ANALYSIS OF THE LEGAL FRAMEWORK OF SOCIAL SERVICES IN BULGARIA Q&A (2004)
GENERAL PART
1. What is the essence of the latest amendments to the legislation regulating social service provision?
The latest amendments to the Social Assistance Act were promulgated in State Gazette, No.129/ 29.12.2002 and entered into force on 01.01.2003. The Implementing Regulation of the Social Assistance Act (IRSAA) was also amended in line with the new elements in the law and was promulgated in State Gazette No. 40/29.04.2003. The amendments in these regulatory documents outlined the new philosophy of state policy in the area of social services by laying the foundations of their decentralization and deinstitutionalization. Criteria and standards for social services were introduced for the first times to ensure the quality of social services, and social service providers are now required to enlist in a register in the Social Assistance Agency (SAA).
2. What does “decentralization” mean in the area of social services?
“Decentralization” means that the state delegates rights for delivering social services to third parties – representatives of the not-for-profit sector and the business community. The social service provision is generally an activity within the remit of the state, but the state as a public entity with numerous functions would not be able to provide quality social services if it keeps this activity entirely within its remit. This mandates that under certain conditions social service delivery be delegated to third parties possessing the necessary experience, and that rights be delegated and funding made available to local authority bodies – municipalities – to formulate regional policy for social service provision.
3. What is “social assistance”?
Social assistance means providing social benefits and social services.
4. What is the legal contents of the “social service” concept according to Bulgarian legislation?
Social services can be defined as activities that support and expand the possibilities of persons to lead an independent life and are provided in specialized institutions or in the community. The legal definition of “social services” regards social services as activities directed at supporting the assisted persons to lead a full-value existence and be socially included in society. The social integration of persons is an important element of the concept of “social service” which should be designed and provided to ensure the person’s independent way of life rather than reliance on the service or institution, respectively.
5. What type of social services are there according to Bulgarian legislation?
According to Art. 36 of the IRSAA social services are bundled into two big groups of social services depending on the environment in which services are provided: community-based social services and social services provided in specialized institutions. It is important to keep in mind that social services in specialized institutions are provided after possibilities for community-based services have been exhausted.
6. What is meant by “community based social services”?
Community-based social services are services provided in the family environment or an environment close to it.
The community-based social services are: personal assistant, social assistant, home assistant, home social patronage, day center, center for social rehabilitation and integration, center for temporary shelter, foster care, crisis center, household-type shelter, secure housing, public canteens.
7. What are the specialized institutions for social service provision?
Specialized institutions for social service provision are: homes for children or young people with disabilities, homes for adults with disabilities, social educational and professional establishments, homes for the elderly, asylums, temporary shelters.
8. Is the listing of types of social services in Art. 36 of the IRSAA exhaustive?
The listing is not exhaustive. There is an opportunity to launch other types of social services when necessary in line with the population’s needs in each municipality. Therefore the needs of the local population are a key criterion for launching a new type of alternative social services.
9. What are the state bodies that have a mandate in the area of social services?
The Council of Ministers determines the state policy in the area of social assistance.
The Minister of Labor and Social Policy develops, coordinates and implements the state policy in the area of social assistance.
A Social Assistance Agency is set up under the Minister of Labor and Social Policy to implement the state policy in the area of social assistance. The SAA territorial units are Regional Social Assistance Directorates in all the regional administrative centers and Social Assistance Directorates on the territory of each municipality. An Inspectorate is set up subordinate to the SAA Executive Director.
The Inspectorate exercises specialized control on the lawful application of legislation in the area of social assistance in the SAA territorial units and the specialized institutions for social services and community-based social services, and monitors whether the criteria and standards for social service provision are met.
10. Who can be a social service provider?
According to the Social Assistance Act social services are provided by the state, municipalities, physical persons registered under the Trade Act and legal entities.
11. What are the specific requirements for social service providers?
Social service providers who are private law entities, viz.: physical persons registered under the Trade Act and legal persons, including not-for-profit legal entities (NPLE) can provide social services only after they have been entered into the SAA register. When they provide social services to children under 18 years of age, the same providers can deliver such services after receiving a license from the State Agency for Child Protection (SACP) pursuant to the Child Protection Act and after being listed in the SAA register.
12. Can not-for-profit legal entities provide social services?
NPLEs that have been set up pursuant to the Not-for-profit Legal Entities Act, irrespective of whether they are for public or private benefit, can provide social services just like any other legal entity, in conformity with the legal requirements.
13. Can foreign NPLEs provide social services on the territory of the Republic of Bulgaria?
Yes, they can, provided that the requirements of Bulgarian legislation are adhered to. Usually foreign NPLEs work in partnership with local organization – partners.
14. What are the advantages of NPLEs as social service providers?
The NPLEs have the following proven advantages compared to other social service providers: (1) higher efficiency, partly due to using voluntary labor and more flexible administrative structure compared to the public and municipal bodies, and partly due to the existing natural link between the activities in the social sphere and the non-profit goals of these organization resulting in higher-quality and lower-cost services, and (2) better awareness of local social needs.
15. Are there any benefits for NPLEs as social service providers?
No, there is not. As social service providers NPLEs are on an equal footing with the other legal entities and physical persons registered under the Trade Act, the state and the municipalities. The current legislation does not set forth reserving certain activities in the area of social services as a prerogative of specific providers, e.g. the state, municipalities or NPLEs. Each provider can deliver all types of social services.
16. Is there any place for partnership between the various social service providers?
The necessity of partnership between the various social service providers in delivering the services is a natural result of the decentralization of social services. According to the current legislation social services can be provided jointly on the basis of a contract between the state, municipalities, physical persons registered under the Trade Act, and legal persons. Joint participation can find expression both in terms of providing funding or facilities on the part of the state or municipality, respectively, while the activity itself can be implemented by the other social service provider, and duties can be allocated among the parties as partners in social service delivery.
17. Who are the potential partners of NPLEs providing social services in implementing their activity?
Representatives of the local authorities (municipalities) are the main potential partners of NPLEs providing social services as well as other legal and physical persons providing social services in the same area. It is possible, of course, to have a partnership between NPLEs providing social services and MLSP as a body with key functions in the area of social assistance. Such cooperation could be related to developing and implementing specific social programs but the potential link between NPLEs providing social services and a local municipality definitely has a bigger capacity for development.
18. What forms could the state/ municipality involvement take in a partnership in the social service area?
The involvement of the state/municipality can find expression in providing funding, property or infrastructure for implementing the activity.
19. What property can be subject of negotiation between the municipality and social service providers?
Only property that is “private” municipal property can be subject to negotiation between the municipality and other social service providers – physical persons registered under the Trade Act, and legal entities, including NPLEs.
The terms for using municipal real estate and movable property that is private municipal property are detailed in a special regulation passed by the relevant Municipal Council.
The municipality may rent a real estate (or part of it) that is private municipal property to a social service provider. The general process for renting real estate or parts of it which are private municipal property is through holding a tender or competition under terms and procedure determined in the special Municipal Council regulation. The Municipal Property Act gives the possibility to rent sites without a tender or competition when they are used for healthcare, education and other humanitarian activities intended to meet the social needs of the population. This is done through a Municipal Council decision wherein the rent is specified. The longest duration of the contract according to the law can be up to three years unless the Municipal Council decides otherwise. The sites cannot be sublet, ceded, used jointly under a contract with third persons, or used for business and production activity unless this is their intended purpose. As it becomes clear, a relaxed regime for renting sites to NPLEs is not set forth in the Municipal Property Act or its Implementing Regulation. The rationale of the legal possibility to rent a property without a tender or competition stems from the nature of the activity to be performed and its social purpose. In practice every social service provider (trader, trade association or NPLE) which performs a philanthropic activity to meet citizens’ needs and is able to convince the Municipal Council of the worthiness of this activity can become a leaseholder of real estate which is private municipal property and which has not been rented through tender or competition by a Municipal Council decision.
The municipality may sell a real estate that is private municipal property.The sale is made by a Municipal Council decision or a Mayor’s order after running a tender or competition under terms and procedure specified with a Municipal Council regulation. In the hypothesis for sale of a real estate that is private municipal property the potential social service provider can act as a buyer and participate in the tender or competition on an equal footing with the other candidates. No preferences or relaxation are set forth for physical persons or legal entities performing activities in the social sphere, nor for NPLEs in general.
