Agenda 01/12/2010 Item #10C
Agenda Item NO.1 OC
January 12, 2010
Page 1 of 3
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EXECUTIVE SUMMARY
Status report and
efficiency study.
request for further direction on proceeding with a comprehensive
OBJECTIVE: To obtain direction from the Board of Countv Commissioners on proceeding with
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contract negotiations with LeanBreakthru Consulting Group, LLC for a comprehensive study to
reduce costs and improve the agency's efficiency and effectiveness.
CONSIDERATIONS:
At its September 29, 2009 (item 5C) Board Meeting, the Board of County Commissioners
directed the County Manager to prepare and release a Request for Proposal (RFP) to
prospective consultants with the intent of obtaining proposals to assist in reducing costs and
improving the agency's efficiency and effectiveness on a contingent (pay for performance)
basis.
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RFP # 10-5378 was issued by the Purchasing Department on October 19, 2009. Email
notifications were sent to 364 firms. A total of 125 firms requested the full solicitation package;
the County received one (1) proposal and six (6) "no bid" proposals. Firms who chose not to
submit proposals offered the following comments:
. "Based on the published time-line, we do not think Collier County is prepared to move at
the pace required..."
. "The payment structure you have identified unfairly eliminates competition and does not
provide the county with optimal solutions..."
. Contingency based contracts are inherently risky for firms
The Selection Committee reviewed the proposal submitted by LeanBreakthru Consulting Group,
LLC, their references, and several responses to questions presented by the firm's owner. After
much discussion, the Selection Committee concluded that the proposal presented by
LeanBreakthru Consulting Group, LLC met the requirements of the solicitation, In summary, the
proposal would:
. Analyze key business processes with the intent to improve efficiencies, effectiveness
and result in cost reductions,
. Submit recommendations, and
. Offer contingency pricing (15% of identified and agreed upon cost savings)
The methodology proposed by LeanBreakthru Consulting Group, LLC utilizes the Lean
strategies to analyze key business processes and the organization required to most effectively
accomplish the work, It also seeks out redundancies and other "wastes" in the processes. This
approach evaluates the key business processes from beginning to end. Once the initial review
is conducted and priorities are identified, further analysis and problem solving approaches are
utilized to determine the recommended course(s) of action.
The Selection Committee has recommended that contract negotiations be pursued with
LeanBreakthru Consulting Group, LLC, and acknowledges:
. The process being offered by this firm is similar to the "Lean" process currently being
utilized by several County departments with in-house staff.
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Agenda Item No. 10C
January 12, 2010
Page 2 of 3
. Contrac.1 negotiations are c(ucial. The sc,,~,a and cost factors must be clearly identified,
While the finm offered a 15% contingency fee, their representative suggested that a
lump sum payment may be in the best interest of the County.
. While the Lean approach is a proven system, It takes both time and a consistent
commitment of County staff resources to optimize results. The consultant estimates
that it will take two years to fully implement all future state plans in every department in
everv area.
GROWTH MANAGEMENT: There is no growth management impact from this
recommendation,
FISCAL IMPACT: This RFP was solicited as a contingent based project - pay for perfonmance,
and no budget has been established. The consultant's fee (including consulting, travel, and
miscellaneous charges) will only be paid upon the successful implementation and realization of
tangible and documentable savings in the County's expenditures. Staff supports a contingency
fee contract, with a ceiling of "not to exceed" $150,000 without prior Board approval.
LEGAL CON~IDERATIO"'!2: This item has been reviewed by the County Attorney's Office, and
the proposed staff recommendations are legally sufficient for Board action. - CMG
RECOMMENDATIONS: That the Board of County Commissioners considers the options
outlined below and provides the County Manager or his designee with direction as to how to
proceed.
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Option 1: Enter into contract negotiations with the selected vendor for a percentage (%) payout
and a not to exceed dollar ($) amount.
Option 2: Enter into contract negotiations for a different, more advantageous arrangement for
Collier County, still preserving a contingency "pay for performance" payout (i.e. a fixed contract
price of $150,000 paid only when "agreed upon" milestones are accomplished),
Note: With Options 1 and 2, the results will be presented to the Board for their approval prior to
commencing engagement.
Option 3: Reject the proposal and direct the County Manager or his designee to continue with
the "lean" approach to business process improvement on a prescribed and expedited schedule.
PREPARED BY: Kim Grant, Senior Management & Operations Consultant, County Manager's
Office
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Agenda Item No, 10C
January 12, 2010
Page 3 of 3
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
10C
Meetinn DRte:
Status report and request for further direction on proceeding with a comprehensive efficiency
study, (Kim Grant, Corporate Planning and Performance Improvement, County Manager's
Office)
1/12/20109:00:00 AM
Prepared By
Joanne Markiewicz Manager - Purchasing Acquisition Date
Administrative Services
Division Purchasing & General Services 12/28/200911:42:35 AM
Approved By
Kimberley Grant Senior Budget Analyst Date
County Manager's Office Office of Management & Budget 12/28/20091 :05 PM
Approved By
Steve Carnell Director ~ PurchasinglGeneral Services Date
Administrative Services
Division Purchasing & General Services 12/28/20092:36 PM
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Len Golden Price Administrator ~ Administrative Services Date
Administrative Services
Division Administrative Services Division 12/28/20094:33 PM
Approved By
Jeff Klatzkow County Attorney Date
12/31/200910:33 AM
Approved By
Randy Greenwald Management/Budget Analyst Date
Office of Management &
Budget Office of Management & Budget 12/31/200910:41 AM
Approved By
Mark Isackson Management/Budget Analyst, Senior Date
Office of Management &
Budget Office of Management & Budget 1/4/201011:07 AM
Approved By
Leo E, Ochs. Jr. County Manager Date
County Managers Office County Managers Office 1/4/20104:29 PM
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