REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
July 9, 2024
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with MoreDirect, Inc. dba Connection for Additional Services and Subscription Licenses from ServiceNow
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 4 to Service Agreement No. 20-460 with MoreDirect, Inc. dba Connection, to update the ServiceNow Statement of Work to include clinical device and strategic performance management services, and increase the contract amount by $613,250, from $1,171,936 to $1,785,186, with no change to the contract period of July 1, 2020 through June 30, 2025.
2. Authorize the Purchasing Agent to issue a purchase order to MoreDirect, Inc. dba Connection for the purchase of ServiceNow subscription licenses, subject to the terms under Agreement No. 21-451 with ServiceNow, Inc., to license additional software modules for compliance, control and strategic portfolio management within the ServiceNow platform, in the amount of $602,361, with no change to the contract period of December 15, 2021 through June 14, 2025.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 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 the item will not result in the use of Discretionary General Funding (Net County Cost). The total increase of $1,215,611 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) 2024-25 budget.
BACKGROUND INFORMATION
This Amendment with MoreDirect, Inc. dba Connection (Connection) will allow ARMC to document the clinical devices and facility assets more efficiently throughout the hospital. This Statement of Work with Connection, reference number 041924, will provide additional development and technical configuration support of the ServiceNow platform to build additional functionality and enhancements. These platform improvements will increase productivity, efficiency and enhance business competencies within ARMC.
Connection is an authorized reseller of the ServiceNow, Inc. (ServiceNow) platform. Since March 2019, ARMC has successfully utilized and integrated ServiceNow to enhance its operational workflows and is now expanding its use to include broader organizational functions. ARMC plans to acquire licenses for five specific ServiceNow uses, which includes the following:
• Strategic Portfolio Management - utilizing demand management and development within ServiceNow and other associated applications to ensure our projects and resources align with strategic objectives.
• Business Stakeholder - enhances stakeholder engagement by providing insights into relevant projects and processes.
• Clinical Device Management - manages clinical devices, crucial for patient safety and Joint Commission regulatory compliance in healthcare settings.
• Hardware Asset Management Pro - offers advanced tools for managing hardware assets, contract, and warranty relationships reducing costs and improving utilization.
• Business Stakeholder- enhances stakeholder engagement by providing insights into relevant projects and processes.
• Application Engine Studio - allows rapid development of custom applications to meet dynamic business needs leveraging data within ServiceNow.
These tools are essential to boost operational efficiency, maintain joint commission compliance, enhance control and transparency of patient care devices, and facilitate informed strategic decisions at ARMC. To ensure a seamless expansion, ARMC will engage with InSource, a recognized ServiceNow ELITE partner, for expert implementation and development support of these applications.
On June 23, 2020 (Item No. 12), the Board approved Service Agreement No. 20-460 with Connection, and a Statement of Work to provide services in support of the ServiceNow platform implementation project in the amount of $938,736 for the period July 1, 2020 through June 30, 2025.
On June 22, 2021 (Item No. 49), the Board approved non-financial Agreement No. 21-451 with ServiceNow, Inc., to purchase future subscription software licenses, training, and professional installation/configuration services for an indefinite term.
On December 14, 2021 (Item No. 8), the Board approved Amendment No. 1 to Service Agreement No. 20-460 with Connection to update the Statement of Work to include additional services in support of the ServiceNow Managed Services project, in the amount of $95,000, effective December 15, 2021, until acceptance of the completion of services. The Board also approved Amendment No. 2 to Service Agreement No. 20-460 with Connection to update the Statement of Work to include additional services in support of the ServiceNow Epic Integration and implementation project, in the amount of $43,200, effective December 15, 2021, until the acceptance of the completion of services. The Board also approved the purchase of ServiceNow subscription licenses under agreement No. 21-451 for development and service management in the amount of $400,155 for the period of December 15, 2021 through June 14, 2025, and support services for the period of February 1, 2022 through June 14, 2025.
On March 14, 2023 (Item No. 5), the Board approved Amendment No. 3 to Service Agreement No. 20-460 with Connection to update the Statement of Work with additional service hours in support of the ServiceNow Managed Services project, increasing the contract amount by $95,000, from $1,076,936 to $1,171,936, with no change to the total contract period of July 1, 2020 through June 30, 2025.
ARMC recommends approval of this Amendment to provide expanded services to the ServiceNow platform that allows a more efficient method for documentation and resource needs for the hospital and its patients.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on June 7, 2024; Risk Management (Gregory Ustaszewski, Staff Analyst II, 386-9008) on May 21, 2024; Purchasing (Veronica Pedace, Buyer III, 387-2464) on June 7, 2024; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on June 17, 2024; Finance (Jenny Yang, Administrative Analyst, 387-4884) on June 21, 2024; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on June 21, 2024.