MSDE RFP R00B7600009 CCS Customer Serv RFP final for publication.pdf

CHILD CARE SCHOLARSHIP CUSTOMER SERVICE

AND ADMINISTRATION

Solicitation # R00B7600009

RFP Document

RFP for Maryland State Department of Education Page 1 of 1

STATE OF MARYLAND

(MSDE)

REQUEST FOR PROPOSALS (RFP)

CHILD CARE SCHOLARSHIP CUSTOMER SERVICE AND

ADMINISTRATION

RFP NUMBER R00B7600009

ISSUE DATE: AUGUST 21, 2026

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace Advantage (eMMA) https://procurement.maryland.gov should register on eMMA https://emma.maryland.gov/

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO RESPOND TO THIS

SOLICITATION.

https://procurement.maryland.gov/ https://emma.maryland.gov/

RFP for Maryland State Department of Education Page 2 of 3

STATE OF MARYLAND

MARYLAND STATE DEPARTMENT OF EDUCATION(MSDE)

KEY INFORMATION SUMMARY SHEET

Request for Proposals Services and IT Services Child Care Scholarship Customer Service and Administration

Solicitation Number: R00B7600009

RFP Issue Date: August 21, 2026

RFP Issuing Office: Maryland State Department of Education (“MSDE” or the “Department”)

Procurement Officer: Jenna Meinl

MSDE

200 West Baltimore Street Baltimore, MD 21201

Email:

Phone Number:

Jenna.meinl1@maryland.gov 410-767-0008

Proposals are to be sent to: Submit on emma.maryland.gov under Solicitation Number R00B7600009 To submit a proposal, offerors must first register on emma.maryland.gov. We recommend registering in advance to become acquainted with the site.

No Bid/Proposal Notice Feedback Form

*If you are not submitting a proposal for this solicitation, submit Attachment 1 with your reasons why.

Pre-Proposal Conference: September 14, 2026 - 1:00 pm Local Time meet.google.com/gtw-fabz-jqm; Join by phone

7792-436-(US) +1 414 PIN: 354 634 794#

See Section 4.3 for additional details.

See Attachment 2 to RSVP by September 11, 2026, COB to Attend – This assists MSDE with tracking attendance as required at the pre-proposal

Questions Due Date and Time: September 18, 2026- 2:00 pm Local Time tel:+1-414-436-7792

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Proposal Due (Closing) Date and Time:

October 2, 2026- 2:00 pm Local Time Offerors are reminded that a completed Feedback Form is requested if a no-bid/proposal decision is made (see Attachment 1 - No Bid Notice/Vendor Feedback Form).

MBE Subcontracting Goal: An overall Minority Business Enterprise (MBE) or Disadvantaged Business Enterprise (DBE) subcontract participation goal of 20% of the total contract dollar amount, including all renewal option terms, if any, has been established for this procurement. The overall MBE subcontract participation goal includes the following subgoals, which have been established for this procurement:

7% for African-American MBEs;

2% for Hispanic-American MBEs; and 8% for Woman-Owned MBEs.

The balance of the MBE goal is the Offeror’s choice to meet the overall 20% goal.

Refer to Exhibit 1 for information on how goal setting was determined. Also, refer to Appendix 4 for information about the MBE or DBE program and goals.

VSBE Subcontracting Goal: This solicitation includes a VSBE participation Goal of five percent (5%).

Refer to Exhibit 1 for information on how goal setting was determined. Also, refer to Appendix 5 for information about the VSBE program and goals.

Procurement Method: A Contract will be awarded in accordance with the Competitive Sealed Proposals method under COMAR 21.05.03.

Multiple or Alternate Bids: Multiple or alternate Proposals will not be accepted.

Contract Type: Hybrid with Firm Fixed price and Indefinite Quantity with fixed unit prices

Contract Duration: 3-year base period with two (2) one-year option periods

Primary Place of Performance: Contractor's Office Location. All operations must be conducted within the Continental United States. Primary operational location must be within a 50-mile radius of MSDE headquarters at 200 W. Baltimore Street, Baltimore, MD 21201, or through a hybrid model with a primary location within that radius and remote staff within the Continental United States.

SBR Designation: No

Federal Funding: Yes (Refer to Section 3.9 for details)

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TABLE OF CONTENTS – RFP

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.2 Background and Purpose

2.3 Contractor Responsibilities and Tasks

2.4 Functional, Technical, and Operational Service Level Requirements

2.5 Experience and Personnel

2.6 Substitution of Personnel

2.7 Supplemental Category of Work Requirements and Responsibilities

3 Standard Terms and Conditions

3.1 Contract Initiation Requirements

3.2 End of Contract Transition

3.3 Invoicing

3.4 Liquidated Damages

3.5 Problem Escalation Procedure

3.6 Work Orders

3.7 Payments by Electronic Funds Transfer

3.8 Prompt Payment Policy

3.9 Federal Funding Acknowledgement

3.10 Conflict of Interest Affidavit and Disclosure

3.11 Non-Disclosure Agreement

3.12 Maryland Healthy Working Families Act Requirements

3.13 The State of Maryland’s Commitment to Purchasing Environmentally Preferred Products and

Services (EPPs)

