To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #76-556-11 with Laboratory Corporation of America
☒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 #76-556-11 with Laboratory Corporation of America, a corporation, in an amount not to exceed $760,000 to provide outside laboratory testing services for Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers for the period from May 1, 2026 through April 30, 2029.
FISCAL IMPACT:
Approval of this contract will result in contractual service expenditures of up to $760,000 over a three-year period and will be funded 100% by Hospital Enterprise Fund I.
BACKGROUND:
CCRMC and Contra Costa Health Centers have an obligation to provide laboratory testing services to patients. On occasion, the County contracts with outside laboratory testing service providers in order to provide testing that requires special equipment not available at County facilities. CCRMC’s Pathology laboratory sends out test(s) for consultation, such as human papillomavirus (HPV) for pap co-test, immunohistochemistry (IHC) for diagnostic treatment of disease, HER2FISH for breast treatment and flow cytometry for diagnosis of leukemia as well as clinical lab testing when needed. This Contractor has been providing outside clinical laboratory testing services for CCRMC since May 2017.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000. Health Services Personnel approved this Contract to ensure no conflicts with labor relations. Contractor is a member of the Vizient Group Purchasing Organization (GPO) and per Administrative Bulletin 600.3, GPO members are exempt from solicitation requirements.
On October 3, 2023, the Board of Supervisors approved Contract #76-556-5 with Laboratory Corporation of America, in an amount not to exceed $325,000 to provide outside laboratory testing services, including HER2FISH testing for breast cancer treatment, and flow cytometry testing for leukemia treatment for the period from May 1, 2023 through April 30, 2026.
On September 24, 2024, the Board of Supervisors approved Contract Amendment #76-556-6 with Laboratory Corporation of America, effective September 1, 2024, to provide additional outside laboratory testing services, with no change in the payment limit or term.
On December 17, 2024 the Board of Supervisors approved Contract Amendment #76-556-7 with Laboratory Corporation of America, effective December 1, 2024, to incorporate a Laboratory Interface System Agreement for outside laboratory testing services with no change in the payment limit or term.
On June 10, 2025 the Board of Supervisors approved Contract Amendment #76-556-8 with Laboratory Corporation of America, effective April 1 2025, to increase the payment limit by $300,000 to a new total of $625,000 for additional outside laboratory testing services with no change in the term through April 30, 2026.
On March 3, 2026 the Board of Supervisors approved Contract Amendment #76-556-9 with Laboratory Corporation of America, effective January 1, 2026, to provide additional outside laboratory testing services, with no change to the payment limit or term.
On April 14, 2026 the Board of Supervisors approved Contract Amendment #76-556-10 with Laboratory Corporation of America, effective March 1, 2026, to increase the payment limit by $90,000 to a new total of $715,000 for additional outside laboratory testing services with no change in the term through April 30, 2026.
Approval of Contract #76-556-11 will allow Contractor to continue to provide outside laboratory testing services through April 30, 2029.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, patients requiring outside laboratory testing will not have access to Contractor’s services.