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HomeMy WebLinkAboutAgenda - 05-05-1997 - 8m i f 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. S-hn ACTION AGENDA ITEM ABSTRACT Meeting Date: May 5, 1997 SUBJECT: Bid Award:Contract for Direct Mailing of Food Stamps DEPARTMENT: Purchasing/Central Services Public Hearing: No and Department of Social Services Budget Amendment Reqd? No ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, ext. 2650 Bid Tabulation Marti Pryor-Cook ext.2800 Contract Telephone Numbers- Hillsborough. 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider approving a three-year contract with Cost Containment, Inc. for the direct mail issuance of food stamps to Orange County clients. BACKGROUND: Cost Containment, Inc. has provided direct mail issuance of food stamps to Orange County recipients since 1988. Their current contract is due to expire on June 30, 1997. Pursuant to statutory requirements, bids were solicited from interested service providers, with the resulting lowest bid submitted by Cost Containment, Inc. Cost Containment, Inc. was rated highly on other evaluation criteria as well, such as service to the County and reliability and accuracy of issuance. The bid submitted by Cost Containment, Inc. for the renewal period remains at the 1997 level of an amount not to exceed $0.448 per transaction, which represents an expenditure of approximately $10,000. Postage charges to mail the food stamps are in addition to the transaction charge and are billed to the County separately. Complete terms and conditions of the proposed contract between the County and Cost Containment, Inc. are attached to this abstract. The service provider chosen by the County must also be approved by the State. That approval has been given and written confirmation is forthcoming. Recommendation: The Manager recommends that the Board approve a three-year contract, effective July 1, 1997, with Cost Containment, Inc. for the direct mailing of food stamps at a not-to-exceed rate of $0.448 per transaction; and authorize the Chair to sign on behalf of the Board following receipt of written approval of the contract from the State. BID TABULATION 2 RFP NUMBER: 0210 BID FOR: FOOD STAMP DIRECT ISSUANCE BIDAWARDEDTO: CLOSING DATE: MARCH 18. 1997 BID PRICE: CLOSING TIME: 3:00 PM BUDGETED AMOUNT: VENDOR COST PER ISSUANCE �3� ��17 2iYw�sn7 ��✓c.. 5 5vre Is-su C)4 ce i NOR tH LARULl\.k ELK` IC L AURLL`iL`[ 3 ORANGE COUNTY THIS SERVICE AGREEMENT entered into as of the I ST day of JULY,1997 by and between COST CONT UNINf NT, INC. a corporation incorporated under the laws of the State of North Carolina with a place of business in Wake County, North Carolina,3305-C Durham Drive,Raleigh, NC 27603,hereafter referred to as Contractor, and ORANGE County a body corporate and politic,of ORANGE County,North Carolina,hereafter referred to as County,shall be valid for 12, months commencing the effective date hereof unless terminated pursuant to this agreement. FOR AND IN CONSIDERATION OF SERVICE PAYMENTS and to the mutual covenants and agreements herein set forth,IT IS STIPULATED AND AGREED: I. SERVICE PAYMENTS:County agrees to pay to Contractor for service and postage. ISSUANCE FEE: Cost Containment Inc. bids forty four and 8/10 cents($0.448)per envelope whether mailed in the regular,certified, registered and insured or sent to the County or a site for personal delivery. This fee is inclusive of all service charges for whatever reason for the life of the Contract. POSTAGE FEES: Cost Containment,Inc. defines postage cost as first class postal rates,certifieds fees and registered fees for mailing reports and food stamps or delivery of same to the County or issuance site or as directed by the County. Any issuance envelopes to be sent to the County are sent with the reports in the same parcel to minimize postage costs and maximize security. Rates are taken from those of the United States Postal Service at the time of sending. Postage costs for Security Manifest mail will be charged according to Postal regulation. ALTERNATE SERVICE: In times of losses above the tolerance level,Cost Containment,Inc. agrees to complement the County's plan for reducing losses by using methods to by-pass certain post offices,to certify households suspected of fraud,or to establish a County site or a Cost Containment,Inc. issuance site to regulate losses. All calls to Cost Containment,Inc. are free on our toll free lines. Data transmission costs of obtaining data from the State,is also included in this bid. The Contractor agrees to insure the mailings against any replacement losses that exceed the Federal tolerance level (0,5%). In the event the U.S.Postal Service increases the cost of the First Class postage during the contract period,the increased costs of postage(to the Contractor)will be borne by the County effective with the month such increase occurs. All monthly Service Payments shall be paid to Cost Containment,Inc. C/O BB&T,P.O.Box 890333,Charlotte,NC 28289-0333. All Postal Payments shall be