1230559 Notice of Emergency and Proposed Rulemaking - Amending the payments that the DHS shall make to the District of Columbia’s providers of employment services in support of the District’s redesign of its Temporary Assistance for Needy Families ...
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OFFICE OF CONTRACTING AND PROCUREMENT
NOTICE OF EMERGENCY AND PROPOSED RULEMAKING
The Chief Procurement Officer of the District of Columbia (CPO), pursuant to authority granted by sections 204 and 1106 of the Procurement Practices Reform Act of 2010, effective April 8, 2011, D.C. Law 18-371, D.C. Official Code § 2-351.01 et seq. (58 DCR 1185 (February 11, 2011)) (Act), hereby gives notice of the adoption of the following emergency rules and of the intent to adopt final rulemaking to revise chapters 16, Competitive Sealed Proposals, and 19, Contracting for Services, of title 27, Contracts and Procurement, of the District of Columbia Municipal Regulations (DCMR).
The purpose of these revisions is to amend the payments that the Department of Human Services (DHS) shall make to the District of Columbia’s providers of employment services (hereinafter referred to as “Contractors”) in support of the District’s redesign of its Temporary Assistance to Needy Families (TANF) Employment Program (TEP). DHS has redesigned TEP to enhance the ability of the TANF customer (hereinafter referred to as “Customer”) to build his or her capacity while meeting his or her work participation requirements, increase his or her earnings and transition from welfare assistance to self-sufficiency. DHS will be engaging new Contractors and has revised the Contractor compensation and Customer incentives structure to drive improved outcomes. Prices paid for the Contractor’s services shall be fixed for the duration of the contract. Section 1614 and new section 1909 provide the CPO the authority to set payments to Contractors to reflect the revamped Contractor compensation structure and shall apply whether the Contractors are engaged under the procurement procedures set forth in chapter 16 or chapter 19 of title 27.
Emergency rulemaking action, pursuant to section 6(c) of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1206; D.C. Official Code
§ 2-505(c)(2006 Repl.)), is necessary to ensure continuity of the District’s federally mandated services that assist TANF Customers in enhancing their education and skill levels and in preparing for, finding, and retaining unsubsidized employment in order to ultimately earn family-sustaining incomes. These emergency rules will remain in effect for up to one hundred twenty (120) days from the date of adoption (May 18, 2011) or upon publication of a Notice of Final Rulemaking in the D.C. Register, whichever occurs first.
Title 27, CONTRACTS AND PROCUREMENTS, of the DCMR is amended as follows:
Chapter 16 (Procurement by Competitive Sealed Proposals) of title 27 (Contracts and Procurement) of the DCMR is amended as follows:
Section 1614 (Source Selection) is amended as follows:
Subsection 1614.1(c) is amended to read as follows:
(c) Notwithstanding (a) and (b) above, for services provided under the District’s Temporary Assistance to Needy Families (TANF) Program, implementing the Self-sufficiency Promotion Amendment Act of 1998 (D.C. Law 12-241), the Director sets the following prices to be paid to contractors selected through the solicitation, and no price evaluation factor will be required for procurement of these services:
(1) Work Readiness and Placement Services
(A) Base compensation - The District shall make the monthly base payments set out in the table below depending on the contractor’s number of not-employed Point-In-Time (PIT) caseload:
Not-employed PIT
Monthly Base Compensation
150
$34,000
300
$54,000
450
$75,000
600
$82,000
750
$103,000
900
$110,000
(B) Outcome-based compensation - The District shall pay the outcome-based compensation set out in the following table based on the contractor’s achievement of specific outcomes:
Outcomes
Performance Standard
Incentive
Payment Point 1: Education or training program completion payment
A not-employed customer completes the education or training program(s) specified in the customer’s Individual Responsibility Plan (IRP). Upon verification of the successful completion of the education or training program(s), the contractor determines that the customer is employable and is eligible to receive Job Placement Services.
$400 per customer who meets the performance standard for Payment Point 1.
The District shall pay the contractor a maximum of one education or training program completion payment per customer who meets the performance standard per 12-month calendar period.
Outcomes
Performance Standard
Incentive
Payment Point 2: Participation payment
A not-employed customer meets his or her full monthly participation requirements, through a combination of approved core and non-core TANF activities.
$200 per month per customer who meets the performance standard for Payment Point 2.
Payment Point 3: Work placement payment
The contractor places a customer in unsubsidized employment.
Payment shall be made to the contractor when the customer successfully completes two weeks of work and has fully met his or her work participation requirements for those two weeks.
Participation weeks do not have to be consecutive.
$400 per customer who obtains unsubsidized work either within four months of the education and work slot completion date or while still engaged in an education or work slot.
$200 per customer who obtains unsubsidized work more than four months after the education and work slot completion date.
The District shall pay the contractor a maximum of two work placement payments per customer per 12-month calendar period; however, should the contractor be eligible for two work placement payments of $400 each in a 12-month calendar period, the contractor shall be limited to only one $400 payment, with the second one being a $200 payment.
Payment Point 4: Higher wage payment
The contractor places a customer in unsubsidized employment, where the customer’s wages exceed an amount equal to $2.50 per hour less than the District’s Living Wage rate.