3.14 Insurance Requirements

3.15 Non-Compete Clause Prohibition

4 Proposal Submission Information and Instructions

4.1 eMaryland Marketplace Advantage (eMMA)

4.2 Electronic Means

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4.3 Pre-Proposal Conference

4.4 Questions

4.5 Proposal Due (Closing) Date and Time

4.6 Economy of Preparation

4.7 Public Information Act Notice

4.8 Oral Presentation

4.9 Duration of Proposals

4.10 Revisions to the RFP

4.11 Cancellations

4.12 Incurred Expenses

4.13 Protest/Disputes

4.14 Offeror Responsibilities

4.15 Acceptance of Terms and Conditions

4.16 Compliance with Laws/Arrearages

4.17 Verification of Registration and Tax Payment

4.18 False Statements

5 Proposal Format

5.1 Two Part Submission

5.2 Proposal Delivery and Packaging

5.3 Volume I - Technical Proposal

5.4 Volume II – Financial Proposal

6 Evaluation and Selection Process

6.1 Evaluation Committee

6.2 Technical Proposal Evaluation Criteria

6.3 Financial Proposal Evaluation Criteria

6.4 Reciprocal Preference

6.5 Selection Procedures

6.6 Documents Required upon Notice of Recommendation for Contract Award RFP Attachments

(Table B)

7 RFP Appendices and Exhibits

7.1 Appendices (Table C)

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7.2 Exhibits (Table D)

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1 Minimum Qualifications

1.1 Offeror Minimum Qualifications

The Offeror must document in its Proposal that it satisfies the following Minimum Qualifications:

A. The Offeror shall have at least ten (10) years of cumulative program experience, within the past five (5) years providing eligibility determinations, case management, customer service, and provider payment administration and accounts processing for a large public assistance or human services program.

Required Documentation: The Offeror shall provide with its Proposal verifiable documentation that lists sufficient cumulative experience of contract scope, period of performance within the past five (5) years and names and contact information of contract monitors or other sources that can verify active and ongoing operational capability.

B. The Offeror shall have a minimum of three (3) years of experience implementing or operating paperless document and case management systems capable of supporting high-volume public-facing programs, including demonstrated capability to develop and maintain integrations between case management, call center systems and enterprise systems, in coordination with system owners and their technical teams.

Required Documentation: The Offeror shall provide with its Proposal system descriptions, client attestations, or contact information of contract monitors or sources that can attest to the Offeror’s prior operation of an electronic document and case management solution at comparable program scale, including at least one example of a system integration developed and maintained in coordination with a third-party system owner.

C. The Offeror shall have demonstrated experience meeting state and federal cybersecurity standards, including protecting data. and personally identifiable information (PII). and supporting programs subject to federal and state audit requirements including compliance with laws and regulations governing government funding and public assistance programs.

Required Documentation: The Offeror shall provide with its Proposal one or more references from the past five (5) years that collectively verify the Offeror's experience meeting applicable cybersecurity, data protection, and regulatory compliance standards in the public sector.

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2 Contractor Requirements: Scope of Work

2.1 Summary Statement

This Request for Proposals (RFP) is issued to procure the goods or services, as specified in this Section 2, from a contract between the selected offeror(s) and the State of Maryland (“State”).

The Maryland State Department of Education (MSDE) seeks a qualified service provider to deliver Child Care Scholarship (CCS) Customer Service and Administration functions, including eligibility determinations, case management, provider payment administration and accounts processing, customer service, and audit and compliance functions for the CCS program. The Contractor shall provide all staffing, operations, and supporting technology — including call center telephony, computers, and a case management solution — necessary to perform these functions.

The State does not wish to procure a software application still under development. The software utilized in the solution shall be operational (i.e., not under development) and generally available by the due date of the Proposal.

This is a single award. See RFP Section 6.5 Selection Procedures for more Contract award information.

A Contract award does not ensure a Contractor will receive all or any State business under the Contract.

2.2 Background and Purpose

The Division of Early Childhood Education supports Child Care and Early Learning for the children of Maryland. The Child Care Scholarship (CCS) (formerly known as Child Care Subsidy) program helps eligible families in Maryland pay for high-quality childcare and early education programs. The program is managed by a centralized vendor. As of the date of this solicitation, the CCS program serves an estimated 26,000 families, 40,000 children, and 3,600 childcare providers across all 23 counties and Baltimore City. (These figures are baseline estimates for planning purposes only and may change over time).

The CCS program authorizes financial assistance in the form of scholarships for childcare costs to eligible Maryland families who are working, participating in an approved education program, or enrolled in job training activities. in Maryland. The CCS program encompasses administration of subsidy authorizations to childcare providers; customer support services for providers and families; eligibility determination, redetermination, and interim changes; data collection and reporting; program integrity, fraud prevention and investigation support; and coordination with State systems including Child Care Administrative Tracking System (CCATS) and Maryland Department of Human Services (DHS) eligibility systems.

