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Regular-Health & Human Services # 42.
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| Board of Supervisors |
Administration |
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| Subject |
| Provide information on Health & Human Services Agency contracting process, including options for improvement. (No general fund impact) (Larsen) |
| Recommended Action |
| Provide information on Health & Human Services Agency contracting process, including options for improvement. |
| Strategic Plan Goal(s) |
Thriving Residents
Safe Communities |
| Reason for Recommended Action/Background |
Annually, the Health and Human Services Agency (HHSA) administers on average over 170 contracts for service with an average annual total amount of $18,600,000. A small percentage of those contracts are one-time in nature, the remainder are multi-year contracts for services both to clients and for the Agency. The Board expressed an interest in learning more about the HHSA contracting process including the issuance of requests for proposals (RFP) as well as decisions to sole source absent a competitive process. Additionally the Board expressed concerns related to the number of respondents to RFPs. In response to these concerns, the Agency is providing background regarding both the current process and strategies available to improve.
Similar to most departments, as a service need is determined, the responsible HHSA Branch will request a contract from the Contracts Unit in the Fiscal Branch. Attachment A is a copy of the contract request form. HHSA Contracts unit will then use the information contained on the request form to either draft an RFP or a sole source contract for the Branch Director's review. 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. Also, when one-time funds become available for use (i.e. Intergovernmental Transfer), a sole source is used to expand existing services on a short-term basis. If an RFP is utilized (which is the most common approach), the RFP will be finalized and include information on how the RFP will be evaluated. Once an RFP is finalized, the Contracts Unit works with the Department of Financial Services Purchasing Division to upload the RFP to the County's bidding portal "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 will notify community-based organizations of the proposal opportunity. Once the RFP timeline has closed, 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. 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, 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. On average, the agency releases 13 RFPs per year. However, during years when a plan or funding source requires revised services there can be as many as an additional 18 RFPs related to those new services (a new three-year MHSA Plan is an example of when this would occur).
It is not uncommon for only one bid to be received for an RFP. Thus, in an effort to improve the existing process, the following options are available to increase the number of proposals received:
- Develop an annual calendar which indicates what service will be out to bid and the anticipated date of bid opening. Currently notifications of available bids occur a few weeks in advance of the bid opening. An annual calendar would allow for more advance notification.
- Market the RFP opportunity in advance. Currently, both informal and formal notifications occur to potential respondents. Developing a marketing plan for additional outreach prior to formal bid opening may allow for expanded receipt of proposals.
- Provide for additional time to prepare a proposal for an RFP. Currently, bids remain open for three to four weeks. Expanding this to four to six weeks would allow more time for respondents to prepare their proposals.
- Conduct exit interviews and/or survey vendors who viewed the RFP and did not prepare a proposal. In the event there was a challenge associated with the RFP process, these exit interviews would allow opportunities for improvement where the process precluded the vendor's participation.
- Expand participation on the proposal rating committee. Currently, the rating panel consists of individuals both within HHSA and the County, who are considered subject matter experts. When possible, the panel could also include subject matter experts from external stakeholders
Staff recommends exploring each of these ideas, as well as additional options generated during the Board Meeting, with internal and external stakeholders over the next few weeks. Staff would return to the Board at the June 6 meeting with an action plan built around these elements that includes input received from the Board and stakeholders.
This item is informational in nature and staff anticipates receiving input from the Board about the HHSA contracting process and next steps to improve the process. |
| Collaborations (including Board advisory groups and external partner agencies) |
| County Administrator's Office |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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