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Table 1. Variation Across Sites in TANF Administration, Contractor Type, <strong>and</strong><br />
Contract Type<br />
Site<br />
Entity Responsible for<br />
TANF Administration Type <strong>of</strong> Contractors Type <strong>of</strong> Contracts<br />
Delaware State For-pr<strong>of</strong>it (MAXIMUS)<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it (Salvation Army)<br />
Local nonpr<strong>of</strong>its<br />
Community colleges<br />
Hennepin<br />
County<br />
Lower Rio<br />
Gr<strong>and</strong>e<br />
Valley<br />
Palm Beach<br />
County<br />
San Diego<br />
County<br />
County <strong>and</strong> City <strong>of</strong><br />
Minneapolis<br />
State, Local Workforce<br />
Development Boards<br />
State, Local Workforce<br />
Development Boards<br />
County<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it (Lutheran Social<br />
<strong>Services</strong>)<br />
Local nonpr<strong>of</strong>its<br />
State agency<br />
Joint venture between a forpr<strong>of</strong>it<br />
(ACS) <strong>and</strong> a regional<br />
nonpr<strong>of</strong>it<br />
For-pr<strong>of</strong>it (ACS)<br />
For-pr<strong>of</strong>its (ACS, MAXIMUS)<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it (Catholic Charities)<br />
Wisconsin State For-pr<strong>of</strong>its (MAXIMUS, ACS)<br />
Local <strong>and</strong> regional nonpr<strong>of</strong>its<br />
County agencies<br />
Tribal agency<br />
ACS: Affiliated Computer <strong>Services</strong><br />
<br />
Pure pay-forperformance<br />
Cost-reimbursement<br />
Hybrid <strong>of</strong> costreimbursement<br />
<strong>and</strong><br />
pay-for-performance<br />
xv<br />
Two contracts, one<br />
pure pay-forperformance,<br />
the other<br />
fixed price<br />
Hybrid <strong>of</strong> fixed price<br />
<strong>and</strong> pay-forperformance<br />
Hybrid <strong>of</strong> costreimbursement<br />
<strong>and</strong><br />
pay-for-performance<br />
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Table I.2. Variation Across Sites in TANF Administration, Contractor Type, <strong>and</strong><br />
Contract Type a<br />
Site<br />
Entity Responsible for<br />
TANF Administration Type <strong>of</strong> Contractors Type <strong>of</strong> Contracts<br />
Delaware State For-pr<strong>of</strong>it (MAXIMUS)<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it (Salvation Army)<br />
Local nonpr<strong>of</strong>its<br />
Community colleges<br />
Hennepin<br />
County<br />
Lower Rio<br />
Gr<strong>and</strong>e<br />
Valley<br />
Palm Beach<br />
County<br />
San Diego<br />
County<br />
County <strong>and</strong> City <strong>of</strong><br />
Minneapolis<br />
State, Local Workforce<br />
Development Boards<br />
State, Local Workforce<br />
Development Boards<br />
County<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it (Lutheran Social<br />
<strong>Services</strong>)<br />
Local nonpr<strong>of</strong>its<br />
State agency<br />
Joint venture between a forpr<strong>of</strong>it<br />
(ACS) <strong>and</strong> a regional<br />
nonpr<strong>of</strong>it<br />
For-pr<strong>of</strong>it (ACS)<br />
For-pr<strong>of</strong>its (ACS, MAXIMUS)<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it (Catholic Charities)<br />
Wisconsin State For-pr<strong>of</strong>its (MAXIMUS, ACS)<br />
Local <strong>and</strong> regional nonpr<strong>of</strong>its<br />
County agencies<br />
Tribal agency<br />
Pure pay-forperformance<br />
Cost-reimbursement<br />
Hybrid <strong>of</strong> costreimbursement<br />
<strong>and</strong><br />
pay-for-performance<br />
Two contracts, one<br />
pure pay-forperformance,<br />
the other<br />
fixed price<br />
Hybrid <strong>of</strong> fixed price<br />
<strong>and</strong> pay-forperformance<br />
Hybrid <strong>of</strong> costreimbursement<br />
<strong>and</strong><br />