The purpose of this solicitation is to select a qualified Contractor to provide case management, customer service, and provider payment administration and accounts processing functions for CCS customers and providers, using the CCS program systems: the CCATS, the CCS Family Portal, and the Child Care Provider Portal or other systems that may be used by MSDE over the term of the Contract.

RFP for Maryland State Department of Education Page 9 of 10

CCATS is used to process benefits for CCS program participants. CCATS is based on Oracle WebLogic, DB2, a J2EE (v6) application, and SAP Business Objects XI. The CCS Family Portal and Child Care Provider Portal (collectively, the CCS Portals or the Portals) are built on Salesforce Service Cloud and support document submission, retrieval, communication, and notification between the Contractor, customers, and MSDE. CCATS serves as the sole system of record for all CCS program data. MSDE may change, update or develop new systems at a future date.

2.2.1 Project Description

The State is interested in improving client experience, improving the Program, and maximizing the use of Maryland taxpayers’ funds. Efficiency of operations and a reduced workload for providers and the State are of paramount importance. MSDE will evaluate novel automations or AI components specific to MSDE use cases as planned optional additions subject to MSDE approval and budgetary constraints prior to deployment. Offerors must provide a detailed plan, including implementation of such automations as part of their technical proposal. Pricing shall be provided on Attachment B, Financial Proposal for automation and AI components proposed.

MSDE expects Contractors to work diligently to reduce the cost to Maryland citizens and anticipates the contract will not exceed $62,500,000.00 over five (5) years. The anticipated value is provided as a guide for Offerors to determine the appropriate level of service and does not constitute a rigid minimum or maximum. Please note, however, that due to budgetary constraints, the Agency may not be able to award a contract that significantly exceeds this figure.

The Contractor is not responsible for maintaining or developing the CCATS, the CCS Family Portal, or the Child Care Provider Portal; however, Contractor staff shall use these systems or others deployed in the future as required to perform program functions and shall support families and childcare providers in using the CCS Portals. Refer to Exhibit 4 for system drawings provided for reference.

2.2.2 State Staff and Roles

In addition to the Procurement Officer and Contract Monitor, the State project team consists of the following:

A. State Project Manager

1. MSDE shall provide a State Project Manager responsible for direct guidance, oversight, and day-to-day coordination with the Contractor. The State Project Manager will initiate and approve Contract changes and invoices.

2. The State Project Manager will coordinate with the CCATS project manager to provide the Contractor staff with access to CCATS and any portals as required to perform program functions.

3. MSDE shall provide limited mail house support for system-generated documents that cannot be emailed or made available via the CCS Portals. MSDE expects that 99% of the processes be paperless or electronic.

B. CCATS Project Manager

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1. MSDE's CCATS project manager will facilitate system access, assign logons, and resolve system issues in coordination with MSDE and the CCATS or other systems and portal contractors.

2. The CCATS project manager will provide COMAR 13A.14.06 and all applicable CCS policies and procedures. MSDE will provide initial policy and system training and ongoing technical assistance, including policy interpretation and updates, a maximum of four (4) times per year MSDE will provide all documentation and policies pertinent to the scope of work in order for the Contractor to implement Contract requirements.

C. IT Partner Support

1. MSDE shall provide consultation from IT and other sources as directed by the

State Project Manager.

2. MSDE shall provide Jira or another MSDE designated project management tool for tracking and reporting purposes. The tool provided by MSDE must be used by the Contractor unless other tools are approved in writing by MSDE.

2.2.3 Other State Responsibilities

A. The State will provide access to working facilities as reasonably necessary for Contractor performance under the Contract.

2.3 Contractor Responsibilities and Tasks

2.3.1 The Contractor shall manage all aspects of case management, customer service and provider payment administration and accounts processing using CCATS and any other systems used by the MSDE in accordance with regulations, and MSDE policies and procedures.

2.3.2 The Contractor shall use CCATS and the CCS Portals as the current primary systems for all program functions. The Contractor's proposed case management and call center solution must operate in conjunction with existing CCATS infrastructure or any newly deployed infrastructure and support the continuation of current business operations without service disruption. All data used to determine the outcome of cases or that results in the authorization of benefits must be stored in the CCATS database or any other database used by MSDE.

2.3.3 Certain Contractor staff will be issued a Maryland.gov email address. All Contractor staff with a Maryland.gov email account are required to complete Maryland security and privacy training. MSDE requires 100% completion by established deadlines.

2.3.4 The estimated number of children served includes active scholarships plus one-half of the number of children on the Frozen Status list. Growth is estimated to be approximately 10,000 children over a five-year period. This growth is estimated and spread over the five-year term. The current base number of children is 40,000.

Offerors should account for this growth in their technical and financial proposals.

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2.3.4.1 Current and updated program data is currently available at https://earlychildhood.marylandpublicschools.org/data

2.3.5 MSDE at any point during the base period or any exercised option period, may opt to: (a) bring any technology platform provided by the Contractor in-house or replace it with an Agency-provided or Agency-selected equivalent; (b) bring any functional area performed by the Contractor in-house or transfer it to another party; or (c) any combination of the above.

