To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #76-558-8 with Neogenomics Laboratories, 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 #76-558-8 with Neogenomics Laboratories, Inc., a corporation, in an amount not to exceed $650,000, to provide outside laboratory testing services for Contra Costa Regional Medical Center (CCRMC) and Contra Costa Health Centers for the period September 1, 2025 through August 31, 2028.
FISCAL IMPACT:
This Contract will result in contractual service expenditures of up to $650,000 over a three-year period and will be funded 100% by Hospital Enterprise Fund I revenues.
BACKGROUND:
This Contract meets the social needs of County’s population by providing outside clinical laboratory testing services that require special equipment which CCRMC and Contra Costa Health Centers do not have onsite. This Contractor has been providing outside laboratory testing services to CCRMC and Contra Costa Health Centers since September 1, 2016.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000. CCRMC’s Quality Management, Utilization Management and Contract Monitor Staff meet on a regular basis to ensure monitoring and performance measures in the contract are upheld. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. Per Administrative Bulletin 600.3, the contracted services are exempt from solicitation requirements.
On August 16, 2022, the Board of Supervisors approved Contract #76-558-5 with Neogenomics Laboratories, Inc., in an amount not to exceed $250,000, to provide outside laboratory testing services including renal biopsies and various histology tests not provided at CCRMC and Contra Costa Health Centers for the period September 1, 2022 through August 31, 2025.
On September 24, 2024, the Board of Supervisors approved Contract Amendment #76-558-7 with Neogenomics Laboratories, Inc., effective September 1, 2024, to increase the payment limit by $400,000, to a new payment limit of $650,00, to provide additional outside laboratory testing services with no change in the term ending August 31, 2025.
Approval of Contract #76-558-8 will allow the Contractor to continue providing outside laboratory testing services for CCRMC and Contra Costa Health Centers through August 31, 2028. The delay of this Contract was due to ongoing negotiations between the Division and the Contractor.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, County will not be able to continue receiving outside laboratory testing services at CCRMC and Contra Costa Health Centers from this Contractor, which are needed for patient care.