§ 3170.83. Establishing rates.
(a) When the county obtains social services for children under a purchase of service agreement, one of the following methods shall be used to establish the rate of payment and select the provider:
(1) The county may request bid proposals in writing. When using this method the county shall follow its practices established under the appropriate county code sections applicable to bidding and procurement of goods and services. Contracts need not be awarded solely on the basis of the lowest bid received; however, county officials shall exercise prudent judgment in their selection of a provider. Therefore, the method and criteria used in evaluating all bid proposals received shall be documented and kept on file in the county. Maximum levels of Departmental reimbursement for unit of service funding are outlined in § 3170.84 (relating to maximum levels of reimbursement) and shall be considered by the county in developing its methodologies for evaluating bid proposals.
(2) The county may establish a maximum rate or range of rates for the service to be purchased. Rates shall be developed:
(i) Considering the reasonableness of cost for the service.
(ii) In an open and public manner.
(iii) On an annual basis with necessary revision and update.
(b) Based on the rates, the appropriate county authorities shall negotiate agreements with providers of service. The policies as applicable in § § 3170.41—3170.49 (relating to personnel expenses), 3170.51—3170.61 (relating to operating expenses), and 3170.71—3170.77 (relating to fixed assets) may be used as guidelines in developing the rate for the services. In addition the maximums outlined in § 3170.84 (relating to maximum levels of reimbursement) shall remain binding on the counties regarding the amount of costs in which the Department will participate.
Cross References This section cited in 55 Pa. Code § 3170.11 (relating to purpose); 55 Pa. Code § 3170.22 (relating to direct provision of services); and 55 Pa. Code § 3170.23 (relating to purchase of service).
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