LINCOLN — State officials plan to put a private Kansas agency in charge of overseeing the care of abused and neglected children in the Omaha area.
In a notice posted late Monday, officials said they intend to award St. Francis Ministries, formerly known as St. Francis Community Services, the new contract to manage child welfare cases in Douglas and Sarpy Counties.
The agency, based in Salina, Kansas, offered to do the job over five years for $197 million, less than 60% of the bid from the current provider, Omaha-based PromiseShip.
“Based on their proposal, we are confident St. Francis will deliver high quality case management and child protection services that strengthen families and build protective factors for Douglas and Sarpy County children,” said Dannette R. Smith, chief executive officer for the Department of Health and Human Services.
St. Francis, which is affiliated with the Episcopal Church, has subsidiaries in Nebraska and six other states, plus two Central American countries. The Rev. Robert Smith, dean, president and chief executive officer, said the agency was founded in 1945 as a boys home.
The Nebraska subsidiary provides a number of services, including foster care and adoption homes, family support services, intensive family preservation and reunification services, and family-centered treatment in the central and western areas of the state. The agency has been working in Nebraska since 2012.
PromiseShip, a private nonprofit formerly known as the Nebraska Families Collaborative, currently manages Omaha-area cases under a contract worth up to $71.5 million annually. It was the only other bidder for the new contract, offering to do the job for $341 million for five years.
Ann Pedersen, a PromiseShip spokeswoman, said the agency was reviewing its options concerning the bidding process, but pledged to continue working with the state to provide a seamless transition.
“After 10 years of achieving great progress in serving children and families, we are extremely disappointed with the decision of the state,” she said.
Documents posted on the state’s purchasing website show that PromiseShip outscored St. Francis in all categories except cost.
Matt Wallen, child and family services director for HHS, said both bidders had strong proposals, with cost being the main difference. He said state officials initially questioned the large variance but were confident about going with St. Francis following presentations from both bidders.
PromiseShip has held the Omaha-area contract since 2009, when the state tried to privatize child welfare statewide.
The agency, formed by Boys Town and other private Omaha-area child welfare agencies, is the only surviving contractor from that experiment. HHS employees manage cases in all other parts of the state. The contract with PromiseShip has been expanded and extended multiple times since then.
Before issuing a request for proposals, state officials hired The Stephen Group, a government-consulting agency based in New Hampshire, to analyze whether Nebraska should continue contracting out case management or whether state workers should resume that responsibility.
The report from that analysis was completed earlier this year but HHS officials have refused to release the report so far.
Wallen, however, acknowledged Tuesday that the decade of privatization has not produced the results sought.
A 2014 evaluation concluded that privatization had not produced “any measurable benefit” for the state. Since then, the state’s own data has shown similar outcomes for cases handled by state employees and those managed by PromiseShip.
Wallen put some of the responsibility on HHS officials. He said the state has not been consistent about the outcomes it wanted and did not give PromiseShip enough leeway to undertake innovative approaches.
“What we wanted to do was really give privatization a chance,” he said.
HHS sought bids earlier this year for a five-year contract with the option of two single-year extensions. The winning bidder will be in charge of about 40% of the state’s total child welfare cases.
The next step will be negotiating the actual contract, with the contract to be signed by July 1.
State officials will do an in-depth review of St. Francis’ readiness to provide services before the state starts referring children and families to the agency. Transition of new and existing cases is expected to be complete by Jan. 1 next year.
“Continuity of services is our No. 1 priority,” Wallen said.
HHS tried to put the contract out to bid in October 2016 for the first time since the privatization effort began. On March 30, 2016, officials announced that they had chosen to stick with the collaborative that later became PromiseShip. But the other bidder, Magellan Choices for Families, filed a protest.
Officials responded by rejecting both bids and, in May 2017, extended the PromiseShip contract. The contract expires at the end of this year.
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Water covers a road near Valley, Nebraska, on Friday, March 15, 2019.
Heavy machinery stacks up concrete chunks on the shore of the Elkhorn River at the Q Street bridge as part of an effort to stabilize the bank on the recently flooded river.
