AGENDA # , February 7, 2012

COUNTY ADMINISTRATOR

SUSA.N S. MUR .... NISHI DONNA LINTON COVNTY ADMI,..ISTR:ATOR ASSISTANT COUli-r..,. ADMIfr()'sYJlATOR

January 23, 20 12

Honorable Board of Supervisors County of Alameda 122 I Oak Street, Suite 536 Oakland, CA 94612-4305

Dear Board Members:

SUBJECT: EXTEND AND INCREASE A CONTRACT FOR WORKERS' COMPENSATION MANAGED CARE CONSULTrNG AND PERFORMANCE MONITORJNG SERVICES (CONTRACT #2649), AMOUNT: $127,400

RECOMMENDATION

Authorize the Board President to sign an amendment to extend and increase Contract No. 2649 with David Donn Consulting, Inc. (David A. Donn, President, San Francisco, CA) for Workers' Compensation Managed Care Vendor Performance Monitoring and Evaluation Consulting Services.

During the current term, the contract will be increased by $24,800 from $555,000 to $579,800. During the extension teon, the contract will be increased by $102,600 from $579,800 to $682,400. The tem of this contract extension shall be one year, beginning January I, 2012 and ending December 31, 2012. This amendment also allows for another one-year extension by mutual agreement.

DISCUSSION/SUM MA RY

On April 8, 2008, your Board approved a contract with David Donn Consulting, lnc. (DOC) for workers' compensation managed care vendor selection and performance monitoring and evaluation consulting services. The contract was to assist the Risk Management Unit (RMU) in selecting workers' compensation managed care vendors and (0 monitor and evallJate their performance. The contract amount was a not-to-exceed amount of $555,000.

Alameda County administers its workers' compensation claims through a Third Party Administrator (TPA). The managed care portion of the workers' compensation claims administration is comprised of medical bill review (BR), utilization review (UR), and medical case management (MCM) services and these services are provided by two contractors. The RMU contracted with DDC to assist in selecting managed care vendors and to monitor and evaluate their performance on an on-going basis to ensure compliance with the service agreements.

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Honorable Board of Supervisors Page 2 January 23, 2012

DOC's fees were based on a flat fee for one-time services and a percentage of the savings it achieved on the County's workers' compensation medical bills for its monitoring services. From January 2009 through November 2011, DDC financial improvements for the County totaled $2,0 I 0,482. RlvIU is requesting $24,800 in additional funds for the current contract due to the significant savings achieved over what was projected. During the extension term, the DDC fees will be on a monthly flat fee basis of$8,550.

SECLECTION CRiTERJAlPROCESS

The RMU conducted a search of the SLEB listings, telephone book Yellow Pages, and the Internet and could not identify any vendors that provide similar services or have similar qualifications. The General Services Agency (GSA) Purchasing Department reviewed the Sole Source application, conducted its own search, contacted several local agencies, and concluded that the services provided by David Donn Consulling, Inc. comply with fhe County Sole Source PoliCY in that only a Single source is available and/or valid sole source exceptions 10 the competitive process exist. It then posted on the Counly Website on March 4, 2008, an Advance Notice of Sole Source Procurement for J0 business days and no responses were received. Due to the County '.'I requirements and the proprietQlY nature of the services provided by the vendor it was determined 10 be in the best interest of the County to proceed with a sale source procurement with David Donn Consulting, Inc.

In addition, the Business Outreach and Compliance Office reviewed the Request for Authorization 10 Use Non-SLEB Contractor/Subcontractor. II concurred fhat a SLEB waiver appears appropriate.

FUNDrNG:

Appropriations for this program are included in RMU's FY 2011-12 Approved Budget and will be requested in subsequent budget years. No additional appropriations are required and there will be no increase in net County cost.

Very truly yours,

Susan S. Muranishi County Administrator

SSM:MC:ed v \BOARDLTR\fY 2011·J2\DDC BOARD LTR INCREASE AND EXTEND CONTRACT OI1812_REVISED_ED.DOC

c: Patrick O'Connell, Auditor-Controller Donna Ziegler, County Counsel Barbara Lubben, Director of Risk Management

I· " ~

1b'1l'@ OFFICE OF ACQUISITION POLICY (OAP)

REQUEST FOR AUTHORJZATION TO WAIVE SLED PROGRAM REQUIREMENTS*

For ALL Reg uests- over $3.000: Complete 1-9 & 10 below (First Source) if over S100,000, sign and print your name on line II, su~mit hard copy with supporting documentation for approval 10 GSA·OAP Business Outreach Officer, QIC 26021 AND email soft copy (PDF or Word) to nakill.neal@acgov.org. Upon approval, the procurement will be processed by GSA Purchasing.

For Requests over $15.000. a SLEB Waiver Number will be issued. This number is required to enter a Procurement Contract in ALCOLlNK. OAP will email signed approvals (as appropriate, with Waiver Number) and denials to Reques~.cpa&~, GSA Purchasing and Auditor Controller Office of Contract Compliance (DC C).

