(a) To enter into a contract with the commission or department to serve as a single source continuum contractor to provide services under this subchapter, an entity must be:
(1) a nonprofit entity that has:
(A) an organizational mission focused on child welfare; and
(B) a majority of the entity’s board members residing in this state; or
(2) a governmental entity.
(b) In selecting a single source continuum contractor, the department shall consider whether a prospective contractor for a catchment area has demonstrated experience in providing services to children and families in the catchment area.

(c) The department shall request local stakeholders in a catchment area, including those listed in § 264.155(a)(8), to provide any necessary information about the catchment area that will assist the department in:
(1) preparing the department’s request for bids, proposals, or other applicable expressions of interest to provide community-based care in the catchment area; and
(2) selecting a single source continuum contractor to provide community-based care in the catchment area.