HomeMy WebLinkAboutR-2012-122 Managed Competition Structured Process Adoption RESOLUTION NO. R- 2012 -122
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.
7 /41
Micah Cawl , Mayor
ATTEST:
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City Clerk' ' y : • • p * z i
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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
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
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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
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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.
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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
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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
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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
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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.
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(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
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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.
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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
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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:
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• 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
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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
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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.
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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
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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
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Date Date
Catalogued by:
Print Name Date .
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EXHIBIT D: MANAGED COMPETITION I
COST COM N PARISO GUIDE I
CITY OF YAKIMA
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COST OMPARISON GUIDE
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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.
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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.
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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.
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• Energy and Utilities — Any energy and utility bills that support the tasks being
bid through the employee proposal.
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• 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..
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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.
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