Procurement and Monitoring of Self Direction Fiscal/Employer Agents

The following describe common procurement and monitoring processing for entities that procure the services of a Fiscal/Employer Agent for a self direction program. The below references items shown on the Procurement and Monitoring of Fiscal/Employer Agent Flow Chart.

  1. Develop a Request for Proposal (RFP) or Request for Qualifications (RFQ) to invite prospective Fiscal/Employer Agents to exhibit that they are qualified to meet program requirements.
  2. Include performance bond requirements in RFP or RFQ.
  3. Develop selection process and criteria for reviewing and scoring proposals, bids, or qualifications.
  4. Criteria must be objective and able to stand up to appeals.
  5. Assemble Proposal/Qualifications Review Team
  6. Usually includes, at a minimum, the program’s Program Manager, a representative from the procuring entity’s Procurement Office, a Case Manager, and someone with a strong financial or accounting background, preferably a Fiscal/Employer Agent expert.
  7. Issue Request for Proposal or Request for Qualifications
  8. Depending on the program issuing the RFP or RFQ, Federal, State or Local rules may apply.
  9. Collect and respond to written questions from prospective F/EAs
  10. After obtaining the RFP or RFQ, prospective F/EAs may have questions about the proposed program or services, F/EA role, procurement process etc. Most RFPs and RFQs stipulate that written questions are accepted until a published deadline and will be responded to publicly by a published deadline.
  11. Bidders’ Conference
  12. Prior to the RFP or RFQ submission date, the procuring entity may hold a Bidders’ Conference to provide additional information about the program or services and to answer questions from prospective bidders.
  13. During the Bidders’ Conference, program administrators may stress critical requirements to deter any unqualified F/EAs from submitting a proposal or bid.
  14. Prospective F/EAs Submit Proposals or Qualifications
  15. Proposal/Qualifications Review Team reviews and scores proposals
  16. Proposals are reviewed and scored in accordance with the selection process and criteria developed in step 2.
  17. Individual questions based on RFP/RFQ issued to RFP/RFQ respondents
  18. The public program procuring entity may ask prospective F/EAs additional individual questions to clarify understanding or seek F/EA’s capacity to provide alternate or additional services than those proposed.
  19. Top scoring F/EAs selected for additional review
  20. If not performed earlier, Review Team checks F/EA references and applicable public records available for the F/EA.
  21. F/EAs with top scores invited to oral interviews with Proposal/Qualifications Review Team and/or other stakeholders
  22. Proposal/Qualifications Review Team and/or other stakeholders asses vendor qualifications and readiness.
  23. Any uncertainty or areas requiring clarity, as identified earlier in the procurement process, are discussed.
  24. F/EA(s) selected to provide service for program
  25. Provider Agreement or Administrative Contract developed
  26. Usually includes the Scope of Work from the RFP/RFQ
  27. These documents outline the tasks and standards the F/EA is accountable forperforming/complying with and should reflect federal assurances, as applicable(i.e., financial accountability).
  28. Can be used to clarify and/or address “gaps” in federal or state requirements.
  29. Administrative contracts should be performance-based withbenchmarks developed, where appropriate.
  30. These documents, along with the F/EA Policies and Procedures Manual, shouldbe key components of a procuring entity’s F/EA Readiness Review Certification andRecertification/Performance Review process.
  31. The Provider Agreement or Administrative Contract should outline any performance bond requirements and may require proof of bond.
  32. Readiness Review Certification
  33. Standards, criteria and scoring system should be objective, measurable and able to stand up to appeals.
  34. A Readiness Review Protocol tool may be developed with external Technical Assistance.
  35. Perform complete review of F/EA Policy and Procedure Manual
  36. Ultimate responsibility for federal tax noncompliance lies with the procuring entity.
  37. It is important for program agencies to ensure they have theknowledge to perform as a Government F/EA or to execute administrative contracts/Medicaid provider agreements with F/EAs, reporting agents orsubagents who can provide F/EA services.
  38. Conducting an F/EA Certification/Readiness Review accomplishes theobjective of determining the readiness of an entity to perform F/EA tasks.
  39. State program agencies must define certification standards or criteria thatdetermine “readiness.”
  40. F/EA provides required reports to procuring entity on a regular and agreed upon basis
  41. Should include:
  42. Copies of filed Forms 941 and 940
  43. Deposit confirmation receipts from Electronic Federal Tax Deposit System (EFTPS) or other proof of employment tax payment
  44. Payroll register reports, including gross wages, net wages, withholdings, deductions and employer taxes
  45. Program participant, worker and/or counselor, surveys for satisfaction with F/EA services
  46. F/EAs should work closely with program staff to develop effectiveparticipant, worker and/or counselor survey instruments and implementation protocols andseek out expert technical assistance if possible.
  47. Program administrators should conduct periodic independent surveys about the F/EA’s services.
  48. It is important to ask participants if they have received any unexpected notices or penalty notices from tax agencies as related to the self direction program.
  49. Ongoing Performance Review or Recertification of F/EA
  50. Conducting periodic F/EA recertification/performance reviews is a criticalelement of a program’s Quality Management System.
  51. May include an audit in accordance with GAAP for the first 1-5 years of a program’s operation.
  52. If audit is not performed per GAAP requirements, a critical and thorough review of F/EA financial operations is performed using a procedure developed by the procuring entity.
  53. Programs should develop an F/EA Review protocol that reflects F/EA tasks, Medicaid/Older Americans Act/ Veterans Administrationprovider standardsand provisions of the provider agreement and/oradministrative contract it has executed with the F/EA.
  54. Programs must develop a method for evaluating F/EA performance and identifyingunder-performing F/EAs.
  55. This may include:
  56. Developing an effective sampling plan
  57. Developing provisional accuracy rates (PAR) for F/EA performance withina 95 percent confidence internal (CI) ± 1.5 percent
  58. Programs must develop a plan for how they will address situations when an F/EA’scontract or Medicaid provider agreement needs to be terminated.