On April 25, 2017, the Board received a presentation from HHSA staff regarding the procurement process for contracts within the Yolo County Health and Human Services Agency (HHSA). The initial presentation on this topic in April was prepared as a response to questions expressed by the Board in March of 2017 regarding the existing contract process at HHSA, the issuance of request for proposals (RFP), and opportunities to strengthen the existing process. The Board and staff engaged in a discussion regarding potential opportunities to strengthen the HHSA procurement process for contracts by utilizing more robust communications, simplifying the process for potential bidders, and ensuring a fair and transparent review process. This agenda item is intended to provide an update to the Board regarding the Agency’s progress in implementing the activities discussed during that presentation and planned next steps for HHSA’s competitive bidding processes.

Overview of the Contract Procurement Process
Annually, HHSA administers approximately 170 contracts for service with an approximate annual total amount of $34,111,663.79. As a service need is determined, the responsible HHSA Branch will request a contract from the Contracts Unit in the Administration Branch. The HHSA Contracts Unit then works with Branch staff to either draft an RFP or a sole source contract for the Branch Director's review. On average, the Agency releases 18 RFPs per year, but this number fluctuates significantly during years when a large scale funding source (such as Mental Health Services Act) requires revised services. Sole sourcing a contract is the least common method of contracting and is generally used for a specific purpose that cannot be met by another vendor. 
 

If an RFP is utilized (which is the most common approach), the RFP will include information on how the submitted proposals will be evaluated. Once an RFP is finalized, the Contracts Unit will work with the Department of Financial Services Purchasing Division to upload the RFP to the County's bidding portal, called "BidSync". Interested vendors have the ability to sign up on BidSync to receive announcements when RFPs are posted in their service delivery interest area. Additionally, HHSA send notifications regarding newly released RFPs to a range of community-based organizations through various email distribution lists maintained by HHSA. RFPs are kept open for a period of 6 to 8 weeks, after which the Contracts Unit prepares the bids for evaluation by a panel. Panelists invited to participate depend on the service to be provided and generally are composed of three to six subject matter experts, often including representatives from multiple HHSA Branches, representatives from an outside Department or Agency and/or representatives from HHSA advisory boards or committees. All panel members are required to sign a conflict of interest statement prior to reviewing proposals. Once the RFPs have been scored by the evaluation panel, the contract can be awarded to the top scoring vendor. On occasion, in the event of close scores or large discrepancies in scoring among panelists, vendors may be invited to participate in an interview prior to a final selection. Once a vendor is selected, a contract for services is negotiated and the resulting contract is provided to the Board for approval. 

Update on Improvement Opportunities
 
During the presentation on April 25, staff discussed multiple opportunities to improve HHSA’s contract procurement process with the Board, as summarized below with status updates. HHSA has made many of the recommended changes, but still has additional work to complete in our efforts to provide efficient and effective competitive bidding processes.  

• Develop an annual calendar of anticipated RFPs. Staff has developed a draft calendar for FY 2017-18.  HHSA will continue to develop calendars for future fiscal years as a part of its budget development process and expects to post publicly on the HHSA website in early April of 2018.  

• Develop a more robust system of marketing RFP opportunities. Staff has expanded the level of marketing that is completed on each HHSA RFP. Beginning in July of 2017, HHSA sent an email notice to all vendors who have current or recent business with HHSA regarding the release of new RFPs in BidSync. The same information is also routinely shared with multiple HHSA email distribution groups for partner agencies (including the Health Council, Homeless and Poverty Action Coalition, Local Mental Health Board, Provider Stakeholder Work Group, and Substance Use Disorder Provider Network). Additionally, all new RFPs are posted on the Yolo County Website under the page titled “Doing Business with Yolo County.”

• Utilize Bidders’ Conferences to share information and answer questions. HHSA has implemented the use of Mandatory Bidders’ Conferences on all RFP opportunities. At each Conference, multiple HHSA staff members are present, including the RFP Coordinator from the Contracts Unit and staff with subject matter expertise (typically including the Branch Director and/or Program Manager). Staff begin each Conference by completing a presentation on the parameters of the RFP, and then accept questions from potential bidders. Call-in options are offered for potential bidders who cannot attend the conference in person. Additionally, all questions and responses during the Conference are recorded and posted on BidSync to ensure that all potential bidders receive consistent information regarding the RFP.

