TrueCare24 Inc., the company that last month lost more than 400 coronavirus test samples, was the lowest bidder of five vendors selected by the county and the least compliant with bidding requirements, according to an analysis of bid documents and purchase agreements West Hawaii Today received from the county in response to a public records request.
TrueCare24, which listed a Tampa, Florida, address on its documents, bid the county-set flat rate of $1,500 per hour plus $44 a test. The next-lowest, World United Health Co. LLC of Honolulu, bid $55 per test, Premier Medical Group of Kaneohe bid $60, Basis Diagnostics of Newark, California, bid $64 and S&G Labs Hawaii of Kailua-Kona bid $80.
The county struck purchase agreements with all five vendors for the period Oct. 8, 2021, to Oct. 7, 2022. The agreement spells out that the county would start with the lowest bidder, and if that bidder is unable to provide the service, the county would move to the next lowest bidder.
TrueCare24 started in San Francisco in 2016, according to its website and now operates in all 50 states. The Tampa location opened in 2021, according to business research services.
The company did not have a general excise tax license with the state when the purchase agreement was struck. Marked “pending,” on the bid document, it was secured with a business start date of Oct. 12, and an employer’s tax withholding account was established Dec. 13, according to the state Department of Taxation website.
A phone message to the company’s number listed on the contract was not returned by press-time Thursday.
Nor did it have a tax clearance from the IRS, although it did have clearance from the state Department of Taxation, according to documents. The IRS clearance was waived for TrueCare24 and World United Health under emergency proclamations signed by Gov. David Ige and a State Procurement Office Circular advising the IRS has a backlog.
TrueCare24 is also the only company not registered with the Department of Commerce and Consumer Affairs, where a spokesperson told the newspaper it’s not a requirement for out-of-state vendors.
The company notified 407 people who’d been tested Jan. 7 at Old Kona Airport Park that samples had been lost, encouraging them to retake the test.
“The samples from that day were not delivered by our courier partner to the lab despite providing a delivery confirmation, and unfortunately the large number of samples collected that day were lost and are no longer valid.” the email reads. “We’ve worked to ensure each site has sufficient testing supplies to continue providing you with results as you need them.”
The message continued with an apology as well as notes of pilot shortages and the Phoenix-based lab being overwhelmed.
Mayor Mitch Roth said at the time he was satisfied that the company had worked out a solution to eliminate a recurrence.
But tests were lost or discarded on the east side of the island as well, according to two individuals known to the newspaper who were in positions to know and asked that their names remain confidential.
In one case, five days worth of tests from Hilo Civic Auditorium and Edith Kanakaole Stadium, as well as Pahoa and Naalehu were rejected because the staff was told by their supervisor not to put date of birth labels on the samples, one source said. Other samples in November apparently disappeared in transit, they said.
Contracts with the vendors require them to submit invoices weekly, with supporting documentation on the number of tests. The documentation is required to be submitted within five days after the end of the prior week.
But test results need to be reported sooner than that.
“The requirement is to report test results within 48 hours of testing,” said county Purchasing Agent Diane Nakagawa.
Hamakua Councilwoman Heather Kimball is concerned enough about what’s going on with the various testing programs, she’s asked for updates on COVID testing and spending from the administration and departments of Civil Defense and Finance.
The updates, scheduled for 9 a.m. Tuesday before the council Committee on Parks and Recreation and Public Safety, will focus on status updates on testing and spending to date as well as plans for additional testing and spending to help mitigate future transmissions and infections of COVID-19.
“I had questions from constituents on availability of testing and why it seemed that results were taking longer to get back,” Kimball said Thursday. “This was really concerning to folks when the numbers were really high. I was curious if we were working with a new vendor and how we were doing with the budget set aside for COVID response.”
(This article has been updated to add vendor Basis Diagnostics of Newark, California, which bid $1,500 per hour plus $64 per test.)