Sarpy County Sheriff's Deputy Darin Morrissey rides an ATV through floodwaters in Hawaiian Village.
Omaha Roncalli's Shane Orr celebrates their double overtime win over Aurora during a semifinal game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
The Auburn bench and crowd react to Auburn's Cameron Binder hitting what would be the game winning shot against North Bend Central during the championship game in the Class C1 Nebraska state basketball tournament at Pinnacle Bank Arena.
Creighton's Jordan Hovey (5), right, celebrates hitting a home run with his teammates in the 2nd inning.
Nebraskaâ€™s Adrian Martinez runs out of the end zone after a play during spring football practice at the Hawks Championship Center in Lincoln, Nebraska.
Treyton Gubser, left, and his uncle Daniel Gubser paddle using shovels through the floodwaters after they rescued Daniel's kid's cat, Bob, in Hamburg, Iowa.
Highway 81 is covered in floodwaters south of Columbus, Nebraska.
A Nebraska National Guard helicopter flies over a flooded Waterloo, Nebraska, in March.
Cars drive drive across a flooded Platte River on Highway 50 just north of Louisville, Nebraska.
A Canada goose flies over Matthew J. Placzek's "Monument to Labor" sculpture as floodwaters from the Missouri River begin to recede on the Omaha riverfront.
Floodwaters closed Ave I at North 26th Street in Council Bluffs, Iowa.
A truck drives through a flooded road near the Platte River in April.
Lincoln Pius X's Austin Jablonski holds up the net after his team defeated Omaha Roncalli in the championship game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
Amelia Fritz, right, holds on to her daughter-in-law Tesha Fritz in Glenwood, Iowa. They were evacuated from Pacific Junction, Iowa, after floodwaters hit the town last night. They were part of 15-relatives all staying in the same house or in a camper in the front driveway.
Robert Jones looks around his flood damaged house north of Highway 50, near Louisville,Nebraska. The floor, which is normally a white tile, is covered in mud.
Aurora's Nicholas Hutsell, left, fouls Omaha Roncalli's Alexander Rodgers during a semifinal game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
Lincoln Pius X's Charlie Easley, left, and and Omaha Roncalli's Alexander Rodgers stretch for a loose ball during the championship game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
Humphrey/Lindsay Holy Family's Trent Reardon, left and Jason Sjuts celebrate their victory over Fremont Bergan during the championship game in the Class D1 Nebraska state basketball tournament at Pinnacle Bank Arena.
Aurora's Kaleb Moural wipes the sweat from his face during the second half against Omaha Roncalli during a semifinal game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
Bob the cat looks on from a basket in a boat after being rescued from floodwaters in Hamburg, Iowa.
A vehicle is stuck in floodwaters near 1st Street and Pierce Street in Fremont, Nebraska.
Tim Rockford, left, and David Bauer, tour the Bellwood Lakes neighborhood which was destroyed by the flooding days prior along the Platte River in Bellwood, Nebraska.
Lincoln East's Charlotte Bovaird practices her shot and she and her teammates warm up in the hallways before the start of the game. Lincoln East played Millard South in a Class A first-round basketball game during the girls state basketball tournament at the Pinnacle Bank Arena in Lincoln, Nebraska.
Elkhorn South's Ryee Gray (40) fights for a rebound with Sidney's Meaghan Ross (0).Sidney played Elkhorn South in a Class B first-round basketball game during the girls state basketball tournament at the Pinnacle Bank Arena in Lincoln, Nebraska. Elkhorn South defeated Sidney 51-37.
Westside poses with the championship plaque with the winning score on the wall behind them after Omaha Westside defeated Millard North 54-53 at Omaha Westside in Omaha, Nebraska.
Chris Saenz of Bellevue works out at FIT IN THE CITY in Papillion, Nebraska.
Dymond Meeks leaps across the snow pile in the center of Farnam Street near its intersection with 14th Street in Omaha, Nebraska, as she makes her way to work. Meeks said the snow was terrible. She said it took her 15 minutes to get down the hill her home is located on.
