Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  24-000950

 

MEETING DATE:

03/25/25

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Social Services Agency   (Approved)

Department contact person(s):

An Tran (714) 541-7708 

 

 

James Cho (714) 541-7711

 

 

Subject:  Approve Amendment Two to Contracts for Integrated Job Services

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost:   N/A

Annual Cost: FY 2025-26 $10,755,234
FY 2026-27 $10,755,234

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:     FED: 80% (TANF), State: 20% (CalWORKs)

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         11/29/2022 #47, 6/7/2022 #22, 3/9/2021 #23, 5/24/2016 #82

 

RECOMMENDED ACTION(S):

 

 

1.

Authorize the County Procurement Officer or Deputized designee to execute Amendment Two to Contract for Integrated Job Services to renew and amend the Contract in an amount not to exceed $21,510,468, effective July 1, 2025, through June 30, 2027, for a revised aggregate total amount not to exceed $53,776,170, for the term of July 1, 2022, through June 30, 2027.

 

2.

Authorize the County Procurement Officer or Deputized designee to execute Amendment Two to individual Contract with Arbor E&T, LLC DBA Equus Workforce Solutions, for Employment Services, effective July 1, 2025, through June 30, 2027, for the term of July 1, 2022, through June 30, 2027.

 

3.

Authorize the County Procurement Officer or Deputized designee to execute Amendment Two to individual Contract with Arbor E&T, LLC DBA Equus Workforce Solutions, for Subsidized Employment/Vocational Training Services, effective July 1, 2025, through June 30, 2027, for the term of July 1, 2022, through June 30, 2027.

 


 

4.

Pursuant to County Policy Manual Section 3.3-113, authorize the County Procurement Officer or Deputized designee to exercise a contingency contract cost increase, not to exceed a total of 10 percent of the Contracts amounts for the first year of the Contracts, for the entire term of the Contracts, including renewals, and within the scope of work set forth in the Contracts. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.

 

 

 

 

SUMMARY:

 

Approval of Amendment Two to the Contracts with Arbor E&T, LLC DBA Equus Workforce Solutions, for Integrated Job Services will support participants in the California Work Opportunity and Responsibility to Kids Welfare-to-Work Program in obtaining and/or maintaining stable employment and assist in achieving the goal of self-sufficiency.

 

 

BACKGROUND INFORMATION:

 

The Board of Supervisors’ (Board) approved the following Contracts for Integrated Job Services (IJS):

 

Board Date

Contract or Amendment Number

Term

Maximum Obligation

Board Action

5/24/2016

Contract

7/1/2016 – 6/30/2021

$56,433,560

Approve Contract with Arbor E&T, LLC DBA ResCare Workforce Services (ResCare)

3/9/2021

One

7/1/2021 – 6/30/2022

$65,501,678

*Approve First Amendment to Contract with Arbor E&T, LLC DBA Equus Workforce Solutions (Equus)

6/07/2022

Contract

7/1/2022 – 6/30/2025

$32,265,702

Approve Contract with Arbor E&T, LLC DBA Equus Workforce Solutions (Equus)

6/07/2022

Two

7/1/2022 – 12/31/2022

$65,501,678

Approve Second Amendment to Contract with Arbor E&T, LLC DBA Equus Workforce Solutions (Equus) for Pre and Post Supportive Services

11/29/2022

Contract

1/1/2022 – 6/30/2025

$14,180,000

Approve Contract with Orange County Asian and Pacific Islander Community Alliance, Inc. (OCAPICA)

 

*In March 2021, Arbor E&T, LLC dba ResCare Workforce Services (ResCare) had a name changed and is now known as Arbor E&T, LLC, DBA Equus Workforce Solutions (Equus).

 

The California Work Opportunity and Responsibility to Kids (CalWORKs) program seeks to address poverty through an array of services designed to assist families in various stages of need. CalWORKs provides temporary cash assistance and employment, education, and training programs through the Welfare-to-Work (WTW) program to assist families’ progress toward self-sufficiency.

 

IJS helps families by enhancing the employability of WTW participants through engagement in employment preparatory activities and placement in paying jobs. Service Components (SC) include: Employment Services (ES), Employment Support, and Post-Aid Supportive Services (ES PASS), and Subsidized Employment/Vocational Training (SE/VTR) Services.

 

SC # 1 – ES:

This SC provides employment preparation activities and job placement assistance for qualifying WTW participants. Preparatory activities include job search services, job readiness training, active job search, job placement, employment counseling and job development. Additionally, the ES program provides resource rooms that offer WTW participants and the general public access to job search support, basic resume writing assistance and essential tools such as computers, fax machines, phones, current job leads and other community resources.  