pay-for-performance<br />
ACS: Affiliated Computer <strong>Services</strong><br />
a More information on the contractor type by site is provided in Table II.4. More information on contract type by site is<br />
provided in Table IV.2.<br />
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Table I.3. Public Agencies Involved in the Administration <strong>of</strong> TANF, Food Stamps, <strong>and</strong><br />
Medicaid<br />
Site<br />
Public Agency Administering<br />
the Contract<br />
Other Public Agencies Involved in<br />
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or Medicaid<br />
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Valley<br />
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San Diego County<br />
Wisconsin<br />
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Palm Beach County Workforce<br />
Development Board<br />
San Diego County <strong>Health</strong> <strong>and</strong><br />
<strong>Human</strong> <strong>Services</strong> Agency<br />
Wisconsin <strong>Department</strong> <strong>of</strong><br />
Workforce Development<br />
Hennepin County Economic<br />
Assistance <strong>Department</strong><br />
Texas <strong>Department</strong> <strong>of</strong> <strong>Human</strong><br />
<strong>Services</strong><br />
Florida <strong>Department</strong> <strong>of</strong> Children <strong>and</strong><br />
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None<br />
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Table II.1 TANF Case Management <strong>and</strong> Processing Functions Performed by Contractors<br />
Function<br />
Case Management Functions<br />
Delaware<br />
Hennepin<br />
County<br />
Lower Rio<br />
Gr<strong>and</strong>e<br />
Valley<br />
Palm<br />
Beach<br />
County<br />
San Diego<br />
County a<br />
Wisconsin a<br />
Initial contact with client ' '<br />
Assessments ' b ' ' ' ' '<br />
'<br />
'<br />
Developing a personal<br />
responsibility plan<br />
Developing an employment<br />
plan<br />
Referrals for supportive<br />
services<br />
Job search, placement, <strong>and</strong><br />
retention support<br />
Monitoring compliance with<br />
the employment plan<br />
Recommendation for<br />
sanctions<br />
Case Processing Functions<br />
TANF eligibility<br />
determination<br />
' ' ' ' ' '<br />
' b ' ' ' ' '<br />
' ' ' ' ' '<br />
' b ' ' b ' ' b '<br />
' b ' ' ' ' '<br />
Monitoring ongoing eligibility ' '<br />
Monitoring compliance with<br />
nonemployment aspects <strong>of</strong><br />
the personal responsibility<br />
plan<br />
'<br />
'<br />
' ' b '<br />
Imposition <strong>of</strong> sanctions ' '<br />
a<br />
In some regions, a public agency performs all TANF case management functions<br />
b Public agency also performs some <strong>of</strong> this function<br />
<br />
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Table II.2 Typical Caseloads <strong>of</strong> TANF Case Workers at Public <strong>and</strong> Private Agencies a<br />
Site<br />
Caseloads for Case Workers<br />
at Public Agency<br />
Caseloads for Case Workers at<br />
Private Agencies<br />
Delaware 180-225 50-150<br />
Hennepin County 200-350 70-90 b /25 c<br />
Lower Rio Gr<strong>and</strong>e Valley 200-300 40-90<br />
San Diego County 140-160 80-125<br />
a TANF case management is not shared between the public <strong>and</strong> private agencies in Palm Beach County or in Wisconsin.<br />
b Tier I services for traditional TANF recipients<br />
c Tier II services for long-term TANF recipients<br />
<br />
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Table II.3. Number, Value, And Scope Of Contracts By Site<br />
Site<br />
Number <strong>of</strong><br />
Contracts<br />
Value <strong>of</strong> Individual<br />
Contracts<br />
Scope <strong>of</strong> Contracts Defined by:<br />
Delaware 8 $0.2m to $1.6m a Region <strong>and</strong> service (placement or<br />
