REQ-DASOBO-00073939 Edunomics Lab.pdf

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REQUEST FOR SPECIAL PROCUREMENT No. REQ-DASOBO-00073939

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: Oregon Department of Education (“ODE”)

2. Date of Request: 04/26/2024 3. Agency Number: 581000

4. Agency Contact Name: Lena Baisden-Cleave 5. Phone: (971) 208-0266

6. Type of Request: Class Special Procurement X Contract-specific Special Procurement

7. Time Period Requested: From: June 1, 2024 To: December 31, 2024

8. Total Estimated Cost: $170,000.00

9. Title: Supplies and/or Services to be Acquired: Custom Expertise in Education Funding Modernization;

Learning Sessions and Consultation Services (collectively “Services”)

ODE seeks expertise from a national organization with knowledge in education funding, modernization, and formula design and features to advance Governor Tina Kotek’s plan for statewide changes to education funding and formula.

10. Request, Background, Current Need, and Proposed Contracting Procedure:

a. Request:

ODE and the Office of the Director request approval of this Special Procurement Request #DASOBO- 73939 (the “SP”) to directly contract with Edunomics Lab to provide a series of learning sessions that (1) provide consultation to inform education funding modernization and key insights regarding formula design and features; (2) create common language regarding education funding, including formula design and features for key stakeholders; (3) equip state education leaders, stakeholders, superintendents, and district personnel with practical strategies for managing school finances and driving equity in spending and outcomes. Edunomics Lab is a Georgetown University research center dedicated to exploring and modeling complex education finance decisions to inform policy and practice.

The contract term will be June 1, 2024 through December 31, 2024.

b. Background:

Governor Tina Kotek, following the Portland Public Schools strike and additional concerns raised regarding funding, established a priority for ODE and the Oregon Legislature to examine and make updates to the school funding formula, which will impact how the 197 school districts in Oregon are funded, and consequently update a 25-year-old outdated formula. The Governor also directed ODE to make budget and funding information more transparent to the public. Therefore, ODE aims to meet the priorities set by the Governor by contracting with an organization that provides specialized knowledge on funding finance and formulas, with specialized expertise in statistical methodologies.

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The Governor has also expressed interest in a bill for the upcoming 2025 legislative session that will make the necessary changes to the funding formula. This means the goal for ODE is to (1) work with the legislature on updating the funding formula, and (2) create a system for more transparency with finance and budget information.

c. Current Need:

Oregon’s public education funding formula is outdated and in need of an overhaul. Oregon’s current formula is overly complicated and does not meet the needs of all 197 school districts, which involves many factors such as varying contextual needs (e.g., spending on FTE, transportation, etc.); the difference in needs between small, rural, and large school districts as Oregon schools are diverse in many ways including geography; and how the statistics in the current funding model calculates need. These are some significant challenges that need to be addressed to update the funding formula.

Currently, the Quality Education Commission (“QEC”) is charged with refining the Oregon Quality Education Model (“QEM”) and recently, have argued that the model needs to consider additional factors that impact school districts. The QEM essentially produces estimates on how much a given school district should receive in funding. However, there are significant funding gaps between what the model estimates and what school districts receive. For example, the QEC argued that the expansion of online learning options, teaching methodologies, and the fact that rural and remote schools are more expensive to operate, are all factors that need to be considered in the funding model. Furthermore, rural and remote schools do not currently offer students with similar leaning opportunities compared to larger schools. This also must be considered. Therefore, a thorough examination of the mathematical model, using an equity lens, is required.

Edunomics Lab can meet these specific needs as the leading expert in the country on education funding, so that ODE is able to learn more about education funding broadly, and education funding formulas specifically. Edunomics Lab brings expertise in statistical methodologies, which is necessary to address the complicated statistical nature of the funding model.

The deliverables will include the following:

• Development of content and materials for up to 4 learning sessions hosted by ODE. As host, ODE will market and invite all participants.

• Deliver content for up to 4 learning sessions (1-2 hours each). Sessions may be live webinars conducted virtually via Georgetown University’s Zoom platform or in-person at ODE or ODE partner-hosted events. Any live sessions will be held on one mutually agreeable day in one or two locations.

All parties will understand the requirements of travel and that travel will be governed by the Oregon Accounting Manual (as opposed to Georgetown policies or guidance).

• Learning sessions will include interactive components for audience engagement and dedicated time to address participant inquiries and foster discussion.

• Provision of supplementary resources such as toolkits, guides, and data displays.

