To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Amendment to Purchase Order with Olympus America Inc.
☒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, an amendment to purchase order #29638 with Olympus America Inc., to increase the payment limit by $110,000 to a new payment limit of $300,000 for the purchase of instruments and equipment for use at Contra Costa Regional Medical Center (CCRMC) with no change in the original term of January 1, 2024 through November 30, 2025.
FISCAL IMPACT:
Approval of this action will result in additional expenditures of up to $110,000 and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Olympus America, Inc. is a leading provider of medical equipment and instruments, including endoscopes, surgical instruments, and related supplies which are used in the CCRMC operating rooms. The purchase order was originally established based on historical data; however, the actual spend is higher than originally anticipated, primarily due to an increase in gastrointestinal cases in the CCRMC operating rooms. The change order processed in August 2024, to add additional funds, was incorrectly projected, leading to this additional request for funds.
On February 13, 2024, the Purchasing Agent executed blanket purchase order #29638 with Olympus America in the amount of $90,000 for the purchase of instruments and equipment for the term of January 1, 2024 through November 30, 2025.
On August 15, 2024, the Purchasing Agent executed an amendment to purchase order #29638 to increase the payment limit by $100,000 to a new payment limit of $190,000 due to an increase in expenditures, with no change to the original term of January 1, 2024 through November 30, 2025.
Olympus America Inc. is a member of the Vizient Group Purchasing Organization (GPO), which allows CCRMC to leverage pricing discounts and deliver high-quality, cost-effective healthcare solutions. CCRMC utilizes Olympus America Inc. exclusively for endoscopy equipment and supplies to receive rebates.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, CCRMC will not be able to purchase critical instruments and equipment for patient care.