From
Lisa Norris, Human Resources Director
Title
Price agreement with Concentra Medical Centers for city-wide drug testing and pre-employment screening services for all departments except Fire for a three-year contract effective November 1, 2015 to October 31, 2018 in an estimated annual amount up to $77,951 per year, totaling $233,853 over the three-year period. This agreement provides guaranteed pricing for two one-year renewal periods (years four and five) for an estimated annual amount up to $79,454 beginning November 1, 2018 and up to $80,988 beginning November 1, 2019 if such extensions are exercised to total an estimated five-year contract value of $394,294; and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
Pre-employment medical exams and drug and alcohol testing are required by city policy following a conditional job offer and are a standard part of the hiring process. Further, the U.S. Department of Transportation and Federal Transit Administration (FTA requires drug testing of all persons hired and/or promoted into positions requiring a commercial driver’s license (CDL) and all persons hired/promoted in the transit division (FTA), as well as random testing for these persons impacted by DOT or FTA regulations once hired. Finally, city policy authorizes random testing of persons in safety-sensitive positions, persons in their introductory period with the city, or those that fall under provisions of "reasonable suspicion."
The city had a contract with CareNow for drug testing and pre-employment testing since 2005 which expired October 31, 2015 after executing all contract renewal options. A bid was issued via Bid Notice #15152 and was viewed by 30 vendors. There was one Grand Prairie vendor available for this commodity. Five bids were received as shown on the attachment - City Wide Occupational Health Vendor Comparison and Scoring Summary. These bids were evaluated based upon "best value" criteria as listed in the specification, including service, experience, fees, references, location and staff as noted in the scoring summary of the attachment. While several vendors provided a lower cost overall, they also were unable to provide or did not quote on various requested testing items utilized by the city. While not required, the city desires one vendor to provide all tests to minimize disruption and maintain an efficient process for applicant/candidate and department. Several vendors had a lower 5-year cost overall, but failed to quote on various tests which would have required the city to split the award and could lead to confusion and delays by having to send those needing testing to different facilities to complete various pre-employment tests. Of the two vendors, CareNow and Concentra, demonstrating the greatest ability to perform most of the tests requested. Concentra was selected as the vendor of choice.
The Finance and Government Committee was briefed at the October 13, 2015 meeting on this item.
Financial Consideration
It is difficult to predict the actual number of each type of test that may be performed during the year, since this is totally dependent upon the number of people hired, transferred, promoted, and/or type of tests performed in any given year due to turnover, authorized positions, types of positions hired, and random tests given. As a result, while we have projected the contract to be up to $77,951 in each of the first three years of this contract and within the current fiscal year, based on an estimate of types and numbers of tests projected, the amount actually spent could be much less and averages around $50,000 annually. Last year, we spent around $51,000. Human Resources FY 2015/2016 General Fund budget (211010-61420) for Drug Testing is appropriated at $50,000, which is beneath the projected annualized amount of this contract. Similar to how we manage the Risk Fund, the city will only spend up to the appropriated amount of $50,000 this fiscal year. Should additional funding be needed as we progress through the year and determine actual expenses, we will coordinate with Budget and amend the Human Resources budget through appropriate processes for such additional needs such as contingency transfer, etc. Additionally, if warranted we will appropriate additional money in future year's budgets to accommodate the trend in this area, if any and to fund the projected costs.