RFP 25-3021 - Alternative Methodology

The contract solicitation (RFP 25-3021, Solicitation Number 0000037189) issued by the California Department of Social Services (CDSS) seeks proposals to assess the adequacy of California’s subsidized child care reimbursement rates and to conduct an updated cost analysis using an alternative methodology as part of the state’s rate-setting process. This effort supports California’s preparation for the FFY 2028-2030 Child Care and Development Fund (CCDF) State Plan submission and aligns with federal regulatory requirements at 45 CFR 98.45. The contractor will be responsible for leading the Alternative Methodology (AM) Advisory Work Group, conducting both the alternative methodology cost study and market rate surveys, performing complex data analyses, and producing deliverables that include draft and final AM reports, narrow cost analyses, and work plans. The work will span a multi-year period starting in early 2026 through June 2028, with all activities focused on ensuring the reliable and compliant estimation of child care provider costs, including aspects related to health, safety, staffing, and quality rating systems. The contract emphasizes adherence to confidentiality and information security standards, reflecting the sensitive nature of the data involved. The total funding ceiling for this contract is set at $3,529,000 across three fiscal years, allocated to support personnel, subcontractors, travel, equipment, and indirect costs, with a cap on overhead for subcontractors and restrictions such as a prohibition on printing costs. The solicitation mandates a minimum 3% participation goal for Disabled Veteran Business Enterprises (DVBE), including requirements that subcontractors perform a Commercially Useful Function and meet California’s DVBE program regulations. Key evaluation criteria for award include cost (30 points), relevant experience and background (20 points), a detailed and feasible work plan (15 points), methodology (10 points), organizational capacity (10 points), and other factors (10 points), with preference incentives applied for DVBE, small business, and Target Area Contract Preference Act (TACPA) considerations. Award will be made based on a trade-off method considering both technical merit and cost, not strictly lowest price. Proposals must be submitted electronically via PDF by January 6, 2026, complying with California-specific certification and documentation requirements such as civil rights laws certification, Darfur and Iran contracting act certifications, and various state contracting clauses (including contractor certification clauses). The contract’s special provisions include comprehensive confidentiality and data security training for all personnel, applicable insurance coverage requirements, and restrictions related to economic sanctions compliance. Primary performance will occur within