Inter-Departmental Correspondence

San Mateo Medical Center



February 7, 2008


May 6, 2008







Honorable Board of Supervisors


Sang-ick Chang, MD, Chief Executive Officer
San Mateo Medical Center


Agreement with Blood Centers of the Pacific



Adopt a resolution:



Waiving the Request for Proposal (RFP) process



Authorizing the execution of an Agreement with Blood Centers of the Pacific to provide blood and blood products to San Mateo Medical Center (SMMC) for the term January 1, 2008 to December 31, 2008, in an amount not to exceed $671,748



Authorizing the Chief Executive Officer (CEO) of San Mateo Medical Center or the CEO's designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions



Commitment: Ensure Basic Health and Safety for All.

Goal 5: Provide residents access to healthcare and preventive care.

The Agreement contributes to this commitment and goal by providing blood, blood components, and blood derivatives to county patients at SMMC.


Performance Measure(s):


FY 2006-07

FY 2007-08

Number of units of blood products used




The number of units of blood products used decreased due to transferring the purchase of Albumin to the SMMC Pharmacy.


In December 2003, SMMC issued a Request for Proposal (RFP) for blood and blood services. The RFP was sent to three local providers: American Red Cross, Stanford Medical School Blood Center, and the Blood Centers of the Pacific. Stanford Medical School Blood Center and American Red Cross both declined. As with previous RFPs, Blood Centers of the Pacific was the only organization to respond.



An inquiry for possible providers of this service was conducted by the SMMC Laboratory Director in November 2006 with no success. Blood Centers of the Pacific continues to be the only provider capable of fulfilling SMMC’s needs.

Blood Centers of the Pacific has been providing services to SMMC since 1989. The maximum amount on the previous Agreement with Blood Center of the Pacific was $736,350 for one year. Evolving technology and frequent modifications to FDA requirements affect the costs incurred in producing a safer product. Due to these rapidly changing requirements, which consequently affect their rates, Blood Centers of the Pacific will only enter into one-year agreements.

In November 2007, Blood Centers of the Pacific gave notice that rates will increase by 4% due to additional testing required to ensure the safety of blood products and to rising cost of transportation fees. However, based on usage the contract amount for 2008 is less than the 2007 contract. In an effort to maintain costs at the previous year’s expenses, blood product usage and ordering practices will continue to be monitored for better utilization.

This item was reviewed by the Health System Redesign Initiative Team and aligns with the first-year implementation plan approved by the Board of Supervisors on March 25, 2008.

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

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.


The term of the Agreement is one year, January 1, 2008 through December 31, 2008. The maximum amount of the Agreement is $671,748, which is a savings of $64,602 from the previous Agreement. Funds to pay for these services are included in San Mateo Medical Center’s FY2007-08 Adopted Budget and funds will be included in the budget request for FY2008-09.