REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 9, 2024
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with United Parcel Service Inc. for Software Licenses and Equipment
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Agreement No. 22-557 with United Parcel Service, Inc. for additional inventory management equipment and software licensing, increasing the contract amount by $21,054, from $22,066 to $43,120, plus applicable taxes, with no change to the five-year term of June 28, 2022 through June 27, 2027.
(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 Amendment No. 1 (Amendment) to Agreement No. 22-557 (Agreement) will not result in the use of Discretionary General Funding (Net County Cost). The cost of $21,054 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 Arrowhead Regional Medical Center (ARMC) 2023-24 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
Approval of this Amendment to the Agreement with United Parcel Service, Inc. (UPS) to add a new order form as an exhibit to the Agreement for additional hardware and software will allow ARMC to utilize additional TrackPad technology for inventory management and visibility as well as reporting and compliance throughout the hospital’s supply chain. The use of the equipment and software will allow new and stored inventory within the ARMC warehouse to move quickly through ARMC’s various departments with a tracking system to confirm deliveries and provide notice of where replenishment of products and supplies may be required.
On June 28, 2022 (Item No. 14) the Board of Supervisors (Board) approved Agreement No. 22-557 (Client Agreement No. UPSPSICAF04-0619), that incorporates the UPS Customer Solutions Client Agreement UPSPSICAF06-1221 and General Terms and Conditions UPSPSIGTC05-122, as amended, including non-standard terms, with United Parcel Service, Inc. for the use of TrackPad equipment and software licenses in the amount of $22,066, plus applicable taxes for the five-year period of June 28, 2022 through June 27, 2027.
ARMC recommends approval of the Amendment to provide for the health and safety of County residents by ensuring the hospital has the infrastructure in place to manage and distribute its inventory through an efficient supply chain management process.
PROCUREMENT
Purchasing continues to support this non-competitive procurement based on specialized credentials. A large portion of ARMC’s inventory is delivered via UPS. As such, the equipment selected is the best option to increase the efficiency of the hospital’s inventory management system as it is compatible with most deliveries.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on March 11, 2024; Purchasing (Veronica Pedace, Buyer III, 387-2464) on March 14, 2024; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on March 15, 2024; Finance (Jenny Yang, Administrative Analyst, 387-4884) on March 18, 2024; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on March 19, 2024.