PROPOSAL:

Execute Contract to Conduct Performance Audit of AQMD for
FY Ending June 30, 1997

SYNOPSIS:

Health and Safety Code Section 40453 requires the AQMD to contract every three years with a qualified auditing firm to conduct a performance audit of AQMD activities. The Board approved the issuance of an RFP in March 1997, and this action is to award the contract to Thompson, Cobb, Bazilio & Associates at an amount not to exceed $136,900. Funds for this service are available in the FY 1997-98 Budget.

COMMITTEE:

Administrative, May 23, 1997, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract effective July 1997 with Thompson, Cobb, Bazilio & Associates for performance of the triennial performance audit for the year ending June 30, 1997 at a total not to exceed $136,900.

James M. Lents, Ph.D.
Executive Officer

Background

On March 18, 1997, the AQMD released RFP #9697-38 for the triennial performance audit for FY ending June 30, 1997. The Health & Safety Code Section 40453 requires the AQMD to contract with a qualified firm once every three years to conduct a performance audit of the AQMD’s activities. The first audit was awarded in July 1991; the second audit was awarded in July 1994. The objective of the performance audit is to evaluate AQMD compliance with laws and regulations, economy and efficiency of operations, and effectiveness in achieving program results. The evaluation will take into consideration the findings of the performance audit done in 1994 and recommendations adopted thereafter. The activities within the AQMD Work Program for FY ending June 30, 1997 will be the foundation for the performance audit.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications: The Black Voice News, Chinese Daily News, Eastern Group Publications, El Chicano, The Excelsior, Inland Hispanic News, Inland Valley Daily Bulletin, Korea Central Daily, La Opinion, La Voz, Los Angeles Sentinel, Los Angeles Times, M/W/DVBE Source, Orange County Register, Philippine News, Precinct Reporter, Rafu Shimpo, Riverside Press-Enterprise, San Bernardino Sun, and California State Contracts Register. Additionally, potential bidders were identified using the Los Angeles County MTA, and Cal Trans Directories of Certified Minority, Women Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; the AQMD’s own electronic listing of certified minority vendors; and the AQMD Purchasing’s mailing list. Copies of the RFPs were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

One hundred four notices were mailed notifying firms of the proposed RFP. A Bidders’ Conference was held on April 1 at which there were ten attendees. Five proposals were received in response to the RFP when final bidding closed at 1:00 p.m. on April 25, 1997. Of the five bids, none were from disabled veteran-owned business enterprises, none were from women-owned business enterprises, three were from certified minority-owned businesses, and none were from noncertified minority-owned business enterprises.

The evaluation process involved two steps. Proposals were first evaluated using technical criteria which included: responsiveness to the RFP, project management and technical approach, and previous experience. Proposals receiving scores of at least 70 out of 100 points were considered technically qualified. Next, the technically qualified proposals were evaluated using the criteria of "Cost and Other Factors" which included cost, local business designation, and MBE/WBE/DVBE designation. Using this two-step selection process, the proposal from Thompson, Cobb, Bazilio & Associates received the highest overall score. The evaluation results for the bidders are as follows:

*Proposal includes a 20% subcontract to a women-owned or minority-owned firm.

**Did not meet minimum technical score.

Panel Composition

The panel consisted of Curt Coleman, Attorney, representing the California Manufacturing Association Southern California Air Quality Alliance; Linda Waade, Executive Director, Coalition for Clean Air; Mark Dubeau, Budget Manager, Orange County Transportation Authority; Edwin Pupka, Senior Enforcement Manager, AQMD; Rick Pearce, Director of Finance, AQMD; and Geri Koerner, Financial Analyst, AQMD. Of these six panelists, two are women and four are men. Additionally, one of the panelist is an Asian Pacific Islander, and five are Caucasians, none of the panelists are Native Indian, Hispanic American, Black American, or Asian-Indian.

Proposition 209 Compliance

It is AQMD policy to award additional points or cost benefits to minority-owned, woman-owned, and/or disabled veteran-owned business enterprises. On November 5, 1996 California voters approved Proposition 209 which prohibits discrimination or granting preferential treatment based upon race, ethnicity, color, sex or national origin in the operation of public employment, public education, or public contracting. (Proposition 209 does not address disabled veteran-owned business enterprises.) On December 16, 1996, the Federal District Court issued an order applicable to all government agencies in California prohibiting enforcement of Proposition 209. The December 16, court order has been reversed by an appellate panel; however, a motion for rehearing has been filed and the stay continues in effect. Therefore, the AQMD’s existing policy remains in effect. Should the status of the law change at any point during the process of issuing an RFP or RFQ or entering into a contract pursuant to a previously issued RFP or RFQ, the AQMD will abide by the law in effect at the time the action is taken and any RFP or RFQ will be deemed modified to comply with existing law and any provisions in conflict with existing law will not be enforced.

Resource Impacts

Sufficient funds for this project have been budgeted for FY 1997-98.

AQMP & Legal Mandates

Health & Safety Code Section 40453

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