...Title
Dept/ Agency: Health and Community Wellness
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Exception to Public Bidding
Purpose: To provide for the hosting, support, upgrades, maintenance of proprietary software and for existing electronic medical records system, NextGen Healthcare Inc., a Federally Qualified Health Center
Entity Name: NextGen Healthcare Inc.
Entity Address: 1551 Emancipation Highway Suite 200; Unit 1256, Fredericksburg, Virginia, 22401
Contract Amount: Not to exceed $800,000.00
Funding Source: 2025 Budget/Department of Health and Community Wellness/NW051-G25-H250N-71280-B2025
Contract Period: Not to exceed twenty-four (24) consecutive months, beginning July 1, 2025 and terminating on June 30, 2027
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
(X) Non-Fair & Open (X) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) Exception to Public Bidding
Additional Information:
body
WHEREAS, the City of Newark (the “City”) wishes to enter into a contract with NextGen Healthcare Inc., 1551 Emancipation Highway Suite 200, Unit 1256, Fredericksburg, Virginia, 22401 (“NextGen”), to provide an electronic medical records management system, which offers for support, maintenance and enhancement software, for the benefit of the Department of Health and Community Wellness (“DHCW”), in an amount not to exceed Four Hundred Thousand Dollars and Zero Cents ($400,000.00), for the period July 1, 2025 through June 30, 2026 (Year 1), and Four Hundred Thousand Dollars and Zero Cents ($400,000.00), for the period of July 1, 2026 through June 30, 2027 (Year 2), for a total contract amount not to exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00); and
WHEREAS, NextGen offers support, maintenance and managed services essential for the City’s Department of Health and Community Wellness, and its’ co-affiliate Mary Eliza Mahoney Health Centers, a Federally Qualified Health Center to maintain the electronic medical records management system for use by the medical providers in their clinics; and
WHEREAS, NextGen owns the rights to electronic medical records system and is engaged in the business of providing proprietary software, pursuant to N.J.S.A. 40A:11-2 (39); and
WHEREAS, NextGen has represented they are qualified, by their training and experience, to provide the required services and have the exclusive right to make and sell these goods and services, which the Department of Health and Community Wellness certifies is essential and necessary to conduct its affairs, pursuant to N.J.S.A. 40A:11-2(39); and
WHEREAS, pursuant to Local Public Contracts Law, N.J.S.A.40A:11-5(1)(dd), such a contract for a proprietary computer system, may be awarded as an exception to public bidding because the provision or performance of goods and services is for the support and maintenance of proprietary computer hardware and software; and
WHEREAS, the (“DHCW”) has determined and certified in writing that the value of this Contract will exceed Seventeen Thousand Five Hundred Dollars and Zero Cents ($17,500.00); and
WHEREAS, this Contract is being awarded pursuant to a “Non-Fair and Open” Process, pursuant to State Pay-to-Play Law, N.J.S.A.19:44A-20.5; and
WHEREAS, NextGen has completed and submitted a Business Entity Disclosure Certification, which certifies that NextGen has not made any contributions to a political or candidate committee in the previous one (1) year, and that the Contract will prohibit NextGen from making any contributions through the term of this Contract; and
WHEREAS, the Municipal Council adopted New Jersey Municipal Code §2:4-22C.1, which adopted the State of New Jersey's Pay-to-Play statutory requirements pursuant to N.J.S.A.19:44A-20.5, as may be amended and supplemented, governing eligibility for municipal contracts; and
WHEREAS, NextGen, the Business Entity, and its subcontractors, if any, have certified that it is in compliance with the aforementioned Municipal and State Pay-to-Play requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
The Mayor of the City of Newark and/or his designee, the Director of the Department of Health and Community Wellness, is hereby authorized on behalf of the City of Newark, to enter into and execute a contract with NextGen Healthcare Inc., 1551 Emancipation Highway, Suite 200; Unit 1256, Fredericksburg, VA, 22401, to provide support and maintenance proprietary software, “NextGen” management system, and associated services in an amount not to exceed Four Hundred Thousand Dollars and Zero Cents ($400,000.00), for the period July 1, 2025 through June 30, 2026 (Year 1), and Four Hundred Thousand Dollars and Zero Cents ($400,000.00), for the period of July 1, 2026 through June 30, 2027 (Year 2), for a total contract amount not to exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00) in an amount not to exceed Four Hundred Thousand Dollars and Zero Cents ($400,000.00), for the period July 1, 2025 through June 30, 2026 (Year 1), and Four Hundred Thousand Dollars and Zero Cents ($400,000.00), for the period of July 1, 2026 through June 30, 2027 (Year 2), for a total contract amount not to exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00).
1. Attached hereto is the Chief Finance Officer’s Certification, which states a Partial Certification of Funds in the amount of Four Hundred Thousand Dollars and Zero Cents ($400,000.00), are available in the 2025 Budget, NW051, G25, H250N, Account #71280, the balance to be provided in the 2026 Adopted Budget. The Certification shall be filed, along with the original resolution and the executed contract in the Office of the City Clerk.
2. This Contract is being awarded pursuant to and in compliance with the Non-Fair and Open Procedures of the Pay-to-Play Law, N.J.S.A. 19:44A-20.5 et seq. and the Contractor-Pay-to-Play Ordinance, 2:4-22C.1, and as an exception to the Local Public Contracts Law, N.J.S.A. 40A:11-5 (dd), as the goods and services are for the support or maintenance of proprietary software and associated services.
3. NextGen Healthcare Inc. has represented that the company is qualified, by their training and experience, to provide the required services and have the exclusive right to make and sell these services, which the Department of Health and Community Wellness certifies is essential and necessary to conduct its affairs, pursuant to N.J.S.A. 40A:11-2(39).
4. This Contract is ratified from July 1, 2025 to the date of adoption of this authorizing Resolution.
5. The Contract shall contain language prohibiting any contributions in violation of any state or local law.
6. There shall be no amendments or changes to this Contract without approval of the Municipal Council.
7. There shall be no advance payment pursuant to N.J.S.A. 40A:5-16.
8. The Director of the Department of Health and Community Wellness shall file a copy of the, Business Entity Disclosure Certification, the Determination of Value, and the executed Contract herein authorized, in the Office of the City Clerk and shall be made available for public inspection.
9. If required by State Law, the City Clerk shall provide the appropriate notice of the award of this Contract to the State Comptroller, no later than twenty (20) Business days following such award, in accordance with N.J.S.A52:15C-10 and the Notice of the State Comptroller dated July 1, 2025.
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STATEMENT
This Resolution hereby ratifies and authorizes the Mayor of the City of Newark and/or his designee, the Director of the Department of Health and Community Wellness, on behalf of the City of Newark, to enter into and execute a contract with NextGen Healthcare Inc., 1551 Emancipation Highway, Suite 200, Unit 1256, Fredericksburg, VA, 22401, to provide proprietary system support, maintenance and enhancement software for the benefit of the City’s use of the electronic medical records system known as, “NextGen” management system, in order to maintain the software’s operational health and functionality, and associated services, for a total Contract Amount not to exceed Eight Hundred Thousand Dollars and Zero Cents ($800,000.00), for a period not to exceed twenty-four (24) consecutive months, beginning on July 1, 2025 and terminating on June 30, 2027.