Title
Request for Increased Aggregate Contract Capacity for Nonpublic School/Agency (NPS/A) Master Contracts
Division of Special Education
Medical Services Division
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Brief Description:
description
(Request for Increased Aggregate Contract Capacity for Nonpublic School/Agency (NPS/A) Master Contracts) Recommends to approve a $34M increase in aggregate contract capacity for the Nonpublic School/Agency (NPS/A) Master Contracts for the 2025-2026 school year, with a revised aggregate authority of $290M for the 2025-2026 school year for the provision of Special Education Supports and Services, including Special Education Health and Nursing Services. Recommend ratification of the contract actions taken by the Division of Special Education and Medical Services Division within this increase in aggregate contract capacity for those contracts listed in Attachment “A”: Nonpublic School/Agency (“NPS/A”) Master Contracts (exceeding $250,000) for the 2025- 2026 school year.
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Recommendation
Action Proposed:
Recommends to approve an increase to the aggregate contract capacity for the 2025-2026 school year and request for increased approved aggregate contract capacity authorization to execute and reimburse contractors for the contract actions taken by the Division of Special Education and the Medical Services Division within delegated authority as listed in Attachment “A”: Nonpublic School/Agency (“NPS/A”) Master Contracts (exceeding $250,000) for the 2025-2026 school year. Recommends ratification of the contract actions taken by the Division of Special Education and Medical Services Division within this increase in aggregate contract capacity for those contracts listed in Attachment “A”: Nonpublic School/Agency (“NPS/A”) Master Contracts (exceeding $250,000) for the 2025- 2026 school year.
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Body
Background:
The Division of Special Education and the Medical Services Division negotiates its master contract with NPS/As on an annual basis and will prepare periodic reports for contract actions necessary for the provision of special education and related services in accordance with Board delegated authority to the Superintendent.
The Individuals with Disabilities Education Act (“IDEA”) requires that the District provide qualified students with disabilities with special education and related services. The District meets these obligations through its Special Education Local Plan Area (“SELPA”) Local Plan. The District is required to maintain a continuum of program options, including nonpublic, nonsectarian schools and nonpublic agencies, to meet the needs of its special education students. (Ed. Code, §§ 56360, 56361, 56365.)
The District is required to make available NPS and NPA services and must provide these services by entering into a master contract for nonpublic, nonsectarian school or agency services in a student’s individualized education program (“IEP”). The master contract must specify the financial agreement between the District and NPS/A for the services in a student’s IEP that the NPS/A will provide. (Ed. Code, § 56366(a).) The District negotiates its master contract with NPS/As on an annual basis. (Title 5 C.C.R., § 3062(a).) Due to a number of factors, expenditures for the 2025-2026 school year exceeded the previously approved aggregate contract capacity by $34M. The reasons for this include: reimbursements totaling $9M were issued in FY26 for expenditures in FY25, due to invoices received in the first quarter of FY26; contractors billed $2,808.189.61 for January 2025 fire closures in September & October 2025, resulting in FY25 costs impacting FY26 expenditures; the 2025-2026 NPS/NPA rate negotiations, as prescribed by statute, led to increased 2025-2026 contracted rates ranging from 2.43% (COLA) to 21.2% and, subsequently, increased costs; increase in services and costs to support the District’s inclusive programs; increased NPA Nursing usage and costs due to changes in regulations; and, three new nonpublic agency contracts were opened (one for NPA Nursing services and two for NPA behavioral support services) in FY26 to address identified needs.
The Division of Special Education and the Medical Services Division will return to the Board, if necessary, for approval of an increase to the aggregate contract capacity for the 2026-2027 school year upon conclusion of the remaining 2026-2027 NPS/NPA rate negotiations. At that time, there will be a clearer picture of the projected expenditures at the 2026-2027 rates and considering anticipated usage.
Expected Outcomes:
Approval of this item will allow the Division of Special Education to continue its legally required provision of special education supports and services provided by these contracts to the Los Angeles Unified School District to serve eligible students with disabilities and in support of Board policies and goals in accordance with applicable state and Federal special education laws. These services have been rendered and have been, or will be, paid. The District is legally required to provide these services, and timely payment is necessary, as required by statute and the master contract, and, in order to avoid legally mandated penalties for late payments and other potential costly litigation.
Board Options and Consequences:
A “YES” vote will authorize the Division of Special Education and the Medical Services Division to reimburse NPS/A contractors for services already rendered to qualified students with disabilities in accordance with their IEPs, statutory requirements, and contractual timelines.
A “NO” vote will result in the immediate unavailability of these services or discontinuance of services going forward, or both -- likely denying students with disabilities a free appropriate public education, in violation of both federal and California laws. The unavailability or discontinuance of these services would likely result in costly litigation and increased future costs in securing these services. The postponement of actions presented for approval in Attachment “A” will delay reimbursement for services rendered, resulting in legally mandated penalties for late payments and in costly litigation, including claims associated with these contracts.
Policy Implications:
This action does not change District policy and amends the aggregate contract capacity Board actions taken on May 13, 2025 (Board Report No. 331-24/25) and April 21, 2026 (Board Report No. 303-25/26) and May 12, 2026 (Board Report No. 410-25/26).
Budget Impact:
For the 2025-2026 school year, the Division of Special Education and the Medical Services Division exceeded the previously Board-approved delegated amount and are requesting an increase in the aggregate contract capacity authority to $290M. For the 2025-2026 school year, the $290M aggregate not-to-exceed annual budget will be funded by a combination of Special Education Funds and Federal Funds. The budgetary impact is reflected in the 2025-2026 Unaudited Actuals Financial Report.
Student Impact:
These contracts support the provision of special education and related services required by federal and state special education laws.
Equity Impact:
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Component |
Score |
Score Rationale |
|
Recognition |
3 |
The award of the nonpublic school and agency (NPS/A) master contracts supported the District’s efforts to provide mandated special education and related services and programs for students with disabilities pursuant to their Individualized Education Plan (IEP). The District is required to maintain a continuum of program options, to include nonpublic school and agency services, to meet the needs of individuals with exceptional needs for special education and related services as required by the federal IDEA and California law. |
|
Resource Prioritization |
2 |
The NPS/A contracts made services available to qualified students with disabilities, to be provided through master contracts with California Department of Education certified nonpublic schools and agencies. |
|
Results |
3 |
The 2025-2026 NPS/A contracts ensured that the Division of Special Education and the Medical Services Division had the required continuum of program options available to meet the needs of individuals with exceptional needs for special education and related services as required by the federal IDEA and California law. |
|
TOTAL |
8 |
|
Issues and Analysis:
There are no policy implications on these agreements. The Administrative and Education Legal Services Team, Office of the General Counsel, has reviewed and approved the master contract as to form.
Attachments:
Attachment A - Ratification of Nonpublic School/Agency Master Contracts
Link Material(s):
Previously adopted Board report referenced Policy Implication section:
• Adopted April 21, 2026, (Board Report No. 303-25/26) <https://drive.google.com/file/d/1uCjFCMVPp2H1fyXUYn7A9n401X8Zh7l7/view?usp=sharing>).
• Adopted May 13, 2025 (Board Report No. 331-24/25) <https://drive.google.com/file/d/1_5-32d6GKG2_OgjuAzaCvpVv4SDE9E00/view?usp=sharing>).
• Adopted May 12th, 2026, (Board Report No. 410-25/26) <https://drive.google.com/file/d/1IAHX12NhSZEoZyLVMmrIJtLdLr_2hUOp/view?usp=sharing>).
Submitted:
08/31/26