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Performance-Based Contracting

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The Office of Community Corrections has been working towards the implementation of performance-based contracting within the community corrections system. Performance-based contracting is a contracting method that bases payments, extensions, and/or renewals on contract performance. Since August of 2015 when the original concept and plan for performance-based contracting in community corrections was developed by the Governor’s Community Corrections Advisory Council, the Office of Community Corrections has been establishing the groundwork for performance-based contracting. This included a complete revision of Colorado Community Corrections Standards, the development of new evaluation and audit tools, and baseline audit and evaluation measures. Currently, the Office of Community Corrections is in the process of determining the details of performance-based contracting with stakeholder input in order to answer the legislative request for information and move the project forward. To ensure stakeholders have an important voice, the Office of Community Corrections is utilizing the consulting services of Brian Pool from Government Performance Solutions, Inc.  

Update on legislative process for Performance Based Contracting

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The Office of Community Corrections (OCC) has been executing plans for performance-based contracting (PBC) within the community corrections system for several years. PBC represents an opportunity to maximize the performance, efficacy, and quality of community corrections services through the use of incentives. Under PBC, the community corrections system becomes one of continuous improvement. An improved community corrections system in turn leads to greater public safety, successful rehabilitation for individuals, and long-term fiscal savings in relationship to reduced recidivism. The move to PBC embodies the mission of the OCC: Through regulation, innovation and collaboration, the Office of Community Corrections strives to support our community partners in delivering superior services to clients, building a stronger, safer Colorado. 

The original plan submitted in 2015 by the Governor’s Community Corrections Advisory Council detailed a methodical and progressive approach to the implementation of PBC. Since then, OCC has undertaken large, system-wide improvements to pave the way for the implementation of PBC. Those changes include:

  • Comprehensive revisions of the Colorado Community Corrections Standards;
  • New audit and evaluation tools; 
  • A baseline measurement of community corrections programs.

In the 2021 legislative session, the Colorado legislature made a formal Request for Information (RFI) for the Department to provide an update on PBC:

“As part of its FY 2022-23 budget request, the Department is requested to submit a proposal for the implementation of performance based contracting. This proposal should include payment models, outcomes to evaluate the performance of community providers and local community corrections boards, baseline targets for the Program Assessment for Correctional Excellence (PACE) and core security audits, the frequency of PACE and core security audits, and a warning system for underperforming providers. The Department is requested to submit this proposal no later than January 3, 2022.”

The Department contracted with Government Performance Solutions, Inc., in April 2021 to help develop and facilitate a transparent and inclusive stakeholder engagement process to inform OCC’s response to the RFI. Stakeholder input is critical to developing and implementing a successful model for PBC in community corrections. Stakeholder views are acknowledged throughout the RFI response.

In order to keep you informed of the proposed plan as submitted to the legislature, view the full OCC response to the RFI.

RFI Highlights

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Key aspects of the department’s plan as submitted to the legislature include:

  • Performance Metrics and Targets
  • Payment Model
  • Timeline
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Performance Metrics and Targets

The performance metrics and targets included in the proposed plan represent items both in the direct and indirect control of system providers, with a focus on program quality, program compliance, and individual client outcomes.

Performance Metrics and Targets

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Risk-Informed Outcomes

Metrics: Successful Completion and Recidivism

Targets: Will be based on data analysis and formulas to set appropriate targets based on multiple years worth of Colorado system performance. 

Program Compliance

Metrics: Core Security Audit

Target: Composite score of 2 or higher

Program Quality

Metrics: PACE Evaluation

Target: Composite score one deviation above the mean of statewide baseline measurement

Key Performance Indicators

Metrics: Staff training and retention indicators

Target: Specific metrics and targets to be individualized with input from local community corrections board in consideration of local needs, barriers, etc.

