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Agenda Item
ASR
Control 21-000933 |
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MEETING DATE: |
12/07/21 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
County Executive Office (Approved) |
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Department contact
person(s): |
Michael Alio 714-285-5510 |
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Gary Stopforth 714-285-5515 |
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Subject: Risk and Claims Management
Information System Solution Contract
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Agreement to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: Yes |
Current Year Cost:
$81,452 |
Annual Cost:
FY 2022-23 $110,164 |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
Yes |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 10/16/2018
#28, 12/10/2013 #67 |
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RECOMMENDED ACTION(S):
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1. |
Authorize the County Procurement Officer or authorized Deputy to execute Contract with Riskonnect, Inc. for Risk and Claims Management Information System Solutions, effective December 10, 2021, through December 9, 2026, in an amount not to exceed $571,070, renewable for one additional two-year term. |
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2. |
Pursuant to Contract Policy Manual Section 3.3-113, authorize the County Procurement Office or authorized Deputy 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:
Approving the contract with Riskonnect, Inc. will allow County Executive Office/Risk Management to manage the County's Liability Self-Insurance Program and improve operational efficiencies through automation, system designed workflows and business rules, as well as enhanced reporting capabilities.
BACKGROUND INFORMATION:
In 2011, the County performed an audit of County Executive Office (CEO)/Risk Management. The audit was completed in January 2012 and one of the key recommendations was for CEO/Risk Management to “…pursue the development of a new “Liability Claims Information System” that will facilitate the collection, analysis and reporting of risk data for operational managers and policy makers."
As a result of this audit, in December 2012, the County Procurement Office (CPO) on behalf of CEO/Risk Management issued a Request for Proposals (RFP 017-725001-RR) for a Risk and Claims Management Information System (RCMIS) Solution. Riskonnect, Inc. (Riskonnect) was recommended as the most responsible, responsive bidder. Your Honorable Board of Supervisors (Board) approved the Contract with Riskonnect for RCMIS Solutions on December 10, 2013. On October 16, 2018, the Board approved Amendment 1 to extend the Contract for an additional two-year term. Amendment 3 was executed on December 4, 2020, to extend the Contract one additional year in accordance with Board Resolution 20-023.
Riskonnect's solution has been up and successfully implemented in the County since 2014. It took over six months of collaboration between Riskonnect Administrative and Information Technology (IT) personnel and County Administrative and IT personnel to develop the program as required and recommended by the County, including updating and modifying a fully customized database to oversee and monitor CEO/Risk Management duties and responsibilities.
County Departments are regularly provided with comprehensive and information reports regarding their loss activities and trends to aid in their loss prevention efforts through the Riskonnect solution. Departments are able to use this information to identify problem areas and high-cost claims and, if appropriate, implement operational changes in order to reduce both the frequency and severity of liability claims. The system also has enabled CEO/Risk Management to answer Public Records Act demands from the public, media and plaintiff attorneys more effectively.
While the original contract was awarded as a result of a competitive bid process as noted above, the system is now comprised of County-requested custom software configurations and workflows. Riskonnect is the developer of the original system and is the only vendor with the knowledge of the database structure, workflow engine and communication mechanisms between the database and the various applications within the program. Another vendor would be unfamiliar with the proprietary core software, custom configurations and the County of Orange business rules and processes developed during the last seven years, and would be ineffective at remediating system issues. Thus, only authorized Riskonnect employees may service the proprietary software or make changes to meet the County's evolving needs. As such, the proposed Contract is a sole source contract and a completed Sole Source Request Form is attached to this Agenda Staff Report. Please see Attachment B for Sole Source Request Form and Attachment F for Riskonnect's Affidavit Letter.
Contractor performance has been confirmed as at least satisfactory. CPO has verified that there are no concerns that must be addressed with respect to contractor’s ownership/name, litigation status or conflicts with County interests. The Orange County Preference Policy is not applicable to this contract award.
This Contract includes subcontractors. See Attachment C for information regarding subcontractors and Contract Summary Form. The Contract contains non-standard indemnity and limitation of liability provisions, which CEO/Risk Management believes are acceptable given the nature of the services and the Riskonnect delivery model. See Attachment D for the Risk Assessment Form.
CEO/Risk Management requests the Board approve the Contract for Risk and Claims Management Information System Solutions with Riskonnect, as referenced in the Recommended Actions. This Contract is submitted for Board approval less than 30 days prior to the start of the contract as the signed contract was not received from the vendor in time to file for previous Board meetings.
FINANCIAL IMPACT:
Appropriations for this Contract are included in the FY 2021-22 Budget and will be included in the budgeting process for future years for the Property & Casualty Risk ISF (Fund 294).
The proposed Contract includes a provision that states 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 or modify this Contract, without penalty.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Contract MA-017-22010011 for Risk and
Claims Management Information System Solutions with Riskonnect, Inc.
Attachment B - Sole Source Request Form
Attachment C - Contract Summary Form
Attachment D - Risk Assessment Form
Attachment E - Term Exceptions for SS Form MA-017-22010011
Attachment F - Riskonnect Affidavit Letter MA-017-22010011