25-78008-000_RFI_-_Substance_Abuse_Testing_Services_10.30.25.pdf

Department of State Hospitals RFI Number 25-78008-000

Substance Abuse Testing Services

REQUEST FOR INFORMATION

RFI Number: 25-78008-000 for

October 31, 2025

A. PURPOSE

The purpose of this Request for Information (RFI) is to survey qualified vendors regarding the laboratory testing services for the analysis of urine and/or oral specimens they may provide to the Department of State Hospitals (DSH). The DSH Forensic Conditional Release Program (CONREP) is looking for information on a contractor that operates as a clinical laboratory that provides urine drug test (UDT) and oral fluid drug test (OFT) laboratory testing services and analysis of specimens to assist DSH in detecting substance abuse in its clients.

A broad scope of work that entails the laboratory testing services is described herein. The information received from this RFI may be utilized in a scope of work for future use.

This request is issued solely for informational and planning purposes and does not constitute a Competitive Solicitation.

DISCLAIMER – PLEASE READ BEFORE RESPONDING TO THIS RFI

1. DSH will not reimburse Respondents for any costs associated with responding to this

RFI.

2. DSH has no obligation to buy or issue a solicitation to any Respondent as a result of this RFI.

3. Information provided in response to this RFI will not be considered when evaluating bidders responding to any future procurement.

4. Participants are advised that the responses to this RFI are subject to the Public Records Act.

5. Information provided in response to this RFI related to any costing should be estimated costs, only to be used by DSH for informational and planning purposes and understood not to be represented as a bid from the Respondent.

6. DSH, at its sole discretion, may invite Respondents to this RFI to make a presentation or engage in a confidential conversation concerning their response.

7. DSH may, at its sole discretion, choose not to consider or evaluate any response, or any portion of a response, received as a result of this RFI.

B. OVERALL BACKGROUND

Pursuant to Welfare and Institutions Code (WIC) Section 4360 (a) and (b), the DSH operates Forensic CONREPs statewide. Through contracts with private providers or counties, the DSH provides a statewide system of community mental health treatment and supervision to the designated population of judicially committed individuals, including those committed pursuant to the following Penal Code (PC) and WIC sections: Not Guilty by Reason of Insanity (PC 1026/WIC 702.3), Incompetent to Stand Trial (PC 1370), Mentally Disordered Sex Offender (former WIC 6316), Offenders with Mental Health Disorders (PC 2964(a) and PC 2972), and Sexually Violent Predators (WIC 6604/6608), referred to as “CONREP clients”.

You are invited to review and respond to this DSH RFI.

• The DSH is seeking to better understand the marketplace and potential pool to contract statewide laboratory testing services for the analysis of urine and/or oral specimens in detecting substance abuse for CONREP clients.

• The DSH is seeking the input of qualified vendors to better understand the types of services they provide and how they structure their costs.

For more information, please review the Description of Services and RFI Requirements included below.

Please note that this RFI is not a solicitation for services.

TABLE OF CONTENTS

ITEM PAGE

A. Purpose/Notification 1

B. Overall Background 2

Table of Contents 3

I. Nature of the Work 4

1. Background 4

2. Description of Services 4

II. Minimum Qualifications 4

III. Other Criteria 4

IV. Evaluation Process 5

V. Disposition of Submissions 5

VI. Submission Requirements 5

VII. RFI Requirements 5

Attachment 1 – RFI Response Sheet 7

VIII. Sample Contract 8

I. Nature of the Work

A. Background

The Contractor operates as a clinical laboratory and provides laboratory testing services as ordered by authorized health care providers. The Contractor shall provide laboratory analysis of urine and/or oral specimens submitted statewide by DSH Forensic CONREP authorized health care providers to assist DSH in detecting substance abuse in its clients.

B. Description of Services

For a complete description of services and contract terms and conditions refer to Section VII, Sample Contract included in this RFI.

II. Minimum Qualifications

1. Ability to perform urine and oral fluid testing for a range of controlled substances.

2. Must provide screening and confirmatory testing (e.g., gas chromatography-mass spectrometry (GC-MS), or liquid chromatography-tandem mass spectrometry (LC-

MS/MS)).

3. Must utilize a strict chain-of-custody protocol.

4. Ability to provide secure, electronic reporting of results within established timeframes.

5. Ability to testify in court settings regarding chain-of-custody and testing parameters.

5. At least 5 (five) years of experience providing substance abuse testing services to large organizations or government entities.

