A Guide to Developing Public-Private Partnerships
In Child Support Enforcement

CONTENTS

ACKNOWLEDGEMENTS

CHAPTER 1

PRIVATIZATION IN CHILD SUPPORT ENFORCEMENT

PURPOSE OF THE GUIDE

THE TREND TOWARD PRIVATIZATION

OVERVIEW

CHAPTER 2

PRIVATIZATION, COMPETITION, AND PARTNERSHIP

WHAT IS PRIVATIZATION?

Contracting Out is the Most Feasible Option for Child Support Enforcement

Why Privatize Child Support Enforcement Services?

Public Officials Must Carefully Weigh the Arguments For and Against Privatization

WHAT IS COMPETITIVE GOVERNMENT?

Three Types of Competition

Public-Private Competition May Improve Child Support Enforcement

WHAT IS A PUBLIC-PRIVATE PARTNERSHIP?

Public-Private Partnership in Child Support Enforcement

Guidelines for Creating Public-Private Partnerships

CHAPTER 3

MAKING THE PRIVATIZATION DECISION

A SAMPLER OF CHILD SUPPORT PRIVATIZATION DECISIONS

THE POLITICAL AND EMOTIONAL CLIMATE OF PRIVATIZATION

THE CONTROVERSY CONTINUUM

STRATEGIC PLANNING: THE KEY TO BETTER DECISIONS

CHAPTER 4

MAKING BETTER PRIVATIZATION DECISIONS

STEP 1: FOCUS ON OUTCOMES

Customer Outcomes

System Outcomes

STEP 2: IDENTIFY THE CANDIDATES FOR PRIVATIZATION

Analyze the Current Situation

Identify the Alternatives

Compare Costs

Select an Option

CHAPTER 5

GAINING SUPPORT FOR THE DECISION

STEP 3: CONSIDER THE NEEDS, CONCERNS, AND RIGHTS OF CURRENT PUBLIC EMPLOYEES

Keeping Public Employees Informed

Involving Workers in the Decision and Getting Buy-in

Ensuring Fair Treatment of Current Workers

STEP 4: BUILD AND MAINTAIN SUPPORT FOR THE PRIVATIZATION DECISION

Elements of a Communications Strategy

Building Support for Privatization in Child Support Enforcement

CHAPTER 6

DESIGNING AN EFFECTIVE RFP

STEP 5: DESIGN THE PRIVATIZED SYSTEM

ESTABLISHING THE FRAMEWORK FOR PRIVATIZATION

Type of Service and Contract Length

Implementation Strategies

Number of Partners

Type of Partners

DECIDING HOW THE SYSTEM WILL OPERATE

ANTICIPATING THE IMPACT ON THE TITLE IV-D AGENCY

STEP 6: WRITE AN RFP THAT PROMOTES RESULTS THROUGH PARTNERSHIP 6-13

ELEMENTS OF AN EFFECTIVE RFP

Why an RFP?

Basic Elements of an RFP

RFPs FOR FULL-SERVICE CONTRACTS

The RFP Document

Exceptions to the Standard RFPs

WRITING AND REVIEWING THE RFP

STEP 7: MANAGE THE BID SOLICITATION PROCESS CAREFULLY

OVERARCHING PRINCIPLES OF CONTRACTING OUT

Openness

Fairness

MANAGING THE SOLICITATION PROCESS

The Compressed Timeframe

Suggestions for Better Managing the Process

THE PROPOSAL EVALUATION PROCESS

Suggestions for Improvement

CHAPTER 7

DESIGNING AN OUTCOME-FOCUSED CONTRACT

STEP 8: DESIGN A PERFORMANCE-BASED CONTRACT TO IMPROVE OUTCOMES

SELECTING PERFORMANCE MEASURES

Types of Performance Measures

Performance Indicators for Child Support Enforcement Services

Recommended Measures

PAYMENT AND INCENTIVE SYSTEMS

Objectives of a Payment and Incentive System for Child Support Enforcement

How States Have Structured Payments and Incentives

Percentage-of-Collections Models

Fixed Fee Plus Incentives

Advantages and Disadvantages of Various Payment Models

Other Models to Consider

Contracting and Federal Incentive Funding

USING THE CONTRACT TO BALANCE RISKS

Provisions Commonly Included to Reduce Public Risk

Special Provisions of Child Support Enforcement Contracts

Balancing the Risk for the Contractor

DEVELOPING CONTINGENCY SERVICE PLANS

CHAPTER 8

MANAGING THE TRANSITION AND THE CONTRACT

STEP 9: PREPARE A DETAILED TRANSITION PLAN TO AVOID SURPRISES

Tips for a Successful Transition

Transition at the End of Contract

STEP 10: DEVELOP A COMPREHENSIVE MONITORING SYSTEM

Three Main Components of a Monitoring System

Who Should Monitor?

Handling Customer Complaints

STEP 11: MANAGE FOR RESULTS

Delegating Management Authority

Managing for Results in Child Support Enforcement

STEP 12: KEEP COMPETITION ALIVE

Competition During Bidding and Rebidding

Promoting Ongoing Competition

REFERENCES

EXHIBITS

Exhibit 1-1: Steps to Developing Public-Private Partnerships

Exhibit 2-1: Ten Types of Privatization

Exhibit 2-2: Arguments For Privatization

Exhibit 2-3: Arguments Against Privatization

Exhibit 4-1: Market Analysis

Exhibit 4-2: Cost Categories

Exhibit 5-1: Working for a Private Contractor: Opportunity vs. Security

Exhibit 6-1: Twelve Elements of a Well-Written RFP

Exhibit 6-2: State Responsibilities for Full-Service Contracts

Exhibit 6-3: Examples of Contractor Responsibilities

Exhibit 6-4: Ten Principles of Open Bidding

Exhibit 6-5: Eight Principles for Fair Public-Private Competition

Exhibit 8-1: Tips for a Successful Transition

Exhibit 8-2: Promoting Competition During the Bid/Rebid Process

FIGURES

Figure 3-1: Controversy Continuum

Figure 4-1: Outcomes of Child Support Enforcement

Figure 5-1: Steps to Minimize Effects of Privatization on Employees

Figure 6-1: Components of the Establishment Process

Figure 6-2: Subcomponents of the Establishment Process

Figure 8-1: Relative Degrees of Authority

TABLES

Table 4-1: Cost Comparison Chart

Table 7-1: Primary Performance Measures for Child Support Programs

Table 7-2: Performance Measures for Five Child Support Service Components

Table 7-3: Payment Terms for Full-Privatization Contracts

Table 7-4: Advantages and Disadvantages of Current Payment Models for Full-Service Privatization Contracts