The right of ownership upon real estate that is private municipal property can be transferred gratuitously with a decision of the Municipal Council only to legal persons supported by the national budget. The social service providers who are physical persons registered under the Trade Act and legal persons in the sense of Art. 18 of the Social Assistance Act are not included in the range of these legal persons.
The municipality may institute the right of using a real estate which is private municipal property. According to the Municipal Property Act the right of using a real estate which is private municipal property is instituted with a decision of the Municipal Council after conducting a tender or competition under terms and procedure specified through a Municipal Council regulation. The estate can be used for up to 10 years through an order of the Mayor. The Regulation of the Municipal Council specifies the cases in which the right to use the property is instituted through a Mayor’s order without a decision of the Municipal Council. The decision of the Municipal Council, or the Mayor’s order, respectively, specifies how the right of use is instituted – with or without compensation. When the right of use is instituted with compensation, the decision or Mayor’s order specifies the price, too.
As can be seen in the Regulation passed by the Municipal Council, it is possible to have cases when, with a view to supporting an activity with a social purpose and effect, the right of use can be instituted, including without compensation, to social service providers. This, however, is only a legal possibility which depends on the goodwill of the Municipal Council.
To implement this legal possibility, there has to be long-standing cooperation between social service providers and local authorities, and as a result these issues have to be settled in the regulation for acquiring, running and managing municipal property. There is no obstacle to allow for some relaxation for NPLEs providing social services in the regulation passed by the Municipal Council.
20. Is it possible for NPLEs providing social services to use property owned by the state when providing social services?
Real estate which is private state property can be rented by the relevant regional governor or head of institution through a tender or competition under terms and procedure specified by the Council of Ministers. On the basis of the tender or competition results a leasing contract is signed. The State Property Act allows for estate that is private state property to be rented without a tender or competition when it is used for healthcare, educational and other humanitarian activities for meeting the relevant needs of the population. This is done by the regional governor or head of the institution under a procedure and prices specified by the Council of Ministers. The sites cannot be sublet or used in conjunction with third persons.
The term of leasing the facilities cannot be longer than three years unless otherwise agreed with the Minister of Regional Development and Public Works.
Similarly to the above-mentioned possibility of renting real estate that is private municipal property, when renting facilities that are private state property no relaxed regime for signing leasing contracts with NPLEs is envisaged. The rationale of the legal possibility to rent a private state property with no tender or competition stems from the nature of the activity to be performed and its social purpose. In practice every social service provider (trader, trade association or NPLE) which performs a philanthropic activity for meeting citizens’ social needs can be a potential leaseholder.
21. What are the sources of funding that social service providers can use?
1. Social service providers listed in the SAA register can apply for funding from the republican and municipal budgets in order to deliver social services. In practice applying for funding from the republican and municipal budgets takes place through a procedure specified for conducting competitions.
2. Social service providers can finance their activities through revenue from social service fees.
3. Every provider who is listed in the SAA register can apply for funding from the Social Assistance Fund after defending a project.
22. What are the possibilities for municipalities to provide funding for social services?
On the basis of the municipal strategy for developing social services, municipalities can earmark certain amounts in their budgets for the provision of these social services. There is no obstacle to provide this funding to other social service providers through competition for financing the specific social services.
Apart from funding which is earmarked in its budget, the municipality is able to provide funding through the so-called budget credits for certain activities and goals, viz. healthcare, social and other activities. The ‘budget credit’ in the sense of the Municipal Budget Act means funds voted in the municipal budget which specify the amounts for certain items.
Therefore, for such credit to be provided, the Municipal Council needs to make an explicit decision to allocate it and to specify the amount. This credit is to be used for implementing certain health and social activities in line with the relevant municipal policy and strategy. The process of applying for such credits and the criteria for allocating them has not been specified in the Municipal Budget Act. As stipulated in Art. 18, item 8 of the Social Assistance Act all activities in the area of social services are provided through competition. It can be concluded that the funds from budget credits of the municipality should be allocated among social service providers through a competition. In order to achieve the most effective results for the specific municipality the Municipal Council can specify in a decision the criteria for selection of persons who would be given credit funds.