6. Proven capacity to service multiple locations statewide.

7. Respondent must submit a copy of their license to do business in the State of

California. Contractor, at own expense, shall maintain and possess such license, and any and all necessary license(s), permit(s), and certificate(s) required by law. Such license(s) permit(s), and certificate(s) shall be in full force and effect prior to conducting any work required in connection with this RFI and maintained throughout the life of the contract, if awarded.

III. Other Criteria

Respondents to this RFI shall submit a document that provides the following information:

A. Services/features provided B. Pricing options (including set up fees)

IV. Evaluation Process

All submissions will be evaluated for their responsiveness to the Minimum Qualifications and Selection Criteria. The DSH must conclude the respondent has met all Minimum Qualifications in order to consider award of a contract. The DSH makes no guarantee; either written or implied, as to the actual number of contracts awarded to all compliant respondents.

V. Disposition of Submissions

Upon completion of the evaluation process, all documents submitted in response to this RFI will become the property of the State of California, and will be regarded as public records under the California Public Records Act (Government Code Section 6250 et seq.) and subject to review by the public.

VI. Submission Requirements

The complete submission will consist of the following:

A. Documents addressing the Minimum Qualification Other Criteria in accordance with

Sections II and III.

B. RFI Response Sheet (Attachment 1)

VII. RFI REQUIREMENTS

A. Contractor must submit proof of contractor’s legal right to do business in the State of

California.

1. Contractor must submit a copy of their license to do Business in the State of California. Contractor, at Contractor’s own expense, shall maintain and possess such license, and any and all necessary license(s), permit(s), and certificate(s) required by law throughout the entire term of the contract. Such license(s) permit(s), and certificate(s) shall be in full force and effect prior to conducting any work required in connection with this contract

2. Contractors located within the State of California shall meet all terms and conditions for operating a business in the city/county in which the business is headquartered.

Contractors which are corporations located within the State of California, shall submit a copy of the incorporation document/letter from the Secretary of State of California.

Contractors located outside the State of California shall meet all terms and conditions for operating a business in the state, province, or country in which the contractor is headquartered, and shall submit an affidavit to show that the business is in good standing in that state, province, or country.

DEPARTMENTAL CONTACT

All correspondence related to this RFI shall be directed to:

Department of State Hospitals Attention:

Kenneth Frank Email: kenneth.frank@dsh.ca.gov or saccontracts@dsh.ca.gov

RESPONDING TO THIS REQUEST FOR INFORMATION

A. Key Action Dates:

Event Date Time

RFI Posted / Sent to Potential Respondents 10/31/2025 3:00 PM

RFI Vendor Questions Due 11/11/2025 3:00 PM

RFI DSH Responses to Questions Due 11/25/2025 3:00 PM

RFI Final Vendor Response Due 12/3/2025 3:00 PM

RFI Follow-Up Conducted, If Applicable

RESPONDING TO THIS REQUEST FOR INFORMATION

A. Submission of Responses:

If Respondents are interested in participating in this RFI, they shall complete and submit Attachments 1. Responses should be concise and straightforward. Respondents are to submit one (1) electronic copy of their response to the contact person named above by email. RFI responses must be submitted by the deadline identified in the Key Action Dates.

B. Confidentiality:

All written responses will become public record at the conclusion of the RFI process. The DSH may, upon request from a respondent, purge some or all written records submitted by a respondent to this RFI. Respondents wishing to keep any submitted information confidential must make a request in writing to the contact person named above.

mailto:kenneth.frank@dsh.ca.gov mailto:saccontracts@dsh.ca.gov

ATTACHMENT 1

RFI Response Sheet

Respondent Name:

Address:

Telephone Number:

Fax Number:

Email:

Signature:

Are you a State of California Certified Small Business (SB) or Disabled Veteran Business Enterprise (DVBE)?

Yes___ No____

If yes, please provide your SB/DVBE certification number: ______________________

VIII. Sample Contract/Scope of Work This is a sample Scope of work and standard contract language for CONREP contracts that outlines potential contractor responsibilities and deliverables.

1. SUMMARY OF WORK TO BE PERFORMED:

A. The Contractor operates as a clinical laboratory and provides laboratory testing services as ordered by authorized health care providers. The Contractor shall provide laboratory analysis of urine and/or oral specimens submitted statewide by DSH Forensic Conditional Release Program (CONREP) authorized health care providers to assist DSH in detecting substance abuse in its clients (“the Services”).

