TO: Board of Supervisors
FROM: Tracy Schulze, Auditor Controller
REPORT BY: Celeste Gonzalez, Management Analyst
SUBJECT: Approve and authorize Amendment No. 3 to Agreement No. 210126B and Agreement No. 240413B with MGT of America Consulting LLC
RECOMMENDATION
title
Approve and authorize Amendment No. 3 to Agreement No. 210126B with MGT of America Consulting LLC for SB90 claim services and Agreement No. 240413B with MGT of America Consulting LLC for A-87 Indirect Cost Plan subscription services. (Fiscal Impact: $8,900 Expense Reduction; Central Services; Budgeted; Discretionary)
body
BACKGROUND
Passed by the Legislature in 1972, SB90 states that if the Legislature or a state agency mandates that a local government provide a new or enhanced service, they must provide funding for the cost of providing the new or enhanced services. The State Controller's Office is tasked with paying claims when the State Legislature provides a budget allocation for that purpose.
The CFR Part 225 Cost Allocation Plan (Indirect Cost Plan) is used by the State and Federal governments as an acceptable methodology for billing indirect costs for funded services including road projects, health and human services allocations, grants and other programs.
MGT of America Consulting LLC is a highly qualified firm providing these specialized services. They work closely with many counties, the California State Association of Counties (CSAC) and the State Controller’s Office to ensure full reimbursement of eligible SB90 claims filed in a complete and timely manner in addition to preparing the Indirect Cost Plans for other jurisdictions. The County Executive Office and the Auditor-Controller track all SB90 claims filed with the State Controller’s Office and oversee the cost plan process. Although the State is not fully reimbursing SB90 at this time, the County has received payments for previous claims submitted and it's important to continue to submit claims for future payment. The County could lose out on significant revenue annually if SB90 claims or the Indirect Cost Plan are not prepared appropriately and timely.
In 2013, the County issued a Request for Proposals and selected MGT of America for the preparation of SB90 reimbursement claims and the Indirect Cost Plan. An agreement was executed by the Purchasing Agent effective July 1, 2013 through June 20, 2014 with the provision of a one-year automatic renewal. The original agreement was amended and modified carrying it through Fiscal Year 2018-2019, ending June 30, 2019.
Effective October 6, 2020, the County entered into Amendment No. 1 of Agreement No. 210126B, increasing the maximum compensation to $34,119 per fiscal year and extending the term through June 30, 2022. Approval of Amendment No. 1 increased the maximum amount in line with MGT’s rate increase, extend the term of the contract for one additional fiscal year, and ensure continuity of service provision for this fiscal year while staff initiate a Request for Proposals for Fiscal Year 2022-2023.
On June 21st, 2022 the Board of Supervisors approved Amendment No. 2 to Agreement No. 210126B with MGT of America Consulting LLC increasing the maximum amount by $1,681 for a new annual maximum amount of $35,800 for the term July 1, 2022 through June 30, 2023, with the option of two (2) automatic renewals, to ensure continuity of service provisions, for the preparation of SB 90 reimbursement claims and the annual Indirect Cost Allocation Plan.
Amendment No. 3 to Agreement No. 210126B reduces the maximum payment from $35,800 to $16,900 with a reduction in scope of work for OMB A-87 Cost Report Services. With a desire to develop the A-87 Indirect Cost Allocation Plan within the County of Napa, a related Agreement 240413B for subscription services will provide the Auditor-Controller’s Office with the necessary software to develop the Indirect Cost Allocation Plan in-house for $10,000 for a term of June 4,2024 to June 30, 2027. Without this software the County will continue to work with MGT of America to develop the A-87 Indirect Cost Allocation Plan at a higher cost. The requested actions reduce overall maximum payments to MGT of America LLC by $8,900.
Requested Action:
1. Approve Amendment 3 to Agreement No. 210126B with MGT of America Consulting LLC
2. Approve Agreement No. 240413B with MGT of America Consulting LLC
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
Yes |
|
Where is it budgeted? |
Central Services |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
Discretionary Justification: |
This service is necessary to ensure the accurate and timely preparation of SB90 claims and the Indirect Cost Plan. These items are critical for the County to seek reimbursement particularly from the State and Federal government for services provided. |
|
Is the general fund affected? |
Yes |
|
Consequences if not approved: |
If this item is not approved, the County will need to seek a new vendor or develop internal expertise to create SB90 claims and the Indirect Cost Plan. MGT provides these services and software to many local jurisdictions and the County benefits from their expertise. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.