TITLE
Recommendation to authorize City Manager to execute an amendment with Siemens Healthcare Diagnostics, Inc. to extend the contract to purchase diagnostic test kits through December 31, 2009, for an amount not to exceed $150,000, plus a ten percent contingency for additional test kits if necessary and if funds are available. (Citywide)
DISCUSSION
The City's Department of Health and Human Services (Health Department) performs more than 2,000 HIV-1 viral load tests each year. The California Department of Public Health (CDPH) reimburses the City for performing these tests. On September 6, 2005, City Council approved a supplemental agreement (# 27771) with Siemens Healthcare Diagnostics, Inc. to purchase diagnostic tests kits as needed for up to $375,000 over three years. The laboratory is currently evaluating other technologies for viral load assays from other manufacturers including a second-generation assay from Siemens.
This evaluation process is a lengthy and complex procedure. Therefore, the Health Department is requesting an amendment to the Siemen's contract to extend the term through December 31, 2009 for an amount up to $150,000, plus a ten percent contingency for additional test kits if necessary and if funds are available. This amendment also includes a 30-day cancellation clause that will allow the Health Department to either enter into a contract with a new vendor or to produce a new contract with Siemens.
This matter was reviewed by Deputy City Attorney Linda Trang on December 22, 2008 and Budget and Performance Management Bureau Manager David Wodynski on December 26, 2008.
TIMING CONSIDERATIONS
City Council action on this matter is requested on January 20, 2009 in order to maintain inventory of HIV-1 viral load testing kits.
FISCAL IMPACT
The cost of purchases under this contract amendment are reimbursed by the California Department of Public Health. Sufficient funds are budgeted in the Health Fund (SR 130) in the Department of Health ...
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