Tuition Rate Setting Methodology Redesign Consulting Services

Solicitation No.

2135629

Type / RFx

RFP

Level

state

Published Date

May 29, 2026

Due Date

June 26, 2026

NAICS Code

541611AI guide

Jurisdiction

new york

State

new york

Agency

Education, NYS Dept. of

Description: The New York State Education Department (NYSED) Rate Setting Unit within the Office of Management Services intends to procure under State Finance Law §163(6) a Discretionary Purchase for a qualified Minority and Women-Owned Business Enterprise (MWBE) vendor to: 1. coordinate a comprehensive study of alternative tuition rate-setting methodologies for approved school-age and preschool special education service providers for the purpose of developing a new tuition rate-setting methodology. 2. analyze stakeholder feedback to inform the study. 3. support NYSED in compiling data analysis findings from multiple sources into cohesive recommendations. 4. draft memos and reports on the study’s findings, including an analysis of other New York State agencies’ rate-setting methodologies, options and recommendations for an alternative rate-setting methodology or methodologies, cost estimates for such alternative methodologies, and an analysis of current provider tuition rates compared to tuition rates that would be established under such alternative methodologies, for distribution to stakeholders and New York State leaders. This procurement opportunity is limited to New York State businesses certified pursuant to Article 15-A of the New York State Executive Law. Background Pursuant to §§4003, 4405, 4408, 4410 of the New York State Education Law, New York State Education Department (NYSED) Rate Setting Unit (RSU) establishes, and the NYS Division of Budget (DOB) approves, annual tuition rates for approximately 1,000 approved special education programs, educating students with disabilities ages 3 through 21 years old who have been enrolled pursuant to articles 81 and 89 of the Education Law. These approved programs are operated by private school providers, special act school districts, BOCES, state supported programs, and public school summer school age and preschool programs. They include programs that offer special class (SC) and integrated special class (SCIS). NYSED received State funding under New York State’s 2023-24 Enacted Budget (and the funding amount and deadlines were updated in the 2024-25 Enacted Budget) for the purpose of studying and recommending alternative tuition rate setting methodologies for approved special education programs. The State law that provided funding for this study also imposes certain requirements on any new proposed rate-setting methodology. The current rate-setting methodology has been in place for nearly 30 years, with administrative and statutory reforms approved most recently to increase, stabilize, and accelerate provider reimbursement and to enable providers to retain a certain level of surplus funds. However, these reforms do not address all issues with the current methodology and/or the statutory requirements of a new methodology, such as the timeliness of rates, elimination of tuition-rate appeals, treatment of persistent under-enrollment, and rate equity and predictability. Scope of Work Based on direction and input from NYSED, the contractor will coordinate a comprehensive study of alternative tuition rate-setting methodologies to inform a final report to be issued by July 1, 2027, for the purpose of recommending a new tuition rate-setting methodology for implementation by NYSED by the 2029-30 school year. The study will incorporate feedback from approved providers of special education services in New York State and from other stakeholders, including students’ families, educators, school districts and counties and will be guided by the rate-setting and special education experts in NYSED. The study will include but not be limited to: · a comparative analysis of other New York State agencies’ rate-setting methodologies, including the methodology used for residential programs licensed by the Office of Children and Family Services (OCFS), Office of Mental Health (OMH), and Office of People with Developmental Disabilities (OPWDD). · multiple options and alternative rate-setting methodologies, informed by ongoing consultation with NYSED, and with consideration given to: o intensity of need (e.g., student to teacher/paraprofessional ratio, frequency and duration of related services, 1:1 services, instructional, medical, security, etc.), driven by the CSE’s/CPSE’s recommendation for a free appropriate public education in the least restrictive environment pursuant to the requirements of the IDEA. o enrollment capacity, projected enrollment, and actual operating enrollment. o cost estimates for such alternative methodologies. o an analysis of current provider tuition rates compared to tuition rates that would be established under these alternative methodologies. As required by the authorizing statute, at minimum, the recommended alternative rate-setting methodologies shall: · be fiscally sustainable for programs, school districts, counties, and the state. · substantially restrict or eliminate tuition rate appeals. · establish predictable tuition rates that are calculated based on standardized parameters and criteria, including, but not limited to, defined program and staffing models, regional costs, and minimum required enrollment levels as a percentage of program operating