Agenda - 06-28-1994-IX-D - Laserfiche WebLink

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1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda -Q ACTION AGENDA ITEM ABSTRACT Item No. Meeting Date: June 28,1994 SUBJECT: BID AWARD/CONTRACT APPROVAL; FOOD STAMP ISSUANCE DEPARTMENT:PURCHASING AND CENTRAL SERVICES PUBLIC HEARING:YES: NO: % ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, ext.2650 or Contract Marti Pryor-Cook,ext 2800 Telephone Number- Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider approving a contract for distribution of food stamps. BACKGROUND: Food stamps are presently distributed in Orange County via direct mail through a contract with Cost Containment,Inc. In anticipation of the June 30,1994 contract expiration date, proposals were solicited from vendors certified by the State to provide such a service. Proposals were received from Office World,Lima,Ohio and from Cost Containment,Inc.,Raleigh. As the attached tabulation indicates,the lower bid for direct mail issuance was submitted by Office World at a cost of$A27 per issuance plus postage(.448 for Cost Containment). However, Federal regulations require a loss tolerance level for losses more than one half of one percent in direct mail distribution. Orange County exceeded this tolerance level during the last two quarters of 1993 and expects to be have to begin alternative distribution in the near future. H on-site distribution is necessary ,the lower bid was submitted by Cost Containment,Inc.at a cot of$1.1146 per issuance ($1.20 for Office World). Since it is likely that Orange County will have to move toward alternative distribution it seems prudent to award the bid based on this scenario. It should be noted that there may be significant savings by moving to alternative distribution since some of the processing cost would be eliminated. It is anticipated that alternative distribution would include a combination of both on-site and direct mail distribution. In the event on-site distribution is implemented,Cost Containment,Inc.will work with the Social Services Departmod to set up a schedule and a site or sites which is acceptable to the Director of Social Services. Any costs for facilities would be supported by Cost Containment,Inc. The State has reviewed the attached contract and has given verbal approval.Written authorization from the State is forthcoming. RECOMMENDATION: The Manager recommends approval of a contract with Cost Containment,Inc., Raleigh,NC.; and authorize the Chair to sign on behalf of the Board,contingent upon written approval of contract from the State.