Title
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute Amendment No. 3 to the Agreement (A-12051) with Mission Linen Supply for Linen Processing Services pursuant to the terms of Request for Proposal (RFP#9600-16), adding $180,000 for a revised total Agreement amount not to exceed $2,107,000 and no change to the term.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute Amendment No. 3 to the Agreement (A-12051) with Mission Linen Supply for Linen Processing Services pursuant to the terms of Request for Proposal (RFP#9600-16), adding $180,000 for a revised total Agreement amount not to exceed $2,107,000 and no change to the term.
SUMMARY/DISCUSSION:
In April 2011, NMC went out for Request for Proposal (RFP#9600-16) for Linen Processing services. The NMC selection/scoring committee selected Mission Linen Supply as its vendor of choice. On July 26, 2011, the Board of Supervisors approved the agreement between NMC and Mission Linen Supply. The initial term of the agreement went from July 1, 2011 until June 30, 2014 with the option for two (2) additional one (1) year extensions. Effective July 1, 2014 the Board approved a first amendment extending the term to June 30, 2015 with no additional dollars added. Effective April 7, 2015 the Board approved a second amendment adding additional services, extending the agreement to June 30, 2016 and adding $502,000. This third amendment would add an additional $180,000 with no change in term.
Mission Linen Supply provides laundry and linen services including scrubs, mat and rug rentals. They deliver clean linen and pick up soiled linen for Customer Owned Goods (COG) six (6) days a week. The vendor provides a Hospital Account Manager assigned to NMC to ensure that product and service levels are met on a continuous basis. They provide, at no cost to NMC, bulk carts to be used in the delivery of clean linen and for soiled linen pick up. Bulk carts are not used for clean linen unless they are cleaned according to The Joint Commission standards after every use. Mission Linen Supply is able to meet this regulatory requirement.
The funds requested in Amendment No. 3 are required to allow for services to continue through the end of the agreement’s term of June 30, 2016. The increase is not due to price increases or a change in services. The increase is due to several changes in the volume of patients, services provided, and staffing increases. NMC’s pounds of linens being processed are up compared to previous years. The amount of staff wearing scrubs has gone up significantly as well as the hours worked for current staff that wears scrubs. Lastly NMC’s services have expanded also contributing to both the amount of scrubs being used and the amounts of dirty linens being processed.
NMC is currently in the final steps of a RFP process for linen processing services. NMC anticipates starting services with the awardee(s) beginning July 1, 2016.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment No. 3 as to legal form and risk provisions, and the Auditor-Controller has reviewed and approved as to payment provisions. The Amendment No. 3 has also been reviewed and approved by NMC’s Finance Committee on April 28, 2016 and by its Board of Trustees on May 6, 2016.
FINANCING:
The cost for Amendment No. 3 is $180,000 which is included in the Fiscal Year 2015-16 Adopted Budget. There is no impact to the General Fund.
Prepared by: Richard Magana, Hospital Director of Environmental Services, 783-2654
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
Amendment No. 3 with Mission Linen Supply
Amendment No. 2 with Mission Linen Supply
Amendment No. 1 with Mission Linen Supply
Original Agreement with Mission Linen Supply
Spend Sheet
Attachments on file with Clerk of the Board