SUBJECT: Automated Medication Dispensing System and Related Services with CareFusion Solutions, LLC

County of Santa Clara Procurement Department 80328 DATE: April 12, 2016 TO: Board of Supervisors FROM: Jenti Vandertuig, Director of Procuremen...
Author: Leonard West
4 downloads 6 Views 248KB Size
County of Santa Clara Procurement Department

80328

DATE:

April 12, 2016

TO:

Board of Supervisors

FROM:

Jenti Vandertuig, Director of Procurement

SUBJECT: Automated Medication Dispensing System and Related Services with CareFusion Solutions, LLC. RECOMMENDED ACTION Consider recommendations relating to automated medication dispensing system and related services. (Procurement Department) Possible action: a. Approve Agreement No. 5500002746 with CareFusion Solutions, LLC (CareFusion) relating to providing automated medication dispensing system and related services in an amount not to exceed $16,000,000 for period April 12, 2016 through October 11, 2024, that has been reviewed and approved by County Counsel as to form and legality. An exception to Board of Supervisors Policy 5.4.5.4, Length of Term of Contracts, has been approved by the Office of Countywide Contracting Management. b. Approve Ninth Amendment to Agreement No. 5500002007 with CareFusion, relating to providing automated medication dispensing system and related services, increasing the maximum contract amount by $2,000,000 from $6,000,000 to $8,000,000, and extending the Agreement for an 18-month period through October 11, 2017, that has been reviewed and approved by County Counsel as to form and legality. An exception to Board of Supervisors Policy 5.4.5.4, Length of Term of Contracts, has been approved by the Office of Countywide Contracting Management. FISCAL IMPLICATIONS There is no fiscal impact to the General Fund as a result of this action. Santa Clara Valley Health and Hospital System (SCVHHS) will utilize funds from their approved budget for these purchases. CONTRACT HISTORY Agreement No. 5500002007:

Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian County Executive: Jeffrey V. Smith

Page 1 of 5

On October 27, 2009, the Procurement Department issued a Request for Proposal (RFP) No. 1042 for automated medication dispensing equipment and related services and received three (3) responses. As a result of the solicitation on November 23, 2010, the Board of Supervisors approved Agreement No. 5500002007 with CareFusion relating to providing automated medication dispensing equipment and related services in an amount not to exceed $3,000,000 for the period July 1, 2011 through June 30, 2016. It also approved delegation of authority to the Director of Procurement, or designee, to negotiate, execute, amend, terminate, and take any and all necessary or advisable actions relating to the Agreement with CareFusion, following approval by County Counsel as to form and legality, and approval by the Office of the County Executive, with the Delegation of Authority expiring on June 30, 2016. On August 9, 2011, the Board approved Amendment 1, to add additional terms and conditions, and increase the not-to-exceed value to $3,917,028. On March 20, 2012, the Board approved Amendment 2 to the Agreement to add additional equipment, add terms and conditions, and increase the not-to-exceed value to $5,800,000. On June 19, 2012, the Board approved the Amendment 3 to the Agreement to add additional equipment, add terms and conditions, and increase the not-to-exceed value to $6,000,000. From September 19, 2012 to April 10, 2015, on behalf of SCVHHS, the Director of Procurement executed Amendments 4 through 7, to add Epic interface, provide a virtual test system agreement, add vendor remote access and user responsibility, and add additional equipment. REASONS FOR RECOMMENDATION Reason(s) for exception to Board Policy: Pursuant to Board Policy 5.4.5.4, exceptions to the maximum five-year term of contracts must be approved by OCCM. Attached to this Legislative File are copies of OCCM’s approval of the exception for recommendation (a) and (b). October 16, 2014, the County Procurement Department (County) issued a Request for Proposal (RFP) for automated medication dispensing system and related services. The RFP was posted on the County’s bid management website, www.bidsync.com. A non-mandatory pre-proposal conference was conducted on October 28, 2014 to go over the proposal in depth and address questions and areas of the RFP that needs clarification. One Addendum was posted on www.bidsync.com to make changes to the RFP document and answer questions from interested suppliers. The RFP closed on November 18, 2014. Two proposals were received by the due date. The following evaluation factors were used as the acceptable criteria for scoring, 1. Corporate Strength, Experience, Financial Strength, References and Reputation of Offeror; 2. Ability to meet Business and Operational Requirements; 3. Implementation, Project Management, Training, Transition Plan, Ability to Manage/Maintain Uptime, And Ongoing Support; Local Preference was not included as a scoring criteria because it was not applicable. Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian County Executive: Jeffrey V. Smith Agenda Date: April 12, 2016

