Title
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute Agreement #00005779-216263-001 with Ortho Clinical Diagnostics for Laboratory Equipment Maintenance and Repair Services at NMC, retroactive to October 15, 2015, for an amount not to exceed $144,900 for the period of October 15, 2015 through October 14, 2018.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute Agreement #00005779-216263-001 with Ortho Clinical Diagnostics for Laboratory Equipment Maintenance and Repair Services at NMC, retroactive to October 15, 2015, for an amount not to exceed $144,900 for the period of October 15, 2015 through October 14, 2018.
SUMMARY/DISCUSSION:
The Ortho Clinical Vitros 5600 Integrated analyzer is an instrument that tests many different substances in a patient’s blood. The testing that is completed on this instrument is critical for the management of patient care throughout the hospital. A patient’s course of treatment is determined by the results generated by the instrument and can influence medication dosages prescribed, therefore accuracy is critical. Two Vitros 5600 were purchased by NMC in 2011. The instruments are highly complex and The Vitros 5600 has a maintenance schedule that needs to be completed to keep it running at optimal performance.
Joint Commission Standard EC.02.04.01 states, “The laboratory manages laboratory equipment risks. The laboratory identifies, in writing, the activities and frequencies for inspecting, testing (including function checks), and maintaining laboratory equipment based on the following:”
• Manufacturer’s recommendations
• Identified Risks
• Clinical Laboratory Improvement Amendments (CLIA ’88) of 1988 guidelines.
• History and experience with the laboratory equipment
The laboratory monitors and reports all incidents in which laboratory equipment is suspected in or attributed to the death, serious injury, or serious illness of any individual, as required by the Safe Medical Devices Act of 1990.
Joint Commission Standard EC.02.04.03 states:
• The laboratory inspects, tests, and maintains laboratory equipment.
• The laboratory documents major repairs and parts replacement for each instrument or piece of equipment for the life of the instrument.
• The laboratory performs preventative maintenance, periodic inspections and performance testing of each instrument or piece of equipment.
NMC is asking for approval of the service contract needed for maintenance and repair for two Ortho Clinical Vitros 5600 analyzers for a three year term to maintain the equipment at a safe level for patient care and comply with laboratory regulations. By issuing the Agreement for a three year term NMC receives a discounted rate for services.
NMC successfully negotiated the inclusion of the county’s insurance and mutual indemnification language into the Agreement via the attached Addendum to the Agreement #00005779-216263-001. This was the first time NMC had been successful at these negotiations. These negotiations took longer than expected to be approved by the legal counsel at Ortho Clinical Diagnostics so this Agreement and Addendum did not make it to the Board of Supervisor’s before the start date of October 15, 2015. Therefore NMC is requesting that this Agreement be retroactive to October 15, 2015.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Agreement as to legal form. The Auditor-Controller has reviewed and approved as to payment provisions. The Agreement has also been reviewed and approved by NMC’s Finance Committee on 8/27/15 and by the NMC Board of Trustees on 9/11/15.
FINANCING:
The cost for this Agreement is $144,900 of which $48,300 is included in the Fiscal Year 2015-16 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: Heidi Riggenbach, Clinical Lab Director, 772-7660
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
Agreement with Ortho Clinical Diagnostics with Addendum
Attachment on file with the Clerk of the Board