Title
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute Amendment No. 2 to the Agreement (A-12530) with Modular Devices Inc. for additional equipment and installation services at NMC, extending the Agreement an additional one year period for a revised term of August 1, 2013 through July 31, 2017 and adding $1,159,500 for a revised total Agreement amount not to exceed $3,612,000.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute Amendment No. 2 to the Agreement (A-12530) with Modular Devices Inc. for additional equipment and installation services at NMC, extending the Agreement an additional one year period for a revised term of August 1, 2013 through July 31, 2017 and adding $1,159,500 for a revised total Agreement amount not to exceed $3,612,000.
SUMMARY/DISCUSSION:
NMC entered into a lease agreement with Modular Devices to provide a Mobile Computerized Tomography (CT) laboratory and a mobile Angiography/interventional Radiology (TR) Laboratory services for the term August 1, 2013 through July 31, 2016. The Board of Supervisors approved the lease on July 30, 2013. The current request submitted for approval is to add an additional Magnetic Resonance Imaging (MRI) mobile unit to enhance MRI capabilities. MRIs are used when it is necessary to obtain precise images of the brain, muscles, heart or certain cancers since no ionizing radiation is used during the procedure.
NMC currently has a 1.0 Tesla MRI in the Radiology department and the MRI equipment is approximately 15 years old. The manufacturer cannot upgrade the unit to a newer version and it has been deemed end of life by the manufacturer. NMC Radiology is beginning the process of a modernization project which will include upgrading the MRI unit to a newer 1.5 Tesla MRI. Until the construction is complete, an upgraded MRI model is needed to enhance the services the Radiology Department can provide to all service lines at NMC. A newer unit will be able to offer advanced studies that NMC cannot currently perform on a 1.0 Tesla MRI. An additional unit will also offer added appointment times to service patients in need. The MRI Department has increased patient volume by 26% year to date as of third quarter FY 2015 and volume is expected to continue to rise. The current MRI suite at NMC will be converted to a new CT room during the future upgrade process and new MRI suite will be located adjacent to the CT room at that time. NMC has plans to upgrade the MRI unit that will be located in the new MRI suite to a 3.0 Tesla MRI. The existing MRI equipment will be moved out during the construction phase and having a mobile MRI is key to maintaining all services at the existing level. NMC has a working relationship with Modular Devices therefore NMC recommends expanding the partnership with Modular Devices to include the Mobile 1.5 MRI. Modular Devices have a readily available a mobile 1.5 MRI unit that can be delivered shortly after board approval.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment No.2 as to legal form and risk provisions, and the Auditor-Controller has reviewed and approved as to payment provisions. The Amendment No.2 has also been reviewed and approved by NMC’s Finance Committee on April 23, 2015 and by its Board of Trustees on May 1, 2015.
FINANCING:
The cost for this Amendment is $1,159,500 of which $330,000 was budgeted in the FY15-16 Recommended Budget. There is no impact to the General Fund.
Prepared by: Andrea Rosenberg, Assistant Administrator, 783-2562
Approved by: Dr. Gary Gray, Interim Chief Executive Officer, 783-2504
Attachments:
Amendment No. 2
Amendment No. 1
Original Agreement
Spend Sheet
Attachments on file with the Clerk of the Board