To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment #23-637-3 with CapsuleTech, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract Amendment Agreement #23-637-3 with CapsuleTech, Inc., a corporation, effective March 5, 2024, to (1) amend Contract #23-637-1 (as amended by #23-637-2) to clarify a term with successive one (1) year period renewals and (2) increase the payment limit by $120,000 to a new payment limit of $233,554, for additional SmartLinx software licensing, maintenance and support for Contra Costa Health (CCH).
FISCAL IMPACT:
Approval of this amendment will result in additional expenditures of up to $120,000 until the agreement expires in term. FYs 2024-27 will be funded by Hospital Enterprise Fund I (Rate Increase).
BACKGROUND:
CCH uses the SmartLinx (formerly DataCaptor) application for medical device information systems support for clinical staff. This medical device information system facilitates interfacing between medical devices, such as the Neuron2 data aggregator devices purchased by CCH in 2019, and medical software by collecting data and translating it into common-protocol and processes, if necessary, merging data into a single flow and distributing it to medical software. SmartLinx delivers monitoring, management, and analysis of real-time patient data to the County's electronic health record system, EPIC. This process relies on CapsuleTech's SmartLinx Medical Device Information System. This contractor has been providing services since at least 2018.
On May 22, 2018, the Board of Supervisors approved Contract #23-637 with CapsuleTech, Inc., in an amount not to exceed $86,891, for the provision of SmartLinx (formerly DataCaptor) software licensing, maintenance and support, for the period from March 6, 2018, through March 5, 2021.
In August 2021, the Purchasing Services Manager executed Software and Services Agreement #23-637-1 with CapsuleTech, Inc., in an amount not to exceed $91,160 for the renewal of the provision of SmartLinx software licensing, maintenance and support, for the period from March 6, 2021, through March 5, 2024.
On November 7, 2023, the Board of Supervisors approved Amendment Agreement #23-637-2 (Amendment No. 1) with CapsuleTech, Inc., effective November 1, 2023, to increase the payment limit by $22,394 to a new payment limit of $113,554 for additional software licensing, maintenance, and support services with no change in the term.
Approval of this Contract Amendment Agreement #23-637-3 (Amendment No. 2) clarifies the agreement and licenses are perpetual and annual recurring maintenance and support fees may be increased by (i) 5% or (ii) the annual percentage increase in the Consumer Price Index, to allow the contractor to continue providing software licensing, maintenance and support services under the Software and Services Agreement dated March 6, 2021. The division is requesting a retroactive effective date for this amendment caused by a delay in receipt of documentation from the contractor.
CONSEQUENCE OF NEGATIVE ACTION:
If this amendment is not approved, the payment limit of the contract will become exhausted, leaving the remainder of the contract term with insufficient funds to cover the services, thus jeopardizing compliance.