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Agenda Item
ASR
Control 19-000992 |
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MEETING DATE: |
09/10/19 |
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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): |
Rob Richardson (714) 834-3481 |
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Georgetta Vlad (714) 567-7312 |
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Subject: Amendment to the 2019
Contract Policy Manual
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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: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 8/13/2019
#19 & #23, 6/26/2018 #80 |
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RECOMMENDED ACTION(S):
Approve Amendment to the 2019 Contract Policy Manual revising Section 3.3-102(1)(b) and authorize the County Procurement Officer to implement the revision.
SUMMARY:
Approval of the Amendment to the 2019 Contract Policy Manual revising Section 3.3-102(1)(b) will increase the multi-year contract dollar threshold for Board approval from $500,000 to $1,000,000 to correspond with the previously approved increase in the yearly contract dollar threshold.
BACKGROUND INFORMATION:
On June 26, 2018, the Board of Supervisors approved the 2018 Contract Policy Manual revisions. The Board of Supervisors recently adopted the 2019 Contract Policy Manual (CPM) on August 13, 2019, with an effective date of October 1, 2019. At that time, the Board gave policy direction and approval for the County Procurement Officer to increase the annual dollar threshold for Board approval of service contracts to the maximum annual dollar threshold permitted by Government Code Section 25502.5 (i.e., increase the annual dollar threshold from $100,000 to $200,000). The Board also considered the first reading of an ordinance amending Section 1-4-13 of the Orange County Codified Ordinances to reflect the approved increase of the annual dollar threshold for Board approval of service contracts. Given the approved increase from $100,000 to $200,000, there should be a corresponding increase for the dollar threshold for multi-year service contracts (Section 3.3-102(1)(b) in the CPM). Section 3.3-102(1)(b) should be increased from $500,000 to $1,000,000 to reflect the needed increase in the threshold amount for a multi-year contract.
The current Section 3.3-102(1)(b) in the CPM reads:
Multi-Year Contracts Exceeding $500,000 – Approval by the Board of Supervisors is required for all service contracts where the total contract value exceeds or is anticipated to exceed $500,000 when all contract years are taken into consideration.
The requested amendment to Section 3.3-102(1)(b) in the CPM reads:
Multi-Year Contracts Exceeding $1,000,000 – Approval by the Board of Supervisors is required for all service contracts where the total contract value exceeds or is anticipated to exceed $1,000,000 when all contract years are taken into consideration.
The Orange County Auditor-Controller Internal Audit Department (A-C IAD) unit performed an Internal Control Audit (Audit No. 1521) of County Executive Office/County Procurement Office Processes in 2017. With respect to the revision of the 2012 Contract Policy Manual, the A-C IAD found that revisions of the 2012 CPM were generally properly planned, coordinated with appropriate parties, and approved. Business strengths were noted and A-C IAD “did not identify any areas where we believe CPM revision processes should be enhanced”.
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Approved 2019 Contract Policy Manual