To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Purchase Order with GE HFS, LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf on the Health Services Director, 1) a purchase order with GE HFS, LLC in an amount not to exceed $455,000, and a related agreement to lease a GE Revolution EVO Gen 2 EX Mobile CT Unit and Trailer for Contra Costa Regional Medical Center (CCRMC) and reimburse GE HFS, LLC for assessed property taxes; and 2) execute a Lease Agreement to lease and provide support services for the Mobile CT Unit and Trailer during the period of October 13, 2025 through October 15, 2028.
FISCAL IMPACT:
Approval of this action will result in expenditures up to $455,000 over a three-year period and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
CCRMC currently operates a GE mobile CT unit and trailer to support ongoing diagnostic imaging needs. This mobile unit was deployed under a lease agreement to ensure uninterrupted CT imaging services during facility constraints and infrastructure planning. The unit houses a GE Revolution EVO Gen 2 128-slice CT scanner, known for its high-resolution imaging, fast scan times, and reduced radiation dose. The mobile trailer includes climate control, power and network hookups, and a patient preparation area, making it a fully functional, self-contained imaging suite.
The GE Revolution EVO Gen 2 Mobile CT Unit is a trailer-based CT scanner. It delivers fast, high-quality imaging without needing permanent installation. The trailer includes HVAC, lighting, power, and internet connections. It’s ready for quick use and patient comfort. The 128-slice CT scanner provides high-resolution images with fast scan times. It reduces radiation by up to 82% using Smart Dose and ASiR-V. Features like Smart MAR and dual-energy imaging improve image clarity and detail. Snapshot Freeze allows clear heart imaging in one beat. The system includes hands-free positioning and automation for faster workflow. It supports patients up to 675 lbs. with a wide 70 cm bore. Tube Watch monitors the system and prevents downtime. The unit comes fully serviced with delivery, setup, and optional training. This mobile CT keeps CCRMC’s imaging services running safely and efficiently.
On May 26, 2020, the Board of Supervisors authorized and ratified a 60-month lease, with payments not to exceed $1,255,136, for the lease of a mobile CT scanner. The purchase date was March 31, 2020, with a lease commencement date of July 13, 2020, when all documents were signed by both parties. Payments under the lease were initially covered under the COVID-19 blanket purchase order, to ensure the County could seek reimbursement from the federal government for any eligible expenses. However, that blanket purchase order expired July 31, 2021, and, due to an administrative oversight, a subsequent purchase order was not requested at that time. A purchase order for the amount of $77,867.60 was issued in response to the demand letter from GE HFS LLC for payment of the invoices received for service dates from September 13, 2021, through January 12, 2022.
On February 1, 2022, the Board of Supervisors approved agenda item C.68 to execute purchase order #24524 with GE HFS, LLC in the amount of $892,179 for the lease of a mobile computed tomography (CT) scanner for the period from January 13, 2022 through July 31, 2025. On June 25, 2025, the Purchasing Agent approved the continued use of GE HFS, LLC.
The current lease term ended on July 31, 2025, and the contract has transitioned to a month-to-month status pending execution of the new 36-month lease. When CCRMC reached out to the vendor for a renewal, the vendor provided an extension instead. CCRMC was unable to proceed with the extension and requested that the vendor issue a new lease agreement. The vendor provided the updated lease agreement in mid July. As a result, CCRMC has incurred three outstanding invoices plus one property tax invoice that cannot be paid due to the prior contract expiration. To address this, CCRMC will process the outstanding invoices on a separate purchase order.
The lease agreement with GE HFS, LLC, requires the County to indemnify, and hold harmless GE HFS, LLC, from and against any claims and losses, including legal expenses arising out of or relating to the equipment or this agreement. GE HFS, LLC will have no liability to the County for any, punitive, special, incidental, or consequential damages. Additionally, the agreement is non-cancelable and requires the County to pay all obligations to GE HFS, LLC, even if any defect in, damage to, or loss of use of, any equipment occurs for any reason. Approval of this purchase would authorize CCRMC to enter into the rental agreement under these terms. It also ensures that CCRMC can proceed with securing the CT trailer to support critical hospital operations, including uninterrupted imaging services for emergency and inpatient care.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, CCRMC may face disruptions in diagnostic imaging services, which could delay patient care and impact overall hospital operations.