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APPROVE A MOTION AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT EXTENSION FOR TEMPORARY STAFFING AND RELATED SERVICES WITH ACRO SERVICE CORPORATION THROUGH A COOPERATIVE PURCHASE AGREEMENT WITH U.S. COMMUNITIES GOVERNMENT PURCHASING ALLIANCE
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion authorizing the City Manager to execute a contract extension for temporary staffing services with ACRO Service Corporation (ACRO) through a Cooperative Purchase Agreement with U.S. Communities Government Purchasing Alliance (U.S. Communities), and to take appropriate and necessary action to carry out the purpose and intent of this agreement.
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Summary
Temporary staffing services are utilized by many different departments within the City of Stockton. Currently the City contracts for temporary staffing through ACRO, and the first contract extension will expire on December 31, 2021. The City’s demand for contractual employees has increased significantly due to the Enterprise Resource Planning (ERP) project.
In an effort to limit multiple staffing agreements with separate pricing and billing processes, and to reduce the overall administrative burden and cost of managing multiple vendor relationships, it is recommended that City Council authorize a 2-year contract extension for temporary staffing services with ACRO through a Cooperative Purchase Agreement with U.S. Communities.
DISCUSSION
Background
The City often utilizes temporary skilled workers for short-term staffing needs in clerical, professional, technical, and construction work, and this need has increased due to the ERP Project. To address the City’s temporary staffing needs, the City of Stockton has contracted with ACRO Service Corporation since 2012, eliminating the use of multiple staffing agencies. ACRO contracts with local staffing agencies to provide temporary staffing services; thereby being a single point of contact to access multiple agencies. Since entering the contract with ACRO, the City gained efficiencies with the temporary staffing program by reducing the administrative burden of managing multiple temporary staffing contracts with separate staffing resources, pricing, and billing processes.
The existing Cooperative Purchase Agreement is provided through ACRO and Maricopa County Office of Procurement Services (Attachment A). The original 3-year contract ended on December 31, 2019, and was extended for an additional two years, expiring on December 31, 2021. On May 20, 2021, the Cooperative Purchase Agreement was extended again for an additional two years, with an expiration date of December 31, 2023. The City of Stockton may terminate the agreement with ACRO at any time with written notice.
Findings
In accordance with Stockton Municipal Code Section 3.68.070, the following findings are provided in support of using a cooperative purchase agreement for temporary staffing services:
1. ACRO Service Corporation was established through a competitive solicitation process conducted by Maricopa County in the state of Arizona. Since the City and Maricopa County are both members of U.S Communities, the City has direct access to this contract. Extending this contract will allow the City to continue to expand temporary staffing pools within the local area.
2. ACRO works with numerous federal, state, and local public agencies within the United States. Staff checked ACRO’s references and received exclusively positive feedback.
3. Approving a temporary staffing contract with ACRO through a Cooperative Purchase Agreement with U.S. Communities will likely result in overall cost savings due to their competitive pricing structure and the reduced staff time needed to manage multiple staffing vendors.
4. Contracting with ACRO will reduce the administrative burden of managing multiple temporary staffing contracts with separate points of contact, bill rates, and billing processes.
FINANCIAL SUMMARY
The City of Stockton spent approximately $274,510 in Fiscal Year 2019/2020 on temporary staffing services. In total, seven City departments used temporary staff during Fiscal Year 2019/2020. Departmental temporary staffing needs fluctuate from year to year based on staffing levels, projects, and other operational needs. Among the departments that utilize temporary staffing, these services are budgeted each year
It is anticipated that the recommended action will reduce costs because in most cases, the current maximum bill rate charged to the City is higher than the maximum bill rate charged by ACRO.
Attachment A - Cooperative Agreement with U.S. Communities and Maricopa County