header-left
File #: 13-0222    Version: 1 Name: Economic Diversification Study Contract
Type: Contract Status: Approved
In control: Board of Supervisors
On agenda: 3/26/2013 Final action: 3/26/2013
Title: Approve a contract with Economic & Planning Systems to manage the economic diversification study project funded by the Office of Economic Adjustment for an amount not to exceed $369,860 effective March 26, 2013 to December 31, 2014; and Authorize the County Administrator to execute the contract
District: All
Attachments: 1. A - EPS Proposal, 2. B - Contract, 3. Minute Order.pdf
title
Approve a contract with Economic & Planning Systems to manage the economic diversification study project funded by the Office of Economic Adjustment for an amount not to exceed $369,860 effective March 26, 2013 to December 31, 2014; and  Authorize the County Administrator to execute the contract
 
body
Published Notice Required?     Yes ____ No __X_   
Public Hearing Required?         Yes ____ No __X_
 
DEPARTMENTAL RECOMMENDATION:
 
It is recommended that the Board of Supervisors approve a contract with Economic & Planning Systems to manage the economic diversification study project funded by the Office of Economic Adjustment for an amount not to exceed $369,860 effective March 26, 2013 to December 31, 2014; and Authorize the County Administrator to execute the contract
 
SUMMARY:
 
On January 15, 2013, the Board of Supervisors accepted a grant from the Office of Economic Adjustment to develop a countywide economic strategic approach to further diversify the Solano County economy so that the local economy is less dependent on defense expenditures at Travis Air Force Base. After a competitive solicitation process and evaluating seven proposals, the County is recommending the selection of Economic & Planning Systems as the consultant for the economic diversification study project.
 
The comprehensive project has an aggressive time table to ensure the project can be completed within the grant period, which began January 1, 2013 and concludes June 30, 2014.  Authorizing the County Administrator to execute the contract with Economic & Planning Systems, for the period of March 26, 2013 to December 31, 2014, will allow the County to the move the project forward and recover lost time in the grant period due to delays in the grant approval process as well as allow a period of time post-grant to close out the project.
 
FINANCIAL IMPACT:
 
The Office of Economic Adjustment has awarded the County a grant of $369,860 to conduct an economic diversification study project.  The grant requires a 10% in-kind match of $41,140, which will be provided by County staff administering the grant and overseeing the project. Anticipated expenditures of grant funds over the 18-month grant period are $50,000 in FY2012/13 and up to $319,860 in FY2013/14.
 
DISCUSSION:
 
Background: On May 15, 2012, the Office of Economic Adjustment (OEA) conducted a site visit as a follow-up to a request from the Solano Economic Development Corporation for assistance in conducting an economic diversification study.  The OEA is a function of the Office of the Assistant Secretary of Defense that focuses on assisting communities with military installations.  While the organization is more known for helping communities after base closures, the OEA can also help communities with local economies that have significant Department of Defense expenditures.  Solano County qualifies as a community with economic dependence on a military installation.  At this meeting, OEA staff explained the various ways in which they could assist Solano County, including providing grant money to assess the challenges and opportunities that face the regional economy so the county may better understand its reliance on defense-related jobs and economic activity.
 
In the subsequent months, the County worked with OEA to develop a comprehensive grant proposal that would address the mutual desire to diversify the Solano County economy. On January 15, 2013, the Board of Supervisors accepted a OEA grant to develop a countywide economic strategic approach to further diversify the Solano County economy so that the local economy is not as dependent on defense expenditures at Travis Air Force Base and to create a sustainable economic base that enables residents and businesses to thrive and prosper independent of budget cycles and changing priorities related to defense spending.  
 
The County solicited a consultant to conduct the extensive amount of research, analysis and communication engagement necessary to complete the economic diversification study project, which the County anticipates the following key outcomes:
 
•  An assessment of the overall industry clusters in Solano County and the subset of these clusters that support, rely on, benefit from, or have synergistic partnerships with the existence of TAFB;
 
•  An assessment of the workforce in Solano County and the ability of the workforce and local industry to meet the demands of a more diversified economy related to existing industry areas or to evolve into a workforce that can satisfy potential new industry opportunities;
 
•  A better understanding of the workforce/talent leakage to neighboring regions;
 
•  An assessment of the potential opportunities to further diversify the Solano County economy and complement the County's vision; and
 
•  The recommendation of a countywide economic diversification strategic approach that identifies courses of action to refine economic development initiatives to expand and further diversify the economic base of Solano County.
 
Selection Process: The County released the solicitation for proposals on February 1, 2013 with a deadline to submit proposals by March 1, 2013.  The County received a total of seven responses from the following firms:
 
•  Economic & Planning Systems, Sacramento
•  BAE Urban Economics, Emeryville
•  Team Solano/Solano EDC, Fairfield
•  University of Pacific Business Forecasting Center, Stockton
•  ICF Resources, San Francisco
•  Matrix Design Group, Fair Oaks
•  Collaborative Economics, San Mateo
 
On March 6, 2013, the evaluation committee reviewed and ranked the proposals for their technical ability to deliver the economic diversification study within the budget, time constraints and other parameters of the grant.  
 
On March 13, 2013, the three top-ranked firms Economic & Planning Systems, BAE Urban Economics and Team Solano/Solano Economic Development Corporation were invited to personally present their proposal to the evaluation committee.  The committee selected Economic & Planning Systems as the firm with the best strategy to deliver the economic diversification study project.
 
The County issued a Notice of Intent to Award on March 15, 2013 and posted the notice on the County's website.
 
ALTERNATIVES:
 
The Board could choose not to authorize the execution of the contract with Economic & Planning Systems.  This is not recommended as this will delay initiated the project, which has an aggressive timetable to deliver the economic diversification study within the grant timeframe.
 
OTHER AGENCY INVOLVEMENT:
 
The evaluation team consisted of Nancy Huston, Assistant County Administrator and grant project leader; Stephen Pierce, Public Communications Officer and project grant administrator; Bud Ross, chair of the Travis Community Consortium; Ed Forrest, chair of the Vacaville Economic Development Committee; and David White, Fairfield Assistant City Manager.
 
CAO RECOMMENDATION:
 
APPROVE DEPARTMENTAL RECOMMENDATION