REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
March 10, 2020
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title v
Agreement with Agiliti Imaging, Inc. for Maintenance of Medical Imaging Equipment
End
RECOMMENDATION(S)
Recommendation
Approve Service Agreement with Agiliti Imaging, Inc. for maintenance of medical imaging equipment in the amount of $3,338,250 for the five-year period of May 1, 2020 through April 30, 2025.
(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). The cost of $3,338,250 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) 2019-20 budget and will be included in future recommended budgets.
Payment for maintenance service, parts and labor under the Service Agreement will be paid over a five-year period according to the following schedule:
|
Year |
Cost |
|
Year 1 |
$667,650.00 |
|
Year 2 |
$667,650.00 |
|
Year 3 |
$667,650.00 |
|
Year 4 |
$667,650.00 |
|
Year 5 |
$667,650.00 |
|
Total |
$3,338,250.00 |
BACKGROUND INFORMATION
Approval of this recommendation will provide ARMC with the maintenance service and parts for thirty (30) pieces of medical imaging equipment. The maintenance and parts will ensure the continued functionality of the equipment. The ARMC Medical Imaging Department has radiographic equipment from various manufacturers that are currently maintained by Agiliti Imaging, Inc. (Agiliti). In the past, ARMC utilized multiple vendors on different service contracts with varying requirements and constraints for parts and labor. Agiliti is able to provide a comprehensive maintenance package, including parts and service, for all units at an annual cost rather than time and materials which would be significantly more expensive. Agiliti’s trained service technicians have access to a parts warehouse, which enables them to work on all of the makes and models of medical imaging equipment included in the service agreement.
Agiliti’s Service Agreement includes its standard commercial terms and conditions, as negotiated by the County, which contains terms that differ from the standard County contract. The non-standard terms include the following:
1. Limitations of liability to the County of a maximum of $1,000,000 excluding Agiliti’s indemnification obligations.
• The County standard contract does not include a limitation of liability.
• Potential Impact: Claims could exceed the liability cap and the contract amount leaving the County financially liable for the excess. In addition, the County’s liability under the contract is not similarly limited.
ARMC recommends approval of the Service Agreement with Agiliti Imaging, Inc. as approval will enable ARMC to maintain and repair radiographic equipment utilized to treat patients in San Bernardino County.
PROCUREMENT
This is a non-competitive purchase approved by Purchasing as Agiliti Imaging, Inc. has specialized expertise/training. Agiliti is the only local vendor able to provide maintenance and parts for each of the units specified in the agreement. Agiliti is able to provide a comprehensive maintenance package, including parts and service, for all 30 units at a set annual cost. This comprehensive service package allows ARMC to operate in a fiscally responsible and business-like manner as it will result in potential savings of more than $500,000 annually. Regular maintenance of medical imaging equipment ensures safe and efficient service to patients, providing for the health and social services needs of the County residents.
The medical imaging equipment that will be serviced under this agreement range in age from two to 24 years and all require regular maintenance to ensure continuous operation. The medical imaging equipment units are no longer supported by the manufacturer so third party vendors must be utilized for parts and service.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, County Counsel, 387-5487) on February 25, 2020; Purchasing Department (Jackie Ambrose, Lead Buyer, 777-0722) on February 28, 2020; Finance (Amanda Trussell, Principal Administrative Analyst, 387-4773) on February 20, 2020; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on February 24, 2020.