Payment shall be made to the contractor when the customer successfully completes two weeks of work and has fully met his or her work participation requirements for those two weeks.
Participation weeks do not have to be consecutive.
$300 per customer who meets the performance standard for Payment Point 4.
The District shall pay the contractor a maximum of two higher wage payments per customer per 12-month calendar period.
Outcomes
Performance Standard
Incentive
Payment Point 5: Employment retention payment
A customer who is placed in unsubsidized employment by the contractor meets his or her full monthly participation requirements through a combination of core and non-core TANF activities.
$400 per month per customer who meets performance standard for Payment Point 5.
The District shall pay the contractor a maximum of six employment retention payments (six months of full participation) per customer per 12-month calendar period. Participation months do not have to be consecutive.
(C) Reimbursable costs - The District shall reimburse the contractor the following amounts for allowable incentives, stipends and discrete work-related expenses for which the contractor can provide documentation:
(i) Education or training program(s) completion incentives: Three hundred dollars ($300) per customer who completes the education or training program(s) specified in the customer’s IRP, is subsequently determined employable by the contractor, and becomes eligible to receive Job Placement Services; limited to one (1)such incentive per customer per twelve (12)-month calendar period.
(ii) Employment retention incentives: A total incentive payment not to exceed one thousand two hundred fifty dollars ($1,250) per customer per twelve (12)-month calendar period; for a customer who enters unsubsidized employment, and retains the unsubsidized job for six (6) months. The employment retention incentives shall be calculated as follows:
a. Two (2)-week employment retention incentive: One hundred fifty dollars ($150) when the customer enters an unsubsidized job and works for at least two (2) weeks and has met his or her full work participation requirements over these two (2) weeks. Participation weeks do not have to be consecutive.
b. One (1)-month employment retention incentive: One hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for one (1) month.
c. Two(2)-month employment retention incentive: One hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for two (2) months. Participation months do not have to be consecutive.
d. Three (3)-month employment retention incentive: One hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for three (3) months. Participation months do not have to be consecutive.
e. Four (4)-month employment retention incentive: One hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for four (4) months. Participation months do not have to be consecutive.
f. Five (5)-month employment retention incentive: One hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for five (5) months. Participation months do not have to be consecutive.
g. Six (6)-month employment retention incentive: Five hundred dollars ($500) when the customer retains the unsubsidized job and has met his or her full work participation requirements for six (6) months. Participation months do not have to be consecutive.
(iii) Stipends: Ten dollars ($10) per day per customer who participates in approved core and non-core TANF activities for at least four (4) hours per day. Stipends shall not be reimbursed for customers once he or she enters unsubsidized employment and has received his or her first paycheck.
(iv) Discrete work-related expenses: No more than two hundred fifty ($250) per customer per twelve (12)-month calendar period for actual allowable costs to enable the customer to defray significant, discrete customer work-related expenses such as obtaining a medical test not covered by Medicaid or purchasing uniforms for customers who have a firm job offer. The total discrete work-related expense shall not exceed two hundred fifty ($250) per customer per twelve (12)-month calendar period, unless pre-approved in writing by DHS.
(2) Job Placement Services
(A) Base compensation - The District shall make the monthly base payments set out in the table below depending on the contractor’s not-employed PIT:
Not-employed PIT
Monthly Base Compensation
150
$18,000
300
$19,000
450
$19,000
600
$12,000
750
$12,000
900
$6,000
(B) Outcome-based compensation - The District shall pay the outcome-based compensation set out in following table based on the contractor’s achievement of specific outcomes:
Outcomes
Performance Standard
Incentive
Payment Point 1: Education or training program completion payment
This payment point is not applicable to the Job Placement Services solicitation.
This payment point is not applicable to the Job Placement Services solicitation.
Payment Point 2: Participation payment
A not-employed customer meets his or her full monthly participation requirements, through a combination of approved core and non-core TANF activities.
$150 per month per customer who meets the performance standard for payment point 2.
Payment Point 3: Work placement payment
The contractor places a customer in unsubsidized employment.
Payment shall be made to the contractor when the customer successfully completes two weeks of work and has fully met his or her work participation requirements for those two weeks.
Participation weeks do not have to be consecutive.
$400 per customer who obtains unsubsidized work within three months of the date DHS referred the customer to the contractor.
$200 per customer who obtains unsubsidized work more than three months after the date DHS referred the customer to the contractor.
The District shall pay the contractor a maximum of two work placement payments per customer per 12-month calendar period; however, should the contractor be eligible for two work placement payments of $400 each in a 12-month calendar period, the contractor shall be limited to only one $400 payment, with the second one being a $200 payment.
Outcomes
Performance Standard
Incentive
Payment Point 4: Higher wage payment
The contractor places a customer in unsubsidized employment, where the customer’s wages exceed an amount equal to the District’s Living Wage rate.
Payment shall be made to the contractor when the customer successfully completes two weeks of work and has fully met his or her work participation requirements for those two weeks.
Participation weeks do not have to be consecutive.
$300 per customer who meets the performance standard for Payment Point 4.