23. How are the fees paid by social service users specified?
The fees for social services funded by the republican budget are paid according to a tariff endorsed by the Council of Ministers, and the fees for social services funded by the municipal council are determined by the Local Taxes and Fees Act. The payment of social services provided by physical persons registered under the Trade Act or legal persons, including NPLEs is negotiated.
24. What are the adopted criteria and standards for quality of social services?
For the first time Bulgarian legislation has introduced criteria and standards that social services should meet. Standards and criteria for location and facilities in providing social services in specialized institutions are regulated in the IRSAA, and there are also standards and criteria for healthcare, educational services, information, and customer service staff. The specified standards and criteria are minimum ones and aim to ensure the quality of the delivered social services irrespective of who the service provider is and where the service is provided. The criteria and standards which social services to children should meet are specified in a separate regulation.
25. Who controls adherence to the criteria and standards in social service provision?
The control on adherence to criteria and standards for social service provision is exercised by the SAA Inspectorate. The control on adherence to criteria and standards for providing social services to children is exercised by the SACP.
26. What does the mandate of inspectors include?
Inspectors have the right to visit without any limitation the bodies for social assistance and places where social assistance activities are performed, to demand explanations and documents, records and data; to receive information directly from the assisted persons. When implementing their control functions, inspectors are obliged to adhere to legal requirements for protection of classified information gathered during or in relation to inspections, as well as to respect the honor and dignity of the assisted persons.
27. What administrative measures of compulsion can be imposed by inspectors?
In order to prevent or stop violations of social assistance legislation inspectors can impose the following administrative measures of compulsion: they can issue obligatory instructions for rectifying the violations and levy fines if they are not implemented; they can stop the implementation of unlawful decisions; enter data on violations committed by social service providers in the SAA register and propose deletion of the registration entry.
28. What are the consequences of non-compliance with criteria and standards for social service provision?
When infringements to the set criteria and standards have been ascertained, SAA inspectors can impose the administrative measures of compulsion mentioned in the reply to Question 27 upon the social service provider. Entering the infringements in the SAA register and proposing to delete the registration entry would incur grave consequences for social service providers. Entering the infringement in the register has implications for the reputation of the social service provider and when the provider participates in competitions for funding from the republican or municipal budget the assessment committees, which would receive information on the applicants from the register, would be informed that the applicant has committed infringements, and this would have implications when assessing the applicant’s proposal.
Deleting the entry in the register would make it impossible for the provider to deliver the relevant social services.
29. How are social services provided?
Social services are based on social work and aim to support the assisted persons to perform daily tasks and be socially included. Social services are provided according to the wish and personal choice of persons.
30. How should persons willing to use social services proceed?
Persons willing to use social services submit a written application to the Director of Social Assistance Directorate in their place of residence for social services which are within the state remit, and to the mayor of the municipality for services which are within the municipal remit, or to the management body when the social service provider is a physical person registered under the Trade Act or a legal entity, including NPLEs. The application should contain attached copies of: an ID, personal medical card, if available, and a decision of a doctors’ committee (territorial, regional, national or central one), if applicable. The body to which the application is addressed, after reviewing the attached documents, makes an assessment of the person’s social needs of services, and the assessment is entered as an appendix to a report.
31. What are the service providers’ duties in the process of negotiation with social service users?
The social service provider is obliged to present to potential users a draft contract for delivery of the relevant social service and written information on the essence of the social service itself; the experience of the provider in social service delivery and staff qualification, the terms and rules for using the service; the process for submitting complaints.
32. When is the individual plan for service delivery developed?
Social service providers in specialized institutions and providers of long-term community based social services develop an individual plan for providing the relevant social services after assessing the needs of each user and formulating the goals to be achieved. In specialized institutions measures are included in the individual plan of the social service user for taking the persons out of the institutions and for social inclusion. Every six months social service providers assess the implementation of the individual plan and update it when necessary.
