To: Board of Supervisors
From: Marla Stuart, Employment and Human Services Director
Report Title: CSB - Contract 38-110-1 KinderCare Learning Centers LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Employment and Human Services Director, or designee, to execute a contract amendment, effective July 1, 2025, with KinderCare Learning Centers LLC, to increase the total payment limit by $110,400 to a new payment limit not to exceed $4,905,971 to provide additional funding as a result of a rate increase for the Cost of Care Plus Program with no change to the period September 1, 2024 through June 30, 2026.
FISCAL IMPACT:
100% State (California Department of Education and California Department of Social Services) which budgeted in FY 25-26.
BACKGROUND:
On July 8, 2025, EHSD received official notification from the California Department of Social Services (CDSS) and the California Department of Education (CDE) stating that “Childcare centers not represented by Child Care Providers United (CCPU) or covered by the Memorandum of Understanding (MOU) would receive an updated Cost of Care Plus rate. According to Welfare and Intuitions Code (WIC) section 10277.2, as amended by Senate Bill (SB) 120, centers shall receive the increased Cost of Care Plus payment commencing July 1, 2025, and through June 30, 2026.
On December 28, 2023, EHSD issued Request for Proposal (RFP) 1202 to identify Head Start Program Childcare Partners. KinderCare Learning Centers LLC was selected through the bidder’s process. On December 17, 2024, the Board approved item C.85, authorizing a Contract with KinderCare Learning Centers, LLC for the period from September 1, 2024 to June 30, 2026, with a total payment limit of $4,795,571. This Contract provides a minimum of 84 to a maximum of 101 childcare program slots for children in the Early Head Start Program, and a minimum of 68 to a maximum of 82 childcare program slots for children in the Head Start Program. Additionally, the Contractor also provides 24 childcare program slots for State General Childcare and Development Program, and 16 childcare program slots for State Preschool Program. This vendor was selected per procurement requirements outlined in Administrative Bulletin 600.3.
This action seeks to approve a contract amendment to increase the Cost of Care Plus rate from $211 to $230 per child enrolled each month. The new total payment limit is $4,905,971, with no change to the contract term.
CHILDREN'S IMPACT STATEMENT:
This Contract supports one (1), three (3), and four (4) of Contra Costa County’s community outcomes of the Children’s Report Card”, (1) "Children Ready for and Succeeding in School"; (3) "Families that are Economically Self-Sufficient"; and (4) "Families that are Safe, Stable and Nurturing".
CONSEQUENCE OF NEGATIVE ACTION:
County will not be able to fund childcare slots for its community-based agency partner, KinderCare Learning Centers LLC.