Simple and Accessible Application Process

• Expand the timeframe RFPs are open. HHSA has expanded the timeframe on all RFPs. Prior to the Board presentation in April 2017, RFPs were typically open for 3 to 4 weeks. Beginning in May 2017, all RFPs have been structured to remain open for 6 to 8 weeks.

• Assign navigator to assist agencies with understanding the RFP process. HHSA assigns one staff member from the Contracts Unit to act as the “RFP Coordinator” on each RFP. The RFP Coordinator is the primary contact for bidders, and is the only HHSA employee who may discuss the RFP with potential bidders (outside the Bidders’ Conference). The RFP Coordinator works with program staff to coordinate a response to all questions submitted regarding the RFP, and ensures that all questions and responses are shared through BidSync so that all potential bidders receive consistent information. The RFP Coordinator is also available to assist potential bidders with questions or issues related to the RFP process and/or use of BidSync.

• Conduct exit interviews and/or survey vendors who expressed initial interest in the RFP but did not submit a proposal. HHSA released two pilot surveys, in May and June of 2017, following the first and second rounds of Mental Health Services Act RFPs. The Contracts Unit is currently updating the survey and intends to begin sending the survey out following each RFP, to any organizations that viewed, downloaded or submitted a proposal on the RFP in BidSync. 

• Expand options for submitting proposals. Prior to the Board presentation in April, potential bidders were only allowed to submit proposals via the BidSync system. HHSA has now expanded the options on all RFPs to also allow bidders to drop off a paper copy of their proposal directly at HHSA, in the event that they prefer not to use the electronic system or have challenges with the system.

• Expand participation on the proposal review panel. HHSA has worked to expand its review panels for all RFPs. Panels typically are composed of 3-6 subject matter experts, and at a minimum, are composed of HHSA staff members from across multiple branches. HHSA also typically includes representatives from another County department, an HHSA advisory board or committee, and/or an outside Agency (such as a non-conflicted non-profit organization or another jurisdiction). In RFPs completed during fiscal year 2017-18, reviewers have included representatives from the Local Mental Health Board, Community Services Action Board, Probation Department, District Attorney’s Office, County Administrator’s Office, city police departments, and peer counties.

• Release annual RFP calendar. Staff plans to publicly post the HHSA RFP calendar on the HHSA website in early April 2018. Once posted, the calendar will be continuously updated to share current information regarding upcoming RFPs.

• Increase marketing efforts outside of Yolo County. Staff has already significantly expanded its marketing efforts to local service providers. For upcoming RFPs, analysts in the Contracts Unit will focus on researching additional marketing opportunities that are appropriate for each RFP, and will conduct outreach to statewide list serves and organizations in order to expand the pool of potential bidders.

• Evaluate options for accepting proposals submitted via email. Staff has already increased submission options for RFPs to include an in-person drop-off option, in addition to submission in BidSync. For upcoming RFPs, staff will work with the Procurement Division to evaluate whether allowing electronic submission via email is an appropriate and secure method for submitting proposals on HHSA RFPs. 

• Routinely solicit feedback for potential bidders. Staff is currently revising the pilot surveys that was sent out in to potential bidders in 2017, and plans to solicit responses following every RFP beginning in fiscal year 2018-19.  

• Implementation of Modules in INFOR. Staff intends to work with the Procurement Division to implement use of the INFOR modules related to contracting and procurement, including the Contracts Management Module and Vendor Portal. Staff does not have an estimated timeline on this item, as it is dependent on the rollout timelines for other critical INFOR modules.

• Establishing scoring standards
• Establishing standards for membership on RFP Review Panels
• Leading all correspondence with bidders
• Facilitating the review and selection process, including panel review of proposals, interviews and final determinations

County Administrator’s Office

Department of Financial Services