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Approve the third amendment to the agreement with HP Enterprise Services in the amount of $124,218,402 of which the Solano County share is $3,181,569 for a total contract amount of $806,380,443 for the 18 counties participating in the Welfare Client Data Systems Consortium for CalWORKs Information Network Development, Implementation, Maintenance and Operation Services, and extending the term through July 31, 2015
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Published Notice Required? Yes _____ No __X__
Public Hearing Required? Yes _____ No __X__
DEPARTMENTAL RECOMMENDATION:
The Department of Health and Social Services (H&SS) recommends that the Board approve the third amendment to the agreement with HP Enterprise Services in the amount of $124,218,402 of which the Solano County share is $3,181,569 for a total contract amount of $806,380,443 for the 18 counties participating in the Welfare Client Data Systems (WCDS) Consortium for CalWORKs Information Network (CaIWIN) Development, Implementation, Maintenance and Operation Services, and extending the term of agreement through July 31,2015.
SUMMARY:
The WCDS Consortium contracts with HP for support and maintenance of the CalWIN system, which is used for CalWORKS, General Assistance, and other public assistance programs. This amendment and extension allows for the incorporation of additional State funding covering caseload costs, regular application maintenance, new premise-funded items, server monitoring, network/telecom charges, vendor-provided hardware and software maintenance, and the ongoing functionality of the full scale migration to the CalWIN Web Application. This extension also allows the WCDS time to complete a competitive solicitation process for the continuation of CalWIN maintenance and operational services after this extension ends.
FINANCIAL IMPACT:
The recommended amendment increases the total contract amount for the consortium counties by $124,218,408 for system support and upgrades through July 31, 2015. Each WCDS Consortium member county shares a proportionate amount of the cost of this contract and the contract costs are largely offset with State and Federal funds.
Solano County’s share of this amendment costs is $3,181,569. The funding for this amendment includes $147,625 in County General Fund for contract costs associated with the General Assistance program, and $3,033,944 in Federal and State funding. The costs are included in Department’s FY 2013/14 Requested budget.
DISCUSSION:
In November 1999, the Board approved the development, implementation, and maintenance of the CalWIN automated eligibility determination and benefits delivery system in Solano County, replacing the “Welfare Case Data System.” In conjunction with the WCDS Consortium, a group of 18 counties formed to coordinate a multi-County system solution. The project cost to replace the former eligibility determination system for the 18 consortium counties was $472 million and the project bid was awarded to the Electronic Data Systems Corporation.
The Information Technology Agreement with Electronic Data Systems Corporation (currently HP) was negotiated on behalf of all participating counties by the WCDS Consortium and was originally executed on February 28, 2000. The CalWIN System was implemented in Solano County in July 2005 and requires ongoing maintenance and operation services provided by HP. The agreement with the WCDS Consortium was amended twice resulting in a consortium contract total of $682,162,040 and extending it until July 31, 2013.
Costs of the CalWIN system are reviewed and approved annually by State agencies through the Advance Planning Document (APD) process to assure that on-going operations and changes meet Federal and State funding requirements.
ALTERNATIVES:
The Board may choose not to approve the amendment. This is not recommended as the CalWIN system is the benefit issuance system for all public assistance programs in Solano County and Solano County is required to approve the amendment in order to continue to utilize the system.
OTHER AGENCY INVOLVEMENT:
WCDS is requesting ratification of this extension from all 18 CalWIN Counties. County Counsel has reviewed and approved this contract for legal sufficiency.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION