Agenda Item   



                                                                                                                        ASR Control  23-000469




legal entity taking action:

Board of Supervisors

board of supervisors district(s):

2, 4, 5

SUBMITTING Agency/Department:

Social Services Agency   (Approved)

Department contact person(s):

An Tran (714) 541-7708 



Laura Turtzer (714) 541-7734



Subject:  Approve Contract for Housing Support Program


      ceo CONCUR

County Counsel Review

Clerk of the Board


Approved Agreement to Form




3 Votes Board Majority




    Budgeted: N/A

Current Year Cost:   N/A

Annual Cost: FY 2023-24 $5,341,315
FY 2024-25 $5,341,315




    Staffing Impact:


# of Positions:            

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:     FED: 65% (TANF), State: 35% (CalWORKs Housing Support Program)

County Audit in last 3 years: No

   Levine Act Review Completed: Yes


    Prior Board Action:         12/20/2022 #23, 5/24/2022 #85, 4/13/2021 #38, 6/23/2020 #24






Authorize the County Procurement Officer or Deputized designee to execute Contract with Mercy House Living Centers for Housing Support Program services, effective July 1, 2023, through June 30, 2025, in an amount not to exceed $10,682,630, renewable for one additional three-year term.



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.



Authorize the County Procurement Officer or Deputized designee to make future non-material changes to the Contract within the scope of work that do not increase the maximum contractual funding obligation.








Approval of the Contract with Mercy House Living Centers will provide eligible families with housing-related wraparound supportive services and financial assistance to secure permanent housing or prevent homelessness.







The Social Services Agency (SSA) is requesting the Board of Supervisors’ (Board) approval of the Housing Support Program (HSP) Contract and approval for a 10 percent contingency cost increase in the event there is an increased need for these services.


The goal of HSP is to help California Work Opportunity and Responsibility to Kids (CalWORKs) families experiencing homelessness or at risk of experiencing homelessness obtain permanent housing and receive wraparound support to ensure housing retention. HSP offers evidence-based housing interventions, such as a housing first approach in rapid-rehousing and supportive housing, and supportive services including housing identification, navigation, and rental and moving assistance. Case management services are also provided through coordination and participation with the local homeless Continuum of Care, Homeless Management Information System and Coordinated Entry System.


The table below details the prior Board actions for HSP.

Board Action

Board Date



Cumulative Total

Approve Agreement with 1736 Family Crisis Center (1736 FCC) for CalWORKs HSP Services


7/1/2020 - 6/30/2023



Approve First Amendment to the Agreement with 1736 FCC for CalWORKs HSP Services


7/1/2020 - 6/30/2023



Approve Second Amendment to the Agreement with 1736 FCC for CalWORKs HSP Services


7/1/2020 - 6/30/2023



Approve Third Amendment to the Agreement with 1736 FCC for CalWORKs HSP Services





*The Third Amendment shifted unused funds from prior years as permitted by the state and did not increase the cumulative total.


Request for Proposal (RFP)

On November 8, 2022, SSA released an RFP for Housing Support Services through the County’s Online Bidding System. 

For efficiency, SSA combined HSP, the Bringing Families Home Program and the Home Safe Program in a single RFP corresponding to distinct eligible client populations. The Bringing Families Home Program and Home Safe Program were brought to the Board for approval separately.

The Disabled Veterans Business Enterprise (DVBE) Preference policy was applicable and incorporated into this solicitation. No DVBE-qualified proposals were submitted. The Orange County Preference Policy was not applicable to this solicitation as federal funds are included.


SSA received three proposals for HSP by the deadline of December 19, 2022. The evaluation panel evaluated the proposals and recommended award of contract to Mercy House Living Centers. 



Points Awarded

Mercy House Living Centers


Illumination Foundation


1736 Family Crisis Center



SSA staff have conducted due diligence on the Contractor. Reference checks were satisfactory and completed with the City of Anaheim, City of Costa Mesa and City of Oxnard. SSA has verified there are no concerns that must be addressed with respect to the Contractor’s ownership/name, litigation status or conflicts with County interests.

A notice of Proposed Contract Award was posted to the County’s Online Bidding System on April 6, 2023. One protest was received from 1736 Family Crisis Center on April 12, 2023. The protest was concerning the proposed contract award, specifically the proposal scoring and evaluation process. On April 19, 2023, SSA issued a denial determination because the evaluation process for this RFP consisted of a thorough review of each proposal, which was evaluated against the requirements of the RFP, by a committee of five subject matter experts with knowledge and experience in working with the homeless population. On April 24, 2023, 1736 Family Crisis Center filed an appeal of SSA’s decision with the County Procurement Officer.  On May 5, 2023, the County Procurement Officer issued their final decision and denied the appeal, with no right to any administrative appeals of this decision. 



The proposed Contract will utilize similar outcome objectives as the prior contract. Outcome measurements have been revised to improve the tracking of Contractor performance.


The new outcome objectives are as follows:



90 percent of referred clients will be provided an approval or denial within 30 calendar days from the date the assessment is completed.



A minimum of 70 percent of clients approved for services will transition to permanent housing.



A minimum of 50 percent of clients will move into permanent housing within 120 calendar days of approval of services.



A minimum of 70 percent of clients will remain housed after one year from date of original move-in to permanent housing.



License Agreements


Mercy House Living Centers will provide HSP 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.  The License Agreements will be executed under delegated authority by County Executive Office Real Estate Services to coincide with the HSP contract with term ending June 30, 2025. The License Agreements allow Mercy House Living Centers staff rent-free use of designated office space within County SSA's offices in order to deliver the required services.  


Additional terms and conditions of the Licenses are included in the attached License Summaries (Attachment E).


This Contract does not currently include subcontractors or pass through to other providers. See Attachment C for Contract Summary Form.

This Contract, due to the nature of the services, could require the addition of subcontractors. In order to add subcontractor(s) to the Contract, the contractor must seek consent from SSA. Should the addition of a subcontractor impact the scope of work and/or the contract budget, SSA will bring the item back to the Board for approval. Subcontractors have not been used in the past for this contract.


Approval of the Contract will continue to support the County’s effort to build a responsive System of Care that meets the needs of families and individuals experiencing homelessness or at risk of homelessness who would benefit from evidence-based housing interventions and case management services to be stably housed. The Contract and operations of HSP follow the best practices, guiding principles and commitments of the Prevention, Outreach & Supportive Services and Housing Pillars as described by the Homeless Service System Pillars Report which was created by the Commission to End Homelessness and accepted by the Board.






Appropriations for this Contract will be included in the Budget Control 063, Social Services Agency FY 2023-24 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.












Office of Care Coordination





Attachment A – Contract MA-063-23010974 with Mercy House Living Centers for Housing Support Program
Attachment B – Redline to Contract MA-063-23010974 with Mercy House Living Centers for Housing Support Program
Attachment C – Contract Summary Form
Attachment D – Scoring Sheets with RFP Questions
Attachment E – License Summaries