To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment to Purchase Order with Werfen USA LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Health Services Director, an amendment to purchase order #023424 with Werfen USA LLC to increase the payment limit by $384,000 to a new payment limit of $918,000 for the purchase of reagents, coagulation and other supplies as needed for Contra Costa Regional Medical Center (CCRMC) with no change to the original term ending April 30, 2026.
FISCAL IMPACT:
Approval of this action will result in additional expenditures of up to $384,000 and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Werfen USA LLC is the American subsidiary of Werfen, a global company specializing in the development, manufacturing, and distribution of diagnostic instruments and reagents. Werfen focuses on specialized diagnostics, primarily in the areas of hemostasis, acute care, and autoimmunity. Their products are used in clinical laboratories and hospitals to support critical diagnostic processes like blood testing, coagulation, and autoimmune disease diagnostics.
Werfen's acquisition of Immucor in March 2023, has significantly expanded our diagnostics portfolio, particularly in transfusion and transplant solutions. With this addition, Werfen's product offerings now include Immucor's specialized items, complementing our existing lines in hemostasis, acute care, and autoimmunity. As these newly integrated items require additional financial resources to support their distribution and management, it is necessary to allocate additional funds to cover the increased inventory and operational demands arising from this acquisition. This funding will ensure seamless integration and continued market leadership in specialized diagnostics.
On September 7, 2021, the Board of Supervisors approved agenda item C.122 to execute a purchase order with Werfen USA LLC, in an amount not to exceed $534,000 for the purchase of reagents and supplies for the Clinical Laboratory for the period from May 1, 2021 through April 20, 2026.
Werfen USA LLC, is a member of the Vizient Group Purchasing Organization (GPO), which means that CCRMC will now receive rebates. This will further solidify our shared dedication to delivering high-quality, cost-effective healthcare solutions.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, the lab may face delays or shortages in obtaining essential supplies. This could lead to interruptions in testing services, which are vital for patient care.