2.3.5.1 Where MSDE provides an Agency-provided or Agency-selected platform equivalent, the Contractor shall adopt it, configure its workflows accordingly, train its staff on it, and cease charging MSDE for the replaced Contractor-provided platform.

2.3.5.2 MSDE will configure the replacement platform as appropriate to support the Contractor's use for program purposes. Moderate workflow changes resulting from platform substitution are expected and shall be included in the Offeror’s Financial Proposal (Attachment B Financial Proposal).

2.3.6 The Contractor shall actively support all transition activities, including staff training, process documentation, data export, knowledge transfer, and coordination with any incoming platform owner or functional successor.

2.3.7 The Contractor shall not obstruct, delay, or impose conditions on any transition activity.

2.3.8 The Contractor shall work collaboratively and productively with all parties as directed by MSDE, including but not limited to MSDE program and IT teams, other contractors supporting MSDE systems, DHS staff and providers, and any other entities identified by MSDE.

2.3.9 The Contractor shall make every effort to ensure the timely success of MSDE initiatives and shall not take actions that impede, delay, or create barriers to the work of other MSDE teams, contractors, or partners. This obligation includes participation in joint planning, testing, troubleshooting, data sharing, and coordination activities as directed by MSDE, in the interest of program integrity, data security, and maximum benefit to Maryland residents.

2.3.10 The Contractor shall continuously monitor operational performance, costs, and customer experience throughout the Contract term. The Contractor shall proactively identify and report to MSDE opportunities to improve customer experience, reduce costs, increase efficiency, or enhance program outcomes. Identified opportunities shall be documented and submitted to the Contract Monitor and shall be evaluated by MSDE and the Contractor collaboratively.

2.3.11 During the term of the Contract, the Contractor shall provide cost reduction proposals to MSDE that reduce the total price of one or more-line items set forth in Attachment B, Financial Proposal. Prior to implementing any cost reduction https://earlychildhood.marylandpublicschools.org/data

RFP for Maryland State Department of Education Page 12 of 13 initiative, the Contractor must submit a detailed written proposal to include a description of the proposed change in infrastructure, personnel, methodology or software licensing and a detailed projection of the gross and net savings factoring in implementation costs. The Contractor must attest that the initiative will not diminish security, compliance posture, customer satisfaction, system performance or SLAs as defined in this Contract.

2.3.11.1 The Contractor shall share the cost reductions with MSDE – 80% to MSDE/20% to the Contractor. The net savings shall be paid to the Contractor as one-time performance bonus, payable only after the savings have been sustained and verified for a consecutive period of three (3) months and invoiced separately. In no event shall the total cumulative payout through the term of the Contract to the Contractor under this section exceed $500,000.

2.3.11.2 Cost reductions shall not include automation and AI proposed in the Technical Proposal and the Financial Proposal. These reductions are reductions found in the customer service and administration throughout the Contract.

2.3.11.3 Cost reductions shall not include routine market decreases in the cost of third-party software, cloud consumption or software licenses if applicable.

2.3.11.4 Cost reductions shall not include reductions in the scope of work or project deliverables required by MSDE.

2.3.11.5 Cost reductions shall not include correcting errors, deficiencies or inefficiencies originally caused by the Contractor.

2.3.11.6 The Contractor may not claim savings if the change causes a drop in platform speed, uptime or customer satisfaction.

2.3.12 The Contractor is engaged as an expert in childcare program administration, case management operations, payment processing, call center management, document management, and system integration and shall bring this expertise to bear on decisions proactively without being asked.

2.3.12.1 The Contractor shall proactively advise MSDE on the best operational and technical paths to achieve program objectives, including recommendations on process design, case management approach, fraud detection methods, system integration, customer service delivery, and technology choices within the Contractor's area of responsibility. The Contractor shall not limit its contribution to executing instructions — it shall actively contribute operational expertise to planning and decision-making during the Contract term.

2.3.12.2 When the Contractor believes that a proposed approach, requirement, or direction is operationally inadvisable — whether because it introduces program risk, creates compliance exposure, is likely to fail, conflicts with applicable regulations, or is not the best path to the stated objective — the Contractor shall advise MSDE clearly and in writing before work begins.

2.3.12.3 If MSDE acknowledges the Contractor's concern and decides to proceed, the Contractor shall: (a) document its recommendation and the specific concerns in a written communication to the Contract Monitor; (b) obtain the Contract

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Monitor's written acknowledgment that MSDE is proceeding with awareness of the identified concern; and (c) execute the direction to the best of its ability.

2.3.13 The Contractor shall work cooperatively with other MSDE Contractors and shall investigate and make known to the Contract Monitor any risks identified by other Contractors, even if the Contractor is not in agreement with the identified risks.

