To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #76-789-1 with Vizient, 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 a Statement of Work with Vizient, Inc., a corporation, in an amount not to exceed $435,000, to provide supply chain consulting services regarding the operations of the Materiel Management team, for Contra Costa Regional Medical Center (CCRMC) for the period from November 1, 2023 through December 31, 2026.
FISCAL IMPACT:
Approval of this contract will result in expenditures of up to $435,000 over a three-year period and will be funded 50% by savings realized through the Vizient group purchasing agreement and 50% Hospital Enterprise Fund I revenues.
BACKGROUND:
Prior to the COVID-19 pandemic, CCRMC’s Materiel Management was functioning with a small supervisory team overseeing procurement, receiving and distribution for CCRMC and Health Centers. As a result of the pandemic, the global supply chain was interrupted, and it became apparent that there were gaps in staff’s expertise regarding inventory practices and the national supply chain. During that period, several positions were created to ensure the needs of the hospital and health centers were met until the public health emergency was over.
With the public health emergency abated, it is paramount that inventory and purchasing practices be evaluated to ensure that industry best practices are identified and embedded into Materiel Management’s standard workflows. Such an evaluation will help CCRMC replace its current inventory system, that is long past its useful life. Vizient, Inc. has the expertise in supply chain consulting services needed to advise CCRMC through this process.
On December 13, 2022, the Board of Supervisors approved contract #76-789 with Vizient, Inc., for the provision of group purchasing program services, for the period October 1, 2022, through September 30, 2025.
Under contract #76-789-1, the parties will execute the Supply Chain Consultant Statement of Work under the Master Services Agreement executed October 1, 2022, and approved by the Board of Supervisors on December 13, 2022.
Approval of Contract #76-789-1 allows the contractor to provide services through December 31, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, the CCRMC Materiel Management team may not be able to improve the supply chain operations at the level necessary to ensure patient care operations are not negatively affected long-term.