August 24, 2010

A More Uniform and Transparent Procurement and Rate-Setting Process Would Improve the Cost-Effectiveness of Regional Centers

An audit of procurement and oversight practices used by the California Department of Developmental Services (DDS) and the 21 regional centers found that processes primarily focused on ensuring that services are allowable, but lacked ways to ensure that the costs of services were reasonable. After the audit, DDS implemented new procedures to evaluate how the regional centers establish vendor rates and to ensure that contracts comply with a statutory rate freeze on all negotiated rates.