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Substance Abuse Coordination Services for Drug Detoxification and Rehabilitation <br />Treatment <br />June 17, 2025 <br />Page 4 <br />5 <br />1 <br />0 <br />1 <br />ii. Any Outreach and Engagement contractor would be forced to pay <br />the exact same rates for these services at the various substance <br />abuse treatment centers. <br />iii. Therefore, no outreach provider would be in a position to offer any <br />better rates than any other. <br />c. Operations and Program <br />i. Each program would be subject to a financial audit as well as <br />necessitate the need for Liability as well as Workers Compensation <br />Insurance. These rates are flat across the industry. <br />1. The amount spent on a financial audit is generally tied to the <br />specific amount being audited. As each entity would be <br />receiving the same amount, the cost for the financial audit <br />would be same. <br />2. Workers Compensation Insurance is tied to the number of <br />employees assigned to the program and, this too, would be <br />the same no matter the vendor selected and is generally an <br />industry standard rate based on wages paid. As the total labor <br />separation between the highest bidder and lowest bidder <br />would be tied to the 0.67% difference in labor costs, the <br />difference is again diminutive. <br />d. Indirect Costs <br />i. Per 2 CFR 2000 414-11, de minimus rates are established for non- <br />Federal entities who do not have negotiated Indirect Costs Rate. This <br />fee is charged at a rate of 15% to offset expenses incurred by the <br />organization but not billable as direct project expenditures. <br />ii. The City has negotiated a 10% Indirect Costs Rate with the awarded <br />Vendor. <br />iii. Each entity that submitted for the RFP process charges the exact <br />same 10% rate, making this too exactly the same cost across all <br />three vendors. <br />3. Based on the total labor disparity of 0.67%, as well as virtually no cost differences <br />in Client Services, Operations, and Program, as well as Indirect Costs, the <br />Purchasing Supervisor determined the award of the contract falls under SAMC <br />Section 2-807 (Non-Bid Purchases), is exempt, and has further concluded that <br />soliciting for bids would be an Idle Act. <br />FISCAL IMPACT <br />To date, the city has received $4,972,396, of the projected funds. The Santa Ana City <br />Manager’s Office is designated to receive and oversee the City’s OSF. Funding is <br />available in the current FY2024-25 budget. <br />Fiscal <br />Year <br />Accounting <br />Unit-Account <br />Fund <br />Description <br />Accounting Unit, <br />Account Description <br />Amount <br />FY 24-25 11103010- <br />62300 <br />Opioid <br />Remediation <br />OPIOID REMEDIATION – <br />CMO – Contract Services $500,000