To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Purchase Order with Covidien Sales LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Health Services Director, a blanket purchase order with Covidien Sales LLC in an amount not to exceed $1,200,000 and Letter of Commitment (LOC) for the purchase of instruments, sutures, and supplies for Contra Costa Health (CCH), for the period of September 1, 2024 through August 31, 2027.
FISCAL IMPACT:
Approval of this action will result in expenditures of up to $1,200,000 over a three-year period and will be funded 100% by Hospital Enterprise Fund I Revenues.
BACKGROUND:
Covidien Sales LLC is a subsidiary of Medtronic, a global leader in medical technology, and is the sales entity that was part of the larger Covidien company before it was acquired by Medtronic. It continues to play a role in selling and distributing medical products that were originally developed and manufactured by Covidien. Covidien Sales LLC operates as a sales and distribution arm within Medtronic, focusing on the continued distribution and support of Covidien’s product lines.
The primary categories of products that Covidien provides include surgical instruments such as staplers, sutures, and other surgical tools used in open and minimally invasive surgeries. On October 22, 2019, the board of supervisors approved agenda item C.79 to execute a purchase order with Covidien Holding, Inc. in the amount of $2,250,000 for the period of February 1, 2020, through January 1, 2024
On October 20, 2020, the board of supervisors approved agenda item C.66 to execute a purchase order with Covidien Sales LLC in the amount of $2,750,000 for the period of September 1, 2020, through August 31, 2024.
The Letter of Commitment is subject to the terms and conditions of Product Supplier Agreement No. MS7322 between Vizient Supply, LLC and Covidien Sales LLC. The Supplier Agreement and LOC limit the parties’ liability in that neither party will be liable for losses and damages that are not direct damages arising out of any breach of the Agreement or LOC.
Covidien Sales LLC is a member of the Vizient Group Purchasing Organization (GPO), which means that CCH will receive rebates. This will further solidify our shared dedication to delivering high-quality, cost-effective healthcare solutions.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, CCH will not be able to perform surgeries and it can lead to serious consequences that affect patient care, hospital operations, and overall safety.