Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Cassius Lockett, PhD, Director, Public Health Policy and Planning
Subject: Hologic Gen-Probe Sales and Services, Inc. Vendor Agreement
RECOMMENDATION:
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Adopt a resolution:
A) Waiving the competitive bidding process for test kits and reagents that will result in a vendor agreement with a sole source vendor; and
B) Authorizing the Purchasing Agent to renew a Reagent Purchase and System Loan Agreement with Hologic Gen-Probe Sales and Service, Inc. for sole source test kits and reagents that will result in a vendor agreement for a five-year term effective from the date the Reagent Purchase and System Loan Agreement has been executed by both parties, for a maximum obligation of $1.89 million; and
C) Authorizing the Purchasing Agent to add new sole source reagents and test supplies to the Reagent Purchase and System Loan Agreement as necessary.
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BACKGROUND:
For the last sixteen years, the County has contracted with Hologic Gen-Probe to provide test kits and reagents for the collection of bodily fluids and the determination of symptoms indicating certain communicable diseases. Hologic Gen-Probe has also loaned the County, via a loan agreement, molecular testing equipment.
DISCUSSION:
The Public Health Laboratory (PHL) is committed to optimizing its methodology for testing infectious diseases. Hologic Gen-Probe offers products that use nucleic acid molecular testing procedures for chlamydia and gonorrhea tests through cervical swabs, urethral swabs, urine specimens, and other anatomical sites recommended by the Centers for Disease Control and Prevention. The automated platform used for chlamydia and gonorrhea testing also allows the PHL to test for HIV and hepatitis C viral load monitoring for San Mateo County Health clients.
Hologic Gen-Probe, the only company that provides FDA-approved molecular identification of mycobacteria, also has products and equipment that identify mycobacteria such as tuberculosis.
Under this agreement, Hologic Gen-Probe will continue to loan the County molecular testing equipment.
We are requesting that your Board waive the competitive bidding process for test kits and reagents, since Hologic Gen-Probe is a sole source provider of FDA-approved molecular identification of mycobacteria, as well as supplies and reagents used for chlamydia, gonorrhea, and HIV and hepatitis C viral load tests performed on proprietary automated equipment.
County Counsel and the Purchasing Department have reviewed and approved the Reagent Purchase and System Loan Agreement and Resolution. The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, and non-discrimination. The County Manager has granted a waiver of the Equal Benefits Ordinance based on Hologic Gen-Probe being a sole source provider. Hologic Gen-Probe offers equal benefits to legally married spouses regardless of gender. Hologic Gen-Probe is planning to change its policies and offer equal benefits for domestic partners during the coming fiscal year.
Approval of this agreement contributes to the Shared Vision 2025 outcome of a Healthy Community by allowing the purchase of supplies that provide rapid and accurate test results for a variety of communicable diseases. It is anticipated that the test volume for chlamydia/gonorrhea, mycobacteria, and HIV / Hepatitis C Viral Load will be 16,000, 350, and 1,236, respectively. The rapid identification of these diseases is a critical component in minimizing their impact on the safety of the public.
PERFORMANCE MEASURE:
|
Measure |
FY 2017-18 Actual |
FY 2018-19 Estimate (based on Q1 data) |
|
Annual Test Volume Chlamydia and Gonorrhea Tests |
15,925 |
16,000 |
|
Annual Test Volume Mycobacteria Identification Tests |
366 |
350 |
|
Annual Test Volume HIV / Hepatitis C Viral Load Tests |
1,050 |
1,236 |
FISCAL IMPACT:
The term of the vendor agreement will be for three years, with an option to renew for five years from the date the Reagent Purchase and System Loan Agreement has been executed by both parties. The department of Public Health Policy Planning (PHPP) will reorder supplies as needed, but in an amount not to exceed $1.89 million over a five-year period. Of that amount, $283,500 is included in the PHPP FY 2018-19 Adopted Budget. Similar arrangements will be made for future budget years. The PHL has applied a cost-based testing fee schedule which covers the cost of reagents and supplies purchased under this vendor agreement.