RFP 25-3021 - Alternative Methodology

Background
The California Department of Social Services (CDSS) is issuing RFP 25-3021 to assess the adequacy of the State's subsidized child care reimbursement rates and conduct an updated cost analysis using an alternative methodology. This initiative is part of the rate-setting process required by federal regulations under the Child Care and Development Fund (CCDF), which mandates states to evaluate their reimbursement rates every three years. The goal is to transition from a market rate survey approach to a cost-based alternative methodology that reflects the actual costs of providing child care services across California's mixed-delivery system.

Work Details
The contractor will be responsible for:

1. Assessing the adequacy of subsidized child care reimbursement rates in California.

2. Conducting a comprehensive cost analysis using an alternative methodology, which may include gathering point-in-time data about providers' operational costs or developing a cost estimation model.

3. Updating data elements used in the cost estimation model for the alternative methodology.

4. Delivering a final report summarizing findings and recommendations based on the analysis conducted, which must be submitted by July 1, 2027, as part of the FFY 2028-2030 CCDF State Plan.

Period of Performance
The anticipated term of the resulting Agreement is from June 1, 2026, or upon approval by DGS, for a period not to exceed 36 months.

Place of Performance
Services will primarily be performed in California, with specific locations determined by the contractor's operational capacity.

Bidder Requirements
Proposers must have:

1. A minimum of five years of recent experience in conducting similar cost surveys or federal/state survey projects affecting public resource disbursement.

2. A legal business entity status in California with good standing verified by the Secretary of State.

3. Commitment to using federally approved methodologies for cost analysis.

4. A minimum participation goal of at least three percent (3%) for Disabled Veteran Business Enterprise (DVBE) participation.