Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise Rogers, Chief, San Mateo County Health
Travis Kusman, Director, Emergency Medical Services
Subject: Agreement with Corovan Moving and Storage to Provide Warehousing Services
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Corovan Moving and Storage to provide warehousing services for the storage of emergency medical equipment and supplies, and act as the primary location for Strategic National Stockpile assets from the Centers for Disease Control and Prevention, extending the term through December 31, 2027, and increasing the amount by $695,000, for a total not-to-exceed amount of $1,460,000.
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BACKGROUND:
Federal funds from the Centers for Disease Control and Prevention (CDC) have been allocated to strengthen the nation’s public health emergency preparedness and response infrastructure. Since 2014, in collaboration with local hospitals, San Mateo County Health (SMC Health) has utilized a portion of these funds to lease warehouse space for the storage of emergency medical equipment, supplies, and medications, with costs shared equally by SMC Health and the participating hospitals. This emergency medical stockpile ensures that hospitals and local healthcare providers have a nearby source of critical materials during emergencies and shortages and serves as the primary location for receiving Strategic National Stockpile (SNS) assets during disaster response. The stockpile serves as a short-term, stopgap buffer when immediate supplies are unavailable.
During the COVID-19 pandemic, the stockpile played a critical role in SMC Health’s emergency response, serving as the central hub for receiving, storing, and distributing essential medical materials to local frontline organizations.
In August 2021, SMC Health issued a Request for Proposals (RFP) to secure a full-service warehouse provider for storage, shipping, and safeguarding of emergency medical equipment and SNS assets after the previous provider exited the market.
In December 2021, your Board approved a contract with Corovan Moving and Storage (Corovan) for the term from December 6, 2021, to December 5, 2024, with a not-to-exceed amount of $740,000.
In December 2024, SMC Health exercised its option to amend the agreement, extending the term to February 28, 2025, and increasing the amount by $25,000, bringing the total not-to-exceed amount to $765,000.
DISCUSSION:
SMC Health continues to rely on Corovan’s services to maintain and manage the emergency medical stockpile. Extending the agreement through December 31, 2027, aligns the contract with the term of the CDC readiness grant funding period, which supports SMC Health’s share of costs. Corovan’s role remains critical for ensuring uninterrupted operational readiness and effective response capabilities.
Due to the ongoing need for these specialized services, staff recommends waiving the competitive bidding requirement under County Administrative Memorandum B-1, which permits such a waiver for continuing services. Corovan’s unique expertise in handling the emergency medical supply cache and Strategic National Stockpile (SNS) further justifies the waiver, and the extension ensures alignment of services with the CDC funding timeline.
The agreement and resolution have been reviewed and approved by County Attorney as to form.
The resolution contains the County’s standard provisions, allowing further amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
The warehouse must remain fully operational at all times to support the SMC Health response during emergencies and disasters. To ensure readiness, the SMC Health Emergency Medical Services (EMS) Health Emergency Preparedness Unit will conduct a cybersecurity-focused preparedness exercise to test the warehouse's ability to maintain functionality and safeguard critical assets during a cyber incident.
PERFORMANCE MEASURE:
|
Measure |
FY 2023-24 Estimated |
FY 2024-25 Projected |
|
Number of cybersecurity focused health emergency preparedness exercises conducted at the warehouse for operational readiness purposes |
0 |
1 |
FISCAL IMPACT:
The term of the agreement with Corovan is December 6, 2021, through December 31, 2027. The amount of the agreement is not to exceed $1,460,000 for the full contract term.
The services under this agreement are funded by the CDC Cities Readiness Initiative grant and equal contributions from hospitals participating in the local pharmaceutical stockpile.
Funds in the amount of $140,000 are included in the EMS FY 2024-25 Budget. Similar arrangements will be made for future fiscal years.
There is no Net County Cost associated with the approval of this agreement.