2.3.14 All communications and information presented to members of the public — including but not limited to letters, notices, forms, web pages, emails, flyers, signage, training materials, customer service scripts, and outreach materials — shall:

(a) be written at a 4th grade reading level, unless otherwise advised; (b) comply with State and federal accessibility standards; and (c) follow user-centered design principles consistent with Maryland Executive Order 01.01.2024.25 (Maryland Plain Language Initiative) and the Maryland Digital Service Plain Language Standards currently available at digital.maryland.gov/principles/plain-language-standards. This standard applies to all materials produced or revised by the Contractor, whether original or adapted from existing materials, in any medium or format.

2.3.14.1 MSDE shall provide written approval or rejection with comments within 10 Business Days of receipt of a submitted material. If MSDE does not respond within 10 Business Days, the Contractor shall reach out to the Contract Monitor to determine the status and anticipated approval date. MSDE’s non-response does not constitute approval. Approval applies to initial submission and any material revision — defined as a change to substantive content, program requirements, or eligibility information. Non-substantive updates (corrections of typographical errors, formatting adjustments, translation of previously approved content) do not require re-approval provided the Contractor notifies the Contract Monitor in writing. The Contractor shall maintain a dated log of all submitted and approved materials.

2.3.14.2 All materials produced or revised by the Contractor must receive written MSDE approval prior to use or distribution. Materials currently in use by the incumbent Contractor must also be submitted for MSDE approval at transition.

2.4 Functional, Technical, and Operational Service Level Requirements

2.4.1 Functional Requirements

The following table sets forth the functional work requirements for this Contract. The Contractor shall meet or exceed all requirements.

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Scope of Work Requirements Transition-In Planning

1. Contractor shall develop a transition-in plan detailing the transition from the existing Contractor's document and case management system architecture to the proposed solution.

2. Contractor shall work with the current contractor to conduct knowledge-sharing and discovery exercises and shall develop a plan for data migration, including data security in transit.

3. Contractor shall clearly outline a plan to ensure a smooth transition from the current contractor and shall work with the current contractor and other MSDE and contractor teams to execute the transition, including integrating as needed.

4. Contractor shall attend scheduled meetings with MSDE and provide updates on project schedules, risks, and other requests as identified by MSDE.

5. Contractor shall transfer all images (current and historical) from the current contractor. All images shall be legible and easily viewed without additional software, licenses, or associated costs.

6. Contractor shall receive all pending/future work, including invoices for client payment, repayments, overpayments, and outstanding customer service issues, with the associated due dates transferred from the current contractor.

Emergency Preparedness and Business Continuity

1. Emergency Preparedness Plan. The Offeror shall submit a draft Emergency Preparedness and Business Continuity Plan with its Proposal. A final plan, approved in writing by MSDE, is required within thirty (30) days of the Notice to Proceed (NTP). MSDE approval of the final plan is a condition of the Contractor beginning full operations.

2. The plan shall address continuity of case management, provider payment administration, IVR operation, and customer service during State and county emergency closures, including circumstances where CCATS is unavailable.

3. MSDE shall notify the Contractor of planned and unplanned system outages. The Contractor shall initiate its approved emergency protocols for system outages that impact operations and that are expected to last in excess of 48 hours. MSDE and/or State designated protocols shall supersede the Contractor’s plan depending upon the nature of the emergency.

4 When MSDE authorizes emergency processing outside CCATS, the Contractor shall implement an MSDE approved alternative method and maintain a complete tracking and reporting mechanism for all Child Care Development Funds (CCDF) funds authorized outside of CCATS in response to State and county emergencies or as authorized by MSDE or the Federal Government.

5 The Contractor shall remain available throughout emergency periods and ensure that it adheres to all established communication requirements before, during and after activation of emergency protocols.

Service Level Agreements

(SLA)

1. Contractor shall maintain sufficient staff, defined duties and roles to meet or exceed all SLA requirements from the end of the 4-monthtransition-in period through the end of the Contract, regardless of seasonal volume fluctuations or increases in the number of children and families enrolled with active scholarships due to policy or program changes.

2. See IT Supplemental Section 1.5 for SLA framework, measurement definitions, reporting requirements, and service credits.

Subject Matter Experts

1. Contractor shall develop and maintain a team of personnel with extensive knowledge (subject matter experts) in CCS authorization, family eligibility and need determination, wait list management and prioritization, provider payment administration, policies and procedures, and customer services.

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2. Contractor's Subject Matter Experts shall coordinate and manage the preparation of analyses, evaluations, and recommendations for proper implementation of CCS program, audit, and SLA requirements.

Provider Payment Administration and Accounts Processing

1. Contractor shall process all properly submitted provider invoices in a timely manner and in accordance with SLA requirements.

2. Contractor shall document improperly submitted invoices in the provider record and contact the provider in writing for corrections.

3. Contractor shall identify, calculate, and correct underpayments and overpayments.

4. Contractor shall ensure that another team member as defined in the staffing plan reviews provider-submitted documentation to verify that services are being delivered to children enrolled in the CCS program.

5. Contractor shall ensure there is another review of all check writer underpayment amounts prior to authorization.

6. Contractor shall batch and send all checks received to MSDE for handling and shall maintain a dated tracking list of all checks sent to MSDE.

