District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill PR25-0748 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~ENROLLED ORIGINAL~~
	1	+	UMC
2	2
3	3
4	4
5	5
6		-	1
7		-	A RESOLUTION
8	6
9		-	25-496
	7	+	1310 SOUTHERN AVENUE, SE WASHINGTON, D.C. 20032 -4623 • 202-574-6000 • WWW.UNITED-MEDICALCENTER.COM
	8	+	May 1, 2024
10	9
11		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
	10	+	The Honorable Phil Mendelson
	11	+	Chairman, Council of the District of Columbia
	12	+	John A. Wilson Building
	13	+	1350 Pennsylvania Avenue, N.W.
	14	+	Suite 504
	15	+	Washington, DC 20004
12	16
13		-	~~May 7,~~ ~~2024~~
	17	+	Dear Chairman Mendelson:
14	18
	19	+	Enclosed for consideration and approval by the Council of the District of Columbia is
	20	+	Contract No. NFPHC-OPS-23-C-00059 between the Not-for-Profit Hospital Corporation
	21	+	and Morrison Management Specialists, Inc., Approval and Payment Authorization
	22	+	Emergency Act of 2024, and Contract No. NFPHC-OPS-23-C-00059 between the Not-
	23	+	for-Profit Hospital Corporation and Morrison Management Specialists, Inc. Approval and
	24	+	Payment Authorization Emergency Declaration Resolution of 2024, for the provision of
	25	+	Food and Nutrition Management services (“Contract”).
15	26
16		-	To declare the existence of an emergency with respect to the need to approve Contract No.
17		-	NFPHC-OPS-23-C-00059 between the Not-for-Profit Hospital Corporation, commonly
18		-	known as United Medical Center, and Morrison Management Specialists, Inc., to
19		-	provider food and nutrition management services, and to authorize payment for the
20		-	services received and to be received under the contract.
	27	+	Council action is necessary to approve the proposed, definitized twelve (12) month
	28	+	retroactive Contract base year in the amount of $1,527,560.00 (August 1, 2023 – July 31,
	29	+	2024), which includes the initial seven (7) month base period letter contract in the
	30	+	amount of $891,076.67 (August 1, 2023 – February 29, 2024). Please note that despite
	31	+	the good faith and timely efforts of the parties, attempts to negotiate earlier drafts of the
	32	+	letter contract (at 90 days and 180 days), were unsuccessful largely due to the hospital’s
	33	+	looming wind down and eventual closure. Fluctuating patient and staff volumes, higher
	34	+	vendor costs even for incumbents, and UMC’s fiscal limitations made service level and
	35	+	associated cost determinations extremely difficult. Further exacerbating these issues and
	36	+	delaying negotiations was the major leadership change Morrison experienced during this
	37	+	period.
21	38
22		-	RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
23		-	resolution may be cited as the “Contract No. NFPHC-OPS-23-C-00059 between the Not-for-
24		-	Profit Hospital Corporation and Morrison Management Specialists, Inc., Approval and Payment
25		-	Authorization Emergency Declaration Resolution of 2024”.
26		-
27		-	Sec. 2. (a) There exists an immediate need to approve Contract No. NFPHC-OPS-23-C-
28		-	00059 (“Contract”) between the Not-for-Profit Hospital Corporation (“Hospital”) and Morrison
29		-	Management Specialists, Inc. (“Morrison”) to provide food and nutrition management services to
30		-	the Hospital and to authorize payment for the services received and to be received under this
31		-	Contract.
32		-	(b) As the Hospital moves rapidly toward closure, sole sourcing to incumbent vendors
33		-	wherever possible and within fiscal limitations has become the preferred approach to stabilizing
34		-	critical services without disrupting patient care. Accordingly, when the prior engagement for
35		-	these services approached expiration in July 2023, the Hospital selected the incumbent vendor,
36		-	Morrison, as its preferred vendor for a new contract that would likely continue until the facility
37		-	closes in early 2025.