2. CONTRACTOR RESPONSIBILITIES:

A. The Contractor shall perform the Services of chemical analysis of urine or oral specimens submitted statewide by DSH CONREP providers, for those clients under the supervision of the CONREP program. Contractor shall perform such tests as requested by authorized health care providers pursuant to properly completed test requisitions. Specimens submitted to the Contractor for analysis shall be screened for the presence of any of, but not limited to, the following class of drugs, as shown below and as ordered on a test requisition form:

Drug/Analyte Billing Drug Class

Ethyl Glucuronide Alcohol Biomarkers

Kratom Alkaloids, not otherwise specified

Amphetamines, Methamphetamines, Phentermine

Amphetamines

Methamphetamine – d/I Isomers Stereoisomer

Citalopram, Duloxetine, Fluoxetine, Paroxetine

Antidepressants, serotonergic class

Amitriptyline, Desipramine, Imipramine, Nortriptyline

Antidepressants, Tricyclic and other cyclicals

Bupropion, Venlafaxine Antidepressants, not otherwise specified

Aripiprazole, Clozapine, Haloperidol, Olanzapine, Quetiapine, Risperidone

Antipsychotics, not otherwise specified

Butalbital, Phenobarbital, Secobarbital Barbiturates

Alprazolam, Clonazepam, Diazepam, Nordazepam, Oxazepam, Temazepam

Benzodiazepines

Buprenorphine Buprenorphine

Marijuana, THC Cannabinoids, natural

Spice compound metabolites Cannabinoids, synthetic

Benzoylecgonine (cocaine metabolite) Cocaine

Fentanyl Fentanyl

Gabapentin Gabapentin

6‐MAM (Heroin metabolite) Heroin Metabolite

Ketamine Ketamine

Drug/Analyte Billing Drug Class

Methadone/EDDP (methadone metabolite)

Methadone

MDMA Methylenedioxyamphetamines

Methylphenidate, ritalinic acid Methylphenidate

Codeine, Hydrocodone, Hydromorphone, Morphine

Opiates

Dextromethorphan, Meperidine, Naloxone, Naltrexone, normeperidine

Opioids and opiate analogs

Oxycodone, Oxymorphone Oxycodone

Phencyclidine Phencyclidine

Pregabalin Pregabalin

Zolpidem Sedative Hypnotics (nonbenzodiazepines)

Carisoprodol, Cyclobenzaprine, Meprobamate

Skeletal muscle relaxants

Tapentadol Tapentadol

Tramadol Tramadol

Bath Salts (Cathinones), Phenylethylamines

Stimulants, synthetic

B. Laboratory Testing

i. Contractor shall perform the most definitive testing on all specimens submitted by

DSH CONREP providers. This shall entail using enzyme immunoassay (EIA) or Liquid Chromatography with Tandem Mass Spectrometry (LC-MS/MS) when performing the specimen analysis. The LC-MS/MS shall be performed on all specimens, as ordered on a test requisition form. The LC-MS/MS method:

a) Allows for a lower sample volume for testing, requiring an amount of only 2 mL of urine or 1mL of oral fluid

b) Uses a series of discrete, sequential analytical steps combined in one instrument system that specifically identifies drugs by their unique chemical properties. LC- MS/MS uses a liquid chromatographic separation that when combined with a two-stage mass fragmentation process results in a highly definitive and accurate analytical system

c) Provides the ability to identify several drugs and drug classes simultaneously resulting in a more accurate assessment of the drug usage.

ii. Contractor shall provide a re-confirmation test on any specimen upon the request of the DSH Contract Manager or designee. Such a test shall employ LC-MS/MS as the methodology (unless such test is noted as an EIA test on the requisition form), adhere to all other specifications and standards of the Agreement, and be reported to the DSH Contract Manager or designee.

iii. The Contractor’s urine cutoff levels are shown below. The information contained in these tables are subject to change, at the discretion and based on the expertise of the Contractor.

