To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Payment for Services Provided by The Indigo Project LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay $111,250 to The Indigo Project, a limited liability company, for providing consultation and technical assistance services with regard to the Behavioral Healthcare Infrastructure Project, for the months of May 1, 2025 through December 31, 2025, as recommended by the Health Services Director.
FISCAL IMPACT:
Approval of this payment will result in a one-time expenditure of up to $111,250 and will be funded 57% by Mental Health Services Act Fund revenues and 43% by Department of State Hospital revenues.
BACKGROUND:
Contractor’s unique knowledge of Contra Costa County’s needs and their unique combination of program planning and behavioral health managed care knowledge make them a valuable partner. The Behavioral Health Services Division (BHSD) has been contracting with The Indigo Project LLC since February 2022 to provide consultation, evaluation and technical assistance BHSD to identify Behavioral Health infrastructure needs and gather community input to prepare for State funding.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. The Behavioral Health’s Quality Management, Utilization Management and Contract Monitor Staff meet on a regular basis to ensure monitoring and performance measures in the Contract are upheld. This Contractor was approved by the Public Works Department’s Purchasing Division on October 22, 2024.
In November 2024, the Purchasing Services Manager approved and executed Contract #74-645-7 with The Indigo Project LLC, in an amount not to exceed $200,000, for consultation and technical assistance services with regard to the Behavioral Healthcare Infrastructure Project for the period June 1, 2024 through May 31, 2025.
On April 28, 2025, the Board of Supervisors approved Contract Amendment/Extension #74-645-8 with The Indigo Project LLC, effective January 1, 2025, to increase the payment limit by $150,000 to a new payment limit of $350,000, and to extend the termination date from May 31, 2025 to December 31, 2025, to continue providing consultation and technical assistance services with regard to the Behavioral Healthcare Infrastructure Project.
Due to an unanticipated increase in need for Contractor’s services, late billing by the Contractor, and administrative oversight, services were requested by the County without sufficient time to amend the Contract. Contractor provided these services in good faith, which exceeded the original payment limit by $111,250.
Therefore, the County has determined that The Indigo Project LLC is entitled to payment for the reasonable value of their services under the equitable relief theory of quantum meruit. That theory provides that where a person has been asked to provide services without a valid contract, and the provider does so to the benefit of the recipient, the provider is entitled to recover the reasonable value of those services. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $111,250 to The Indigo Project LLC.
CONSEQUENCE OF NEGATIVE ACTION:
If this payment is not approved, the Contractor will not be paid for services requested by BHSD and provided by Contractor in good faith.