E29946 - Approve an ordinance awarding a contract to Quest Diagnostics Clinical Laboratories, Inc. in the maximum contract amount of $750,000.00 for laboratory testing services for the Houston Health Department.
Specific Explanation:
The Director of the Houston Health Department and the Chief Procurement Officer recommend that City Council approve an ordinance awarding a three (3) year contract with two (2) one-year options to Quest Diagnostics Clinical Laboratories, Inc. in the maximum contract amount of $750,000.00 to provide laboratories services for the Houston Health Department. The Director of the Houston Health Department or the Chief Procurement Officer may terminate this contract at any time upon giving thirty (30) days notice to the contractor.
The scope of work requires the contractor to provide a wide range of testing services including Hematology/Clinical Chemistry/Microbiology specimen testing as well as testing for Tuberculosis. It is the City's objective to provide this valuable service to its citizenry and realize the benefits of this preemptive program.
This recommendation is made pursuant to subsection 252.022(a)(2) of the Texas Local Government Code, which provides that "a procurement necessary to preserve or protect the public health or safety of the municipality’s residents” is exempt from the competitive requirements.
M/WBE Subcontracting:
M/WBE zero percentage goal document approved by the Office of Business Opportunity.
Pay or Play Program:
The proposed contract requires compliance with the City's Pay or Play ordinance regarding health benefits for employees of City Contractors. In this case, Quest Diagnostics Clinical Laboratories provides health benefits to eligible employees in compliance with City policy.
Hire Houston First:
This procurement is exempt from the City's Hire Houston First Ordinance. Bids were not solicited because the department procured this services under the health and safety exemption pursuant to Section 252.022(a)(2) of the TX LGC.
Fiscal Note:
No Fiscal Note is required on grant items.
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Jerry Adams, Chief Procurement Officer Department Approval Authority
Finance/Strategic Procurement Division
Estimated Spending Authority:
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Department
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FY 2022
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Out Years
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Total
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Houston Health Department
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$550,000.00
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$200,000.00
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$750,000.00
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