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HomeMy WebLinkAboutMINUTES - 03012005 - SD9 4 , 1 Contra TO: BOARD OF SUPERVISORS ''••.,. FROM: SUPERVISOR MARK DeSAULNIER Costa DATE: FEBRUARY 15, 2005 , _court ��:,, •' s County rA 's SUBJECT: POLICY OF PERIODIC COMPETITIVE RECRUITMENT FOR .- 9 COUNTY SERVICE CONTRACTS SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTION: 1. APPROVE policy requiring periodic competitive recruitment for County service contracts with non- profit community-based organizations. 2. DIRECT the County Administrator to issue an Administrative Bulletin and to take other necessary measures to effectively communicate the policy and objectives to operating departments. FISCAL IMPACT: Unknown. Additional administrative costs will be incurred to conduct formal and informal solicitations and competitions, and to track contract data. CONTINUED ON ATTACHMENT: ❑ YES SIGNATURE: ❑ RECOMMENDATION OF COUNTY ADMINISTRATOR ❑ RECOMMENDATION OF BOARD COMMITTEE nAPPROVE ❑ SIGNATURE(S): j)ebAULNIER ACTION OF BOARD ON P1 A R C u APPROVED AS RECOMMENDED [ OTHER �] PLEASE SEE ATTACHED ADDENDUM, VOTE OF SUPERVISORS: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND - -UNANIMOUS(ABSENT �T �) ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. AYES: NOES: ABSENT: ABSTAIN: ATTESTED: MARCH 1,2005 Contact: Julie Enea(925)335-1077 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR cc: Department Heads CAO Budget Division Staff Contractors'Alliance Q By: Deputy • , t ADDENDUM TO ITEM SD,.9 March 1, 2005 On this day,the Board of Supervisors CONSIDERD approving a policy requiring periodic competitive recruitment for County service contracts with nonprofit community-based organizations Supervisor DeSaulnier discussed the recommendations to develop guidelines to standardize the County's Request for Proposals for contract services as outlined in the Board Order,as well as those in a previous Board Order dated December 3, 2002 (meeting handout)., Supervisor DeSaulnier raised a concern about multi year contracts that roll over at the end of the agreement period rather than being sent out for bid. Supervisor DeSaulnier amended page 3 of the Administrative Bulletin No. 611,under 5 of the Policy Waiver,and added a paragraph to read: "The County Administrator would notice the Board of Supervisors through some communication via the Agenda,preferably the Consent calendar, whenever they do waive this policy." Silvano Marchesi,County Counsel, said he had reviewed the Administrative Bulletin on Contracting with Community-Based Organizations,and all legal issues had been addressed. The public was invited to address the Board.The following persons provided testimony: ■ Liz Callahan,Director,Contractors Alliance,2977 Ygnacio Valley Road,Walnut Creek, said she was surprised to see this item on the agenda. She was assured by both the County Administrator's office and members of the Board of Supervisors that before any action is taken,the Contractors Alliance will be invited to the table to discuss this. The Board of Supervisors took the following action by unanimous decision: REFERRED to the Family and Human Services to review Policy of Periodic Competitive Recruitment for County Service Contracts,and return to the Board of Supervisors within two months;AMENDED page 3 of the Administrative Bulletin No. 611,under 5 of the Policy Waiver and added a paragraph which reads"The County Administrator would notice the Board of Supervisors through some communication via the Agenda,preferably the Consent calendar,whenever they do waive this policy." Policy Requiring Periodic Competitive Bid for Contracts February 15, 2005 Board of Supervisors Page 2 r� BACKGROUND: The County has in place the Outreach Program, adopted by the Board of Supervisors in 1998 to promote broad notification to all businesses, including minority-owned, women- owned, disadvantaged-owned, disabled veterans-owned, small, or local businesses of County business opportunities. The Outreach Program applies to service contracts in the amount of$2,500 or more and purchasing contracts that exceed $10,000. County departments are required to report to the County Administrator their outreach efforts on a quarterly basis. These reports are also reviewed quarterly by the Internal Operations Committee, which is charged by the Board of Supervisors to provide policy oversight to the County Administrator on the Small Business Enterprise and Outreach programs. Contracts with non-profit community-based organizations (CBOs) are exempt from the Outreach Program because the purpose of such contracts is to build capacity within specific communities to serve their own social service needs. Generally, the availability of CBOs to serve specific social needs and target populations is extremely limited, rendering a competitive bid process academic. Moreover, County program experts maintain that long- term contractual relationships with CBOs can be beneficial to the communities served by those CBOs. The Board of Supervisors, nonetheless, became concerned over the number of expensive contracts being awarded by multiple departments (primarily County health and human services departments) to the same CBOs year after year, but for different target populations and services. At my request, the Board of Supervisors directed the County Administrator to develop a policy to limit the number of times a department could renew such contracts without issuing requests for proposals. In an effort to address the Board of Supervisors' concerns over repeated renewal of contracts with CBOs, which are exempt from the provisions of the County's Outreach Program, the County Administrator has worked with County health and human services departments to develop the policy, "Contracting with Community-Based Organizations", attached hereto for the Board's consideration. This policy stipulates that for CBO contracts in excess of$25,000: ■ the initial contract award will be based on a competitive bidding process; ■ an annual contract may not be renewed more than two times without a competitive bid process; ■ multi-year contracts may not exceed three years in length and may not be extended without a competitive bid process; ■ contracts shall specify performance outputs and outcomes, which shall be considered when a contract comes up for renewal; and ■ additional fiscal oversight will be required for contracts in excess of$250,000. Policy Requiring Periodic Competitive Bid for Contracts February 15, 2005 Board of Supervisors Page 3 CBOs represent approximately 20% of the total annual number of Health Services Department contracts, and nearly 35% of the total dollar value of all Health Services contracts.' The average value of a CBO contract in the Health Services Department is $270,000. The recommended policy targets contracts with CBOs because, unlike persona llprofessional service contracts which are subject to the Outreach Program, the County