Agenda Item AGENDA STAFF REPORT ASR Control 25-000980
MEETING DATE:	04/14/26
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	County Executive Office (Approved)
Department contact person(s):	Kimberly Engelby (714) 834-3530
	Maria Agrusa (714) 834-6889

Subject: Approve Contract Amendments under Orange County Contract Cost Reduction Program

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: See Financial Impact Section

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: See Financial Impact Section	County Audit in last 3 years: N/A
Levine Act Review Completed: Yes

Prior Board Action: 4/8/2025 #S26D, 1/28/2025 #29

RECOMMENDED ACTION(S):

Approve and authorize the County Procurement Officer or Deputized designee to execute contract amendments for Contracts listed in Attachment B, under the Orange County Contract Cost Reduction Program.

Approve and authorize the County Procurement Officer or Deputized designee to execute the attached Amendment Three – Participating Amendment (Attachment C) with Public Consulting Group LLC for Supplemental Security Income, State Supplemental Payments, and Social Security Disability Insurance Client Advocacy Services, to extend the Agreement under the Orange County Contract Cost Reduction Program, effective July 1, 2026, through June 30, 2027, with a maximum obligation of $297,000, for a revised cumulative total of $1,641,000, for the term of July 1, 2021, through June 30, 2027.

SUMMARY:

Approval to execute the Contracts listed in Attachment B, and Amendment Three – Participating Amendment (Attachment C) and, under the Orange County Contract Cost Reduction Program will support the County of Orange's cost-savings initiatives and ensure transparency and standardization across all departments for this program.

BACKGROUND INFORMATION:

As local governments throughout the State of California are facing difficult economic times, innovative ideas to reduce spending and improve efficiency are critical. The County of Orange (County) is experiencing various challenges including declining revenues and state and federal budget uncertainty. As such, proactive measures are necessary to assist in managing these challenges.

On January 28, 2025, the County Executive Office/County Procurement Office (CEO/CPO) was directed by Supervisor Wagner to establish and implement the Orange County Contract Cost Reduction Program (Program), offering a one or two-year contract extension for County suppliers who are willing to offer a 10 percent or 15 percent invoice reduction. The Program includes communications to the suppliers, informing and inviting participation in the Program, and collaborating with suppliers and County departments to amend contracts, reflecting the extended term and cost reduction. This effort is consistent with cost-saving initiatives the County is currently looking for, while providing some level of stability for the County and its suppliers beyond the next fiscal year.

On April 8, 2025, the Board of Supervisors (Board) approved the Program and Addendum "A" to the Contract Policy Manual thus allowing the implementation of applicable policies and procedures for the Program (the approved Program and approved agreement template is provided here as Attachment A for reference). Recommended Action #1 now seeks Board approval of the Program's Additional Participating Service Contracts (Attachment B), which exceeds the $200,000 annual threshold, as required pursuant to the Board's approval of the Program and Section A(5) of the approved Program.

Recommended Action #1 above seeks Board approval of the Program's Additional Participating Contracts (Attachment B) pursuant to the approved agreement template, which some exceed the $200,000 annual threshold, as required pursuant to the Board's approval of the Program and Section A(5) of the approved Program.

Under Recommended Action #2, Amendment Three (Attachment C) is issued to extend the contract as part of the Cost Reduction Program and to modify various contract provisions, including modifications to the Insurance provision, in addition to adopting the County’s Cost Reduction Program terms and conditions. Specifically, the County Executive office Risk Management (RM) has agreed to accept Public Consulting Group LLC’s (PCG) Claims-Made Sexual Misconduct Liability (SML) Insurance in lieu of Per Occurrence SML Insurance coverage. PCG will be required to maintain this insurance for at least five (5) years after expiration or earlier termination of Contract services. RM has approved waiver of the requirement of owned auto for PCG’s Automobile liability coverage. RM has also accepted PCG’s Network Security and Privacy Liability policy, which includes a self-insured retention deductible. See Attachment D for Risk Assessment or Modification of Insurance Terms Forms.

CEO/CPO now requests the Board’s approval to execute the attached Amendment Three (Attachment C), to extend the agreement under the Orange County Contract Cost Reduction Program, effective July 1, 2026, through June 30, 2027, with a maximum obligation of $297,000, for a revised cumulative total of $1,641,000, for the term of July 1, 2021, through June 30, 2027.

FINANCIAL IMPACT:

Only contracts on their last term as of April 8, 2025, expiring up to December 31, 2026, are eligible for this Program. Anticipated reductions in the costs for contracted goods and/or services will be realized upon Board approval, through December 2028 as applicable. To date the County has executed 98 amendments for the Cost Reduction Program, with a potential cost savings of $4,492,644.84. The County Procurement Office will return to the Board to provide status, participation, and the amount and type of cost-savings realized.

Contingency of Funds

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

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A – Addendum "A" to 2024 Revised Contract Policy Manual – Orange County Contract Cost Reduction Program (approved by the Orange County Board of Supervisors on April 8, 2025)
Attachment B – Orange County Contract Cost Reduction Program – Additional Participating Contracts (April 14, 2026)
Attachment C – Orange County Contract Cost Reduction Program – Amendment Three – Participating Amendment to Contract AMR0121 with Public Consulting Group LLC
Attachment D - Risk Assessment or Modification of Insurance Terms Forms