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10/02/2012 09 Managed Competition Structured Process Adoption BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: October 2, 2012 ITEM TITLE: Resolution adopting the Managed Competition structured process as outlined in the Managed Competition Guide. SUBMITTED BY: Tony O'Rourke, City Manager CONTACT PERSONITELEPHONE: Sue Ownby 576 - 6695 SUMMARY EXPLANATION: Managed Competition is a structured process which identifies the most economical and efficient ways to provide public services. The process enables City services to compete against private sector service providers, and allows City employees to exercise their experience, creativity and resourcefulness in managing their respective operations similar to a private enterprise The City Manager is responsible for the administration and execution of the process, subject to City Council contract approval. Resolution X Ordinance Other (specify) Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding Phone: Source: APPROVED FOR SUBMITTAL: I) City Manager STAFF RECOMMENDATION: Adopt Resolution BOARD /COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download ❑ Manacled Comp ❑ Cover memo ❑ Guide RESOLUTION NO. R -2012- A RESOLUTION authorizing and directing the City Manager of the City of Yakima to adopt and execute the structured process outlined in the Managed Competition Guide. WHEREAS, the City of Yakima desires to provide the most economical and efficient services to the citizens of Yakima; and WHEREAS, the Local, State and National economies are experiencing sustained economic losses resulting in decreased revenues; and WHEREAS, the City does not currently have a process whereby City service providers can compete with alternative government providers or the private sector; and WHEREAS, Managed Competition provides for a structured, transparent process for the comparison of public and private service providers, and WHEREAS, the City Manager shall determine which services will undergo Managed Competition and notify Council; and WHEREAS, The City will take stringent actions to avoid giving either an independent service provider or the City an advantage in its response to any solicitation; and WHEREAS, the City Manager shall execute a multi - phased plan including notifications, solicitations, employee proposal development, source selection, and transition /post compliance accountability, and WHEREAS, The City Council shall have the authority to accept or reject in its entirety any proposed agreement with an independent contractor submitted by the City Manager, and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to authorize, adopt and execute the Managed Competition protocol as outlined in the Managed Competition Guide, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute the Managed Competition protocol as outlined in the Managed Competition Guide for the administration, solicitation, selection, execution and evaluation of selected City services. ADOPTED BY THE CITY COUNCIL this 2nd day of October, 2012. Micah Cawley, Mayor ATTEST: City Clerk SERVICE Purchasing Division raysucs Inter- Departmental MEMO mask To: Yakima City Council — For Council Information From: Sue Ownby, Purchasing Manager Date: September 26, 2012 Re: Managed Competition Guide Attached for your consideration and review is proposed framework for a Managed Competition Guide that will provide a road map for the managed competition process. Managed Competition is very similar to putting out a normal Request for Proposals for services, with the exception that City Services will also be expected to compete to determine who is the most economical and efficient provider of services to the citizens of Yakima. This guide will articulate the protocol for a comprehensive process that will ensure a fair, unbiased and transparent process. The five key phases that make up the main components of the managed competition guide include: D Competition Planning D Solicitation Development D Employee Proposal Preparation and Development D Source Selection D Transition and Post - Competition Accountability According to the Washington Policy Center Policy Guide for Washington State, benefits of managed competition include: • Lower cost. Private companies are disciplined to seek efficiencies through the need to operate at a profit while providing superior service at a competitive price. By employing the techniques of competition, public managers find efficiencies within their operations and lower the cost of performing a service. • Higher service levels. Monopolies, whether public or private, frequently lack the stimulus to innovate and improve service delivery. By opening services to competition, governments can upgrade services and achieve cost savings. • Better management. Government can streamline its operations by using the same accounting procedures and productivity measures that the private sector uses, which are more accurate and comprehensive than traditional government methods. • Changed government culture. When a government seeks dynamic competition over a monopoly status quo, its culture changes. Governments that are open to competition liberate themselves to perform a smaller set of core functions better, while leaving much of the routine work to contractors. Across the country, state, county and city governments are opening services that were once performed exclusively by government agencies to managed competition. Whether the service was retained by the entity or awarded to private contractors, the results have been millions in savings to the tax payer. Adoption of these Managed Competition Guidelines will enable staff to identify city service for competition, and ensure a fair and equitable competition. We believe adoption of these managed competition guidelines will be a significant step in ensuring the public that the City of Yakima is committed to being the best possible steward of the public's money and is driven to achieve the best and most economical results for the public. The first proposed candidate for this process is the Airport, based upon the Airport Board's interest in considering both public and private sector management of the Airport. CITY OF YAKIMA "r' �i lit of •,� Yj • • +. h� � 'i. or s • lh, i"'',il. 1" .. L. . A . II ■ MANAGED COMPETITION GUIDE September 26, 2012 ACRONYM AM) ABBREVIATION LIST Acronym Meaning O CT C jtiEsC o hg Tool 1 C FP C ±y-fi u idiei pmper y City C ityofYalan a CoundlorCityyCouncal C ity ofY akin atel C T Evaliatior4Tean FT E Fuikin e equ vaTht , G I] i'le C >LySM arm � p ett�n G - He N PE N on- personnel Q ASP Q ualiyassuEnce savalincepIn RFI Requeetfrr atim , RFP Requestforpirposah RFQ RequestforqualiEcathns SO W StatancEntofwork TABLE OF CONTENTS INTRODUCTION 4 PROGRAM PURPOSE 4 MANAGED COMPETITION PROCESS OVERVIEW 4 TASK A: DEVELOP PRELIMINARY STATEMENT OF WORK 5 TASK B: COMPETITION SCHEDULE 5 TASK C: FIREWALL AND CREATION OF STATEMENT OF WORK AND EMPLOUOEE PROPOSAL TEAMS 5 PHASE II: SOLICITATION DEVELOPMENT 6 TASK D: DEVELOP ACQUISITION PLAN 6 TASK E: DEVELOP STATEMENT OF WORK 6 TASK F: DEVELOP REQUEST FOR PROPOSAL AND FINAL SOLICITATION 8 TASK G: DEVELOP QUALITY ASSURANCE SURVEILLANCE PLAN 9 TASK H: ADVERTISE FINAL SOLICITATION 10 TASK I: CONDUCT PRE-PROPOSAL MEETING 10 PHASE HI: EMPLOYEE PROPOSAL PREPARATION AND ...... TASK J: DEVELOP EMPLOYEE TEAM TECHNICAL PROPOSAL 10 TASK K: DEVELOP EMPLOYEE TEAM COST PROPOSAL 11 RECEIVE PROPOSALS ... 11 PHASE IV: SOURCE SELECTION 11 TASK L: RECEIVE CITY MANAGER'S RECOMMENDATION 12 TASK M: CITY COUNCIL APPROVAL 12 PHASE V: TRANSITION AND POST-COMPETITION ACCOUNTABILITY 12 TASK N: IMPLEMENT TRANSITION PLAN 12 TASK 0: MONITOR SERVICE PROVIDER PERFORMANCE 13 EXHIBIT A: EVALUATION TEAM 15 EXHIBIT B: MANAGED COMPETITION ROLES AND RESPONSIBILITIES 16 EXHIBIT C: NON-DISCLOSURE AND CONFIDENTIALITY AGREEMENTS 21 EXHIBIT D: MANAGED COMPETITION COST COMPARISON GUIDE 30 3 IPage INTRODUCTION The City of Yakima (City) uses managed competition as one way to identify the most economical and efficient ways to provide services for the public. Managed competition provides a structured process that enables public employees to compete against alternative public and private service providers. Managed competition also taps the creativity, experience and resourcefulness of City employees, giving them the opportunity to manage their operation as if it were a competitive business. City leaders have implemented managed competition to improve service to customers and to address taxpayer and stakeholder demand for value on each tax dollar spent. • Program Purpose Managed competition is a structured, transparent process that allows public sector employees to be openly and fairly compared with alternate service providers for the right to deliver services. This strategy recognizes the high quality and potential of public sector employees, and seeks to tap their creativity, experience and resourcefulness by giving them the opportunity to structure organizations and processes in ways similar to best practices in competitive businesses. The City, acting through the City Manager, reserves its rights regarding any alternate process to determine when City services can be provided more economically and efficiently by an independent contractor than by persons employed in the city while maintaining service quality and protecting the public interest. r. Managed Competition Process Overview' _ Y The City Manager shall determine which services will undergo Managed Competition. The City