 

SC #2 – ES PASS:

This SC removes barriers to employment such as food, clothing, transportation and other necessities. Services are available to participants before, during and after securing employment and available for up to twelve months following the discontinuance of CalWORKS benefits due to earned income.

 

Effective December 1, 2024, the Contract with OCAPICA for ES PASS was terminated and will not be renewed due to funding constraints.

 

SC #3 – SE/VTR Services:

This SC provides support for WTW participants in the Public Subsidized Employment Program (PSEP), Work Experience (WEX) and Vocational Training (VTR) activities. PSEP is a subsidized employment program which places WTW participants in public and non-profit sector jobs through partnerships with the County, cities and special districts. WEX provides subsidized employment placements with employers that are expected to lead to permanent, unsubsidized employment.

 

VTR services provide WTW participants with program referrals and enrollment into vocational-technical schools, postsecondary institutions, proprietary schools and public programs in high-demand fields, addressing community needs. Additionally, SE/VTR Services offer continued support for WTW participants who complete a subsidized employment placement, assisting them in transitioning to unsubsidized employment or maintaining unsubsidized employment for 30 days or more.

 

The Disabled Veteran Business Enterprise (DVBE) Preference Policy was applicable and incorporated into these solicitations. No DVBE qualified proposals were submitted. The Orange County Preference Policy for Local Small Business is not applicable to this contract award because services are partially funded with federal dollars.

 

In November 2023, Amendment One to the IJS Contracts was executed. This administrative amendment revised the County of Orange’s (County) holiday schedule and amended the County’s information technology security, usage and privacy provisions, as well as the attachments. Additionally, the amendment included updates to the State privacy and security provisions. See Attachments F and G for reference.

 

The proposed Amendment Two will utilize the current outcome objectives, with language incorporated to clarify program requirements and expectations. Cumulative Outcomes for Integrated Job Services are as follows:

 

SC #1: Employment Services by Equus from July 1, 2022, through December 31, 2024:

 

Outcome Objectives

Outcome Results

 

FY

2022-23

FY

2023-24

FY

2024-25

A minimum of seventy-five percent (75%) of Participants referred to Contractor and enrolled shall fully complete Job Search and Job Readiness Assistance.

77%

Met

85%

Met

89%

Met

A minimum of fifty percent (50%) of Participants referred to Contractor and enrolled shall be placed in unsubsidized employment upon Job Search and Job Readiness Assistance completion.

70%

Met

49%1

Not Met

44%2

Not Met

 

1FY 2023-24 Outcome not met due to participants’ lack of follow through and expectation of wage attainment in available job opportunities. Due to wage attainment in entry level employment, participants failed to accept available job offers and became unresponsive after reaching their planned end date.

 

2FY 2024-25 Outcome not met due to participants lack of follow through with job leads provided to secure employment. The participants were also found to not be committed to meeting all the requirements of the program which resulted in missing employment opportunities. SSA is currently working with Equus on updating the delivery method of the Job Search and Job Readiness Assistance activity to a more engaging hybrid in-person and virtual format. SSA is also working with staff to ensure they are properly preparing participants for employment by removing barriers to employment such as supportive services, transportation, and childcare.

 

SC #3: Subsidized Employment/Vocational Training by Equus from July 1, 2022, through January 31, 2025:

 

Outcome Objectives

Outcome Results

 

FY

2022-23

FY

2023-24

FY

2024-25

Public Subsidized Employment Program (PSEP):

Seventy-five percent (75%) of enrolled Participants shall be placed in employer worksites.

57%1

Not Met

82%

Met

76%

Met

 

Thirty percent (30%) of total placements shall be placed in public or non-profit sector worksites.

21%2

Not Met

33%

Met

25%6

Not Met


 

Sixty percent (60%) of Participants will obtain unsubsidized employment within sixty (60) days of completing PSEP placement. Contractor and Administrator may mutually agree to extend this time frame if there is documentation of pending employment due to the hiring process.

98%

Met

70%

Met

70%

Met

Work Experience (WEX):

Seventy-five percent (75%) of enrolled Participants shall be placed in worksites.

52%3

Not Met

83%

Met

82%

Met

Eighty percent (80%) of exiting Participants will obtain unsubsidized employment within thirty (30) days of completing WEX placement.

100%

Met

66%4

Not Met

61%7

Not Met

Vocational Training (VTR)

Seventy-five percent (75%) of enrolled Participants shall be placed in a training program.

82%

Met

93%

Met

91%

Met

Sixty percent (60%) of Participants will obtain unsubsidized employment or subsidized employment within thirty (30) days of completing VTR program. Contractor and Administrator may mutually agree to extend to sixty (60) days when certification is delayed or pending employment due to hiring process.

