To: Board of Supervisors
From: Dr. Ori Tzvieli, Interim Health Services Director
Report Title: Contract #72-264 with Techcyte, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Interim Health Services Director, or designee, to execute on behalf of the County a Software as a Service (SaaS) Agreement, (County Contract #72-264) with Techcyte, Inc., a corporation, in an amount not to exceed $112,825, for an image analysis software and services solution for Contra Costa Health’s Public Health Laboratory for the period June 10, 2025 through June 9, 2030, and for successive twelve month terms thereafter until terminated.
FISCAL IMPACT:
This Contract will result in contractual service expenditures of up to $112,825 over a five-year period and will be funded 100% by Hospital Enterprise Fund I.
BACKGROUND:
This Contract meets the needs of the County by allowing its Public Health Laboratory access to the Techcyte Solution. Techcyte has developed a software platform and solution for image analysis, including but not limited to microscopic analysis of human biological samples software, and made it available for access on Techcyte’s website as a subscription service, together with other content, services, and materials provided by Techcyte (the Techcyte Solution). Contra Costa Health’s Public Health Laboratory desires to subscribe to access the Techcyte Solution, and Techcyte desires to provide such access, together with other services as agreed upon by the parties, subject to the terms and conditions of this Agreement. Techcyte offers automated microscopy with assisted parasitology identification. This offering includes an automated microscopy scanner, implementation, and five years of warranty annual standard service and support. Contra Costa Health’s Public Health Laboratory diagnostic instruments are required to be maintained by the approved vendor per federal regulations (§ 493.1252 Standard: Test systems, equipment, instruments, reagents, materials, and supplies).
This Contractor was approved as a sole source contractor by the Public Works Department’s Purchasing Division on May 22, 2025. Contra Costa Health’s Public Health Laboratory will monitor measurable service contract deliverables with outcomes required of the Contractor. Access to subscribed services (such) as In-line Quality Assurance, intelligent tissue locator and volume scanning will be monitored by the department in compliance with Section III(B)(7) of the Purchasing Policy. This Contract was approved by CCH Personnel to ensure no conflict with labor relations.
Under this Contract #72-264, the parties will execute a Techcyte SaaS Agreement allowing County access to the Techcyte Solution. Techcyte, Inc’s liability is limited to the amount County has paid to Techcyte, Inc., in the twelve months preceding the claim except for Techcyte’s indemnification obligations under the SaaS Agreement or claims arising from a breach of County data. Under the SaaS Agreement, the County is obligated to indemnify Techcyte, Inc., against third party claims arising from County’s use of the products, County’s breach of the Saas Agreement, and County data in the vendor system that infringes a third party’s rights.
Approval of this new Contract #72-264 allows (approves funds) for the contractor to provide services through June 9, 2030. Thereafter, the Contract renews for successive twelve-month terms until terminated under the agreement.
CONSEQUENCE OF NEGATIVE ACTION:
If this contract is not approved, Contra Costa Health’s Public Health Laboratory will not have access to the Techcyte Solution. Patient specimen submissions for fecal parasitology have surged over the past several years. Absent the automated microscopy with assisted parasitology identification afforded by this solution, the expected response time for determining appropriate patient status and related treatment due to an increase in workload will hinder patient care and negatively impact public health.