Investigating, Calculating, and Recovering Overpayments

1. Contractor shall implement effective internal controls and risk identification processes to detect all non-fraud overpayments and calculate amounts to be recovered.

2. Contractor shall generate and issue the series of three Repayment Notification Letters to providers and/or customers in accordance with MSDE and State procedures.

3. Contractor shall refer repayment matters to the Contract Monitor to forward to the State Central Collections Unit (CCU) if the provider or customer does not respond within the required timeframe.

Fraud and Violation Detection

1. Contractor shall establish a dedicated Investigative Unit implementing a risk-based analysis process using data analytics to identify patterns of potential fraud, misuse, or payment irregularities.

2. Contractor Investigative Unit shall conduct proactive monitoring of CCS authorizations and provider payments to flag anomalies or suspicious activity.

3. Contractor shall deploy multi-layered fraud detection capabilities and support MSDE's obligation to recover childcare payments resulting from fraud.

4. Contractor shall refer any suspected instances of provider or customer fraud to the MSDE CCS Investigator.

5. Contractor shall review cases for front-end intentional and unintentional program violations and work directly with the MSDE CCS Investigator and the MSDE Office of Child Care staff to investigate and resolve violations.

6. Contractor shall maintain documented escalation standard operating procedures for suspected fraud cases and ensure timely reporting to MSDE.

7. Contractor Investigative Unit shall maintain a list of all program violations and potential fraud cases reported to the MSDE CCS Investigator, including name, type (provider or customer), and date of discovery.

8. Contractor Investigative Unit shall interview customers, providers, and employers based upon identified findings and provide findings and supporting documents to the MSDE CCS Investigator or Contract Monitor as needed.

9. Contractor Investigative Unit shall report monthly on cases reviewed and findings to the MSDE CCS Investigator or designee.

10. Contractor shall recommend system enhancements and internal controls to reduce fraud risk and strengthen payment integrity.

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Supporting Systems and Technology

1. Case Management and Call Center Solution. Contractor shall provide a document and case management solution and call center telephony platform that supports continuation of current business operations. The solution must be fully operational at the end of the 4-month transition-in period.

2. System Integrations. Contractor shall ensure that all integrations are maintained between its case management and call center systems and MSDE enterprise systems, including CCATS and the CCS Portals, in coordination with MSDE system owners and its technical teams. The Contractor bears full responsibility for the integration work on its side.

3. AI and Automation. Offeror/Contractor shall recommend types of automation and AI tools that can improve efficiency, customer service responsiveness, and minimize routine tasks. All AI components must comply with Maryland Executive Order 01.01.2024.02, the Maryland AI Governance Act (2024 Legislative Session, Senate Bill 818), DoIT AI Policies:

https://doit.maryland.gov/policies/ai/Pages/default.aspx and MSDE's Responsible Use of Artificial Intelligence Tools policy .https://marylandpublicschools.org/programs/pages/operations/oit/index.aspx All AI tools proposed must undergo MSDE's AI intake review process prior to deployment. DoIT approval does not constitute MSDE authorization. Recommended AI capabilities may include: adaptive AI for communication and customer service efficiencies; 24/7 self-service options for common inquiries; language translation support; back-office automation; and streamlined data ingestion and transmission. Any novel AI or automation components specific to MSDE use cases may be proposed as planned additions and are subject to MSDE written approval prior to deployment.

4. Contractor shall have capabilities for transmitting and receiving data s from other MSDE, State, and external partner agency systems (e.g., DHS) and shall be responsible for all licenses required to meet the scope of work. Refer to Section 2.2 and the IT Supplemental for additional information.

5. The Contractor shall implement and maintain automated monitoring and alerting for all Contractor-managed technology systems, including the case management solution, IVR system, call center telephony, and document management system. All system irregularities — application errors, integration failures, performance degradation, availability issues, and security anomalies

— shall trigger automated alerts to the Contractor's designated on-call personnel. The Contractor shall not rely on user reports or Contract Monitor notification to discover system problems.

MSDE shall have read-only monitoring visibility available on request. SLA response time obligations begin at the time an alert is generated, not at the time the Contract Monitor is notified.

Determining Eligibility for Customers

1. Contractor shall maintain sufficient personnel to ensure timely and accurate data entry and eligibility determinations within a high-production, closely monitored work environment.

2. Case Managers shall enter data from a variety of source documents, adhering to established standards for authorization, payment, and programmatic accuracy, and shall review and approve or deny benefits in accordance with MSDE policies and procedures.

3. Contractor shall process completed applications and interim changes within 3 to 5 Business Days depending on application type. Priority applications must be processed within 3 Business Days.

4. Contractor shall process as priority applications for the following referral categories:

CCS/Temporary Cash Assistance (TCA); minor parents; Head Start participants; recipients of Supplemental Security Income (SSI); individuals or families experiencing homelessness;

Maryland Office of Refugees and Asylees (MORA); and other MSDE-identified priority groups.

https://doit.maryland.gov/policies/ai/Pages/default.aspx https://marylandpublicschools.org/programs/pages/operations/oit/index.aspx

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5. Contractor shall review all countable income provided by the customer and enter all income into CCATS or other system used by MSDE.