33. Is it possible to have public control with regard to social services?
Public control in implementing social assistance activities, including social service provision in the relevant municipality, is exercised by a Public Council set up by a Municipal Council decision. The Public Council consists of at least three and no more than nine people. Its members include representatives of institutions, physical persons registered under the Trade Act and legal entities, including NPLEs involved in social assistance activities.
In order to protect the interests of social service users and exercise public control, councils can be set up by social service users, their guardians or trustees.
34. What are the functions of the Public Council?
The Public Council assists in implementing the social assistance policy in the municipality, discusses regional strategies, programs and projects related to social assistance, assists in coordinating social service provision by physical persons registered under the Trade Act and by legal entities, exercises control on the quality of social services in line with the set criteria and standards, offers stands on opening and closing of specialized institutions for social services on the territory of the municipality. Public councils have the right to demand and receive information from the Social Assistance Directorates on social assistance. When finding gaps and when there are alerts for infringements in implementing social assistance activities, the Public Councils inform the Chairman of the Municipal Council and the SAA Inspectorate in writing.
35. What are the functions of the Councils of social service users, their guardians and trustees?
These councils have consultative functions when implementing the activities of social service provision and they monitor service quality. When infringements are ascertained they have the right to inform the SAA Inspectorate in writing.
PROCEDURES Registration in the SAA
36. Who is registered in the SAA?
Physical persons registered under the Trade Act (i.e. sole traders) and legal persons, including NPLEs wishing to provide social services are entered in the register maintained by the SAA. Those who want to provide social services for children under 18 are entered in the register after the SACP grants them a license.
Social service providers can deliver social services only after registering in the SAA, irrespective of the source of financing their activities (own funding, donor programs, republican and local budgets). The state and municipalities, which are also social service providers, are not registered in the SAA register.
37. Are there any time limits for registration in SAA?
There are no time limits but the registration is an absolute prerequisite for any provider – a physical person or a legal entity – to start delivering social services.
38. What are the goals of the register?
• to provide information about social service providers;
• to create conditions for implementing effective control on the part of the SAA with regards to the quality of the social services delivered and adherence to the set criteria and standards;
• with a view to conducting competitions for outsourcing social services by Mayors pursuant to the Social Assistance Act and the IRSAA, to ensure transparency for the participants in competitions.
39. What are the documents required for initial registration?
To be enlisted in the register, the persons should submit a standard application form to the SAA Executive Director with appended copies of the following documents:
1. decision for initial court registration;
2. statement of current state;
3. identification card for BULSTAT register;
4. statement for tax registration.
Persons who want to provide social services to children under 18 attach a copy of the license issued by the SACP.
During registration the types of social services that the provider will deliver have to be specified. If no activity on a specified social service is carried out within a year the registration may be deleted. That is why it is recommended that real or forthcoming services are specified. There is no obstacle in making an initial registration for certain services, and later, when necessary, adding new types of social services.
Currently no registration fees are set forth.
40. Can registration be denied and what are the consequences of that?
The SAA Executive Director or an official authorized by him/her should issue a registration certificate within 7 days of filing the application. When there are omissions in the presented documents and it is possible to rectify them, the person can be given a 7-day term to do so.
When it is concluded that there is no ground for registration, it is possible to have a motivated denial of registration. The registration applicant should be informed in writing about the denial.
The denial can be appealed through administrative channels by submitting a complaint to the superior body (the Minister of Labor and Social Policy) and/or through legal proceedings before the Sofia City Court.
41. What are the obligations of the registered organizations?
The registered persons are obliged to inform the SAA in writing about any change in the circumstances that have been entered in the register within 7 days of their occurrence.
Every year by March 31st the registered persons present a report to the SAA related to the activities of service provision.
42. What are the grounds for terminating the registration?
The registration of the registered persons can be deleted in the following cases:
1. upon demand by the registered person;
2. when the legal person has been dissolved and when physical persons registered under the Trade Act have been deleted from the Trade Register;
3. when the set criteria and standards for social service provision have not been met, on proposal of the Inspectorate after conducting an inspection;
4. when the registered person does not carry out any activity for providing social services within a year;
5. when the requirement for presenting an annual performance report by March 31st has not been met;
6. when the license for providing social services to children under 18 has been revoked or has expired.
