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APPROVE A MOTION TO AMEND THE PRE-EMPLOYMENT BACKGROUND AND PERSONNEL INVESTIGATION SERVICE AGREEMENTS WITH THE GUMSHOE GROUP AND DR ASSOCIATES INTERNATIONAL
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement with The Gumshoe Group in the amount of $479,600 to provide additional preemployment background and personnel investigation services for a total contract amount not to exceed $689,600;
2. Authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement with DR Associates to reduce the not to exceed amount by $75,000 for preemployment background and personnel investigation services;
3. Authorize the City Manager to reallocate funds between preemployment background and personnel investigation agreements with DR Associates International and The Gumshoe Group as needed;
4. Authorize the expanded use of each agreement to include the Human Resources Department;
5. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The Fire, Police, and Human Resources Departments (SFD, SPD, & HR) require preemployment background investigations. On May 23, 2023, City Council approved motion 2023-05-23-1210 to award five-year professional service agreements with DR Associates International (DR) and The Gumshoe Group (Gumshoe) to provide pre-employment background and personnel investigation services for SFD and SPD. On November 11, 2023, Amendment No. 1 was executed to accommodate increased usage of the Gumshoe agreement.
It is recommended that City Council approve a motion authorizing the City Manager to execute Amendment No. 2 to the Gumshoe agreement for an additional $479,600, authorize the City Manager to execute Amendment No. 1 with DR Associates to reduce the contract amount by $75,000, re-allocate funds between the DR and Gumshoe agreements as needed, and authorize HR to utilize each agreement on an as-needed basis.
DISCUSSION
Background
SFD, SPD, and HR require preemployment background investigations and personnel investigation services. On December 1, 2022, SFD and SPD jointly advertised an RFP for background investigation services. HR was not included in the original solicitation request. Following a thorough evaluation process, DR Associates International and The Gumshoe Group were ranked as the two most qualified proponents.
On May 23, 2023, City Council approved motion 2023-05-23-1210 to award professional service agreements with DR and Gumshoe to provide preemployment background and personnel investigation services for SFD and SPD. Staff recommended a five (5) year agreement for an amount not to exceed $475,000 for DR and a five (5) year agreement for an amount not to exceed $100,000 for Gumshoe.
On November 11, 2023, Amendment No. 1 was executed using the City Manager’s delegated administrative contract change order authority, to accommodate increased usage of the Gumshoe agreement. Amendment No. 1 increased the Gumshoe agreement by $110,000, for a total not to exceed of $210,000.
Present Situation
At the time of contract award, SFD expected Gumshoe to serve as a supplementary vendor to boost service capacity and mitigate service interruptions in the event DR was unavailable. However, due to the high number of applicants needed for Fire Academy 23-1 and 24-2, SFD pivoted to an equal allocation between DR and Gumshoe to ensure all pre-employment processes were completed prior to the start of the academies. This strategic shift ensured all preemployment processes were completed prior to the start of the Fire Academies, but it also increased the total cost of background investigations for SFD.
SPD conducts in-house background investigations but is seeking to supplement these services to meet rising demand. SPD initially intended to utilize Gumshoe as a pilot program to assess the viability of outsourcing personnel investigation services. However, due to limitations on hours with part-time annuitant staff within the department, it became imperative to expand reliance on Gumshoe. Consequently, additional funds are needed to accommodate SPD’s increase in background investigations in recent months.
HR is responsible for conducting and managing personnel and workplace investigations. For supplemental assistance during labor negotiations and for high-level personnel investigations, HR is requesting authorization to utilize each agreement, on an as-needed basis, as scheduled by designated HR staff. Services include but are not limited to determining City policy and/or procedure violations.
Staff recommend authorizing the City Manager execute Amendment No. 2 to increase the Gumshoe agreement by $479,600 for a total contract amount not to exceed $689,600.00; and Amendment No. 1 to decrease the budget allocated for the DR agreement by $75,000 to offset a portion of the cost increase.
Staff also recommend authorizing the City Manager to reallocate funds between the Gumshoe and DR agreements as needed to address future capacity fluctuations between the two vendors and authorize the expanded use of each agreement to include HR.
FINANCIAL SUMMARY
The amended cost of pre-employment background and personnel investigation services with The Gumshoe Group and DR Associates for the five-year period is summarized below.
Total combined increase in contract cost of the agreements amounts to $514,600 over the next four years.
SFD has an approved annual budget allocation of $58,500 in General Fund Administration account 4010-000-630006-100-000-20-40-000-000- for pre-employment background and personnel investigation services. SFD will increase this allocation in its annual budget as needed in future years to fund the cost of the proposed agreements, subject to City Council approval.
Funding in the amount of $188,000 for SPD’s share of this contract amendment will be funded by General Fund Measure A account 3514-000-630006-100-115-20-35-000-000-.
Funding in the amount of $100,000 ($25,000 for each fiscal year of the remaining four years of the contract) for HR’s portion of this contract amendment will be funded by account 2550-000-630006-100-000-10-25-000-000.
Attachment A - The Gumshoe Group Original Agreement
Attachment B - DR Associates International Original Agreement
Attachment C - The Gumshoe Group Amendment 1
Attachment D - The Gumshoe Group Amendment 2
Attachment E - DR Associates International Amendment 1