To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Purchase Order with Cepheid
☒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, a purchase order with Cepheid in an amount not to exceed $272,649 and their Multi-Year Reagent Agreement for the purchase of reagents and supplies for COVID-19 testing for the Clinical Laboratory at the Contra Costa Regional Medical Center (CCRMC), for the period from January 15, 2026 through January 14, 2029.
FISCAL IMPACT:
Approval of this action will result in expenditures of up to $272,649 over a three-year period and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Cepheid was selected due to its proprietary reagents and testing kits, which are specifically designed for use with the GeneXpert analyzer currently utilized in the CCRMC Laboratory. This testing platform replaced the Abbott ID system in 2020, significantly expanding the laboratory’s testing capacity by enabling the processing of multiple patient samples in a single run. This contrasts with the previous single-specimen testing model, which required more time and resources.
The Cepheid GeneXpert system provides real-time PCR diagnostic results, supporting faster and more informed clinical decision-making and improving the timeliness of patient care and treatment. In addition, the Cepheid GeneXpert reagents and testing kits enable combined testing for COVID-19, RSV, and Influenza A/B from a single patient sample, increasing efficiency and diagnostic accuracy.
On November 1, 2022, the Board of Supervisors approved item C.31 to execute purchase order #26852 with Cepheid in an amount not to exceed $2,910,000 for the purchase of reagents and supplies for COVID-19 testing for the Clinical Laboratory at the CCRMC, for the period from January 15, 2023, through January 14, 2026. Delays were encountered due to extended negotiations with the vendor and in part due to further negotiations due to the vendor no longer being a Vizient contracted vendor. On January 13, 2026 the Purchasing Agent approved the continued use of Cepheid.
Under the Cepheid Standard Terms and Conditions, Cepheid shall have no strict liability, goods liability, or negligence, whether active or passive. County’s exclusive remedy under this warranty is limited to repair or replacement. Cepheid is not liable for any special, indirect, incidental, consequential, or exemplary loss or damage (including, without limitation, loss of use, data, profits, or goodwill) arising out of or in connection with the agreement, whether arising in contract, tort (including active, passive, or imputed negligence and strict liability), or otherwise. The foregoing limitation applies even if Cepheid was advised of the possibility of such loss or damage or any remedy has failed of its essential purpose. In no event shall Cepheid’s aggregate liability arising out of or in connection with this agreement exceed the amount actually paid to cepheid by customer for the products that are the subject of or gave rise to the claim. Additionally Cepheid shall not be liable for any incidental or consequential damages arising out of a patent infringement. Cepheid’s liability hereunder shall not exceed the purchase price paid by Customer for the allegedly infringing Cepheid Products.
Approval of this action will allow Cepheid testing to proceed without interruption, ensuring timely critical care diagnostics and supporting efficient patient management.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, CCRMC will experience delays in critical care testing, which could lead to increased workload and saturation levels within the hospital. Patient care may be impacted, including delays in implementing treatment protocols, longer times to discharge or transfer patients to other facilities, and extended patient isolation periods.