Gloria Molina
First District
Yvonne Brathwaite
Burke
Second District
Zev Yaroslavsky
Third District
Don Knabe
Fourth District
Michael D. Antonovich
Fifth District
FRED LEAF, Acting Director
COUNTY
OF LOS ANGELES
DEPARTMENT OF HEALTH
SERVICES
313 N. Figueroa, Los
Angeles, CA 90012
(213) 240-8101
November 21, 2001
The
Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, California 90012
Dear Supervisors:
AMENDMENT NUMBER ONE TO COUNTY AGREEMENT NUMBER 72190 WITH QUADRAMED CORPORATION AND THE COMPUCARE COMPANY FOR TURNKEY HEALTHCARE INFORMATION SYSTEMS (All Districts) (3 Votes)
CIO RECOMMENDATION: APPROVE [ ] APPROVE WITH MODIFICATION [ ] DISAPPROVE [ ]
IT IS RECOMMENDED THAT YOUR BOARD:
Approve and instruct the Acting Director of Health Services, or his designee, to sign, following the signatures by authorized representatives of QuadraMed Corporation (QMDC) and The Compucare Company (Compucare), Amendment Number One, substantially similar to Exhibit I, to Agreement Number 72190 for Harbor-UCLA Medical Center (HUMC), Olive View-UCLA Medical Center (OVUMC), and Los Angeles County + University of Southern California Medical Center (LAC+USCMC), to include Communications Network rates for the period January 1, 2002 through December 31, 2003, to add functional requirements for two Application Software modules, to change certain Third Party Software, to change certain acceptance testing, to transfer funds among certain pools of funds for professional services and goods, to retroactively correct inadvertent errors made in Change Notices 001 and 002, both dated September 23, 1999, and to make various other changes to the Agreement.
PURPOSE OF RECOMMENDED ACTION:
In approving this recommended action, the Board is authorizing the Acting Director of Health Services, or his designee, to sign an amendment to the current agreement with QMDC and Compucare that will:
1. include Communications Network rates for the period January 1, 2002 through December 31, 2003,
2. add functional requirements for the General Ledger and Accounts Payable Application Software modules,
3. change certain Third Party Software,
4. change certain acceptance testing and related payments,
5. transfer funds among certain pools of funds for professional services and goods,
6. retroactively correct inadvertent errors made in Change Notice 001 [(Attachment B (Schedule of System Hardware, System Software, Services and Other Third Party Software) to Exhibit A (Statement of Work) and Exhibit B (Schedule of Payments)], dated September 23, 1999, and in Change Notice 002 [Schedule II (Maintenance Fee Schedule) of Exhibit D (Schedule of Maintenance)], dated September 23, 1999, which relate to the specified System Software to be provided and the maintenance services rates for System Hardware and System Software, and
7. make various other changes to the Agreement.
JUSTIFICATION:
Board approval of this amendment is recommended to ensure uninterrupted, continuous Communications Network work at HUMC, OVUMC, and LAC+USCMC. Communications Network work in the agreement is provided by L Tech Network Services, Inc., as a subcontractor of Compucare and its parent corporation, QMDC. The Communications Network rates are slated to expire on December 31, 2001. The amendment includes Communications Network rates for the period January 1, 2002 through December 31, 2003, adds functional requirements for two Application Software modules, changes certain Third Party Software, changes certain acceptance testing, transfers funds among certain pools of funds for professional services and goods, retroactively corrects inadvertent errors in Change Notices 001and 002, both dated September 23, 1999, and makes various other changes to the Agreement.
The inadvertent errors made in Change Notice 002 resulted in an overpayment of $2,857.61 for Operating Software maintenance services. QMDC has agreed to issue a credit for the overpayment and we are in the process of obtaining it.
FISCAL IMPACT/FINANCING:
Approval of this amendment will not impact net County cost.
Funding for this agreement is included in the FY 2001-2002 Adopted Budget and will be requested as a continuing appropriation in future fiscal years.
FACTS AND PROVISIONS/LEGAL REQUIREMENTS:
On August 23, 1989, the Purchasing Agent approved Agreement Number A51549 with Compucare for the acquisition and maintenance of a turnkey HIS, including, but not limited to, clinical modules and hardware, for HUMC and OVUMC. This agreement was modified on 20 occasions by amendments. Amendment Number 19, approved by the Board on June 15, 1999, added QMDC as a contractor under the agreement to be held jointly and severally liable responsible for any and all of the obligations, responsibilities and liabilities of Compucare under that agreement.
