REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
February 9, 2021
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title v
Increasing the Contract Amount with Praxair Distribution Inc.
End
RECOMMENDATION(S)
Recommendation
Approve an increase to Contract No. 4400005501 with Praxair Distribution Inc., increasing the amount by $750,000 from $1,180,000 to $1,930,000, with no changes to the term of August 22, 2017 through August 21, 2022, for the delivery of bulk medical gases, medical gas cylinders and site gas services to Arrowhead Regional Medical Center.
(Presenter: William L. Gilbert, Director, 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 Discretional General Funding (Net County Costs). The costs of $750,000 is funded by State Medi-Cal, Federal Medicare, private insurances and other departmental revenues. 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.
BACKGROUND INFORMATION
Approval of this item will allow ARMC to continue to utilize Praxair Distribution, Inc. (Praxair) for the provision of all bulk medical gases, medical gas cylinder and site gas needs. Due to the COVID-19 pandemic, the usage of all three of the above listed categories have dramatically increased, increasing overall spending. Hence, an increase to the contract amount is necessary to fund the extra usage.
Medical gas cylinders delivered by Praxair are distributed throughout ARMC and the affiliated Family Health Centers and include oxygen tanks for patient transport and crash carts, compressed air, and various specialty gases for anesthesia and procedural use. Bulk supply systems supply all the compressed air and oxygen lines that enter the facility and are made available at the patient’s bedside for use as needed.
On August 22, 2017 (Item No. 7), the Board authorized the Purchasing Agent to issue a Master Blanket Purchase Order No. 183463 with Praxair for the delivery of bulk medical gases, medical gas cylinders and site gas services to ARMC in the total amount of $1,180,000 for the term of August 22, 2017, through August 21, 2022.
Master Blanket Purchase Order No. 183463 was subsequently converted to Contract No. 4400005501.
PROCUREMENT
This is a non-competitive procurement based on the current contract. Purchasing supports this non-competitive procurement
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Deputy County Counsel, 387-5465) on January 14, 2021; Purchasing Department (Michelle Churchill, Supervising Buyer, 387-2070) on January 14, 2021; ARMC Finance (Chen Wu, Finance Budget Officer, 580-3165) on January 19, 2021; Finance (Yael Verduzco, Administrative Analyst, 387-5285) on January 19, 2021; and County Finance (Matthew Erickson, County Chief Financial Officer, 387-5423) on January 24, 2021.