Manager will notify Council on his`1ecision and rut into motion the following phases: • • Phase I: City It�anager Decision/Stakeholder Notification • Pfiase II: .Solicitatibq DeveloprneQt • Phase III: Empkyee Proposal Preparation and Development • Phase IV: Source Selection • Phase V: Transitioruand Post - competition Accountability The length of time required for -each of these phases is dependent on the circumstances of, type, and size of function undergoing; competition. During Phase II, Purchasing and Contracting will lead the team developing'4he Request for Proposals (RFP). In Phase III, the Employee Proposal team will develop the employee response to the solicitation. As part of Phase IV, the City Manager (or his designee) will oversee the evaluation of the proposals. Once a winning proposal has been selected and approved, the City will transition to the winning service provider or service delivery model. PHASE I: CITY MANAGER DECISION /STAKEHOLDER NOTIFICATION Once the City Manager has chosen to pursue competition, the City Manager will notify Council Wage that the competition will be taking place. Task A: Develop Preliminary Statement of Work The City Manager will notify the service chosen to undergo competition. The City Manager and the affected Department Head will develop a Preliminary SOW and notify Purchasing to begin RFP development. Task B: Competition Schedule The competition schedule will be created and will cover the steps that need to be accomplished for each phase of competition. The City Manager will update and maintain the document and use it as a tool to track the progress of each competition.4 Task C: Firewall and Creation of Statement of Work and Employee Proposal Teams The potential for abuse from knowingly or unknowingly causing or gaining unfair advantage from access to information, or the ability to affect the selection process for personal gain must be understood and avoided. The City will assist 'departments to understand, train personnel, and implement safeguards and procedures to avoid the potential for ethical conflicts and abuses. No elected official or City employee shall provide procurement sensitive information to any potential contractor. A firewall is a separation of communication, M data, and responsibilities between the SOW Team, the Employee Proposal ,Team, and outside entities. A firewall ‘A41.1 be established in advance of moving forward to solicitation development (acquisition plan, 'Statement of Work, etc.) or employee proposal'preparation. %The SOW-,Team will develop the Statement of Work and members of the SOW Team mi assist in selecting the appropriate service provider. The Employee Proposal Team ,s respoTisible for developing the employee proposal in response to the RFP. A firewall is created between the two employee teams to ensure that a level playing field exists between the Employee'rpposal Team ,and any independent service providers interested in responding to the solicitation. The City Manager and City Council members are not on either side ortke firewall and - should not have access to any information that is behind the firewall. IP Statement of Work or employee proposal information is received by the City Manager, a City Council member, or their staff while the firewall is intact, that information should not be shared and Purchasing should be notified immediately to allow for appropriate investigation(s) which may result in possible disciplinary action(s) to be pursued against the member(s) or leader(s) of the SOW or Employee Team(s) who disclosed the information and acquisition status to be reviewed for determination of whether actions need to be taken to preserve a level and appropriate acquisition. City staff, who have participated in competitive preliminary planning prior to establishing the firewall, can move on to either the Statement of Work or Employee Proposal Team. For the firewall to work effectively, roles and responsibilities must be clearly defined in order to avoid both actual and perceived conflicts of interest. The clear and appropriate assignment of roles and responsibilities to individuals and teams will enhance the City's ability to address the issues that may arise within or among key stakeholder groups (e.g., City personnel, labor organizations, independent service providers) and to mitigate any potential conflicts of interest 5 1Page during the course of the managed competition process. Please refer to Exhibit B: Managed Competition Roles and Responsibilities for further definitions of each position. Potential conflicts of interest will leave the City open to questions from City residents and employees and may result in protests or law suits. The City will take stringent actions to avoid giving either an independent service provider or the City an advantage in its response to any solicitation. Therefore, City employees and stakeholders, along with all consultants, will sign Non - disclosure and Confidentiality Agreements (see Exhibit C) affirming that they will not share information across the firewall nor release any information outside the process in order to maintain the integrity of the competition. 4- 4 PHASE II: SOLICITATION DEVELOPN>[XNT When it is determined that a competition process will take place, appropriate acquisition actions, such as development and advertising of the solicitation of proposals for the service, will be undertaken by City staff, including the SOW team, the City Manager's Office, and Purchasing. Once the City Manager has approved he Preliminary SOW, the City will begin preparing for the solicitation. An Acquisition Plan will be developed and the SOW Team will work concurrently with Purchasing to develop the RFP. Task D: Develop Acquisition � A Purchasing, in coordination with Subject Matter Experts, will develop a Managed Competition Plan for each competition. The Managed Competition Plan will lay out the City's strategy for executing the competition including identifying .$he appropriate contract type, procurement method, and evaluation criteria. Additionally, the Managed Competition Plan will lay out the City's approach for determining the length of the -transition period. Task E: Develop Statement of Work The SOW defines the requirements to which the Employee Proposal Team and independent service providers will respond..The SOW will be performance -based and will specify required service levels. The final SOW will be submitted to Purchasing for incorporation into the RFP documents. The SOW will focus on what is to be done rather than on how it is currently done. Where this is not possible and specifications of how a function is or must be performed are necessary, these will be included in the SOW. The SOW will provide the information necessary for all bidders (independent service providers as well as the Employee Proposal Team) to develop an approach and cost for providing the service. The SOW will include the following information: • General and Specific Requirements - The services the City is seeking from a service provider, including the overall scope of work, general operating conditions, quality control requirements and employee certifications and training requirements. The specific Wage requirements will be stated in terms of performance standards or desired outcomes. Any unique requirements will be included, such as the required technical qualifications, certifications and/or licenses for service provider personnel. In addition, the applicable rules, regulations, and statutory requirements that govern the delivery of services will be included in the general and specific requirements. Specific requirements will designate that the independent contractor: (1) Has appropriate safety policies and procedures in place to protect the public and its employees in providing the service. (2) Designate qualified personnel to monitor contract compliance. A i' (3) Employ in the service of its City contract only those who have the necessary technical qualifications to provide the services. (4) Maintain for its employees the same certifications as will be required of City employees performing the same service. (5) Perform background checks on employees performing a particular service if background checks will be regUired of City employees performing that same particular service. (6) Has provided the service satisfactorily for a sufficient period of time to demonstrate expertise. • • City - furnished Property, Materials And '-',City-furnished Property is property in the possession of, or directly acquired by, City AO made available to the service provider selected perform the specified functions in the SOW. City - furnished Property may includa, such things as facilities, heavy machinery, specialty tools, special test equipment, computers an•software, al department- specific property (If access to City systems or databases is tor be provided,`* appropriate security measures will be taken to protect the informaipn residing in the City's technical systems and/or databases.) The SOW Team will specify whether the cost of City- furnished Property replacement, when necessary, will -be borne by the City or included in the service provider's proposed costs. As necessal subject matter expert advisors (such as Fleet Division staff for vehicles) will be involved to inform decisions on City - furnished Property. Additionally, whether bidders should include or exclude the cost of any ongoing maintenance of City- furnished Property will be specific in the SOW. • Technical Exhibits - Technical exhibits include