DATE: September 22, 2020
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Agreements with United Health Centers of San Joaquin Valley and CarivaCare, Inc. for COVID-19 Testing and Monitoring
RECOMMENDED ACTION(S):
TITLE
1. Make a finding that it is in the best interest of the County to suspend the competitive bidding process in an emergency when goods or services are immediately necessary for the preservation of the public health, welfare, or safety, or for the protection of County property, consistent with Administrative Policy No. 34, for urgent and necessary COVID-19 testing for County employees; and
2. Approve and authorize the Chairman to execute an Agreement with United Health Centers of San Joaquin Valley, to replace, restate, and supersede existing Purchase Order No. P02-0000040405, retroactive to that Purchase Order’s effective date of June 19, 2020, to provide urgent and necessary COVID-19 testing and test results for County staff through June 30, 2021, with two optional one-year extensions, total not to exceed $2,100,000.
3. Make a finding that it is in the best interest of the County to suspend the competitive bidding process in an emergency when goods or services are immediately necessary for the preservation of the public health, welfare, or safety, or for the protection of County property, consistent with Administrative Policy No. 34, in order to conduct urgent and necessary COVID-19 telephonic registered nursing services for County employees; and
4. Approve and authorize the Chairman to execute an Agreement with CarivaCare, Inc., to replace, restate, and supersede existing Purchase Order No. M02-0000020404, retroactive to that Purchase Order’s effective date of June 19, 2020, to provide urgent and necessary COVID-19 telephonic registered nursing services for County staff through June 30, 2021, with two optional one-year extensions, total not to exceed $3,300,000.
REPORT
There is no increase in Net County Cost associated with the recommended actions as Coronavirus Aid, Relief, and Economic Security (CARES) Act funds will be utilized to cover the costs associated with the recommended agreements through December 30, 2020 and if no additional Federal assistance is received, costs will be allocated to user departments via Risk Management rates. Approval of the recommended actions will authorize United Health Centers of San Joaquin Valley (United Health Centers) and CarivaCare, Inc. (CarivaCare) to conduct COVID-19 testing, referrals and support, and monitoring for County employees. Purchase Order No. P02-0000040405 was issued to United Health Centers and Purchase Order No. M02-0000020404 was issued to CarivaCare to expedite the acquisition of testing services, referrals and support, and monitoring until an agreement could be presented to your Board. Approval of the recommended actions will allow United Health Centers and CarivaCare to continue to provide necessary emergency COVID-19 testing services for County staff. This item is Countywide.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. Should your Board choose to not approve the recommended actions, necessary COVID-19 testing and ongoing monitoring of County employees will not occur.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
The Department’s request to waive the competitive bidding process is consistent with Administrative Policy No. 34 and the Proclamation of Local Emergency by the Emergency Services Director on March 15, 2020, and ratified by the Board of Supervisors on March 17, 2020, resulting from the COVID-19 pandemic. United Health Centers and CarivaCare provide the expertise, insurance coverages and capacity necessary to meet the County’s need for employee and COVID exposure event support. Evaluating and selecting another vendor for testing and support would entail a significant delay in providing these crucial services. The Internal Services Department - Purchasing Division concurs with the request to waive the customary purchasing process.
RETROACTIVE AGREEMENT:
Due to the urgent need for COVID-19 testing and support, both United Health Centers and CarivaCare began providing services while formal agreements were being negotiated. Additional time needed for contract negotiation and the urgency to start required testing prevented this item from beginning commensurate with the September 22, 2020 Board date.
FISCAL IMPACT:
There is no Net County Cost associated with the terms of these emergency contracts through December 30, 2020, as the costs associated with these agreements are fully offset with funding from the CARES Act. The total estimated cost for FY 2020-21, from June 19, 2020 through June 30, 2021, for both agreements is $1,800,000. The estimated cost for both agreements under each optional one-year extension is also $1,800,000.
Sufficient appropriations and estimated revenues will be included in the FY 2020-21 Recommended Budget for Human Resources’ Org 8925 - which will be presented to your Board in September 2020 - to cover the cost of services from December 31, 2020 through June 30, 2021. Sufficient appropriations and estimated revenues will be included in future Org 8925 Recommended Budgets to cover the cost to exercise the two optional one-year extensions contingent upon your Board approval, in the event that additional funding similar to the aforementioned CARES Act is not made available to the County.
DISCUSSION:
In response to increasing COVID-19 cases, the County engaged the AMC Call Connect COVID Support Line, which assists the County with managing employee COVID-19 exposures. The Support Line is staffed by CarivaCare registered nurses who provide triage for employees who are experiencing COVID-19 symptoms or who have been involved in exposure events in which they had close contact with an individual who tested positive for COVID-19. This includes events that occur outside of work as well as work-related exposures.
These services allow individuals to remain at work while wearing appropriate personal protective equipment as long as they remain asymptomatic. This mechanism significantly reduces costs to the County, as employees would be required to self-isolate for 14 days if exposed to COVID-19.
Purchase Order Nos. M02-0000020404 and P02-0000040405, which are currently in effect, were established under the authority of the Proclamation of Local Emergency as ratified by your Board on March 17, 2020, resulting from the COVID-19 pandemic. These Purchase Orders address the immediate need to assess the extent of COVID-19 exposures in Fresno County facilities through COVID-19 testing and monitoring.
The recommended agreements replace and supersede Purchase Order Nos. M02-0000020404 and P02-0000040405. These services will be provided through the recommended agreements beginning June 19, 2020 through June 30, 2021. The agreements may be extended for two optional one-year periods beyond the initial term, upon written approval of both parties. The Director of Human Resources, or his designee, is authorized to execute such written approval on behalf of the County, based on satisfactory performance of the vendors.
REFERENCE MATERIAL:
BAI #2, March 17, 2020
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition Acquisition Request form - United Health Centers of San Joaquin Valley
Suspension of Competition Acquisition Request form - CarivaCare, Inc.
On file with Clerk - Agreement with United Health Centers of San Joaquin Valley
On file with Clerk - Agreement with CarivaCare, Inc.
CAO ANALYST:
Yussel Zalapa