paid to Cost Containment,Inc.,C/O BB&T,P.O. Box 890296,Charlotte,NC 28289-0296. Compensation at the rate set above to represent full and complete compensation for services rendered under the terns of this agreement with total cost to the County estimated not to exceed$10,300.00,plus postal costs for the 12 month period covered by this agreement. Actual cost is determined by application of transaction fee plus postage. II. SERVICES PROVIDED:Contractor agrees to provide following service to the County: A. Contractor will correctly mail,by First Class mail,food stamp coupons(hereafter called coupons)to clients designated by the County at the addresses furnished to the Contractor by the County. B. Contractor will,within 24 hours of receipt of the same from the County,make any and all changes of the mailing lists to comply with the applicable changes submitted to ensure the correct mailing to clients at changed and corrected addresses. C. The Contractor will complete and deliver a monthly FNS-250 report to the County for certification and forwarding to the State Office. Contractor shall also provide to the County the information needed for the County to complete the FNS-101,FNS-256 and quarterly FNS-259 reports and other reports as may be required. NC SERVICE WREEMENT 4 • D. In order to deter thefts,Contractor will stagger the dates of mailing of coupons by date and zip code according to instructions from the County. E. Performance of service will be conducted in a manner to ensure the confidentiality of information,data, instruments,documents,studies,and reports given to Contractor to use or prepare for the County. F. Issuance Documentation will include: 1. Daily Issuance Control Register 2. Daily Drive Cards 3. Mass Mail Issuance Control Registers 4. Monthly Mass Mail Issuance Drive Cards 5. Cashiers Daily Reconciliation Report 6. Notice of Mail Return G. Contractor accomplishes daily balancing of vault and maintains perpetual inventory records. H. Contractor will place one stuffer per quarter at no charge to the County. Any additional stuffers will be placed at five cents($0.05)each. I. Approved vault storage for coupons while in the possession of Contractor. The vault is equipped with electronic motion sensors which are monitored 24 hours per day when facility is closed. III. LIABILITY: In as much as the County is liable to the State of North Carolina and U.S.D.A.for any unauthorized coupon issuances or coupon thefts and for any coupon shortages or losses,while in their constructive possession,including, but not limited to,loss due to erroneous mailings,the Contractor agrees that it shall be liable to the County in like manner and amount and shall hold the County harmless from claims of the State arising from any such cause;the Contractor further agrees: A. That it will maintain in full force and effect during the tern of this contract,or any renewal or extension thereof, such insurance or bond,and in such amount,as the County may require to indemnify the County against any theft of coupons while they are in the actual constructive possession of the Contractor,its agents and employees,and against any loss or shortage of coupons or other loss arising out of any act or omission of the Contractor,its agents and employees. B.That if the County suffers any loss of any shortage or reduction in coupons by reason of any act or omission of the Contractor,its agents or employees,the County,may recover the value of its losses by requiring that the Contractor pay the amount of such loss;but in no event shall the amount recovered by the County hereunder exceed its losses. C. In the event of cancellation or nonrenewal of the policy,the County shall be given thirty(30)days prior written notice. IV. AUDITS AND PROCEDURES: As required,the Contractor will allow on-site reviews,audits,and inspections by County,State,or Federal staff and comply with their procedural requirements. Any deviations from Federal or State guidelines and procedures by either Contractor or County must have both the State office and FNS PRIOR approval. County and Contractor agree to use an alternative issuance method in the month following report of Postal loss above the tolerance level and return to regular mail issuance in the month following successful resolution of Postal problems. eage �C SERVICE AGREE.