but are not limited to workload data, performance levels, facility data, and government furnished property inventory. • Supporting Docunitntation - Supporting documentation may include: drawings, maps, component system descriptions, property inventories, reporting formats, material usage, guiding documentation, and other reference materials. As part of the SOW, the City will require that all bidders include in their technical proposals: • Transition Plan - Each service provider must provide a transition plan detailing their approach for implementing their proposed organization to meet the requirements in the fmal SOW. Transition Plans may include strategies for: recruiting, training, procuring 7IPage equipment, purchasing supplies and materials, developing standard operations procedures, and assuming the full responsibility of the contract while minimizing service disruption. • Quality Control Plan - The Quality Control Plan is developed by each bidder and will define how they will conduct quality control internally based on the specific requirements and the defined services levels of the RFP. • First Preference in Hiring — Contractors are required to give first preference in hiring to displaced City employees through recruiting, interviewing, and considering City employees for available positions provided that: (1) a City employee meets the contractor's minimum qualifications for the position; (2) the particular circumstances of the service allow for it; and (3) to the extent permitted by law. In addition, as with all City contracts, the City retains the right to set other requirements, terms, or conditions for successful proposers to meet and/or deliver services in accordance therewith. In appropriate cases, as determined at the discretion of the City Manager, the City may require that the independent contractor maintain a customers i p service and customer complaint resolution plan. pan. Task F: Develop Request for Proposal and Final Solicitation Purchasing will compile a solicitation document in the form of an RFP. Effort should be made to create an RFP that will draw industry interest. The RFP will include detailed information describing how the conlpetition will be conducted, specific instructions to potential service providers and method of proposal evaluation and cost comparison. In addition, the RFP shall include minimum contract standajds and 'other measures to protect the quality and reliability of public services. The RFP should include items such as: • Statement of Work — A description of the= functions and services to be provided by the selected service provider with the associated desired service levels or outcomes and monitoring requirements by the City. (See Task E.) • Solicitation Schedule — The timeline for the solicitation from issuance of the RFP through the anticipated term of performance under the contract. • Pricing Structure — Thepricing sheet developed for the bidders to accurately reflect the cost of services. • Proposal Instructions — A detailed list of instructions to bidders that describes proposal content and format. • Process Description — A description of how the procurement process will be managed, including the pre - proposal meeting, evaluation process, possible interviews, selection, cost comparison, and award. • Contract Terms and Conditions — A document that contains the general terms and conditions related to the contract term, liability, insurance, payment, audit and performance requirements, etc. As part of the terms and conditions, the City Manager shall require that any independent contractor providing services to the City meet 8IPage minimum contract standards to be contained in the solicitation for services. The minimum contract standards shall include that the service provider: (1) Have adequate financial resources in order to provide the requested services (as part of this, any prior financial defaults or bankruptcies must be disclosed). (2) Provide proof that it maintains an adequate level of liability insurance consistent with City of City of Yakima risk management requirements. (3) Has a policy of equal employment opportunity. (4) Has committed to complying with the applicableterms of the State of Washington Prevailing Wage Laws. (5) Will comply with all applicable employment and labor laws. Contracts with all service providers shall consequences for non - performance, up to and including termination of the agreement with the service provider, including an independent contractor or City department. Should a contract be cancelled as a result of non - performance, the City may either retake the delivery of the function that had been under contract or initiate actions to establish a new contract in accordance with the City's purchasing and contracting i*ocedures. New contracts with outside service providers that are awarded through contractirT mans other than managed competition shall be awarded to allow for continuous service to the - public for time periods of not more than one (1) year. In the event that a contract is cancelled and costs will be borne by the City to either resume performance of the function Iv intiate actions to establish a new contract, it is assumed that a performance bond, (as ,tipulated in the RFP) would provide financial support for these actions. Task G: Develop Quality Assurance Surveillance Plan The Business Office, with input from the functional area Subject Matter Experts, will be responsible for developing -the QASP. The QASP describes the process by which the City will monitor the selected service provider against the performance standards described in the SOW. The QASP details. several methods for quality assurance as well as the frequency for conducting quality reviews. The City will develop a QASP for each competition, will review each QASP annually for continued appropriateness, and will update the QASP as needed to reflect the best practices in quality assurance and current realities within the City. The QASP should define an approach for the following: • Communicating deficiencies to the service provider • Implementing action plans to deal with the deficiencies • Taking corrective action when the action plan is not followed and/or resolved Also, the QASP should outline a process for notifying Purchasing if: 9IPage • The service provider fails to take corrective action in a timely manner • The contract manager deems the service provider to be in default or that default is imminent • The contract requires modifications or change orders (All modifications or change orders that increase contract value will go before the City Manager for approval) The QASP is a managerial document and will not be included as part of the solicitation provided to bidders. Task H: Advertise Final Solicitation Once the SOW Team and Purchasing finalize the solicitation, Purchasing will advertise the solicitation and distribute the RFP consistent with existing City guidelines and methods for issuing solicitation documents. Purchasing will advertise the RFP in the City's official Publication of Record, which is currently the Yakima - Herald Republic, and on the City Web page for contracting opportunities. The City will allow the Employee Proposal Team and other prospective bidders to submit questions regarding the final solicitation. The time period for questions will be specific to each competitiorh If Purchasing determines that a response is required, Purchasing, with assistance from SOW Team members as required, will draft the necessary addendum, notify all registered potential service providers of such, and publicly post the addendum on its website. • Task I: Conduct Pre - proposal Meetint Once the RFP is publicly released, Purchasing ma conduct apre- proposal meeting to clarify the solicitation process and answer questions from potential bidders. If appropriate, as part of the pre - proposal meeting, the Empkyee PropoN1 Team and independent service providers may be provided an opportunity to toil/ City facilities or view City- furnished property. Verbal discussions at the meeting "e not considered official or binding. Any changes to the solicitation will be made by addendum. I. PHASE III: EMPLOYEE PROPOSAL PREPARATION AND DEVELOPMENT A City Department shall be pr with an opportunity and resources to develop efficiency and effectiveness improvements in their operations as part of the Department's proposal. The Employee Proposal Tearrr.will analyze existing business processes and develop a more efficient organizational structure that is sustainable and capable of performing the tasks presented in the SOW. The Employee Proposal Team is responsible for developing both a technical and a cost proposal in response to the RFP. Task J: Develop Employee Team Technical Proposal The Employee Proposal Team will develop their most efficient and effective proposal based on the requirements defined in the RFP. City employees involved in Managed Competition will be provided with resources —such as information, technical assistance and staff support—to develop strategies for optimized efficiency, economy and effectiveness, in order to respond to a 10IPage solicitation. To the extent permitted by law, appropriate confidentiality will be maintained to ensure that information related to the development of an employee bid is not exposed to private sector competitors. The Employee Proposal Team will provide a detailed description of the staffing, organization, equipment, facilities and technical approach to meeting the requirements, terms and conditions established