Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  19-000280

 

MEETING DATE:

06/25/19

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

3

SUBMITTING Agency/Department:

Health Care Agency   (Approved)

Department contact person(s):

Erin Winger (714) 647-4510 

 

 

Richard Sanchez (714) 834-2830

 

 

Subject:  Contract for Phlebotomy and Laboratory Testing Services

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: FY 2019-20 $1,500,000
FY 2020-21 $1,500,000
FY 2021-22 $1,500,000

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: No

    Current Fiscal Year Revenue: N/A

  Funding Source: See Financial Impact Statement

County Audit in last 3 years: No

 

 

    Prior Board Action: 05/22/2018 #34, 05/23/2017 #39, 05/10/2016 #29, 06/17/2014 #55

 

RECOMMENDED ACTION(S):

 

Authorize the County Procurement Officer or authorized Deputy to execute Contract with The Regents of the University of California dba University of California Irvine Pathology Services for the provision of Phlebotomy and Laboratory Testing Services under the same terms and conditions, pricing and scope of work, effective July 1, 2019, through June 30, 2022, in an amount not to exceed $4,500,000, renewable for two additional one-year periods.

 

 

 

 

SUMMARY:

 

Approval to execute Contract No. MA-042-19011522 with The Regents of the University of California dba University of California Irvine Pathology Services for the provision of Phlebotomy and Laboratory Testing Services will allow for the continued provision of mandatory and medically necessary health care.

 

 

 

 

 

 

BACKGROUND INFORMATION:

 

The Health Care Agency (HCA) uses contracted clinical laboratory and phlebotomy services to complement services available from the HCA Public Health Laboratory. On June 17, 2014, your Honorable Board of Supervisors (Board) approved a Contract with the Regents of the University of California, a Constitutional Corporation, on behalf of UC Irvine Health for the provision of Phlebotomy and Laboratory Testing Services. On May 10, 2016, the Board approved the Contract renewal for the third year. On May 23, 2017, the Board approved the Contract renewal for the fourth year and on May 22, 2018, the Board approved the Contract renewal for the fifth and final year.

 

On January 4, 2019, HCA issued a RFP to establish a new Contract for the provision of Phlebotomy and Laboratory Testing Services. One proposal was received and deemed responsive. Based upon pre-established rating criteria for scoring, The Regents of the University of California dba University of California Irvine Pathology Services (The Regents) is being recommended for Contract award as referenced in the Recommended Action. The proposed Contract is for three consecutive years in an amount not to exceed $4,500,000 and is renewable for two additional one-year terms.

 

The County of Orange is mandated to provide medical care to persons in the County's custody pursuant to State of California Penal Code Sections 4011 and 4015 and Government Code Section 29602. HCA's Correctional Health Services Programs (CHS) is the designated provider of medical care to persons in custody on behalf of the Orange County Sheriff's Department (OCSD) for adults and on behalf of the Probation Department for youth residing at Juvenile Hall and associated camps. Medical services include laboratory testing as part of medical evaluations and screening provided within the adult and juvenile correctional institutions. The Regents provide general laboratory testing services that serve as both screening and diagnostic tools utilized in the medical management of the in-custody population. The largest user of the Contract is CHS.

 

HCA's Public Health Program has a variety of programs utilizing laboratory testing services for screening and diagnostic testing of clients receiving medical services at public health clinics including Sexually Transmitted Diseases, HIV Ambulatory Care, Tuberculosis and Family Health. The services provided by The Regents differ from those provided by HCA Public Health Laboratory, which mainly tests for infectious diseases and organisms posing a public health threat. The Regents provide general laboratory testing services that include routine types of tests similar to those requested through a medical office such as blood chemistries, cholesterol, metabolic panels, etc.

 

HCA's Behavioral Health Services (BHS) requires laboratory testing for a number of clients since certain psychotropic medications can have side effects impacting a person's liver or other vital organ functioning. Because, unlike CHS and Public Health Services, BHS does not have staff to perform phlebotomy, this Contract provides on-site phlebotomy services in addition to courier services for delivery of specimens to The Regents.

 

Overall, approximately 60,000 tests were completed in FY 2017-18.

 

In this Contract, the indemnification provisions vary from the County standard sole indemnification. The indemnification provision includes a mutual indemnification clause. The indemnification clause also limits the Contractor’s liability to negligent or intentional acts of omissions, including the actual alleged sexual misconduct of Contractor, its officers, employees or agents.  CEO/Risk Management has reviewed the indemnification provisions and determined them to be acceptable for these services.  In addition, this Contract also includes a termination for convenience clause upon 30 days written notice given to either party. 

 

This Contract includes subcontractors. See Attachment C for information regarding subcontractors and Contract Summary Form.

 

The Contractor's Performance has been confirmed as at least satisfactory.  HCA has verified there are no concerns that must be addressed with respect to Contractor's ownership/name, litigation status or conflicts with County interests.

 

Due to unanticipated delays with releasing the solicitation, this Contract is submitted to the Board less than 30 days prior to the start of the Contract.

 

HCA requests that the Board authorize the County Procurement Officer or Authorized Deputy to execute Contract No. MA-042-19011522 with The Regents, as referenced in the Recommended Actions.

 

 

 

 

 

FINANCIAL IMPACT:

 

Appropriations for this Contract will be included in HCA's FY 2019-20 Budget and will be included in the budgeting process for future years.

 

Should services need to be reduced or terminated due to lack of funding, the Contract contains language that allows HCA to give a 30-day notice to either terminate or renegotiate the level of services to be provided.  The notice will allow the HCA adequate time to transition or terminate services to clients, if necessary.

 

Funding Source:

GF:  40%

FED:  24%

State:  33%

Others:  3%

 

The funding percentages are an aggregate of various funding sources within multiple programs which will utilize this Agreement.

 

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A  – Contract No. MA-042-19011522 with The Regents of the University of California dba University of California Irvine Pathology Services
Attachment B – RFP Evaluation Summary
Attachment C – Contract Summary Form
Attachment D – California Penal Code Sections 4011 and 4015
Attachment E – Risk Assessment Form