To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment #77-692-1 with National Labs 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 Contract Amendment #77-692-1 with National Labs Inc, a corporation, effective February 1, 2026, to amend Contract #77-692, to increase the payment limit by $150,000 from $200,000 to a new payment limit of $350,000, for additional laboratory services with no change in the term ending September 30, 2026.
FISCAL IMPACT:
Approval of this Contract Amendment will result in additional expenditures of $150,000 which will be funded 100% by Contra Costa Health Plan (CCHP) Enterprise Fund II revenues. (No rate increase)
BACKGROUND:
CCHP has an obligation to provide certain laboratory services for its members under the terms of their Individual and Group Health Plan membership Contracts with the County. This Contractor has been a part of the CCHP Provider Network providing these services and fostering a deep understanding of the CCHP organization’s mission, values, and long-term objectives since October 1, 2024.
This Contract is entered into under and subject to the following legal authorities: California Government Code §§ 26227 and 31000; Health and Safety Code § 1451. Health Services Personnel approved this Contract to ensure no conflicts with labor relations. Contractor currently cooperates with and participates in CCHP’s Quality Management Program which consists of quality improvement activities to improve the quality of care and services and member experience. Cooperation includes collection and evaluation of performance measurement data and participation in the organization’s clinical and service measure Quality Improvement Programs. These contracted services were determined to be exempt from Administrative Bulletin 600.3 solicitation requirements by the Public Works Department’s Purchasing Division.
In November 2024, the Purchasing Services Manager executed Contract #77-692 with National Labs Inc, in an amount not to exceed $200,000, for the provision of laboratory services for CCHP members and County recipients for the period of October 1, 2024 through September 30, 2026.
Approval of Contract Amendment #77-692-1 will allow the Contractor to provide additional laboratory services through September 30, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment is not approved, the additional laboratory services needed for CCHP members under the terms of their Individual and Group Health Plan membership contracts with the County will not be provided and may cause a delay in services to CCHP members.