in the RFP. In its proposal, the Employee Proposal Team may propose using subcontracts in the performance of tasks and activities detailed in the RFP. Task K: Develop Employee Team Cost Proposal The Employee Proposal Team Cost Proposal is the total cost for City performance of the work described in the SOW. RECEIVE PROPOSALS Purchasing will receive and log all proposals (those submitted by independent contractors and the Employee Proposal Team). When proposals, are received by Purchasing, the proposals are effectively under the control of the Purchasing, Manager. All bidders shall comply with the submittal date and time as specified in the RFP. Purchasing will reject any proposals that are received after the established deadline including the employee proposal. PHASE IV: SOURCE SELECTION ' 2 The Evaluation Team will evaluate the proposals and will make a recommendation to the City Manager on the service provider that offers thelbest overall value to the City. The City Manager will accept or reject in total tlak'Evaluation team's recommendation and will submit the decision (it~ it is to award a contract` with an independent contractor) to City Council for approval. City Council will accept or reject the recommendation in total. In determining whether tea. proposal of an independent contractor or City Department will provide a service to the City most economically and efficiently while maintaining service quality and protecting the public interest, the Evaluation Team will consider the following factors: (1) Whether the proposals py_ the City Department and the independent contractors are responsive tothe solicitation and the bidders are responsible (2) Whether there is reliable information demonstrating that any of the independent contractors bidding on the work have engaged in unethical business practices that would warrant the rejection of their proposal (3) Which independent contractor or City Department can provide the best overall value to the City The Evaluation Team will not necessarily recommend the low bidder, as the low bidder may not be the party that is presenting the most responsible and responsive bid (i.e., the low bidder may not always be the party that can provide the best and most reliable service to the City, perhaps because the low bidder has less experience or lacks the proven track record. The 11 (Page evaluation team will recommend the most responsive bidder providing the best overall value to the City. If the Evaluation Team determines that an independent contractor meets the minimum contract standards and provides the best overall value to the City according to the factors set forth above, the Evaluation Team shall recommend to the City Manager that the contract be awarded to that independent contractor. The Evaluation Team's recommendation to the City Manager shall include a written explanation providing the rationale for its recommendation. Task L: City Manager's Recommendation Upon receipt of a recommendation from the Evaluation Teanithat'a City service should be awarded to an independent contractor, the City Manager shall either accept or reject that recommendation in its entirety. If the City Managgrr accepts the recommendation, then the City Manager shall notify all labor organizations whose members would be affected by such an agreement. ar The City Manager will then forward that recommendation to the City Council. That recommendation shall include a written recommendation and a transition strategy that addresses contract monitoring, service interruption, and affected employee procedures, as well as a proposed agreement with the independent contractor. Task M: City Council Approval The City Council shall have the authb ii��ty to accept or reject in its entirety any proposed agreement with an independent contractor submitted joy the City Manager. When the City Council approves a contrac'fwith an independent entity, the City Manager or his designee will ensure that all relevant stakeholders are notified, including, but not limited to, the Human Resources Departtent, and the applicable labor organization(s). If a service is awarded to an independent,contraccor through Managed Competition, impacted employees in the Classified Service will not be precluded or hindered from accepting employment with the independent contractor. PHASE V: TRANSITION AN POST - COMPETITION ACCOUNTABILITY Once the competition is complete, a seamless transition to the new service providers or delivery of services is critical. After the transition has taken place, the City must monitor the performance of the selected service provider to ensure performance requirements and cost expectations are met. Task N: Implement Transition Plan Once the best overall value service provider is selected, the Transition Plan contained in the successful proposal will be implemented. This plan will have provided a detailed description of the changes in staffing, equipment, materials, service levels or processes required to meet the commitments in their technical and cost proposals. The appropriate Department Director must identify the City's tasks and subtasks that need to occur for a smooth transition, including the 12IPage primary persons responsible, and expected completion dates. The service provider will be allowed a transition period to phase in the new service delivery system(s). The SOW will dictate the specific timeframe for the transition period. There are several key issues to consider when implementing the transition plan including: • Labor Actions — Regardless of the outcome of the competition, if the Department must reduce the number of employees, a formal reduction -in -force must be undertaken in accordance with City of Yakima Civil Service Rules and/or applicable Collective Bargaining Agreements. • Budget Changes - Budget changes for the current Pascal year should be promptly prepared and processed for approval by the City Council. G • Purchases/Investments - Any significant purchases or investments that are required to implement the service provider's technical proposal or that were specified in the SOW should be processed as soon asp feasible or on the timeline outlined in the technical proposal. The Department Director is responsible for developing a strategy to communicate the transition plan to departmental employees. Task O: Monitor Service Provider Performance The City Manager shall have the sole resppnsibility f administering and monitoring any agreements with contractors. The City Manager shall be required to produce annual performance audits for contracted services, the cost of which must -be accounted for and considered during the bidding process. _ ■ For independent service provider performance the City will appoint a Contract Manager who will be responsible for day-to-day acontract administration. The Contract Manager will establish a regular schedule and form` t for the status and effectiveness of the contract. When appropriate forte service', the City wiH conduct a customer survey to establish a baseline for customer satisfaction, d well as a mechanism - for customers to formally provide feedback on the quality of services rec`ived. In addition to performing regular inspections, the Contract Manager should investigate all = complaints to determine whether they are valid in that they fail to comply with some provision of the contract. The customer feedback should be reviewed and summarized semi - annually to _determine whether customer expectations are being met. If complaints are made frequently on the same or similar issues, the department should immediately initiate con action with the independent service provider. The City will be responsible for monitoring the costs of the Employee Proposal Team or independent service provider on a monthly basis. The Contract Manager will be responsible for approving independent service provider's invoices and notifying Purchasing of any discrepancies. The City Manager will receive quarterly updates on the cost performance of either the Employee Proposal Team or independent service provider to ensure that they are meeting the terms established in their cost proposal. Corrective action may be necessary if the City determines that costs and performance levels do not meet the committed levels, the action plan to correct these deficiencies has not been 13IPage followed and /or issues have not been resolved. Corrective action must be consistent with the guidelines established under the terms and conditions in the contract. As noted earlier, the guidelines should include specific details regarding the basis for declaring non - compliance, notification methods for non - compliance, length of time to correct any deficiencies, and penalties involved. A A a e 14IPage EXHIBIT A: EVALUATION TEAM The City Manager shall establish the Evaluation team to advise the City Manager whether a City Department's proposal or an independent contractor's proposal will provide the services to the City most economically and efficiently while maintaining service quality and protecting the public interest. The City Manager will appoint at least five (5) members to the Team, who shall serve without compensation. Each shall have professional experience in dine or more of the following areas: finance, law, public administration, business management, engineering or the service areas under consideration by the City Manager. Su *lh appointees shall not have any personal or financial interests which would create conflict of interests with the duties of a Team member. Confidentiality