Inter-Departmental Correspondence

Human Services Agency



February 11, 2003


March 4, 2003



Honorable Board of Supervisors


Maureen D. Borland, Director, Human Services Agency


Mark Lane, Southern Regional Director, Out of Home Placement


Agreement with MAXIMUS, INC.


Adopt a Resolution:



Waiving the Request for Proposal Process (RFP); and



Authorizing the execution of an Agreement with MAXIMUS, INC. for the amount of $130,000 and the term of February 1, 2003 through January 31, 2007.



The Contractor has a State Master Services Agreement through which they provide revenue maximization services to state and county departments, including reviewing out-of-home placement foster care cases to determine if any are eligible for more federal Title IV-E revenue than currently claimed, thereby decreasing County cost. Payment to the Contractor is based upon a percentage of any increased revenue due the County.


In addition, as required by the Master Services Agreement, the County would pay an administrative fee not to exceed $5,000 to the state to use this Agreement. This cost is included in the recommended Agreement total of $130,000.


As the Master Services Agreement already exists with the state, and as other contractors that provide revenue services collect the same percentage of revenue in fees, a waiver of the RFP process is also requested.



Beginning in February 2003, MAXIMUS INC. will conduct revenue maximization services by reviewing 100% of the Human Services Agency current out-of-home placement cases, including County-only cases, that are not federally eligible, to determine if any are eligible for federal revenue. MAXIMUS INC. will review cases retro-actively for eighteen (18) months and project eligibility forward for a possible four (4) years. Any increase in the proportion of federally eligible cases to those not federally eligible due to the review will also increase federal revenue in the Child Welfare Services program.


This Agreement has been reviewed and approved by County Counsel as to form. Risk Management has reviewed and approved Contractor's insurance for this Agreement.


Vision Alignment

The Agreement with MAXIMUS INC., keeps the commitment of: Responsive, effective and collaborative government and goals number 20 and 22: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain and County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County. The Agreement with MAXIMUS INC., contributes to this commitment and goal by providing a more efficient review process and cost savings to the County therefore allowing the County to budget these funds in other areas of need.


Fiscal Impact

The recommended contract pays the Contractor on a contingency basis. The Human Services Agency will pay the Contractor a percentage of the net increase of the revenues received for Aid to Families with Dependent Children - Foster Care and Child Welfare Services by the County from the Contractor's services. If there is no net increase in revenues, the Contractor will receive no payment.


The time period for the percentage fee will begin with the filing of the initial claim for additional revenue and continue for 48 months from the date of filing of the initial claim in accordance with the following schedule:


Payment Term

Percentage of Revenue


Retroactive Payments:



Year One:



Year Two:



Year Three:



Year Four:



The estimated maximum gross amount of new revenue to be realized by the County under the contract is $705,000 in the first year, including retroactive payments, and $850,000 in years two through four of the Agreement. Under the maximum amount of new revenue, the Contractor would receive a percentage of revenue not to exceed $125,000 under the proposed payment schedule, and the state would receive $5,000 for use of the Master Agreement. There is no Net County Cost.