REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
July 27, 2021
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Contracts with R.F. MacDonald Company for Preventative Maintenance and Unexpected Repairs of Boilers and Steam Systems
End
RECOMMENDATION(S)
Recommendation
1. Approve Contract with R.F. MacDonald Company, for the unexpected repairs of boilers and steam systems at Arrowhead Regional Medical Center, in the not to exceed amount of $1,000,000 for the period of July 27, 2021 through October 2, 2022.
2. Approve Contract with R.F. MacDonald Company, for the preventative maintenance of boilers and steam systems at Arrowhead Regional Medical Center, in the not to exceed amount of $400,000 for the period of July 27, 2021 through October 2, 2022.
(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 with R.F. MacDonald Company (R.F. MacDonald) will not result in the use of Discretionary General Funding (Net County Cost). The total not to exceed cost of $1,400,000 for the two contracts 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) 2021-22 budget and will be included in the 2022-23 recommended budget.
BACKGROUND INFORMATION
The recommended contracts will allow ARMC to continue repairs and maintenance to the boilers and steam systems at ARMC. The services include annual maintenance and repairs to the boilers and steam systems, including repairs for steam leaks, pump replacements, valve replacements, and other necessary repairs. These services are mandated by the South Coast Air Quality District to lower nitrogen oxide emission rates.
Preventative maintenance and repairs of boilers and steam systems are necessary for operating rooms to maintain room humidity within the mandated ranges. Proper operation of these systems allows sterile processing to clean and sterilize surgical equipment, carts, and other types of equipment. These systems also provide hot water for the campus, heating of the hospital, and provide steam to the kitchen. This service ensures that the systems are operating at efficient levels, which reduces cost for ARMC utilities and equipment downtime. This service is necessary for the function of the hospital.
Currently, ARMC utilizes a Master Blanket Purchase Order No. 184055 (converted to Contract No. 4400004792) to pay for services rendered by R.F. MacDonald. The Contract is close to being fully depleted due to numerous repairs needed on the systems. ARMC is now seeking to execute formal contracts with R.F. MacDonald to increase the contract amount for the remainder of the period authorized by the Board of Supervisors (Board) as discussed below.
On October 3, 2017 (Item No. 9), the Board authorized the Purchasing Agent to issue a Master Blanket Purchase Order with R.F. MacDonald for the repair and maintenance of boilers and steam systems at ARMC in the amount of $712,105 for the period of October 3, 2017, through October 2, 2022. Master Blanket Purchase Order No. 184055 was issued by Purchasing, and was converted to Contract No. 4400004792.
On March 13, 2018 (Item No. 7), the Board authorized the Purchasing Agent to increase Contract No. 4400004792 with R.F. MacDonald in the amount of $509,750, thereby increasing the total contract amount from $712,105 to $1,221,855, for the repair and maintenance of boilers and steam systems at ARMC, with no changes to the term of October 3, 2017, through October 2, 2022.
On March 19, 2019 (Item No. 4), the Board authorized Purchasing to increase Contract No. 4400004792 with R.F. MacDonald in the amount of $500,000, from $ 1,221,855 to $1,721,855 for repair and maintenance of boilers and steam systems at ARMC, with no change to the term of October 3, 2017, through October 2, 2022.
PROCUREMENT
Purchasing approves of the recommended contracts based on the competitive procurement, Request for Proposal No. ARMC117-ARMC-2464, that resulted in a contract award to R.F. MacDonald for the period of October 3, 2017 through October 2, 2022.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Deputy County Counsel, 387-5455) on June 24, 2021; Purchasing Department (Ariel Gill, Buyer III, 777-0722) on July 7, 2021; Finance (Yael Verduzco, Administrative Analyst, 387-5285) on July 8, 2021; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on July 11, 2021.