Report Prepared by: Janet German, Management Analyst, Fire Dept.
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirement and Approval of a Professional Services Agreement with 1582 Medical Corporation for the Provision of Comprehensive Occupational Medical Physicals in an Amount not to Exceed $235,625 for a Three-Year Term
REPORT IN BRIEF
Considers waiving the competitive bidding requirement and approving a Professional Services Agreement with 1582 Medical Corporation for the purpose of providing comprehensive occupational medical physicals to fire suppression personnel in an amount not to exceed $235,625 for a three-year term.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving to waive the competitive bidding requirement due to the vendor being vetted through Merced Fire Department; and,
B. Approving a Professional Services Agreement with 1582 Medical Corporation in an amount not to exceed $235,625, for the purpose of providing comprehensive occupational medical physicals of fire suppression personnel through July 1, 2027; and,
C. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by staff; or,
2. Approve, subject to conditions other than as recommended by staff; or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future City Council meeting.
AUTHORITY
CCR §5192 Hazardous Waste Operations and Emergency Response
29 CFR 1910.120, Hazardous Waste Operations and Emergency Response
29 CFR 1910.134 Respiratory Protection
29 CFR 1910.95, Occupational Noise Exposure
29 CFR 1910.1030, Bloodborne Pathogens
NFPA 1582 Standard on Comprehensive Occupational Medical Program for Fire Departments
NFPA 1583 Standard on Health-Related Fitness Programs for Fire Department Members
Merced Fire Department Policy 1023 Wellness and Fitness Program
Charter of the City of Merced, Section 200
MMC 3.04.210 Exemptions from Competitive Bidding
CITY COUNCIL PRIORITIES
Public Safety as provided for in the 2024-25 Adopted Budget.
DISCUSSION
The Merced Fire Department (MFD) needs a vendor to continue providing on-site National Fire Protection Association (NFPA) 1582 medical physical examinations at one of its fire stations on a shift rotation basis, thereby eliminating logistical, fiscal, and scheduling concerns, all while improving/enhancing our employee physical examinations and increasing efficiencies.
Background
Firefighting is physically taxing, dangerous, stressful, and firefighters face extreme physical demands on the job with their greatest dangers being their safety and health.
Nearly half of all firefighter fatalities occur because of medical emergencies. The severe physical nature of firefighting and the harsh environmental conditions under which firefighters must perform their duties dramatically increases their susceptibility to stress and overexertion. Many of these deaths could potentially be avoided through early detection of underlying medical conditions by participation in an annual routine medical examination, which includes commonplace non-invasive medical testing.
The National Fire Protection Association (NFPA) is a non-profit organization, advocating for the elimination of death, injury, property, and economic loss due to fire, electrical and related hazards by the development of codes and standards. To reduce the risk of heart attacks and sudden cardiac arrest among firefighters, the NFPA has developed the NFPA 1582 guideline entitled “Standard on Medical Requirements for Fire Fighters and Information for Fire Department Physicians”. NFPA 1582 recommends a thorough examination to include vision testing, audiometry, pulmonary function testing, a complete blood count, urinalysis, and biochemical (blood) test battery be conducted on a periodic basis according to the age of the fire fighter.
The City of Merced Fire Department is not legally required to follow NFPA 1582’s guidelines/standards on medical requirement for persons performing firefighting tasks, however, the department has an obligation to its members to implement preventative measures to reduce the risk of on-the-job heart attacks and sudden cardiac arrest amongst its firefighters.
Therefore, like many other fire suppression agencies, to improve the health and wellness, and fitness of its firefighters, the department strives to protect its member’s health and wellness by using its interpretation of NFPA 1582 as a foundational starting point for its annual medical examinations. The Fire Chief has the authority to implement operational policies and procedures within the MFD, but policies surrounding NFPA 1582’s standard requires formal agreements (Memorandum of Understanding, Side Letters, Policies, etc.) with the City, Labor Group and City Council’s adoption of NFPA’s standards. Put simply, if a firefighter does not meet the NFPA 1582 standard, then they would not be able to continue performing as a firefighter, thereby jeopardizing their future firefighting career and livelihood.
