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HomeMy WebLinkAboutMINUTES - 02272007 - D.1 i FHS #70 Z TO: BOARD OF SUPERVISORS Contra Costa FROM: Family and Human Services Committee Federal Glover, Supervisor, District V '' - County ST'4 C011K�J Susan Bonilla, Supervisor, District IV DATE: February 23, 2007 l SUBJECT: County Policy on Contracting with Community Based Organizations / SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS APPROVE the attached draft policy on contracting practices with community based organizations, and DIRECT staff to implement the new policy. FISCAL IMPACT: Minimal fiscal impact. Departmental contract staff will have an unknown amount of increased workload for processing the required Requests for Interest or Requests for Proposal under the new policy. BACKGROUND: On March 1, 2005, the Board of Supervisors considered approving a recommended policy requiring the periodic competitive recruitment for County services contracts. The Board took two actions on this issue. First it amended page three of the draft Administrative Bulletin to include notification of the Board when a waiver of the policy is approved. Second, at the request of the Contractors' Alliance and to provide time for more public input on the recommended policy, it referred the issue to the Family and Human Services Committee. On October 17, 2005, the Family and Human Services Committee considered a recommended policy on County contracts for services provided by community based organizations (CBOs). At the meeting discussion CONTINUED ON ATTACHMENT: YES XX NO SI ATURE ij 'fir RECOMMENDATION OF OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE 0TH SIGNATURE(S) Fed ral Glover,Chair Susan Bonilla,Member ACTION OF BOARD O 0 APPROVED AS RECOMMENDED OTHER a VOTE OF SUPERVISORS: 4 UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND AYES:. NOES: ENTERED ON THE MINUTES OF THE BOARD OF ABSENT: ABSTAIN: SUPERVISORS O 1 THE DD�AT,Et)SHOWN. Contact: Dorothy Sansoe,5-1009 ATTESTED " (`�v JOHN CU EN,CLERK OF THE BOA OF cc: County Administrator SUP ERV RS AND COUNTY ADMINISTRATOR Health Services Department Employment and Human Services Department 0 BY: DEPUTY Page 2 of 2 took place regarding several aspects of the County's contracting relationship with community-based organizations. The Committee requested that staff return with a plan for a workshop to discuss the proposed policy and other contracting concerns. On March 13, 2006, the Family and Human Services Committee conducted, with the assistance of Grace Boda; a consultant specializing in meeting facilitation, a discussion between County department staff and CBO staff. This discussion focused on principles surrounding contracting issues between the parties. The discussion was not meant to reach agreement on specific issues, but rather to provide an opportunity for give and take on both sides and for thoughtful expression of ideas to improve the process and procedures involved. On April 3, 2006, the Family and Human Services Committee again met to discuss the draft of the proposed policy. The Committee provided direction to staff to work with the Executive Director of the Contractors' Alliance to prepare a final version of the draft. In January 2007, staff met with representatives from Local One and SEIU Local 535 to discuss their concerns with the policy. Also, County Council reviewed the legal aspects of the policy. On February 12, 2007, the Family and Human Services Committee reviewed and discussed the final version of the policy and approved forwarding it to the Board of Supervisor for final adoption. Attached to this Board Order is a draft of the Administrative Bulletin. ADDENDUM TO D.l FEBRUARY 27, 2007 On this day, the Board of Supervisors considered approving contracting policy for new health and human services funding as recommended by the Family and Human Services Committee. Supervisor Glover introduced this item, noting there have been several meetings with the Community Based Organizations as well as the representatives from Local 1, Contractors Alliance and S.E.I.U. (Service Employees International Union). He said in trying to create this policy a workshop was held with a consultant to try to work through various issues to bring back a fair policy that would be agreed upon by all the stakeholders. Dorothy Sansoe, Deputy County Administrator corrected a typographical error on page 2 paragraph 1 —Unless a waiver is granted under Section 1 of this policy, should read Unless a waiver is granted under Section 7 of this policy. Referring to item No. 2, page 2—Draft Policy for Contracting with Community-Based Organizations under Request for Interest, Supervisor Uilkema suggested language clarifying -if there are two contractors currently providing service, there should be a competitive process between the existing contractors.. Supervisor Uilkema noted the same issue referred to item No. 1,page 4 of the policy—under Guidelines for Competitive Bidding—item Number I —Request for Interest. Ms. Sansoe concurred this was somewhat confusing and would provide language to clarify this sentence. Referring to page 2 -Request for Interest Supervisor Gioia proposed language that would be broad enough to encompass potential providers that would be clear about