A National Imperative: Joining Forces to Strengthen Human Services in America (Jan 2018)

CASE STUDY: ASSESSING THE RISKS OF GOVERNMENT CONTRACTS USING THE HUMAN SERVICES COUNCIL OF NEW YORK’S RFP RATER

Financial stress among CBOs is in large part driven by government contracts that fail to cover the full costs of delivering services and introduce unfunded mandates in the form of stringent compliance and reporting requirements. Heavily reliant on government funding, CBOs may be hesitant to push back on unfavorable contract terms, or they may lack the resources and sophistication to properly understand the risks associated with particular government contracts. At the same time, government agencies may underestimate the extent to which contracts place financial and compliance burdens on CBOs. The Human Services Council of New York looks to upend this dynamic. Developed through a collaborative process between government and CBO stakeholders, the Council’s publicly-accessible RFP Rater assesses the level of risk that state and local government solicitations impart on CBOs. Risk scores are derived from 60 different criteria that examine funding amounts for both direct and indirect costs, compliance burdens, standard contract protections and guarantees, and flexibility in how CBOs may deliver services, among other characteristics. The RFP Rater aims to empower New York CBOs to make well-informed decisions about which government procurement opportunities to pursue. In addition, the Human Services Council hopes that the tool will motivate government agencies to improve contract terms and funding levels. By bringing transparency to the risks, challenges, and rewards inherent in government programs and contracts, the Council’s RFP Rater looks to change the conversation around how human services programs should be funded and administered, while setting up CBOs contracting with the government for operational and financial success.

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