LA County Board

16. Central Fill Pharmacy and Automation System Sole Source Agreement\nAmendment\nRecommendation: Authorize the Director of Health Services to execute an\namendment to a sole source agreement (Current Agreement) with Cardinal\nHealth Pharmacy Services, LLC, (Cardinal), to extend the term for a period not\nto exceed one year through April 30, 2026, with an estimated Maximum\nContract Amount (MCA) of $5,329,685 for the full extension period, for the\ncontinued provision of a Central Fill Pharmacy and Automation System for the\nDepartment of Health Services’ outpatient pharmacies, and effect termination of\nthe Current Agreement upon execution of a superseding successor agreement\nwith Cardinal (Successor Agreement); and authorize the Director to take the\nfollowing actions: (Department of Health Services) APPROVE\nExecute a successor agreement with Cardinal, effective upon execution\nby May 1, 2026 through April 30, 2028, with two one-year extension\noptions through April 30, 2030, with an estimated MCA of $31,500,000,\nwhich includes the estimated MCA for the full extension period of the\nCurrent Agreement plus the Successor Agreement, and terms that may\nd i t f C t t d d t t lt i l di b t t li it d\ndeviate from County standard contractual terms including, but not limited\nto, terms involving indemnification, subject to the availability of adequate\nfunding; and\nExecute amendments to the Current Agreement and Successor\nAgreement in accordance with the respective terms of each agreement\nto add, delete and/or modify terms and conditions as required by law,\nCounty policy or the Board, modify the agreements, including scope of\nservices, for operational efficiencies and to address changes in service\nneeds or requirements, with corresponding changes to the pricing terms,\nif applicable, incorporate and/or revise non-substantive and\nadministrative provisions, increase and otherwise adjust rates and fees\nby up to 10% annually to account for changes in technology,\nunanticipated work, including unexpected increases in the volume of\nprescription refills and direct patient mail delivery costs, and to remain\ncompetitive with market rates, with corresponding adjustments to the\nMCA, exercise the extension options, if any, and effect termination of\neach agreement. (25-1745)