REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 18, 2025
FROM
PETE MENDOZA, Director, Purchasing Department
SUBJECT
Title
Purchase Orders for Prepaid Negotiables
End
RECOMMENDATION(S)
Recommendation
1. Authorize the Purchasing Agent to issue Purchase Orders for prepaid gasoline and retail cards for each of the vendors below, to be issued to eligible County clients by various departments, in an aggregate amount not to exceed $11,694,261, for the period of June 18, 2025 through June 17, 2030 with the following vendors:
a. InComm Digital Solutions, LLC dba InComm InCentives
b. GiftCard Partners, Inc. dba Engage2Reward, LLC
c. Blackhawk Network, Inc.
2. Approve annual distribution of prepaid cards exceeding $2,500 per fiscal year for County departments for a total aggregate amount of $11,694,261, as detailed in the Financial Impact section, for the term of the contracts.
3. Authorize the Purchasing Agent to terminate existing Agreement No. 21-929 with Blackhawk Network LTD, which is an auto-renewing agreement requiring termination notice, in favor of the Agreement listed in Recommendation No. 1.c.
4. Direct the Purchasing Agent to transmit the termination notice to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Pete Mendoza, Purchasing Director, 387-2073)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
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 additional Discretionary General Funding (Net County Cost). The majority of funding for prepaid cards is provided by Federal and State sources including Public Safety Realignment, 1991 Realignment, Mental Health Services Act, ongoing net county costs, the Independent Living Skills Program, and Assembly Bill 2766 (AB 2766). Contract amounts and spending levels will be contingent upon overall available funding. Departments will not exceed the annual budgeted dollar amounts listed below:
The Participating Department Annual Projected Spend is as follows:
|
Department |
2024-25 |
2025-26 |
2026-27 |
2027-28 |
2028-29 |
2029-30 |
|
Human Services Administrative Claim Departments |
$1,500,000 |
$1,500,000 |
$1,500,000 |
$1,500,000 |
$1,500,000 |
$1,500,000 |
|
Aging and Adult Service |
$63,750 |
$63,750 |
$63,750 |
$63,750 |
$63,750 |
$63,750 |
|
Behavioral Health |
$86,625 |
$86,625 |
$86,625 |
$86,625 |
$86,625 |
$86,625 |
|
Workforce Development |
$112,500 |
$118,125 |
$124,031 |
$130,232 |
$136,744 |
$143,581 |
|
Probation |
$115,000 |
$115,000 |
$115,000 |
$115,000 |
$115,000 |
$115,000 |
|
District Attorney |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
$30,000 |
|
Human Resources |
$26,133 |
$26,133 |
$26,133 |
$26,133 |
$26,133 |
$26,133 |
|
Total Authorized Distribution |
$1,934,008 |
$1,939,633 |
$1,945,539 |
$1,951,740 |
$1,958,252 |
$1,965,089 |
Sufficient appropriation and revenue are included in the individual departments’ 2024-25 and 2025-26 budgets and will be included in future recommended budgets.
BACKGROUND INFORMATION
Departments order prepaid cards primarily for issuance to clients as a supportive service to assist with program requirements or to assist victims of crime. State law mandates that counties provide transportation assistance to eligible clients to participate in mandated activities or upon client request. Approximately 94% of the total distribution is authorized for Human Services to comply with federal and state requirements. The majority of prepaid cards are for gasoline, enabling clients to attend meetings, doctor appointments, or job interviews. Prepaid cards are also issued as an incentive for participation in County employee benefit programs such as the County Rideshare Program.
On December 7, 2021 (Item No. 48), the Board approved Agreement No. 21-929 with Blackhawk Network LTD (Blackhawk) for prepaid gasoline and retail cards effective December 7, 2021, subject to termination by either party with 60 days prior notice, in an amount not to exceed $2,295,000.
Termination of the existing indefinite term Agreement No. 21-929 with Blackhawk will allow the County to issue purchase orders with updated terms and conditions to Blackhawk. Additionally, it will implement a defined five-year term instead of an auto-renewing agreement requiring termination notice. These changes better align with standard policy and terms and conditions, supporting the County more effectively. This action will also allow the County to issue purchase orders with InComm Digital Solutions, LLC. dba InComm InCentives (InComm InCentives), and GiftCard Partners, Inc. dba Engage2Reward, LLC (Engage2Reward).
The County Internal Controls and Cash Manual (Chapter 19) requires Board of Supervisors (Board) approval for the distribution of prepaid cards exceeding $2,500 per department, per fiscal year. Departments must obtain authorization from the Auditor-Controller/Treasurer/Tax Collector’s Internal Audits Division before purchasing and distributing prepaid cards.
PROCUREMENT
The Purchasing Department (Purchasing) released Invitation to Bid (ITB) AGENCY25-PURC-5654 on October 22, 2024, to solicit proposals from interested and qualified agencies to provide prepaid negotiables for a five-year period. The ITB was posted on the County’s Electronic Procurement Network (ePro).
Eight proposals were received by the established deadline in response to the ITB. Proposals from the eight agencies listed below met the minimum requirements and continued through the evaluation process.
|
Proposer Name |
Location |
|
InComm Digital Solutions, LLC dba InComm InCentives |
Minneapolis, MN |
|
GiftCard Partners, Inc. dba Engage2Reward, LLC. |
Wellesley, MA |
|
Blackhawk Network, Inc. |
Pleasanton, CA |
|
Group O, Inc. |
Milan, IL |
|
U.S. Bank National Association |
Los Angeles, CA |
|
GoGift A/S |
Valby, DENMARK |
|
Rellevate, Inc. |
Stamford, CT |
|
Giftogram LLC dba Giftogram |
Valby, DEN |
Purchasing reviewed the proposals based on cost and determined that InComm Incentives, Engage2Reward LLC, and Blackhawk best met the needs of the County. Award and denial letters were sent to all responsible and responsive proposers on April 24, 2025. No protests were received.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Adam Ebright, Deputy County Counsel, 387- 5455) on March 14, 2025; Purchasing (Leo Gomez, Purchasing Manager, 387-2063) on June 6, 2025; Adult and Aging Services (Dianne Vadnais, Staff Analyst II, 891-9032) on March 17, 2025; Human Resources (Jeanette Simonetti, HR Administrative Manager, 387-5622) on March 17, 2025; Behavioral Health (Melinda Nickleberry, Senior Program Manager, 387-0824) on March 17, 2025; Probation (Scott Nichols, Administrative Manager, 387-9610) on March 14, 2025; District Attorney (Karen White, Administrative Supervisor I, 387-3674) on March 14, 2025; Workforce Development (Erica Foster, Accounting Technician, 387-9887) on March 14, 2025; Human Services (John Hallen, Principal Administrative Analyst, 387-0208) on March 14, 2025; Finance (Kathleen Gonzalez, Administrative Analyst, 387-5412) on May 28, 2025; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on June 2, 2025.