To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Payment for Services Provided by Hobbs Investments, Inc. (dba Am-Tran)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, to pay an amount not to exceed $198,864 to Hobbs Investments, Inc. (dba Am-Tran) for laboratory courier services between the Contra Costa Regional Medical Center (CCRMC), Contra Costa Health Centers and Detention Health for the period of July 1, 2024 through December 31, 2024.
FISCAL IMPACT:
Approval of this action will result in budgeted expenditures of up to $198,864 and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
This Contractor plays a critical role in providing qualified vehicles and California-licensed drivers for the transportation of laboratory specimens, transmittals, and pharmacy medications to and from the facilities utilized by CCRMC, Contra Costa Health Centers and Detention Health. Their services are essential to ensuring timely delivery of patient lab specimens for processing. Am-Tran has been providing courier services to the County since February 2017.
On February 28, 2023, the Board of Supervisors approved Contract #76-577-12 with Hobbs Investments, Inc. (dba Am-Tran), in an amount not to exceed $612,000 for the provision of courier services of laboratory specimens and pharmacy medications for CCRMC, Contra Costa Health Centers and Detention Health for the period February 1, 2023 through January 31, 2024.
On January 22, 2024, the Board of Supervisors approved Amendment Agreement #76-577-13 with Hobbs Investments, Inc. (dba Am-Tran), effective January 31, 2024, to increase the payment limit by $275,000 to a new payment limit of $887,000 and extend the term from January 31, 2024 to July 31, 2024 for additional courier services.
On July 9, 2024, the Board of Supervisors approved Amendment Agreement #76-577-14 with Hobbs Investments, Inc. (dba Am-Tran), effective July 1, 2024, to increase the payment limit by $300,000 to a new payment limit of $1,187,000 and extend the term through December 31, 2024 for additional courier services.
In late 2023, Hobbs Investments, Inc. (dba Am-Tran) sent an updated rate schedule for the 2024 calendar year as outlined in the contract. However, due to delayed notification to the department the new rates were not reflected in the Contract Amendments and given the timing of notification it was deemed to be no longer possible to amend the Contract before its expiration in December 2024. As a result, invoices for July, October, November and December remain unpaid in a total amount of $198,864. Invoices for August and September did receive approval for payment by the division. CCRMC has advised the Contractor and the department to send rate changes via Certified Mail to ensure notifications are received on a timely basis. Contractor is entitled to payment for the reasonable value of the products and services under the equitable relief theory of quantum meruit. The theory provides that where a Contractor has been asked to provide products or services without a valid contract, and the Contractor does so to the benefit of the County, the Contractor is entitled to recover the reasonable value of the products and services.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, Contra Costa Health will not be able to reimburse Hobbs Investments, Inc. for services already provided to CCRMC, Contra Costa Health Centers and Detention Health in good faith.