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Agenda Item # 13

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to approve the award of a contract to Free Life Enterprises for Substance Abuse Professional Services for five years.   The contract value for the five-year period is $400,000.

BACKGROUND:

The Federal Transit Administration Drug and Alcohol Regulations in Mass Transit require the services of a qualified Substance Abuse Professional when a safety sensitive employee violates the Department of Transportation (DOT) drug and alcohol regulations.   Since the inception of VTA’s Substance Abuse program in 1995, the services of a qualified SAP have been provided on a contract basis.  For the last five years the services have been provided by Free Life Enterprises.

The duties of the SAP include making a face-to-face clinical assessment and evaluation to determine what assistance is needed by the employee to resolve problems associated with alcohol and/or drug use and referring the employee to an appropriate education and/or treatment program.   The SAP also provides the employee and employer with recommendations for continuing education and/or treatment, including follow-up test plans.  The fees paid to date on the current five-year contract total $300,000.

DISCUSSION:

A Request for Proposals (RFP) was issued on July 12, 2004.   Eleven firms were sent copies of the RFP.  One firm, Free Life Enterprises, submitted a proposal.

The Contract Administrator performed a telephone survey of the firms who did not propose.   Two responded.  One indicated that they only sold SAP services when bundled with their Employee Assistance Program.  The other said they did not recall receiving the RFP, even though records show that it was sent to their correct address.

The evaluation committee reviewed the proposal.   The committee consisted of the Substance Abuse Program Manager from the Risk Management Department, the Contract Administrator and one representative each from the ATU, SEIU Local 715, and AFSCME.  The Proposer was evaluated on the basis of technical experience in performing work of this nature, staffing and project organization, demonstrated understanding of the project, cost and price and geographical location. 

The evaluation committee recommended awarding Free Life Enterprises with the contract for Substance Abuse Professional Services.   Free Life Enterprises has provided these services for over 17 years to public and private agencies, and for the last 5 years to VTA.  Other key factors in their selection were   cost and the accessibility of the Substance Abuse Professional facilities.  Free Life Enterprises did not request a price increase for their services.  This firm has performed satisfactorily on then VTA account for the last five years.

The fees for these services are based on a flat rate by type of service provided to an employee.   The proposed cost per employee referral, $600, is the same rate that has been in place for the last five years.  A price analysis performed by the Contract Administrator by surveying three similar providers, indicates that the referral fee charged by Free Life Enterprises is the average fee charged by their local competitors.  The estimated cost for Substance Abuse Professional services over the next five years is $ 400,000.

ALTERNATIVES:

There are no practical alternatives, as FTA regulations require that employees performing safety-sensitive functions be evaluated for the use of illegal drug and the misuse of alcohol.

FISCAL IMPACT:

Funds have been budgeted in the fiscal year 2004/2005 budget to cover the annual expenses.

SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION:

Based on the limited scope of work and lack of subcontracting opportunities, no specific goal has been established for this contract.   Contractor is encouraged to make reasonable efforts to utilize SBEs in its procurement of ancillary services and products associated with the performance of this contract.

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