CI_ADCS_Qualified_Residential_Treatment_3.27.2025.pdf

Page 1 of 2 SPO Form 101 Standard Work (Rev 10.17.23)

Standard Work

Owner

Form Number Version

Process

No. Action Action Detail/Key Points

State Procurement Office, Compliance Unit

SPO Form 101 - Competition Impracticable Authorization Revised 10/17/23

Standard Work/Instructions for completion and submittal of the SPO 101 form. The form is available on the

1 State Governmental Unit Name of the requesting State Governmental Unit (SGU; agency, board, or commission)

2 Requestor Name of the requestor 3 Email Email of the requestor 4 Title Job title of the requestor 5 Telephone Telephone number of the requestor

6 Service(s)/Material(s) Description of service(s)/material(s) or Contract title (eProcurement Label) 7 Supplier Name of supplier(s) 8 Contract ID eProcurement contract number (if available)

9 CI Type Select applicable option:

- Authorization Request for a new CI

- Modification pursuant to R2-7-E303(E) for a CI modification

SPO website: For Agencies > Resources > Standard Forms and Documents

Form Completion Process

SECTION I - State Governmental Unit Request

Sections I through III to be completed by the requesting State Governmental Unit:

SECTION II - Background

Page 2 of 2 SPO Form 101 Standard Work (Rev 10.17.23)

10 Requesting Term Specify contract term or extension period, as applicable, based on the CI 11 Estimated Cost Forecasted expenditures for the duration of the CI term

12 Rationale

Select applicable option in accordance with A.A.C R2-7-E303(A):

- Compliance with A.R.S. §§ 41-2533, 41-2534, 41-2538, or 41-2578 is impracticable

- Compliance with A.R.S. §§ 41-2533, 41-2534, 41-2538, or 41-2578 is unnecessary

- Compliance with A.R.S. §§ 41-2533, 41-2534, 41-2538, or 41-2578 is contrary to public interest

- Documented lack of suppliers

- Procurement requires an open and continuous availability of offerors

Provide details of the procurement need, reason for the competition impracticable, and how the proposed procurement is advantageous to the State

Detail information regarding the rationale selected in the previous section;

State Governmental Unit use of the material(s) or service(s); if mandatory state contracts were explored; the limitation which led to the competition impracticable, and how the State would benefit from the procurement. If there is previous contract which requires modification pursuant to R2-7-E303(E) or contract that reached beyond the maximum 5-year term, provide the contract number and copy of that CI.

Describe the procurement process, strategy to promote competition, and determination that the price is fair and reasonable

Detail strategy for the proposed procurement, considered competition, reason for selecting specific supplier, and negotiations strategy.

I have conducted research and determined that no mandatory state contract is available for the service(s)/material(s)

Check the box confirming research was conducted. If the CI pertains to a modification pursuant to R2-7-E303(E), leave field empty.

If needed, I have attached additional documents/clarifications/explanations to the request

Check the box to indicate that there are additional documents attached to the request. Either as separate documents in the original email request or attached directly to the PDF submitted.

17 Signature Signature of the authorized requestor 18 Date of Request Specify the date of request

19 Determination

Select applicable option in accordance with A.A.C. R2-7-E303(D):

- Request Authorized Pursuant to R2-7-E303

- Request Authorized with Conditions/Restrictions R2-7-E303

- Request Returned for Additional Information

- Request Denied

20 Approved Expiration Date Specify the date or term of expiration

21 Comments, conditions, or restrictions (as applicable) Complete as needed

22 Print Name Printed name of the approver 23 Title Job title of the approver 24 Signature Signature of the approving authority 25 Date of Approval Specify the date of approval

Use section as necessary (or attach additional information and check box 16)

Used by any party in case the fields within the form were insufficient

SECTION III - Justification

SECTION IV - Approval

Section IV to be completed by the Procurement Authority:

"STATE GOVERNMENTAL UNIT NOTICE: This is an official written determination in response to a procurement authorization request.

A copy of the form shall be maintained by the State Governmental Unit and the State Procurement Office.

Upon completion, Requestor shall forward the signed form to the Contract Owner.

Contract Owner shall upload the signed approval version of this form in the eProcurement system.

If anticipated expenditure is above State Governmental Unit's delegation, forward document to SPOCompliance@azdoa.gov."