38		-	(c) To avoid a lapse in these critical services while also providing additional time for
39		-	detailed negotiations of a new 12-month base contract, the Hospital sought to quickly execute a
40		-	letter contract with Morrison. Despite the good faith and timely efforts of both parties, attempts
41		-	to finalize early drafts of the letter contract were unsuccessful largely due to the Hospital’s
42		-	looming wind-down and eventual closure. Fluctuating patient and staff volumes, higher vendor
43		-	costs even for incumbents, and continuing fiscal limitations made service level and associated
44		-	cost determinations extremely difficult. Morrisons’s change in leadership also contributed to the
45		-	significant delay. ENROLLED ORIGINAL
	39	+	To account for these and other closure-related factors that will undoubtedly continue to
	40	+	arise, the hospital is exploring the use of recommended contracting options, such as no-
	41	+	cost modifications, or exercising more frequent modifications. In the meantime, Council
	42	+	approval of this proposed Contract with Morrison is vital to avoid disruption to these
	43	+	essential services.
46	44
47	45
48	46
49	47
	48	+	DocuSign Envelope ID: C4250FE8-A46C-4AF2-9C6D-232C75C471B0 UMC
	49	+
	50	+
	51	+
	52	+
	53	+
	54	+	1310 SOUTHERN AVENUE, SE WASHINGTON, D.C. 20032 -4623 • 202-574-6000 • WWW.UNITED-MEDICALCENTER.COM
	55	+	As always, I am available to discuss any questions you may have regarding this
	56	+	submittal. In order to facilitate a response to any questions you may have, please have
	57	+	your staff contact me at (202) 574-6611. I look forward to a favorable consideration on
	58	+	this contract.
	59	+
	60	+
	61	+	Sincerely,
	62	+
	63	+
	64	+	Jacqueline Payne-Borden
	65	+	Chief Executive Officer
	66	+	Not-for-Profit Hospital Corporation
	67	+
	68	+	Enclosure DocuSign Envelope ID: C4250FE8-A46C-4AF2-9C6D-232C75C471B0 1
50	69		2
51		-	(d) The parties executed the letter contract on February 12, 2024, in the amount of
52		-	$891,076, for a 7 month base period, from August 1, 2023 to February 29, 2024.
53		-	(e) The parties subsequently completed negotiations for the remaining 5 months, from
54		-	March 1, 2024 to July 31, 2024, in the amount of $636,483.22.
55		-	(f) The proposed definitized base year of the Contract has a value of $1,527,560 and
56		-	requires Council approval because the aggregate value exceeds $1 million in a 12-month period.
57		-	(g) Without Council approval, Morrison cannot be paid for these critical services
58		-	provided and to be provided in excess of $1 million.
59		-
60		-	Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute
61		-	emergency circumstances making it necessary that the Contract No. NFPHC-OPS-23-C-00059
62		-	between the Not-for-Profit Hospital Corporation and Morrison Management Specialists, Inc.,
63		-	Approval and Payment Authorization Emergency Act of 2024 be adopted after a single reading.
64		-
65		-	Sec. 4. This resolution shall take effect immediately.
	70	+	3
	71	+	4
	72	+	5
	73	+	6
	74	+	7
	75	+	8
	76	+	9
	77	+	10
	78	+	11
	79	+	12
	80	+	13
	81	+	14
	82	+	15
	83	+	16
	84	+	17
	85	+	18
	86	+	19
	87	+	A RESOLUTION
	88	+	~
	89	+	at the request of the Not-for
	90	+	Profit Hospital Corporation
	91	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
	92	+	20 To declare the existence
	93	+	of an emergency with respect to the need to approve Contract
	94	+	21 No. NFPHC-OPS-23-C-00059 between the Not-for-Profit Hospital Corporation,
	95	+	22 commonly known as United Medical Center ("Hospital"), and Morrison
	96	+	23 Management Specialists , Inc ., for the provision Food and Nutrition Management
	97	+	24 services
	98	+	to the Hospital, and to authorize payment for the services received and to
	99	+	25 be received under the Contract.