what the process is. Referring to page 2— Competitive Bidding-He suggested language here that defines the service based on the professional qualifications and not always the low bid. Supervisor Gioia asked for clearer language in defining the language on 3 c. He said the Board should have the option to say they want two-year funding cycle and do a competitive process every two years. Supervisor Gioia referred to No.7,Policy Waiver— and said the waiver should go through the Board and not the County Administrator. He said the language should state "a recommendation from the CAO's office to waive the policy for approval on the Board of Supervisors Consent calendar." He went on to mention to allow more flexibility in the policy a waiver should be included using as an example the provision in the Welfare and Institutions Code Section 19404. The Chair asked for public opinion and the following people spoke: • Marianna Moore, Director, Contractors Alliance, said she acknowledges the Committee and staff for stepping forward to hear their concerns; • Barbara Visik, Director of Family Stress Center, thanked Supervisors Glover, Bonilla and Ms. Sansoe for working with them. She said she is happy to know that they will be allowed to compete for new money which has not been in the case in the past; • Roland Katz, Public Employees Union, Local 1, informed the Board the County does not exist to employ people or give CBO's contracts. He said he could not understand why all new monies go out to CBO's. He said the waiver provision in the policy possibly could swallow the rule, and asked the Board not to adopt the policy. By a unanimous vote with all Board members present the following action was taken: AMENDED the draft policy on contracting practices with CBOS as follows: Under POLICY-New Funding and Open Bidding, to read"Unless a waiver is granted under section 7 (not 1 of the policy); Under Section 2 Request for Interest—Language to be clarified; Under— Competitive Bidding-language to be clarified; Under 4 a—include"Professional consideration...in addition to fiscal and managerial capability".. No.7,Policy Waiver—the last sentence should state a recommendation from the CAO's office to waive the policy for approval on the Board of Supervisors Consent calendar and INCLUDE a Waiver using as an example the provision in the SEC. 27. Section 19404 of the Welfare and Institutions Code .. "Any state agency, city or county,political subdivision, or district of this state may, without advertising or calling for bids,purchase materials and supplies manufactured and services provided by public or private nonprofit California corporations operating community rehabilitation programs serving persons with disabilities who have indicated an interest in supplying those goods and services and may, on an equitable basis apportion the business among the interested community rehabilitation programs,provided the goods or services meet the specifications and needs of the purchasing agency and are purchased at a fair market price, as determined by the appropriate state or local agency and provided that the public or private nonprofit California corporations comply with all of the following requirements: (a) (1) Contract work obtained under this section shall be performed by a labor force which is comprised primarily of persons with disabilities, as measured by the percentage of person-hours of direct labor devoted to the contract work. " DRAFT CONTRA COSTA COUNTY Office of the County Administrator ADMINISTRATIVE BULLETIN Number: 611 Effective Date: to be determined Section: Purchasing SUBJECT: Contracting with Community-Based Organizations Authority for this Policy.- State law provides that the Board of Supervisors may appropriate and expend money from the general fund of the county to establish county programs or to fund other programs deemed by the Board to be necessary to meet the social needs of the population of the county, including, but not limited to, the areas of health, law enforcement, public safety, rehabilitation, welfare, education, legal services, and the needs of physically, mentally, and financially handicapped persons and aged persons. The Board may contract with other public agencies or private agencies or individuals to operate those programs which the Board determines will serve public purposes. The Board frequently contracts with nonprofit community-based organizations to operate and provide such programs and services. Purpose of this Policy. The County and the organizations with which they contract share a common goal of wanting to ensure that the people who need the services provided receive those services. Further, the County and its contractors are committed to providing the highest quality services and to reaching the greatest number of people in need. Services contracted with CBOs are generally of very good quality. However, as with any service sector, business practices and model approaches are continually being developed and/or refined. The County wishes to ensure that the people who need the services receive the best services available on the market. An RFP process helps ensure that this occurs. It is strongly recommended that departmental staff work with community-based organizations (CBO) during both the bidding