EIA and LC-MS/MS Cutoff Levels

EIA UDT

LC-MS/MS Urine Drug Test

Test Lower Cutoff Lower Cutoff

Alcohol 20mg/dL

Ethyl Glucuronide (EtG) 500 500

Ethyl Sulfate (EtS) - 500

Amphetamines 500

Amphetamine - 100

Methamphetamine - 100

Antidepressants, Other

Hydroxybupropion - 50

Citalopram/Escitalopram - 25

N-Desmethyl-citalopram - 25

Duloxetine - 25

Fluoxetine - 25

Norfluoxetine - 25

Paroxetine - 25

Sertraline - 10

Venlafaxine - 100

Desmethylvenlafaxine - 100

Antipsychotics

Aripiprazole - 5

OPC-3373 (Aripiprazole metabolite) - 15

Clozapine - 25

N-Desmethyl-clozapine - 25

Haloperidol - 5

Haloperidol metabolite - 5

Lamotrigine - 50

Olanzapine - 25

Quetiapine - 25

Norquetiapine - 25

Risperidone - 10

Drug Test

Test Lower Cutoff Lower Cutoff

Hydroxyrisperidone - 25

Barbiturates 200

Pentobarbital - 200

Phenobarbital - 200

Secobarbital - 200

Butalbital - 200

Benzodiazepines 200

Alprazolam - -

Alpha-hydroxyalprazolam - 20

Clonazepam - -

7-Amino-clonazepam - 20

Diazepam - -

Nordiazepam - 40

Lorazepam - 40

Oxazepam - 40

Temazepam - 50

Illicit Substances

Cocaine

Benzoylecgonine (cocaine metabolite) 50

6-MAM (heroin metabolite) 10 10

MDMA 500 20

Phencyclidine (PCP) 25 10

THC

cTHC (marijuana metabolite) 15

Opiates

Codeine - 50

Hydrocodone - 50

Norhydrocodone - 50

Hydromorphone - 50

Morphine - 50

Opioids

Fentanyl 2 1

Norfentanyl - 8

4-ANPP (despropionyl fentanyl) - 2

4-FiBF (4-fluoroisobutyryl fentanyl) - 2

Acetyl fentanyl (desmethyl fentanyl) - 2

Acetyl norfentyanyl - 5

Acryl fentanyl - 1

Butyryl fentanyl - 1

Carfentanil - 2

Drug Test

Test Lower Cutoff Lower Cutoff

Cis-3-methyl fentanyl - 2

Cyclopropyl fentanyl - 1

Furanyl fentanyl (Fu-F) - 2

Methoxyacetyl fentanyl - 2

U-47700 - 2

N-desmethyl U-47700 - 2

Methadone 300 100

EDDP (methadone metabolite) - 100

Oxycodone 100 50

Noroxycodone - 50

Oxymorphone - 50

Tapentadol - 50

Tramadol 200 100

O-desmethyl-tramadol - 100

N-desmethyl-tramadol - 100

Opioids, Related

Buprenorphine 10 5

Norbuprenorphine - 20

Naloxone - 20

Levorphanol - 50

Meperidine - 50

Normepreidine - 50

Naltrexone - 10

Naltrexol (marltexone metabolite) - 10

Other

Acetaminophen 10 μg/mL -

Carisoprodole - 100

Meprobamate - 100

Cotinine (nicotine metabolite) 300 -

Cyclobenzaprine - 50

Dextromethorphan - 50

Dextrorphan (dextromethorphan metabolite)

Gabapentin - 400

Ketamine - 50

Norketamine - 50

Pregabalin - 400

Trazodone - 10

Zolpidem - -cZolpidem (zolpidem metabolite) - 10

Drug Test

Test Lower Cutoff Lower Cutoff

Stimulants

Phentermine - 50

Methylphenidate - 50

Ritalinic Acid - 50

Synthetics and Other

Eutylone - 10

Methylone - 3

Mitragynine (Kratom) - 1

7-OH Mitragynine (Kratom) - 1

FUB-AMB metabolite (AB-FUBINACA-M3) - 10

5F-MDMB-PINACA metabolite (5F-ADB- M7)

ADB-FUBINACA metabolite (MDMB-

FUBINACA-M1)

JWH-018 metabolite - 10

JWH-073 metabolite - 10

RCS4 metabolite - 10

XLF11/UR144 metabolite - 10

Tricyclic Antidepressants 500

Amitriptyline - 50

Desipramine - 50

Imipramine - 50

Nortriptyline - 50

C. Chain of Custody

i. Contractor shall track and log each specimen, such as when it was received at the facility and by whom it was received. The specimen is tracked as it moves through the testing process, from the time it is received by Contractor, to the time results are reported, to the time it is stored, and up to the time it is ultimately destroyed.

