Agenda Item AGENDA STAFF REPORT ASR Control 24-000133
MEETING DATE:	05/07/24
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	Probation (Approved)
Department contact person(s):	Daniel Hernandez (714) 645-7001
	Jessica Johnson (714) 645-7004

Subject: Contract with Justice Benefits, Inc. for Title IV-E Administrative Claim Service

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Consent Calendar

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: FY 2024-25 $250,000
FY 2025-26 $250,000
FY 2026-27 $250,000

Staffing Impact:

No

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: See Financial Impact Section

Funding Source: GF: 100%	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 4/25/2023 #27, 4/12/2022 #33, 6/25/2019 #16, 5/13/2014 #34

RECOMMENDED ACTION(S):

1.

Authorize the County Procurement Officer or Deputized designee to execute a three-year contract with Justice Benefits, Inc. for Technical Assistance in Title IV-E Administrative Claim Services, effective July 1, 2024, through June 30, 2027, in an amount not to exceed $750,000, renewable for two additional, one-year terms.

2.

Pursuant to Contract Policy Manual Section 3.3-113, 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.

SUMMARY:

Authorization of the Contract with Justice Benefits, Inc. will provide the Orange County Probation Department with Technical Assistance in Title IV-E Administrative Claiming Services to ensure compliance with federal reimbursement guidelines and to maximize funding for Probation.

BACKGROUND INFORMATION:

Section 472 of the Social Security Act (commonly known as “Title IV-E”) is a federally funded program that allows probation departments to seek reimbursement for activities associated with services to youth at imminent risk for foster care placement. Probation departments must use a federally approved time study to claim Title IV-E federal funds. Prior to 2014, Orange County Probation Department (Probation) used a labor-intensive manual time study which was prone to human error, such as inaccuracies in recording time or calculations leading to incorrect claiming, audit issues, and resulted in rejected claims and penalties for over claiming.

On March 13, 2014, the Board approved Probation to contract with Justice Benefits, Inc. (JBI) for Title IV-E Administrative Claim Services which includes time studies, claim preparation and staff training. JBI uses an automated federally approved random moment sampling system which saves time, ensures accuracy, and reduces audit liability. Contracting for these services allows probation officers to focus on more critical tasks related to youth and community supervision. Probation submits a quarterly claim to the Orange County Social Services Agency (SSA) for pre-placement activities associated with the eligible youth. SSA submits the claim to the California Department of Social Services who then submits the final Title IV-E claim to the Federal Government.

The following is the past County of Orange Board of Supervisors (Board) actions related to Contract for Technical Assistance in Title IV-E, Administrative Claim Services:

Board Date	Contract Number	Contract Amount	Contract Term	Comments
4/25/2023	MA-057-19011459	$1,108,530	7/01/2023 to 6/30/2024	Renewal Term approved by the Board.
4/12/2022	MA-057-19011459	$858,530	7/01/2022 to 6/30/2023	Increase current term and renew term approved by the Board.
6/25/2019	MA-057-19011459	$603,530	7/01/2019 to 6/30/2022	New Contract approved by the Board.
5/13/2014	MA-057-14011808	$1,024,500	5/13/2014 to 6/30/2019	Contract approved by the Board for a five-year term.

Probation issued a Request for Proposals (RFP) on December 1, 2023. The RFP closed on January 9, 2024, and Probation received a single proposal from the following contractor: Justice Benefits, Inc. (JBI).

Per CPM Section 4.3 110, and provided all solicitation requirements have been met, the DPA may waive the standard evaluation process and allow project manager (PM) to review the proposal to determine whether to proceed with negotiations and contract award.

After meeting with the PM to review the proposal, it was determined the proposer meets all requirements and received consensus to proceed with contract negotiations and award. CPO reviewed the request and supported the department's decision to waive the interview process. Award was posted on February 14, 2024. No protests were received.

JBI is Probation’s current provider and has over 23 years of experience in maximizing federal revenue for state and local agencies, with a specialty in Title IV-E administrative claiming for juvenile justice departments. Through JBI’s years of experience working on federal and state programs, JBI has developed an expertise in maximizing federal revenue for state and local agencies, with a specialty in Title IV-E administrative claiming for juvenile justice departments. JBI uses Random Moment Sampling (RMS), a proprietary time keeping system, that has been federally approved. JBI's RMS is a federally approved methodology to document and identify time spent on Title IV-E activities. To ensure eligible expenses are accurately and consistently recorded, JBI provides training and support to Probation staff performing Title IV-E eligible activities. This data is monitored daily for coding accuracy and statistical validity; time study results are compiled quarterly and submitted for processing.

The chart below provides a breakdown of the calculation of the contract monetary limit, which includes the administrative fixed annual fee, and an estimate of the revenue JBI anticipates Probation will receive. The revenue-based fee below (2.5%) is only an estimate for the purposes of establishing a monetary limit in the contract:

Contract Year	Estimated Revenue	Fixed Annual Fee ($40,000 per Quarter)	Revenue- Based Fee (2.5 percent) Based on Estimated Revenue
1	$2.060,000	$160,000	$51,500
2	$1,980,000	$160,000	$49,500
3	$1,910,000	$160,000	$47,750
Total	$5,950,000	$480,000	$148,750

Based on the revenue received to date and the projected revenue which is dependent upon eligible services provided to fluctuating population and factors such as operating expenses and the number of participants that participate in the time study, the requested cumulative total of $750,000 covers unforeseen expenses and/or additional costs incurred during the contract term.

Probation is now seeking Board authorization to execute a three-year contract with JBI for Administgrative Claim Services, effective July 1, 2024 through June 30, 2027, in an amount of $250,000 per year, for a cumulative amount not to exceed of $750,000. This Contract is renewable for two additional, one-year periods at $250,000 per year.

The Contractor's performance has been confirmed as more than satisfactory. Probation has verified there are no concerns that must be addressed with respect to JBI’s ownership/name, litigation status or conflicts with County interests. The Orange County Preference Policy does not apply since there was a single proposal received.

The contract does not currently include subcontractors or pass through to other providers. See Attachment B for the Contract Summary Form.

FINANCIAL IMPACT:

Appropriations for this Contract are included in the FY 2024-25 Budget and will be included in the budgeting process for future years. Services provided under this Contract result in federal revenue received under Title IV-E.

The proposed contract with JBI contains language that will permit immediate reduction of services or termination of the contract due to fiscal non-appropriation, without penalty.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Contract MA-057-24010374
Attachment B - Contract Summary