currently has no policies governing this significant group of CBO contracts. ka. 1 Health Services Department data as of April 28, 2004. CONTRA COSTA COUNTY Office of the County Administrator ADMINISTRATIVE BULLETIN Number: 611 Date: 3/1/05 Section: Purchasing SUBJECT: Contracting with Community-Based Organizations 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. In light of limited fiscal and administrative staff resources, the Board of Supervisors has directed that the County Administrator establish policies and guidelines to promote high-quality contract services and cost efficiencies in the process for obtaining contract services from community-based organizations. This policy pertains exclusively to contracts with community-based organizations for social services, and does not amend or replace Administrative Bulletins Nos. 605 and 608-610 pertaining to contracting for special services. POLICY 1. Competitive Bidding For contracts with community-based organizations in excess of$25,000: 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 competitive bid process. c. Multi-year contracts may not exceed three years in length and may not be extended without a competitive bid process. 2. Contract Award Administrative Bulletin No. 611 Contracting with Community-Based organizations Page 2 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 financial track record. c. Follow-on or renewal contracts will not be approved unless and until any audit exceptions and deficiencies have been remedied. 3. Contract Requirements a. All contracts shall identify specific performance outputs. Contracting departments shall review performance of contracts periodically to ensure compliance with output requirements. b. All contracts shall identify specific performance outcomes. Contracting departments shall review performance of contracts periodically to ensure compliance with outcome requirements. c. Failure to achieve contracted performance output or outcome requirements shall be grounds for contract termination. d. 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. e. 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. 4. Board of Supervisors Appr= 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 Administrative Bulletin No. 611 Contracting with Community-Based Organizations Page 3 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 h. if applicable, justification for waiver of all or any portion of this policy (see the following section) 5. Po_ligy Waiver Prior to entering into any contractual agreement under this policy, application may be made 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. GUIDELINES FOR COMPETITIVE BIDDING 1. Suggested Formal petitive 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. Conduct a Request for Information (RFI) and/or take necessary steps to identify potential contractors (reference County Outreach Program), including contacting other public agencies. Advertise the services being sought and instruct vendors as to whom to notify if they can and are qualified 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. 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. Administrative Bulletin No. 611 Contracting with Community-Based Organizations Page 4 ♦ 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 proposers 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 proposers. Send a summary of questions and answers emanating from the Bidders' Conference to all vendors who were sent a copy of the RFP. h. Evaluate the proposals in accordance with predefined qualifications, eliminate proposers that are not qualified, and send notification letters. L 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. Administrative Bulletin No. 611 Contracting with Community-Based organizations Page 5 j. Convene an impartial selection panel, 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. Orig. Dept: County Administrator References: California Government Code section 26227 Board Order dated August 17, 1982 from the internal Operations Committee /s/ JOHN SWEETEN, County Administrator CONSIDER WITH SD. 9 TO: BOARD OF SUPERVISORS FROM: Supervisor Mark DeSaulnier •' Contra ' Costa DATE: December 3,2002 Coun SUBJECT: Opening and Standardizing Contract Services SPECIFIC REQUEST(S)OR RECOMMENDATIONS)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Direct the County Administrator to develop guidelines to standardize the County's Request for Proposals for contract services. Included in the guidelines should be a mechanism to trigger performance reviews and the re-issuance of an RFP for multi-year contracts. It is the intent of the Board of Supervisors to ensure that the County has an open and fair bidding process for contracted services and that its RFP process stands up to public scrutiny. Currently, there is a concern that some multi-year contracts are rolled-over at the end of the agreement period rather than being sent back out for bid thus becoming perpetual contracts. In addition,the County purchases a wide variety of goods and services annually and while typically a contract of$75,000 or$100,000 could trigger a Request for Proposals, it doesn't always and there is no standardized process when it does. BACKGROUND: Many cities and counties throughout the state and nation are reforming and standardizing their contracting process to make sure the parameters for bidding on contracts are competitive and that the public is receiving the best service or product for the best price. Whether it's the private sector or the public sector,procurement extends beyond the actual cost of goods and services. It is the ability of the organization to perform it's primary mission, which counties are delivering services to constituents. Last year,the City of Chicago implemented the Chicago Procurement Accountability and Control (CPAC). The initiative was co-sponsored by the City's law Department and demonstrates how government can adopt the best practices of private industry. Chicago's re-engineered contracting process was achieved through the use of technology,procurement teams, cycle time reductions and an on-going focus on MBE and WBE inclusion. This system uses"procurement teams"that compile a list of contracts in their area and determine how the contracts are to be prioritized and managed. Under Chicago's City Ordinance, the formal RFP process kicks in for contracts for goods or services with a value greater than$10,000. In the County of Los Angeles, the Board of Supervisors must award service contracts over $100,000. For architect, engineer, and construction contracts, that figure is $75,000 and cost- effective service privatization contracts the figure is anything over$25,000. Nearly all the information required for doing business with L.A. County can be found on-line under the heading "Doing Business with Us." The site includes policies and standard terms and conditions as well as registration information for potential vendors.