REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 23, 2024
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with Best Delivery, LLC for the Provision of Courier Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Agreement No. 4400012077 with Best Delivery, LLC for the continued utilization of courier services, extending the term by one-year for a total term of July 1, 2019 through June 30, 2025 and increasing the not-to-exceed contract amount by $300,000 from $1,115,333 to $1,415,333.
(Presenter: William L. Gilbert, Director, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost) as the cost of $300,000 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 the 2024-25 recommended budget.
BACKGROUND INFORMATION
Approval of this Amendment will allow ARMC to continue to utilize the services of Best Delivery, LLC (Best Delivery) for courier services for specimen, pharmaceutical, and sterile equipment transportation. The courier services are used to transport and deliver the items between County facilities, outside laboratories, nursing facilities, and other regional health care agencies.
On June 28, 2019, the Purchasing Department (Purchasing) approved and executed Agreement No. 4400012077 (Agreement) with Best Delivery for courier services for the period of July 1, 2019 through June 30, 2024 for a total amount of $500,000. Purchasing subsequently increased the total amount from $500,000 to $1,000,000 after it was determined the initial amount would not be sufficient for the entirety of the Agreement period. This increase was determined by Purchasing’s annual signing authority limit of $200,000 per year. The addition of $115,333 to the total Agreement amount were due to unauthorized purchase orders made against the Agreement, which have since been corrected, but remain as part of the Agreement record.
Approval of the Amendment will give ARMC sufficient time to complete a new competitive procurement for the services. Request for Proposal (RFP) No. ARMC124-ARMC-5249 for courier services for specimens, pharmaceuticals, and instrumentations was released through the County’s Electronic Procurement (ePro) network on January 29, 2024 and two proposals were received. Evaluation of the proposals was completed by a committee comprised of representatives from ARMC’s Administration and it was determined that neither proposal met ARMC’s expectations, resulting in the cancellation of that competitive procurement. ARMC will re-issue the RFP at a later date, after revising certain portions of the RFP and ensuring all possible vendors receive the notification to bid.
PROCUREMENT
Purchasing continues to support this competitive procurement based on the formal solicitation RFP No. MCR 18-06.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387-5455) on March 26, 2024; Purchasing (Veronica Pedace, Buyer, 387-2464) on April 10, 2024 ; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on April 1, 2024; Finance (Jenny Yang, Administrative Analyst, 387-4884) on April 1, 2024 ; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on April 2, 2024 .