City Council
Report
City Council Meeting: February 25, 2020
Agenda Item: 3.E
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management Subject: Award Request for Proposal and enter into Agreement with USMD Direct Inc. for On-Site Occupational Medical Testing Services
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 244 to USMD Direct Inc. (“USMD”), a California-based company for on-site occupational medical testing services
2. Authorize the City Manager to negotiate and execute an agreement with USMD, in an amount not to exceed $400,000 over a five-year period, with future year funding contingent on Council budget approval.
Summary
Staff recommends that the City enter into an agreement with USMD Direct Inc. (USMD) to provide legally mandated occupational medical testing (OMT) services to City employees on-site in a mobile medical unit at various locations throughout the City, such as the Big Blue Bus (BBB) Yards, City Yards, etc. A provider performing these services on-site as opposed to off-site in a medical office will result in the City reclaiming an estimated 900 hours annually in lost productivity.
Discussion
In order to comply with state and federal regulations, the City is required to provide employees in certain classifications with the following OMT services: Department of Transportation (DOT) commercial driver medical certification testing, tuberculosis screenings, and various vaccinations. Historically, OMT providers performed these services in their offices located outside the City limits. Consequently, an employee can miss several hours of work due to an OMT appointment, resulting in lost productivity and possible overtime costs.
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After exploring different options to combat this issue, staff determined that a mobile medical unit providing OMT services on-site was the best solution, as it could be achieved without significant changes to the City’s existing processes and minimal, if any, additional costs. To ascertain its feasibility and cost-effectiveness, a pilot program was conceived for BBB employees to obtain the most frequently used OMT service, commercial driver medical certification testing, on-site at the BBB Yard. Staff engaged in finding local medical providers that could participate in the pilot and found just one, USMD, that could administer the testing in the desired manner – in a mobile medical unit on-site. As a result, City Manager approved the contract with USMD per the exception to competitive bidding provision (Municipal Code 2.24.250) with a commencement date of October 15, 2018.
The results from the nine-month long pilot were very encouraging. BBB staff scheduling the commercial driver medical certification testing and the employees being tested both expressed satisfaction with the ease and convenience of the service provided by USMD. The City was able to recoup an estimated 558 hours in productivity that would be lost if each of the 223 participants was paid for two and half hours of travel and wait time, as was customary when utilizing brick-and-mortar medical providers for the testing. In addition, due to its lower overhead costs, USMD is less costly than the City’s OMT providers and as a result, BBB saved $20,895 in testing fees.
The pilot program results provided the data to support changing the delivery method for OMT services from medical facilities located outside the City limits to a mobile medical unit on-site. As such, staff decided to pursue a contract for a vendor to administer all OMT services, including vaccinations and TB tests, to all qualified employees on-site at the City’s various locations. This broader scope of work necessitated a much higher funding level than the amount included in the contract with USMD already in place. To ensure that every qualified consultant was considered for the city-wide program, staff issued a Request for Proposal (RFP) for an operator of mobile medical unit(s) to provide on-site OMT services to City employees.
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Consultant Selection
Bidder Recommendation
Best Qualified
Person/Firm
USMD Direct Inc.
Evaluation Criteria
(include all that apply)
Experience, quality of mobile medical unit, compliance with service standards, cost, references.
Municipal Code SMMC 2.24.190
RFPs Received
USMD Direct Inc.
RFP Data
Date Posted Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date
Publicly
Opened
10/17/2019 City's Online
Bidding Site Santa Monica Daily Press 6 11/07/2019
Additional Vendor Outreach & Justification to Award
Given the specific nature of the request for a medical provider to administer OMT services on-site in a mobile unit, staff was satisfied that reissuing the RFP would not attract additional responses. A selection panel composed of staff from Human Resources and Finance was convened to evaluate USMD’s proposal. Based on this review, the selection panel determined that USMD satisfied the requirements set in the City’s RFP. Further, USMD’s performance during the pilot program demonstrated that it can provide high quality, timely, and cost-effective OMT services in compliance with service standards. As a result, staff recommends USMD as the best bidder.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Self-Insurance, Workers’ Compensation Fund to award an agreement with USMD Direct Inc. for on-site occupational medical testing services.
Contract/Agreement/Purchase Order Request
Request
Amount
FY 2019-20 Budget
Department/CIP Account #
Total Contract
Amount
$40,000 74800002.552010 $400,000
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Future year funding is contingent on Council budget approval.
Prepared By: Oles Gordeev, Risk Manager
Approved Forwarded to Council
Attachments:
A. USMD Oaks Initiative Form
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period;
5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.
Name(s) of persons or entities receiving public benefit:
USMDDirect Inc.
Name(s) of trustees, directors, partners, and officers:
Fawad Zafar-Khan, Sadia Zafar-Khan
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Fawad Zafar-Khan
Prepared by: Fawad Zafar-Khan______ Title: ___CEO________________
Signature: _________________ Date: __11/13/19_________
Email: [email protected]_______________ Phone: __310-913-0019____ FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________ REFERENCE:
Agreement No. 11001 (CCS)