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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: March 1, 2005 <br />Action Agenda <br />Item No. J <br />SUBJECT: Cost Allocation Plan Contract <br />DEPARTMENT: Finance <br />ATTACHMENT(S): <br />Contract <br />Letters from MAXIMUS <br />PUBLIC HEARING: (Y/N) No <br />INFORMATION CONTACT: <br />Ken Chavious, ext 2450 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider approving a contract with MAXIMUS, Inc. for the preparation of <br />Orange County's Cost Allocation Plan. <br />BACKGROUND: Office of Management and Budget Publication A-87 requires counties <br />receiving federal funds to develop a Cost Allocation Plan annually. Preparation of this plan <br />qualifies the County to receive reimbursement for local resources used to administer certain <br />State and Federally funded programs. In addition, the Cost Allocation Plan is a tool used by <br />staff in developing the full cost of providing certain services, MAXIMUS, formerly operating as <br />David M, Griffith and Associates, has provided this service to the County for many years with <br />minimal increases in cost, The work performed has generated significant revenue far the <br />County, <br />MAXIMUS is currently working on a project for the Town of Chapel Hill, During the Town's <br />consideration of the firm, several issues surfaced regarding alleged improprieties involving <br />MAXIMUS's performance under contracts far the State of Wisconsin's Department of Workforce <br />Development in 2000 and New York City's Human Resources Administration in 2001. There <br />were also articles in the local media regarding MAXIMUS and its proposal to perform services <br />for the Town. After investigating the situation, the Town decided to continue tc contract with the <br />firm, since the divisions of the company that were involved in the Wisconsin and New York <br />situations were totally separate and apart from the divisions providing services to the Town. <br />Attachments to this abstract include a letter written to Chapel Hill Town Manager Cal Horton, by <br />Rachel Rowland, Regional Vice President for MAXIMUS. The letter addresses the incidents <br />mentioned above. <br />Similar to the Chapel Hill situation, the work that has been performed by MAXIMUS for the <br />County is also performed by a different division than those mentioned above,. Another <br />attachment to this abstract is a letter from Dianne Mazo, Senior Manager with MAXIMUS, who <br />personally has prepared Orange County's Cost Allocation Plan for the past six years. As <br />