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File #: 23-61    Version: 1 Name:
Type: Resolution Status: Passed
File created: 12/27/2022 Departments: HEALTH
On agenda: 1/31/2023 Final action: 1/31/2023
Title: Adopt a resolution authorizing an agreement with Vizient, Inc. to provide Group Purchasing Organization program for the term of February 1, 2023, through January 31, 2026 with two one-year extensions, at no cost to the County of San Mateo.
Attachments: 1. 20230131_att_Vizient, Inc., 2. 20230131_r_Vizient, Inc., 3. 20230131_a_Vizient, Inc.
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 Vizient, Inc. to Provide Group Purchasing Organization Program

RECOMMENDATION:
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Adopt a resolution authorizing an agreement with Vizient, Inc. to provide Group Purchasing Organization program for the term of February 1, 2023, through January 31, 2026 with two one-year extensions, at no cost to the County of San Mateo.

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BACKGROUND:
The County has been using a Group Purchasing Organization (GPO) since 1995. A GPO uses a formal Request for Proposals (RFP) process to enter into contracts to build a catalog of agreements that members can access. In January 2011, San Mateo Medical Center (SMMC) initiated an agreement with the GPO MedAssets Supply Chain Systems, LLC (MedAssets). In February 2016, MedAssets was acquired by Vizient Inc. (Vizient) and is SMMC's current GPO. In December 2022, SMMC completed an RFP for a GPO, and of the five proposals sent to vendors, Vizient was the only vendor to enter a submission.

DISCUSSION:
Vizient contracts with a diverse group of vendors through its Supplier Diversity Team for upcoming contracts by reviewing monthly and quarterly reports to identify key strategies to increase spend with diverse suppliers. In addition, Vizient provides a range of commodities and services, typically at low rates, given the bulk nature of their agreements. Vizient also uses a formal RFP process in securing many of its goods and services and will provide a bid matrix for a specific contract upon request. Accordingly, the goods and services offered through Vizient are materially competitive compared to rates that SMMC would otherwise negotiate on its own. For these reasons, SMMC requests this Board to waive any formal bid or RFP process for goods and services purchased u...

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