REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 11, 2024
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Sale Agreement with Hologic Sales and Services, LLC for Rapid Fetal Fibronectin Test
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Contract No. 22-222 with Hologic Sales and Services, LLC to assign the contract from Hologic, Inc. to Hologic Sales and Services, LLC and to extend the term of the contract for two years, for a total contract period of July 11, 2017 through July 10, 2026, with no change to the total contract amount of $298,000.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 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 will not result in the use of Discretionary General Funding (Net County Cost). The existing contract is sufficiently funded to support extending the term to July 10, 2026, with no additional funds needed. 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
Amendment No. 2 (Amendment) will assign Contract No. 22-222 (Contract) from Hologic, Inc. to Hologic Sales and Services, LLC (Hologic) and will allow ARMC the continued use of the Rapid fetal Fibronectin test supplied by Hologic, which helps determine the likelihood of premature delivery, supporting the welfare of the mother and infant and minimizing unnecessary hospital admissions costs. The ARMC Clinical Laboratory has been providing this service for several years under previous agreements with Hologic, Inc.
As a result of a reorganization, Hologic Sales and Service, LLC, a wholly owned subsidiary of Hologic, Inc., became the sole legal entity selling Hologic products as of September 23, 2022. As a result, assignment of the Contract is necessary for ARMC to continue to purchase the Hologic tests.
On June 27, 2017 (Item No. 11), the Board of Supervisors (Board) authorized the Purchasing Agent to issue a Master Blanket Purchase Order with Hologic, Inc. in the amount of $298,000 for the provision of supplies for Rapid fetal Fibronectin testing. As a result, on July 11, 2017, the Purchasing Agent executed the Contract with Hologic, Inc. for the provision of supplies for Rapid fetal Fibronectin testing with a term of July 11, 2017 to July 10, 2022.
On March 29, 2022 (Item No. 6), the Board approved Amendment No. 1 to the Contract with Hologic, Inc., to allow ARMC to continue to purchase supplies for Rapid fetal Fibronectin testing, extending the term of the Contract for two additional years, for a total period of July 11, 2017 to July 10, 2024, with no change to the total Contract amount of $298,000.
ARMC recommends extending the Contract with Hologic as it allows the County to operate in a fiscally-responsible and business-like manner by locking in the existing contracted prices for supplies until July 10, 2026. The Contract is due to expire on July 10, 2024, and this term extension is needed so that ARMC can continue to purchase necessary testing supplies to provide vital care to pregnant women who are experiencing symptoms of premature labor.
PROCUREMENT
The Contract for the Rapid fetal Fibronectin testing supplies is a non-competitive procurement, based on equipment compatibility, as ARMC owns the Hologic instrument required to read these tests and requires a compatible cassette. Purchasing continues to support the procurement of these proprietary laboratory supplies from Hologic.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387-5455) on May 10, 2024; Purchasing (Veronica Pedace, Buyer III, 387-2464 ) on May 10, 2024; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on May 17, 2024; Finance (Jenny Yang, Administrative Analyst, 387-4884) on May 21, 2024; and County Finance and Administrati22-on (Valerie Clay, Deputy Executive Officer, 387-5423) on May 22, 2024.