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RFP Rater

Home Delivered Meals Program RFP

Department for the Aging

Issue Date 01/22/2020 • Close Date 04/08/2020

Risk Profile

Score Summary

 

The overall score for this Request for Proposals is 75 percent, which makes this RFP a high risk for applicants.

 

Background

 

This request for proposals (“RFP”) is for the Home Delivered Meals Program (HDM), which provides homebound older people, aged 60 and over, a home delivered meal on weekdays, except for certain holidays. This RFP does not offer weekend and holiday meals. Please note that “if a client is in need of a home delivered meal, the Case Management Agency is responsible for determining eligibility, initiating the service, authorizing the client for a meal and sending a referral to the local HDM program.”

 

There are three overarching goals of this RFP: “1) increasing meal options (choice) for recipients; 2) embracing the diversity of our City by increasing the availability of culturally aligned meals (diversity); and 3) promoting uniformly high-quality meals (quality) made from good food.”

 

The New York City Department for the Aging (“DFTA”) is the contracting agency, and the anticipated contract start date is July 1, 2020.

 

Key Concerns

 

Inadequate Funding

According to Mathematica Policy Research’s report “Older Americans Act Nutrition Programs Evaluation: Meal Cost Analysis,” the average cost of a home delivered meal in an urban area is $11.78, not including New York State’s $15 minimum wage, which is much lower than the DFTA-provided rate of $9.58 per meal. With this rate, contractors are expected to offer several cuisines, including cultural foods, in different meal formats, adhere to the Good Food Purchasing Program, provide free language assistance to persons with limited English proficiency, and offer social interaction and support for clients who are at “higher risk for becoming socially isolated and… deemed medically frail.” Although we applaud DFTA for prioritizing meal choice, quality, and diversity, the inadequate funding makes it difficult to reach these program goals, especially considering the cost of purchasing diverse foods, cooking, meal packaging, storing, and delivery. The RFP allows contractors to collect voluntary contributions from clients; however, this activity would be unnecessary if providers were fully funded for their services.

 

There is a lack of transparency as to the rate setting methodology and how DFTA determined the rates.  Due to this stark contrast in current funding levels and real costs, only a commitment to a significant increase in funding now from DFTA would make the funding in the RFP less risky to providers. There should be a sample budget included that lays out the cost expectations of the contract and DFTA should collaborate with providers on the real costs of running programs and meeting deliverables.

 

The U.S. Census Bureau states that by 2030, one in five residents will be of retirement age and “older people are projected to outnumber children for the first time in U.S. history.”  With the growing number of seniors and the lack of funding, applicants are unlikely to be able to meet the program deliverables without subsidizing the contract substantially with other revenue given the high cost of living in New York City.

 

Lack of Cost Escalators

This RFP is a three-year contract with a three-year renewal option meaning providers could potentially receive the same rate for six years. Nonprofits struggle to meet rising costs as rates on contracts are not increased from year to year to address an increase in the costs of delivering services.

 

Lack of Startup Funds

Startup funds are not available through this RFP, which is crucial for the overall operations of this program for both existing and new contractors. Additional funds are critical to buy the equipment for kitchens to prepare, package, and store meals and for vehicles to deliver hot, chilled and frozen foods. The RFP specifically requires that “The contractor would utilize appropriate carriers or temperature-controlled vehicle compartments to meet the temperature requirements noted above. All food carriers should be washed with soap and water and a sanitizing solution after each use; air-dried and stored at least 6 inches off the floor.” This will be difficult to accomplish without additional funding for operating costs.

 

Unnecessary Micromanagement

The RFP asks that proposers have a “program governance system” with requirements on what the governing body would include. Although we understand DFTA’s objective of including community members and those who have experience with these programs, it is unnecessary to state in the RFP what a governing body should comprise of and what its responsibilities are when nonprofits already have a board or governance structure in place that determine the success of its organization and programs.

 

Lack of Information

There are too many unknowns in the RFP for providers to submit a proposal. The RFP states “Prior to contract registration and during the term of the contract, change the program service size, program type, and model depending on the needs of the system, including adding or modifying the structured payment of services, and to change units if state and/ or federal definitions of service are changed.” This is a risk for applicants because they need to ensure that they have enough resources to sustain the program in case DFTA decreases funding at any time or increases the program size during the contract.

