Market Rate Survey FAQ

Those who are bidding will need to propose how to capture this data through a market rate survey/alternative methodology and a narrow cost analysis.  Collectively these will reflect the current market rates as well as the true operational costs.

The RFP includes the data points that must be included in the study, which include licensed capacity, current enrollment, waiting lists, impact of workforce on ability to operate at full capacity vs shortened hours and fewer classrooms, and number of full-time staff and part-time staff to meet licensing requirements.  Any additional elements would need to be included in the proposal for MiLEAP consideration.

MiLEAP encourages you to review other state MRS documents and past Michigan MRS documents for ideas on strategies that have been used. Here is a previous Michigan MRS.  

The design and methodologies used to reflect differences in rates for factors such as non-traditional hours, staffing models, operational expenses, and enrollment patterns will be identified by the applicant with final approval by MiLEAP.

Non-traditional hours typically refers to child care and early education provided outside of standard daytime weekday hours — typically before 7 a.m., after 6 p.m., overnight (11 p.m.–6 a.m.), or on weekends.

The study at a minimum will include assessing for any barriers providers have to participate in the scholarship program, which may include payment rates.  In addition, the Grantee will be required to ask child care providers what decision points they consider when deciding whether to accept the CDC scholarship or not and what policy changes would increase the likelihood of them caring for scholarship children.  The final report will answer the following questions:

• Why do providers limit (or not accept) CDC scholarship children?
• What barriers exist (payment rates, practices, etc.)?
• How could the scholarship reimbursement process be improved to increase provider participation?

Geography is a required element in the study and applicants should consider the current regional designations that support child care providers.  However, the design of the study and the proposed methodologies will be identified by the applicant with final approval by MiLEAP.

The final analysis will account for all factors that impact equal access, such as geographic variation, age of the child, hours of care, and type of provider.  The final analysis should fully capture the child care landscape in Michigan to determine sufficient payment rates to ensure equal access for eligible children that are comparable to child care services provided to children whose parents are not eligible for CCDF.

The final report submitted to MiLEAP will be reflective of the data at the time it was collected for this study. There is no expectation of updating this data between collection time and final report.

The final report submitted to MiLEAP will be reflective of the data at the time it was collected for this study.  There is no expectation of updating this data between collection time and final report.