retention support)<br />
Hennepin County 26 $0.2m to $1.9m a Number <strong>of</strong> client slots <strong>and</strong><br />
service (general or long-term<br />
recipients)<br />
Lower Rio Gr<strong>and</strong>e 1 $30.7m b Covers entire region<br />
Valley<br />
Palm Beach County 2 $0.7m to $6.4m c Service (one-stop operation or<br />
eligibility determination)<br />
San Diego County 3 $2.1m to $7.6m a Region<br />
Wisconsin 67 $0.25m to $61.5m d Region<br />
a Contracts cover only employment-related TANF case management<br />
b Contract covers the management <strong>and</strong> operation <strong>of</strong> one-stop centers, including TANF case management<br />
c One contract covers eligibility determination; the other covers the operation <strong>of</strong> one-stop centers, including TANF case<br />
management<br />
d Contracts cover all TANF services, administration, <strong>and</strong> benefits<br />
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Table II.4: Number <strong>and</strong> Characteristics <strong>of</strong> Contractors in the Study Sites<br />
Site Contractor Types a, b Contractors<br />
Number <strong>of</strong><br />
Delaware<br />
Hennepin<br />
County<br />
Lower Rio<br />
Gr<strong>and</strong>e Valley<br />
Palm Beach<br />
County<br />
San Diego<br />
County<br />
Wisconsin<br />
Local nonpr<strong>of</strong>it<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it<br />
For-pr<strong>of</strong>it<br />
Community college<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it<br />
Local nonpr<strong>of</strong>its<br />
State agency<br />
For-pr<strong>of</strong>it/nonpr<strong>of</strong>it<br />
partnership<br />
Examples<br />
5 Children <strong>and</strong> Families First<br />
Salvation Army<br />
MAXIMUS<br />
Delaware Technical <strong>and</strong><br />
Community College<br />
20 Lutheran Social <strong>Services</strong><br />
RISE, Inc.<br />
Minnesota <strong>Department</strong> <strong>of</strong><br />
Economic Security<br />
1 The Valley Partnership:<br />
ACS <strong>and</strong> Texas Migrant<br />
Council<br />
Faith-Based<br />
Contractors<br />
Yes<br />
Yes<br />
No<br />
Sub-<br />
Contractors<br />
For-pr<strong>of</strong>it 1 ACS No Yes<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it<br />
For-pr<strong>of</strong>its<br />
Local affiliate <strong>of</strong> national<br />
nonpr<strong>of</strong>it<br />
For-pr<strong>of</strong>it<br />
Counties<br />
ACS: Affiliated Computer <strong>Services</strong><br />
3 Catholic Charities<br />
ACS, MAXIMUS<br />
64 YW Works<br />
MAXIMUS<br />
Grant County<br />
Yes<br />
No<br />
Some subcontractors<br />
are<br />
faith-based<br />
Yes c<br />
No<br />
No<br />
Yes<br />
Yes<br />
a<br />
Public agencies also provide some TANF employment case management services in Hennepin County <strong>and</strong> San Diego<br />
County but are not contractors.<br />
b<br />
Some organizations partner with others. For example, RISE Inc. partners with the Opportunity Partners, Accessibility,<br />
Inc., <strong>and</strong> Tasks Unlimited.<br />
c<br />
Although subcontractors do not provide case management.<br />
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Table III.1. Number <strong>of</strong> Bids Per Contract<br />
Site<br />
Delaware<br />
Hennepin County<br />
Lower Rio Gr<strong>and</strong>e Valley<br />
Palm Beach County<br />
San Diego County<br />
Wisconsin<br />
Number <strong>of</strong> Bids Per Contract a<br />
8 to 10 bids per 3 or 4 contracts<br />
23 bids for 20 Tier I contracts b<br />
18 bids for 6 Tier II contracts b<br />
5 bids for 1 contract<br />
1 bid for 1 contract<br />
2 to 5 bids per contract<br />
12 bids for 5 contracts c<br />
a<br />
Refers to the most recent procurement<br />
b Contractors also compete for the number <strong>of</strong> slots<br />
