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Approve a contract in an amount not to exceed $450,000 ($150,000 per fiscal year) with Occu-Med, Ltd. funded through the Risk Management Workers’ Compensation budget for occupational medicine and examination services September 1, 2025 through June 30, 2028; and Delegate authority to the County Administrator to execute the contract and any amendments within approved budget appropriations
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Director of Human Resources recommends that the Board of Supervisors approve a contract in an amount not to exceed $450,000 ($150,000 per fiscal year) with Occu-Med, Ltd. funded through the Risk Management Workers’ Compensation budget for occupational medicine and examination services September 1, 2025 through June 30, 2028; and Delegate authority to the County Administrator to execute the contract and any amendments within approved budget appropriations.
SUMMARY:
The current contract for occupational medicine and examination services with the current vendor, Kaiser Permanente, expires December 31, 2025. In anticipation of the contract expiration date, the County issued a Request for Proposals (RFP) on March 26, 2025. Four vendors responded, and after a thorough evaluation, Occu-Med, Ltd. was identified as the highest-ranked proposer. A Notice of Intent to Award was issued on June 17, 2025. The Director of Human Resources recommends that the Board of Supervisors approve a three-year contract with Occu-Med, Ltd, beginning September 1, 2025.
FINANCIAL IMPACT:
The estimated cost of the services is projected not to exceed $450,000 or $150,000 annually. This includes pre-employment and fitness for duty examinations, scheduling, and reviews, job functional analyses creation, periodic review of medical examination profiles specifically designed for a job classification, hearing conservation, and respirator fit testing evaluations. The first year of the contract is included in the department’s FY2025/26 Adopted Budget. The cost for future years will be included in the department’s annual Requested Budgets.
DISCUSSION:
Occu-Med, Ltd., previously provided occupational medicine and examination services for the County from July 2007 - June 2022. Since July 2022, Kaiser Permanente has been providing these services to the County based on a contract with another government agency, as allowed by purchasing guidelines. In March 2025, the County issued an RFP for occupational health and examination services, and the Notice of Intent to Award was sent to Occu-Med, Ltd on June 17, 2025, after evaluation of the four proposals submitted.
Highlights of the proposed occupational medicine and examination services contract with Occu-Med, Ltd., include:
• Timely scheduling and coordination of pre-employment physicals and fitness-for-duty evaluations
• Medical qualification determinations categorized as qualified, conditionally qualified, delayed, or disqualified, with supporting documentation
• Development and periodic review of job-specific medical examination profiles
• Hearing Conservation Program services and follow-up
• Physician oversight and evaluation for respirator fit testing and clearance
• Monthly reporting on examination outcomes and additional consultation as needed
• Support for appeals, administrative hearings, and individualized assessments related to medical disqualifications
ALTERNATIVES:
The Board of Supervisors may choose not to approve this contract. However, this is not recommended because the County is required to meet its legal obligation to ensure that an applicant can safely perform the essential job functions of a specific classification as provided by the ADA and FEHA, and Occu-Med, Ltd. was identified, through a competitive RFP process, as the highest ranked respondent.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed the contract to ensure it meets all legal and contractual requirements.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION