Report Prepared by: Janet German, Management Analyst, Fire Department
Title
SUBJECT: Award of Bid and Approval of Contract to 1582 Medical Corporation, Inc. for a Three and 1/3 Year Term of $141,697 Annually for a Total of $467,600 for Annual Health, Wellness, and Fitness Evaluations
REPORT IN BRIEF
Considers awarding a contract to 1582 Medical Corporation, Inc. for a three and 1/3 year term of $141,697 annually for a total of $467,600 for annual health, wellness, and fitness evaluations.
RECOMMENDATION
City Council - Adopt a motion:
A. Awarding a contract with 1582 Medical Corporation, Inc. for the four-year term of September 14, 2026 to December 31, 2029, in the amount of $141,697 annually for three and 1/3 years for a total of $467,600 to perform annual health, wellness, and fitness evaluations; and,
B. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to modifications as conditioned by City Council; or,
3. Refer to staff for reconsideration of specific items; or,
4. Deny.
AUTHORITY
Charter of the City of Merced, Section 200, et seq.
Services with an estimated value greater than $41,000 are made by written contract in accordance with Merced Municipal Code, Title 3 - Revenue and Finance, Chapter 3.04.
CITY COUNCIL PRIORITIES
As provided for in the 2026-27 Adopted Budget.
DISCUSSION
Summary
The Merced Fire Department (MFD) issued a Request for Proposal (RFP) for NFPA 1582-compliant comprehensive occupational medical examinations for its fire suppression personnel. Four proposals were received and evaluated by the MFD’s Deputy Chief and EMS Battalion Chief using a weighted scoring matrix. Following the evaluation, staff recommends awarding the contract to 1582 Medical Corporation of Sparks, Nevada, in an amount not to exceed $467,600 over a three and 1/3 year term.
Based on the evaluation criteria established in the RFP, 1582 Medical Corporation received the highest overall score among the proposers. The firm demonstrated specialized experience in NFPA 1582 compliance, an on-site mobile medical unit deployment model, a process for tracking examination requirements, and a competitive per-person cost. These factors contributed to the firm receiving the highest overall score under the RFP’s weighted evaluation criteria.
Background
The MFD is required to conduct comprehensive occupational medical examinations for all fire suppression personnel in compliance with NFPA 1582, Standard on Comprehensive Occupational Medical Program for Fire Departments. These examinations are essential to ensuring that firefighters meet the physical and medical standards required for the safe performance of fire suppression duties.
The City has previously contracted with 1582 Medical Corporation for occupational medical examination services. The current procurement, however, was conducted through a formal competitive RFP process. Four proposals were received and evaluated using the criteria established in the RFP. Accordingly, the recommended award is based on the results of the current competitive evaluation and the proposer’s ability to meet the City’s stated requirements.
Proposals were evaluated and weighted based on criteria including, but not necessarily limited to, experience, location, process for tracking examination requirements, and cost. The evaluators selected 1582 Medical Corporation as the highest-scoring proposer under the established evaluation criteria.
Following the evaluation, staff requested that 1582 Medical Corporation provide a scope of work addressing the City’s examination requirements for a four-year period, as detailed in the RFP. The proposed fees include the core services necessary to meet the City’s current occupational medical examination requirements, as well as additional optional services that may be utilized if the City elects to expand the scope of services during the contract term.
The total proposed cost, assuming all optional services are utilized, is $467,600 over three and 1/3 years, or approximately $141,697 annually. The anticipated annual cost for the core services required under the current scope is approximately $69,875, which is consistent with the amount budgeted annually for these services. The annual cost would increase above the budgeted amount only if the City elects to utilize additional optional services.
For procurement history purposes, the City previously entered into an agreement for these services in 2019 and subsequently entered into an agreement with 1582 Medical Corporation in 2024. Those prior agreements are separate from the current competitive procurement and are not the basis for the recommended award.
IMPACT ON CITY RESOURCES
The proposed Fiscal Year 2026/27 budget includes $69,875 to cover the anticipated cost of the required occupational medical examinations under the core scope of services. The contract's total proposed annualized amount of approximately $141,697 includes optional services that are not anticipated to be required as part of the City's current examination program. Accordingly, the City expects to remain within the $69,875 annual budget allocation based on the current scope of required services. Any expenditure above the annual budgeted amount would occur only if the City elects to expand the scope of services and utilize one or more of the optional services identified in the proposal. Any such additional expenditures would be subject to available appropriations and applicable City purchasing and budget procedures. Future appropriations for the anticipated annual cost of the core services will be incorporated into the City's annual budget process.
ATTACHMENTS
1. Contract