and Conflict of Interest A conflict of interest statement shall be signed by all members of the Evaluation Team. • - 15IPage EXHIBIT B: MANAGED COMPETITION ROLES AND RESPONSIBILITIES The following table illustrates the specific roles and responsibilities of each team or individual that will participate in the City's Managed Competition Program. A clearly defined set of roles and responsibilities is an important step to ensure the successful execution of the complex managed competition process. The information given in this document should serve as a baseline from which team members can establish an understanding of expectations for themselves and their colleagues. Although the nature of effort needed from team members may change and the level of effort needed from team members may vary throughout the competition process, this document is presented to avoid confusion and duplication of effort. The establishment of roles and responsibilities at the oet of these competitions will reduce redundancy and/or minimize any loss of time due to the misunderstanding of team member roles. • J. ` ,„ A \ 16IPage Competition Role Participants Roles and Responsibilities M anaged CiyM anager Caned bn The CiyM anagerdnall: OfE alMCO) • Devebp the Pielinbaxy90W . • D evebp the Commum±arms Pan . • E strEish C can peacbn Scher I l'. • Support90 W and Em pbyee Proposal devebpn alt. • C oordiate required addribss hazing f om one phase of the can petitnn process to the nett. • D e ebp the Q A SP . Providedoaxn entcontrolicrguiielnes,negulrlicns,ald othen tguicing /etrE doaun eats. • Seiactqcprcpriste f nctinns for can petit bn • Ream m and m an biers of the E valraticn Teem • Upon roa?tt of a contact aaard =um andatbn firm the Evaliatbn Tin , ether aIt or letct that raxan m e ndatbn in is alt±r. If the C iy M a><xger amts the risc. m e ndatbn, than the C iyM anrdnalLfcra aid thatrccom m ardat bn to the C iy C ouncil E A m ininurn of The EvalnabcnTeem dull five 5), • M ake an aN and Iscan m e ndatbn bad on bland costpmposils iisceiosd by the C iy. rt T a3 appoint,rcl by • The E valbat bn T can S bFstovert]lval ie =cm m e ndadb � n ID the C iyM anager aa nclide a the CM write exphrnatbn for is moan m e ndaticn rat±nale in a decisbn down ant C ityC ounciL C ouncnlm an has The C ityC ouncalthall • H ave the azthoriy tD a:ceptormjsct, it is entiy, azypmposal agnssnn ant w ih an iidEpandant contractor skim ill to than ,by the CiyM aiager, asai Otofaawnpet±bn. • Appmvebudgetand sszvi changes asappmpriate. 171 Page Pmcuran entStaff Purchasing Staff The Prom= entStaff • A s i n devebpsig (as appropriate) and approve the SO W and otherRFP docun ants n advance of thejrie. • A dvtabge the sostamn . • 7mue addenda as . • C onductpre- pmposalm eetii qnpmpriate) . • Taibr the s.lstian pip= to rsi ianclu nstnmi 'Pre the mstof the pm sbr the Cityaswellaspmqpect leoanpedDzs. • Be responsbh rportis of corn petijon proos to halide wntravtagaid. • FoIbw bid pmt P. • Setup purchase ardors. • Coordinate an endhn cots. SOW D epartrn cot The SO W Te3n beclerthall Devebpmant H ead of the • Pmvr3e the mazes aid tithing nea xy topiepamaoanprtrn,iie a)W brthefincti±n(s). Tcan Lead aft • Coordhate and mandeveb inentoftheSOW . departm ant (or • V ali3ate the'SO and verify that the stated ro auian ants and ssmvre b eb are those necessary to donee) aoaanp] othLfnnc tiins and/or isoftheactkrilysib L:Ltooranpet n • Struc rre the SO W sa it per orrn anted and the ides and m i n alts fielded io the SO W ate quantibb and attaioabb. • Prpvileance tcNheP the corn pe t±n. • A ssbt ii, the devebpm Entofevaliatioric±teria for tnfin ral nmpo appropralE io mlataan to the SOW,rr m ants. A • • 181 ag e Competition Role Participants Roles and Responsibilities A fftected The SO W Tce n drallbe indeoandantofal Em obvse Propo a1Tean men begs SO W T can D qoartrn ant • M ake thaldete m rations for rove nt ory of C iy-fi s Shed fazaiides, equiorn ant, sarrbee, and Em pbyees tri ay uti`titi . f irclyde : • D eaebp the SO W incl.rding the de?eb 1n arto f twin tal rs r i sn ants, perform ante standards, anpbyEe(s) and tecnniale hbis. rqDresaited by the • D grin ire appJrabb ins and directives(inclacThg e nvimnm antal, sscuriy, and custom er labor ruin irarn ants) . a oiyacl'17atbns, • Provide input for th ebpmantofotherSOW requiem antsof the sn n . conaLltantslaT, reioxztatliesof Pt irc a ,Financial • M anagan ant/ AudiDrs, Human Resarnes The E m pbyee Pmpo sal T can Led dial. Em pbyee Proposal D lied= of the • E th 1th sin ]1=. tin allies and budgrt for the an pbb proposal devebbxri ent Tears Lead Actirily, • D eisjnatem en begs of the tmpboPmposalTearl D ) (or • Pmviie the Fumes and bthii g neoesEaly to piepaie a oen petit an pbyee propos=11 • -C oorzlirate aIl is of the an pbysepmposaalsrclr ing the de ebpm antof the en pbyeepmpos ac ,rdanr -ith the for the fi mrbn Lql l me iermm ran • • D e ebp, certify, and represent the an pbyeepmpoFal • V alit ate the ability of the an pin proposal to ty the neciuthErn eats of the SO W and oertiiy the , r to corn m itto the qpproach/respuroes identified n the an pbyse proposal • C ertify thatthe oasts idcbded it the en pby sepmposalam cal:Liked. in a oordanaew ih the SD Icitdon instr uctinns • V ablate thatfundirg s avai'hbb to aipport the aostofprepaciag the an pbysepmposal 19I1'agc Competition Role Participants Roles and Responsibilities Em pbyee Proposal Aft The Em pbyee Proposal T e3n dian: T cem D epartm it • H elo Beatify eat y en pbyze proposal data °DILL -bin racial:an eats and collsctdata. Em pb s tray • Amain theca n pm pietbn oftheenpb7 pmposalbydevebplig pinceEs procludarly halide in proven ants. A iadependantof • Ressa pesonneldassziashon EirilliEM eats to m eetthe so]r atbn reclaim sits. the SO W tin • A aziam atered, sipp]ics, and cnju . n altmguiran sits to m e=tthe snlbiadon requirern ants, etc. EM pb (s) • Incl the an pbyeepmposalall4oplabh can ponants outbnei n the RFP . nepresen tai boor • Rece ize asaSlaace through the of one nan ei ropxesentaifueofe:dn bbororgan_izatbn orgaijZ3tions, lavolied n them mnsLlbntstaff, a-l- can psi:1:bn efbrtsaviag as anon -votngadvsortothe iteClY itat sof enpb � pat dN rag the Em pb e Proposal Ten Florida" M amen eat/ Audtois, Personrnel,) Labor - I o LiaLbn adv is a - 20 !Pa ge EXHIBIT C: NON - DISCLOSURE AND CONFIDENTIALITY AGREEMENTS Non - Disclosure and Confidentiality Agreement By and Between the City of Yakima and (City Employee) This Non - Disclosure and Confidentiality Agreement (hereinafter, "Agreement ") is made and effective the of , 20_, by and between the City of Yakima, (hereinafter "the City" and a City Employee (hereinafter, Employee). WHEREAS, the City possesses certain information (hereinafter, Confidential Information) related to the City's Managed Competition Program (hereinafter, Program); said information is confidential and proprietary to the City; and WHEREAS, the City desires to disclose Confidential Information to Employee to allow Employee to participate in the Program, pursuant to the terms of this Agreement; and WHEREAS, Employee desires to receive disclosure of Confidential Information to allow Employee to participate in the Program, as a [select one] Member of a Statement of Work Team/Member of an Employee Proposal Team, as more fully described herein, pursuant to the terms of this Agreement; NOW THEREFORE, for the mutual consideration contained herein, the City and Employee agree as follows: 1 Purpose and Intent of Agreement/Mutual Consideration. The City is committed to delivering quality services to taxpayers, residents, and visitors in the most economical and efficient ways possible. Managed competition is the process for determining whether City services can be provided more economically and efficiently by an independent contractor than by persons employed in the classified service of the City, while maintaining service quality and protecting the public interest. Managed competition is a structured, transparent process that allows public sector employees to be openly and fairly compared with independent service providers (normally private sector firms) for the right to deliver services. The Program involves a Solicitation Development phase during which a team, including City employees, shall develop the Statement of Work (hereinafter, SOW) and the Request for Proposal (hereinafter, RFP). This team shall be designated herein as the SOW Team. The Program also involves the Employee Proposal Preparation and Development phase, in which a team of City employees, with advice from City labor organization representative(s), shall develop the employee response to the RFP. This team shall be designated herein as the Employee Proposal Team. The City and Employee acknowledge and agree that participation in the Program by the parties is mutually beneficial. Further, the City and Employee acknowledge and agree that the integrity of the managed competition process is contingent upon the development and implementation of certain safeguards and procedures to avoid the potential for ethical conflicts and abuses between the Solicitation Development and the Employee Proposal Preparation and Development and between Employee Proposal Preparation and Development and preparation of proposal documents by outside entities. Specifically, the potential for abuse from knowingly or 21 (Page unknowingly causing or gaining unfair advantage from access to information, or the ability to affect the selection process for personal gain must be understood and avoided. The City and Employee acknowledge and agree that Employee's involvement in the Program as a [select one] Member of the SOW Team/Member of the Employee Proposal Team requires the implementation of safeguards and procedures to avoid the potential for ethical conflicts and abuses and to ensure that no elected official, City employee, or other person shall provide procurement sensitive information to any potential contractor. The City and Employee acknowledge and agree that this Non - Disclosure and Confidentiality Agreement is a means to ensure the implementation and protection of the Firewall. Employee acknowledges and understands the inpportance of complying with this Agreement, and agrees to comply with the Agreement as a term and condition of employment. 