To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment #76-800-4 with ARL Bio Pharma, 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 Amendment #76-800-4 with ARL Bio Pharma, Inc., a corporation, to amend Contract #76-800-3, effective July 14, 2025, to increase the payment limit by $17,848, from $150,000 to a new payment limit of $167,848 to provide additional analytical testing services at Contra Costa Regional Medical Center (CCRMC) with no change in the term ending December 31, 2025.
FISCAL IMPACT:
Approval of this Contract Amendment will result in additional contractual service expenditures of up to $17,848 and will be funded 100% by Hospital Enterprise Fund I. (No rate increase)
BACKGROUND:
CCRMC has an obligation to provide laboratory testing services to patients. On occasion, the County contracts with outside laboratory testing services in order to provide testing that requires special equipment not available at county facilities. Contractor will provide analytical testing services for various compounded sterile and non-sterile drug preparations, as required by pharmacy law, including potency, sterility, and identification of the compound, from the inpatient and outpatient pharmacies at CCRMC. Contractor’s services will provide real time information with access to samples and results anytime.
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. Health Services Personnel approved this Contract to ensure no conflicts with labor relations. This Contractor was approved by the Public Works Department’s Purchasing Agent on October 15, 2024.
On January 14, 2025, the Board of Supervisors approved Contract #76-800-3 with ARL Bio Pharma, Inc, in an amount not to exceed $150,000, for the provision of analytical testing services for various compounded sterile and non-sterile drug preparations for inpatient and outpatient Pharmacies at CCRMC for the period January 1, 2025 through December 31, 2025. This Contract included mutual indemnification to hold harmless both parties for any claims arising out of the performance under this Contract.
Approval of Contract Amendment #76-800-4 will allow the Contractor to provide additional analytical testing services at CCRMC through December 31, 2025. This amendment is delayed due to an unanticipated need for testing services from the Contractor. Despite contacting several outside vendors, CCRMC has been unable to purchase promethazine topical gel since March and the product must now be compounded by CCRMC’s pharmacy and sent to Contractor for stability testing.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, CCRMC will not have access to additional analytical testing services for sterile and non-sterile drug preparations which is putting patient’s health at risk.