Sole Source/ Proprietary Request Form

Transcription

1 Sole Source/ Proprietary Request Form COUNTY POLICY ON SOLE SOURCE CONTRACTS: It is the policy of the County of Orange to solicit competitive bids and proposals for its procurement requirements. Sole source procurement shall not be used unless there is clear and convincing evidence that only one source exists to fulfill the County s requirements. All sole source purchases requiring Board of Supervisors approval shall be justified as meeting the sole source standard in the Agenda Staff Report. The Agenda Staff Report shall clearly state that it is a sole source procurement. The Sole Source Justification, as described below, shall be attached within the Agenda Staff Report (CPM, Section 4.4) SECTION I INSTRUCTION FOR COMPLETING THIS FORM: 1. Formal justification is required for sole source procurements when competitive bid guidelines require pricing from competing firms. 2. A written justification will be prepared by the department and approved by the department head or designee. 3. Prior to execution of a contract, the County Purchasing Agent or designee shall approve ALL sole source requests for commodities that exceed $250,000 and services exceeding $50,000 or a two (2) year consecutive term, regardless of the contract amount. 4. If vendor is a retired, former Orange County employee, CEO Budget shall approve the sole source request, regardless of the sole source amount. 5. Board approval is required for all sole source contracts for commodities that exceed $250,000 and services exceeding $50,000 or a two (2) year consecutive term, regardless of the contract amount. 6. The Deputy Purchasing Agent (DPA) shall retain a copy of the justification as part of the contract file. 7. Valid sole source request contain strong technological and/or programmatic justifications. 8. Sole source procurements may be approved based upon emergency situations in which there is not adequate time for competitive bidding. 9. Sole source requests for Human Service contracts will be guided by the regulations of the funding source. 10. Each question in Section III of this form must be answered in detail and signed by the department head with concurrence of the Deputy Purchasing Agent. SECTION II DEPARTMENT INFORMATION Department: Date: Orange County Probation Department Vendor Name: 4/14/14 Sole Source BidSync Number: Justice Benefits, Inc LOR Is the above named vendor a retired employee of the County of Orange? Yes xno If Yes, review and Approval is required from CEO Budget prior to contract execution. Amount: Contract Term (Dates): Is Agreement Grant Funded? Funding Source: Percent Funded: $1,024,500 (4/1/146/30/17); $598,800 (7/1/176/30/19) Upon Board approval to 6/30/17 (initial term); 7/1/17-6/30/19 (renewal) Yes xno County General Proprietary? 100%, Title X Yes IV-E revenue offset No Type of Request: x New Board Date: 5/13/14 Renewal Multi-Year ASR Number: Amendment Increase Retired Former Employee If not scheduled to go to the Board explain why? Scheduled for 5/13/14 Page 1 of 3

2 Does Contract include Non-Standard Language? If yes, explain in detail. No changes to standard terms and conditions Was Contract Approved by Risk Mgmt? No changes to indemnification and insurance Were any exceptions taken? If yes, explain in detail. No Was Contract Approved by CoCo? Yes SECTION III SOLE SOURCE JUSTIFICATION 1. Provide a description of the type of contract to be established. (For example: is the contract a commodity, service, human service, public works, or other please explain.) Professional services agreement for technical assistance in Title IV-E administrative claims; Justice Benefits, Inc. (JBI) will implement a web-based timekeeping system for probation officers, using JBI s proprietary software called Random Moment Sampling (RMS). 2. Provide a detailed description of services/commodities to be provided by the vendor. (This information may be obtained from the scope of work prepared by the County and the vendor s proposal that provides a detailed description of the services/supplies). Attach additional sheet if necessary. Title IV-E is a federally-funded program that allows probation departments to seek reimbursement for activities associated with services to youth at imminent risk for foster care placement. The California Department of Social Services (CDSS) is the responsible state agency for submitting Title IV-E claims to the federal government. Probation has received approximately $750,000 in Title IV-E revenues per quarter, or $3 million annually. A recent (September 2013) federal audit of Title IV-E claiming for San Mateo and Sacramento counties showed systemic issues with the process, and resulted in suspension of Title IV-E claiming activities for all probation departments in California until deficiencies have been successfully addressed. The Chief Probation Officers of California (CPOC) worked with CDSS to prepare a corrective action plan, requiring all probation staff working on Title IV-E to be trained on revised Title IV-E guidelines by May 31, Orange County s Chief Probation Officer and Division Directors of Orange County Probation (Probation) have participated in numerous discussion with California counties as a result of the audit disallowances that were levied on San Mateo and Sacramento counties. CPOC has also collaborated with JBI to define a consistent and complete Title IV-E administrative claiming option for probation departments in California. As a result, Probation wishes to contract with JBI for technical assistance in Title IV-E administrative claims. In order to fully and accurately comply with federal guidelines, Probation must use the technical assistance and specialized experience of JBI. Through extensive research and discussions with probation departments of other counties, no other vendor has been identified that is capable of providing the technical assistance offered by JBI, and that possesses similar experience and expertise. JBI s RMS is approved by both federal and state authorities administering the Title IV-E program. JBI s RMS proprietary software will be used to document and identify the time spent by the Probation s deputy officers in administering the Title IV-E program. JBI will provide Title IV-E training to Probation staff assigned to participate in the RMS timekeeping process, which JBI will monitor daily for coding accuracy and statistical validity. JBI will compile the time study results quarterly to compute Title IV-E administrative claims and ensure appropriate reimbursements. Page 2 of 3

