Interoffice Memorandum
DATE: December 17, 2025
TO: Mayor Jerry L. Demings and County Commissioners
FROM: Carrie Mathes, FNIGP, CFCM, NIGP-CPP, CPPO, C.P.M., Manager II, Procurement Division
CONTACT: Ralphetta Aker McClary, JD, Director, Human Resources Division
PHONE: 407-836-5825
SUBJECT: Approval of Change Order No. 6, Purchase Order M110242, Innovation Lab Consulting Services
ACTION REQUESTED:
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Approval of Change order No. 6, Purchase Order M110242, Innovation Lab Consulting Services, with Creativity Effect, in the amount of $112,000, for the revised total amount of $257,651.56. ([County Administration Human Resources Division] Procurement Division)
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PROCUREMENT:
This change order will extend the services for the period of February 1, 2026 through September 30, 2026, to allow staff to complete the remaining training and associated design projects, which are currently approximately 86% complete. The extension ensures full implementation of the methodology and supports continued workforce development.
This is an ongoing innovation initiative to provide design thinking training and methodology to all 8,000 employees. These tools will assist with the development of new problem solving and community building methods that are people centered and driven by empathy. Due to the expanded scope and volume of services required to complete the initiative, pricing reflects a broader level of effort than the original engagement.
FUNDING:
Funding is available in account number 0001-025-0271-3194.
APPROVALS:
The Human Resources Division concur with this recommendation.
REMARKS:
On February 8, 2023, Purchase Order M110242 was issued to Creativity Effect in the amount of $89,999.82. Creativity Effect provides innovation lab consulting services utilizing Design Thinking methodology for operational problem solving. This approach is a preferred method for addressing organizational challenges and was partially introduced in the County through 2017 Visionary series.
Creativity Effect delivers human-centered design consulting to strengthen the County’s innovation and problem-solving capacity. Services include program design and facilitation, training, coaching for Human Resources leadership and Innovation Ambassadors, and the development of toolkits and certification pathways. The scope of work also includes evaluation frameworks and strategies to expand and sustain innovation practices countywide. The methodology is recognized for producing measurable improvements in capability growth, organizational reach, measurable impact, and long-term culture shift.
Earlier Orange County purchase orders with this vendor reflected an effective monthly cost of approximately $8,000 and supported a more limited scope of services focused on initial innovation lab development and foundational training activities. Since the original procurement, the scope and volume of services have expanded significantly to support the Mayor’s countywide innovation initiative. The current engagement includes expanded training delivery, embedded facilitation and coaching, development of internal innovation infrastructure and completion of remaining design projects.
As part of the price reasonableness review, staff evaluated historical pricing against inflationary impacts using Bureau of Labor Statistics Consumer Price Index (CPI), non-seasonally adjusted data, comparing the period when the original purchase order was issued in March 2022 to the current period. This analysis reflects an approximate 13 percent cumulative CPI increase over that timeframe. When considered in conjunction with the documented expansion in scope, and volume of services, and increased employee count served through this initiative, the current monthly rate of $14,000 represents a reasonable and justified adjustment from earlier engagements.
The change order amount reflects the continuation of Innovation Lab consulting services for an additional eight months and does not reflect a rate increase during the extension period. The additional time is necessary to complete the remaining work, ensure full integration of the methodology into departmental operations, and finalize all project deliverables as originally intended. Training is actively underway with department staff and has progressed substantially, with approximately 86 percent of the design thinking methodology curriculum completed to date. The remaining scope includes completion of training modules and applied design projects that introduce new methods of problem solving and operational improvement.
Orange County has expended $145,651.56 under this purchase order and change orders with Creativity Effect for substantially similar innovation lab consulting services. The current action allows the County to complete the remaining scope of work without disruption or the additional cost and delay associated with transitioning to a new provider. Based on the County’s prior pricing history, the expanded scope and volume of services, and consideration of inflationary impacts, staff has determined that the proposed pricing is fair, reasonable, and consistent with the level of services being provided.
In addition, staff considered the cost implications of delivering comparable services using internal resources. To replicate the scope and level of services currently provided through this engagement, the County would reasonably be required to establish multiple specialized positions, including an innovation or organizational development director, a learning and development program manager, a design thinking or facilitation specialist, and a design or visual communications specialist. Based on conservative estimates for these classifications, the combined annual salary costs for these positions would exceed $490,000, exclusive of employee benefits, recruitment, onboarding, and ongoing administrative costs. The current consulting engagement provides comparable capability at a significantly lower cost while avoiding long-term staffing commitments.
The Mayor’s development goals rely on uninterrupted progress of this innovation and design-thinking initiative. Without approval of this change order, the County would be unable to continue the established work, resulting in slowed progress and increased resource demands. Because Creativity Effect’s specialized methodology and prior involvement are integral to maintaining continuity, attempting to proceed without their services would significantly delay the project and could hinder the County’s ability to meet the Mayor’s goals.
Previous change orders are as follows:
• Change Order No. 1: Decreased the amount by $999.90 on commodity line no. 1, for a revised total amount of $88,999.92. Amount was corrected to match the quote total.
• Change Order No. 2: Increased the amount by $30,666.54, for a revised total amount of $119,666.46. Added commodity line no. 2 due to commodity line no. 1 being closed in error.
• Change Order No. 3: Corrected quantity and unit price on commodity line no. 2. No change in amount.
• Change Order No. 4: Increased amount by $26,985 to pay invoices, for a revised amount of $146,651.46.
• Change Order No. 5: Decreased amount by $999.90 on commodity line no. 2, for a revised amount of $145,651.56.