process and contracting process and that regular, frequent communication take place between program staff and CBO staff. Notification should be provided to current providers early in the process to allow as much notice as possible. This policy pertains exclusively to contracts with community-based organizations for social and human services, and does not amend or replace Administrative Bulletins Nos. 605 and 608-610 pertaining to contracting for special services. Revised February 16, 2007 Administrative Bulletin No. 611 . Contracting with Community-Based Organizations Page 2 POLICY 1. New Funding and Open Bidding Unless a waiver is granted under Section 9 of this policy, the County will solicit services through an RFP process anytime a new dedicated funding stream designed for health or social services is available, eligible, and appropriate to be used for contracting. Where feasible, County departments may compete through the RFP process to provide the services. This section does not preclude the ability of a department to use new funding for case management or oversight and monitoring of contracted services. 2. Requests for Interest Prior to proceeding to a formal or informal competitive bid process, a Request for Interest will be issued to determine if there is interest on the part of contractors not currently providing services. If there is no new interest, the competitive bidding process may be waived as provided for in Section 7 of this policy. 3. Competitive Bidding For contracts with community-based organizations in excess of $50,000: a. The initial contract award will be based on a competitive bidding process. b. An annual contract may not be renewed more than two times without a Request for Interest process. c. Multi-year contracts may not exceed three years in length and may not be extended without a Request for Interest process. 4. Contract Award For contracts with community-based organizations in excess of$250,000: a. Consideration will be given to the fiscal and managerial capability of the agency before contracts are entered into with community-based organizations. b. Strong consideration will be given to contractors with an established and stable financial history. Revised February 16, 2007 Administrative Bulletin No. 611 Contracting with Community-Based Organizations Page 3 c. Follow-on or renewal contracts will not be approved unless and until any audit exceptions and deficiencies have been remedied. 5. Contract Requirements a. All contracts shall identify specific performance outputs and/or outcomes. Contracting departments shall review performance of contracts periodically to ensure compliance with output/outcome requirements. b. Failure to achieve contracted performance output or outcome requirements maybe grounds for contract termination. c. Contracts with contractors that fail to achieve performance outputs or outcome requirements may not be automatically renewed. Such contracts must be reviewed to ensure that the desired outputs or outcomes are achievable. A new contract may be established, if appropriate, following a competitive bid process. d. Contracts will contain a provision for termination at the convenience of the County upon thirty-day advance written notice, or immediate termination by written mutual consent. e. Once per contract period, contracts will be monitored by the County to ensure service quality and progress toward outputs and outcomes is being achieved. 6. Board of Supervisors Approval Requests to the Board of Supervisors to establish, renew, or continue a contract will be in the form of a Board Order that includes the following information: a. the name of the agency b. the term of new contract or contract amendment / renewal c. the new or increased payment limit d. the services to be provided in consideration for the payment e. a summary of the history of the contractual relationship for the services requested, to include the term of the original contract authority and the number and duration of any prior renewals f. a brief summary of the competitive recruitment process, if any, that led to the contractor's selection g. for contracts in excess of$250,000, a supportable statement that any problems or deficiencies identified in the selected agency's most recent audit have been remedied to the department's satisfaction Revised February 16, 2007 Administrative Bulletin No. 611 Contracting with Community-Based Organizations Page 4 h. if applicable, justification for waiver of all or any portion of this policy (see the following section) i. any and all other information routinely required on a Board Order (such as the Children's Impact Statement). 7. Policy Waiver Prior to entering into any contractual agreement under this policy, a department may apply to the County Administrator for waiver of all or any portion of this policy. Such application will demonstrate the extenuating circumstances that render the policy inapplicable. The County Administrator or authorized designee will evaluate and authorize such applications. The County Administrator will notice the Board of Supervisors via the agenda process whenever a waiver is approved. GUIDELINES FOR COMPETITIVE BIDDING The following are guidelines to assist department contract personnel in the development and solicitation of proposals. Departments may develop internal policy to strengthen these guidelines, if deemed desirable. 