Page 1 of 4 SPO Form 101 - Competition Impracticable Procurement Authorization (Rev 10.17.23)

Procurement Determination:

Competition Impracticable Authorization A.A.C. R2-7-E303

SECTIONS I THROUGH III MUST BE COMPLETED BY THE REQUESTOR

USE ADDITIONAL PAGE AS NECESSARY

SECTION I - State Governmental Unit Request

SECTION II - Background

1. State Governmental Unit

2. Requestor 3. Email

4. Title 5. Telephone

6. Service(s)/Material(s)

7. Supplier

8. Contract ID

9. CI Type

10. Requesting Term 11. Estimated Cost

Arizona Department of Child Safety (ADCS)

Lex Sargento Achilles.Sargento@AZDCS.GOV

Chief Procurement Officer 602.432.2839

4/1/2025-6/30/2026 $28 Million per year

- Authorization Request for a new CI

Page 2 of 4 SPO Form 101 - Competition Impracticable Procurement Authorization (Rev 10.17.23)

SECTION III - Justification

12. Rationale

13. Provide details of the procurement need, reason for the competition impracticable, and how the proposed procurement is advantageous to the State

- Compliance with A.R.S. §§ 41-2533, 41-2534, 41-2538, or 41-2578 is impracticable

Page 3 of 4 SPO Form 101 - Competition Impracticable Procurement Authorization (Rev 10.17.23)

14. Describe the procurement process, strategy to promote competition, and determination that the price is fair and reasonable

15. I have conducted research and determined that no mandatory state contract is available for the service(s)/material(s)

16. If needed, I have attached additional documents/clarifications/explanations to the request

17. Signature 18. Date of Request

In accordance with the Procurement Rules, the Arizona Uniform Terms and Conditions must be made a part of all Contracts. If you will be required to sign a software licensing agreement or sign any other agreement containing terms and conditions, these will need additional review to ensure that the terms and conditions do not invalidate the Arizona Uniform Terms and Conditions. Approval of this request does not allow for agencies to exceed their dollar acquisition amount of delegated authority.

March 21, 2025

Page 4 of 4 SPO Form 101 - Competition Impracticable Procurement Authorization (Rev 10.17.23)

TO BE COMPLETED BY PROCUREMENT AUTHORITY

SECTION IV - Approval

19. Determination

20. Approved Expiration Date

21. Comments, conditions, or restrictions (as applicable)

22. Print Name 23. Title

24. Signature 25. Date of Approval

STATE GOVERNMENTAL UNIT NOTICE: This is an official written determination in response to a procurement authorization request.

A copy of the form shall be maintained by the State Governmental Unit and the State Procurement Office.

Upon completion, Requestor shall forward the signed form to the Contract Owner.

Contract Owner shall upload the signed approval version of this form in the eProcurement system.

If anticipated expenditure is above State Governmental Unit's delegation, forward document to SPOCompliance@azdoa.gov.

06/30/2026

David Steuber (Mar 26, 2025 07:18 PDT)

Select applicable option in accordance with A.A.C. R2-7-E303(D):

David Steuber State Procurement Administrator

03/26/2025 https://na1.documents.adobe.com/verifier?tx=CBJCHBCAABAAdY4crLRy7hrl1Y0qRuV-Kk6oPg7xXQYD

Page 5 of 4 SPO Form 101 - Competition Impracticable Procurement Authorization (Rev 10.17.23)

26. Use section as necessary (or attach additional information and check box 16)

Contract ID Label Supplier End date CTR057793 Qualified Residential Treatment Program BROTHERS AND KEEPERS CORP 3/31/2025 CTR057791 Qualified Residential Treatment Program POWER HOUSE YOUTH FACILITY IN 3/31/2025 CTR057792 Qualified Residential Treatment Program CATALYST COMMUNITY CORP 3/31/2025 CTR058497 Qualified Residential Treatment Program MAHANEY CHILD AND FAMILY INCORPORATED 3/31/2025 CTR061546 Qualified Residential Treatment Program ROMAN HOME LLC 3/31/2025 CTR059887 Qualified Residential Treatment Program STEP AHEAD ENTERPRISESLLC 3/31/2025 CTR062341 Qualified Residential Treatment Program OHANA FAMILY HOMES LLC - OHANA HOMES 3/31/2025 CTR056073 Qualified Residential Treatment Program HAPPY ACRES CHILDRENS HOME INC 3/31/2025 CTR058567 Qualified Residential Treatment Program Achieving Better Coping Skills LLC - ABC Skills 3/31/2025 CTR057987 Qualified Residential Treatment Program A BLESSED NEST INC 3/31/2025 CTR055444 Qualified Residential Treatment Program RITE OF PASSAGE INC 3/31/2025 CTR060490 Qualified Residential Treatment Program MMP GROUP LLC 3/31/2025