6. Contractor shall review customer documentation, databases, and available State resources to determine eligibility.

7. Contractor shall enter data and case narration into CCATS or other system used by MSDE either directly or via the case management solution.

8. Contractor shall implement policies and procedures to ensure that Contractor staff do not authorize payments for themselves, relatives, household members, or associates. If Contractor or subcontractor staff are discovered to have violated these policies and procedures, the staff shall be removed from the Contract for the remaining duration of the Contract term.

9. Contractor shall develop an alternative method for application submission during State and county emergencies, subject to MSDE review and approval prior to implementation.

10. Contractor shall use available DHS systems, portals and/or forms, (currently Beacon and E&E) throughout the Contract term to complete eligibility determinations.

Managing Customer Cases

1. Contractor shall complete customer determinations, redeterminations, and interim changes within 5 Business Days of receiving all documentation, by the redetermination end date, or within the timeframes specified in the SLAs in the IT Supplemental.

2. Contractor shall transfer current and historical case management electronic records from the current contractor. Records must be maintained by a unique identifier such as party ID, case ID, or provider ID and accessible by completion of the transition-in period.

3. Contractor shall ensure that customer and provider records are secure and that confidentiality policies and procedures are followed at all times.

4. Contractor shall issue a Missing Information notice within 5 Business Days of receiving an initial, redetermination, or interim change application. Contractor shall send notice of the missing information weekly until the documentation is returned or until 10 days before eligibility determination, if the documents are not returned.

Managing Scholarships

1 Contractor shall, upon eligibility determination, issue scholarships to customers, allow provider acknowledgement and acceptance within 5 Business Days of scholarship issuance, and process scholarships within 5 Business Days of provider acceptance via the CCS Family Portal and Child Care Provider Portal or other software solution used by MSDE.

2 Contractor shall correct errors found on existing scholarships within 5 Business Days.

Frozen Status Process

1. Contractor shall manage the process for Frozen Waitlist Status due to lack of funds or other circumstances as directed by MSDE.

2. Contractor shall send a detailed Missing Information letter within 5 days of Frozen Status being lifted. Contractor shall continue to send notice of missing information weekly until the documents are returned or until 10 days before eligibility determination, if documents are not returned.

3. Contractor shall approve CCS applications within 30 days of Frozen Status being lifted.

4. Contractor shall remove customers from Frozen Status based upon written approval or guidance from MSDE.

Managing and Line Supervision

1. Contractor shall ensure customer service expectations approved by MSDE are performed in in accordance with SLAs and shall monitor Contractor personnel's work.

2 Contractor shall conduct monthly quality assurance reviews of a statistically valid sample of authorized cases, including new applications, redeterminations, and interim changes. Contractor is expected to complete self-checking quality assurance reviews with a 98% error free percentage unless otherwise directed by MSDE. Contractor shall document and use findings to inform staff

RFP for Maryland State Department of Education Page 18 of 19 training, process improvements, and corrective actions. Contractor shall meet SLAs and quality review standards as set forth by MSDE.

3. Contractor shall complete an additional review of 10 cases per month beyond the statistically valid sample (#2 above) from each case manager with an identified error to verify quality control expectations are met.

4. Contractor shall use MSDE's Comprehensive Program Review System (CPRS) that currently exists within the CCATS platform or equivalent, approved review system as directed by MSDE to provide a monthly report.

Quality Assurance Reviews

1. Contractor shall establish a Quality Assurance Review team to monitor transactions and case management processes for overpayments, underpayments, and authorization accuracy. There shall be a first level and second level review completed with the QA team.

2. Contractor shall conduct quality assurance reviews on the CCS application approval and denial process, provider payment process, and authorization lifecycle to identify deficiencies and improper payments before benefits are authorized.

3. Contractor shall conduct 100% pre-authorization review before CCS benefits are authorized by Contractor case managers throughout the Contract term

4. Contractor shall complete Quality Assurance Reviews and Comprehensive Program Reviews within 30 days of case authorization.

5. Contractor shall identify and report in writing to the CCS Investigator any intentional program violations or potential fraud through random record review within 24 hours of discovery.

6. Contractor shall prepare and provide documents required for audits or secondary review in the manner requested by MSDE.

Audits 1. Contractor shall assist in developing audit plans and providing direction to the unit completing programmatic audit reviews and verification.

2. Contractor shall develop audit procedures that address case management and provider payment authorization completed through automation and manually, including in response to emergency preparedness efforts.

3. Contractor shall provide overall audit support to MSDE across multiple audits from State and Federal auditors.

4. Contractor shall develop a quality assurance unit to complete reviews within the three components of the Contractor's solution: case management, provider payment, and call center. These reviews ensure program compliance with regulations and best practices, as well as minimize risk to childcare scholarship recipients and MSDE. These reviews shall be completed at a minimum monthly.

5. Contractor is responsible for providing documents supporting the authorization of CCDF funds, audit reports, and findings as requested by MSDE.

