Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  19-000930

 

MEETING DATE:

09/24/19

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Probation   (Approved)

Department contact person(s):

Scott Chandler (714) 569-2166 

 

 

Sue DeLacy (714) 645-7004

 

 

Subject:  Contract Renewal with Redwood Toxicology Laboratory, Inc.

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost: $1,125,000

Annual Cost: FY 2020-21 $375,000

 

 

 

    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

 

 

    Prior Board Action: 4/24/2018 #42

 

RECOMMENDED ACTION(S):

 

 

1.

Authorize the Chief Probation Officer or designee to execute Amendment Three to renew contract with Redwood Toxicology Laboratory, Inc. for Drug and Alcohol Screening Products and Services for the period of October 1, 2019, through September 30, 2020, in an amount not to exceed $1,500,000, for a revised cumulative contract total amount not to exceed $3,000,000.

 

2.

Pursuant to Contract Policy Manual Section 3.3-113, authorize Chief Probation Officer or 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 renewal with Redwood Toxicology Laboratory, Inc. will allow the Orange County Probation Department to continue utilizing enhanced methods for random drug and alcohol testing services to encourage offenders to abstain from drug/alcohol use.

 

 

 

BACKGROUND INFORMATION:

 

The Orange County Probation Department (Probation) supervises adult and juvenile offenders to ensure their compliance with orders of the Court.  Probation assists offenders in identifying potential underlying factors that may have contributed to their committed offenses, such as substance use disorders. Supervision of offenders may require drug testing to monitor any presence of prohibited substances in their system and accompanying behavior that violate the terms and conditions of their probation.

 

On April 24, 2018, the Board of Supervisors (Board) approved a contract between Probation and Redwood Toxicology Laboratory, Inc. (Redwood) for Drug and Alcohol Screening Products and Services, which included an enhanced method for random and unpredictable drug/alcohol testing. The initial contract term approved by the Board was for a five-month period, commencing on May 1, 2018, through September 30, 2018, in an amount not to exceed $500,000, and also included a one-year contract renewal, effective October 1, 2018, through September 30, 2019, in an amount not to exceed $1 million, for a cumulative contract total amount not to exceed $1.5 million. The initial contract approved by the Board was issued against the pricing, terms and conditions of the Minnesota Multistate Alliance for Pharmacy (MMCAP) cooperative contract, which was approved by the County Procurement Office.

 

The contract provides several options for drug/alcohol testing. Probation has the option to order supplies and devices for on-site drug/alcohol testing of oral fluids, which provides an immediate presumptive result. If a urinalysis test is required, Probation can collect the specimen until Redwood picks up the specimen for laboratory testing. Additionally, Probation has the option to utilize the Random Drug Testing (RDT) Program Management. With this program, Redwood manages the notification of testing to the offender, the specimen collection, the testing and reporting of results to Probation. Probation establishes the frequency of testing and the offender is required to call in daily to see if they are scheduled. When selected, the offender is provided instructions on how and where to report.  Redwood’s system tracks if the offender called in, if the offender was selected and if they showed up for testing.  Redwood’s contract provides for multiple locations for specimen collection within Orange County, with extended hours to address potential transportation challenges offenders may encounter, as well as accommodate for work/school schedules offenders may have. The RDT method is only used for the adult offenders; the juvenile offenders will continue to be tested on site and by Probation.

 

The chart below provides the positive tests for individuals tested on site versus those tested utilizing the RDT method for the period of January 1, 2019, through August 8, 2019; results demonstrate that the positive rates when utilizing the RDT method is much lower than on site testing – 2 percent vs. 38.8 percent.

 

Due to the uncertainty of when the test will occur, offenders are likely to abstain from drug/alcohol use, which reduces their risk of reoffending. Probation will return to the Board with a contract for the continuation of services and will be able to provide outcomes of the percentage of offenders that reoffended in the next Agenda Staff Report, when an appropriate follow-up period within one year from the initial test date has passed.

 

 

Onsite Drug Testing

Random Drug Testing (RDT) Program

Participants

Total Number of Tests

Percentage of Positive Results

Total Number of Tests

Percentage of Positive Results

Adult

22756

38.8%

13828

2.0%

Juvenile

10303

42.2%

Not Participating in RDT

 

The MMCAP cooperative contract with Redwood was extended through September 30, 2020, to allow time for a Request for Proposal process; therefore, Probation is seeking the Board authorize a contract renewal with Redwood, for the period of October 1, 2019, through September 30, 2020, in an amount not to exceed $1.5 million for a revised cumulative contract total amount not to exceed $3 million. The cost for RDT Program Management is a flat fee of $16 per offender for the collection of specimen, which is in addition to the laboratory services of approximately $4.94 per test. The utilization of the contract will be dependent upon the number of offenders ordered for RDT and the frequency of testing.  Due to the variance in utilization of services, Probation is requesting a maximum obligation agreement that accommodates fluctuation. The total expenditures paid for the period of October 1, 2018, through June 30, 2019, against the Redwood contract were approximately $714,000. Probation has not full implemented the use of the RDT program and will have a better estimate of contract usage after the fully implementation period. Furthermore, Probation is requesting the Board approve a 10 percent contingency as allowed by the Contract Policy Manual Section 3.3-113.

 

Redwood’s performance has been confirmed as satisfactory. Probation has verified there are no concerns that must be addressed with respect to Redwood’s ownership/name, litigation status or conflicts with County interests.

 

This contract was not filed 30 days prior to the expiration of current contract due to the additional time needed to ensure proper implementation of a quality control and assurance process.

 

This contract includes a subcontractor. See Attachment B for information regarding subcontractor and Contract Summary Form.  Due to the nature of the services required by Probation, this contract could require additional subcontractors.  In order to add subcontractor(s) to the contractor, Redwood must seek express consent from the department.  Should the addition of subcontractor impact the scope of work and/or contract amount, Probation will bring the item back to the Board for approval.

 

 

 

 

FINANCIAL IMPACT:

 

Appropriations for the Contract are included in the FY 2019-20 Budget for Budget Control 057, Probation, and will be included in the budgeting process for future years. The services provided under this proposed contract are funded by: General Fund: 56 percent, State: 40 percent and Other: 4 percent. State funding is comprised of 2011 Public Safety Realignment and SB 678. Other funding sources are comprised of fines and fees.

 

 

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A - Amendment Three to Contract MA-057-18011268
Attachment B - Contract Summary Form
Attachment C - Redlined Contract MA-057-18011268