3 Probation s use of JBI s RMS system and proprietary software is expected to maximize revenues while minimizing the risk of federal audit disallowances. 3. Please state why the recommended vendor is the only one capable of providing the required supplies and/or commodities. Include any back-up information or documentation which supports your recommendation. (Acceptable responses to this question will include strong programmatically/technological information that supports the claim that there is only one vendor that can provide the services and/or commodities). Attach additional sheet if necessary. In September 2013, the Regional Office of the DHHS reviewed Title IV-E claiming for the probation departments of San Mateo and Sacramento counties. Of the 75 cases reviewed, only 16 were found to have acceptable documentation for funding eligibility. The federal audit also indicated systemic issues with the claims processes used in those two probation departments. As a result, starting October 1, 2013, the federal government suspended claiming activities for all probation departments in California until deficiencies have been successfully addressed. The Chief Probation Officers of California (CPOC) worked with CDSS to prepare a corrective action plan, requiring all probation staff working on Title IV-E to be trained on revised Title IV-E guidelines by May 31, CPOC has also collaborated with Justice Benefits, Inc. (JBI) to define a consistent and complete Title IV-E administrative claiming option for probation departments in California. JBI is the only entity that has been certified by CDSS to provide Title IV-E training to California counties. As a result, JBI is the only known vendor to provide these specialized services that will assist our department to properly submit claims within the Title IV-E protocols. Under the proposed agreement, JBI will implement a web-based time keeping system using its proprietary software program called Random Moment Sampling (RMS) and the use of this program is expected to maximize revenues while minimizing the risk of federal audit disallowances. JBI s RMS is a federally-approved methodology to document and identify the time spent by probation officers in administering the Title IV-E program. CDSS has also recognized JBI's RMS for Title IV-E time documentation and submittal of claims. JBI will provide Title IV-E training to Probation staff assigned to participate in JBI's automated timekeeping process, which JBI will monitor daily for coding accuracy and statistical validity. JBI will compile the time study results quarterly to compute Title IV-E administrative claims and ensure appropriate reimbursements. JBI has developed 17 years of expertise in federal revenue maximization for state and local agencies, with specialty in Title IV-E administrative claiming for juvenile justice departments. No other consulting firms nationwide, besides JBI, currently assist local juvenile justice departments with Title IV-E administrative claiming. JBI is the only company filing Title IV-E claims in seven states. In California, JBI s clients include 17 counties. Contracting with JBI will ensure that Probation s Title IV-E administrative claiming procedures are in compliance with state and federal guidelines, thus minimizing the risk of audit exceptions while maximizing revenue. As the Title IV-E program and quarterly submittal of administrative claims to the state will be ongoing, Probation will need JBI s technical assistance for the long term. (Please see attached letter of sole source certification for back-up information.) 4. Please list any other sources that have been contacted and explain in detail why they cannot fulfill the County s requirements. (Responses to this section should include information pertaining to any research that Page 3 of 3

4 was conducted to establish that the vendor is a sole source. Responses should include information pertaining to discussions with other potential suppliers and why they were no longer being considered by the County). Answers to this section may be provided by the requestor and the Deputy Purchasing Agent as appropriate. Attach additional sheet if necessary. There are no other consulting firms nationwide, besides JBI, that can be contacted to perform the services required by the Probation Department. JBI is the only company that currently assists local juvenile justice departments with Title IV-E administrative claiming, in seven states and 17 California counties. JBI s RMS software is proprietary, and its methodology is federally-approved and CDSSrecognized. 5. How does recommended vendor s prices or fees compare to the general market? Attach quotes for comparable services or supplies, if available. Attach additional sheet if necessary. There is no competitive marketplace for the Title IV-E claiming services provided by JBI. Probation can only compare JBI s proposed prices with California counties that are already contracting with JBI. San Bernardino County pays a fixed annual amount of $200,000 and an incentive fee of 2% of Title IV-E revenues received (an estimated annual amount of $60,000). Probation s proposed contract with JBI has the same pricing structure as San Bernardino s. Sacramento County entered into a six-month contract with JBI for $50,000; however, that contract may have been negotiated following the September 2013 federal audit and is not directly comparable to Probation s proposed contract with JBI. Ventura County s contract with JBI is also not directly comparable, as it contains a tiered pricing structure, with a payment to JBI of 1.25% of a set baseline revenue, plus another 15% payment for any additional revenue above that baseline. 6. If recommended vendor could not provide the product or service, how would the County accomplish this particular task? Attach additional sheet if necessary. Probation would continue preparing Title IV-E administrative claims manually, which will increase the risk of federal audit and potential disallowance. Further, Probation would not receive the training on revised Title IV-E guidelines now required of all probation staff working on Title IV-E. 7. If vendor is a retired, former employee, has the vendor previously been rehired as a working retiree or a contractor within the last three years? Yes x No If yes, provide the following information: a) If a working retiree, provide time periods worked, hours worked, and hourly amounts paid. b) If a contractor (regardless of scope of work), provide contract dates, scope of work, and total amounts paid under each contract. Attach additional sheets if necessary. N/A Page 4 of 3

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