TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract with Hologic, Inc., of Bedford, MA, for the purchase of molecular diagnostic test kits, without advertising for bids, in an annual amount not to exceed $250,000, for a period of one year, with the option of renewing for two additional years, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter in an annual contract with Hologic, Inc. (Hologic), (formerly Gen-Probe Sales and Service, Inc.), to purchase molecular tests for Mycobacteria species and Chlamydia/GC identification. The Long Beach Department of Health and Human Services' Public Health Laboratory performs approximately 18,500 Chlamydia tests, 15,000 Gonorrhea tests, and 200 DNA Mycobacteria tests each year. In addition to the Department's Tuberculosis Clinic and STD-Family Planning Clinic, the laboratory also provides these tests to the following fee-for-service agencies: St. Mary's Hospital, Community Hospital of Long Beach, Long Beach Memorial Medical Center, Southern Nevada Health District (SNHD), the University of California, San Diego (UCSD), the University of California, Los Angeles (UCLA), and the University of Southern California (USC). This partnership, with the different programs and agencies, makes up the public health laboratory system. With the Public Health Laboratory in the lead role, system participants play an interconnected role in facilitating the exchange of information that aids in the prevention and spread of infectious diseases and public health threats.
Hologic is the only company that has FDA approval on most of the specimen collection sites for testing for chlamydia and gonorrhea. Additionally, Hologic's Aptima Combo2 Assay for CT/GC and Mycobacteria DNA Probe is proprietary to Hologic. Therefore, no useful purpose would be served by advertising for bids, and to do so would be deemed an unnecessary expenditure of public funds and staff time. City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process, but allows for awards without a competitive bid process if accompanied by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Linda Vu on April 24, 2015 and by Budget Management Officer Victoria Bell on May 8, 2015.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolution and award a contract concurrently is requested on June 9, 2015 to ensure that the contract is in place expeditiously. The contract will help maintain inventory of reagents and diagnostic test kits, which will help ensure uninterrupted testing of patients.
FISCAL IMPACT
The requested yearly expenditure of $250,000 is offset by the revenue produced by fee-for-service agencies requesting these tests. Sufficient funds for this purchase are currently budgeted in the Health Fund (SR130) in the Department of Health and Human Services (HE). There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH HOLOGIC, INC., WITHOUT ADVERTISING FOR BIDS, FOR THE PURCHASE OF MOLECULAR DIAGNOSTIC TEST KITS FOR ONE YEAR IN AN AMOUNT NOT TO EXCEED $250,000 WITH THE OPTION TO EXTEND THE CONTRACT FOR TWO ADDITIONAL ONE-YEAR PERIODS
Respectfully Submitted,
KELLY COLOPY
DIRECTOR
HEALTH AND HUMAN SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER