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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