. JAN 1 3 201LI. Please check appropnate box and complete department/contact information below.

[K] Requesring Departmenf 0 GSA Purchasing managing the competitive process J;)J=C1=JVJ=D Department: CAO/RNIU Contact: Michael Chan Email: M ichaeI.Chan@acgov.org Telephone #: (51 d'l2"72- m64~

2, Recommended Non-SLEB Vendor (Name): David £?onn Consulting, Inc. POll: CAOFF 1# 1376

Street Address: 1255 Po·st Street, Suite #733 City, State & Zip: San ~rancjsco, CA 94109

3. Procurement Typ,!.{check all appropriate boxes below): DNew Contract lKJ Renewal Contract [R] Contract Amendment-Term [K] ContTact Amendment- Value OOther: _

4. Total PO/Contract Value (Including increase, if any) $682.400; Increase Value (if any) $127,400 Contra ct Term Sta rt Date 03/19/08 En d Da te 12/3 1/12 0 ne-Ti me Pu rcbase 0

~

5, GoodslServJces Procurement Description: Workers' Compensation Managed Care Consulting and Performance Monitoring Services.

6. Brief explanation of why goods/scnoices are required: To monitor the performance of medical bill review and utilization review/medical case management contractors ­

7. Date Goods/Se rvices Needed: 03/19/08 ·12/3 1/12 a. What are the consequences if the date goods/services needed is not met? RMU would not be able to effectively monilOr the

performance a f medical bill revi ew and uti Iizat ion rev iew/med ica1case management con tractors

8. Explanation of why the non-SLEB contractor/subcontractor (in #2 above) is being recommended and Why they are unable to subcontract with a SLI!:B(s) for a minimum of 20,,!~:

DOC is recommended because there are no SLEB contractors. DOC provides performance reports utilizing proprjetary software and there are no products or service that DOC could subconlract with. '

9. E~in what attempts were made to locate a SLEB prime or subcontraclor(s), including: . a.l.2U Copies of bids received and/or detailed statement ofefforts made \0 contact and negotiate with certified businesses, including . list of SLEBs contacted, names of individuals, addresses, phone numbers, dates contacted and bid prices attached b. List of items or selecled portions of work proposed to be performed by certified business in order to increase the likelihood of

achieving the stated goaJ: -----------------------,-------------,------- ­c. Description of in format ion provided to certi fied con tractors/subconlractors regarding the plans, specifications and anti ci pated

time schedule for ~ortions of the work to be perforrned. ----' _

IO.1fthe contract is over S100,000, is the recommended vendor able to comply with the First Source Program? Yes: ~ No: 0 If No, explain: ~

] 1. Depan men t Certi li~a IjPn:.. ' ~~ Ify .to th e accu racy 0 f the prece1Jn g sta lcm en ts,

bx.~ rY'~ J;,ifckl" cflYSK 1t16"/JfT ~ Signature of AgencylOepartment Head or Designee or GSA Print Name Purchasing Manager (if GSA Purchasing managed the process)

OAP to complete below: .

•. R,que,,' ••,o"d, ~ Waive. Valid Th,ough ~~~ SLEB Waive. Numbe'l

Reason:JJc, ~AM ~~~(e.-B. Request Denied: 0

~ Approved by GSA-Office of Acquisition Policy (ReqUIred)

~ SLEIJ Rcqu,,~m~nlS In}/11

FIRST AMENDMENT TO CONTRACT

This First Amendment to Contract ("First Amendment") is made by the County of

Alameda ("County") and David Donn Consulti.ng, Inc. ("Contractor") with respect to that

certain contract entered into by them on April 1,2008 (referred to herein as the

"Contract") pursuant to which Contractor provides Workers' Compensation Managed

Care Consulting and Performance Monitoring Services to the County.

The County and Contractor agree as follows:

1) For valuable consideration, the receipt and sufficiency of which are hereby

acknowledged, County and Contractor agree to amend the Contract in the following

respects:

2) Except as otherwise stated in this First Amendment, the terms and provisions of this

Amendment will be considered to be effective as of the date this First Amendment is

executed by the County (,'Effective Date')

3) The Contractor's current fee is based on a percentage of the savings achieved

through bill review and medical case management performance monitoring service.

Due to the significant amount of savings achieved by the Contractor over the

projected savings, the contract amount is hereby increased by twenty-four thousand

eight hundred and noll 00 dollars ($24,800.00) from five-hundred fifty-five thousand

and noll 00 dollars ($555,000.00) to five hundred seventy-nine thousand eight

hundred and noll 00 dollars ($579,800.00).

4) The term of the Contract is scheduled to expire on December 31, 2011. As of the

Effective Date, the term of the Contract is extended through December 31, 2012.

