REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 26, 2021
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Agreements with Translogic Corporation, DBA Swisslog Healthcare Solutions for Inpatient Carousel Rebuilds and Ongoing Support Services
End
RECOMMENDATION(S)
Recommendation
1. Approve Agreement with Translogic Corporation, DBA Swisslog Healthcare Solutions, for the rebuild and ongoing support services for two inpatient automated pharmacy dispensing systems, in the amount of $225,788.21, for the term of October 26, 2021 through December 14, 2024.
2. Approve Amendment No. 1 to Agreement No. 18-842 with Translogic Corporation, DBA Swisslog Healthcare Solutions, for ongoing support services for the inpatient Swisslog Packager and Auto Label Software, increasing the contract amount by $22,173, from $110,862 to $133,034, for the term of December 15, 2018 through December 14, 2024.
3. Approve Amendment No. 2 to Master Agreement No. 18-844 with Translogic Corporation, DBA Swisslog Healthcare Solutions, for purchase and service agreements, adding fiscal provisions with a new contract cost of $38,852, for the term of December 15, 2018 through December 14, 2024.
(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 Discretionary General Funding (Net County Cost). The additional cost of $286,813.21 for the three agreements 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
ARMC Pharmacy Services Department (Pharmacy) utilizes the Swisslog automated dispensing system, which provides drug storage, dispensing, and inventory management for the hospital pharmacy. This system includes a packager, automatic labeler and inpatient carousels. For inpatients, the system interfaces with ARMC’s current electronic health record system (Meditech), the hospital’s automated dispensing cabinets (Pyxis), and is also capable of interfacing with the hospital’s future electronic health record system (Epic).
The Swisslog carousel uses barcodes on medications to ensure that medications and strengths are accurate during both the stocking and dispensing process. The pharmacy restocks medications that are located in patient care areas in automated dispensing cabinets. The carousel allows the safe and efficient selection of medications for restocking.
When medications are not available in single unit dose packages, the pharmacy uses the Swiss
log packager. The packager provides fully automated unit-dose or multi-dose oral solid
medication packaging. Bulk drugs are placed in unit dose packages that contains all necessary
labeling information to satisfy regulatory agencies, and barcodes for bedside medication
verification. The packager uses software that integrates with the carousel for inventory control.
On December 4, 2018 (Item No. 19), the Board of Supervisors approved the following agreements:
• Agreement No. 18-841 with Translogic Corporation DBA Swisslog Healthcare Solutions, for ongoing support services for two inpatient automated pharmacy dispensing systems, in the amount of $150,246, for the three-year period of December 15, 2018 through December 14, 2021.
o On August 24, 2021 (Item No. 10), the Board approved Amendment No. 1 to Agreement No. 18-841, for Microsoft Windows 10 upgrade, increasing the contract by $15,375.85, from $150,246 to $165,621.85, with no change to the contract term of December 15, 2018 through December 14, 2021.
o The agreement in Recommendation No. 1 will replace Agreement No. 18-841 and includes the rebuild of two inpatient carousels and ongoing support services in the amount of $225,788.21 through December 14, 2024.
• Agreement No. 18-842 with Translogic Corporation, DBA Swisslog Healthcare Solutions, for ongoing support services for the inpatient Swisslog Packager and Auto Label Software, in the amount of $110,862, for the five-year period of December 15, 2018, through December 14, 2023.
o Recommendation No. 2 extends Agreement No. 18-842 by one year, from December 14, 2023 to December 14, 2024, and increases the contract amount by $22,173, from $110,862 to $133,034.
• Non-financial Master Agreement No. 18-844 with Translogic Corporation, DBA Swisslog Healthcare Solutions, for purchase and service agreements related to the Swisslog automated pharmacy dispensing system, for the five-year period of December 15, 2018, through December 14, 2023.
o Recommendation No. 3 extends Agreement No. 18-844, which was previously non-financial, by one year, from December 14, 2023 through December 14, 2024, and adds fiscal provisions with a new contract cost of $38,852.
Extending Agreements No. 18-842 and 18-844 by one year establishes a non-standard six-year contract term. However, this is done so that all agreements related to the inpatient Swisslog automated dispensing system will end coterminously. With the approval of Recommendation No. 1, Swisslog will rebuild the hospital’s two inpatient carousels, which are expected to last approximately three years through December 14, 2024. The rebuild process entails replacing internal parts to reduce wear and extend the life of the carousel machines. Following this rebuild, the County will go out to RFP for a new automated dispensing system to replace the current Swisslog system.
ARMC recommends approval of the new agreement and amendments to provide for the health and safety of County residents through the continued distribution of medication to patients.
PROCUREMENT
Purchasing continues to support this non-competitive procurement based on the existing proprietary equipment owned by ARMC and to avoid disruption to the distribution of medication to ARMC patients.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Deputy County Counsel, 387-5455) on October 4, 2021; Purchasing (Ariel Gill, Buyer III, 777-0722) on October 4, 2021; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on September 30, 2021; Finance (Yael Verduzco, Administrative Analyst, 387-5285) on October 8, 2021; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on October 11, 2021.