REPORT TO THE CITY COUNCIL
December 17, 2015
FROM: JEFF CARDELL, Director
Personnel Services Department
BY: MICHAEL PAYNE, Risk Manager
Personnel Services Department
SUBJECT
Title
Authorize the Personnel Services Director to execute an Agreement with Occu-Med to provide medical examinations and related medical and drug/alcohol testing services to the City.
Body
RECOMMENDATION
Staff recommends authorizing the Director of Personnel to execute an Agreement between the City of Fresno and Occu-Med to provide pre-employment medical examinations and related medical and drug testing services to the City of Fresno.
EXECUTIVE SUMMARY
On September 22, 2015 staff distributed a Request for Proposal (RFP) regarding pre-employment and specialized medical examination services to 12 local care providers. Notice of the availability of the RFP was published in the Fresno Business Journal. The four organizations that submitted proposals are: Concentra, F.I.R.M. Associates, Kaiser Permanente and Occu-Med.
The proposals were reviewed using the following criteria: cost, ability to meet service requirements, past performance and experience, conformance to the terms of the RFP, financial stability and other related information. It is staff’s recommendation that the City enter into a contract with Occu-Med for a three-year period effective January 1, 2016, based on their service guarantees, their business model which significantly reduces unproductive wait times, and a competitive price.
BACKGROUND
Every three years, the City distributes an RFP to local medical providers in order to obtain proposals for pre-employment and other mandatory employment-related medical examinations and drug/alcohol testing services. F.I.R.M. Associates, Inc. has been under contract to provide the above-noted services for the past six years.
The RFP was reviewed by twelve medical providers; four submitted proposals. Staff has concluded that each of the proposing firms is capable and qualified to provide the required services. While the proposal submitted by Occu-Med is not the least expensive, the proposal includes performance & service guarantees regarding timeliness of scheduling, examination & production of examination results that were not offered by any of the other proposers. They also operate a business model that is distinctly different from the other firms as it excludes urgent care services. This model best serves the City by significantly reducing unproductive waiting time associated with physicals and drug screens. In addition, Occu-Med is capable of providing mobile services when appropriate to meet the needs of the City.
RFP cost estimates were based on the number of anticipated medical services per year with the understanding that the actual amount may vary from year-to-year based on the amount of pre-employment physical examinations. The proposed fees from each firm represent an increase over the current rates ranging from 27% to 160%. Fees included in the current proposal are guaranteed for three years.
In considering the merits of the proposals, staff considered the level of service as a factor of significant importance. In addition, staff was also extremely conscious of the pricing of services & the expense of wait times. Lastly, staff considered the physical location of the medical facility and conducted a site visit of the facility selected to ensure that the facility was adequate and properly equipped. Staff believes it would be in the best interest of the City to make a change to a provider that eliminates the opportunity for unproductive waiting time. This factor alone is expected to result in savings which reduces the difference between the two lowest cost proposals.
Occu-Med currently provides comparable services to other public entities in the Valley who are satisfied with the service provided.
ENVIRONMENTAL FINDINGS
This item is not a project for the purposes of the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference was not implemented, but Occu-Med is a local business.
FISCAL IMPACT
The cost of pre-employment and other medical examinations are borne by the operating departments. The cost of the drug/alcohol testing is included in the budget of the Personnel Services Department. Entering into to this agreement will result in increased costs of approximately $29,000 for the balance of FY 2016, which will be absorbed in the respective department budgets. On an annual basis it is estimated that the cost of providing pre-employment medical examinations as well as other medical examination and drug/alcohol testing will be $146,805.25 allocated across City departments.
Attachments:
Medical Testing RFP
Occu-Med Proposal
Evaluation Committee Report
Listing of Proposers