Resolution approving Amendment No. 2 between the City, acting by and through the Office of Contract Administration, and Vitalant for blood and blood products for the Department of Public Health, extending the contract by five years for a total term of 10 years from October 1, 2021, through September 30, 2031, and increasing the contract amount by $18,259,000 for a total not to exceed amount of $28,249,000 effective upon approval of this Resolution; and to authorize the Office of Contract Administration to enter into amendments or modifications to the contract that do not materially increase the obligations or liabilities to the City and are necessary to effectuate the purposes of the contract or this Resolution.

This resolution approves Amendment No. 2 to a critical contract between the City (through the Office of Contract Administration and Department of Public Health) and Vitalant for the provision of blood and blood products. This amendment significantly extends the contract term and increases its financial scope.

Key Financial Details: The contract term is extended by five years, resulting in a total term of 10 years from October 1, 2021, through September 30, 2031. The contract amount is increased by $18,259,000, bringing the new total not-to-exceed amount to $28,249,000.

Service Importance & Justification: These blood and blood products are essential for the Department of Public Health, particularly for Zuckerberg San Francisco General Hospital (ZSFGH), which operates as a Level 1 trauma center. The immediate availability of these products is crucial for emergency care, surgery, and chronic disease management, often being life-saving for critically injured patients. Vitalant was selected due to its unique geographical proximity in Brisbane, enabling guaranteed emergent blood product shipments within one hour, a critical requirement for ZSFGH.

Negotiated Savings: The Office of Contract Administration successfully negotiated a more favorable pricing structure, reducing Vitalant's initial proposed annual price increases. This negotiation is projected to save the City approximately $1,037,000 over the five-year extension period.

Contract Modifications: Beyond the extension and cost increase, the amendment also updates several contractual clauses. These include changing the invoice frequency from monthly to semi-monthly, extending the City's termination for convenience notice period from 120 to 180 days, and introducing specific Quality Goals and Measures. These measures require Vitalant to use reasonable efforts to achieve a 95% fill rate for Red Blood Cells and Platelets and to pack and ship STAT blood products within one hour 95% of the time.