2 . Definitions. For purposes of this Agree defined terms are as follows. — Authorized persons shall mean any City employees designated in writing by the City Manager or City Manager's representative as authorized persons. Such designations shall be made in accordance with the Managed Competition Guide and applicable law. If Employee is a member of the SOW Team, authorized persons shall be other members of the SOW Team. If Employee is a member of the Employee Proposal Team, authorized persons shall be other members of the Employee Proposal Team. Unaut rized persons include all other persons, whether or not employed by the City, except wheresignated otherwise. — Confidential Information shall mean any and all information possessed, discussed, and/or obtained from, by, and /or throughtEmployee`s involvement in the managed competition process as a member of the SOW Team or a - tember of the Employee Proposal Team. Confidential Information shall include, but no be limited to,�`any and all data, materials, products, technology, computer programs,u specification , manuals, business plans, software, marketing plans, financial information, an other information disclosed or submitted, orally, in writing, or by any other media, to Employee in connection with the Program. Confidential Information shall include, but not be limited to, documents regarding pre-competition assessments, development of a SOW, or preparation of an RFP. Confidential Information shall include any and all of the aforeventioned docum`ants, whether or not marked as Confidential, Procurement Sensitive, Privileged, or similar designation. Confidential Information shall also include any ideas or information generated by Employee as part of Employee's involvement in the Program, as a member of the SOW Team on the Employee Proposal Team. Information or ideas generated by Employee as part of Employee's involvement in the Program are considered to be the intellectual property of the City, whether -or not the information or ideas are reduced to writing. Consistent with applicable law, Confidential Information shall be broadly defined in favor of a finding of confidentiality. — Firewall is defined as a separation of communication, data, and responsibilities between the SOW team, the Employee Proposal Team, and outside entities. The SOW Team shall develop the SOW and members of the SOW Team may assist in selecting the appropriate service provider. The Employee Proposal Team shall develop the employee proposal in response to the RFP. A firewall shall be created between the two employee teams to ensure that a level playing field exists between the Employee Proposal Team and any independent service providers interested in responding to the RFP. 3 . Protection of Confidential Information /Employee's Duty of Non - Disclosure. 22IPage To facilitate the Program, the City intends to disclose to Employee the Confidential Information necessary for Employee to engage in the Program as a member of the SOW Team or a member of the Employee Proposal Team. Employee acknowledges and agrees to take all steps necessary to hold in confidence and protect from disclosure to unauthorized persons, as defined herein, the Confidential Information obtained, received, or otherwise disclosed to Employee through Employee's participation in the Program. Employee shall not disclose, disseminate, publish, or otherwise reveal the Confidential Information, by any means, including but not limited to verbal or written dissemination or disclosure of documents, to any unauthorized persons. Employee shall take all steps reasonably necessary to protect the established Firewall until the Firewall is no longer necessary, as determined by the City's undersigned Appointing Authority. Employee shall not use the Confidentitf'l Information other than for the purposes of Employee's business with the City. Employee shall return all Confidential Information received in written or tangible form, including copies, or reproductions or other media containing such Confidential Information, immediately upon the request of theCity. Employee's duty of confidentiality and non - disclosure of Confidential Information under this Agreement shall not prohibit Employee from communicating or otherwise interacting with other City employees or others not on.Employee`s designated team (SOW Team or Employee Proposal Team), so long as Employee mktitains the Firewall as to Confidential Information. Nothing herein shall require the City to discl'bse any of its information. 4. Term. • The duties of Em to ee e rein shall corftinue until the Confidential Information disclosed or otherwise in possession ssession of, 'E mployee is no longer deemed to be confidential by the City Manager r or City Manager's representative. 5. No Implied Waiver. Either party's failure to insist in any one or more instances upon strict performance by the other party of any of the terms of this Agreement shall not be construed as a waiver of any continuing or subsequent failure to perform or delay in performance of any term hereof Further, this Agreement shall not be construed to infringe any constitutionally or statutorily protected rights of Employee. The confidentiality and non - disclosure conditions of this Agreement are intepded to function as reasonable regulations intended to further the City's ability, as an employer; to promote the efficiency of the public services it performs through its employees. 6. Governing Law. This Agreement shall not prohibit disclosures required by law or court order. 7. Remedies for Breach. Employee understands that any breach of this Agreement may result in discipline up to and including termination. In addition to any administrative remedies that may be available to the City, the City reserves the right to pursue any legal or equitable remedies, including but not limited to equitable relief as may be necessary to protect the City against any breach or threatened breach of this Agreement. 23IPage S. Final Agreement. This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both parties. 9. No Assignment. Employee shall not assign this Agreement or any interest herein without the City's express prior written consent. 10. Severability. If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had nefer been. included. 11. Headings. Headings used in this Agreement are provided for convenience only and shall not be used to construe meaning or intent. 12. Counterparts. This Agreement may be signed in two counterparts, each of which shall be deemed an original and both of which together constitute one agreement. WHEREFORE, the parties acknowledge that' they have read and understand this Agreement and voluntarily accept and agree. to the duties and obligations set forth herein, as evidenced by their executionzof this AgreemEnt. ■ Signature N`. - Signature City Employee ` • Appointing Authority/Designee - C y of Yakima , Print Nam Print Name Date Date City Department Program Team Catalogued by: Print Name Date 24IPage Non - Disclosure and Confidentiality Agreement By and Between the City of Yakima and (Non -City Employee) This Non - Disclosure and Confidentiality Agreement (hereinafter, "Agreement ") is made and effective the of , 20 by and between the City of Yakima (hereinafter, "the City") and An employee and representative of [name of organization] (hereinafter, ►ton -City Employee). WHEREAS, the City possesses certain information (hereinafter, Confidential Information) related to the City's Managed Compet ion Program (hereinafter, Program); said information is confidential and proprietary to the City; d WHEREAS, the City agrees to discloseonfidential Information to Non -City Employee to allow Non -City Employee to participate(n the Program, as more fully described herein, pursuant to the terms of this Agreement; and WHEREAS, Non -City Employee desires to receive disclosure of Confidential Information to allow Non -City Employee to participate, in the Program, pursuant to the terms of this Agreement; NOW THEREFORE, for thee mutual consideration contained herein, the parties agree as follows: .. . 