\(EtiT 5 i V. DEFAULT AND TERMINATION: A. Upon default by County,Contractor shall determine and receive from County the sum due for services rendered. In the event Contractor shall be required to institute a suit to collect any unpaid service payments due under this service agreement,Contractor shall be entitled to reasonable attorney's fees set by the Court which shall not be more than 15 percent of the service payments so recovered by the Contractor from County. B. Upon default by Contractor,County shall be entitled to immediate termination of this agreement and,further,to liquidated damages in an amount equal to the sum of service payments made by County to Contractor for the first month of service rendered under this agreement. The County,however,is not limited to the amount of liquidated damages if the County suffers damages in excess of the amount of liquidated damages determined as herein set forth.In the event County shall be required to institute a suit to collect any damages for any amounts due under this agreement, County shall be entitled to reasonable attorney's fees set by the Court which shall not be more than 15 percent of any amount recovered by County from Contractor. C. Either party may terminate this agreement by giving to the other party hereto a written notice of its intention to terminate this agreement. This agreement shall be considered terminated upon the date set forth for termination of the agreement which shall be not less than 90 days from the service and delivery of the notice. The parties hereto may agree to an earlier date of termination of the agreement. Contract may be terminated because of circumstances beyond control of Contractor;such as war,strike,riot and/or natural disaster. VI. SPECIAL PROVISIONS: A.It is understood and agreed between the Contractor and the County that the payment of compensation specified in this agreement,its continuation or any renewal or extension thereof,is dependent upon and subject to the allocation or appropriation of necessary funds to the County by the Federal Government and the State of_North Carolina_ for the purposes set forth in this agreement. Contract is valid only upon receipt of approval from the appropriate District Office of North Carolina Department of Social Services and the North Carolina Department of Social Services. B. Changes in the scope of the services of the Contractor to be performed under this agreement including but not limited to renewal or extensions shall be incorporated in written amendments to this agreement. C. Neither this agreement nor any part hereof which involves the specialized skill or expertise of the Contractor shall be assigned,subcontracted,or in any way transferred without the prior approval of the Contract Administrator (project coordinator)and the State of North Carolina D.The authorized County official,David Cannell,is designated as the Contract Administrator(project coordinator)for the County with responsibility for all matters relating to this agreement including but not limited to invoice approval. However,any CHANGES in the scope of the agreement which will increase or decrease the Contractor's compensation shall not be effective until they have been approved by the Contract Administrator and documented through a written amendment to this agreement. E. Contractor shall comply with all provisions of Executive Order 11246,entitled"Equal Employment Opportunity", as amended by Executive Order 11375,and as supplemented in Department of Labor regulations(41 CFR Part 60). F. County Officials,State Officials,Contract Coordinator,the Federal Grantor Agency,the Comptroller General of the United States,or any of their duly authorized representatives shall have access to any books,documents, papers and records which are in any way pertinent to this agreement for the purpose of making audit explanation, excerpts,and transcriptions. Contractor shall maintain all required records for three years after the County makes final payments and all pending matters are closed. Contractor assures the County that the County,with other officials and agencies mentioned in this item(F),Section VI,of this agreement,shall have access to any and all books,documents,papers,and records of the Contractor for the purpose of audit,examination,excerpts,and transcriptions. NC SERVICE AGREENtEti I 6 G. Contractor agrees to comply with all bid specifications regardless of whether or not individual items are specifically addressed in contract format. H. Contractor shall comply with mandatory standards and policies relating to energy efficiency which are contained in the State Energy Conservation plan issued in compliance with the Energy Policy and Conservation Act(P.L. 94-165). 1.The term of the contract shall be for one year with options for the County to continue for _2^ consecutive one year periods,each with all the terms of the contract including quality of service,to remain constant for the duration of the contract. I In preparation for mail issuance,it is important to screen the food stamp caseload for"problem"households which should receive allotments by certified mail or by pickup at the DSS. These households are usually known by Eligibility staff. These households should be coded as outlined in Section VI,K.3 below. K.The Contractor will be responsible for all County losses under the U.S.D.A. regulations for replacements for any quarter as long as the County abides by the following conditions: 1. All allotments of$300.00 and over and known problem cases will be sent to the DSS for pickup or by certified mail. 2. The County agency will assign participating households for either pickup at the DSS(or issuance office)or certified mail issuance upon the event of one replacement loss. The County may elect to use pickup or certified issuance for reasons other than replacement losses. 