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APPROVE A COOPERATIVE PURCHASE AGREEMENT WITH LIFE-ASSIST, INC. THROUGH NATIONAL PURCHASING PARTNERS, LEAGUE OF OREGON CITIES FOR PROCUREMENT OF MEDICAL AND PHARMACEUTICAL SUPPLIES, EQUIPMENT AND RELATED SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager to execute an initial three (3) year cooperative purchase agreement (Attachment A) with Life-Assist, Inc. to purchase medical and pharmaceutical supplies, equipment, and related services through a cooperative contract with National Purchasing Partners, League of Oregon Cities for an initial amount not to exceed $390,000, with three (3) optional one-year renewals for an estimated cost of $130,000 per year; and
2. Approve findings pursuant to Stockton Municipal Code Section 3.68.070 in support of an exception to the competitive bidding process; and
3. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The proposed motion will declare that an exception to the competitive bidding process is justified and will direct the City Manager to execute a cooperative purchase agreement with Life-Assist Inc. (Life-Assist) to purchase medical and pharmaceutical supplies, equipment, and related services, as necessary for FY2020-21 and succeeding fiscal years, through a cooperative purchasing contract between National Purchasing Partners (NPPGov), League of Oregon Cities (LOC) and Life-Assist. The initial three-year contract cost is $390,000, with three (3) optional one-year renewals for an estimated cost of $130,000 per year.
DISCUSSION
Background
Stockton Fire Department (SFD) provides First Responder Advanced Life Support (ALS) Emergency Medical Services (EMS) to the citizens of our community. To be accredited by the San Joaquin County EMS Agency to provide this service, SFD apparatuses are required to maintain standard inventories of medications, materials, equipment, and supplies. A small percentage of these consumable supplies are restocked by transporting ambulances in the field, such as medications, bandaging materials, and intravenous products. Additionally, items such as backboards and traction splints often accompany patients to the hospital and are difficult or impossible to retrieve. This motion, if adopted, will allow SFD to continue to maintain the required inventory levels of equipment and supplies, and provide uninterrupted service to the community. SFD is currently utilizing a cooperative purchasing agreement that was established through a competitive bidding process between the Sacramento Metropolitan Fire District (SMFD) and Life-Assist. The agreement expires on September 30, 2020.
Present Situation
SFD staff has identified a contract through NPPGov, LOC with Life-Assist for the purchase of medical and pharmaceutical supplies, equipment, and related services. NPPGov is a national cooperative procurement organization offering publicly solicited contracts to government entities nationwide. LOC is the governmental entity that issued the Request for Proposal and awarded this resulting Master Price Agreement. The LOC conducted a competitive bidding process in February 2020 that established a cooperative purchasing agreement with Life-Assist beginning April 1, 2020, for three (3) initial years ending March 31, 2023, with three (3) optional one-year renewals. This agreement will span over six years, ending on March 31, 2026, if extensions are executed through a written amendment. Membership is entirely free and voluntary. SFD’s current membership with NPPGov allows access to contract pricing on the Master Price Agreement.
Authorizing the use of the cooperative agreement will allow the City to take advantage of 31% in discounts off the majority of Life-Assist products and 15% discount off Life-Assist installation, service, and maintenance. SFD and Procurement Division have reviewed the bid specifications to ensure that it meets our needs for the procurement of EMS pharmaceutical supplies and ALS supplies. The LOC bid process was reviewed by Procurement staff to ensure compliance with the City of Stockton directives, the Charter and its municipal codes, and other associated policies and procedures.
The Procurement Division of Administrative Services Department confirms that participation in cooperative purchasing programs with other public entities that have gone through the bid process not only provides cost savings by means of purchasing volume but also reduces staff time in developing bid specification or hiring an outside consultant to write and review all bids and conducting the bid process. The request to purchase for the succeeding fiscal years will allow the Department the flexibility and continuity to procure fire equipment and services from Life-Assist, without having to seek Council approval each year.
Findings
Stockton Municipal Code Section 3.68.070 provides for an exception to the competitive bidding process in cases where the City Council has approved findings that support and justify the purchase through a cooperative purchasing agreement. The proposed findings are as follows:
1. The LOC has established a purchasing agreement with Life-Assist, Inc. for the designated equipment, supplies, and services that are needed by SFD to provide emergency medical and pharmaceutical supplies, equipment, and related services.
2. The LOC established its purchasing agreement with Life-Assist, Inc. through a competitive bidding process.
3. The Procurement Division of Administrative Services recommends and approves the use of this cooperative purchase agreement and has determined the process that was used to establish the cooperative agreement was awarded through a competitive process and meets the City’s procurement requirements.
4. The cooperative agreement allows other agencies such as the City of Stockton the ability to utilize and participate in the agreement.
5. There is an immediate need to continue purchases of equipment, services, and supplies through the cooperative purchasing agreement, and due to the City’s limited resources to conduct its own competitive bid process and the time necessary to do so, it is in the best interest of the City of Stockton to use the cooperative purchasing agreement with Life-Assist, Inc.
Based on the above findings and pursuant to SMC Section 3.68.070, staff recommends approval of the purchase of medical and pharmaceutical supplies, equipment, and related services through NPPGov, LOC cooperative purchasing agreement with Life-Assist, Inc. through March 31, 2026.
FINANCIAL SUMMARY
SFD has an annual budget allocation of approximately $130,000 for emergency medical supplies, equipment, and related services. There are sufficient funds in Fire Fighting/EMS account 010-2620-530 to pay for purchases under this cooperative purchasing agreement with Life-Assist, Inc. for FY2020-21. The initial three-year contract cost is $390,000, with three (3) optional one-year renewals for an estimated cost of $130,000 per year. Total procurements from Life-Assist, Inc. for FY2020-21 and the succeeding fiscal years will be on an as-needed basis and will be limited to the approved budget allocation for the EMS program.
Attachment A - City of Stockton Cooperative Purchasing Agreement with Life-Assist, Inc.