To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment/Extension #23-538-15 with Allegis Group Holdings, Inc. (dba TEKsystems, Inc.)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract Amendment/Extension Agreement #23-538-15 with Allegis Group Holdings, Inc., a corporation, effective April 1, 2024, to amend Contract #23-538-13 (as amended by Amendment Agreement #23-538-14), to increase the payment limit by $14,000,000, from $12,000,000 to a new payment limit of $26,000,000, and to extend the termination date from December 31, 2024 to December 31, 2026 for additional temporary candidacy services and/or direct placement candidates for Contra Costa Health’s (CCH) Information Systems Unit.
FISCAL IMPACT:
Approval of this amendment will result in additional expenditures of up to $14,000,000 and will be funded as budgeted by the department in FYs 2024-26, by 100% by Hospital Enterprise Fund I revenues. (Rate increase).
BACKGROUND:
Allegis Group Holdings, Inc. (dba TEKsystems, Inc.) has provided qualified contract-to-hire and (or) direct placement candidates for hard-to-fill positions in the Information Systems Unit since March 1, 2013. The department has utilized these services due to the lengthy recruitment process to employ adequately qualified candidates and formulate a certification list. The department previously conducted a bid process for temporary staffing services, awarding three separate vendors with temporary staffing contracts: Bayside Solutions, Inc., Allegis Group Holdings, Inc. (dba TEKsystems, Inc.), and Cactus Resource, LLC. The department has considered conducting a new Request for Proposal bid process to supplement the contracts. Consecutive renewals of this contract are rooted in the continued deliverance of high-quality candidates, many of whom have become full-time employees with the county. This contractor has an extensive healthcare practice from which they can expeditiously source qualified candidates when needed. The contract was expended sooner than budgeted due to another department’s utilization, resulting in this amendment to add funds and extend the term. On January 11, 2022, the Board of Supervisors approved Contract #23-538-13 with Allegis Group Holdings, Inc. (dba TEKsystems, Inc.), in an amount not to exceed $8,000,000 for the provision of qualified contract-to-hire and/or direct placement candidates for hard to fill positions in the CCH Information Systems Unit, for the period from January 1, 2022, through December 31, 2024.
On February 28, 2023, the Board of Supervisors approved Amendment Agreement #23-538-14 with Allegis Group Holdings, Inc. (dba TEKsystems, Inc.), effective March 1, 2023, to increase the payment limit by $4,000,000 to a new payment limit of $12,000,000 for additional temporary candidacy services and/or direct placement candidates for the Information Systems Unit, with no change in the term.
Approval of Contract Amendment/Extension Agreement #23-538-15 will allow the contractor to provide additional temporary staffing services and/or direct placement candidates through December 31, 2026. This contract includes services provided by represented classifications and the County has met its obligations with the respective labor partner(s).
CONSEQUENCE OF NEGATIVE ACTION:
If this amendment/extension is not approved, the department will not have vital access to qualified candidates in hard-to-fill positions in its Information Systems Unit. The result may be a negative impact on business objectives and outcomes, ultimately leading to a detrimental effect on the quality of patient care.