D. Specimen Handling, Storage, and Preservation

i. Contractor shall communicate to DSH the volume of urine or oral fluid needed to conduct the Services.

ii. Contractor will retain urine and oral fluid specimens for thirty (30) days after receipt of specimen at the lab.

iii. Contractor shall maintain, for a period of one (1) year from date of termination of this

Agreement, all necessary safeguards, records, and controls relative to the handling, processing, and analysis of specimens, to ensure their availability to DSH in the event a test result is legally challenged.

iv. Contractor shall maintain a complete record of all samples analyzed including sample number, date and time received, date analyzed, results of tests performed, and date and time results were released to the CONREP program provider.

v. Contractor may discard a specimen that cannot be identified by donor or CONREP program provider or is without sufficient quantity, after first notifying the program provider, if known. Contractor shall dispose of specimens at no additional cost to the

DSH.

E. Results Reporting

Contractor shall:

i. Generally, report results within one (1) business day of receipt of specimen by

Contractor.

ii. Ensure that all test results and quality control data are reviewed by a California licensed clinical laboratory scientist as delegated by the medical director before being certified as accurate.

iii. Upload to the submitting CONREP provider via fax, e-mail or online ordering platform, the results of confirmed positive and negative tests on the same day the test is completed.

iv. Send email notification to the CONREP designee via online ordering platform when test results are available.

v. Maintain 24/7 access to test results and assist CONREP designee with navigation and log in issues.

vi. Identify on the results report the drugs or metabolites tested, whether positive or negative, and for LC-MS/MS tests requested the minimum level of concentration reported as positive.

F. Courier Service

i. Contractor shall provide courier services for the use of statewide CONREP program provider sites to submit specimen to Contractor, at no additional cost to DSH.

Contractor shall follow up with courier service in cases of service delivery failure, including incidences of lost specimens or failure to pick up specimens.

G. Supplies

i. Contractor shall provide and/or pay for all materials, forms, packaging and shipping costs necessary for the conveyance of specimens to Contractor. All supplies shall be used solely in connection with sending specimens to Contractor and DSH represents and warrants that it will not bill any payor for any materials provided by Contractor for the conveyance of specimens to Contractor. Contractor shall furnish all specimen supplies, including:

a) Specimen containers that meet the following specifications:

1. Urine specimen collection cups

2. Oral fluid collection devices

3. Specimen bags

4. Specimen identification labels

5. Collection basins will be provided, for female patient use, if needed.

6. All required shipping materials

b) The CONREP providers will use the online ordering portal for submitting the client’s sample information. In the event the online ordering portal is not accessible, the contractor will supply the CONREP providers with pre-printed laboratory requisition to be used when submitting samples. The requisitions shall meet the following specifications:

1. No less than 8.5” x 5.5” or more than 8.5” x 11” in size.

2. In sets of two, with one laboratory copy and one donor copy

3. Printed in a manner allowing them to be completed by pen or typewriter.

4. Individually numbered.

c) Bar code labels will be provided to use in conjunction with the online ordering platform. For each laboratory requisition for CONREP providers to use when submitting samples.

H. Records Retention

i. Contractor shall retain, for a period of two (2) years, one (1) copy of each final urinalysis report and shall make each copy available to DSH, upon request, for audit purposes. Contractor shall bear the cost of necessary forms and postage.

I. Quality Assurance and Quality Control Procedures

i. Contractor shall maintain a Quality Assurance and Quality Control program which encompasses all aspects of the testing process including:

a) Security.

b) Reporting of results.

c) Screening and confirmation of analytical results.

ii. Contractor shall design, implement, and review quality control procedures to monitor each step of the testing process.

iii. Quality Control screening shall occur as follows: a batch of specimens that is screened shall be screened with both: (1) specimen with no drug and (2) specimen fortified with known levels of drugs or metabolites. At least 10 percent of test samples shall be Quality Control screened as set forth in this paragraph. Additional controls blind to the analyst shall be tested periodically. Similar controls shall be analyzed in parallel with confirmation tests.

iv. Contractor shall ensure that carry-over from screening tests to confirmatory tests does not contaminate the testing of a subject’s specimen.

J. Reports Requirement

i. Contractor shall submit a report titled “Practice Summary Report” on or before the tenth working day of each month, following the month in which the test was received.

