Arizona Department of Economic Security - Children Support Services - Foster Home Recruitment-Related Services Contracts

The Arizona Department of Economic Security (Department) contracts for most services related to foster home recruitment and paid contractors approximately $18.9 million in fiscal year 2012 for these services. Although contracting appears to be an appropriate method for obtaining these services, the Department should improve its contracting process. Specifically, its contracts lack adequate performance measures, appropriate ties between contractor performance and department monitoring, and workable financial incentives. The Department plans to revise and rebid the contracts and, as part of this process, should (1) solicit stakeholder input in developing the new contracts; (2) develop clearly defined and realistic performance measures that reflect contract goals; (3) develop formal policies and procedures for monitoring contracts; (4) modify its incentive structure; and (5) continue to contact other states and experts or consultants for assistance, as appropriate.