c This is for contracts that are competitively bid. In Wisconsin, contractors who meet certain performance st<strong>and</strong>ards win<br />
the right <strong>of</strong> first selection <strong>and</strong> do not compete against other contractors.<br />
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Table III.2. Composition <strong>of</strong> Selection Committees<br />
Site<br />
Delaware<br />
Hennepin County<br />
Lower Rio Gr<strong>and</strong>e Valley<br />
Palm Beach County<br />
San Diego County<br />
Wisconsin<br />
Evaluation/Selection Committee Membership<br />
Five representatives <strong>of</strong> private sector organizations <strong>and</strong><br />
employees <strong>of</strong> four state agencies<br />
Employees <strong>of</strong> county agencies <strong>and</strong> a representative <strong>of</strong><br />
the local workforce board<br />
Independent consultants evaluate proposals <strong>and</strong> make<br />
recommendations. Entire workforce board votes on<br />
final award.<br />
Subcommittee <strong>of</strong> the workforce development board<br />
County employees <strong>and</strong> citizens, employees <strong>of</strong> state<br />
<strong>and</strong> outside local agencies, <strong>and</strong> representatives <strong>of</strong><br />
nonpr<strong>of</strong>it research/advocacy organizations<br />
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Table IV.1. Performance Measures in Contracts in Study Sites<br />
Number <strong>of</strong><br />
Measures Outcome Measures Process Measures<br />
DELAWARE<br />
Placement Contract<br />
5 Employment a<br />
90 days job retention a<br />
Full-time employment at 90 days<br />
Retention Contract<br />
7 30 days employment (after enrollment) a<br />
90 days job retention a<br />
180 days job retention a<br />
270 days job retention a<br />
360 days job retention a<br />
Full-time employment for second 180-day period<br />
HENNEPIN COUNTY<br />
7 Participation rate as defined by federal measure<br />
Employment<br />
Average wage<br />
Average wage in unsubsidized jobs<br />
90 days job retention<br />
180 days job retention<br />
LOWER RIO GRANDE VALLEY<br />
5 Employment a<br />
Participation rate for one-parent families a<br />
Participation rate for two-parent families a<br />
Number <strong>of</strong> cases in which the head <strong>of</strong> household<br />
meets work requirements<br />
Program enrollment a<br />
Referral to retention contractor<br />
Program enrollment<br />
Program enrollment or sanction referral<br />
Program enrollment a<br />
PALM BEACH COUNTY<br />
Employment <strong>Services</strong> Contract<br />
6 Employment a<br />
90 days job retention a<br />
180 days job retention a<br />
365 days job retention a<br />
Completion <strong>of</strong> vocational education<br />
or training a<br />
Completion <strong>of</strong> employment plan <strong>and</strong><br />
assessments a<br />
TANF Eligibility Determination Contract<br />
7 Client satisfaction<br />
Applications processed within 30 days<br />
Benefits determined accurately<br />
Accurate referral to employment program<br />
Sanctions executed within 10 days<br />
Clients complaints addressed within 30 days<br />
Information used to determine eligibility<br />
provided to public agency for checking<br />
within 3 days <strong>of</strong> receipt<br />
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Number <strong>of</strong><br />
Measures Outcome Measures Process Measures<br />
SAN DIEGO COUNTY<br />
12 Participation rate for one-parent families<br />
Participation rate for two-parent families<br />
Employment a<br />
30 days job retention<br />
90 days job retention<br />
180 days job retention a<br />
Increase in average hourly wage<br />
Exiting TANF due to employment a<br />
Completion <strong>of</strong> appraisals<br />
Completion <strong>of</strong> assessments<br />
Engagement in job search activities<br />
