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Supervisors refer $10M JobsNow contract increase and contract questions back to committee
Summary
The board voted to refer back to committee an emergency declaration to modify the human services contract with Acumen (fiscal agent for JobsNow) to add $10 million. Supervisors sought more time to explore whether components of the work could be done in-house and to review procurement/outreach to local vendors.
The Board of Supervisors voted to send back to committee an emergency authorization that would modify and ratify a Human Services Agency contract with Acumen to provide wage-subsidy reimbursements and payroll services for JobsNow participants, adding $10 million (bringing the modified contract to about $20 million total) and extending performance through June 30, 2011.
Why the board sent it back: Supervisors expressed concern that the contract has been held by an out-of-state vendor (Acumen) and asked whether parts of the program — particularly employer reimbursement administration — could be performed in house by city staff or by the Controller’s Office to save costs and expand program capacity. Supervisors also wanted the accept-and-expend appropriation to be coordinated with the contract modification and asked staff to return to committee with recommendations and more analysis of in-house alternatives and procurement outreach to local firms.
Discussion highlights: Human Services Agency Director Trent Rohrer explained the contract covers two components: (1) reimbursing private employers for wages paid to JobsNow participants, and (2) payroll services for roughly 800 nonprofit-employed transitional jobs participants — a payroll function the city cannot currently perform for non-city employees. Rohrer said the agency has already tried three RFPs and received limited qualified local responses.
Ben Rosenfield, City Controller, told the board the Controller's Office and HSA are exploring the feasibility of bringing portions of the work in house, but that it would not be practical to convert the full payroll service in weeks. Rosenfield said some functions could be transitioned to city staff over time and that, practically, aligning the appropriation and the contract in committee would be prudent.
Vote and motion: Supervisor Avalos moved to refer the emergency contract amendment back to committee for further review, seconded and adopted by a roll call vote (8 ayes, 3 noes). Board members stressed the need to avoid disrupting paychecks for current participants while the committee examines alternatives; staff said payments would continue in the interim.
Contract details noted in meeting: The modification sought to add approximately $10,000,000 for JobsNow employer-based wage subsidies, for a total modified contract amount of approximately $20,000,000; contract components date to initial procurement in February 2007 and have been re-procured and modified multiple times.
Next steps: The board requested HSA, the Controller and the City Attorney to return to committee quickly with analysis of: which components can be brought in house and on what timeline; procurement and outreach records showing local solicitation results; financial analysis of in-house vs. contractor costs; and recommendations for aligning the contract modification and appropriation.
Ending: The referral buys the board and staff time to examine alternatives without interrupting the program; HSA said that payments would continue while the board considered next steps.
