COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Health System

DATE:

April 24, 2009

BOARD MEETING DATE:

May 19, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Jean Fraser, Chief, Health System

Brian J. Zamora, Director, Community Health

SUBJECT:

Roche Diagnostic Corporation Vendor Agreement

RECOMMENDATION:

Adopt a Resolution:

1. Waiving the Invitation to Bid process for reagents, test supplies, ancillary equipment, and equipment maintenance that will result in a Vendor Agreement necessary to utilize the LightCycler Nucleic Acid Purification and Sequence Analysis System previously purchased from Roche Diagnostic; and

2. Authorizing the Purchasing Agent to enter into an Alliance Usage Agreement with Roche Diagnostic for reagents, test supplies, ancillary equipment, and equipment maintenance that will result in a Vendor Agreement for a three-year term, for a maximum obligation of $950,000; and

3. Authorizing the Purchasing Agent to add new reagents, test supplies, and ancillary equipment to the Vendor Agreement as necessary.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goals 5 and 7: Residents have access to healthcare and preventive care; and maintain and enhance the public safety of all residents and visitors.

This Vendor Agreement contributes to the commitment and goals by allowing for the purchase of supplies which will provide rapid and accurate test results for a variety of communicable diseases. The rapid identification of these diseases is a critical component in minimizing their impact on the safety of the public.

Performance Measure:

Measure

FY 2008-09

Estimate

FY 2009-10
Target

Percent of laboratory proficiency tests each Public Health Microbiologist passes each year.

90%

90%

BACKGROUND:

On March 29, 2005, your Board approved a Vendor Agreement with Roche Diagnostic Corporation which allowed for the purchase of a LightCycler Nucleic Acid Purification and Sequence Analysis System (LCS). The equipment provides for a faster testing process than traditional culture methods, and provides “same-day” results for many pathogens, such as Norovirus, Influenza, and Herpesvirus. This equipment is the same equipment that is used by the California Department of Health Virus and Rickettsial Disease Laboratory to develop reagents for new and emerging pathogens such as Severe Acute Respiratory Syndrome (SARS), Avian Influenza, West Nile Virus and, recently, Swine Influenza. Protocols developed by the State can be used by other laboratories if they use the same technology and procedures, which is advantageous because many of these pathogens are newly emerging and there are no commercial tests readily available.

DISCUSSION:

A waiver of the Invitation to Bid process is requested for reagents, test supplies, ancillary equipment, and equipment maintenance that will result in a Vendor Agreement necessary to utilize the LCS previously purchased from Roche Diagnostic. Roche Diagnostic is the only company that sells supplies and provides maintenance for the LCS.

County Counsel and the Purchasing Department have reviewed and approved this Alliance Usage Agreement and Resolution. 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.

FISCAL IMPACT

The term of the Vendor Agreement will be three years. The Agreement maximum obligation will be $950,000, of that amount $50,000 is included in the Community Health Adopted FY 2008-09 Budget, and $300,000 is included in the Community Health FY 2009-10 Recommended Budget. Net County Cost for FY 2008-09 will be approximately $25,000, and for FY 2009-10 will be approximately $150,000. Funds for subsequent years will be included in the appropriate Recommended Budgets.