SR 06-13-2017 3M
Ci ty Council
Report
City Council Meeting : June 13, 2017
Agenda Item: 3.M
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To: Mayor and City Council
From: Donna Peter, Director , Human Resources Department
Subject: Second Modification of Contract for Administration of Professional Medical
Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a second modification to agreement #10090 in the amount of $55,000 with
Barry W. Leeder, Inc. dba Collections Plus, a California based company, for
professional medical services. This will result in a five year amended agr eement with a
total amount not to exceed $205,847 with future year funding contingent on Council
budget approval.
Executive Summary
The City requires professional services to conduct drug and alcohol testing as required
under Federal mandate and City p olicy. A one year amendment to the existing contract
with Collection Plus to increase the amount by $55,000 , for a total amount not to exceed
$205,847, is recommended in order to continue conducting required drug and alcohol
testing for employees who are subject to such testing according to the Drug -Free
Workplace Act, Federal Motor Carrier Safety Administration (FMCSA) and Federal
Transit Authority (FTA). Testing services include pre -employment testing, federally
required random testing, follow -up testin g, and testing to maintain commercial driver’s
license eligibility. The current contract will expire on June 30, as will the contract
amount.
Background
In 2013, the Human Resources Department conducted a Request for Proposal (RFP)
for drug and alcohol testing services. Collection Plus was one of the providers selected
based on its qualifications, fees, references and onsite testing capabilities. A three -year
agreement with Collection Plus was entered into on August 27, 2013 for an amount not
to excee d $69,000. Due to the City’s increase in hiring and the consequent need to
conduct a higher volume of drug and alcohol testing, in June 2015 staff requested an
amendment to the original agreement in the amount of $81,000 and to extend the
contract through June 30, 2017. The requests were approved by Council on June 23,
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2015. Staff is requesting an additional one -year extension of the amended contract,
which currently has a termination date of June 30, 2017. The second modification
would extend the contr act through June 30, 2018 , and increase the amount by $55,000.
This amount reflects the increase in the amount of drug and alcohol testing conducted,
12 months of service at the average cost of $3,200 per month at the current rate, and a
10 -11% contingenc y. As of June 2017, the contract amount will be exhausted due to an
increased number of employees who are subject to drug and alcohol testing under the
Drug -Free Workplace Act, Federal Motor Carrier Safety Administration (FMCSA) and
Federal Transit Author ity (FTA).
Discussion
The RFP for professional services was published using the City’s on -line bidding site.
Additionally, six facilities were notified by email that an RFP was issued. One written
proposal was received, reviewed and scored by a selec tion team comprised of staff
from the Big Blue Bus, Human Resources , and Public Works Departments. On -site
drug and alcohol testing is highly specialized so therefore it can be difficult to identify
multiple providers. Selection criteria included the fir m’s qualifications, experience, fees,
references, services, ability to meet the City’s needs with regard to on -site testing,
availability , and hours of operation.
Based on the comprehensive review by the committee, Collection Plus was
unanimously recommen ded for drug and alcohol testing services. Selection was based
on professional quality of the organization, commitment to customer service, willingness
to customize services required by the City of Santa Monica , and pricing for the majority
of services ne eded.
This will be the final modification for the Professional Services Agreement with
Collection Plus. Upon the termination of the second modification, the City will begin the
competitive pro cess and actively search for competitive on -site drug and alc ohol testing
companies.
Financial Impacts and Budget Actions
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The modification to be awarded to Barry W. Leeder, Inc. dba Collections Plus is
$55,000 for an amended agreement total not to exceed $205,847. Funds are included
in the FY 2017 -201 9 Proposed Biennial Budget in various departments. Future year
funding is contingent on Council budget approval.
Prepared By: Tatiana Morrison, Executive Administrative Assistant
Approved
Forwarded to Council
Attachments:
A. Collection Plus Oaks 5.2017
REFERENCE:
Modified Agreement
No. 10090
(CCS)