Hazley Eulberg, 10, of Kennard, Nebraska, takes in the trophy display in the Whitetail Kings Collection booth at the Omaha International Boat Sports and Travel Show at the CHI Health Center in Omaha, Nebraska.
The house-made carrot cake is one of the many desserts on the menu at J. Gilbertâ€™s Wood-Fired Steaks & Seafood in Omahaâ€™s Capitol District.
UNO's Mitch Hahn (44), right, grabs a rebound over the top of teammate JT Gibson (0). UNO played South Dakota State in a men's basketball game at Baxter Arena in Omaha, Nebraska.
Norfolk's Annika Harthoorn dives backwards at the start of heat 4 of the girls 100 yard backstroke at the Bob Devaney Sports Center on Friday, Feb. 22, 2019, in Lincoln, Nebraska, during the state swimming prelims.
UNO's Mitch Hahn (44) hugs his mom Kim Hahn following UNO's 85-84 win over South Dakota State. UNO played South Dakota State in a men's basketball game at Baxter Arena in Omaha, Nebraska.
Lincoln Pius X's Katie Stonehocker competes in the girls 200 yard freestyle at the Bob Devaney Sports Center on Friday, Feb. 22, 2019, in Lincoln, Nebraska, during the state swimming prelims.
Jen Freeman, who is training for a 100 mile race, jogs through the snow in Millard, Nebraska. Freeman said that she has to train no matter what the weather.
Mesquite grilled eight-ounce filet with heirloom carrots and burnt end mac and cheese. J. Gilbertâ€™s Wood-Fired Steaks & Seafood serves dinner seven nights a week in Omahaâ€™s Capitol District.
UNO's Matt Pile (40) gets tangled with Western Illinois' Zion Young (1), left and Brandon Gilbeck (52) in the first half as the University of Nebraska at Omaha hosts Western Illinois at the Baxter Arena in Omaha, Nebraska.
Omaha Burke assistant wrestling coach Jesse Peters takes a rest before the start of the semifinals at the CHI Health Center in Omaha, Nebraska, during the Nebraska State Wrestling Tournament. Peters said the nap helps him get through the long tournament days.
South Dakota State's Mike Daum (24) scores a basket against UNO. UNO played South Dakota State in a men's basketball game at Baxter Arena in Omaha, Nebraska.
UNO's Ayo Akinwole (10) drives past Western Illinois' Keshon Montague (22) in the first half as the University of Nebraska at Omaha hosts Western Illinois at the Baxter Arena in Omaha, Nebraska.
Creamed corn with bacon is among many side items on the menu at J. Gilbertâ€™s Wood-Fired Steaks & Seafood in Omahaâ€™s Capitol District.
The UNO basketball team celebrates their 85-84 win over South Dakota State. UNO played South Dakota State in a men's basketball game at Baxter Arena in Omaha, Nebraska.
UNO's KJ Robinson (5) reacts after missing a shot. UNO played South Dakota State in a men's basketball game at Baxter Arena in Omaha, Nebraska.
Omaha Bryan's Ladamien Sturdivant, left, tries to keep a hold on Fremont's Cody Carlson during their Class A 126 pound semifinals wrestling match at the CHI Health Center in Omaha, Nebraska, during the Nebraska State Wrestling Tournament.
Lincoln Pius X's Kara Owens rises from the water as she competes in heat 2 of the girls 100 yard backstroke at the Bob Devaney Sports Center on Friday, Feb. 22, 2019, in Lincoln, Nebraska, during the state swimming prelims.
Hilary Sehring punches the speed bag during an exercise round at 9Round Fitness in Omaha, Nebraska.
Gothenburg's wrestling coach Tom Scott cheers on Gothenburg's Wyatt Hotz as he takes on Lexington's Brady Fago during their 132 pound semifinals wrestling match at the CHI Health Center in Omaha, Nebraska, during the Nebraska State Wrestling Tournament.
