SR 04-26-2016 3H
City Council
Report
City Council Meeting: April 26, 2016
Agenda Item: 3.H
To: Mayor and City Council
From: Donna Peter, Director, Human Resources Department
Subject: Award Agreement for Commercial Driver Medical Testing Services
Recommended Action
Staff recommends that the City Council:
1. Award Request for Proposal (RFP) #61 to the Southern California Permanente
Medical Group, a California-based company, for commercial driver medical
testing services; and
2. Authorize the City Manager to negotiate and execute an Agreement with
Southern California Permanente Medical Group in an amount not to exceed
$250,000 over a five-year period with future funding contingent on Council
budget approval.
Executive Summary
Staff recently solicited proposals from local medical providers for commercial driver
medical testing services. These ex
drivers (e.g., Motor Coach Operators, Heavy Equipment Operators, etc.) meet the
medical standards of the United States Department of Transportation for operating a
commercial vehicle. Southern California Permanente Medical Group (Kaiser
Permanente) provided the only response to the proposal. In light of this, staff verified
the RFP was distributed to qualified firms and sought feedback on the limited response.
This effort satisfied staff that reissuing the RFP would not attract additional proposals.
the RFP and offered competitive pricing. As such, staff recommends the City pursue a
five-year contract with Kaiser Permanente for an amount not to exceed $250,000.
-Insurance
Fund which is financed with contributions from all City Departments.
Background
The City employs over 400 commercial drivers in a variety of jobs ranging from bus
drivers to sanitation truck operators and street sweepers. These drivers must be
of license issuance and every two years thereafter for as long as the positions require a
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Commercial Driver License. Westchester Medical Group (Westchester) has performed
Testing Program (OMTP) provider.
Discussion
covers commercial driver medical testing, as well as pre-employment
physicals, drug and alcohol screening, vaccinations, and other safety-related testing. In
the spring of 2015, the City solicited proposals for OMTP provider services and
subsequently awarded a new five-year contract to Westchester on July 14, 2015. During
the selection process, Human Resources received feedback from City department
representatives on the need to find a second medical provider closer to Santa Monica to
miles away (El Segundo, CA), can take over an hour in each direction to access during
peak commute times. Most departments are able to mitigate traffic delays of this nature
by scheduling OMTP testing during non-peak commute windows. This presents
challenges, however, for City operations like the Big Blue Bus (BBB) and the Resource
Recovery and Recycling (RRR) Division of the Public Works Department. Both have
limited scheduling flexibility and employ large numbers of commercial drivers. These
factors, coupled with the frequency of testing (i.e., at least every two years), require
BBB and RRR to regularly schedule commercial driver medical exams during peak
commute windows and incur the resulting overtime costs and/or lost productivity. These
arguments persuaded Human Resources to issue a follow-up OMTP RFP for
commercial driver medical testing services only.
Vendor/Consultant Selection
On October 29, 2015, the City issued an RFP for commercial driver fitness medical
advertised in the Santa Monica Daily Press in accordance with City Charter and
Municipal Code provisions. A total of 145 vendors were notified of the RFP, eight
downloaded the RFP, and one firm responded.
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Upon receiving only a single bid, staff verified the RFP was distributed to qualified firms
and surveyed vendors for feedback. No vendors responded to the survey, but based on
additional responses. Staff subsequently verified that Kaiser Permanente met the
minimum requirements contained in the RFP. Specifically, they possess the requisite
experience to perform commercial driver medical exams and come highly
recommended by their references. Further, the facility designated to carry out the
exams is located in the Culver City/Marina Del Rey area (roughly three miles closer
-site parking. Finally, Kaiser
schedule is flat throughout the five-year contract period and less costly than fees
charged by Westchester). Also, as an added benefit, the City has the option of using
may create opportunities for departments to schedule exams on the way to or from
work.
Consequently, staff recommends the City pursue a five-year agreement with Kaiser
Permanente for a total amount not to exceed $250,000. Once the contract is in place,
City departments subject to commercial driver medical testing requirements would have
the option of using Kaiser Permanente or Westchester for these exams. Westchester
driver medical testing required as part of pre-employment physicals.
Financial Impacts and Budget Actions
The agreement to be awarded to Southern California Permanente Medical Group
(Kaiser Permanente) is for an amount not to exceed $250,000. Funds of $8,500 are
available in the FY 2015-16 budget in the Finance Department. The agreement will be
charged to account 59235.555060. Future year funding is contingent on Council budget
approval.
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Prepared By:
Donna Peter, Director
Approved Forwarded to Council
Attachments:
A. July 14, 2015 Staff Report (web link)
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Reference:
Agreement
No.
10294 (CCS)