 

The RFP also includes a provision where “Contracts are subject to liquidated damages if they receive less than 80% satisfaction (overall) on two surveys in a row.” It is unclear what the survey standards are, how frequent the surveys will be distributed, and what liquidated damages providers are subject to. This is a huge risk for providers as there is no information about how the idea of liquidated damages came to be, how damages will be assessed and collected and how this will affect the sustainability of programs and organizations. DFTA requires “periodic taste tests” throughout the program without stating what the standards of these taste tests will be and how they will be factored into assessing the satisfaction of the clients.

 

Time to Respond
The initial proposal deadline was March 3rd, giving proposers only six weeks to respond, but according to Addendum 3, the proposal deadline will be extended from March 3rd to April 8th. This extension provides more time for proposers to develop their best proposals, but it would be preferred if initial proposal deadlines were more realistic as providers spend time and effort in to rushing to respond, which is not ideal.

 

HSC’s Methodology

The HSC RFP Rater assesses the feasibility, opportunities, and risk in City and State human services procurements. Rater scores are based on the RFP and related documents available to the public via New York City’s HHS Accelerator or New York State’s Grants Gateway. The rater consists of 60 questions developed and tested by a team of procurement professionals. The questions are based on information that is necessary to help prospective proposers assess risk.

 

Each answer is weighted based on the degree of risk inherent in the subject of the question. Answers that imply low to moderate risk are allotted points on a lower scale range compared to higher risk questions. For compound questions, the answer to both parts must be “yes” or “not applicable” to be considered low risk. Scores are calculated by adding all the question scores together. The higher the score, the greater the risk. The scoring range is from 60 to 230, with 0 percent risk equal to a score of 60 and the maximum risk score or 100 percent equal to 230 points. Users can view the answer to each question by clicking the down arrow next to each section to expand the section.

 

The HSC RFP Rater is not a substitute for the due diligence necessary to inform individual organization decisions.

 

Gloria Kim

Low Risk
High Risk

Program Design

Questions

1. Does the RFP include a clear scope of services?
Yes
2. Funding notwithstanding, is the program model/service design likely to produce the goals sought in the RFP?
No
3. Does the RFP allow for program innovation or service adaptation to meet community/population need?
No
4. If applicable, does the RFP include additional documents that enable a thorough review of program model, contract terms and conditions, or award agreements?
Yes
Low Risk
High Risk

Operating Requirements

Questions

1. Does the RFP detail or include an Appendix that spells out the terms and conditions for new contracts or delineate any changes in terms and conditions for renewals?
No
2. Does the RFP require staff to be credentialed, certified or licensed and allow a study or supervision plan for uncertified or unlicensed staff while they are pursuing required credentials?
No
3. Does the RFP specify caseload or staffing ratios and include a rationale for the methodology used?
No
4. Does the RFP specify staff:supervisor ratios and include a rationale for the methodology used?
No
5. Does the RFP require the use of a particular MIS system, HIT platform, case management or financial system?
Yes
6. Does the RFP allow shared staffing, equipment, vehicles, space or other efficiencies?
No
7. Does the RFP require operating licenses or permits that must be obtained from a city/state agency or department that is not the issuing agency?
Yes
8. If the issuing agency requires reporting and compliance activities, do they create an administrative burden and are these costs covered by the funding and built into the budget?
No
9. Does the RFP include specifications about organizational capacity to handle program administration: claiming/billing, reporting, compliance, and oversight requirements and are these costs built into the budget model?
No
10. Does the program require prior approval from multiple city or state agencies before beginning operations?
Yes
11. Does the RFP or Appendix include data governance rules describing ownership, portability, use and provision of provider access to program/client data and reports?
No
12. Does the RFP provide flexibility to amend budgets across line items or budget categories within the overall contract amount?
No
13. Does the RFP require the applicant organization to deliver services or operate programs in locations where it does not have site control?
Yes
14. Does the RFP or Appendix specify the process for year-end reconciliation?
No
15. Are payment terms (e.g., timeliness, advances, and recoupment) detailed in the RFP or Appendix?
No
16. To meet the operating requirements of the RFP will successful applicants be expected to submit paper copies of all invoices?
Yes
17. To meet the requirements of the RFP will successful applicants be expected to submit employee timesheets?
No
18. Does the RFP include additional documents that enable a thorough review of program model, funding, contract terms and conditions or award agreements?
No
Low Risk
High Risk