On May 7, 1992, the Purchasing Agent approved Agreement Number A53813 for the acquisition and maintenance of a turnkey HIS, including but not limited to, clinical modules and hardware for LAC+USCMC. This agreement was modified on 11 occasions by amendments. Amendment Number 11, approved by the Board on June 15, 1999, added QMDC as a contractor under the agreement to be held jointly and severally liable responsible for any and all of the obligations, responsibilities and liabilities of Compucare under that agreement.
On June 29, 1999, the Board approved successor County Agreement Number 72190 with Compucare and QMDC for the turnkey HIS consolidating the two existing agreements into a single agreement which includes HUMC and OVUMC and LAC+USCMC. This action is consistent with the Board's direction to consolidate and reduce the number of agreements with a single vendor, when possible. This agreement enhanced Compucare's Affinity clinical software modules, provided for hardware and software upgrades, provided communications network hardware, software and services, and other professional services, and continued maintenance on the hardware and software to support ongoing operations of the existing HIS at HUMC, OVUMC, and LAC+USCMC.
The proposed amendment will continue the Communications Network work to support the ongoing operations of HIS currently in use at HUMC, OVUMC, and LAC+USCMC. The amendment will also correct an oversight in the termination date of the Sigma Pool Dollars used for Sigma Software maintenance services to be consistent with the termination date (June 30, 2001) of the subcontract with EXM Inc., which provided such services under a subcontract with Compucare and QMDC.
Applicable new standard County contract language has been added in this proposed Amendment Number One.
The County's Chief Information Officer concurs with the Department's recommendation.
Sidley Austin Brown & Wood (outside counsel) has reviewed the attached amendment (Exhibit I) and recommends Board approval. The amendment has also been reviewed and approved as to form by County Counsel. Also, the County's Internal Services Department, Purchasing and Central Services, has reviewed and approved the amendment.
Attachment A provides additional information.
CONTRACTING PROCESS:
DHS did not advertise this proposed Amendment Number One on the Office of Small Business' Countywide Web Site as a contracting opportunity because it is for the continued provision of technical services which the current contractor is uniquely qualified to perform. To select a new contractor at this time would be extremely costly to the County.
IMPACT ON CURRENT SERVICES (OR PROJECTS):
The Board's approval of the recommended amendment will continue the Communications Network work to support the ongoing operations of HIS currently in use at HUMC, OVUMC, and LAC+USCMC.
When approved, this Department requires three signed copies of the Board's action.
Respectfully submitted, Reviewed by:
Fred Leaf Jon
W. Fullinwider
Acting Director of Health Services Chief
Information Officer
(See Attached Analysis)
MF:rdt
Attachments
c: Chief Administrative Officer
County Counsel
Executive Officer, Board of Supervisors
Director of Internal Services
BLET/CD1462.DMS
ATTACHMENT A
SUMMARY OF AMENDMENT
TYPE OF SERVICE:
Under the agreement amendment, The Compucare Company and QuadraMed Corporation will continue to provide a turnkey Healthcare Information System (HIS) at Harbor-UCLA Medical Center (HUMC), Olive View-UCLA Medical Center (OVUMC), and Los Angeles County + University of Southern California Medical Center (LAC+USCMC).
AGENCY ADDRESS AND CONTACT PERSON:
The Compucare Company, A QuadraMed
Company
7555 Irvine Center Drive, Suite 200
Irvine, California 92618
Attention: Sandra K. Williams, Vice
President
Telephone: (949) 754-6047
TERM:
Except as otherwise specified in the amendment, the amendment will be effective upon Board approval and will remain in full force and effect during the remaining term of the agreement through December 31, 2003.
FINANCIAL INFORMATION:
Funding is included in the approved Fiscal Year (FY) 2001-2002 DHS Budget, and will be requested as a continuing appropriation in future years.
FACILITIES TO BE SERVED:
HUMC, OVUMC, and LAC+USCMC.
DESIGNATED ACCOUNTABLE FOR PROGRAM EVALUATION:
Zina L. Glodney, Enterprise Project Director
APPROVALS:
Information Systems Branch: Zina L. Glodney, Chief Information Officer
County Chief Information Officer: Jon W. Fullinwider, Chief Information Officer
Contracts and Grants Division: Riley L. Austin, Acting Chief
County Counsel (approval as to form): James Kashian, Principal Deputy County Counsel