43. How is the registration terminated and what are the consequences of that?
The deletion is made by an order of the SAA Executive Director. The order is subject to appeal through administrative channels and the appeal does not halt the enforcement.
Unlike the cases in items 1 and 2 (to question 42) where deletion is voluntary, the deletion from the register under items 3, 4 and 5 is a sanction for not meeting the obligatory requirements regarding social service provision. After deleting the registration in the SAA, the provider can practically no longer perform any social service activity lawfully and terminates it.
There is no obstacle to submit a second application for registration and in this case the SAA Executive Director or the relevant authorized official can make the decision.
44. Is the information in the register accessible to the public?
The information in the SAA register is publicly available and anyone can have access to information about whether the provider is listed, what is his domicile and address, as well as the type of services declared to be delivered. No fees are collected for access to records.
The listed organizations and the social services which they have declared to provide are available on the SAA website (www.mlsp.government.bg/nsspweb/).
45. What is the control on the registered organizations?
Specialized control on providers’ performance in relation to social service delivery is exercised by an Inspectorate subordinate to the SAA Executive Director (see answer 26) Licensing in the SACP
46. Who can receive a license?
Physical persons registered under the Trade Act and legal entities, including NPLEs that want to provide social services for children under the age of 18 can apply for receiving a license from the SACP Chairperson. To be able to effectively start providing services for children, the licensed social service providers should necessarily be listed in the SAA register, too.
47. What are the requirements for getting a license?
The social service provider should meet the following requirements:
1. not to be declared insolvent or undergoing insolvency proceedings;
2. not to be in settlement;
3. not to be convicted for a general crime, and for legal persons this requirement pertains to the members of their management bodies;
4. to provide social services which meet the standards set in the Regulation for criteria and standards for social services to children.
48. What are the documents needed to apply for a license?
To be granted a license, the persons file with the SACP Chairperson a standard application with the following documents attached to it:
1. a certified copy of the decision for initial court registration;
2. a statement of the current state issued by the competent court no earlier than 6 months before the date of submitting the application;
3. a statement issued by the competent court certifying that the person has not been declared insolvent nor undergoing insolvency proceedings. This is only required when the provider is registered under the Trade Act as a sole trader or trade company;
4. a certified copy of the identification card for BULSTAT register;
5. a certified copy of the tax registration certificate;
6. a certificate showing no previous conviction of the person, and in the case of legal entities – of the members of their management bodies;
7. description of the social service – target group, activities to be performed, human resources and facilities, financial plan.
A panel then reviews the proposals and informs the applicant within 7 days if inaccuracies or omissions are detected; it gives instructions and sets a deadline for their rectification.
The SACP Chairperson may issue a license or refuse one if the applicant does not meet the application requirements but no later than two months after filing the license application. The order for granting or refusing a license is communicated in writing to the applicant within seven days of issuing the order.
49. What are the obligations of the licensed providers?
When there is a change in any of the circumstances certified by the initially submitted documents, the provider of social services for children is obliged to inform the SACP Chairperson in writing and to present the respective document.
The license granted by the SACP is valid for 5 years and should be renewed after its expiry date. Besides, the license is personal and cannot be ceded to other persons.
50. Can the license be revoked and what are the consequences of that?
The SACP Chairperson can revoke a granted license when its holder:
1. does not start providing the services within 12 months of being granted the license;
2. does not meet the standards for providing social services to children;
3. performs activity in violation of the granted license.
Following a decision of the SACP Chairperson the provider of social services for children may be given a suitable period for solving the problem, yet no longer than six months. In case the violation is not rectified within the specified period, the license is revoked. A new license may be issued a year after it has been revoked.
51. What are the fees for granting a license?
When a license is issued or renewed a 50 BGN fee is charged which goes into the Social Assistance Fund.
52. What is the control on licensed service providers?
Apart from the specialized control exercised by the SAA Inspectorate, the SACP Chairperson also has monitoring functions over the persons providing social services for children. The control can be exercised through regular inspections following a plan approved by the SACP Chairperson and/or inspections initiated after receiving alerts for violation of children’s rights.