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Payment Model

The payment model proposed includes several key factors:

  • Slow progression into increased incentives and decrease of base per diem to allow for the system to become accustomed to the new contracting and reimbursement method. 
  • A model that allows for future flexibility in metrics, weights, and payments that can evolve with the system over time.
  • Solutions to address concerns about funding and initial investment to ensure the success of PBC. 
  • Increased accountability and financial impacts for poor performance.

Timeline

The timeline submitted aims to get the first incentive payments out as soon as Fiscal Year 2022-23 for risk-informed outcomes, while proposing a slower timeline for other metric areas in regards to a reasonable audit and evaluation cycle. The audit and evaluation cycle takes into account resources needed and adequate time between audits and evaluations for improvements and corrections to be made. 

Our Shared Project Vision

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What is our objective?

Performance-based contracting is an innovative, transparent & fiscally responsible strategy ensuring local, safe & accountable providers deliver services & support to community corrections clients.

Why?

The criminal justice system and communities benefit from researched, rehabilitative sentencing options. Local boards and providers serve the diverse clientele with additional OCC support, training and technical assistance resulting in lower recidivism rates.

How will we get there?

This program offers the opportunity to listen and collaborate with community correction stakeholders, apply established research and provide clear, concise guidance to increase the quality and quantity of help & supportive programs to our communities. 

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Request for Information

As part of its FY 2022-23 budget request, the Colorado Department of Public Safety (Department) is requested to submit a proposal for the implementation of performance-based contracting. This proposal should include payment models, outcomes to evaluate the performance of community providers and local community corrections boards, baseline targets for the Program Assessment for Correctional Excellence (PACE) and core security audits, the frequency of PACE and core security audits, and a warning system for underperforming providers.

The Department is requested to submit this proposal no later than January 3, 2022.

Stakeholder Workshops - COMPLETE

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2021 Stakeholder Workshops

Timeline November 3, 2021

Payment Models October 20, 2021

Metric Details and Cut Off Levels October 6, 2021 

PACE Measurement September 22, 2021

Core Security Measurement September 8, 2021 

PBC Risk-Informed Outcomes Workshop August 25, 2021 

Performance-Based Contracting Orientation August 17, 2021 

Stakeholder Engagement Methods Workshop 

Questions or Feedback

PBC Timeline Workshop

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Agenda - November 3, 2021

PDF Version of November 3, 2021 Workshop Agenda

Description

Time Allotted

Agenda & Introductions

5 min

Timeline:  Where We Are 10 min
Activity:  How Often Should Audits Occur 15 min
Sample Timeline 15 min

Activity:  Sample Time

2-3 positive and negatives about sample timelines

15 min

Discussion:  Timeline

35 min
Workgroup Wrap Up 5 min
Discussion:  What are your hopes and concerns now? 15 min
Next Steps  5 min

Slide Presentations - November 3, 2021

Workshop Recording

PBC Payment Models Workshop

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Agenda - October 20, 2021

PDF Version of October 20, 2021 Workshop Agenda

Description

Time Allotted

Agenda & Introductions

5 min

Results of Homework & Discussion 10 min
Original PBC Plan and Urban Institute Report:  Payment Methods 15 min
Activity:  What do you like and what would you change? 15 min
Discussion:  Payment Models 35 min

Regulatory Role and Relationship to PBC

5 min
Activity:  Warning System 15 min
Concern:  PBC Funding 15 min
Next Steps  5 min

Slide Presentations - October 20, 2021

Workshop Recording

PBC Metrics Workshop

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Agenda - October 6, 2021

PDF Version of October 6, 2021 Workshop Agenda

Description

Time Allotted

Agenda & Introductions

10 min

Summary of Themes from First 3 Workshops 15 min
Original PBC Plan:  Weights of Performance Areas 5 min
Activity:  Should Areas of Performance Be Weighted? 20 min
Original PBC Plan:  Review of Performance Categories 10 min

Activity:  Defining Performance

How to define underperforming, acceptable performance, and incentivized performance