Signing a Welfare-to-Work plan<br />
WISCONSIN<br />
20 plus 3<br />
optional<br />
a<br />
Triggers payment<br />
Employment a<br />
Job retention (30 <strong>and</strong> 180 days) a<br />
Participation in appropriate activities a<br />
Participation in education a<br />
Completion <strong>of</strong> education activity a<br />
Earnings gain a<br />
Average wage at placement<br />
Earnings during <strong>and</strong> after program participation<br />
Rate <strong>of</strong> recidivism<br />
Number <strong>of</strong> 18 to 19 year olds in school<br />
Optional<br />
<strong>Health</strong> benefits are available a<br />
Caseload per case manager<br />
Staff training a<br />
Completion <strong>of</strong> assessments a<br />
Processing extension request a<br />
Timely submission <strong>of</strong> audits a<br />
Compliance with contract <strong>and</strong> no corrective<br />
action plans a<br />
Client satisfaction a<br />
Percentage <strong>of</strong> participants who receive<br />
services to address barriers<br />
Number <strong>of</strong> nonTANF clients served<br />
Level <strong>of</strong> in-work supports<br />
Optional<br />
Subcontract with faith-based organization a<br />
SSI advocate available a<br />
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Table IV.2. Payment Structure in Contracts in Study Sites<br />
Contract Type<br />
Payment Structure<br />
DELAWARE<br />
Placement Contract<br />
Pure pay-for-performance<br />
Per-client payments for:<br />
Enrollment<br />
30 <strong>and</strong> 90 days employment retention<br />
Bonuses for:<br />
Exceeding 90-day retention target<br />
Reducing part-time employment below target<br />
Retention Contract<br />
Pure pay-for-performance<br />
Per-client payments for:<br />
30, 90, 180, 270, <strong>and</strong> 360 days employment retention<br />
Bonuses for:<br />
Exceeding 180-day retention target<br />
Reducing part-time employment below target<br />
HENNEPIN COUNTY<br />
Cost-reimbursement<br />
Reimbursement <strong>of</strong> costs up to a cap<br />
LOWER RIO GRANDE VALLEY<br />
Hybrid <strong>of</strong> cost-reimbursement<br />
<strong>and</strong> pay for performance<br />
Reimbursement <strong>of</strong> costs up to a cap<br />
Fee paid for meeting performance targets<br />
Bonuses <strong>of</strong> 1 <strong>and</strong> 2 percent for exceeding performance targets<br />
PALM BEACH COUNTY<br />
Employment <strong>Services</strong> Contract<br />
Pure pay-for-performance Per-client payments for:<br />
Completion <strong>of</strong> employment plan <strong>and</strong> assessment<br />
Job placement<br />
90, 180, <strong>and</strong> 365 days employment retention<br />
Completion <strong>of</strong> vocational education or training<br />
Completion <strong>of</strong> job search curriculum<br />
Placement wage above $7.15 per hour<br />
Placements with earnings above 200 percent <strong>of</strong> poverty<br />
Fixed payments per quarter for:<br />
Exceeding employer <strong>and</strong> jobseeker satisfaction targets<br />
Performance on state measures<br />
TANF Eligibility Determination Contract<br />
Fixed price<br />
Fixed payment<br />
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Contract Type<br />
SAN DIEGO COUNTY<br />
Hybrid <strong>of</strong> fixed price <strong>and</strong> payfor-performance<br />
WISCONSIN<br />
Hybrid <strong>of</strong> cost-reimbursement<br />
<strong>and</strong> pay-for-performance<br />
Payment Structure<br />
Fixed payment <strong>of</strong> 15-25 percent <strong>of</strong> contractor’s budget<br />
Monthly payments based on percentage <strong>of</strong> target achieved on three<br />
performance measures:<br />
Employed clients<br />
180 days employment retention<br />
Exits from assistance due to employment<br />
Bonuses based on percentage that actual performance exceeds<br />
performance targets<br />
