DATE: June 18, 2019
TO: Board of Supervisors
SUBMITTED BY: Delfino E. Neira, Director, Department of Social Services
SUBJECT: Amendment to Agreement with DXC Technology Services LLC for Maintenance and Operation of the CalWIN Welfare Data Management System
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment I to Agreement No. 15-058 with DXC Technology Services LLC for Maintenance and Operation of CalWIN, exercising the optional three-year extension from February 1, 2020 to January 31, 2023 and increasing the maximum for the full 10-year period by $123,735,899 to a total of $721,234,533.
REPORT
Approval of the recommended action will formally incorporate two previously completed software coding projects, increase the maximum compensation to account for the associated costs, and enable 18 California counties, including Fresno, to continue use of the CalWIN welfare data management system until the transition to the CalSAWS system in late 2022. The cost of services will be shared among all 18 counties, with the County’s share of cost met with Federal, State, 1991 Social Services Realignment, and County General Fund, with no increase in Net County Cost. This item is countywide.
ALTERNATIVE ACTION(S):
There is no viable alternative action. Should your Board choose not approve the recommended action, the Department will not be authorized to pay for its share of CalWIN services and may lose access to the system. Without CalWIN, the County would not have sufficient resources to administer social services programs within the timeframes mandated by State and Federal regulations.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The total maximum cost to be shared by all 18 counties is $360,488,459 for the current five-year term, $218,802,723 for the upcoming three-year term, and $141,943,351 for the optional two-year term.
The County is responsible for payment of the Department’s CalWIN services based on a proportionate share of CalWIN caseload counts, currently 8.79%. The County’s share of cost is currently met with Federal and State funds (96.07%), 1991 Social Services Realignment (3.41%), and County General Fund (0.52%). The County’s individual share of cost for the agreement from the effective begin date through April 30, 2019 was $27,365,053. The County’s projected share of cost is $4,501,282 for the remainder of the initial five-year term, $19,232,103 for the recommended three-year extension, and $12,476,395 for the optional two-year extension; a total of $36,209,780 for the remainder of the Agreement if all extensions are exercised.
The projected share of cost of $19,232,103 for February 1, 2020 through January 31, 2023 will be offset with State and Federal Social Services funds ($18,475,663), 1991 Social Services Realignment ($656,104) and Net County Cost ($100,336) to fund the General Relief’s share of cost. All funding for the Agreement is contingent upon availability of State and Federal funds and actual caseload percentage calculations. Sufficient appropriations and estimated revenues are included in the FY 2018-19 Adopted Budget for Department of Social Services, Org. 5610, and will be included in subsequent budget years.
DISCUSSION:
On March 12, 2019, the Board authorized the execution of a Joint Powers Agreement (JPA) and a Memorandum of Understanding with the CalSAWS Consortium, effective June 28, 2019, enabling the Department to participate in a shared welfare data management system for all 58 California counties. The transition to this new system is expected to occur in late 2022. Until the transition is complete, the Department, along with 17 other California counties, must maintain the current welfare data management system, CalWIN, which is overseen by the Welfare Client Data Systems (WCDS) Consortium. After the transition, the CalWIN agreement may be retained to facilitate access to historical data for a period of time as yet to be determined by the CalSAWS Consortium. Your Board will be asked in the near future to assign this agreement to the CalSAWS Consortium for further coordination of services.
The recommended amendment modifies the agreement authorized by the Board on February 10, 2015, by increasing the maximum compensation for the current and future terms, exercising the first optional three-year extension, and making minor administrative changes. It also formally incorporates two documents authorizing significant additions to the CalWIN software coding necessary for compliance with the State’s implementation of the Patient Protection and Affordable Care Act. Counties have not exceeded the current maximum compensation, but are predicted to do so before the end of 2019.
The CalWIN agreement approved in 2015 was with HP Enterprise Services LLC (HPES). A series of corporate mergers has changed the vendor’s name to DXC Technology Services LLC (DXC). The recommended amendment retains the vendor as HPES, but has a new provision identifying that all references to HPES shall be deemed to mean DXC. Leadership for the CalSAWS Consortium has requested this amendment be executed by all CalWIN counties prior to the effective date of the CalSAWS JPA. The recommended amendment deviates from the County’s standard contract language.
REFERENCE MATERIAL:
BAI #50, March 12, 2019
BBR - Transition from the CalWORKs Information Network to the California Statewide Automated Welfare System, October 8, 2018
BAI #46, February 10, 2015
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment to Agreement No. 15-058 for CalWIN M&O
CAO ANALYST:
Debbie Paolinelli