• Host up to 2 “office hours” style learning sessions to address participant follow-up questions relative to content presented or context-specific implementation. These sessions will be held virtually via Georgetown University’s Zoom platform.

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d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, ODE will issue a public notice regarding approval of this SP Request on the OregonBuys eProcurement system for a period of seven (7) calendar days.

2. The public notice will include provisions that any affected party may protest the approval of this SP Request.

3. DAS Procurement Services will respond to and resolve all protests, if any.

4. If no protests to this approved SP Request are received or sustained, ODE will direct award and negotiate a contract with Edunomics Lab as set out in Sections 10.a and 10.c above.

5. Pursuant to OAR 137-045-0015, ODE will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the contract.

11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

To ensure ODE aligns with and accomplishes Governor Tina Kotek’s priority for statewide changes to education funding, including the examination of the funding formula, it is necessary to access these contracted services and to make this request though the Special Procurement process.

Edunomics Lab is uniquely situated to provide ODE with services to update the funding formula.

Specifically, the organization brings extensive expertise in education finance, offering in-depth research and analysis on funding policies, resource allocation, and financial management in education systems. Their team has expertise in economics, educational policy, and finance with extensive statistical expertise, utilizing qualitative and quantitative statistical methods to examine the complexities of education funding. Their team includes economists, statisticians, and data analysts with expertise in advanced statistical techniques (e.g., regression analysis, econometrics, and cost-effectiveness modeling).

Edunomics Lab also brings an evidence-based approach that emphasizes evidence-based practices and data-driven research to inform funding strategies, which is highly valuable, and grounded in empirical evidence and analysis. Furthermore, Edunomics Lab has a track record of working with state education departments and impacting education policy at the local, state, and national levels.

Unlike other organizations that may focus solely on a single approach to education funding, one of the unique services Edunomics Lab provides is customization and a comprehensive approach. They recognize that each state is inherently different and local context matters to address the complexities of education funding, which is required given the differences of school districts in Oregon (e.g., rural vs urban). A single approach will not work given that about 66 percent of the school districts are small, rural, or remote, and given the concerns raised by the QEC. A commitment to equity is necessary to meet Governor Tina Kotek’s priority.

Edunomics Lab also offers technical assistance, policy guidance, and capacity-building support to help with the navigation of funding issues. ODE requires an organization with this holistic approach and Edunomics Lab is poised to provide that level of technical service.

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12. Findings to Satisfy the Required Standards: This proposed special procurement:

__X___ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

This Special Procurement is unlikely to encourage favoritism or reduce competition due to the unique subject matter expert knowledge required to meet the Governor’s priority of updating Oregon’s education funding model.

As described above, Edunomics Lab is uniquely qualified to provide these services and help achieve the identified priorities of the Governor and the agency. Use of a competitive solicitation process for acquiring these services could lead to delays and other potential problems. If Edunomics Lab was not selected, another providerwould likely lack the necessary comprehensive expertise and experience working with state education departments on funding formulas. This could necessitate subcontracting, likely with Edunomics Lab, or drawing heavily from their work, which would lead to delays in service completion. Moreover, without approval of this Special Procurement to directly contract with Edunomics Lab, ODE would struggle to find another provider with the necessary expertise, risking the effectiveness of the funding model update, or worst case, failing to timely update the funding formula.

Given Edunomics Lab's established success in this domain, their involvement ensures efficient and effective service delivery, aligning with ODE and the Governor’s objectives.

and

______ (b)(i) will result in substantial cost savings to the contracting agency or to the public because:

___X__ (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because:

Edunomics is the predominant national expert in the county on education funding. They consist of subject matter experts that bring a strong record of working with numerous state education departments, a holistic approach to the content, an equity stance on education funding, and the skills and knowledge to help update the Oregon education formula model. Any other respondent to a competitive solicitation would likely lack the subject matter expertise to effectively and timely provide the state with the specific tailored funding formula information needed to guide the update of the Oregon education formula model. Approval of this Special Procurement Request substantially promotes the public's best interest.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through OregonBuys. Agency may elect to attach a signed Request.

Signature: e.g. Electronically in OregonBuys _________________ Type Name: Date:

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PART B. The Department of Administrative Services completes Part B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and (b)(A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125- 247-0288 implement ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The Authorized Agency shall post the Public Notice on OregonBuys. The Special

Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Agency shall comply with the requirements of ORS 279A.165 and

OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

APPROVED:

Jay Jackson, Procurement Policy Officer Date Department of Administrative Services

05/03/2024