucher funding for individual provider stability and parent choice? If no new funding is available through FY09 budget, reconsider goals for RFR?

10. 10 Procurement Process Steps Procurement management team meets to review policies and practices. EEC briefs Board and Advisory Team on process. Conduct Request for Information (RFI) for Income Eligible and Survey of Family Child Care Systems. Board review RFI data and reviews proposed RFR criteria. Board votes on final RFR; EEC issues RFR. Bidders review RFR and submit on-line questions. EEC conducts conference calls responding to bidder questions. All questions and answers shared publicly. Bidders’ submit responses to EEC. EEC evaluates bids. EEC notifies Board and providers of contract award decisions. Contracts begin. GOAL: Summer 2008 awards, Fall 2008 start date