QRTP Contracts

Amendment 03/25/2025: Attached list shows twelve (12) contractors.

Text8: Eleven (11) contractors (see attached list).

Amendment 03/25/2025: Attached list shows twelve (12) contractors.

Text11: The Arizona Department of Child Safety (ADCS) is responsible for providing a safe environment for children removed from the home due to abuse or neglect. In order to support the youths, ADCS provides housing and care for their continued education while in State custody. ADCS receives reimbursement of funds expended on these services from the Federal government. The Federal Families First Prevention Services Act (FFPSA) changes the funding methodology for these services and significantly impacts the funding the Department utilizes in support of children in out of home care. The major shift from a straight reimbursable style of funding to focusing and funding prevention and/or evidenced based treatment programs changes the funding and reimbursement process for congregate care beds utilized by the Department.

Currently, ADCS has approximately 8,000 children in out of home care and is reimbursed a portion of the daily expense for a youth place in a congregate care facility for however long the youth is in the facility. Nineteen percent (19%) of children in out of home care are residing in congregate care settings. The length of time in out of home care varies for the youth and could be a as little as a few days or until they age out of care at eighteen (18). The average length of time spent in a congregate care facility is 9-10 months (approximately 300 days). The projected expenditure for congregate care services is $104,000,000 (includes standard group home and QRTP). Under the FFPSA the Federal government will reimburse a portion of the daily rate for the first fourteen (14) days of a child in a congregate care facility. This equates to 5% of the average time spent in a congregate care setting and approximately 95% of the expenditures would then need to be funded solely out of general fund dollars.

However, FFPSA does continue to reimburse a portion of the daily rate for any youth place in an evidenced based qualified residential treatment (QRTP) facility for as long as they are in the facility.

(continued on page 3) Text12: (continued from page 2)

ADCS continues to work diligently with any interested party in becoming an accredited QRTP provider. The Department has identified only 44 homes that meet the criteria of an accredited evidence-based program, representing 702 beds. The Department is also competing with the refugee resettlement program for the same available capacity and will need every bed in an accredited facility that we can put under contract. These facilities will provide the same level of support as standard congregate care facilities but under an evidenced based program. Without directly contracting with the facilities the Department will be unable to receive any reimbursement from the Federal government to pay a portion the daily rate after fourteen (14) days for children in out of home care and it will become the responsibility of the Department to fully fund this service. It is in the best interest of the state to contract with accredited facilities to provide appropriate care and support. The price is determined to be reasonable based on the additional requirements of the program in comparison to the cost of facilities under the congregate care contract.

ADCS released a solicitation for Congregate Care Services in December 2023 and awarded in April 2024. The new Congregate Care contract eliminates some cohorts that will now qualify as QRTP eligible, increasing the demand for QRTP beds. ADCS intends to solicit for the QRTP program in the fall of 2025.

The Department is requesting a one (1) year and three (3) month extension to continue working with existing QRTP providers, establishing direct contracts to support the immediate capacity needs, and to allow time for interested parties to go through the QRTP accreditation process (a one (1) year process to complete). The assumption is additional providers will be accredited, adding more competition and capacity to upcoming QRTP solicitation.

Text15: This page is a continuation of ADCS's CI modification request to extend the Qualified Residential treatment Program (QRTP). More information was gathered from ADCS:

• This request is amended to be a modification request. See subsequent pages for the approved initial CI request from March 2024.

• Anticipated contract awards from the upcoming solicitation commencing in Fall 2025 are estimated to occur in January 2026.

• The initial CI request listed fifteen (15) suppliers. This CI modification lists twelve (12) suppliers. The suppliers who are no longer listed on the current list decided not to continue with their contract or did not renew their accreditation.