Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Agreement with Hologic Sales and Service, LLC to Provide Maintenance and Repair Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with Hologic Sales and Service, LLC to provide maintenance and repair services for the term of August 1, 2026 through July 31, 2029, in an amount not to exceed $350,000.
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BACKGROUND:
Hologic Sales and Service, LLC (Hologic) is the manufacturer of the San Mateo Medical Center’s (SMMC) mammography equipment, which was installed in 2013. In addition, Hologic is the sole provider of software licensing, support, and maintenance for their equipment. SMMC uses the Hologic equipment for all mammography, as well as the storage of mammography images.
DISCUSSION:
This agreement will allow Hologic to continue to provide support and maintenance for SMMC’s mammography equipment in addition to scheduled preventative maintenance checks and regular software upgrades. SMMC is requesting this Board waive the Request for Proposals process because Hologic is the sole provider of the software support and maintenance for their equipment. The proposed agreement was also sourced through the County’s group purchasing organization, Vizient, obtaining favorable pricing terms. This agreement is coming to this Board late due to prolonged negotiations.
The County Attorney has reviewed and approved the resolution and agreement as to form.
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
The Technology Services Department has reviewed and approved the IT component of this agreement.
It is anticipated that Hologic will provide customer service support 100% of the time.
PERFORMANCE MEASURE:
|
Measure |
FY 2025-26 Actual |
FY 2026-27 Estimated |
|
Percentage of time that Hologic will provide customer service support |
100% |
100% |
COMMUNITY IMPACT:
Hologic’s mammography system provides a significant impact for SMMC’s patients by expanding access to high-quality breast cancer screening services. SMMC’s patients span a wide spectrum of races, ethnicities, gender, and gender-identities. Since November 1, 2024, half of the specialty care patients at SMMC were female and half were male, with the largest ethnic cohorts being Hispanic or Latino (58%), and primarily Spanish-speaking (48%).
FISCAL IMPACT:
The term of the agreement is August 1, 2026 through July 31, 2029. The amount of the agreement is not to exceed $350,000 for the three-year term. Funds in the amount of $106,744 are included in the SMMC FY 2025-26 Adopted Budget. Funds in the amount of $116,667 will be included in the SMMC FY 2026-27 Recommended Budget.
The payment provisions and levels of services in this contract differ from those of the previous contract due to favorable pricing through additional discounts we were able to secure from Hologic. The total value of the new contract represents a 6% decrease compared to that of the previous contract.
Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care is covered by the County’s General Fund contribution to SMMC and is within the existing annual appropriation.