6. Contractor shall assist with documenting and submitting to the Contract Monitor the number of administrative errors made and the associated dollar value of the errors committed by the Contractor within the previous month. Contractor shall deduct overpayments resulting from administrative errors discovered in an audit from the next invoice.

7. Contractor shall complete an annual audit of each CCS provider as directed by MSDE.

Customer Service

1. Contractor shall maintain customer service staff dedicated to assisting customers and providers during Normal State Business Hours, addressing inquiries via phone, email, Portals, virtual appointment, and community events in a friendly and courteous manner.

2. Contractor shall use modern telephony systems and processes to ensure calls made after Normal State Business Hours received a response by the end of the next business day, following the voicemail received date.

RFP for Maryland State Department of Education Page 19 of 20

3. Contractor shall answer and complete research needed to address provider and customer inquiries, forward calls to appropriate units, and uphold MSDE customer service standards. A copy of MSDE’s Customer Service Overview is attached as Exhibit 5 for detail of MSDE expectations. The Contractor shall ensure all personnel providing services under this Contract always deliver the highest level of customer service. See the IT supplemental for information about SLAs for customer service.

4. Contractor shall maintain a recording of all inbound and outbound calls for one (1) year and shall have a process for quickly identifying and providing recordings to MSDE upon request.

5. Contractor shall provide data collection reports to MSDE on services provided, processed, completed, and reviewed, including number of calls received, applications processed, and similar metrics.

6. Contractor shall provide daily management and supervisory support to staff responsible for phone, email, fax, and mail support.

7. Contractor shall report suspected child or adult abuse and neglect to the DHS Local Departments of Social Services (LDSS) and to the MSDE Director of Child Care Scholarship immediately upon discovery.

8. Customer Service complaints shall be immediately addressed and corrected. See the IT Supplemental for information about SLAs for customer service.

Translation Services

1. Written Translation. Contractor shall provide document translation of eligibility documents into the following languages within five (5) Business Days of MSDE request: Spanish, French, Korean, Vietnamese, Yoruba, Arabic, Amharic, Tagalog, Chinese (Mandarin and Cantonese), and Russian.

2. Contractor shall translate requested eligibility and informational documents for posting on MSDE consumer education websites within thirty (30) days of request (no more than 10 requests per year). Contractor shall provide translated documents to MSDE; MSDE will update the applicable website.

3. Contractor shall translate informational and consumer education materials and parent and provider letters into the above languages upon MSDE request. The Contractor shall achieve a 95% turnaround within 5 Business Days.

4. Contractor shall ensure that all document translations are at least 98% accurate and shall use proper technical terminology.

5. Oral Interpretation. Contractor's Customer Service Unit shall be able to provide oral translation services in any language identified by a customer or provider calling for assistance.

The eleven (11) languages listed above are the most common. MSDE may add languages to the oral interpretation requirement by written notice to the Contractor.

Responding to Verbal and Written Inquiries

1. Contractor shall provide customer service representatives during Normal State Business Hours to address provider and parent concerns through verbal and electronic communication, including via the Family and Provider Portal.

2. Contractor shall have a solution in place to communicate with non-English language speaking childcare providers and parents.

3. Contractor shall maintain an up-to-date contact list with resources and consumer education, including regional licensing offices and childcare resource and referral agencies.

4. Contractor shall maintain a list of eligibility and payment concerns reported multiple times and escalate recurring issues to MSDE for investigation and mitigation.

Training 1. The Contractor bears full responsibility for all training and training materials under this Contract — including training for Contractor staff on CCS program functions and policies;

RFP for Maryland State Department of Education Page 20 of 21 training for childcare providers and families on the Portals and program processes; and any refresher or update training required by system changes or policy updates.

2. Contractor shall develop and implement a comprehensive training program for Contractor staff and provide ongoing training, including refresher training as required or mandated by MSDE at a minimum of monthly.

3. Contractor shall conduct super-user level training every other month and when directed by

MSDE.

4. Contractor shall develop, prepare, and revise training materials pertaining to CCS functions, policies and procedures, CCDF requirements, and operation of the CCATS system and Salesforce/CCS Portals or other systems and portals that MSDE uses, for MSDE review and approval. Contractor shall consult with the CCATS Contractor for technical information to prepare training materials.

5. Contractor shall develop online training materials and videos for parents, providers, and customers for MSDE review and approval and distribute after approval

6. Contractor shall train personnel, childcare providers, parents, and community partners using workshops, seminars, and virtual training regarding CCS functions, payments, processing, and associated CCS needs, Statewide, at a minimum quarterly or as requested by MSDE.

7. Contractor shall support MSDE consumer education outreach efforts.

8. When the Contractor requires explanation or demonstration of CCATS or Salesforce or other system or portal functionality to develop or update training materials, the Contractor shall submit a written request to MSDE. MSDE will coordinate with the CCATS Operations, Maintenance and Enhancement Contractor to provide the requested explanation or demonstration.

This knowledge-sharing obligation is a support function only — the Contractor remains solely responsible for all training content, training materials, and delivery.

Graphic Design

1. Scope.