REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
July 26, 2022
FROM
JOSHUA DUGAS, Director, Department of Public Health
SUBJECT
Title
Amendment to Contract with CPS Solutions, LLC for 340B Drug Assistance Program and COVID-19 Pharmacy Support Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 6 to Contract No. 18-672 with CPS Solutions, LLC, for the continued provision of 340B Drug Assistance Program and COVID-19 pharmacy support services, revising contract language and scope of work, increasing the amount by $1,250,000, from $2,509,932 to $3,759,932, and extending an additional year, for a total contract period of September 1, 2018 through August 31, 2023.
(Presenter: Joshua Dugas, Director, 387-9146)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not impact Discretionary General Funding (Net County Cost). The additional funding specific to 340B Drug Assistance Program (340B), in an amount not to exceed $300,000, will be funded by 1991 Health Realignment. The additional funding specific to pharmacists’ services, in an amount not to exceed $950,000, will be funded by Coronavirus Response and Relief Supplemental Appropriations Act grant funds. Adequate appropriation and revenue have been included in the Department of Public Health’s (DPH) 2022-23 budget and will be included in the 2023-24 recommended budget.
BACKGROUND INFORMATION
CPS Solutions, LLC (CPS), formerly known as Comprehensive Pharmacy Services, LLC, currently assists with the 340B Program to ensure appropriate procedures and internal controls are developed and followed to maintain compliance with required program mandates. DPH currently operates Federally Qualified Health Centers and Public Health Clinics, which qualify as covered entities eligible for the 340B Program. Participation in 340B enables DPH to obtain needed medication at lower costs for eligible clients. This results in stretching federal grant resources as far as possible, with the goal of reaching more eligible patients and providing more comprehensive medical services. In addition, CPS assisted with maintaining and coordinating critical medical supplies related to the COVID-19 outbreak caused by the Novel Coronavirus, SARS-CoV-2, which resulted in the increased use of pharmacy staff. The associated pharmacists, in conjunction with the DPH Preparedness and Response Program (PRP) staff engaged in oversight and management of the necessary medication and ancillary supplies required for the COVID-19 emergency response to fight the pandemic.
On August 21, 2018 (Item No. 37), the Board of Supervisors (Board) approved non- competitive Contract No. 18-672 with CPS for a Pharmacy Management Program and to assist in the development of a 340B Drug Assistance Program, in the amount of $298,466, for the period of September 1, 2018 through August 30, 2019.
On July 23, 2019 (Item No. 29), the Board approved Amendment No. 1 to Contract No. 18-672, updating contract language, increasing the total contract amount by $298,466 from $298,466 to $596,932, and extending the contract for total period of September 1, 2018 through August 31, 2020.
On August 11, 2020 (Item No. 33), the Board approved Amendment No. 2 to Contract No. 18-672, increasing the total contract amount by $300,000, from $596,932 to $896,932, and extending the contract for the total contract period of September 1, 2018 through August 31, 2021.
On February 9, 2021 (Item No. 23), the Board ratified Amendment No. 3 to Contract No. 18-672, which added a scope of work for additional Pharmacists to assist DPH PRP in overseeing and managing the necessary medication and ancillary supplies related to COVID-19, and increasing the total contract amount by $363,000, from $896,932 to $1,259,932, with no change to the total contract period of September 1, 2018 through August 31, 2021. The contract amendment was initially approved and executed by the Chief Executive Officer, under delegation of authority, on January 22, 2021.
On June 22, 2021 (Item No. 60), the Board approved Amendment No. 4 to Contract No. 18-672, increasing the total contract amount by $1,250,000, from $1,259,932 to $2,509,932, extending an additional year, for the total contract period of September 1, 2018 through August 31, 2022, and expanding the provision of services for up to three additional pharmacists to assist with managing COVID-19 related medical and ancillary supplies through August 31, 2022, and providing for expertise and guidance in maintaining compliance of the 340B program.
On December 14, 2021 (Item No. 46), the Board approved Amendment No. 5 to Contract No. 18-672, for the continued provision of 340B and COVID-19 pharmacy support services, revising contract language and scope of work, with no change to the contract amount or contract period.
Under the terms of this recommended amendment, the scope of work has been revised to include general DPH pharmacy support and the dates aligned to match the extension period, additional funding added for the provision of 340B and COVID-19 services, the total contract amount increased by $1,250,000, from $2,509,932 to $3,759,932, and the contract period extended an additional year, for the total contract period of September 1, 2018 through August 31, 2023.
CPS will cooperate with the County in the implementation, monitoring, and evaluation of this contract and comply with all reporting requirements. CPS submits monthly invoices which are reviewed for accuracy and to ensure activities and/or deliverables were performed prior to payment by DPH Budget and Administrative Services. The County reserves the right to request additional program and/or fiscal reports to facilitate this monthly review.
PROCUREMENT
Purchasing concurs with continuation of this non-competitive contract due to the specialized nature of the 340B Program and necessary pharmacological expertise.
REVIEW BY OTHERS
This item has been reviewed by Human Services Contracts (Patty Steven, Contracts Manager, 388-0241) on June 28, 2022; County Counsel (Adam Ebright, Deputy County Counsel, 387-5455) on July 11, 2022; Purchasing (Bruce Cole, Supervising Buyer, 387-2148) on July 8, 2022; Finance (Paul Garcia, Administrative Analyst, 386-8392) on July 11, 2022; and County Finance and Administration (Cheryl Adams, Deputy Executive Officer, 388-0238) on July 11, 2022.