Approval of this action will result in expenditures of up to $1,626,600 over the forty-one (41) month period between May 1, 2022 to November 30, 2025, and will be fully funded by Hospital Enterprise Fund I revenues.

Contra Costa Regional Medical Center (CCRMC) and Health Centers went to bid in 2007 for janitorial supplies. The bid was awarded to Unisource, who later merged with Xpedx to form Veritiv in January 2014. On December 7, 2010, the Board of Supervisors approved agenda item C.27 to add funds to existing Purchase Order #21837 for a new total of $1,130,000 for the purchase of janitorial supplies.   
  
Vertiv is an awarded supplier for janitorial supplies and chemicals on the Vizient Group Purchasing Organization (GPO) contract # EV1014.  
  
Over the past two years, there has been an exponential increase in the volume of cleaning supplies, chemicals and equipment utilized to continuously provide a safe environment for staff, patients, and visitors. At the same time, like medical supply shortages, the Environmental Services Department at CCRMC also experienced supply shortages due to the ongoing supply chain disruptions. During this difficult time, Veritiv continued to support the Hospital and health centers by providing an increased volume of critically needed cleaning supplies and sharps containers that we were unable to obtain through other vendors. Due to the constant supply struggles and unpredictable spending patterns, Environmental Services did not realize they had exceeded their funding allocation, as they were focused on maintaining a safe environment.  
  
The supplier is entitled to payment for the reasonable value of its supplies under the equitable relief theory of quantum meruit. The theory provides that where a supplier has been asked to provide goods without a valid contract, and the supplier does so to the benefit of the County, the supplier is entitled to recover the reasonable value of those goods. The Department cannot pay the supplier for the goods procured as they lack the necessary instrument to issue payment. As such, the Department recommends the approval of both a $138,250 payment for the supplies included in past due invoices through October 22, 2022, and a purchase order to fund the purchases of cleaning supplies, chemicals and equipment from October 23, 2022 through November 30, 2025.   
  
Approval of these actions will allow the vendor to receive payment for supplies provided and to continue providing much needed janitorial supplies for CCRMC and Health Centers through November 30, 2025.

If this purchase order is not approved, CCRMC and Health Centers will not have the necessary cleaning supplies, chemicals, and equipment necessary to maintain a clean and safe environment for the staff, patients and visitors that utilize our services. Additionally, the Hospital will be at risk for not meeting regulatory requirements mandated by The Joint Commission, Title 22, etc.  
  
Additionally, Veritiv Operating Company will not be paid for supplies rendered in good faith.