Financial Adequacy

Questions

1. Does the RFP provide resources to train, certify or credential staff and provide resources for coverage while staff are in training?
No
2. Does the RFP include requirements to hire residents, public assistance recipients, consumers/peers and provide resources in the budget model for recruitment, training, and supervision?
No
3. Does the RFP rate structure permit providers to pay a prevailing or competitive wage?
No
4. Does the RFP include a price/fee/rate per participant that supports program expenses, program outcomes and program administration?
No
5. Does the RFP allow the use of a federally approved indirect rate or allow a minimum of 15% overhead/indirect rate?
No
6. Do rates cover facility costs for owned/leased space?
No
7. Does the RFP limit the calculation of overhead to direct client services (no org admin)?
No
8. Does the RFP permit the organization to negotiate an indirect rate post-award?
No
9. Is start-up funding available for new programs?
No
10. Are resources available to support the technology, reporting, evaluation and monitoring activities associated with evidence-based or performance-based program models?
No
11. Is the rate methodology/budget model transparent and based on the actual cost of running a quality program?
No
12. Is close-out funding available to cover space, severance, vacation and other liabilities when the contract or program ends?
No
13. Does the RFP include a commitment to prompt payment?
No
14. Does the RFP budget model allow interest costs in the event of late payment?
No
15. Does the RFP include or require any private match (cash or in-kind) in its budget model?
No
Low Risk
High Risk

Performance Expectations

Questions

1. Does the RFP include enrollment and/or utilization targets that can be achieved with the model and resources available?
No
2. Does the RFP direct or limit the source of client referrals (control of referrals, eligibility or enrollment)?
Yes
3. Are RFP expectations for performance aligned with program design and goals (can deliverables and metrics be achieved with proposed model)?
No
4. Is significant performance risk built into RFP requirements (expectations of >85% performance goals reached before full payment)?
Yes
Low Risk
High Risk

Compliance

Questions

1. Does the RFP include unfunded compliance activities or mandates?
Yes
2. Does the RFP or Appendix specify annual program and financial audit requirements?
Yes
3. Does the RFP or Appendix detail reporting requirements?
Yes
Low Risk
High Risk

Sustainability

Questions

1. Does the RFP advance a unified approach to data collection, reporting and compliance monitoring across programs?
No
2. Does the RFP support a unified approach to staff salaries/wage levels and benefits across programs?
No
3. Does the RFP require/assume that the bidder will bring infrastructure (administrative, technology or programmatic) or other resources (staffing, in-kind) to support the program?
Yes
4. Will this be a multi-year or renewable contract?
Yes
5. Will this be a year-to-year contract?
No
6. Does the RFP budget model/rate structure build in annual baseline operating cost escalator/increase over the term of the contract for salaries/COLA?
No
7. Does the RFP budget model/rate structure build in annual baseline operating cost escalator/increase over the term of the contract for employee benefits and OTPS?
No
8. Does the RFP require linkage agreements or MOUs with community organizations or networks and provide resources in the budget model for program-related coordination or collaboration activities?
No
Low Risk
High Risk

Procurement Process

Questions

1. Does the RFP provide a minimum of six weeks in total to respond/submit?
Yes
2. Does the RFP specify a methodology for assessing an applicant’s past performance (Vendex score, program and/or financial audits
Yes
3. Does the RFP review process or scoring give a higher weight to the lowest price/bid?
No
4. Does the RFP scoring for organization expertise, experience and management capacity align with program/service goals and expectations?
Yes
5. Is the RFP review process and rationale for scoring programs/services transparent?
Yes
6. Is the RFP review process and rationale for scoring operating requirements transparent?
Yes
7. Is the RFP review process and rationale for scoring budget transparent?
Yes
8. Is the review process and rationale for scoring successful performance transparent?
No

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