Page 2 of 5

Combinations of score and cost were then considered to identify an offeror whose proposal provided the best value to the County. An Evaluation Committee (Committee) consisting of ten subject experts from the major user department, Santa Clara Valley Medical Center (SCVMC) Pharmacy and Nursing, evaluated the written proposals utilizing the evaluation criteria outlined in the RFP. The Committee submitted to the Procurement Lead a report that detailed their evaluation result and recommendation for final negotiation. The report identified two offerors, CareFusion and OmniCell, Inc. (OmniCell), that were deemed to be within the competitive range and were moved forward to the final negotiation process. Based on the Committee’s report and recommendation, Procurement conducted final negotiations with the two finalists. Business requirements, legal terms and conditions, and pricing, etc. were discussed and negotiated. The Committee reviewed the offers and determined that CareFusion’s solution provides the best valued proposal and at the lowest price. Therefore, the Committee recommended that CareFusion be awarded the agreement as result of the RFP process for an eight and a half year term. Pricing for an eight and a half year period is more advantageous than a five year period. When leasing equipment the price is generally cheaper when amortizing the cost over a longer duration. Procurement has negotiated aggressive discounts. For conversion of the existing system and immediate expansion, there is an average of 68% discount off of list price. Beginning in 2018/2019 CareFusion is giving the County a 42% discount for up to 60 months (for the new Bed Building/Expansion) term. If the County were to have a period for a five year term, the discount off of list price goes down significantly at 22%. It is anticipated that the County will be expanding and adding additional automated medication dispensing systems to the fleet as follows:  2017: New Hospital Building will be adding (1) swisslog interface, (15) 6-drawer mains, (24) 7-drawer auxiliaries, (15) single auxiliary towers, and (30) SMART remote managers.  2018: Inpatient, Same Day Surgery will be adding (8) Pyxis anesthesia, (2) 6-drawer mains, and (2) 7-drawer auxiliaries.  2019: Inpatient, Emergency Department will be adding (5) 6-drawer mains, (5) 7drawer auxiliaries, and (3) single auxiliary towers. The savings achieved for an eight and a half year Agreement compared to a five year Agreement is approximately $750,000. In addition, CareFusion is agreeing to support the system during the entire contract period, no matter if new technology becomes available. Compared with the existing Agreement 5500002007 with CareFusion, the County will realize cost savings of approximately $1,896,216 during the eight and a half year term of the new Agreement. Due to the new system implementation, the current Agreement 5500002007 must be in place for use for patient care while the new system implementation is in process. Due to resource constraints, Epic go-live, and the complexity of the new system implementation (no interruption of patient care), it is estimated that the new system Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian County Executive: Jeffrey V. Smith Agenda Date: April 12, 2016

Page 3 of 5

implementation will take approximately sixteen months. Therefore, extending the current agreement through October 11, 2017 is necessary. The total anticipated spend for the duration of the new Agreement No. 5500002746 is $16,000,000 and the anticipated spend for the sixteen month extension period for current Agreement No. 5500002007 is $2,000,000 for a total not-to-exceed amount of $8,000,000. Under an administrative order, the Director of Procurement’s signature authority for goods and related services shall not exceed $5,000,000. Therefore, execution of the new Agreement and amendment to the existing agreement by the Board are recommended. Wage Theft Per the attached new Agreement No. 550002746 and the Ninth Amendment to Agreement No. 5500002007, CareFusion has taken exception to the County’s Wage Theft contract language. It is Procurement’s recommendation to move forward with the proposed Agreement and amendment. CHILD IMPACT The recommended action will have no/neutral impact on children and youth. SENIOR IMPACT The recommended action will have no/neutral impact on seniors. SUSTAINABILITY IMPLICATIONS The recommended action will have no/neutral impact on seniors. BACKGROUND The use of an automated medication dispensing system with related services is essential to the operational aspect of a hospital entity. As a Level 1 trauma unit hospital system, SCVHHS must have the ability to utilize the automated medication dispensing system and is critical to patient care. Automated medication dispensing systems (cabinets) are drug storage devices that can electronically dispense medications in a controlled manner, have the ability to keep track of medication use, and allow for a Pharmacist to remotely control operations and activities. An automated medication dispensing cabinet system collects controls and maintains all transactional information to accurately track the movement of medication in and out of the system for security, safety, accuracy, and accountability. The primary advantage of this medication dispensing system is that it allows nurses to obtain medications for patients close to the point of use. The system is also secured by requiring user identifiers and passwords, and internal electronic devices that can track nurses accessing the system, track the patients for whom medications are administered, and provides for patient usage data that simplifies patient billing. The Pyxis systems are directly interfaced with the pharmacy computer. Physicians' orders are entered into the pharmacy computer and then transferred to the cabinet where patient profiles are displayed to the nurse who accesses the medications for verified orders. Approximately 22,000 prescriptions are fulfilled annually by SCVHHS Custody Pharmacy. Presently, the Custody Pharmacy does not have the benefit of utilizing the Pyxis cabinets as Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian County Executive: Jeffrey V. Smith Agenda Date: April 12, 2016

Page 4 of 5

current operational procedures have all medications stored and secured in medication rooms. Once an authorized staff member enters a secured medication room, they have access to all medications. The community standard in health care system clinics is to store their drugs and medications in an automated cabinet (Pyxis cabinet). The installation of the new Pyxis systems in the Hospital and Custody Pharmacies shall improve efficiency amongst medication distribution, patient care, patient safety, operations, and staff accountability. CONSEQUENCES OF NEGATIVE ACTION Failure to approve the recommended action would prevent SCVHHS from purchasing an automated medication dispensing system and related services necessary to provide quality patient care. STEPS FOLLOWING APPROVAL Return one original of the executed Agreement No. 5500002746 and one original of the executed Ninth amendment to Agreement No. 5500002007. ATTACHMENTS:    

5 Year Exception - 5500002007 Carefusion (PDF) 5 Year Exception - 5500002746 Carefusion (PDF) 5500002007 CareFusion Am9 (PDF) 5500002746 CareFusion Agreement (PDF)

Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian County Executive: Jeffrey V. Smith Agenda Date: April 12, 2016

Page 5 of 5

Suggest Documents