Title
Authorize an increase to the total Agreement amount of the Carefusion Medmined-Alaris Agreement (A-13080) of $126,636 to pay for the Integrated Solutions Maintenance for the remaining four (4) years of the agreement term, for a revised total agreement amount not to exceed $1,675,628.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize an increase to the total Agreement amount of the Carefusion Medmined-Alaris Agreement (A-13080) of $126,636 to pay for the Integrated Solutions Maintenance for the remaining four (4) years of the agreement term, for a revised total agreement amount not to exceed $1,675,628.
SUMMARY/DISCUSSION:
On March 22, 2016 the Board of Supervisors approved an Agreement between Carefusion and NMC for a software product called Medmined. The Medmined product is used for surveillance, analytics, benchmarking, alerting and reporting in medication management and infection control at NMC. Then on August 23, 2016 the Board of Supervisors approved Amendment No. 1 to the Carefusion Medmined Agreement to add a software-based intravenous infusion pump product called Alaris. The Alaris IV pumps include software that allows the pumps to be programmed by nurses and physicians to infuse medications at different rates. The software contains libraries of different medications and their infusion parameters. These pumps ensure safety by preventing medications from being infused at rates greater than or less than safe limits.
At the time NMC and Carefusion were negotiating terms and conditions of Amendment No. 1 for the Alaris product, NMC inadvertently omitted the maintenance costs for the Infusion Integrated Solutions for years 2, 3, 4 and 5. Only the first year cost was included in the total amount requested. The annual maintenance cost for Integrated Solutions Maintenance is $28,380 per year (plus tax), therefore, NMC is requesting to increase the total agreement amount by $126,636 for a revised correct total agreement amount of $1,675,628. The agreement itself does not contain a total agreement amount but instead lists out each product and its cost, therefore there is no amendment associated with this request because there is nothing to amend or change within the agreement itself. The Integrated Solutions maintenance cost was presented in the agreement as an annual cost at $28,380 per year, but because the cost for future years were not actually itemized out in the agreement as it had been for the other maintenance related costs in the agreement, years 2 through 5 were inadvertently overlooked when NMC calculated the total agreement amount in its request to execute Amendment No. 1.
The agreement with Carefusion does not state a “not to exceed” amount. Instead it itemizes costs of the various software and support items throughout the documents. The total agreement amount is dictated within the Board Order for this agreement based on staff calculations of the individual costs identified within the agreement. Because a total is not stated within the agreement itself there is no amendment being processed for this request. The new Board Order will clarify the total amount.
OTHER AGENCY INVOLVEMENT:
County Counsel’s office and the Auditor-Controller’s office have reviewed and approved this request. This request has also been reviewed and approved by NMC’s Finance Committee on May 24, 2018 and by its Board of Trustees on June 1, 2018.
FINANCING:
The cost for this request is $126,636, of which $31,005 is included in the Fiscal Year 2017-18 Adopted Budget. Amounts for remaining years of the agreement will be included in those budgets as appropriate.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
These Carefusion software products allow NMC to utilize current technology that improves patient care at the hospital because of automation, access to other relevant data, programmability, and integration with other systems at NMC.
__ Economic Development
__ Administration
X Health and Human Services
__ Infrastructure
__ Public Safety
Prepared by: Jason Warren, Pharmacist, 772-7720
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
Carefusion Amendment No. 3
Carefusion Amendment No. 2
Carefusion Amendment No. 1 for Alaris product
Carefusion Agreement for Medmined product
Attachments on file with the Clerk of the Board