Performance Based Contracting for Human Service Providers April 10, 2014 Department of Human Services Economic Security Administration
The Problem: The District of Columbia had a growing TANF caseload, and families were languishing on TANF with little movement towards self-sufficiency 92
The Solution Invest in an individualized service model facilitated by a comprehensive individual assessment and supported by intelligent referrals utilizing performance based contracting. 93
The TANF redesign includes several programmatic enhancements Curren ent TEP Rede desig signed ed TEP Primary focus is Federal Work Balanced focus on Work First, First mandate remediation of barriers to employment, educational enhancement, and skills acquisition. Only customers who are referred Orientation and assessment will to vendors receive orientation and be a condition of eligibility assessment Breadth and depth of orientation Comprehensive and standard varies across vendors orientation will be conducted by DHS Assessments are high-level and Centrally administered by DHS, inconsistently administered across assessments will be holistic, vendors rigorous and in-depth 94
The TANF redesign includes several programmatic enhancements (cont.) Curr rren ent TEP Rede desig igned ed TEP Walk-in allowed Walk-ins will be referred back to DHS for orientation and assessment Sanction policy limited to Progressive, graduated sanction removing adult portion of the policy grant Case management services are Individualized, intensive “lightweight” wraparound case management services Vendors compensated for All payments points are tied to assessments and home visits that specific and measurable do not always lead to outcomes outcomes 95
The TANF redesign includes several programmatic enhancements (cont.) Curr rren ent TEP Rede desig igned ed TEP Walk-in allowed Walk-ins will be referred back to DHS for orientation and assessment Sanction policy limited to Progressive, graduated sanction removing adult portion of the policy grant Case management services are Individualized, intensive “lightweight” wraparound case management services Vendors compensated for All payments points are tied to assessments and home visits that specific and measurable do not always lead to outcomes outcomes 96
High-level process: redesigned TEP Customer receives TANF cash assistance DHS makes Customer undergoes eligibility DHS-administered TANF eligible Applicant determination orientation and assessment Customer engages in Customer is Customer is placed in work activities sanctioned employment TEP contractors provide NO DHS refers customer to Barriers to work readiness and job Employment? TEP contractors placement services Customer’s barriers Customers receive DHS refers customer to are addressed and YES customer is now barrier removal and other barrier remediation 97 employable support services service providers
An accountable welfare-to-work program with clear goal and outcomes Goal Move TANF customers towards greater levels of self-sufficiency by assisting them in preparing for, finding, and retaining unsubsidized employment that provide family-sustaining incomes Outcom ome e #1 Outcom ome e #2 Outcom ome e #3 Outcom ome e #4 Outcom ome e #5 Outcom ome e #6 Increase the Increase the Increase the Increase the Increase the Increase the number of number of number of number of number of number of customers customers customers customers customers customers who who meet who gain who secure who retain who move-off overcome work employment high wage their jobs TANF education participation jobs and skill requirements barriers to become employable 98
Vendors’ compensation is heavily tied to achievement of outcomes 3 types of payments to TEP vendor Base Outcome based Cost compensation compensation reimbursement Monthly lump-sum Payment point #1 Outcome #1 Stipends, customer payment based on the incentives and size of the vendor’s discrete work-related Payment point #2 Outcome #2 PIT or caseload expenses Payment point #3 Outcome #3 Payment point #4 Outcome #4 Payment point #5 Outcome #5 99
The compensation is grounded in an extensive cost model 100
Recommendations Grants should allow for Provide flexibility to scale outcome based contracting based on performance Funding model should be full Programs should be designed grants vs matching grants to target “hot jobs” in the area, and include core Meet the provider to competencies for entry level collaborate and continuously positions. improve the program Should have an integrated Should include monitoring person-centered focus. and review, and technical assistance 101
Contact Deborah Carroll, Esq Administrator, Department of Human Services Economic Security Administration 202-698-3906 Deborah.carroll@dc.gov 102
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