CHHUNY Financial Management Services

  • Webinar is also available in Portable Document Format (PDF)

DOH Children's Waiver Environmental Modifications, Vehicle Modifications & Adaptive Assistive Technology

CHHUNY Financial Management Services (External link)

Purpose

  • Review expectations and requirements for:
    • Bonding
    • Bidding and Service Request Packets (SRPs)
    • Care Manager (CM)/C-YES vs. FMS role for bids and bonding

Reminders

Communications

  • Communications to and with FMS should be professional/appropriate.
  • Requests for updates on projects in progress.
    • Evaluations and SRPs.
    • Contracting with vendors.
    • Communicating with evaluators regarding findings.
    • Soft cap override reviews.
  • Setting realistic expectations with families about timeframes for completion.

Bonding

Bonding

  • What is bonding?
    • bond is a contract that provides assurance that the vendor will fulfill the obligations of their bid and complete all required work for a given project.
    • A bond also protects the project owner (FMS) if the contractor doesn't fulfill their obligations.
    • FMS is allowed to remit up to 50% of the cost of a project prior to the work beginning.
    • If a contractor does not fulfill their obligation, Medicaid dollars are protected and can be recouped.
  • What are Bid Bonds?
    • Bid bonds guarantee that a contractor will fulfill the terms of a bid if they win a contract.
    • Bid bonds also prequalify contractors to make sure they are capable and responsible.
    • Bid bonds are also a “good faith” gesture showing a vendor will be willing to obtain a performance bond if their bid is selected.
    • Bid bonds are required for all bids submitted in the SRP.
  • What are Performance Bonds?
    • A Performance bond is a financial guarantee that a contractor will complete a scope of work according to their contract.
    • Protects the obligee (FMS) and allows obligee to recoup funds if the contractor does not fulfill their contract.
    • The estimated cost of the performance bond can be factored into the bids provided by vendors.
    • Vendors should not purchase a performance bond until they have been notified that they have the winning bid.
    • Bonding has always been a requirement for modifications provided under the 1915c Children's Waiver.
    • FMS enforces this requirement by requiring proof of bid bonds and performance bonds.
    • Bids bonds must be provided with all bids in the SRP.
    • The selected vendor (winning bid) must provide proof of the performance bond before the sign the vendor agreement with FMS.
    • There are no exceptions to bonding requirements.
    • If a vendor is not willing to provide a bid bond, they cannot bid on the project.
    • If a vendor is not approved to obtain a bid bond or a performance bond, they cannot bid on the project.
    • Vendors need to work with their insurance providers on the bonding process.
    • FMS can answer questions as needed but FMS and CMs/C-YES are not responsible for managing the vendor's ability to be bonded.
  • What is the CM's/C-YES's role as it relates to bonding?
    • Ensure bids in the SRP include bid bonds.
    • Ensure any vendor bidding on the project is aware that they will need to obtain a performance bond if they are the winning bidder.
    • Provide vendor with the FMS bonding guidance document when requesting a bid.
    • Notify FMS of any concerns:
      • Ex) There is only one viable vendor in your region, and they cannot be bonded or will not agree to get bonded.
  • What is the Vendor's role as it relates to bonding?
    • Work with their insurance provider to obtain bid and performance bonds.
    • Work through any issues/concerns for their individual company as it relates to bonding.
    • Vendors should not be asking the CM/C-YES or FMS to manage the bonding process for them.
    • Vendors may reach out to FMS to confirm certain elements:
      • Ex) How much bond should cover.
  • What is FMS's role as it relates to bonding?
    • When SRP is submitted, confirm that all bids include an accompanying bid bond.
    • When project is at the contracting phase, obtain proof of the performance bond to support the work that is pending.
    • Review the performance bond to confirm it covers the total cost of the project.
    • Follow up with a vendor if they do not fulfill the obligations of the project (bond protection).

Bids

Service Request Packet (SRP)

  • Bids that are submitted as part of the SRP must:
    • Fully match the scope of work outlined in the submitted evaluation and only cover what is necessary and waiver appropriate.
    • Be itemized by materials/parts and labor.
    • Not include tax.
  • Bids should not be submitted with the completed SRP if they do not meet all requirements.
  • It is preferred that all bids are submitted at once as part of the completed SRP.
  • Bids should be uploaded to the FMS form as part of the completed SRP and should not be emailed to the FMS inbox.
  • FMS does not need to be notified as CM/C-YES obtain individual bids for a project.
  • CM/C-YES is responsible for reviewing the bids prior to submitting to FMS to confirm all elements required for a bid have been met.
  • FMS has developed a Bid Cheat Sheet to help CMs with their review of completed bids prior to submission.
  • Once a bid has been selected:
    • Contracting can take time.
    • Requesting updates daily or every few days ultimately slows down the process.
    • FMS needs to review multiple emails/respond to phone calls as opposed to outreaching to the vendor.
    • FMS maintains consistent outreach efforts to ensure contracting is secured as timely as possible.
  • Questions?