REPORT TO COUNCIL
SUBJECT
Title
Approve NOVA as America’s Job Center of California (AJCC) Operator for NOVA Workforce Development Area
Report
BACKGROUND
The federal authorizing legislation for NOVA, the Workforce Innovation and Opportunity Act (WIOA), stipulates the roles and responsibilities of the American Job Center one-stop operator for the local workforce development system. WIOA further specifies that, unlike previous authorizing legislation, the one-stop operator must be competitively procured.
California State Directive WSD16-14 provides additional clarification on the role of the one-stop operator, referred to as the America’s Job Center of California (AJCC) Operator, and procurement requirements. The directive stipulates that the function of the one-stop operator includes: coordinating the service delivery of required one-stop partners and service providers, and ensuring the implementation of partner responsibilities and contributions agreed upon in the Memorandums of Understanding-Phase I and II. The directive also specifies that although the intent of WIOA is for Local Boards to procure their AJCC Operators through an open competitive process at least once every four years, the Uniform Guidance allows for alternate procurement methods, if substantial justification is provided. If the local workforce board (NOVA Workforce Board) or administrative entity (NOVA) serves as the one-stop operator through a competitive bid process or by sole source procurement, the local workforce board/administrative entity is expected to seek approval from the Chief Elected Official (CEO) (Sunnyvale City Council for NOVA) and the Governor, must comply with the CEO’s local procurement policies and procedures, and ensure that firewalls are in place to address any potential conflict of interest. For many years, under former authorizing legislation, NOVA has served as the one-stop operator for the NOVA workforce development area.
In order to respond to the new requirements under WIOA and State Directive WSD16-14, on November 30, 2016, the NOVA Workforce Board approved of competitively procuring the AJCC Operator function to an organization or individual/consultant. A Request for Qualifications (RFQ) for the AJCC Operator was first released in January 2017 and, due to a lack of response from prospective bidders, was released a second time in February 2017. The consultant, Hilary Goodkind dba Cenetri Group, was awarded the contract in response to the second bid, which was approved by the Council at its June 6, 2017 meeting. The consultant is completing the requirements of the contract for fiscal year 2017/18, but is unable to continue providing this service through the term of contract (6/30/19) and needs to cease providing services effective July 1, 2018 due to other competing commitments.
EXISTING POLICY
Council Policy 5.1.1: Socio-Economic - Goals and Policies: Education and Training Goal 5.1F: Provide job training and employment services, within constraints of operative Federal regulations and available Federal funding, to address the locally-determined employment and training needs of economically disadvantaged residents and others with special needs.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental, organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
NOVA staff reviewed options for approaching the AJCC Operator function, following the completion of the current Operator’s contract that ends June 30, 2018, and is recommending that it directly serve as the AJCC Operator for the NOVA workforce development area through sole source procurement. NOVA would coordinate the service delivery activities of the AJCC required partners and service providers by convening and facilitating quarterly partner meetings to ensure effective delivery of services to shared customers.
This recommendation is based on several factors: 1) insufficient qualified sources to provide the AJCC Operator function; 2) the public exigency or emergency for the requirement to provide the AJCC Operator function will not permit a delay resulting from competitive solicitation; 3) City of Sunnyvale service-delivery policies; and 4) NOVA would be the superior choice to serve as the Operator, based on its history of outstanding performance:
1) Insufficient qualified sources: In the high cost environment of Silicon Valley, with low unemployment and poverty resulting in low WIOA formula funding allocations for the NOVA workforce area, the pool of potential organizations interested in bidding on the small amount of funding that is available for the AJCC Operator service ($15,000/per year) would be relatively small and insufficient for a competitive procurement. This was confirmed during last year’s competitive procurement for this service. In addition, the complex mandates under WIOA often discourage potential bidders from applying to operate WIOA-funded services. There are insufficient qualified sources to provide AJCC Operator activities and, as such, it is recommended that NOVA seek approval to directly provide this service through sole source procurement.
2) Public exigency or emergency: The consultant is completing the requirements of the contract for fiscal year 2017/18, but is unable to continue providing this service through the term of contract (6/30/19) and needs to cease providing services effective July 1, 2018. In order to avoid a cessation of services to NOVA’s clients, it is necessary for NOVA to serve as the AJCC Operator. Furthermore, due to insufficient qualified sources there would be even a greater delay resulting from continuing the competitive solicitation process.
3) City of Sunnyvale service-delivery policies: Sunnyvale City Council Policy Manual 7.3.6 establishes guidelines for considering alternative methods of service delivery according to superior value and defines superior value as better service at lower cost; better service at equal cost; or equal service at lower cost. In order to factor in the intangible benefit of providing services by City staff (the vested interest of employees working directly for the City, the speedier response to City concerns, direct control of employees, etc.), as well as an added cost of delivering services by contract (contract administration), the cost or service differential for an outside bidder should exceed 10% in order to meet the test of superior value. Given NOVA’s superior services provided at a significantly lower cost than comparable entities, the prudent decision is for NOVA to directly serve as the AJCC Operator for the NOVA workforce development area.
4) NOVA Performance: NOVA has over thirty years of demonstrated experience and expertise meeting and exceeding its performance measures in delivering the highest quality and most beneficial mix of career services at the NOVA Job Center in Sunnyvale to Silicon Valley’s residents and employers. It has routinely received high scores in all of its customer satisfaction surveys in the services it provides to customers and in its approach and customer service it employs to deliver these services. It also works closely with and encourages active participation of all sectors in the community in the provision of such services. NOVA is knowledgeable of and complies with WIOA and other local, state and federal policies and regulations. Funding is prudently expended and NOVA has never had any disallowed costs. It is doubtful that any organization could come close to providing this level of quality services and achieve the same efficiencies that NOVA has achieved.
Additionally, the administrative/governance structure that oversees NOVA ensures internal controls and standards, enforcement of conflict of interest codes and policies, and necessary firewalls that will uphold the highest integrity and accountability for NOVA in serving as the AJCC Operator, as demonstrated in the City of Sunnyvale (CEO)’s exemplary and award-winning administrative and fiscal performance and in the NOVA Workforce Board high-performing board designation. Roles and responsibilities are further delineated and operationalized in the Joint Powers Agreement for the NOVA consortium, Workforce Board/Chief Local Elected Official Agreement between the Board and Sunnyvale City Council, Board Conflict of Interest Code, Board Bylaws and Board Standard of Conduct.
State Directive WSD16-14 requires that NOVA submit an application (Attachment 1) to the State seeking approval to be the AJCC Operator through sole source procurement, which must first be approved by the NOVA Workforce Board and the Sunnyvale City Council (CEO). Request for Approval to be America’s Job Center of California Operator represents NOVA’s application submission. The NOVA Workforce Board approved of NOVA’s request at its May 23, 2018 meeting.
FISCAL IMPACT
No fiscal impact.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Approve NOVA as America’s Job Center of California (AJCC) Operator for the NOVA Workforce Development Area.
Staff
Prepared by: Eileen Stanly, Analyst, NOVA
Reviewed by: Kris Stadelman, Director, NOVA Workforce Services
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Request for Approval to be America’s Job Center of California Operator