The equipment was installed on October 10, 2005. Instrument validation, correlation studies, and staff training have been completed. Some high volume tests previously outsourced to a reference lab are not being performed in-house. In order to process both high volume and low volume test in-house, it is necessary to maintain two agreements with Olympus for test materials. Performing these tests in-house will give SMMC a cost savings of approximately $162,000 in FY2007 and $216,000 in 2008. The more specialized tests will still be provided by Quest Diagnostics.
The Cost Per Reportable (CPR) Agreement includes test materials such as reagents, calibrators, consumables, and service coverage on the equipment through the end of the 60-month CPR Agreement. It is an agreement based on volume used, with a price commitment from Olympus and a volume commitment from SMMC. SMMC must purchase stated monthly minimum amounts in order to maintain committed pricing.
The Supplies Agreement includes reagents, calibrators, and consumables at 30% discount, for low volume tests, with no volume commitment.
The availability of reagents adapted to the Olympus analyzers can improve the turn-around time of test results, reduce the expenses by retaining testing in-house, and increase revenue from reimbursements. Therefore SMMC is requesting that your Board authorize the Purchasing Agent to amend either agreement as new reagents become available due to new technology.
Because the analyzers are manufactured by Olympus, we are required to use only reagents manufactured by Olympus, therefore SMMC is requesting a waiver of the bid process.
The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.
County Counsel and Risk Management have reviewed and approved these Agreements.
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