The contract may be extended for one additional year under terms mutually agreed

upon.

5) In consideration for Contractor's services during the period of the extension, the

County shall pay the Contractor a monthly flat fee of eight·thousand five hundred

and fifty and noll 00 dollars ($8,550.00). As a result of the extension, the not to

exceed amount has increased by one hundred two thousand and six hundred and

no/100 dollars ($102, 600.00) from five hundred seventy-nine thousand eight

hundred and no/l00 dollars ($579.800.00) to six hundred eighty-two thousand four

hundred and no/l00dollars ($682,400.00) over the term of the Contract.

6) DEBARMENT AND SUSPENSION CERTIFICATION:

a. By signing this First Amendment and Exhibit A, Debarment and

Suspension Certification, Contractor/Grantee agrees to comply with

applicable federal suspension and debarment regulations, including

but not limited to 7 Code of Federal Regulations (CFR) 3016.35, 28

CFR 66.35, 29 CFR 97.35, 34 CFR 80.35, 45 CFR 92.35 and

Executive Order 12549.

b. By signing this contract, Contractor certifies to the best of its

knowledge and belief, that it and its principals:

1. Are not presently debarred, suspended, proposed for

debarment, declared ineligible, or voluntary excluded by any

federal department or agency;

2. Shall not knowingly enter into any covered transaction with a

person who is proposed for debarment under federal

regulations, debarred, suspended, declared ineligible, or

voluntarily excluded from participation in such transaction.

5) SMALL LOCAL AND EMERGING BUSINESS PARTICIPATION: Sole source and SLEB requirements waived by Business Outreach and Compliance Office.

7) Except as expressly modified by this First Amendment, all of the terms and conditions of the Contract are and remain in full force and effect.

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Contract as of the day and year first above written.

COUNTY OF ALAJ\1EDA CONTRACTOR/COMPANY NAME

By: _ By:---+L~~~::4t--,--.._Q~._ Signature Signature

j)..;pA.~~Name:(Printed) /.1(Printed)

k~rTitle: President of the Board of Supervisors Title:

Date: --------'----~"'---

Approved as to Form:

By signing above, signatory warrants and represents that he/she executed this Contract in his/her authorized capacity

_ and that by hislher signature on this Contract, he/she or the entity upon behalf of which he/she acted, executed this Contract

By:_..L..-----:....:r-r-=-O:':=-'-1­

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EXHIBIT D

COUNTY OF ALAMEDA

DEBARMENT AND SUSPENSION CERTIFICATION

The contractor, under penalty of perjury, certifies that, except as noted below, contractor, its principals, and any named or unnamed subcontractor:

• Is not currently under suspension, debarment, voluntary exclusion, or

determination of ineligibility by any federal agency;

• Has not been suspended, debarred, voluntarily excluded or determined ineligible by

any federal agency within the past three years;

• Does not have a proposed debarment pending; and

• Has not been indicted, convicted, or had a civil judgment rendered against it by a

court of competent jurisdiction in any matter involving fraud or official misconduct

within the past three years.

If there are any exceptions to this certification, insert the exceptions in the following space.

Exceptions will not necessary result in denial of award, but will be considered in determining contractor responsibility. For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action.

Notes: Providing false information may result in criminal prosecution or administrative sanctions. The above certification is part of the Standard Services Agreement. Signing this Standard Services Agreement on the signature portion thereof shall also constitute signature of this Certification.

CONTRACTOR: ----...f-.;If--'--'---'=-+-------~-------

PRINCIPAL: __-._~~~~~~~~TITLE: -+_=----_..:....- _

SIGNATURE: _=--~-=:::::=______.:.___=___ DATE: _---''--'-':....-.....~_ ____==____

EXHIBIT E

COUNTY OF ALAMEDA CONTRACT COMPLIANCE REPORTING REQUIREMENTS

Upon receipt of signed amendment, prime contractor shall, even if not required in the original contract and any subsequent amendments, immediately enter/assign subcontractors in the System, confirm payments received from the County within 5 business days in the System, immediately enter payments made to subcontractors and ensure that subcontractors confirm they received payments within 5 business days in the System. Subcontractors shall confirm their payments received from the prime contractor within 5 business days in the System.

Alameda County Contract Compliance System training and ongoing support are provided at no charge to contractors and participating sub-contractors awarded a County contract. Contractors having contracts with the County should schedule a representative from their office/company, along with each of their subcontractors, to attend training. The training schedule may be viewed online at

http://www.elationsys.com!elationsys!support l.htm or call Elation Systems at (510) 764-1870. A special access code will be provided to contractors and subcontractors participating in this contract to allow use of the System free of charge.

It is the Contractor's responsibility to ensure that they and their subcontractors are registered and trained as required to utilize the Alameda County Contract Compliance System. Training sessions are approximately one hour and will be held periodically in a number of locations throughout Alameda County.

Revision 9-22-09