The District shall pay the Contractor a maximum of two higher wage payments per customer per 12-month calendar period.
Payment Point 5: Employment retention payment
A customer who is placed in unsubsidized employment by the contractor meets his or her full monthly participation requirements through a combination of core and non-core TANF activities.
$300 per month per customer who meets the performance standard for Payment Point 5.
The District shall pay the Contractor a maximum of six employment retention payments (six months of full participation) per customer per 12-month calendar period. Participation months do not have to be consecutive.
(C) Reimbursable costs - The District shall reimburse the contractor the following amounts for allowable incentives, stipends and discrete work-related expenses for which the contractor can provide documentation:
(i) Employment retention incentives: A total incentive payment not to exceed one thousand two hundred fifty dollars ($1,250) per customer per twelve (12)-month calendar period; for each customer who enters unsubsidized employment, and retains the unsubsidized job for six (6) months. The employment retention incentives shall be calculated as follows:
a. Two (2)-week employment retention incentive: one hundred fifty dollars ($150) when the customer enters an unsubsidized job and works for at least two (2) weeks and has met his or her full work participation requirements over these two (2) weeks. Participation weeks do not have to be consecutive.
b. One (1)-month employment retention incentive: one hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for one (1) month.
c. Two (2)-month employment retention incentive: one hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for two (2) months. Participation months do not have to be consecutive.
d. Three (3)-month employment retention incentive: one hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for three (3) months. Participation months do not have to be consecutive.
e. Four (4)-month employment retention incentive: one hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for four (4) months. Participation months do not have to be consecutive.
f. Five (5)-month employment retention incentive: one hundred twenty dollars ($120) when the customer retains the unsubsidized job and has met his or her full work participation requirements for five (5) months. Participation months do not have to be consecutive.
g. Six (6)-month employment retention incentive: five hundred dollars ($500) when the customer retains the unsubsidized job and has met his or her full work participation requirements for six (6) months. Participation months do not have to be consecutive.
(ii) Stipends: ten dollars ($10) per day per customer who participates in approved core and non-core TANF activities for at least four (4) hours per day. Stipends shall not be reimbursed for customers once he or she enters unsubsidized employment and has received his or her first paycheck.
(iii) Discrete work-related expenses: No more than two hundred fifty dollars ($250) per customer per twelve (12)-month calendar period for actual allowable costs to enable the customer to defray significant, discrete customer work-related expenses such as obtaining a medical test not covered by Medicaid or purchasing uniforms for customers who have a firm job offer. The total discrete work-related expense shall not exceed two hundred fifty ($250) per customer per twelve (12)-month calendar period, unless pre-approved in writing by DHS.
Section 1699 (Definitions) is amended as follows:
Subsection 1699.1 is amended by adding the following definitions:
Base compensation: A fixed monthly payment that the District pays the providers of employment services in support of the District’s TANF Employment Program for performing specific duties and delivering specific services. Base compensation varies depending on the size of the provider’s not-employed PIT.
Individual Responsibility Plans (IRP): A written agreement developed jointly by a TANF customer and the providers of employment services in support of the District’s TANF Employment Program that acts as the customer’s roadmap to securing employment and becoming self-sufficient. The IRP outlines specific steps that the customer agrees and commits to take in order to address and remove barriers, and find and retain employment.
Outcome-based compensation: A variable monthly payment that the District pays the providers of employment services in support of the District’s TANF Employment Program for achieving outcomes defined by the District. The outcome-based payment varies depending on the number of payment points that the provider achieves and the volume of outcomes within each payment point.
Payment point: Payment point refers to elements of the TANF employment services provider’s incentive compensation. The compensation is structured to encourage the provider to deliver distinct results or outcomes. Achievement of each outcome triggers a specific payment amount. Payments points are independent of each other. Consequently, it is feasible for the provider to achieve more than one (1) payment point for a given customer in any given month.
Point-In-Time caseload (PIT): Also referred to as caseload, is the number of TANF customers (or cases) that the provider of employment services in support of the District’s TANF Employment Program is serving in a given period or at any given time. The provider shall be managing two (2) types of PIT:
(a) a not-employed PIT (such as a caseload of not-employed TANF customers); and
(b) an employed PIT (such as a caseload of employed customers).
Chapter 19 (Contracting for Services) of title 27 (Contracts and Procurement) of the DCMR is amended as follows:
Add a new section 1909 to read as follows:
1909 HUMAN CARE AGREEMENTS UNDER THE TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF) PROGRAM
1909.1 The Director sets the prices established in § 1614.1(c) of this title, to be paid to contractors selected through the human care procurement method for services provided under the District’s Temporary Assistance to Needy Families (TANF) Program, implementing the Self-sufficiency Promotion Amendment Act of 1998 (D.C. Law 12-241).
All persons desiring to comment on the subject matter of this proposed rulemaking should submit comments, in writing, to the Chief Procurement Officer, 441 4th Street, 700 South, Washington, D.C. 20001. Comments must be received no later than thirty (30) days after the date of publication of this notice in the D.C. Register. A copy of this proposed rulemaking may be obtained at the same address.
