Department of Human Services Rate Methodology

The purpose of this Request for Proposals (RFP) is to establish a contract with a qualified consultant to provide comprehensive rate-setting methodology and annual rate reviews using prospective rate adjustments for services delivered by home and community-based (HCBS) providers for the South Dakota Department of Human Services (DHS), including the Division of Long Term Services and Supports (LTSS) and the Division of Developmental Disabilities (DDD).
The selected Offeror will assist DHS in maintaining rate methodologies that are transparent, data-driven, fiscally responsible, and reflective of the costs associated with the efficient and effective delivery of services. The work will support DHS's responsibilities under South Dakota Codified Law Chapter 28-22, enacted through Senate Bill 147 (2017), which requires each category of covered service to undergo a comprehensive rate modeling analysis at least every five years and establishes specific requirements for the information and stakeholder involvement included in the rate modeling process.
The resulting contract will establish an ongoing rate review process consisting of: 1. A comprehensive rate methodology and rate modeling review at least once every five years for each service category; and 2. Annual rate reviews during the intervening years to evaluate changes in provider costs, labor market conditions, inflation, and other relevant factors and to determine whether adjustments to existing rates are warranted.
The contractor will provide DHS with the analysis, documentation, stakeholder facilitation, rate models, recommendations, and reports necessary to support DHS's rate-setting responsibilities, budget development, federal requirements, and communication with providers and other stakeholders.
Offerors may elect to submit a proposal for one, two, or all three of the service areas identified in the Scope of Work. Offerors are not required to submit a proposal for all service areas in order to be considered for an award.
For purposes of this RFP, the service areas are: 1. Long Term Services and Supports 2. Developmental Disabilities Services 3. In-Home Services
Offerors shall clearly identify in their proposal which service areas they are proposing to provide. For each Scope selected, the Offeror shall demonstrate its qualifications, experience, proposed approach, staffing, timeline, and cost associated with completing the applicable work.
An Offeror's decision not to submit a proposal for a particular Scope will not, in itself, negatively affect the evaluation of the Offeror for any other Scope for which it submits a proposal. However, the Offeror must demonstrate that it possesses the qualifications and capacity necessary to successfully perform each Scope for which it submits a proposal.
Offerors may email inquiries concerning this RFP to obtain clarification of requirements. No inquiries will be accepted after the date and time indicated in the Schedule of Activities. Inquiries must be emailed to Mary Rea at Mary.Rea@state.sd.us with the subject line "RFP # 26RFP20135".
The State will respond to offeror's inquiries (if required) via e-mail. In addition, all inquiries and the State's response will be posted on the state's e-procurement system. Offerors may not rely on any other statements, either of a written or oral nature, that alter any specification or other term or condition of this RFP. Offerors will be notified in the same manner as indicated above regarding any modifications to this RFP.