REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 2, 2020
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title v
Service Agreement with Medivators, Inc. for Maintenance of Endoscope Reprocessors
End
RECOMMENDATION(S)
Recommendation
Approve Service Agreement with Medivators, Inc. for maintenance of endoscope reprocessors in the amount of $49,467.24, for the three-year period of July 1, 2020, through June 30, 2023.
(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 $49,467.24 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) 2020-21 budget and will be included in future recommended budgets.
Payment for maintenance service, parts and labor under this Service Agreement will be paid over a three-year period according to the following schedule:
|
Year |
Cost |
|
Year 1 |
$16,489.08 |
|
Year 2 |
$16,489.08 |
|
Year 3 |
$16,489.08 |
|
Total |
$49,467.24 |
BACKGROUND INFORMATION
Approval of this recommendation will allow ARMC to receive maintenance service and parts for endoscope reprocessors used by the ARMC Sterile Processing Department (SPD). Endoscopes are instruments that are introduced into the body to give a view of its internal parts. Endoscopy procedures use equipment to examine the interior of a hollow organ or cavity of the body. Unlike other medical imaging techniques, endoscopes are inserted directly into the organ. Endoscope reprocessing includes: bedside pre-cleaning, leak testing, manual cleaning, high-level disinfection, and storage. Medivators, Inc. (Medivators) provides the equipment utilized by SPD to reprocess endoscopes, and they are the sole vendor certified to perform maintenance services on the reprocessing equipment.
Medivators' 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. Termination: County may terminate for convenience at any time upon 30 days’ prior written notice, but pre-paid annual amounts are non-refundable.
• The County standard contract gives the County the right to terminate the Contract, for any reason, with a thirty (30) day written notice of termination without any obligation other than to pay amounts for services rendered and expenses reasonably incurred prior to the effective date of termination.
• Potential Impact: Upon any termination by either party regardless of cause, the County will not receive a pro-rata refund of any used fees.
ARMC recommends approval of the Service Agreement with Medivators, Inc. as it will allow ARMC to maintain and repair endoscope reprocessing equipment utilized to treat patients in San Bernardino County.
PROCUREMENT
This is a non-competitive purchase approved by Purchasing as Medivators, Inc. has specialized expertise/training to maintain their own equipment. Medivators is able to provide a comprehensive maintenance package, which allows ARMC to operate in a fiscally responsible and business-like manner through potential savings. Regular maintenance of the reprocessing equipment ensures safe and efficient service to patients through infection prevention and disease control. ARMC has utilized Medivator for maintenance of endoscope reprocessors since 2014.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, County Counsel, 387-5487) on May 14, 2020; Purchasing Department (Jackie Ambrose, Lead Buyer, 777-0722) on May 20, 2020; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-6150) on May 18, 2020; Finance (Yael Verduzco, Administrative Analyst, 387-5285) on May 19, 2020; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on May 19, 2020.