This monthly report shall include the following data for each CONREP program provider:

a) Listing of all tests completed.

b) Laboratory order number.

c) Listing of all positive screenings and confirmed positives by substance.

d) Total number of different patients tested; number of different patients confirmed positive for one or more substance; percentage of different patients confirmed positive for one or more substance against the total number of different patients.

e) Total number of specimens analyzed; number of specimens confirmed positive for one or more substance; percentage of specimens confirmed positive for one or more substance against the total number of specimens analyzed.

ii. Contractor shall electronically submit on or before the tenth working day of each month to DSH Contract Manager or administration designee, following the month in which the tests were received, a report that can be converted to Microsoft Excel, listing all samples received during the reporting month by CONREP program. The spreadsheet shall include the following information:

a) Listing of all tests completed.

b) Laboratory order number.

c) Listing of all positive screenings and confirmed positives by substance.

d) Total number of different patients tested; number of different patients confirmed positive for one or more substance; percentage of different patients confirmed positive for one or more substance against the total number of different patients.

e) Total number of specimens analyzed; number of specimens confirmed positive for one or more substance; percentage of specimens confirmed positive for one or more substance against the total number of specimens analyzed.

K. Court Testimony

i. Contractor or designee shall appear in court hearings to give expert testimony concerning its testing methods and reliability and results of its analyses, upon request by DSH. Contractor’s expenses to make such court appearance is inclusive in the specimen testing rate, per Exhibit B, Budget Detail. The anticipated number of such court hearings is minimal.

L. Employment Provisions

i. Contractor acknowledges and agrees that neither Contractor, its personnel, subcontractors, or other service providers under this Agreement are employees of DSH. Contractor and its independent contractors shall be solely responsible for:

a) Paying any and all payroll taxes, including but not limited to Social Security and

Medicare taxes.

b) Federal or state income tax withholding.

c) Providing unemployment insurance and workers compensation insurance.

M. Confidentiality of Data

i. All financial, statistical, personal, technical, and other data and information relating to the State’s operation, which are designated confidential by the State or DSH and made available to Contractor to carry out this Agreement or which become available to Contractor to carry out this Agreement shall be protected by Contractor from unauthorized use and disclosure.

ii. Contractor shall obtain written approval by DSH for the methods and procedures for the protection of data and information. Contractor represents that the online portal and its supporting infrastructure are HITRUST Cybersecurity Framework (CSF) certified.

iii. Contractor shall not, except to DSH, release, publish, or make available any report, information, invention, improvement, discovery, or data which Contractor obtained, repaired, assembled, or developed by Contractor under the Agreement, unless such release, publication, or availability is required by state or federal law, requested in writing by the DSH Contract Manager, or otherwise required or permitted by this Agreement.

iv. Contractor shall be subject to all of the requirements of the Health Information

Portability and Accountability Act (HIPAA), California Medical Information Act (CMIA), and the Information Practices Act at California Civil Code Sections 1798, et seq., regarding the collection, maintenance, use, and disclosure of personal and confidential information about individuals.

N. The Contractor shall provide training to CONREP Operations staff and CONREP provider staff not limited to the following topics:

i. Logging in, navigation and use of the online ordering platform

ii. Process of the submission of test orders/requisitions and use of required forms

iii. How to review results from reports

O. Contractor and its subcontractors shall procure and keep in full force and effect during the term of this Agreement all permits, registrations and licenses necessary to accomplish the work specified in this Agreement and shall give all notices necessary and incident to the lawful prosecution of the work. Contractor shall provide proof of any such license(s) permits(s), and certificate(s) upon request by the DSH. Contractor agrees that failure by itself or its subcontractors to provide evidence of licensing, permits, or certifications shall constitute a material breach for which the DSH may terminate this Agreement with cause.

P. Contractor shall provide services as outlined in this Agreement. Contractor shall be responsible to fulfill the requirements of the Agreement and shall incur expenses at its own risk and invest sufficient amount of time and capital to fulfill the obligations as contained herein.

Q. Contractor and its subcontractors shall keep informed of, observe, comply with, and cause all of its agents and employees to observe and to comply with all prevailing Federal, State, and local laws, and rules and regulations made pursuant to said Federal, State, and local laws, which in any way affect the conduct of the work of this Agreement.

If any conflict arises between provisions of the plans and specifications and any such law above referred to, then the Contractor shall immediately notify the state in writing.

R. The DSH may terminate the Agreement, if the Contractor or its subcontractors fails to comply with a federal, state or local law and the noncompliance, based on the facts and circumstances would constitute a material breach of this Agreement under California law.

