REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
July 13, 2021
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Software Maintenance and Support Services Agreement with Vital Images, Inc.
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 4 to Contract No. 20-463 (SAP Contract No. 4400006111) for Software Maintenance and Support Services Agreement with Vital Images, Inc., to add Vitrea imaging software for nuclear medicine, increasing the total contract amount by $19,974, from $482,918 to $502,892, with no change to the contract period of April 1, 2014, through June 23, 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 recommendation will not result in the use of Discretionary General Funding (Net County Cost). The additional cost of $19,974 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) 2021-22 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The recommended amendment to the Software License and Service Agreement will allow ARMC radiologists to read nuclear medicine studies in a more timely and accurate manner through the Vitrea 3D system that is used by the ARMC medical imaging department. Specifically, this amendment will help radiologists to diagnose heart pathology, aid in surgeries, and to support the Cardiology team and new St-Elevation Myocardial Infarction program (STEMI). The Medical Imaging division currently uses a dedicated computer in the hospital that has become obsolete. The new Vitrea imaging software program will allow radiologists to view studies from any computer at any time which will expedite processing times for improved patient outcomes.
On April 1, 2014, the purchasing agent authorized Contract No. 4400006111 with Vital Images, Inc. (Toshiba Medical Systems Group Company) that later became Vital Images, Inc. (Canon Group), for software maintenance and support for a three-year term at a cost of $32,778 annually. ARMC entered into a non-competitive agreement with Vital Imaging as they were the sole company able to upgrade and support 3D imaging software for interventional radiology/neurology, including brain perfusion for strokes and cardiac studies. Vital Imaging does not authorize third parties to provide maintenance and support services of its proprietary software products.
On August 8, 2017, Purchasing approved Amendment No. 1 for the extension of the agreement from April 1, 2017, through March 31, 2019, in the amount of $36,839 annually. On March 31, 2019, Purchasing approved Quote 11564 for a one-year extension (Amendment No. 2) of the agreement in the amount of $36,839, for a term of April 1, 2019, through March 31, 2020. Both extensions were for continued software maintenance and support services.
On June 23, 2020 (Item No. 18), the Board approved Amendment No. 3, and assigned County Contract No. 20-463 to the Agreement, to update and maintain the Vitrea 3D workstation for imaging software for interventional radiology/neurology, increasing the total contract amount by $274,067, from $208,851 to $482,918, and formalizing the extension of the contract period through June 23, 2023.
ARMC recommends approval of this contract amendment as it will provide for the safety, health and social service needs of county residents by ensuring the hospital CT scanners have the necessary software maintenance and upgrades to assist physicians and technicians with patient care.
PROCUREMENT
Purchasing has approved the non-competitive justification for procurement based on the proprietary nature of this software, licensing and maintenance.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Deputy County Counsel, 387-5455) on June 18, 2021; Purchasing Department (Ariel Gill, Buyer III, 387-2463) on June 28, 2021; ARMC Finance (Chen Wu, Finance Budget Officer, 580-3165) on June 18, 2021; Finance (Yael Verduzco, Administrative Analyst, 387-5285) on June 28, 2021; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on June 28, 2021.