capacities. · include a schedule to phase in new tuition rates in accordance with the recommended methodology or methodologies. · ensure tuition rates for all programs can be calculated no later than the beginning of each school year (July 1). The study is already underway, in the early stages of completion, and NYSED seeks a contractor to coordinate remaining data analysis activities carried out by multiple parties, including: · education finance data analysts working on behalf of the University at Albany. · NYSED staff with expertise in tuition rate setting, claiming, special education, and state aid. · any other parties asked to contribute. Project Deliverables The contractor will draw from the few existing project artifacts developed thus far and facilitate the delivery of all remaining project documentation, which includes: · Four memos, on a schedule to be determined by NYSED in consultation with the contractor, to capture the analysis completed thus far and show substantial progress toward the comprehensive report and completion of the study. The memos will outline data analysis findings and other methodological considerations that directly address the mandates of the authorizing statute for this study. The first memo will outline key methodology parameters used by OCFS, OMH, and OPWDD to calculate rates, and describe how those parameters compare to NYSED’s methodology. · Comprehensive report: The analysis and methodology recommendations will be documented in the form of a comprehensive report, the initial draft of which will be submitted to NYSED by November 1, 2026 (unless an extension to this deadline is approved by NYSED). The first, second, and final draft of the report will each be considered a deliverable for purposes of payment under the contract. The report will: o describe all project activities (data analysis, stakeholder engagement, etc.) carried out to inform the study findings. o directly address how each recommendation addresses each mandate included in the authorizing statute. o describe each individual component of the methodologies proposed (e.g., individual formulas with summary explanation, data points and data origin, and expectation for how the components of the methodology will be implemented/adjusted based on relevant factors). o outline the comparative costs of the methodologies proposed, as well as a comparison of other benefits or relevant considerations. o include rate calculations and proposed rates using each of the recommended methodologies. The rate calculations may be embedded in the report but must also be provided in Excel. o identify which methodology represents the contractor’s highest recommendation, of the alternatives considered, and the rationale for the selection. o include a summary of feedback gathered from stakeholders and responsive elements of various methodologies. o be suitable for distribution to stakeholders and New York State government leaders, and must be clear and comprehensive to a range of audiences. o contain an implementation plan that indicates the timelines for rolling out the proposed methodology through a phase-in approach. NYSED will review the first draft report and request that the contractor make any necessary changes before the contractor submits the second draft report to NYSED no later than April 1, 2027 (unless an extension to this deadline is approved by NYSED). NYSED will once again review the report and request that the contractor make any necessary changes by June 17, 2027, so that NYSED may submit the final draft to the governor, DOB, and the Legislature by the deadline of July 1, 2027 – the contractor must provide NYSED with at least two weeks to review the final version prior to the July 1 deadline. · Stakeholder Engagement: Stakeholders in this effort include approved providers of special education services, their representatives (e.g., associations, attorneys, lobbyists, and certified public accountants), and the family members of the students they serve, as well as school districts and counties that pay providers the tuition (and then the state reimburses those districts and counties for a portion of the cost). NYSED will present and obtain feedback from stakeholders on proposed alternative methodologies at nine hybrid (virtual/in-person) regional stakeholder-engagement sessions anticipated to be delivered in December 2026 through February 2027 in the following regions: Capital Region, Central/Mohawk Valley Region, Finger Lakes, Hudson Valley, Long Island, North Country, Southern Tier, Western, and New York City. NYSED may conduct one additional virtual statewide session. NYSED will coordinate these meetings using spaces, such as BOCES and NYSED facilities, and record them for future reference. The contractor will analyze and compile results of these sessions and incorporate the feedback, as appropriate and in consultation with NYSED, into the final report and methodology recommendations. Each stakeholder engagement session is considered a deliverable for purposes of payment under this contract. · Ongoing Reporting and Consultation with NYSED: The contractor will consult with key NYSED staff in RSU and the Office of Special Education (OSE) throughout the contract term on a schedule to be determined by NYSED in consultation with the vendor. The vendor will produce the following reports and facilitate the following meetings, at a minimum. Each meeting and report is considered a deliverable for purposes of payment