When performing an inspection, SACP officials are entitled to:
1. visit without limitation the specified establishments where social services for children are provided, as well as all providers of social services for children;
2. require explanations and access to documents, records and data;
3. receive necessary information directly from the child or his/her parents or the people taking care of him/her.
53. What sanctions can be imposed when violations are made?
If infringements are identified, the SACP Chairperson or an official authorized by him/her should prescribe obligatory measures for their rectification . Fines can be levied, too. In case the prescribed measures are not implemented, SACP officials immediately notify the superior body or the body that the inspected institution is reporting to.
54. Is the information submitted to SACP public?
The documents submitted by the persons applying for a license are stored in the SACP and are available to all interested individuals. The data that should be available is: name, address of the registered office of the license holder; type of licensed activity; number and date of the issued license; date of granting the license and signature of the addressee; date of the license’s renewal or revocation.
Running a competition
55. How is a competition organized by the municipality for outsourcing the management of a specialized institution and/or providing social service(s)?
The Mayors of municipalities can outsource through competition the delivery of social services within municipal or state remit. According to the Social Assistance Act all the activities – state or municipal – in the social service domain are outsourced through competition, or through negotiations when there is only one applicant. But in practice a competition will always need to be organized in order to find out if there is only one applicant. If the latter meets the requirements, it is possible to start direct negotiations.
The competition process follows a scheme which is regulated in detail in the IRSAA. It should be emphasized that this is not a procedure under the Public Procurement Act. Despite the similarity in some specific technical details in organizing the two types of competitions, the procedure under the Social Assistance Act is much more relaxed and less onerous.
56. Are competitions public?
Organizing and conducting the competitions in this process should be public. The IRSAA sets forth an obligatory announcement in the newspapers about the forthcoming competition, in a national and a local daily newspaper at least 45 days before the competition is held.
All applicants who meet the requirements announced in advance can take part in the competition.
57. What are the requirements for applicants and the terms for participation?
The process starts with launching the competition by an order of the Mayor of the municipality. The order outlines the main steps for the subsequent organization of the competition. It sets forth the terms for taking part and applying. It should be highlighted that the Social Assistance Act and its Implementing Regulation specify minimum requirements for the lawful organization and running of such competitions but each municipality can additionally detail its own requirements to applicants.
In any case only providers listed in the SAA register can take part in the competitions. With a view to the assessment criteria set in the IRSAA the minimum requirement to applicants will be: certain experience in the area of social services; certain human and financial capacity;
presenting a program for developing social services, etc.
58. What documents are necessary for taking part in the competition?
When preparing the competition, the documents to be required by the applicants should be specified in advance. They will include: evidence of court, tax and other registrations such as, for instance: copies of court decisions for registration and subsequent changes, statement of the current position; copy of the card for BULSTAT and tax registration; copy of the statement for entry in the SAA register (or SACP license, respectively), copies of the annual balance sheets and financial report for the applicant’s income and expenditure – with a view to the requirement for adequate financial resource and sustainability of the applicant;
recommendations related to the applicant’s experience in the area of social services and others.
59. What forms could the municipal contribution take?
The contribution of municipality will be fixed in advance in the competition announcement.
Usually the municipality will provide funding for the development of a specific social service(s) through a competition procedure. For that purpose the funding should be earmarked in the municipal budget. It should be taken into account that municipalities form their budgets on an annual basis and if it is a long-term social service program, the municipality should commit to the overall funding. The Municipal Council should include this item in its next budget.
The municipality’s involvement can be in terms of premises necessary for providing the relevant social services. Of course such a commitment on the part of the municipality should be in line with the terms of using municipal property, regulated by various laws and special regulations passed by each individual municipality.
60. What is the contents of the social service program?
As regards the program for social service development which each applicant should submit, there are no explicit requirements for it. In terms of contents, it will be similar to a miniproject.
