Title
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute Amendment No. 10 to the agreement (A-11879) with KPMG LLC for IT Consulting services, extending the agreement an additional five (5) month period (April 1, 2017 through August 30, 2017) for a revised full agreement term of June 1, 2010 through August 30, 2017, and adding $301,560 for a revised total agreement amount not to exceed $11,647,830.
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. 10 to the agreement (A-11879) with KPMG LLC for IT Consulting services, extending the agreement an additional five (5) month period (April 1, 2017 through August 30, 2017) for a revised full agreement term of June 1, 2010 through August 30, 2017, and adding $301,560 for a revised total agreement amount not to exceed $11,647,830.
SUMMARY/DISCUSSION:
NMC is in the process of reducing its reliance on independent contractors. NMC’s goal is to fully staff its Information Technology (“IT”) department with County employees wherever possible and to rely on the skills and expertise of independent contractors on a limited, project-specific basis when it is in the best interest of the county to do so.
NMC currently has two existing IT consulting agreements; one with KPMG and one with Navin Haffty & Associates, both of which expire on March 31, 2017. NMC recently completed a Request for Proposals (RFP) for NMC IT consulting needs as projected for the future. Three consulting firms were awarded and those agreements were approved by the Board of Supervisors January 10, 2017. Navin Hafftey & Associates was selected as one of the top three respondants of the RFP, however, KPMG was not one of the top three so they were not awarded a new agreement. However, the current KPMG resources are needed to complete their current assignments and/or ultimately transition to the newly selected firms awarded via the RFP. NMC has put together a transition plan for the current KPMG consultants.
This amendment will allow the existing KPMG resources to work through to the completion of their respective projects or until a stable transition point has been reached; NMC needs to extend one KPMG resource working on the Meditech Operating Room Manager (ORM) project that is slated to go live the end of April 2017 and will need post live support for several months thereafter. Two other resources are working on the PRIME (Public Hospital Redesign and Incentives in Medi-Cal) Project, one resource will need an additional month to complete data validation tasks and the other will need three months to complete PRIME data architecture deliverables and transition. Due to the complexity of these projects it would be disruptive and costly to try to transition at this late stages Therefore, a five month extension of the term is requested to ensure NMC projects are not put at risk.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment No. 10 as to legal form and risk provisions, and the Auditor-Controller has reviewed and approved as to payment provisions. The Amendment No. 10 has also been reviewed and approved by NMC’s Finance Committee on January 26, 2017 and by its Board of Trustees on February 3, 2017.
FINANCING:
The cost for this Amendment No. 10 is $301,560 of which $241,000 is included in the Fiscal Year 2016-17 Adopted Budget. Amounts for remaining years of the agreement will be included in those budgets as appropriate. There is no impact to the General Fund.
Prepared by: Charles R. Harris, MD, 783-2785
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
KPMG Amendment No. 10
KPMG Amendment No. 9
KPMG Amendment No. 8
Assignment and Assumption Agreement between KPMG, LLC and Beacon Partners, Inc.
Beacon Partners Amendment No. 7
Beacon Partners Amendment No. 6
Beacon Partners Amendment No. 5
Beacon Partners Amendment No. 4
Beacon Partners Amendment No. 3
Beacon Partners Amendment No. 2
Beacon Partners Amendment No. 1
Beacon Partners Original Agreement
Spend Sheet
Attachments on file with the Clerk of the Board