	100	+	26
	101	+	27 RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That
	102	+	28 this resolution may be cited as the "Contract No. NFPHC-OPS-23-C-00059 between the -
	103	+	29 Not-for-Profit Hospital Corporation and Morrison Management Specialists, Inc
	104	+	.,
	105	+	30 Approval and Payment Authorization Emergency Declaration Resolution of 2024".
	106	+	31 Sec. 2. (a) There exists an immediate need to approve Contract No. NFPHC-OPS-
	107	+	32 23-C-00059 ("Contract") between the Not-for-Profit Hospital Corporation ("Hospital")
	108	+	33 and Morrison Management Specialists, Inc., for the provision of Food and Nutrition
	109	+	34 Management services
	110	+	to the Hospital ("Services"), and to authorize payment for the
	111	+	35 services received and
	112	+	to be received under this Contract.
	113	+	1 2
	114	+	(b) As the Hospital moves rapidly toward closure, sole sourcing to incumbent 36
	115	+	vendors, wherever possible and within fiscal limitations, has become the preferred 37
	116	+	approach to stabilizing critical services without disrupting patient care. Accordingly, 38
	117	+	when the prior engagement for these s ervices approached expiration in July 2023, the 39
	118	+	Hospital selected incumbent vendor, Morrison, as its preferred vendor under a new 40
	119	+	contract that would likely continue until the facility closed in early 2025. 41
	120	+	(c) To avoid a lapse in these critical services while also providing additional time 42
	121	+	for detailed negotiations of a new twelve (12) month base contract, UMC sought to 43
	122	+	quickly execute a letter contract with Morrison , as permitted under its Procurement Rules 44
	123	+	(27 DCMR 4614(f)). Despite the good faith and timely efforts of both parties, attempts 45
	124	+	to finalize earl y drafts of the letter contract (at 90 days and 180 days), were unsuccessful 46
	125	+	largely due to the hospital’s looming wind down and eventual closure. F luctuating 47
	126	+	patient and staff volumes, higher vendor costs even for incumbents, and continuing fiscal 48
	127	+	limitations made service level and associated cost determinations extremely difficult. 49
	128	+	Morrisons’s change in leadership also contributed to the significant delay. 50
	129	+	(d) In early calendar year 2024, the parties finished negotiating the letter contra ct; 51
	130	+	it was fully executed on February 12, 2024, in the amount of $891,076, for a seven (7) 52
	131	+	month base period ( August 1, 2023 - February 29, 2024). Council approval was not 53
	132	+	required. 54
	133	+	(e) During this prolonged period, the parties also completed negotiations for the 55
	134	+	five (5) months remaining in the base year (March 1, 2024 – July 31, 2024) , in the 56
	135	+	amount of $636,483.22. Once definitized (merged with the fully executed letter 57 3
	136	+	contract), the result is a proposed, retroactive, definitized base period contract in the 58
	137	+	amount of $1,527,560.00, for a twelve (12) month base year (August 1, 2023 – July 31, 59
	138	+	2024). 60
	139	+	(f) The parties hereby submit the proposed definitized base year of the Contract in 61
	140	+	the amount of $1,527,560.00, with a twelve (12) month retroactive period of August 1, 62
	141	+	2023 to July 31, 2024, because the aggregate value exceeds $1 million in a 12- month 63
	142	+	period; therefore, Council approval is necessary. 64
	143	+	(g) Without this approval, Morrison Management Specialists, Inc., cannot be paid 65
	144	+	for these critical services provided and to be provided in excess of $999,999.99. 66
	145	+	Sec. 3. The Council determines that the circumstances enumerated in section 2 67
	146	+	constitute emergency circumstances making it necessary that Contract No. NFPHC -OPS-68
	147	+	23-C-00059 between the Not-for-Profit Hospital Corporation and Morrison Management 69
	148	+	Specialists, Inc., Approval and Payment Authorization Emergency Act of 2024, be 70
	149	+	adopted after a single reading. 71
	150	+	Sec. 4. This resolution shall take effect immediately. 72