Missouri Code of State Regulations › Title 13 - DEPARTMENT OF SOCIAL SERVICES › Division 35 - Children's Division › Chapter 35 - Alternative Care › Section 13 CSR 35-35.130 - Contracted Foster Care Case Management Costs

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This proposed amendment implements House
				  Bill 1414 (2020), which amended section
				  210.112,
				  RSMo in regards to how the Department of Social Services and the Children's
				  Division will determine the reasonable cost for contracted foster care case
				  management services for foster care case management contracts under section
				  210.112,
				  RSMo; and how foster care case management contractors may earn incentive
				  payments for superior performance pursuant to section
				  210.112,
				  RSMo.
(1) Payment to
				individuals and entities providing foster care case management services
				pursuant to section
				210.112,
				RSMo and 13
				CSR 35-35.120 (hereinafter referred to as
				"contractors") contracted by the Children's Division of the Department of
				Social Services (hereinafter referred to as the "division" or "CD") shall be
				based on the reasonable cost of services as determined through the competitive
				procurement process. Contractors and prospective contractors (hereinafter
				referred to as "contractor" or contractors") shall certify their bid covers all
				reasonable costs at a firm fixed price unless otherwise provided by law.
(A) Upon request by CD, the contractor shall
				submit a written explanation and supporting documentation detailing how the
				contractor calculated the reasonable costs of services. The CD may not award a
				contract to any contractor which fails to submit such information when
				requested by CD.
(B) CD, in its
				sole discretion, may reject any bid where CD determines that the bid amount for
				a service or services exceeds the reasonable cost of the service or services.
				The Department of Social Services shall apply the cost principles set forth in
				2 CFR Part 200 as applicable in the approval, evaluation, and audit of bids and
				contracts. CD shall use federal Uniform Guidance, pursuant to
				2 CFR 200.404,
				to define reasonable costs as follows:
1.
				Reasonable costs. A cost is reasonable if, in its nature or amount, it does not
				exceed that which would be incurred by a prudent person under the circumstances
				prevailing at the time the decision was made to incur the cost. The question of
				the reasonableness is particularly important when the contractor is
				predominantly federally funded. In determining the reasonableness of a given
				cost, consideration shall be given to-
A.
				Whether the cost is of a type generally recognized as ordinary and necessary
				for the operation of the contractor or the proper and efficient performance of
				the contract;
B. The restraints or
				requirements imposed by such factors as-sound business practices; arm's-length
				bargaining; federal, state, local, tribal, and other laws and regulations; the
				terms and conditions of the federal award of monies to the state,
				generally-accepted sound business practices, and terms and conditions of the
				contract;
C. Market prices for
				comparable goods or services for the geographic area;
D. Whether the individuals concerned acted with
				prudence in the circumstances, considering their responsibilities to the
				contractor, its members, employees, and clients, the public at large, and the
				state and federal government; and
E. Whether the contractor significantly deviates from
				the established practices of the division or the contractor which may
				unjustifiably increase the contract costs.