35 min
Statewide vs. Program Level Baseline for Performance Metric Measurement 10 min
Feedback Ask:  Occ will present idea to combine statewide and program-level metrics for feedback 10 min
Next Steps  5 min

Slide Presentations - October 6, 2021

Workshop Recording

PBC Program Assessment for Correctional Excellence Workshop

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Agenda - September 22, 2021

PDF Version of September 22, 2021 Workshop Agenda

Description

Time Allotted

Agenda & Introductions

10 min

Original PBC Plan: Program Quality as a Performance Measure 5 min
Activity: Programming, What matters to you? 15 min
PACE and it’s alignment with PBC Plan
Review of UI Recommendation
15 min
Activity:  What Standards/Areas would you emphasize 20 min
Discussion: Composite vs. Targeted Measures 25 min
Activity: Poll - Overall Preference
Discussion: Innovative Approaches to Using PBC Measures
25 min
Next Steps  5 min

Slide Presentation & Workshop Recording

September 22, 2021 Slide Presentation (PDF)

Screenshot of title slide for Workshop 3 September 22, 2021

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Core Security Measurement Workshop

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Agenda - September 8, 2021

PDF Version of September 8, 2021 Workshop Agenda

Description

Time Allotted

Agenda & Introductions

10 min

Original PBC Plan: Safety and Security as a Performance Measure

5 min

Activity: Safety, What matters to you?

15 min

What is Core Security Audit Today and its alignment with PBC Plan

Review of UI Recommendation

25 min

Activity: Pros and Cons of Composite Score vs. Specific Measures for Performance Cycle

What is your preference?

30 min

Activity:  What Standards/Areas would you emphasize?

20 min

Next Steps

10 min

Slide Presentation

Workshop Recording

PBC Risk-Informed Outcomes Workshop

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Agenda - August 25, 2021

PDF Version of August 25, 2021 Agenda

Description

Time Allotted

Agenda & Introductions

10 min

What are risk-informed outcomes? How does this fit with PBC plan?

15 min

Activity: How would you define success?

15 min

Current Available Data Points

Urban Institute (UI) Recommendations

15 min

Feedback on UI Recidivism Definition

15 min

Activity: What are your top 2 with data we have?

What are your top 2 wishes?

25 min

15 min

Next Steps

10 min

Slide Presentation

Workshop Recording

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Data Sets for Risk Informed Outcomes

Community Corrections Information & Billing Database Relevant Data Points for Risk-Informed Outcomes

PDF Version of Data Sets for Risk Informed Outcomes

Data Set

Reliability of the Data Set

Limitations

Assessments (Risk/Need Data)

  • LSI at Intake
  • Most recent LSI at termination

High

Updated LSIs may not occur for stays less than 6 months

Termination Reasons

  • Successful
  • Escape
  • Technical Violation
  • New Crime
  • Neutral categories

High

No detailed data about categories

Employment (Unemployed, Disability, Part Time, Full Time)

  • Employment at Entry
  • Employment at Termination
  • Total Earnings

High Employment Status Moderate Earnings

Is there a difference between having a job and having a quality job?

Lacking duration of employment.

Education Level (Highest grade achieved)

  • Education at Entry
  • Education at Termination

High

Many individuals already acquired desired/needed education level at entry. Time period it takes to increase education level.

Treatment Matching Specific to Substance Use Treatment

  • TxRW Step 7
  • TxRW Step 8

High

Limited to this one specific treatment area

Treatment Services Received (Dosage)

  • Therapeutic Services (6+ categories)
  • Ancillary/Educational Services (3 categories)

Low

Data entry expectations changed over time. Limited ability to match to assessed need, correct dosage

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Performance-Based Contracting Orientation

Workshop Recording

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Stakeholder Engagement Methods Workshop

The purpose of this workshop was to review the project, hear from stakeholders on their hopes and concerns about performance-based contracting, and determine stakeholder representatives for future workshops.

Workshop Recording