Reimbursement <strong>of</strong> costs up to a cap<br />
Restricted bonus (must be used for community reinvestment) for meeting<br />
second-level performance targets<br />
Unrestricted bonus for meeting third-level performance targets<br />
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Table IV.3. Implications <strong>of</strong> Different Payment Structures<br />
Contract Type<br />
Strength <strong>of</strong><br />
Incentives Risk Cash Flow Problems<br />
Operational<br />
Challenges<br />
Pure pay-forperformance<br />
High<br />
Contractor bears<br />
most<br />
Can be significant<br />
Requires performance<br />
data<br />
Setting targets <strong>and</strong><br />
payment amounts<br />
Cost<br />
reimbursement<br />
Low<br />
Welfare agency<br />
bears most<br />
Less significant<br />
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contractor<br />
Less significant<br />
Less significant<br />
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data<br />
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Table IV.4. Contract Duration in Study Sites<br />
Site<br />
Basic Contract<br />
Length<br />
Options for Renewal<br />
Delaware 1 year 1 one-year renewal (both contracts)<br />
Hennepin County 1 year 2 one-year renewals<br />
Lower Rio Gr<strong>and</strong>e Valley 8 months 3 one-year renewals<br />
Palm Beach County 1 year 2 one-year renewals (employment<br />
services contract)<br />
None for eligibility determination contract<br />
San Diego County 1 year 3 one-year renewals a<br />
Wisconsin 2 years None<br />
a San Diego’s contracts have been extended for an additional year with a renewal option for up to 18 months.<br />
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Table V.1. Monitoring Types, Purposes, And Methods<br />
Type Purpose Methods<br />
Service quality <strong>and</strong><br />
effectiveness<br />
Compliance with program<br />
policies<br />
Financial integrity<br />
<br />
To determine whether<br />
contractors fulfill program<br />
goals<br />
To determine whether<br />
contractors deliver services in<br />
accordance with policy<br />
To determine whether<br />
contractors bill for services<br />
accurately <strong>and</strong> manage funds<br />
adequately<br />
Automatic <strong>and</strong> manual collection<br />
<strong>of</strong> performance data<br />
Review <strong>of</strong> case documents<br />
Customer satisfaction surveys<br />
Visits to contractor sites<br />
Automatic collection <strong>of</strong> case<br />
processing data<br />
Review <strong>of</strong> case documents<br />
Review <strong>of</strong> sanctions<br />
Visits to contractor sites<br />
Review <strong>of</strong> supporting<br />
documentation for invoices<br />
Financial audits<br />
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Table B.1. Service Providers Visited for Case Studies<br />
Site<br />
Delaware<br />
Hennepin County<br />
Lower Rio Gr<strong>and</strong>e Valley<br />
Palm Beach County<br />
San Diego County<br />
Wisconsin<br />
TANF Case Management Provider Visited<br />
Children <strong>and</strong> Families First<br />
Salvation Army<br />
MAXIMUS<br />
Delaware Technical <strong>and</strong> Community College<br />
a Organization provides TANF case management but is not a contractor.<br />
<br />
Lutheran Social <strong>Services</strong><br />
Catholic Charities<br />
Resource, Inc.<br />
RISE, Inc.<br />
American Indian Opportunities Industrialization Center<br />
Work Employment Resource Center a<br />
Affiliated Computer <strong>Services</strong> (ACS)<br />
Texas Migrant Council<br />
ACS<br />
Catholic Charities<br />
ACS<br />
MAXIMUS<br />
<strong>Health</strong> <strong>and</strong> <strong>Human</strong> <strong>Services</strong> Agency a<br />
YW Works<br />
United Migrant Opportunity Service (UMOS)<br />
MAXIMUS<br />
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