1 Purpose and Intent of Agreeme utual € onsideration. The City is committed to delivering quality service4 to taxpayers, residents, and visitors in the most economical and efficient way' ossible. Managed competition is the process for determining whether City services can be prodded more economically and efficiently by an independent contractor than byepersonsemployd in the classified service of the City, while maintaining service quality and protecting the public interest. Managed competition is a structured, transparent process that allows public sector emplQees to be openly -end fairly compared with independent service providers (normally private sector firms) for the right tr i'deliver services. The Program invol$,ps' a Solicitation Development phase during which the City's Business Office shall lead a temp, including City employees, to develop the Statement of Work (hereinafter, SOW) and the Request for Proposal (hereinafter, RFP). This team shall be designated herein asthe,SOWTeam. The Program also involves the Employee Proposal Preparation and Development phase, in which a team of City employees shall develop the Employee response to the solicitation. This team shall be designated herein as the Employee Proposal Team. The City and Non -City Employee acknowledge and agree that participation in the Program by the City and its employees is legally required and mutually beneficial. Further, the City has agreed that the Program will benefit from the advice of Non -City Employees as they fulfill their obligations as participants in the Program. The City and Non -City Employee acknowledge and agree that the integrity of the managed competition process is contingent upon the development and implementation of certain safeguards and procedures to avoid the potential for ethical conflicts and abuses between the 25 Wage Solicitation Development and the Employee Proposal Preparation and Development and between Employee Proposal Preparation and Development and preparation of proposal documents by outside entities. Specifically, the potential for abuse from knowingly or unknowingly causing or gaining unfair advantage from access to information, or the ability to affect the selection process for personal gain or gain for members of the Non -City Employee's organization must be understood and avoided. The City and Non -City Employee acknowledge and agree that Non -City Employee's involvement in the Program requires the development and implementation of certain safeguards and procedures to avoid the potential for ethical conflicts and abuses and to ensure that no elected official, City employee, Non -City Employee, or other person shall provide procurement sensitive information to any potential contractor. Nothing in this 'Agreement shall be construed to mandate that a Non -City Employee shall serve as an §dvisor to Member(s) of the Employee Proposal Team or mandate participation by the Non -(ity Employee in the Program in any other capacity. The City and Non -City Employee ackpwledge and agree that this Non - Disclosure and Confidentiality Agreement is the means to `ensure the implementation and protection of the Firewall. Non -City Employee acknowledges and understands the importance of complying with this Agreement, and agrees to comply with the Agreement. 2 Definitions. A For purposes of this Agreement, defined terms are follows. Authorized persons shall men any- City employees or other persons designated in writing by the City Manager or City ■ anage1's representative as authorized persons. Such designations shall be -made in accordanc with the Managed Competition Guide and applicable law. If Non -City Employee is. an advisor to a meml4r of the, mployee Proposal Team, authorized persons shall be m tubers of the Employee Prkosal Team. Unauthorized persons include all other individuals, whether or not employed by the Citx, except where designated otherwise. Confidential Inf> rnation shall mean Ay and all information possessed, discussed, and /off obtained from by, Nd/or through Non -Cif Employee's involvement in the managed competition process as an advisor to a member of the SOW or Employee Proposal Team. Confidential Information shall include, but not bZ -limited to, any and all data, materials, products, technology, computer pi4grams, specifications, manuals, business plans, software, marketing plans, financial information,_and other information disclosed or submitted, orally, in writing, or by any other media, to Non -City Employee in connection with the Program. For the purposes of this agreement, Confidential Ir 'ormation shall include, but not be limited to, documents regarding pre- competition assessments, Statements of Work, Business Process Reengineering studies, or development of a proposal. Confidential Information shall include any and all of the aforementioned docum nts, whether or not marked as Confidential, Procurement Sensitive, Privileged, or similar designation. Confidential Information shall also include any ideas or information generated by any member of the SOW or Employee Proposal Team. Information or ideas generated by members of the SOW and Employee Proposal Teams are considered to be the intellectual property of the City, whether or not the information or ideas are reduced to writing. Consistent with applicable law, Confidential Information shall be broadly defined in favor of a finding of confidentiality. Firewall is defined as a separation of communication, data, and responsibilities between the SOW team, the Employee Proposal Team, and outside entities. The SOW Team shall develop the SOW and members of the SOW Team may assist in selecting the appropriate service provider. The Employee Proposal Team shall develop the employee proposal in response to the RFP. A firewall shall be created between the two teams to ensure that a level playing field 261Page exists between the Employee Proposal Team and any independent service providers interested in responding to the RFP. Non -City Employee is defined as a consultant, labor representative, or other individual who is appointed, employed, or otherwise engaged to provide assistance to the SOW or Employee Proposal Team, but not both. Labor representatives may serve as advisors to the Employee Proposal Team members and shall not participate in the SOW Team as members or advisors. 3. Protection of Confidential Information /Non -City Employee's Duty of Non - Disclosure. To facilitate the Program, the City intends to disclose to Non -City Employee Confidential Information necessary for Non -City Employee to engage -in the Program, as an advisor to members of the Employee Proposal Team. Non -City Employee acknowledges and agrees, to take all steps necessary to hold in confidence and protect from disclosure to unauthorized persons, as defined herein, the Confidential Information obtained, received, of otherwise disclosed to Non -City Employee through Non -City Employee's participation in the Program. Non -City Employee shall not disclo §e, disseminate, publish, or otherwise reveal the Confidential Information, by any means, including but not limited to verbal or written dissemination or disclosure of documents, to any unauthorized persons. Non -City Employee shall take all steps reasonably' necessary to protect the established Firewall until the Firewall is no longer' necessary, as determined by the City's undersigned Appointing Authority. Non -City Employee shall not 114e the Confidential Information other than for the purposes of Non -City Employee's business with the. - City. Non-City Employee shall not duplicate the Confidential Information, except upon authorization and approval of the City's undersined Appointing Authority. Non-City shall return all Co?ifidential Information received in written or tangible form, including copijes, or reproductions qj other media containing such Confidential Information, immedia ely upon'the request of"the City. Non -City Emp`i yee`s duty of confidentiality and non - disclosure of Confidential Information under this Agreement shall not prohibit Non -City Employee from communicating or otherwise interacting with others not on 'the SOW or Employee Proposal Teams, so long as Non - City Employee maintains the Firewall as to Confidential Information. Nothing herein shall require the City to disclose any of its information. 4. Term. The duties of Non -City Employee herein shall continue until the Confidential Information disclosed or otherwise in possession of Non -City Employee is no longer deemed to be confidential by the City Manager or City Manager's representative. 5. No Implied Waiver. Either party's failure to insist in any one or more instances upon strict performance by the other party of any of the terms of this Agreement shall not be construed as a waiver of any continuing or subsequent failure to perform or delay in performance of any term hereof. Further, this Agreement shall not be construed to infringe any constitutionally or statutorily protected rights of Non -City Employee. Non -City Employee acknowledges and agrees that the confidentiality and non - disclosure conditions of this Agreement are reasonable 27IPage regulations intended to further the City's ability, as an employer, to promote the efficiency of the public services it performs through its employees. Non -City Employee acknowledges that it is entering into this Agreement, as a representative of City employees. 6. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of California. This Agreement shall not prohibit disclosures required by law or court order. 7. Remedies for Breach. The City reserves the right to pursue any legal or equitable remedies, including but not limited to equitable relief as may be necessary to protect City: against any breach or threatened breach of this Agreement. The City also reserves the right to disqualify the Non -City Employee from participation in the Program, following a breach of this Agreement. 8. Final Agreement. l This Agreement terminates and supersed" all prior understandings or agreements on the subject matter hereof. This Agreement maybe` modified only by a further writing that is duly executed by both parties. 9. No Assignment. Non -City Employee shall nit assign this Agreement or any interest herein without City's express prior written consent. 