To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment #23-787-2 with Leica Microsystems 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 Instrument Acquisition Amendment #23-787-2 with Leica Microsystems Inc., a corporation, effective February 1, 2025, to amend Instrument Acquisition Agreement #23-787 (as amended by Amendment Agreement #23-787-1), to include additional supplies with no change in the payment limit of $596,174 or term January 4, 2023 through January 3, 2028.
FISCAL IMPACT:
Approval of this Amendment will not result in additional annual expenditures as budgeted and funded 100% by Hospital Enterprise Fund I.
BACKGROUND:
CCRMC Leica Cassette Printer labels cassettes carry patient tissue samples and include accession numbers and patient names. The print is crisp, clear, and easy to read, thus minimizing specimen misidentification due to manual labeling. Leica IPC Printer is compatible with current instruments still in use at Contra Costa Regional Medical Center (CCRMC) Clinical Laboratory’s Tissue Processor, Automatic Stainer, IHC Bond Max, and Slide Cover slipper. Leica is a reputable company and is considered a quality name in every aspect of Clinical and Pathology Laboratory equipment. Leica Microsystems has a crew of service people in the Bay Area to service its products and equipment, so any repairs are immediate, which results in, minimizing delays for patient results and care. The $596,174 includes the minimum required purchase amount listed in the acquisition Agreement, and an additional amount to cover any increased workflow.
The cost of the equipment is paid through the payment for reagent supplies. The department must purchase a minimum amount of reagent supplies on a monthly basis. The County may only terminate the Agreement for Leica’s uncured breach, or if the board fails to appropriate funds due under the Agreement in any fiscal year. The County is obligated to indemnify Leica for any liability arising out of protected health information that remains in equipment returned to Leica upon expiration or termination of the Agreement.
On December 6, 2022, the Board of Supervisors approved Contract #23-787 with Leica Microsystems, Inc., in an amount not to exceed $596,174, to provide tissue sample equipment and reagent supplies for Contra Costa Regional Medical Center for the period from September 1, 2022 through August 31, 2027.
On March 7, 2023, the Board of Supervisors rescinded prior approved Board Item (C.26) that stated the incorrect contract term agreed to by the parties. The purpose of this Board Order was to correct the term to read January 4, 2023 through January 3, 2028, to match the term of the Agreement.
On February 27, 2024, the Board of Supervisors approved Amendment Agreement #23-787-1 to reduce the minimum monthly purchase commitment requirements not being met by County, with no change in the payment limit or term.
Approval of Amendment Agreement #23-787-2 will include Contractor’s complete pricing summary which includes additional, less frequently ordered supplies to ensure all supplies purchased by County are included on one price list through June 30, 2028.
CONSEQUENCE OF NEGATIVE ACTION:
If this Amendment is not approved, Contract will not include additional, less frequently ordered items onto a modified pricing summary, which may result in continued delay of invoice processing and workflow challenges causing late payments to Contractor.