Value Vet Gets Spay/Neuter Contract

Value Vet just got the contract to run the S/N operation at West LA.

Here is the deal. Value Vet has to do the sterilizations of all animals adopted from the West LA shelter, which is an average of 80 a month.

Value Vet claims a target of 20 surgeries a day, six days a week, which means the contracted work they do for the department can be done in 4 days a month. The other 21 days a month they can do S/N surgeries for the general public, which I assume, part of each will be paid for by department certificates. That would be a speculative additional 420 public spay/neuters a month for their own practice, not for the City.

They have free rent as long as they are the contractor.

They also have a guaranteed minimum number of surgeries.

They can also sell items normally sold in pet stores or at a vet's office.

What does the City get?

2% of Value Vet's gross income, as well as the saving ACT time usually spent transporting the animals to private practices.

The contract proposal does not mention what compensation Value Vet gets for each surgery.

Here are the contract conditions as outlined for rubber stamping on Monday.

Business Plan: Value Vet’s target volume is an average of 20 sterilizations per day, and plan to open 6 days per week. West L.A. adopts an average of just over 80 intact animals per month (based on 2007 statistics, expected to increase substantially since the opening of the new expanded location). Therefore, Value Vet will be able to accommodate West L.A. Care Center’s current sterilization needs. They propose to sell a variety of products, such as leashes, collars, flea medications, etc., and provide services such as vaccinations—added-value services which the panel believe would benefit the public.

They propose to use all new equipment and state that equipment can be obtained on short notice, “within days.” Value Vet proposes to hire a veterinarian for West L.A., and states that they can recruit a quality veterinarian within 60 to 90 days. Based on Value Vet’s proposal and interview, the panel believes that Value Vet’s business plan meets the Department’s needs.

Compensation to City: Value Vet proposes to offer the City no discount on surgeries, but offers a tiered percentage of gross revenues for other services, ranging from 2% in the first year, to 3% in the third year, up to 4.5% in the sixth year if a renewal option is exercised.

The panel believes that, although Value Vet will not discount the Department’s payments for sterilizations, their other compensation, combined with unaccounted-for benefits such as saving staff time and resources (staff no longer will need to transport animals to off-site clinics for sterilization), and the benefit of providing a one-stop shop for adoption and veterinary services, provides the City with appropriate, feasible compensation.

Why is it that the City is not doing this themselves?

How much will they pay Value Vet and Eric Jones subsidizing their private operations vs how much it would cost for the department to do it all themselves?

I thought the original thinking was to have the spay/neuter clinics run by department vets.

1 comment:

Anonymous said...

So Value Vet gets to profit (they are not discounting LAAS animals) off of city property. That's not a problem if the city gets something in return.
The ACT driving time is more like walking time. I think they bring the animals to the vet across the street.