10. Severability. 1 If any term of this Agreement keld by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, inclurng all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included. 11. Headings. Headings used in this Aveement are pro \jded for convenience only and shall not be used to construe meaning or intent. 12 Counterparts. This Agreemen -?ay be signed in two counterparts, each of which shall be deemed an originai and both of whicf- together constitute one agreement. WHEREFORE, the®,,parties acknowledge that they have read and understand this Agreement and voluntarily acept and agree to the duties and obligations set forth herein, as evidenced by their execution of this Agreement. By: ` Signature Signature Non -City Employee Appointing Authority/Representative C t y of Yakima Print Name Print Name 28IPage Date Date Catalogued by: Print Name Date . V � 1 `\ C M � VIA ter � I 29IPage EXHIBIT D: MANAGED COMPETITION I COST COM N PARISO GUIDE I CITY OF YAKIMA ..., > a l 1064 ++�t 1 ! .. . • I i il� ' I \' 1 i xx • COST OMPARISON GUIDE , _ a,i. • ! . 30IPage Document Organization The Cost Comparison Guide provides the user with a description of the cost elements that are used for cost proposal development and facilitation of cost comparisons. It is organized as follows: • Introduction — The introduction provides the overall purpose of the document, and describes how the document is organized. • Using the CCT — This section includes a description of all of the cost information that should be included in the CCT for Employee Proposal Team cost proposal development and the overall process and considerations for: o Establishing employee cost proposals using the CCT. o Conducting a fair and level cost comparison of employee cost proposals and cost proposals received from oude entities. • Tool ownership and maintenance - The section describes the process involved in updating tables and standard variables within the CCT. INTRODUCTION ®" The City of Yakima (City) is c`Qmmitted to delivering quality services to taxpayers, residents, and visitors in the most economical and efficient way possible. This commitment can also be expres d as delivering services through competitive government defined as a government with ppcesses in place to validate that service quality and costs are as good as, or sup rior to, any legitimate provider available. The City's Managed Competition Progra Is designed to help the City achieve this commitment. I Managed competition is a structured, transparent process that allows public sector employees to be openly and fairly compared with independent contractors (normally private sector firms) for the right to deliver services. This strategy recognizes the high quality and potential'of public sector employees, and seeks to tap their creativity, experience and resourcefulness by giving them the opportunity to structure organizations and processes in ways si?nilar to best practices in competitive businesses, yet still compatible with public sector realities. To determine costh for the City of Yakima, the City created the City's Costing Tool (CCT) with the following objectives: • Develop the baseline cost estimate for delivering the services associated with a particular function or functions. • Guide the Employee Proposal Team through the process of creating a cost proposal in response to a Request for Proposals. • Facilitate cost comparison between the Employee Proposal Team cost proposal and the private sector bids. 31 (Page Purpose The City of Yakima's Managed Competition Cost Comparison Guide has two purposes. First, it provides an overview of how the Employee Proposal Team will develop their cost proposal. Second, it describes the City's methodology for developing fair and accurate comparisons between cost proposals developed by the Employee Proposal Team and cost proposals received from outside entities in response to a Request for Proposals The Evaluation Team will utilize information from the Cost Comparison Guide to calculate the difference between the costs that are saved and the costs that are generated by contracting the service. USING THE CCT The CCT is divided into two sections, one i used by the Employee Proposal Team to construct proposal cost estimates (this module is also used by the City for baseline cost calculation) and another is used by the City'to' facilitate the cost comparison. This section provides an overview of using the CCT. Developing the Cost Proposal The Employee Proposal Team will develop the cost proposal in the CCT based upon the technical proposal to respond to the 'Statement of Work SOW). Where possible, values included in the proposal represent budgeted amoznts. Care 'shall be taken to ensure that the value for each particular cost is only counted once in the proposal total. The items entered into the NT to develop the employee, bid include:" • Classified Personnel „Costs — Any Classified personnel costs that will be part of the employee bid is fo be ircluded, including salary, fringe overtime, and any special pay. ° • Unclassified Personnel Costs — Any unclassified personnel costs that will be part of the employee "bid is to be included, including salary, fringe, and special pay. • Other Department Support'Costs — To be included in analysis. Overhead rates are to be applied. • Supplies and Materials — Any materials and supplies that will be consumed during the peiformance of the work being bid through the employee proposal. • Services — Any ervice contracts that the employee team will use to perform tasks being bid through the employee proposal. • Equipment/Minor Items — Any equipment and minor items that are not City furnished that will be used to perform tasks being bid through the employee proposal and, as appropriate, the costs of replacement. • Rent — Any rent that is paid for land or building space that will be used to perform tasks being bid through the employee proposal. • Travel — Any travel funds that will be used to perform tasks being bid through the employee proposal. 32IPage • Energy and Utilities — Any energy and utility bills that support the tasks being bid through the employee proposal. g P P • Data Processing — Any information technology related expenses that the employee team will incur. • Facilities — Costs related to City -owned facilities and properties used to perform the tasks being bid through the employee proposal. • Property and Capital Improvement — Property and capital improvements that will be required to perform the work being bid through the employee proposal. • Service Growth - Assumptions regarding service growth should be clearly stated in the technical proposal and reflected in the..Fmployee Proposal Team cost proposal. • Transition - Any transition costs that may be required to implement the employee proposal. Standard values, definitions, and formulas are used for some aspects of cost proposal development. They are as follows: • Hours worked - The number of productive hours for the City will be based on an average of the past three consecutive years of actual productive hours charged to salaries /wages account at the time the bid proposal is being prepared. • Inflation - Inflation for PersonnQl Expense tP.E) will be calculated using the most current information on'''general salary increases stipulated in the Collective Bargaining Agreement (CBA)'.tt the time of the bid: If the CBA expires prior to the term of the contract, the PE inflation rate will be based upon the most recent year's Co Price Index (CPI) for the Western States Urban Area. Conducting the Cost Cgomparison All casts that will be required to fulfill the terms of the contract resulting from a competition must be reflected in all bids (employee and outside), including administrative, monitoring and transitional costs. The bids will be evaluated based on the full contract term (i.e., ithe contract is expected to be for four years, the full four -year cost will be compared rather than colts for one year alone). In addition, there are some costs that, may be added to a Bid in order to appropriately level all bids • Revenue imparts - Any change in revenue to the City must be taken into account in the cost comparison. Contracts may provide new revenue to the City or may cause a decrease in revenue to the City. These revenue impacts should be applied during the cost comparison phase. • Annual Performance Audits - The City will identify costs of conducting annual performance audits for contracted services. • Avoidable/Unavoidable Costs - Avoidable costs are direct and indirect costs which would be reduced or eliminated if a service currently provided by the City were to be provided by contract. Unavoidable costs are the costs the City incurs regardless of whether a service is provided by the City or by a contractor.. 33IPage Avoidable and unavoidable costs can only be evaluated on a case by case basis. • Continuing governmental costs - The City will identify staffing and equipment costs that need to remain within the City to support the performance of the service (with employees or an outside entity) that will result from the competition. • One -time conversion costs - The City will apply any other one -time conversion costs as necessary to account for any one -time costs that will be incurred as a result of managed competition. Because conversion costs are incurred by the City and represent a cost concern, they must be taken into account when making a cost comparison decision. 4 A - t , • 34Ipage