The sample contents of such a program will include:
1. Tasks of the social service program;
2. Timeline for its implementation;
3. Program action plan;
4. Plan for spending the Program funds;
5. Benchmarking against social service criteria and standards;
6. Performance capacity of the applicant;
7. Staff qualification;
8. Current experience in the area of social services;
9. Financial stability;
10. Subcontractors’ involvement;
11. Rollout effect of the program.
61. What are the criteria for assessing the applicants?
The “method and methodology of assessing the applicants” should be specified in the announcement of the competition. The minimum criteria that the assessment should take into account are set out in the IRSAA and they are:
1. the applicants matching the requirements announced in advance;
2. applicants’ experience in social service provision and trade reputation;
3. performance capacity of the applicant and staff qualification (number of staff who would be able to work for social service delivery, their qualification);
4. financial stability of the applicant (the financial sustainability of the applicant is very important to ensure the implementation of the outsourcing contract);
5. the program presented by the applicant for developing the social service;
6. other requirements set in the specific competition which can include, for instance, technical capacity of the applicant (specified facilities, premises, etc.); this requirement is also important with a view to the extent to which the quality of the provided services would meet the respective criteria and standards.
62. What is the process of reviewing, assessing and ranking the proposals?
During the process of running the competition a panel is set up for evaluating the applicants.
The panel members are appointed by a Mayor’s order. It necessarily includes an SAA representative.
After the deadline for submitting applications expires, the panel starts evaluating the applicants within 14 days. The evaluation should be made in line with criteria announced at the launch of the competition. The panel draws out a written statement and ranks the participants in the competition.
63. When are the results announced and can they be put to the appeal?
Within 3 days after the statement with the ranked applicants has been prepared the Mayor issues an order declaring the winner. The competition results are announced to participants within 7 days after the order for selecting the winner has been issued.
The Mayor’s order declaring the winner can be appealed through administrative channels before the regional governor but the appeal against the order does not stop its enforcement.
64. When is the process suspended?
It is possible to suspend the process during the competition. This would happen in cases when none of the proposals meets the requirements announced in advance, all the graded applicants consecutively refuse to sign the contract, the grounds for running the competition become invalid as a result of a significant change of circumstances, including impossibility to ensure funding for implementing the order due to reasons which the municipality could not foresee or effect.
65. When is the contract with the winner signed?
No term for signing the contract has been fixed. It will be appropriate if the Mayor’s order sets a deadline for signing the contract with a view to avoiding needless bureaucratic delay.
The contract that will be signed between the Mayor and the winner of the competition is essential with regard to the further implementation of the social service program. It has to be taken into account that the municipality will be a contracting party as a private law entity, and not as a public authority body. The two parties – the municipality and the winner of the competition – are equal and they should both have rights and obligations.
66. What is the contents of the contract?
The IRSAA has set the minimum contents of the contract. First of all, it has to specify the subject/type and scope of the offered social service – these will be in line with the announcement of the competition and in implementation of the program for developing social services presented by the winner. In fact, this program will be part and parcel of the contract. Secondly, the contract should specify a contract price, i.e. funding. If the municipality does not provide funding but, for instance, premises or movable property, this is indicated and described in detail and the total value of assets is specified in relation to the amount for implementing the services.
It is important that the contract solves the issue of fee payment for the social services offered and submitting applications for using them. It should be specified where the applications will be submitted, what will be the placement process and above all how the information on the persons using the social services will be shared between the municipality and the Social Assistance Directorates, on the one hand, and the provider, on the other.
67. What are the guarantees for implementing the contract?
The contract should indicate the guarantees for its implementation.
The municipality should be entitled to demand a report and should have the right to monitor how the funding is spent; to exercise control on the implementation of the social service program, etc. When the social service provider does not implement its obligations according to the contract, the municipality will have the right to stop the provision of funds; to demand funds reimbursement and to lay a claim against the applicant; to approach SAA when an infringement of the set standards and criteria, etc. has been identified.
The winner who implements the contract with the municipality should be obliged to provide the outsourced social services in accordance with the presented social service program, to deliver the social services in line with the criteria and quality standards set by the legislation;
to use the funds provided by the municipality solely for delivering social services that are subject of the contract in accordance with the budget specified in the social service development program, etc. An important element of the contract will be settling the issue for mutual forfeits which the two parties will owe each other in case of non-compliance. This is valid both for the social service provider and the municipality.
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