3. The County agency agrees to log such households at risk with a"3"or a"7"respectively, on the State Computer (FSIS). 4. County agrees to adjust methods of issuances by planning with the Contractor in the event of indications of significant postal theft or client fraud. 5. When losses exceed the USDA tolerance level(now.5%of total quarterly issuance),effective immediately,all issuances of$200.00 and over will be sent either certified mail or to the County for recipient pickup. 6. The County agency agrees that the contractor will not be obligated to insure or share in the replacement losses of those households at risk when conditions 1,2,3,4&5 fisted above have not been met by the County agency. 7. The County shall provide to the Contractor,as proof of loss,a photocopy of all signed replacement affidavits which are to be applied to the Federal tolerance level,on or about the fifteenth(15th)of the following month. 8. Claims will be accepted by the Contractor at the time the loss is established by the State based on written notice to the County agency. To file a claim,the County agency will forward to the Contractor copies of the letter of notice from the State and form FNS-259 for the appropriate period. Contractor shall obtain and pay for outside insurance covering mail losses over the Federal tolerance level. Losses are not to be deducted from the service invoice. Losses will be filed with the insurance carrier and reimbursement will be sent to the County agency when received by Cost Containment,Inc.,usually within 90 days. L. Contractor agrees to establish the County Department of Social Services as a"branch"of the Contractor's issuance operation,in order to meet the requirements for expedited services,in accordance with State and Federal regulations. M. In the event that site issuance is substituted for direct mail issuance,the food stamps are escorted from the Cost Containment,Inc. vault location to the County issuance center(s)by an independent courier service or sent registered mail. According to County needs authorized by the Agency Director,Cost Containment,Inc. will establish the location(s),hire and train issuance personnel,and direct a delivery system according to the following guide lines. NC SER`10E .AGREEMENT 7 I. A completed issuance is defined as the client presenting an approved I.D.,signing the issuance document and receiving their allotment of food stamps. 2. An operational unit is the smallest segment for issuance. It includes supervision for crowd control and for checking the I.D.(s),a clerk who checks the I.D. and presents the issuance document for signing, and a cashier who counts out the food stamps. This unit can issue more than 2 clients per minute based on established performance. 3. Each County issuance center will use that many units as deemed necessary to promptly issue the clients scheduled to be served on any given day. The issuance schedule must eliminate serious lines at all times. 4. The issuance centers are typically open from 10:00 A.M. until 2:00 P.M. One unit can issue 120 per hour based on 2 per minute or 960 issuances a day. 5. The last name of the client determines on which alpha day a client will be served:a client can come after their "day"but never before. The number of issuances will determine the number of issuance days. VIII.AUTHORITY OF COUNTY: The official executing this agreement covenants that he or she has authority to execute this agreement on behalf of the County of ORANGE,and approves the proposal submitted by the Contractor for the services to be rendered as set forth in Section lI of this agreement. IX. INDEPENDENT CONTRACTOR: Conformity with The Laws A. For all purposes of this agreement,the Contractor shall be deemed an independent Contractor,and neither the Contractor nor its agents or employees are or shall be deemed to be agents or employees of the County agency or the State of North Carolina and the Contractor shall hold and save harmless the County and the State of North Carolina_from the claims of third parties arising out of any act of omission of the Contractor,its agents or employees,in performance of this agreement. B.The Contractor shall pay all taxes,assessments,premiums and fees and shall file all reports and returns required by law and arising out of its operations under this agreement. C.The Contractor shall perform its obligations under this•agreement in conformity with all applicable laws and regulations,Federal,State,or local. ?3ii' j NC SER`"ICE AGREEMENT 8 IN WITNESS WHEREOF,the parties through their duly authorized representative,have caused this agreement to be executed in their respective names an the day and year first above written. CHAIILMAN,BOARD OF COUNTY COMMISSIONERS OR AUTHORIZED COUNTY OFFICIAL Swom and subscribed to before me this the day of 19 NOTARY PUBLIC ATTEST: COST CONTAINTvIENF,INC. by 44 ozq wd/qz� BOARD MEMBER-DONALD L.MORRISON VICE P S NT-P.S.WAGNER (CORPORATE SEAL)