COUNTY OF SAN MATEO

Inter-Departmental Correspondence

San Mateo Medical Center

DATE:

May 26, 2006

BOARD MEETING DATE:

June 27, 2006

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Nancy J. Steiger, Chief Executive Officer, San Mateo Medical Center

SUBJECT:

Amendment to the Agreement with GE Medical Systems

RECOMMENDATION:

Approve a Resolution authorizing the President of the Board to execute an Amendment to the Agreement with GE Medical Systems for preventive maintenance and services of general biomedical and imaging equipment, increasing the maximum amount by $59,317 and bringing the total obligation to $2,440,653.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government

Goal 20): Government decisions are based on careful consideration of future impact rather than temporary relief or gain.

Performance Measure(s):

Measure

FY 2004-05
Actual

Quarterly Preventive Maintenance Completion

100%

BACKGROUND:

On December 18, 2001, your Board approved a consolidated three-year Agreement with GE Medical Systems for preventative maintenance and repair of imaging and biomedical equipment. The term of the Agreement is January 1, 2002 to December 30, 2004 with a maximum amount of $1,701,336. The Agreement was subsequently amended to increase the maximum amount by $680,000 from $1,701,336 to $2,381,336 and to extend the term of the Agreement by one year, making the new term of the Agreement January 1, 2002 to December 30, 2005. The increase included the costs of coverage for the new equipment at SMMC, BLTC, and the Women and Children Services, as well as the cost of coverage of the one-year extension.

As a result of a Request for Proposal (RFP) conducted in mid 2005, SMMC was able to negotiate a lower annual cost with Genesis Technology Partners. The term of the Agreement is January 1, 2006 to December 31, 2008, at a cost of $642,500 annually, with a maximum amount of $1,927,500 for the three year term.

DISCUSSION:

Prior to the termination of the contract with GE Medical Systems, an audit was conducted to validate final GE Medical Systems charges. The audit was completed

in March 2006 only after all invoices were received from GE Medical Systems and Genesis Technology Partners could attest to the invoices for repairs completed by GE Medical Systems.

It is necessary to amend the contract with GE Medical Systems in order to pay for these final invoices. The maximum amount of all these invoices is $59,317.

County Counsel and Risk Management have reviewed and approved this Amendment.

FISCAL IMPACT:

This Amendment increases the amount of the previous Agreement with GE Medical Systems by $59,317, from $2,381,336 to $2,440,653. Funds are included in SMMC’s FY2005-06 Adopted Budget.