Waiver of Competitive Bidding Process
MMC 3.04.210 - Exemptions from competitive bidding
Except as otherwise provided in this chapter, competitive bidding requirements for purchases in excess of twenty-five thousand dollars ($25,000.00), the "bidding threshold," may be waived with the approval of the city council. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment.
Any healthcare provider performing the pre-employment and annual medical/physical exams needs to be intimately familiar NFPA 1582 and other applicable standards and to be able to competently interpret and execute them. The provider should also understand the physiological demands of firefighting and the resulting health risks that research demonstrates firefighters are most prone to. The department needs to be confident in the provider’s ability to make informed, correct, decisions that may influence careers and impact its ability to safely provide life-saving service to Merced. Put simply, NFPA 1582’s medical guidelines for the physical examination are comprehensive and extensive. Additionally, as noted earlier, due to the intricacies of NFPA 1582, the medical provider needs intimate knowledge to properly apply the exam. Due to the esoteric guidelines, it becomes readily apparent that a specialist is needed to perform the comprehensive medical examinations.
Staff has obtained two informal quotes to provide a competitive market reference as follows:
Vendor #1 Quote: 1582 Medical Corporation $ 905.49/exam
Vendor #2 Quote: Professional Health Services $1,306.85/exam
The informal second quote from Professional Health Services has been included as Attachment 2. The quote from Professional Health Services is approximately $401.36/exam more costly than utilizing the services of 1582 Medical Corporation. Staff is requesting to continue waiving the competitive bidding process due to the financial savings and uniqueness of 1582’s capabilities to meet the City’s requirements for on-site examinations. Additionally, since 1582 and its affiliates have continuously provided occupational medical examinations since 2019, they possess extensive and important baseline medical records of our firefighter’s medical histories.
Prior to using the services of Gaetke and/or 1582, LLC, the fire department utilized local providers, which required employees to go offsite to a physician’s office in Merced, which caused a minimum of three employee’s to be put out of service or on delayed service when responding to emergency calls. Additionally, the physician’s office did not possess the resources to offer all the needed services at one location and they were not specialized in providing medical examinations for firefighters.
1582’s Medical Corporation’s Estimated Cost:
Three Year Term $235,625.00
Average Estimated Expenditure $ 78,541.67
1582 Extended Panel Medical Exam Cost
per Employee Before Onsite Fee $ 675.00
Optional Additional Services - Ultrasound Screening
Panel Fee per Employee Before Onsite Fee $ 200.00
Exam Fee per Employee Before Onsite Fee for
Performing Service in Merced $ 875.00
Onsite Fee for Performing Service in Merced $ 2,500.00
Number of Scheduled Medical Exams 82.00
Number of Unscheduled Medical Exams, due
To Budgeted, but Vacant Positions 4.00
Estimated Year 1 Cost:
Exam Cost per Employee Before Onsite Fee $ 875.00
# of Fire Suppression Personnel x 82.00
Cost Before Onsite Fee for Performing
Service in Merced $ 71,750.00
On Site Exam Fee for Performing Service in Merced $ 2,500.00
Total Estimated Year 1 Cost $ 74,250.00
Total Estimated Year 1 Cost/
Per Employee $ 905.49
Note: Annual costs are unknown due to the employee turnover in the department directly affecting the number of physicals which will be needed. Currently, there are 4 vacant Fire Suppressions positions, these employees will need medical exams and it is unknown how many other positions will become vacant throughout each year. Therefore, we are estimating a total cost of $78,541.67 for the term. Should additional funds be required, we will request an amendment to the contract and obtain City Council Member approval. The MFD will encumber $78,542.00 for Year 1 of the contract.
In summary, the recruitment and retention of the best qualified and physically fit workforce is one of the top priorities of the City of Merced. The use of comprehensive medical exams performed by a specialized vendor (1582 Medical Corporation) for physically demanding occupations such as firefighting is in the best interest of the city and its employees.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed. Funding is available within the FY2024-2025 approved budget.
ATTACHMENTS
1. Agreement for Professional Services / Quote - 1582 Medical Corporation
2. Informal Quote from - Professional Health Services