S. If services are provided on DSH grounds, then the Contractor shall participate in any of the DSH workplace violence prevention, infection control-illness prevention, and workplace safety measures or programs as may be required by DSH. This responsibility includes compliance with infection control measures, use of Personal Protective Equipment (PPE) as prescribed by DSH, attending any and all related training or orientation to such measures or programs as may be required and scheduled by the DSH. DSH will provide the Contractor with electronic versions of the DSH's current Illness and Injury Prevention Plan (IIPP), Workplace Violence Prevention Plan (WVPP), DSH Code of Safe Practices, and other appropriate documents to support worksite safety and infection control.

3. THE DSH RESPONSIBILITIES:

A. DSH CONREP authorized health care providers shall submit completed test requisitions and urine or oral specimens to Contractor to perform laboratory testing for the drugs listed in this Agreement.

B. DSH reserves the right to perform external quality control evaluation and review of

Contractor operations without prior notification to Contractor as follows:

C. DSH may submit quality control urine specimens that may not be identified as such.

D. DSH may collect from Contractor, for purposes of retesting by an independent laboratory, specimens that have been tested.

E. DSH may conduct on-site evaluations of methods and procedures used by Contractor.

F. In the case of a determination of a false positive on a performance challenge, Contractor shall retest, at no additional charge to DSH, all confirmed positives for that substance back to the last satisfactory performance challenge for that substance

G. Rights of the DSH to Perform Quality Assurance and Financial Audits/Reviews

i. The DSH may routinely evaluate the work performance of the Contractor, Contractor’s personnel, subcontractors, or other parties associated with the Contractor to determine if the DSH standards and departmental policies and procedures are being maintained. If it is found that any party fails to perform or is physically or mentally incapable of providing services as required by the Agreement, then that party shall not perform services for the DSH.

ii. The DSH may monitor and evaluate services provided in fulfillment of the requirements of this Agreement, as detailed in Exhibit A. Such monitoring and evaluation may occur on a regular cycle or as deemed necessary by the Contracts Manager. The DSH retains sole and absolute discretion in determining any such evaluation schedule.

iii. Inspections may be conducted by the DSH staff at any time during the Agreement term to check on the quality of work. Payment shall not be provided for services deemed unacceptable by the Contract Manager and/or their designee.

iv. The DSH may audit and examine Contractor’s records and accounts which pertain, directly or indirectly, to services performed under this Agreement. The DSH may hire third parties to perform the audit and examination, including but not limited to, accountants, consultants, or service providers in the applicable field. Contractor shall cooperate fully with the audits and examinations.

v. If as a result of an audit and examination, the DSH is informed of underpayments or overpayments, the DSH shall notify Contractor of the need for payment or reimbursement. Upon receipt of a final audit report, Contractor has 30 days to reimburse any overpayment or to dispute or challenge the report. Contractor and the DSH shall confer and negotiate in good faith with respect to any disputed portion of the final audit report to reach agreement with respect to adjustments, payments, and reimbursements.

vi. The DSH shall submit its findings to Contractor and establish a deadline for correcting any deficiencies in fulfilling the obligations set forth in this section. Failure by the Contractor to timely correct deficiencies shall be reason for termination of services under this Agreement.

4. PERFORMANCE MEASURES:

A. Complete and Timely Provision of Services

i. Expectations: Contractor is expected to provide all services, including any and all required reports, in a timely manner – in accordance with timelines established in Exhibit A, Scope of Work.

ii. Penalties: Should Contractor not provide all services, including any and all required reports in a timely manner, DSH may choose to terminate this Agreement.

Additionally, the DSH may find the contractor to be not responsible in provision of services and evaluate this in future contracting opportunities.

5. AMENDMENTS:

A. The parties reserve the right to amend this Agreement by extending the term for one (1) additional term up to two (2) years and to add funding sufficient for that period at the same rates. This right to amend is in addition to the right to amend for other reasons contained in this Agreement or noted in the solicitation that resulted in this agreement, if applicable. Any amendment shall be in writing and signed by both parties and be approved by the Department of General Services, if such approval is required.

6. DSH REPRESENTATION AND WARRANTY:

DSH represents and warrants that it will not bill any third party payors (government or commercial) for the services provided to the CONREP patients under this Agreement. Further, DSH represents and warrants that if it seeks payment from a patient for the services it will not mark-up or add additional costs when billing the patient for the services.