To: Board of Supervisors
From: Dr. Ori Tzvieli, Interim Health Services Director
Report Title: Contract #27-875-9 with Clarity Software Solutions, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Interim Health Services Director, or designee, to execute on behalf of the County Master Services Agreement (Contract #27-875-9) with Clarity Software Solutions, Inc., a corporation, in an amount not to exceed $3,000,000, for hosted software and support services for Contra Costa Health Plan (CCHP) member communication materials for the period from June 1, 2025, through May 31, 2030, and for successive (1) year terms thereafter until terminated under the agreement.
FISCAL IMPACT:
This Contract will result in contractual service expenditures of up to $3,000,000 over a five-year period and will be funded 100% by Costa Health Plan Enterprise Fund II.
BACKGROUND:
This Contract meets the needs of CCHP by providing a Web System application to support the management, production, and presentment of CCHP member communication materials. CCHP requires a Document Management and Tracking system specially designed for producing, printing, and distributing Member communications that meet all federal and state regulatory requirements., Clarity Software Solutions, Inc.’s Web System application offers an end-to-end web-based software platform tailored to the unique compliance and operational needs of Medi-Cal and Dual Eligible Special Needs Plans (D-SNP) Medicare Advantage plans that can integrate into CCHP’s Electronic Health Records system, Epic. CCHP must comply with Centers for Medicare and Medicaid Services regulations outlined in 45 CFR Parts 422, 423, and 417 to ensure a compliant, and efficient, Member communication process. Additionally, under California’s Knox-Knee Health Care Service Plan Act (Health & Safety Code § 13431.5), CCHP must maintain an enrollment system that safeguards consumer protection and ensures seamless member onboarding. This contract will provide the needed Document Management and Tracking system for producing, printing, and distribution of Member communications to maintain mandated requirements by the CMS, the State of California Department of Managed Health Care Services, and the Department of Health Care Services.
This Contract supports CCHP’s requirement to produce, manage and present CCHP Member communication materials securely and in compliance with a Health Insurance Portability and Accountability Act of 1996 (HIPAA). This Contractor was approved on April 28, 2025, by Contra Costa County Public Works Department. A summary of service contract deliverables, including measurable outcomes required of the contractor to be monitored by the department in compliance with Section III(B)(7) of the Purchasing Policy (AB600.3), includes the creation, preview, and tracking of materials processed by the contractor and County’s use of the software as a service under the license grant, and access to maintenance and support. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations.
Under this Contract (27-875-9), the parties will execute Clarity Software Solutions, Inc’s Master Service Agreement (including the County's HIPAA Business Associate Addendum). Under this Contract Clarity’s liability is limited to the amount paid by County in the preceding twelve (12) month period, except for claims arising out of a breach of Confidential Information and Protected Health Information, and indemnification claims, which are subject to three times (3X) the fees paid or payable by County for the Services which form the subject of the claim. The Contract is governed by New York law. County has the right to terminate the Contract in the first 60 days if County finds that the Clarity information security systems aren’t satisfactory.
The initial term of this Contract begins on the effective date and will continue for five (5) years thereafter and automatically renew for an additional one (1) year terms(s) unless terminated as provided under the Contract. CCHP is requesting a retroactive effective date for this Contract due to delays caused by the Contractor not providing the contracting documentation in a timely manner.
Approval of this Contract #27-875-9, allows the contractor to provide services through May 31, 2030. Thereafter, the Contract renews for successive one (1) year terms unless terminated by either party per the terms of the Contract.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, CCHP will not maintain compliance concerning Medi-Cal and Medicare Advantage Members. Failure to implement this system will result in CCHP being completely unable to participate in D-SNP Medicare Advance resulting in County’s loss of state and federal funding.