To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Amendment #76-789-9 with Vizient, Inc.
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
RATIFY the September 30, 2026 execution of County Contract Amendment #76-789-9 with Vizient, Inc., a corporation, effective September 30, 2026, to amend the Group Purchasing Program Statement of Work (SOW) (Contract #76-789) for the purchase of supplies at a discounted rate and to qualify for vendor rebates on various supply purchases for Contra Costa Regional Medical Center (CCRMC) and to extend the termination date to September 30, 2029 to align with a pending solicitation for these services.
FISCAL IMPACT:
Approval of this Amendment does not impact the Contract payment limit of $969,040 funded 78% by savings realized through the Vizient group purchasing agreement and 22% Hospital Enterprise Fund I revenues.
BACKGROUND:
CCRMC’s Materiel Management unit has been working with Vizient, Inc. as part of the Group Purchasing Program since 2022 to ensure that industry best practices and cost savings are identified. Through this agreement, the Material management unit can procure various supplies for CCRMC at a reduced price as well as receive rebates for orders placed with various vendors.
To further optimize County resources and expand cost-saving efforts, this Amendment includes participation in the Vizient RxCommit and eCommerce programs. The RxCommit program allows the County to standardize its pharmaceutical formulary preferences by reviewing current contracts and looking for potential pharmaceutical cost savings. The eCommerce program automates the procure-to-pay lifecycle, utilizing real-time price verification across contracts and purchase orders. It also eliminates manual workflow discrepancies, enforces contract compliance, and guarantees three-way invoice price matching at the point of purchase. Combined, these programs directly benefit the County by maximizing spend efficiency, protecting public funds from billing errors, and streamlining procurement tasks so staff may focus on patient care.
On December 13, 2022, the Board of Supervisors approved Contract #76-789 with Vizient, Inc., authorizing the execution of a Master Services Agreement (MSA) and SOW, for the provision of group purchasing program services, for CCRMC for the period from October 1, 2022, through September 30, 2025.
On October 17, 2023, the Board of Supervisors approved Contract #76-789-1 with Vizient, Inc., in an amount not to exceed $435,000, for the execution of a Supply Chain Consultant SOW for the provision of supply chain consulting services regarding the operations of CCRMC’s Materials Management unit for the period from November 1, 2023, through December 31, 2026. However, the funding approved under this action only covered 12 months of services.
On April 22, 2024, the Board of Supervisors approved Contract Amendment #76-789-2 with Vizient, Inc., to execute a Patient Safety Organization (PSO) SOW and Business Associate Addendum (under the MSA), increase the payment limit by $64,040 to a new payment limit of $499,040 and extend the termination date (of the MSA) from December 31, 2026 to September 30, 2027 for additional advisory services for Contra Costa Health. This action did not amend the end date of the Group Purchasing Program SOW.
On June 4, 2024, the Board of Supervisors approved Contract Amendment #76-789-3 with Vizient, Inc., to execute a Member Network Services SOW (under the MSA) and increase the payment limit by $375,000 to a new payment limit of $874,040, with no change in the term (of the MSA) through September 30, 2027. This action did not amend the end date of the Group Purchasing Program SOW.
On July 23, 2024, the Board of Supervisors approved Contract Amendment #76-789-6 with Vizient Inc., to execute a Supplier Diversity Platform Subscription SOW (under the MSA) and increase the payment limit by $95,000 to a new payment limit of $969,040, with no change in the term (of the MSA) through September 30, 2027. This action did not amend the end date of the Group Purchasing Program SOW.
On September 10, 2024, the Board of Supervisors approved Contract Amendment #76-789-4 with Vizient Inc., to execute a SOW and increase the payment limit by 35,000 to a new payment limit of $1,004,040 for administration of an organizational culture and engagement survey and consulting services with no change to the term ending September 30, 2027.
On April 14, 2026, the Board of Supervisors approved Contract Amendment #76-789-8 with Vizient Inc., to ratify a Supplier Diversity Platform Subscription SOW (under the MSA) and to change the term of the agreement to September 30, 2026, with no change to the increase the payment limit.
Ratification of Contract Amendment #76-789-9 will allow CCRMC’s Materiel Management unit to procure supplies as the discounted rates and earn rebates utilizing the Contractor’s negotiated rates through September 30, 2029.
CONSEQUENCE OF NEGATIVE ACTION:
If this Amendment is not approved, the Materiel Management unit will not be able to continue receiving discounted prices on items purchased for CCRMC and will no longer receive rebates for purchases from various vendors.