Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Agreement with UltraEx, LLC to Provide Courier and Delivery Services
RECOMMENDATION:
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Adopt a resolution authorizing an agreement with UltraEx, LLC to provide courier and delivery services for the term of April 1, 2020 through March 31, 2025, in an amount not to exceed $1,250,000.
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BACKGROUND:
San Mateo Medical Center (SMMC) has a continuing need for courier and delivery services to move supplies, lab specimens, and deposits to and from its offsite clinics.
DISCUSSION:
In November 2019, SMMC completed a Request for Proposals for courier and delivery services. UltraEx, LLC was chosen based on their efficient routing solutions as well as being the most cost effective. This agreement is going to the Board late due to prolonged negotiations with the vendor.
The County’s Contract Compliance Committee has approved a waiver request for a five-year term for this agreement.
The agreement and resolution have been reviewed and approved by County Counsel 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).
It is anticipated that SMMC’s delivery needs will be met 98% of the time.
PERFORMANCE MEASURE:
|
Measure |
FY 2019-20 Estimated |
FY 2020-21 Projected |
|
Percentage of time that SMMC’s delivery needs will be met |
98% |
98% |
FISCAL IMPACT:
The term of the agreement is April 1, 2020 through March 31, 2025. The amount of the agreement is not to exceed $1,250,000 for the five-year term. Funds in the amount of $62,500 are included in the SMMC FY 2019-20 Adopted Budget. Funds in the amount of $250,000 are included in the SMMC FY 2020-21 Recommended Budget. Similar arrangements will be made for future years.
The payment provisions in this contract differ from that of the previous contract due to increased fuel costs. The total value of the new contract represents a 15% increase 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.
ATTACHMENT:
RFP Matrix