Agenda

Return

C. 77

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	August 1, 2023

Contra

Costa

County

Subject:

Payment for supplies provided by DiaSorin Inc.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/01/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Karin Stryker, (925) 370-5141

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: August 1, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Auditor-Controller or designee, to pay an amount not to exceed $51,405 to DiaSorin Inc. for reagents and controls for the DiaSorin Liaison XL Analyzer, for the Clinical Laboratory at the Contra Costa Regional Medical Center (CCRMC) during the period of March 22, 2023 through March 30, 2023.

FISCAL IMPACT:

Approval of this action will result in a one-time expenditure in an amount not to exceed $51,405 and will be funded entirely by Hospital Enterprise Fund I revenues.

BACKGROUND:

The CCRMC Clinical Laboratory uses the DiaSorin Liaison XL Analyzer for numerous specialty tests such as Measles, Mumps, Rubella, QuantiFERON TB testing, and the recent addition of VZV (chickenpox) testing performed routinely on patient samples within the Clinical Laboratory.

BACKGROUND: (CONT'D)

Public Health recently made the decision to stop their in-house VZV testing, which prompted CCRMC Clinical laboratory to bring all VZV testing in-house, with the goal of cost-reduction in mind. The projected numbers were to include Public Health’s patient load, any testing that was currently being sent out by the clinical laboratory and unknown projected influx of needed testing. The Clinical laboratory could not determine the exact quantities needed based on the new influx of the potential testing pools.

The laboratory needed the supplies quickly for the initial setup of the VZV testing panels for validation. DiaSorin validation and correlations required several reagents and products along with a large sample of patients to ensure the validity of the results being produced were accurate and reproducible. The laboratory is currently in process of establishing a purchase order with DiaSorin for their proprietary supplies to continue the VZV testing.

On July 27, 2021, the Board of Supervisors approved Contract #76-753 with DiaSorin Inc., for the purchase and service of the Liaison XL Analyzer. The purchase of the new machine allowed the laboratory to upgrade their systems and improve efficiency.

In April 2023 when the supplies were ordered, the Clinical Laboratory became aware that the contract only covered the purchase of the analyzer and service, and did not include reagents and controls. A contract amendment was initiated, but it was ultimately deemed that a purchase order would be the appropriate pathway for purchasing. The Clinical Lab is in the process of establishing a purchase order to continue ordering these supplies for the Liaison XL Analyzer and staff have been reminded to verify contract language to determine that the proper payment instruments are established prior to purchase.

Staff have determined that the vendor is entitled to payment for the reasonable value of the products and services under the equitable relief theory of quantum meruit. The theory provides that where a vendor has been asked to provide products and services without a valid contract, and the vendor does so to the benefit of the County, the vendor is entitled to recover the reasonable value of those products and services. Since the department cannot pay DiaSorin Inc. for products and services rendered as they lack the necessary instrument to issue payment, this request is for the Board to authorize the Auditor-Controller to issue a one-time payment to the vendor in an amount not to exceed $51,405.

CONSEQUENCE OF NEGATIVE ACTION:

If this request is not approved, DiaSorin Inc. will not be paid for products and services rendered in good faith. This will jeopardize our ability to purchase their proprietary controls and reagents that are specific to the DiaSorin Analyzer purchased by the laboratory in 2021. Patient testing will be negatively affected and result in delays in patient results while incurring significant costs due to sending out testing to a reference laboratory.