Title
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute Amendment No. 2 to the Agreement (A-13241) with Mission Linen Supply for linen processing services and scrub rental services per Request for Proposals (RFP) #9600-65 at NMC, extending the agreement an additional one (1) year period (July 1, 2018 through June 30, 2019) for a revised full agreement term of July 1, 2016 through June 30, 2019, and adding $410,000 for a revised total agreement amount not to exceed $1,490,000.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute amendment no. 2 to the agreement (A-13241) with Mission Linen Supply for linen processing services and scrub rental services per Request for Proposals (RFP) #9600-65 at NMC, extending the agreement an additional one (1) year period (July 1, 2018 through June 30, 2019) for a revised full agreement term of July 1, 2016 through June 30, 2019, and adding $410,000 for a revised total agreement amount not to exceed $1,490,000.
SUMMARY/DISCUSSION:
On March 16, 2016, Natividad Medical Center (NMC) solicited Request for Proposal (RFP) #9600-65 for one or more new agreements with qualified contractors to provide linen processing services and/or scrub rental services. Mission Linen Supply was the most qualified vendor and was awarded an agreement to provide linen processing services and scrub rental services for NMC. The Board of Supervisors approved Agreement (A-13241) for a one (1) year period for an amount of $400,000, plus the option to extend the agreement for up to four (4) additional one (1) year options as stated in the RFP.
On May 9, 2017, the Board approved amendment no. 1 to extend the term for an additional year through June 30, 2018 and to increase the total amount by $680,000 projecting an annual cost for linen and scrub rental services at $540,000 instead of $400,000. The initial agreement amount of $400,000 was too low as NMC did not anticipate a significant increase to the volume of patients treated at the trauma center when the contract amount was projected for the RFP. The annual volume of patients treated at NMC had steadily increased since NMC’s designation as a Level II Trauma Center in January 2015 which resulted in a greater demand for scrub rental services and linen processing services.
As an acute care hospital, it is the policy of NMC to maintain a supply of clean linens for at least three (3) complete bed changes for the hospital’s licensed bed capacity in which soiled/contaminated linen is handled as little as possible and with minimum of agitation to prevent microbial contamination of the air and persons handling the linen. In accordance with Title 22 California Code of Regulations (CCR) § 70825, The Joint Commission (TJC) regulations, as well as any other regulating agency that oversees hospital day-to-day operations, NMC is required to utilize a commercial laundry processing service provider for laundry and linen services including rental services consisting mainly of scrubs, mats, and towels. Mission Linen delivers clean linens six (6) days a week and picks up soiled linens for Customer Owned Goods seven (7) days a week. Mission Linen also provides scrub rental services of tops, bottoms, and warm up jackets in which they deliver clean scrubs and pick up dirty scrubs six (6) days a week.
NMC is only requesting an amount of $410,000 for this amendment. This amount is low because of unspent money remaining which had been requested and approved in amendment no. 1. The unspent and approved funds still remain available; therefore, NMC will use that going forward and the additional $410,000 being requested would help fully cover the annual projected amount of $540,000 through June 30, 2019.
Approval of the recommended action will allow Mission Linen to continue providing NMC with linen processing services and scrub rental services in accordance with the regulatory requirements therefore allowing NMC to accommodate any unexpected volume increases to have clean linens available to the patients of NMC and clean scrubs available for NMC staff.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this amendment no. 2 as to legal form, and the Auditor-Controller has reviewed and approved as to payment provisions. This amendment no. 2 has also been reviewed and approved by NMC’s Finance Committee on April 2, 2018 and by its Board of Trustees on April 6, 2018.
FINANCING:
The cost for this amendment no. 2 is $410,000, all of which shall be included in the Fiscal Year 2018-19 Recommended Budget. Should NMC seek extensions of the original agreement, amounts for any extensions will be included in those budgets as appropriate.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The services rendered under this agreement enhance operations at the hospital for improving the patient experience, promotes a healthy environment, and also provides reliable and quality patient care which improves the health and quality of life for patients and their families.
__ Economic Development
__ Administration
X Health and Human Services
__ Infrastructure
__ Public Safety
Prepared by: Richard Magana, Director of Environmental Services, 783-2654
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
Mission Linen Supply Amendment 2
Mission Linen Supply Amendment 1
Mission Linen Supply Agreement
Attachments on file with the Clerk of the Board