Title
Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute amendment No. 4 to the agreement (A-13241) with Mission Linen Supply for linen processing services per Request for Proposal (RFP) # 9600-65, extending the agreement an additional one (1) year period (July 1, 2019 through June 30, 2020) for a revised full agreement term of July 1, 2016 through June 30, 2020, and adding $410,000 for a revised total agreement amount not to exceed $1,900,000.
Report
RECOMMENDATION:
It is recommended the Board of Supervisors:
a. Authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) or his designee to execute amendment No. 4 to the agreement (A-13241) with Mission Linen Supply for linen processing services per Request for Proposal (RFP) # 9600-65, extending the agreement an additional one (1) year period (July 1, 2019 through June 30, 2020) for a revised full agreement term of July 1, 2016 through June 30, 2020, and adding $410,000 for a revised total agreement amount not to exceed $1,900,000.
SUMMARY/DISCUSSION:
NMC issued a Request for Proposal (RFP) # 9600-64 on March 16, 2016 to solicit for one or more new agreements for linen processing services and scrub rental services from qualified vendors. Upon a thorough selection process by NMC, Mission Linen Supply was found to be the most qualified vendor and was awarded an agreement to provide linen processing services and scrub rental services for NMC. The Board of Supervisors approved Agreement (A-13241) for a one (1) year period from July 1, 2016 through June 30, 2017 with an option to extend the Agreement for four (4) additional one year periods, and a total agreement amount not to exceed $400,000 as stated in the RFP.
On May 9, 2017, the Board of Supervisors approved amendment no. 1 to extend the term of the agreement for an additional one (1) year period through June 30, 2018 to allow for services to continue, and to add an additional $680,000 based on an increase in the annual projected spend from $400,000 to $540,000 for linen and scrub rental services. The initial agreement amount of $400,000 was too low as NMC did not anticipate a significant increase in the volume of patients treated at the trauma center when the contract amount was projected for the RFP. The annual volume of patients treated at NMC has steadily increased since NMC’s designation as a Level II Trauma Center in January 2015, which resulted in a greater demand for scrub rental services and linen processing services.
On May 8, 2018, the Board of Supervisors approved amendment no. 2 to extend the term of the agreement for an additional one (1) year period through June 30, 2019, to allow for services to continue, and to add an additional $410,000 in funds for the additional year of services. As an acute care hospital, it is the policy of NMC to maintain a supply of clean linens for at least three (3) complete bed changes for the hospital’s licensed bed capacity in which soiled/contaminated linen is handled as little as possible and with minimum of agitation to prevent microbial contamination of the air and persons handling the linen. In accordance with Title 22 California Code of Regulations (CCR) § 70825, The Joint Commission (TJC) regulations, as well as any other regulating agency that oversees hospital day-to-day operations, NMC is required to utilize a commercial laundry processing service provider for laundry and linen services consisting mainly of scrubs, mats, and towels.
On February 13, 2019, NMC amended the agreement via amendment no. 3 to move to customer owned scrubs instead of rental scrubs to better control inventory and internal costs. Mission Linen Supply will still launder NMC’s owned scrubs at a fixed cost of $0.42 per piece. This will enable Natividad to maintain its own par levels in-house.
NMC is requesting approval to extend the agreement with Mission Linen Supply for an additional one (1) year period through June 30, 2020 to allow for services to continue, with a $410,000 increase in funds for the additional year of service. Approval of the recommended action will allow Mission Linen Supply to continue providing NMC with linen processing services in accordance with the regulatory requirements as well as accommodate any unexpected volume increases. Having a reliable and available service provider is crucial in the NMC’s day-to-day operations and will allow NMC to continue to have clean linens available to NMC patients, and clean scrubs available for the NMC staff.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved this amendment No.4 as to legal form, and the Auditor-Controller has reviewed and approved as to payment provisions. The amendment No. 4 has also been reviewed and approved by NMC’s Finance Committee on March 28, 2019 and by its Board of Trustees on April 5, 2019.
FINANCING:
The cost for this amendment No. 4 is $410,000 of which $84,000 is included in the Fiscal Year 2018-19 Adopted Budget. Amounts for remaining years of the agreement will be included in those budgets as appropriate.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The services rendered under this agreement enhance operations at the hospital by improving the patient experience, promoting a healthy environment, and also providing reliable and quality patient care which improves the health and quality of life for patients and their families.
__ Economic Development
__ Administration
X Health and Human Services
__ Infrastructure
__ Public Safety
Prepared by: Richard Magana, Director of Environmental Services, 783-2654
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
Mission Linen Supply Amendment 4
Mission Linen Supply Amendment 3
Mission Linen Supply Amendment 2
Mission Linen Supply Amendment 1
Mission Linen Supply Agreement
Attachments on file with the Clerk of the Board