REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 5, 2024
FROM
SHANNON D. DICUS, Sheriff/Coroner/Public Administrator
SUBJECT
Title
Amendment to Contract with Aramark Correctional Services, LLC for the Provision of Commissary Services to County Detention Facilities
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 5 to Contract No. 16-913 with Aramark Correctional Services, LLC, including a non-standard term, for the provision of commissary services to County detention facilities, at no cost to the County, extending the term by six months, for a new total contract term of December 6, 2016, through May 31, 2025.
(Presenter: Kelly Welty, Deputy Chief Director, 387-3760)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The commissary services are provided at no cost to the County. Revenue generated from this contract - based on a 38% commission of sales or a Minimum Annual Guarantee (MAG) of $2,750,000, whichever is greater - funds the cost of service and provides revenue to the Sheriff/Coroner/Public Administrator’s (Department) Inmate Welfare Fund (4420005167) in accordance with Penal Code section 4025, subdivision (a).
BACKGROUND INFORMATION
Penal Code section 4025, subdivision (a) establishes the authority for the Department to provide commissary services to inmates housed at the County’s detention facilities. Through these services, inmates and their families and friends can purchase personal care and food items. A percentage of the sales is deposited into the Inmate Welfare Fund to provide educational, vocational, and life skills programs for inmates.
Approval of Amendment No. 5 will allow for the continuation of commissary services in County detention facilities while the negotiations for a new contract are completed. The recommended extension to Contract No. 16-913 (Contract) will include a continued sales commission of 38% paid to the County by Aramark Correctional Services, LLC (Aramark) during the extension period of November 30, 2024 through May 31, 2025.
On December 6, 2016 (Item No. 69), resulting from a competitive bid process, the Board of Supervisors (Board) awarded the Contract to Aramark to provide commissary services for the period of December 6, 2016, through February 5, 2022, with the option to extend the term for two one-year periods or one two-year period. Revenue generated from this contract - based on a 43% commission of sales or a Minimum Annual Guarantee (MAG) of $2,750,000, whichever is greater.
On July 23, 2019 (Item No. 44), the Board approved Amendment No. 1 to the Contract with Aramark. Amendment No. 1 removed the cost of indigent kits to the County, removed the transactional internet cost from the computation of commissionable revenue, revised the termination date to coincide with the last day of the month (February 28, 2022) to allow for simpler computations of commission of sales, or MAG, and a more logical start date in case of transition between vendors, formalized the rectification process, and revised the “Schedule of Commissary Deposits and iCare Package Service - Handling Fees” to reflect these changes.
On February 8, 2022 (Item No. 56), the Board approved Amendment No. 2 to the Contract with Aramark. Amendment No. 2 extended the term of the Contract for a period of two years, for a new total term of December 6, 2016, through February 29, 2024.
On February 27, 2024 (Item No. 54), the Board approved Amendment No. 3 to the Contract with Aramark. Amendment No. 3 extended the term of the Contract for a period of three months, for a new total term of December 6, 2016, through May 31, 2024, allowing for completion of a new procurement process.
On May 21, 2024 (Item No. 91), the Board approved Amendment No. 4 to the Contract with Aramark. Amendment No. 4 extended the term of the Contract for a period of six months, for a new total term of December 6, 2016, through November 30, 2024. Due to the reduction in the average daily inmate population housed at the County’s detention centers, the Department and Aramark negotiated a reduction of the sales commission from 43% to 38% to take effect during the Contract’s extension period of June 1, 2024 through November 30, 2024.
Amendment No. 5 to the Contract with Aramark contains the following non-standard contract term that differs from the standard County contract language:
1. The total Contract term is 8 years and 5 months.
• The County’s standard contract term is five years, including any extensions.
• Potential Impact: Extending the contract term beyond five years may limit the County’s ability to preview new providers of commissary services and their capabilities; however, the Department believes extending the Contract is in the best interest of the County to allow for adequate time to complete the competitive procurement for new commissary services.
While this is a notable exception to the County’s standard contract language, the Department recommends approval of Amendment No. 5 to the Contract with Aramark through May 31, 2025, which County Counsel has reviewed and provided input on. Either party may terminate the Contract upon 180 days advance written notice.
PROCUREMENT
On August 30, 2023, Request for Proposal (RFP) No. SHR123-ADMSR-4897 was approved and released for Commissary Services. The Purchasing Department concurs that a non-competitive justification exists to extend the current contract allowing for uninterrupted services and to provide sufficient time to complete the negotiations for a new contract. County Policy 11-04 requires that contracts exceeding a five-year term must be approved by the Board.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Grace B. Parsons, Deputy County Counsel, 387-3403) on September 26, 2024; Purchasing (Jason Cloninger, Lead Buyer, 387-0321) on September 25, 2024; Finance (Erika Rodarte, Administrative Analyst, 387-4919) on October 17, 2024; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on October 18, 2024.