Seventh-grade students from Nathan Hale Middle School are reflected in a â€œThe New Negro Escapist Social and Athletic Club,â€ a portrait by Rashid Johnson while touring 30 Americans, an exhibition from the Rubell Family Collection at the Joslyn Art Museum in Omaha, Nebraska. The traveling exhibit of 30 African American artists includes art with themes of slavery, the KKK and an emphasis on the beauty of black lives.
A man clears the snow from the top of a parking garage located near 10th and Jackson Streets in Omaha, Nebraska, after heavy snowfall.
UNO's Zach Jackson (21) delivers a slam dunk as teammate Ayo Akinwole (10) expresses his approval in the second half as the University of Nebraska at Omaha beats Western Illinois 77-63 at the Baxter Arena in Omaha, Nebraska.
Fremont assistant coach Cydney Granger cheers on Fremont swimmer Lauren Gifford in the girls 500 yard freestyle at the Bob Devaney Sports Center on Friday, Feb. 22, 2019, in Lincoln, Nebraska, during the state swimming prelims.
A pedestrian cruises past a sign of seasons to come in the window of Palm Beach Tan, 5417 S. 96th Street in Omaha, Nebraska.
UNO's Ayo Akinwole (10), left, drives around South Dakota State's David Jenkins (5). UNO played South Dakota State in a men's basketball game at Baxter Arena in Omaha, Nebraska.
Jim Stotts, of Glenwood, Iowa, walks a few laps around Stinson Park while passing time before going to see a movie at Aksarben Cinema, in Omaha, Nebraska.
Chris Kotulak, who is the Chief Operating Officer at Fonner Park, demonstrates how to play a PariMAX's historical horse racing game at the Fonner Park executive offices in Grand Island, Nebraska.
Western Michigan's Ethen Frank (26), Lawton Courtnall (10), and Hugh McGing (16) celebrate a goal during the second period of a college hockey game at Baxter Arena in Omaha, Nebraska.
People jog through the snow at Lake Zorinsky in Omaha, Nebraska.
Gage Beins, right, dumps snow on his friend Jeremy Boyd as they goof around in the snow at Lake Zorinsky in Omaha, Nebraska.
Jamie Kotera, 59, of Springfield, Nebraska, who works out five times a week is seen during her strength training workout with personal trainer Tyler Kottas at Better Bodies Fitness in Omaha, Nebraska.
A deer forages for food at Chalco Hills Recreation Area in Omaha, Nebraska, as snow falls.
A red-tailed hawk stands in the grass near 144th Steet and Giles Road in Omaha, Nebraska. He soon took off again as the light changed and traffic began to move.
Intern Daniel Holm, left, works with stage manager Amy Thomas backstage. The two were keeping track of the play as it progressed to know when they needed to make scene changes. Cast members were rehearsing "The Hobbit" at the Circle Theatre in Omaha, Nebraska.
The kimchi ramen at Ika San, new in the Old Market, includes the restaurant's signature crispy pork belly and rich pork broth, plus house-made kimchi, which is fermented cabbage.
Tom Dahir clears the snow from his driveway in Omaha, Nebraska, near the intersection of 97th Street and W. Center Road after a heavy snowfall.
UNO's Zach Jordan (27) and Western Michigan's Cam Lee (28) battle for the puck during the first period of a college hockey game at Baxter Arena in Omaha, Nebraska.
Actor Patrick Brusnahan does his makeup before the start of rehearsal. Brusnahan played the dwarf Bombur. Cast members were rehearsing "The Hobbit" at the Circle Theatre in Omaha, Nebraska.
Diederick Dillon, an Omaha Burke junior, clears snow from his car in the school's parking lot in Omaha, Nebraska. Omaha Public Schools were let out early because of the weather. Dillion said he was headed straight to work, despite being let out of school early.
A woman makes her way to a store as snow falls at Village Pointe in Omaha, Nebraska.
Milliner Margie Trembley designs, constructs and sells hats from her shop called Margie Trembley Chapeaux in Springfield, Nebraska.