Santa Cruz County
CA

Agenda Item
DOC-2020-841

Ratify emergency fixed asset purchase in the amount of $84,500 for BD MAX Analyzer Clinical Instrument; ratify Amendment No. 1 to agreement with Becton, Dickinson and Company for purchase of an additional BD Max Analyzer, service plan, and minimum amount of testing kits and consumables; ratify emergency purchase of fixed asset in the amount of $95,000 for a BioFire Torch Module Box System; and take related actions, as recommended by the Director of Health Services

Information

Department:Health Services Agency: Outpatient Medical Clinics DivisionSponsors:Director of Health Services Agency Mimi Hall
Category:HSA CLINIC - Board LetterFunctions:Health & Human Services

Financial Impact

BD Max: The purchase order agreement with Becton Dickinson includes the following: One time cost of $84,500 for the purchase of a BD MAX analyzer machine, including the Lysis Warming System, the service plan agreement at an annual cost of $8,500, and an agreement to purchase the minimum amount of testing kits and consumables at the cost of approximately $50,000 annually. GSD approved the Emergency P.O. #E-0085 for the purchase of the BD Max fixed assets and testing kits and consumables. The P.O. is budgeted in 362215/86208/H69000/CRF1 for the lab equipment and 362215/61920/H69000/CRF1 for reagents and lab supplies. This purchase is funded through CARES funding. BioFire: The purchase order agreement with BioFire Diagnostics, LLC includes the following: One-time cost of $95,000 for the purchase of a BioFire System and an extended warranty contract of $21,700 will cover a 5-year warranty period. There is no minimum reagent purchase required, but it is estimated HSA will spend approximately $50,000 annually for reagents. GSD approved the Emergency P.O. #E-0098 for the purchase of the BioFire Torch Module Box System along with assay testing materials. The P.O. is budgeted in 362215/86208/H69000/CRF1 for the lab equipment and 362215/61920/H69000/CRF1 for reagents and lab supplies. This purchase is funded through CARES funding.

Board Letter

Recommended Actions:

1.              Ratify an Emergency Purchase Order, #E-0085, for the fixed asset purchase of the BD Max Analyzer Clinical Instrument for $84,500 on July 7, 2020;

 

2.              Ratify Amendment No. 1 to the BD Acquisition Agreement with Becton, Dickinson and Company for the purchase of one additional BD Max Analyzer, service plan, and a minimum amount of testing kits and consumables;

 

3.              Ratify an Emergency Purchase Order, #E-0098, for the fixed asset purchase of the Biofire Torch Module Box System for $95,000 on July 31, 2020; and

 

4.              Authorize the Health Services Agency Director or designee to sign a future agreement with BioFire for the purchase of an extended warranty, which will begin one year from the date the purchase is shipped.

 

Executive Summary

The Health Services Agency (HAS) is requesting Board ratification of Emergency Purchase Orders with Becton, Dickinson and Company (BD) and BioFire Diagnostics, LLC (BioFire) for the provision of laboratory assay consumables, reagents, and equipment that are necessary for testing novel coronavirus (COVID-19), seasonal flu viruses, sexually transmitted infection (STI), and other diseases. Board approval is required to ratify these expenditures as the items purchased meet the County's definition of a Fixed Asset. The purchase of these laboratory machines will increase the County’s COVID-19 testing capacity by approximately 128 tests per day and provide a wider range of testing capabilities.

 

Background

 

BD Max

HAS maintains an annual service agreement with BD, a medical technology company, for supplies and analyzer equipment supporting clinical laboratory operations. On March 20, 2020, HAS executed a Purchase Order (P.O.) for the purchase and service agreement of HSA’s first BD MaxTM Molecular Diagnostic Platform (BD Max) (E#0010) and test kits/consumables (E#-0017) after receiving emergency approval from the General Services Department (GSD), which was subsequently approved by the Board on May 19, 2020. The BD Max was approved for Emergency Use Authorization by the U.S. Food and Drug Administration (FDA) for COVID-19 testing. The system is fully automated, reducing the opportunity for human error and increasing the speed to result. Samples are capable of being analyzed start to finish in three hours. Each BD MAX System can process 24 samples simultaneously. This purchase has made it possible for HSA’s Laboratory to test patients and first responders for COVID-19.

 

On July 7, 2020, GSD issued an Emergency P.O. (E# 0085) for the purchase of an additional BD Max Analyzer. With this purchase, BD issued an “Amendment 1 to BD Acquisition Agreement.” This amendment covers both BD Max machine purchases including consumable purchase requirements and service plan requirements which extend for a period of five years. The service plan in the Amendment has secured stable pricing for the duration of the agreement. Two blanket purchase orders will be requested for BD, one for the purchase of consumables and the other for the service agreement.

 

BioFire Film Array System

The BioFire Film Array System (Biofire System) is the new standard for syndromic infectious disease molecular diagnostics. The BioFire System has been approved for Emergency Use Authorization by the FDA for COVID-19 testing. The BioFire System can process four samples simultaneously and delivers accurate results in about one hour. On July 31, 2020, GSD approved an Emergency P.O. (#E-0098) for the purchase of the BioFire Torch Module Box System along with assay testing materials. Two blanket purchase orders will be requested for BioFire, one for the purchase of consumables and the other for the warranty purchase.

 

Analysis

Each system (BD MAX and BioFire System) allows the laboratory to perform assays that will support public health programs of HSA’s Communicable Disease Unit in identifying and containing infectious disease outbreaks, such as COVID-19. The BioFire System has the same capabilities; however, where the BD Max has the ability to choose the test one wants to run, the BioFire System has the ability and advantage to test for several diseases at once and allows the clinician to differentiate COVID-19 and some other corona-like viruses. The ability to accurately diagnose the and differentiate viruses will be especially helpful during the flu season so appropriate treatment can be administered.

Body

Strategic Plan Elements

1.A (Comprehensive Health & Safety: Health Equity) - This equipment will allow HSA to complete a multitude of tests in house that are currently outsourced and will make it possible to test for COVID-19 with results in approximately two hours for Santa Cruz County residents.

 

6.D (Operational Excellence: Continuous Improvement) - This Lab Testing equipment and service agreement allows for HSA’s laboratory to engage in effective and innovative technological advances in laboratory testing which helps maintain continuous quality improvement to optimize County operations.

Meeting History

Oct 20, 2020 9:00 AM Video Board of Supervisors Regular Meeting
RESULT:APPROVED [UNANIMOUS]
MOVER:John Leopold, First District Supervisor
SECONDER:Ryan Coonerty, Third District Supervisor
AYES:John Leopold, Zach Friend, Ryan Coonerty, Greg Caput, Bruce McPherson

Discussion