DATE: October 22, 2024
TO: Board of Supervisors
SUBMITTED BY: Sanja Bugay, Director, Department of Social Services
SUBJECT: Agreement with Cornerstone OnDemand, Inc.
RECOMMENDED ACTION(S):
TITLE
1. Under Administrative Policy No. 34 for competitive bids or requests for proposals determine that an exception to the competitive bidding requirement is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances, and that the best interests of the County would be served by continuing a subscription with Cornerstone OnDemand, Inc. (previously known as Saba Software, Inc.) as it meets the needs as a Learning Management System for the Department; and
2. Approve and authorize the Chairman to execute an Agreement with Cornerstone OnDemand, Inc effective November 3, 2024 through November 2, 2026 total not to exceed $173,524.
REPORT
There is no additional Net County Cost associated with the recommended action, which will secure a continued subscription to Cornerstone OnDemand, Inc. (Cornerstone), that will allow the Department of Social Services (Department) to continue to schedule and deliver mandated training to staff, as well as continue to track and report compliance with State and Federal regulations.
ALTERNATIVE ACTION(S):
There are no viable alternatives to the recommended actions. If the recommended actions are not approved, the Department would have no Learning Management System (LMS) to assist in the administration and tracking of required staff training.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that your Board find under Administrative Policy No. 34 (AP 34) that an exception to the competitive bidding requirement is satisfied, and a suspension of competition is warranted due to unusual or extraordinary circumstances, for Cornerstone as a LMS for the Department. Although there are many LMSs that offer similar services, Cornerstone excels in providing a friendly user interface, tracks and manages training courses, allows managers to confirm training compliance of staff, and ensure that staff are meeting State and Federal requirements. The Internal Services Department - Purchasing concurs with the Department’s assessment that this satisfies the exception to the competitive bidding process required by AP 34.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum amount of $173,524 will be fully offset with State and Federal funds ($164,836), 2011 Realignment ($4,753) in lieu of State General Funds for Child Welfare Services and Adult Protective Services Programs that were realigned to counties through Assembly Bill (AB) 118, 1991 Social Services Realignment funds ($1,897) and the required Net County Cost ($2,038) which offsets the General Relief Program share of cost. Sufficient appropriations and estimated revenues are included in the FY 2024-2025 Adopted Budget for the Department of Social Services, Org 5610, and will be included in subsequent budgets.
DISCUSSION:
State and Federal regulations prescribe the minimum number of training hours each Department employee must receive. To track compliance with these regulations, the Department completed a Request for Proposal (RFP) process and Saba Software, Inc. (now known as Cornerstone OnDemand, Inc.) was the selected vendor. The Department entered into an agreement with Saba Software, Inc. effective October 28, 2014, for subscription services to Saba Software, Inc.’s web based LMS. The current purchase order is scheduled to expire on November 2, 2024. Over the years of ongoing services with Cornerstone, the aggregate cost has exceeded $200,000, therefore, it is required that the agreement for ongoing services be brought to the Board for approval.
Cornerstone LMS services will allow the Department to:
• Identify training needs
• Track individual employee training records and progress
• Ensure employees received required hours of training
• Reduce employee travel to training sites
• Simplify delivery of training materials via instant online access at employee workstations
• Maximize efficiency of employee work time
• Manage compliance with State and Federal training requirements
In addition, through Cornerstone LMS management staff are better equipped to evaluate individual employee performance, review, and track overall training outcomes, goals, and complete mandated reports.
The recommended actions seek to renew the term of the subscription for an additional two-year term from November 3, 2024 to November 2, 2026. The Department has continually used Cornerstone LMS since October 2014. On September 12, 2017, Board approved an additional two-year continued subscription with Cornerstone. Cornerstone LMS services have been an essential tool in tracking, managing, and assigning training to ensure that staff are in compliance with State and Federal regulations. Cornerstone continues to meet the Department’s needs and remains cost efficient, allocating for all 2,700 Department staff.
REFERENCE MATERIAL:
BAI #63, September 12, 2017
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition Request
On file with Clerk - Cornerstone OnDemand Master Agreement & Q-93752 Quote
On file with Clerk - Saba Service Level Agreement
CAO ANALYST:
Dylan McCully