Title
Authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. 1 to the Agreement (A-12051/MYA165) with Mission Linen Supply for Linen Cleaning Services at NMC, extending the Agreement from July 1, 2011 to June 30, 2015 for a total Agreement amount not to exceed $1,425,000 in the aggregate; no increase from the previously approved amount.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors authorize the Purchasing Manager for Natividad Medical Center (NMC) to execute Amendment No. 1 to the (A-12051/MYA165) with Mission Linen Supply for Linen Cleaning Services at NMC, extending the Agreement from July 1, 2011 to June 30, 2015 for a total Agreement amount not to exceed $1,425,000 in the aggregate; no increase from the previously approved amount.
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 two (2) 2 additional one (1) year extensions. NMC at this time wishes to exercise the option to extend the initial term of the agreement by one year. This will extend the term from July 1, 2014 through June 30, 2015.
Mission Linen provides laundry and linen services including Scrub, 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.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this Amendment No. 1 as to legal form and risk provisions. Auditor-Controller has reviewed and approved this Amendment No. 1 as to fiscal provisions. The CAO-Budget and Analysis Division has advised to inform the BOS the spending authority (appropriations) associated with NMC's FY 2014 Adopted Budget has been exceeded and approval and authorization for modification of NMC's appropriation budget should be presented to the BOS. Since NMC is an Enterprise Fund, this does not prevent continued expenditures, but it is considered good public policy, transparency and fiscal management. The Amendment has also been reviewed and approved by Natividad Medical Center's Finance Committee 5.29.14 and Board of Trustees 6.6.2014.
FINANCING:
There is no cost for this Amendment No. 1 and is included in the Fiscal Year 2014/2015 Recommended Budget. NMC is confirming its appropriations position and if its spending authority has been exceeded will return to the Board. Per the Request for Proposals (RFP) #9600-16 for Linen Processing Services, NMC has chosen Mission Linen Supply as its vendor of choice. The Board of Supervisors approved the original not to exceed amount of $1,425,000. The agreement (No. A-12051/MYA165) shows a remaining balance of $422,323. The Remaining funds from the previous year's purchase orders will be rolled over for Fiscal Year 2014/15. There is no impact to the General Fund.
Prepared by: Richard Magana, Hospital Director of Environmental Services 783-2654
Approved by: Harry Weis, Chief Executive Officer, 783-2553
Attachments: Amendment No. 1, Original Agreement, and Spend Sheet.
Attachments on file with the Clerk to the Boards Office