REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 1, 2022
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with Konica Minolta Business Solutions U.S.A., Inc. to Add Additional Print Devices
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Agreement No. 18-378 with Konica Minolta Business Solutions U.S.A., Inc. to increase the contract amount by $1,008,674, from $2,445,630 to $3,454,304, and update the print device total to reflect 1,231 devices, with no change to the contract period of July 1, 2018 through June 30, 2023, for managed print services at Arrowhead Regional Medical Center.
(Presenter: William L. Gilbert, Director, 580-6150)
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 with Konica Minolta Business Solutions USA, Inc. (Konica Minolta) will not result in the use of Discretionary General Funding (Net County Cost). The additional cost of $1,008,674 for managed print services at Arrowhead Regional Medical Center (ARMC) is funded by State Medi-Cal, Federal Medicare, private insurances, and other departmental revenue. Funding sources may change in the future pending any legislative activity related to the repeal and/or replacement of the Affordable Care Act. Adequate appropriation and revenue have been included in the ARMC 2021-22 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
Approval of this recommended amendment will allow for the continued service of all ARMC print devices, including equipment repair, supplies (excluding paper), preventative maintenance and parts, on-site proactive service and support with guaranteed service level response times, detailed account usage, and a simplified billing process. Additionally, this amendment will increase the number of print devices serviced from 491 to 1,231 and increase the contract amount accordingly. The increase in devices is the result of various departments moving off campus, clinics expanding, and clinical workflows changing as a result of the transition of the electronic health record system to Epic, which required additional printers be added. These devices are a mix of all types of print devices as required to manage patient flow and maintain hospital operations. Most devices are laser and thermal, with some used primarily for their fax service functionality.
The additional 740 devices added as part of this amendment have been previously serviced by ARMC’s Information Management (IM) Department. Approval of this recommendation will transition maintenance and repair support from internal IM staff to Konica Minolta, which would free up IM resources for ongoing projects and technology support. Use of these services allow ARMC to maintain printer function through Konica Minolta with little or no disruption to printing capability with one point of contact for maintenance and supplies.
On June 26, 2018 (Item No. 10), the Board of Supervisors (Board) approved Agreement No. 18-378 for managed print services in the amount not to exceed $1,885,290, for the five-year period of July 1, 2018 through June 30, 2023. The procurement was based on a total print count of 175 devices.
On December 18, 2018 (Item No. 10), the Board approved Amendment No. 1 to Agreement No. 18-378 to increase the contract amount by $560,340, from $1,885,290 to $2,445,630, and to update the print device total to 491, with no change in the contract term. The device increase resulted from a discrepancy found during the vendor walk through of ARMC’s sites.
These devices are being added while a new competitive bid process is conducted which will be opened in late 2022 to plan for the hospital’s future needs and to find the best cost savings approach for managed print services.
PROCUREMENT
Konica Minolta was awarded as the result of a competitive request for proposals as they best met ARMC’s needs for multi-function device and printer services. County Purchasing supports this amendment based on the competitive nature of the original procurement.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Deputy County Counsel, 387- 5455) on January 6, 2022; Purchasing Department (Ariel Gill, Buyer III, 777-0722) on January 28, 2022; ARMC Finance (Chen Wu, Budget and Finance Officer, 580- 3165) on February 7, 2022; and County Finance and Administration (Diana Atkeson, Deputy Executive Officer, 387-4376) on February 8, 2022.