HomeMy WebLinkAboutItem 11d - Purchase of Cardiac Defibrillators - Monitors
STAFF REPORT
Fire Department
DATE: August 21, 2018
TO: Honorable Mayor and City Council
FROM: Michael E. Lang, Fire Chief
By: Kevin Valentine, Battalion Chief
Maria Lourdes A. Taylor, Sr. Management Analyst
SUBJECT: PURCHASE ORDER WITH ZOLL MEDICAL CORPORATION TO
PURCHASE NINE (9) 12-LEAD ELECTROCARDIOGRAM (“EKG”)
CARDIAC DEFIBRILLATORS/MONITORS TO REPLACE AND
ENHANCE THE FIRE DEPARTMENT’S PARAMEDIC EQUIPMENT IN
AN AMOUNT NOT TO EXCEED $290,141
Recommendation: Approve
SUMMARY
Utilizing the County of Los Angeles cooperative purchasing pricing (also known as
“piggybacking”), it is recommended that the City Council approve a purchase order with
Zoll Medical Corporation (“Zoll”) to purchase nine (9) 12-lead electrocardiograph
(“EKG”) cardiac defibrillators/monitors and necessary equipment in an amount not to
exceed $290,141. This purchase will replace and enhance the Fire Department’s
paramedic equipment. As an incentive, the Fire Department would like to take
advantage of Zoll’s offer of a five -year payment plan, with zero interest, to the City of
Arcadia by purchasing all nine (9) 12-lead EKG cardiac defibrillators/monitors during
this Fiscal Year. With this offer, the City of Arcadia will be paying $58,030 annually, for
the next five years, commencing in Fiscal Year 2018-19 through 2022-23.
Attached is the County of Los Angeles Contract Services Agreement with Zoll.
BACKGROUND
According to the American Heart Association, each year, nearly 400,000 Americans
experience acute cardiac emergencies. The electrocardiogram (“EKG”)
defibrillators/monitors have been a vital tool of the Arcadia Fire Department Paramedic
Program since its inception in the early 1970’s. The overall goal of the Paramedic
Program is to reduce morbidity and mortality incidents from acute cardiac disease and
other medical emergencies by providing exceptional emergency medical care.
Purchase Order for Cardiac Defibrillators/Monitors
August 21, 2018
Page 2 of 4
As a pre-hospital emergency care provider that administers advanced life support, the
Arcadia Fire Department Paramedics carry and use defibrillators/cardiac monitors with
12-lead EKG capabilities as one of their most important emergency medical pieces of
equipment. Through the use of this technology, paramedics can promptly identify the
status of 9-1-1 cardiac patients in a pre-hospital care setting, and subsequently
transport a patient to an approved hospital for definitive diagnosis and treatment,
ultimately saving lives.
DISCUSSION
As part of the Fire Department’s ongoing effort to improve its services to the citizens of
Arcadia, it is essential to obtain up-to-date 12-lead EKG cardiac defibrillators and
monitors, and placing them on all frontline apparatus. These monitors have capabilities
of switching from an AED (automated external defibrillator) function to a 12-lead EKG
capabilities. AED function delivers an electric shock through the chest to the heart to
allow normal rhythm to resume following a sudden cardiac arrest; a 12 -lead EKG
function allows electrical activity reading of one’s heart rate and rhythm.
The City of Arcadia’s Purchasing Policy allows “piggybacking” in its procurement
process. This process enables a public agency to use an existing public contract to
procure similar items or services under the same pricing and terms of the contract. This
method allows savings in time, resources, and cost by leveraging another agency’s
successful competitive bidding process with the benefits of volume or bulk pricing.
As reflected in the adopted Equipment Acquisition Fund budget, the Department’s initial
replacement plan was to purchase nine (9) cardiac defibrillators/monitors and necessary
equipment over a three-year period beginning in FY 2018-19 through FY 2020-21
(obtain three (3) cardiac monitors at $100,000 per Fiscal Year). Recently, the County of
Los Angeles extended its contract with Zoll for the purchase of their cardiac defibrillators
and monitors. It is prudent to piggyback on their contract to take advantage of their
lower or bulk pricing.
Through March 2019, the County of Los Angeles pricing includes a 30% discount off of
catalog pricing. By piggybacking with their contract, the City will realize substantial
savings for the purchase of similar cardiac equipment: the cost for each cardiac
defibrillator/monitor unit is $32,237.81; as opposed to $46,054 per unit, without the
discount. Thus a total savings of $13,816.19 per unit.
As an incentive, the Fire Department would like to consider Zoll’s offer of a five -year
payment plan, with zero interest, to purchase all nine (9) cardiac defibrillators/monitors
in FY 2018-19. Through this purchase, the City will be able to apply the full 30%
discount pricing to all its cardiac equipment through March 2019, generating a
significant total savings of $82,897.14 (see “Table A” below). Conversely, if the City
does not take advantage of this offer, the 30% discount will only apply for the purchase
of the first three (3) cardiac equipment units during this Fiscal Year. The remaining six
(6) cardiac units will be priced at a non-discounted cost after March 2019.
Purchase Order for Cardiac Defibrillators/Monitors
August 21, 2018
Page 3 of 4
The table below summarizes the total savings that the City will incur for purchasing all
nine (9) cardiac defibrillators/monitors during this Fiscal Year versus a multi-year
purchase:
Table A: County of Los Angeles Piggyback Pricing
Quantity & Cost of Monitors
to Purchase
(*pu = per unit cost)
3-Year Purchase 1-Year
Purchase
Total
Savings
(3-Year vs. 1-
Year)
Initial Replacement Plan
FY 2018-19:
(3) with 30% discount
@ $32,237.81/pu
96,713.43
FY 2019-20:*
(3) without 30% discount
@ $46,054/pu
138,162.00
FY 2020-21:*
(3) without 30% discount
@ $46,054/pu
138,162.00
Proposed
FY 2018-19:
(9) with 30% discount
@ $32,237.81/pu
290,140.29
Totals 373,037.43 290,140.29 82,897.14
*County of Los Angeles bulk pricing expires;
discounts may no longer apply during this period.
Zoll has supplied emergency medical equipment to the City in previous years and has
consistently provided timely and excellent service. Given their reputable background
and a payment incentive offer, it is the City’s best interest to use their services for this
purchase.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
Purchase Order for Cardiac Defibrillators/Monitors
August 21, 2018
Page 4 of 4
FISCAL IMPACT
In the Equipment Acquisition Fund, the total budget for this purchase is $300,000, with
funds allocated annually at $100,000 per Fiscal Year beginning in FY 2018 -19 through
FY 2020-21.
In referencing “Table A” above, the total cost for purchasing all nine (9) cardiac
defibrillators/monitors and necessary equipment for this Fiscal Year is $290,141. A five -
year payment plan, with zero interest, results to an annual payment of $58,030 for the
next five years starting in FY 2018-19. With $100,000 already allocated in the FY
2018-19 Equipment Acquisition Funds, sufficient funds are available for this period. The
remaining payments to be made annually will need to be re -budgeted in the succeeding
Fiscal Years.
RECOMMENDATION
It is recommended that the City Council approve a Purchase Order with Zoll Medical
Corporation to purchase nine (9) 12-lead electrocardiograph (“EKG”) cardiac
defibrillators/monitors to replace and enhance the Fire Department’s paramedic
equipment in an amount not to exceed $290,141.
Attachment: Los Angeles County Agreement with Zoll Medical Corporation
Attachment