To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Rescind Prior Board Action Pertaining to Contracted Services with Omnicell, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RESCIND Board action of April 22, 2024 (C.65), which pertained to a contract with Omnicell, Inc.; and APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #23-840 containing mutual indemnification with Omnicell, Inc., a corporation, in an amount not to exceed $137,625, to provide an automated medication dispensing system and software for Contra Costa Health patient care for the period from April 23, 2024 through April 22, 2029.
FISCAL IMPACT:
This Contract will result in contractual service expenditures of up to $137,625 over a 5-year period and will be funded 100% by Hospital Enterprise Fund I.
BACKGROUND:
This contract meets the needs of the county by providing an automated medication dispensing system that enables safer medication management. The County currently utilizes the Omnicell XT Automated Dispensing Cabinet throughout Contra Costa Regional Medical Center, Health Centers, and Detention facilities to provide access to medications for nursing workflow. The current virtual server has reached the end of its life and requires an upgrade. The virtual server manages database management and administration functions for all the existing Omnicell equipment used for medication dispensing and direct patient care. An updated virtual server is needed to allow the Omnicell XT equipment to receive software updates to ensure its optimal operation, maintain the system, and meet the current standard of care practice. This contractor has been approved by the Public Works Department’s Purchasing Division on January 17, 2024.
Under Contact #23-840, the parties will execute (1) a Master Agreement which will continue in full force and effect unless otherwise terminated and outlines the ordering process, delivery, payment, and risk responsibilities, and (2) a Pricing Supplement for the upgrade of the existing virtual server(s). The term of any Pricing Supplement (executed under this Master Agreement) will be set forth in such a Pricing Supplement.
Under Contract #23-840 Omnicell, Inc.’s total cumulative liability for damages under the agreement is limited to the amount of payments actually paid by County to Omnicell, Inc., under the agreement. Under the agreement, County is obligated to indemnify Omnicell, Inc. from any claims relating to any medical decisions made or not made with respect to any of Customer’s patients, and any violation of any applicable laws covering shipment of any and all controlled substances.
On April 22, 2024, the Board of Supervisors approved C.65 to execute Contract #23-840, however, the payment limit on the Board Order was ($1,500) short of the pricing supplements ultimately executed under the Master Agreement. This Board Order will rescind that incorrect Board Order and allow the Department to increase the funds for the 5-year Contract by $1,500 from $136,125 to a new Payment Limit of $137,625. This will allow the Contractor to be paid for its automated medication dispensing system and software for Contra Costa Health patient care through April 22, 2029.
CONSEQUENCE OF NEGATIVE ACTION:
If the recommendation is not approved, the prior incorrect Board action will stand, and the department will not have Board authorization to increase the payment limit for the FY 2024-2029 Contract allowing payment for services to be provided by Omnicell, Inc., through April 22, 2029.