1. Request for Interest Conduct a Request for Information (RFI) and/or take necessary steps to identify potential contractors (reference County Outreach Program), including contacting other public agencies. If there are no parties interested in providing services other than those with whom the County is already contracting, the competitive bidding process may be waived as outlined in Section 7 above. 2. Suggested Formal Competitive Recruitment Process a. Develop a comprehensive description of the services being sought, the location of work to be performed, the timeframe, and any special licenses, qualifications, or other requirements. b. Advertise the services being sought and instruct vendors as to whom to notify if they can and are qualified to provide such services. This step may be skipped if a diverse list of qualified vendors is already available for the services being sought. C. Revise the services description, if needed, and develop a recruitment outline and schedule. Revised February 16, 2007 Administrative Bulletin No. 611 Contracting with Community-Based Organizations Page 5 d. Prepare a Request for Proposals (RFP) describing, as applicable, the: ♦ Services to be provided by the contractor, including specific tasks. ♦ Population to be served. ♦ Specific eligibility criteria for each category of service. ♦ Name and address of each facility at which service is to be provided. ♦ Time each service is to be provided at every service location, including hours of services, days of the week, and whether services will be provided on weekends and/or holidays. ♦ Goals and objectives of each category of service, including performance records and reports Contractor will be required to maintain and/or submit. ♦ Definition of service unit for each category of services and the number of service units Contractor will be required to deliver during the period, e.g., one unit of service = one 8-hour day. ♦ State and/or federal statutes and regulations with which the Contractor will be required to comply in performing each category of service. ♦ Criteria against which proposals will be evaluated. e. Issue a Request for Proposals (RFP) - Advertise the services being sought and request vendors to submit by a specified deadline (typically 3-6 weeks) a detailed proposal meeting all of the RFP requirements, including a copy of the service provider's most recent audit. Advertising may include newspaper, Internet, professional journals, and mailings to vendors on a distribution list. f. Mail a copy of the RFP to all vendors who request a mailed copy. g. Conduct a Bidders' Conference, if warranted, shortly after the RFP issuance to better describe the services required and to respond to questions of potential contractors. Send a summary of questions and answers emanating from the Bidders' Conference to all vendors who were sent a copy of the RFP. Revised February 16, 2007 Administrative Bulletin No. 611 Contracting with Community-Based Organizations Page 6 h. Evaluate the proposals in accordance with the predefined qualifications, eliminate proposers that are not qualified, and send notification letters. i. Determine selection method based upon number of qualified applicants. Selection method may be an in-depth screening and ranking of proposals, interview of proposers, or a combination of both. j. Convene an impartial selection panel including at least one representative from the CBO community, and, in one or more rounds, evaluate and rank proposals in accordance with predefined criteria. k. Conduct reference checks to verify past performance of finalists, I. Select the preferred service provider and, for contracts in excess of $250,000, request the County Auditor-Controller's office or another qualified official to review the most recent audit of the finalist and express an opinion as to the finalist's financial position / management controls. M. Finalize selection, send notification letters, and respond to appeals as necessary. 2. Suggested Informal Competitive Recruitment Process a. Take necessary steps to identify a diverse group of potential contractors, including contacting other public agencies. b. Conduct outreach to potential contractors by notifying those firms by facsimile, telephone, email, web advertisement, or any other practical and economically feasible method. C. Evaluate and rank proposals, check references, and select preferred vendor. d. For contracts in excess of$250,000, request the County Auditor- Controller's office or another qualified official to review the most recent audit of the finalist and express an opinion as to the finalist's financial position / management controls. e. Notify all proposers. Revised February 16, 2007 Administrative Bulletin No. 611 Contracting with Community-Based Organizations Page 7 Orig. Dept: County Administrator References: California Government Code section 26227 Board Order dated August 17, 1982 from the Internal Operations Committee /s/ JOHN CULLEN, County Administrator Revised February 16, 2007 � o . � o o o� � w 3 0 v Cis t cn DA Q p r-lo40 ap x o � o ^O O O � O 41 P� O V j W 1 c ° za Ln o ' o U Q Y ED $. C v p V U 'J A,•�" N w y� N cn N IEl- 518