ARC Health & Wellness (hereafter known as “ARC”) is a Nevada-based  occupational health medical group founded and headquartered in Sparks, NV.  ARC with three (3) locations in Sparks, NV at 1855 N. McCarran Blvd., 82 E. Glendale Ave., 2205 Glendale Ave. Suite # 131.  ARC also, operates Occupational Health Medical Centers, in additional locations throughout Nevada including Carson City, Las Vegas, Henderson and the City of Elko.

The City of Sparks has continuously worked with ARC since 2007, when ARC was awarded the RFP to conduct Physical Exam Services for members of Police and Fire as mandated under NRS/NAC 617.  ARC was awarded the City of Sparks Bid # 09/10-032 in Summer of 2010, to continue to serve the City.  ARC has also served the City of Sparks Public Works with DOT Physicals, Urine Drug Testing and Respirator Clearances, and provides various other employment and safety related medical services.

Through the years, ARC has been awarded multiple contracts with other Public Entities, Cities and County to serve their Police and Fire members as required under NRS/NAC 617 including Washoe County, the City of Reno, the City of Las Vegas, the City of North Las Vegas, the City of Carson City, and nearly every other Law Enforcement Agency and Fire Department in the State of Nevada.  In early 2015, the City of Sparks enacted the Joinder Provision of the ARC contract with the State of Nevada under Master Service Agreement # 3148.  The City of Sparks pricing with ARC still operates under this contract through December 31, 2019.

In June of 2019, ARC was awarded a contract with Washoe County - Medical Services Contract # 3086-19.  This contract includes all the testing needed by the City of Sparks to successfully complete the NRS/NAC mandated exams as well as other tests and services described above.  ARC has offered to all Nevada Public Entities to enact the Joinder provision of this Washoe County contract # 09/10-032.

Since 2015, utilization of the joinder provision has allowed the City of Sparks to obtain quality services for a low price based upon the larger entities’ ability to secure volume pricing through an open and competitive RFP process.  ARC has delivered on their contract terms for the City of Sparks with quality services.  Reports are delivered timely through a secure portal to protect the privacy of medical information.  Feedback from employees about customer experience has been positive.  ARC responds promptly to address any issues that arise.

During the recession, ARC reduced the contract fees negotiated with the State of Nevada by approximately 3%, despite inflationary factors in healthcare.  The last contract with the State of Nevada had an 8% increase in fees that was held constant through December 31, 2019.

The current contract with Washoe County would represent a projected 13.6% increase for the City of Sparks based upon City of Sparks utilization data from FY19.  The contract with ARC is for a 4-year contract period, meaning rates stay the same throughout.  This benefits all parties because of the stability of the rates.  There are two main factors behind the increase.  First, a portion of the increase is due to medical inflation.  ARC Health and Wellness reduced rates during the recession, then had a one-time modest 8% increase in the contract spanning 4 + years.  This rate change is competitive in the market and reflective of inflationary factors in the industry.  Second, new legislative requirements affecting medical services provided under this contract contribute to the increase in costs for those services.

City staff recommends the joinder with Washoe County instead of the State of Nevada because the state has not yet finalized a new contract for these services to replace the contract ending 12/31/2019.  The state is considering statewide needs that may not match the needs of the city this contract cycle.  However, Washoe County’s contract to begin 1/1/2020 addresses the services needed by the City of Sparks and is already approved and available.  Other local entities in the state are also utilizing Washoe County’s contract.  Furthermore, ARC’s rates are competitive in this contract, after going through the RFP process with Washoe County.

Washoe County’s Medical Services Contract #3086-19 RFP, Page 48 Section B29 includes the following joinder language:

In accordance with the provisions of NRS 332.195, unless otherwise stipulated under the exception section of the proposal response, other local government agencies may join in a resultant contract from this RFP with the permission of the successful proposer.  Within the scope of this RFP, the County shall be held harmless in any and all transactions between the successful proposer and other participating governmental entities.

NRS 332.195 allows joinders or mutual use of contracts by governmental entities.  ARC has agreed to work with the City of Sparks under this joinder provision.

The medical services under consideration are required under laws, regulations, rules or labor agreements, or are deemed necessary in keeping with good employment practices.  These are important and frequent services.  Considering the cost savings available through utilizing a larger entity’s pricing, and the continuation of quality service that has been provided over 13 years, staff recommends approval of utilizing the Washoe County Medical Services Contract with ARC.

1.  The City Council may approve utilizing the joinder provision in Washoe County’s Medical Services Contract #3086-19 with ARC Health and Wellness for medical services in an amount up to $140,000 per fiscal year for the contract period of 1/1/2020 through 12/31/2024.

2.  The City Council may reject utilizing the joinder provision and instead provide direction to the City Manager.

I move to approve utilizing the joinder provision in Washoe County’s Medical Services Contract #3086-19 with ARC Health and Wellness (AC-5631) for medical services in an amount up to $140,000 per fiscal year for the contract period of 1/1/2020 through 12/31/2024.