To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Payment for Products and Services provided by Omnicell, Inc.
☒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 $28,805 to Omnicell, Inc. for the lease and service of two Omnicell medication re-packagers located at the Martinez and West County Detention Facilities for the period from March 1, 2026 through May 31, 2026.
FISCAL IMPACT:
Approval of this action will result in a one-time expenditure of up to $28,805 and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Contra Costa Regional Medical Center has used Omnicell, Inc. since 2005 throughout the continuum of care. The Automated Dispensing Cabinets, (ADC) are integrated with the Pharmacy information system within EPIC, enabling real-time coordination and management of pharmaceutical workflows. They are essential for ensuring safe, accurate, and efficient medication management, reducing medication errors, and maintaining compliance with state and federal regulatory requirements. This existing equipment and associated support services will be upgraded and replaced once the new equipment is installed.
On September10, 2019, the Board of Supervisors approved agenda item C.126 to execute a purchase order #17192 with Med One Capital Funding, LLC, in an amount of $531,827 for the lease of two Yuyama Automated Medication Dispensing Systems including equipment, software service and support for the Martinez Detention Facility (MDF) and West County Detention Facility (WCDF), for the period from July 1, 2019 through June 30, 2024.
On October 22, 2024 the Board of Supervisors approved agenda item C.95 to execute an amendment to purchase order #17192 with Med One Capital Funding, LLC to increase the payment limit by $20,000 to a new amount of $551,827 and extend the term through June 30, 2025 to complete the lease agreement for Omnicell automated medication packagers for MDF and WCDF.
On March 31, 2026, the Board of Supervisors approved agenda item C.62 to execute purchase orders and Lease Supplements with Meridian Leasing Corporation, in an amount of $1,303,307; and a Third Party Financing Letter and Pricing Supplements with Omnicell, Inc. for the lease of two (2) Automated Medication Dispensing Systems including equipment, software, upgrades, services and interface support, for the MDF and WCDF, for the period March 31, 2026 through March 30, 2031. This action will facilitate the deployment of updated equipment and the upgrade of the system platform interface at both facilities.
Since the expiration of purchase order #17192, the lease and service of two Omnicell medication re-packagers has been invoiced on a month-to-month basis, however delays were encountered due to miscommunication between the department and the vendors resulting in outstanding invoices for the period from March 1, 2026 through May 31, 2026. Therefore, it is necessary to authorize payment to Omnicell, Inc. for leasing services previously rendered. The Inpatient Pharmacy is working with Public Works Purchasing to ensure that a purchase order is in place to cover future invoices of the lease and service of two existing Omnicell medication re-packagers until the replacement system is ready to deploy. Due to this administrative oversight, staff have determined that the vendor 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 vendor has been asked to provide products or services without a valid contract, and the vendor does so to the benefit of the County, the vendor is entitled to recover the reasonable value of the products and services.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, the County will be unable to process payment for products and services already rendered, which are essential for the continued safe and secure operation of medication repackaging systems at detention facilities.