under the contract. All costs associated with preparing for and delivering/conducting these reports and meetings should be included in the deliverable price: o Within one month of contract execution, submit to NYSED a work plan for developing the alternative rate setting methodology recommendations and analysis, including milestones and timeline for completion, to ensure the initial draft report is submitted to NYSED by November 1, 2026, the second draft report submitted to NYSED no later than April 1, 2027, and the final report is submitted by June 17, 2027. o Meet weekly, from the start of the contract through July 1, 2027, via Zoom, Webex, or Microsoft Teams with key NYSED staff for approximately 1 hour (possibly more, at NYSED’s request) to provide a status update, discuss progress and strategies for achieving the objectives of this study and timeline. § Provide relevant documents and materials to discuss at these meetings, obtaining feedback from NYSED on work completed to date and obtain direction from NYSED to inform work going forward. These meetings will be web-based. § Provide sufficient detail on report components to allow RSU and OSE to review materials and determine whether feedback is needed to ensure alignment with NYSED direction and programmatic regulatory requirements. § Provide project/timeline updates for all tasks associated with the contract. o Prepare monthly reports, from the start of the project through July 2027, that summarize work completed, progress made toward objectives and in relation to timeline, and any challenges faced along with proposed resolutions. Contractor Staffing The contractor will dedicate staff with the appropriate experience and credentials who will be working directly with NYSED staff on a consistent basis. The contractor will identify one individual to be the primary point of contact, a project coordinator. Staff must possess strong project management, communication skills, and report writing experience. The project coordinator must be available daily via telephone and email. The contractor shall provide sufficient additional management and administrative support staff necessary to organize, prepare and carry out all administrative tasks associated with conducting the tasks and submitting resultant reports. Transition The contractor will ensure that any transition of work to NYSED prior to the end of the contract will be done in a way that provides NYSED with the ability to use the information provided by the contractor to fully implement a new tuition rate-setting methodology. This includes a complete and total transfer of all requested files, reports, and records generated from the inception of the contract through the end of the contract to NYSED during or upon expiration of its contract. The files, etc. will be transferred to NYSED by the contractor in the format requested by NYSED. The contractor will manage and maintain the appropriate number of staff to meet all requirements during the transition. All reporting and record requirements, security standards, and performance standards are still in effect until the last day of the contract. The contractor will continue to provide NYSED with technical and business process support as needed, after June 17, 2027, through the remainder of the contract. This support may include development of additional materials, analyses, and responses to questions or feedback received from DOB and other stakeholders. Tentative Timeline Kick-off meeting between NYSED and contractor Week 1 Weekly meetings begin Week 2 Contractor submits detailed work plan/timeline to NYSED Month 1 Contractor submits first draft report on study findings November 1, 2026 Contractor analyzes and incorporates feedback from nine regional meetings and possibly one statewide meeting with stakeholders December 2026 through February 2027 Contractor submits second draft report on study findings April 1, 2027 Contractor submits final draft report on study findings June 17, 2027 Contractor provides ongoing support as needed and implements transition plan After June 17, 2027, through the remainder of the contract Prospective MWBE vendors must submit a proposal including the following: · Description of proposed deliverables and work plan. · Description of organizational experience with similar large-scale projects. · Total cost of services (broken down by deliverables. For example, each meeting, memo, report, and stakeholder engagement session will have a clearly defined cost). The contractor will not be reimbursed for time or materials not covered by deliverable prices. This is a fixed price, deliverables-based contract. · Proposed payment schedule (Note: Advanced payments are not permitted. Payment can only be issued after a deliverable is completed.) Applicants Limited to: M/WBE providers only. Questions regarding the request must be submitted using the Question Submission Form by 5:00 p.m. on June 9, 2026. A Questions and Answers Summary will be posted to this advertisement on the Contract Reporter no later than June 15. Proposals should be submitted via the Application Form by 11:59 p.m. Eastern Time on June 26, 2026. The project is expected to be completed by March 31, 2028. Business enterprises awarded an identical or substantially similar procurement contract within the past five years: None Minority / Women Business Enterprise contracting goals (MWBE) Total MWBE Goals: 30.00%

1. May 29, 2026Published
2. June 26, 2026Responses Due