Section 530.250  Types of Contracts

a)         Base Plus Performance

1)         This contract is a partial assurance arrangement which divides the total dollars into two funding components.  The purpose is to develop a customer driven contract which allows the agency to provide the needed array of services.

2)         The "Base" component provides the guarantee that between 30 and 70 percent of the total contract dollars for a designated minimum number of program slots available to DHS-ORS customers will be paid to the agency.  Each contract will specify the base percentage guaranteed the agency, which is determined by the agency during annual contract negotiations.

3)         The "Performance" component provides payment for outcomes attained.  The number of agreed upon outcomes is determined through negotiations between DHS-ORS and the agency.  The balance of the total contract not used in the base component is divided by the number of projected outcomes to identify an outcome value which will be paid to the agency for each verified successful outcome achieved.  In addition, agencies may be able to earn an additional percentage, up to the ceiling established by DHS-ORS, of the performance component amount for additional competitive outcomes.

4)         Equal payments based on the entire contract will be made for the first 10 months.  The 11th payment may be adjusted based on actual performance.  The 12th and final payment will be based upon the total outcomes reported and verified.  If the agency exceeds both competitive and total outcome goals, DHS-ORS will allow payment for additional competitive outcomes, depending on available funding.  Payment for additional outcomes will be added to the 12th payment.  All payments shall be based on each agency's contract.

b)         Level of Funding

1)         Level of funding is an arrangement whereby funds are set aside based upon the projected number of weeks of service that will be provided to DHS-ORS customers and successful outcomes.  Contract dollars are earned through provision of services or the attainment of outcomes, whichever is higher.  This type of contract provides no payments for performance over and above the levels specified in the contract.

2)         Equal payments based on the entire contract will be made for the first 11 months.  The final payment will be made without adjustment when the service or outcome levels reach the projected levels.  If service and successful outcome levels both fall below projected levels, the agency will be required to reimburse the Department for the percentage of service undelivered or outcome levels not reached.

c)         Cooperative Working Rate Agreement

            These are fee for service agreements that identify approved services and rates of payments.  They require no contract and have no funding set aside or assured funding levels.  The agency is paid only for services provided through individual authorization.

(Source:  Amended at 23 Ill. Reg. 14663, effective December 13, 1999)