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APPROVE A MOTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT EXTENSION FOR TEMPORARY STAFFING AND RELATED SERVICES WITH ACRO SERVICE CORPORATION THROUGH A COOPERATIVE PURCHASE AGREEMENT WITH U.S. COMMUNITIES
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 City’s demand for contractual employees has increased significantly due to the ERP project. 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. In addition, the City expanded its existing temporary staffing resources with numerous other staffing agencies in the local and regional area.
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 contract extension for temporary staffing services with ACRO through a Cooperative Purchase Agreement with U.S. Communities (Attachment A).
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.
the existing Cooperative Purchase Agreement expiration date, the City 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.
2. ACRO works with numerous federal, state, and local public agencies within the United States. Staff checked ACRO’s references and received nothing but 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.
5. The City will be able to expand its existing temporary staffing pool because ACRO contracts with numerous other staffing agencies in Stockton’s local and regional area.
FINANCIAL SUMMARY
The City of Stockton spent approximately $439,300 in Fiscal Year 2015-16 on temporary staffing services. In total, seven City departments used temporary staff during Fiscal Year 2015-16. Departmental temporary staffing needs fluctuate from year to year based on staffing levels, projects, and other operational needs. The departments that utilize temporary staffing, budget for these services each year. Over the last three fiscal years, the City has spent approximately $1,836,700 on temporary staff services. As such, it is important to identify ways to reduce costs and the administrative time that it takes City staff to manage and coordinate these services.
Taking the recommended action will not require additional funds to be appropriated for the Fiscal Year 2016-17. In fact, 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. The following table outlines the current temporary staffing positions used by the City and compares the current bill rate with the bill rate offered by ACRO for a sample two week period:
|
Position |
Current Bill Rate |
Current Cost for 80 Hours |
ACRO Not to Exceed Bill Rate |
ACRO Cost for 80 Hours |
|
|
|
|
|
|
|
Office Assistant I |
$17.25 |
$1,380.00 |
$17.03 |
$1,362.40 |
|
Office Assistant I |
$17.25 |
$1,380.00 |
$17.03 |
$1,362.40 |
|
Office Assistant I |
$17.25 |
$1,380.00 |
$17.03 |
$1,362.40 |
|
Revenue Assistant I |
$21.18 |
$1,694.40 |
20.98 |
$1,678.40 |
|
Legal Secretary I |
$26.00 |
$2,080.00 |
21.38 |
$1,710.40 |
|
Office Assistant I |
$15.84 |
$1,267.20 |
$17.03 |
$1,362.40 |
|
Facility Maintenance Worker I |
$16.54 |
$1,323.20 |
$16.36 |
$1,308.80 |
|
Tech Support Specialist II |
$26.40 |
$2,112.00 |
$28.90 |
$2,312.00 |
|
Tech Support Specialist II |
$31.84 |
$2,547.20 |
$28.90 |
$2,312.00 |
|
Systems Analyst I |
$28.69 |
$2,295.20 |
$27.53 |
$2,202.40 |
|
Office Assistant I |
$18.53 |
$1,482.40 |
$17.03 |
$1,362.40 |
|
Janitor |
$19.73 |
$1,578.40 |
$19.49 |
$1,559.20 |
|
Janitor |
$19.73 |
$1,578.40 |
$19.49 |
$1,559.20 |
|
Total |
|
$22,098.40 |
|
$21,454.40 |
Based on the table above, the City would save approximately $644 every two weeks, or approximately $16,744 annually, if it currently used ACRO.
Attachment A - Cooperative Purchase Agreement with ACRO and City
Attachment B - Competitive Bid Process with Maricopa County, Arizona
Attachment C - Competitive Bid Process with Maricopa County, Arizona Q & A
Attachment D - Contract with U.S. Communities and Maricopa County