86%

Met

36%5

Not Met

47%8

Not Met

 

1FY 2022-23 Outcome not met due to high number of participants unresponsive to outreach and engagement efforts and not open to positions with wage rates at less than $20 per hour. In addition, this was a new contract for provider with the added focus of onboarding the new program and staff.

 

2FY 2022-23 Outcome not met due to low participant interest in taking entry level positions in public sector due to wage rates starting under $20 per hour. In addition, this was a new contract for provider with the added focus of onboarding the new program and staff.

 

3FY 2022-23 Outcome not met due to low referrals in the program. As this was a new contract for the provider, performance in this area improved gradually, and many who were not placed gained unsubsidized employment.

 

4FY 2023-24 Due to budget uncertainty program was suspended from June 1, 2024, to July 22, 2024, contributing to shortened periods of subsidized employment, impacts with partnered employers and higher number of participants ending the program at the same time seeking unsubsidized employment.

 

5FY 2023-24 Outcome not met due to participants becoming exempt during job search phase of the activity or facing additional barriers immediately following the VTR completion.


 

 

6FY 2024-25 Limited placements this fiscal year in Public or Non-Profit Sectors due to referrals and placements being suspended from June 1, 2024, to July 22, 2024.  Due to the suspension of referrals, there was a lack of participants who met the qualifications for limited available positions at non-profit or public worksites. SSA is working with Equus to assist with developing job placement opportunities at county agencies/departments that meet the requirements for the participants.

 

7FY 2024-25 Due to budget uncertainty, program was suspended from June 1, 2024, to July 22, 2024, contributing to a limited number of participants in the job search phase of the activity. There were also several participants who had attendance issues and were returned to a more appropriate activity prior to completing WEX. SSA is working with Equus and staff to address barriers to obtaining employment.

 

8FY 2024-25 Due to budget uncertainty, the subsidized employment program was suspended from June 1, 2024, to July 22, 2024, contributing to a limited number of opportunities for participants to be placed in a subsidized employment activity and temporarily limiting contractor to unsubsidized employment placements only. SSA is working with Equus and staff to address barriers to obtaining employment.

 

SSA now requests the Board’s approval of Amendment Two to the ES and SE/VTR Services Contracts with Equus for IJS. SSA is also requesting the Board’s approval for a 10 percent contingency cost increase in the event of an increased in need for these services. Prior to contract expiration, SSA plans to issue a solicitation to continue services.

 

The Contractor’s performance has been deemed satisfactory. SSA has verified there are no concerns that must be addressed with respect to Contractor’s ownership/name, litigation status or conflicts with County interests.

 

These Contracts do not currently include subcontractors or pass through other providers. See Attachments C and D for Contract Summary Form.

 

These Contracts, due to the nature of the services, could require the addition of subcontractors. To add subcontractor(s) to the Contract, the contractor must seek express consent from SSA. Should the addition of a subcontractor affect the scope of work and/or contract amount, SSA will bring the item back to the Board for approval. In the past, subcontractor(s) have not been used for these contracts.

 

License Agreement

 

Equus will provide the required services at the County's SSA offices located at 3320 E. La Palma Avenue, Anaheim; 23330 Moulton Parkway, Laguna Hills; and 1928 S. Grand Avenue, Santa Ana under License Agreements with the County.  To deliver the required services pursuant to the Service Contract, rent-free License Amendments with Equus will be executed under delegated authority by CEO Real Estate Services for two years to coincide with Amendment Two to the Contracts with Equus. The License Agreements allow Equus staff rent-free use of designated office space within County SSA's offices. Additional terms and conditions of the License Amendments are included in the attached License Summary (Attachment E).

 

 


 

 

FINANCIAL IMPACT:

 

Appropriations for this Contract will be included in Budget Control 063, Social Services Agency FY 2025-26 Budget and will be included in the budgeting process for future years.

 

Contingency of Funds

The proposed Contract includes provisions that the Contract is contingent upon the availability of funds and inclusion of sufficient funds in the budget approved by the Board for each fiscal year the Contract remains in effect or operation. In the event such funding is terminated or reduced, the County may terminate the Contract, reduce the County’s maximum obligation or modify the Contract, without penalty.

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A – Amendment Two to Contract WKW0722-A2 with Arbor E&T, LLC DBA Equus Workforce Solutions
Attachment B – Amendment Two to Contract WDM0922-A2 with Arbor E&T, LLC DBA Equus Workforce Solutions
Attachment C – Contract Summary Form – WKW0722-A2
Attachment D – Contract Summary Form – WDM0922-A2
Attachment E – License Summary (Arbor E&T, LLC DBA Equus Workforce Solutions)
Attachment F – Amendment One to Contract WKW0722-A1 with Arbor E&T, LLC DBA Equus Workforce Solutions
Attachment G – Amendment One to Contract WDM0922-A1 with Arbor E&T, LLC DBA Equus Workforce Solutions