Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  25-000039

 

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 Contract for Random Drug Testing Services

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

          Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost:   $320,000

Annual Cost: FY 2025-26 $1,280,000

 

 

 

    Staffing Impact:

No

# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:     See Financial Impact Section

County Audit in last 3 years: No

   Levine Act Review Completed: Yes

 

    Prior Board Action:         5/21/2024 #40, 3/9/2021 #24

 

RECOMMENDED ACTION(S):

 

 

1.

Authorize the County Procurement Officer or Deputized designee to execute Contract with Redwood Toxicology Laboratory, Inc., for Random Drug Testing Services, effective April 1, 2025, through June 30, 2026, in an amount not to exceed $1,600,000.

 

2.

 

Pursuant to Contract Policy Manual Section 3.4-114, 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 Contract amount for the first year of the Contract, for the entire term of the Contract, including renewals, and within the scope of work set forth in the Contract. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.

 

 

 

 

SUMMARY:

 

Approval of the Contract with Redwood Toxicology Laboratory, Inc., will allow the County to continue to provide Random Drug Testing Services for clients who need to demonstrate sobriety compliance as part of their court-ordered family reunification or family maintenance case plan.

 

 

BACKGROUND INFORMATION:

 

On March 9, 2021, the Social Services Agency (SSA) obtained the Board of Supervisors’ (Board) approval of the Master Agreement for drug testing services in an amount not to exceed $4.8 million, for the term of July 1, 2021, through June 30, 2024, renewable for two additional one-year terms, and authorized SSA to execute the Subordinate Agreements with qualified providers. The Master Agreement has three service components (Patch Testing Services, Random Drug Testing Services and Secure Continuous Remote Alcohol Monitoring Continuous Alcohol Monitoring Testing (SCRAM CAM)) each with different contractors. This Agenda Staff Report covers only Random Drug Testing Services.

 

On May 21, 2024, SSA obtained the Board’s approval of Amendment One to the Master Agreement for drug testing services in an amount not to exceed $8 million, for the term of July 1, 2021, through June 30, 2026, and authorized SSA to execute Subordinate Agreements with qualified providers. Four providers agreed to provide services through the full renewal period, while Avertest, LLC DBA Averhealth (Avertest) only agreed to a six-month term (ending December 31, 2024) while the parties negotiated the remainder of the renewal period ending June 30, 2026.

 

Due to Avertest’s difficulty in meeting Random Drug Testing Services outcome objectives and adhering to staffing, training, and reporting requirements, at the end of the amended term SSA instead opted to execute a Minnesota Multistate Contracting Alliance for Pharmacy (MMCAP) stand-alone, cooperative contract with Redwood Toxicology Laboratory, Inc. (Redwood) for Random Drug Testing Services, for the term of January 1, 2025, through March 31, 2025. The Contract includes standardized pricing set by the MMCAP cooperative contract. Redwood currently provides drug testing services for Orange County Probation and is in good standing. The proposed Contract allows SSA to satisfy court-ordered family reunification or family maintenance case plan requirements without a lapse in services.

 

Random Drug Testing Services consist of randomly selecting clients to report for urinalysis drug testing up to two times per week, and/or same day on-demand testing as ordered by the Orange County Juvenile Court or requested by SSA for clients that appear to be under the influence of drugs or alcohol. Random Drug Testing detects alcohol and illicit substances in urine specimens submitted for drug analysis.

 

Outcome Objectives for Random Drug Testing Services for the term of July 1, 2021, through December 31, 2024, were as follows:

 

Clients who fail to report for testing shall be identified with 100% accuracy within 24 hours.

100% of clients providing urine specimens at in-county collection sites shall be observed by a same gender identity collector.

 

The cooperative contract with Redwood, from January 1, 2025, through March 31, 2025, as well as the proposed Contract, from April 1, 2025, through June 30, 2026, will maintain the same Outcome Objectives.

 

SSA now requests the Board’s approval of the Contract with Redwood, for Random Drug Testing Services, effective April 1, 2025, through June 30, 2026, in an amount not to exceed $1.6 million. The proposed Contract updates hours and locations of service provision and extends services through the full renewal period in line with the other drug testing services providers. SSA is also requesting a 10 percent contingency cost increase in the event there is an increased need for these services. Prior to contract expiration, SSA plans to issue a solicitation to continue services.

 

SSA has verified there are no concerns that must be addressed with respect to the Contractor’s ownership/name, litigation status or conflict with County interests. The Orange County Preference Policy is not applicable to this cooperative Contract. Department staff have conducted due diligence on the contractor. Reference checks were satisfactory and completed with the Wisconsin Department of Corrections, Specialized Treatment Recovery Services, and Monterey County Juvenile Hall regarding similar projects.

 

The Contract has insurance provisions that differ from the standard requirements and County Executive Office/Risk Management has deemed these provisions acceptable. Please see Attachment C for Risk Assessment of Insurance Terms. 

 

This Contract is being presented for Board approval less than 30 days before the effective date due to delays in negotiations.

 

Subcontracts

The Random Drug Testing Services Contract includes subcontractors. Subcontractors are utilized to provide greater accessibility for these services. See Attachment B Contract Summary Form for information regarding subcontractors.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for this Contract are included in Budget Control 063, Social Services Agency FY 2024-25 Budget, and will be included in the budget process for future years.

 

The Contract is funded 25 percent federal, 73 percent state and two percent County. Federal and state dollars comprised Child Welfare Services and CalWORKs Family Stabilization. County General Funds will be used towards the required match to access federal and state funding.

 

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 remain 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 – Contract MA 063-25011169 with Redwood Toxicology Laboratory, Inc.
Attachment B – Contract Summary Form
Attachment C – Risk Assessment of Insurance Terms