Brigham & Women's Hospital, Inc. Agreement



 Exhibit 10.15 
  
 Brigham & Women’s Hospital, Inc. 
  
 Proposal for Medical 
 Equipment Planning Services 
  
 Initial Submission
March 21st, 2002 
 Revised December 2nd, 2003 
  
 

 







 Table of Contents 
  

			
	 EXECUTIVE SUMMARY
	  	3
		
	 GENERAL OVERVIEW
	  	4
		
	 Source Atlantic At-A-Glance
	  	4
		
	 Project Team
	  	5
		
	 Staff Availability
	  	6
		
	 Case Studies
	  	6
		
	 Sampling of Other Clients
	  	8
		
	 Methodology and Scope of Work
	  	9
		
	 FEE ESTIMATE
	  	12
		
	 Expenses
	  	13
		
	 Exclusions
	  	13
		
	 Deposit & Deliverables
	  	13
		
	 REFERENCES
	  	13

  


					
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 Executive Summary 
  

			
	Project:	  	Center for Advanced Medicine
		
	Project Owner:	  	Brigham & Women’s Hospital
		
	Project Manager:	  	Chuck Labins
		
	Architect:	  	Cannon Design

  
 Back Ground and Understanding:

  
 The Brigham & Women’s Hospital is planning to build a
state-of-the-art ambulatory care facility known as the Center for Advanced Medicine (CAM). This facility will provide approximately 280,000 DGSF of clinical and administrative space in a new 10-story outpatient facility. Within this facility will be
the following initiatives: 
  

	 	•	 	Patient Care Units FL 6 thru 10 (approx.131, 000 DGSF) 

  

	 	•	 	Diagnostics and Treatment FL 3&5 (approx. 46,000 DGSF) 

  

	 	•	 	RAD / ONC (approx. 37,355 DGSF) 

  

	 	•	 	Surgical Procedures (approx. 35,676 DGSF) 

  

	 	•	 	Mechanical and Support (approx. 32,533 DGSF) 

  

					
	Milestones:	  	 	  	 
	 	  	Submission of CON	  	Complete
	 	  	Schematic Design	  	Q2 2004
	 	  	Contract Documents	  	Q2 2004
	 	  	Occupation	  	Q1 2008
			
	Product Lines Covered:	  	 	  	 
	 	  	Medical Equipment	  	 
		
	Products and Services to be provided:	  	 
	 	  	Assessment	  	 
	 	  	Inventory	  	 
	 	  	Planning	  	 
	 	  	Coordination	  	 
	 	  	Procurement	  	 
	 	  	Installation Management	  	 
	 	  	CAD Development and Revision Management	  	 
	 	  	Capital Lease Financing	  	 

  


					
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 General Overview 
  

Source Atlantic is pleased to present the following proposal to provide equipment planning services and Hourglass, Source Atlantic’s Capital Management
Platform, for the upcoming Center for Advanced Medicine Project. The proposal is based on a review of the summary of the project received from Brigham & Women’s Hospital Project Management. 
  
 Included in the proposal are details on the scope of work, a work plan methodology,
descriptions of our services, Hourglass products, pricing and bios on Source Atlantic’s Project Team. 
  
 The services and products may be selected as a whole, or broken out to best meet the needs of Brigham & Women’s Hospital. 
  
 Source Atlantic At-A-Glance 
  
 For the past 15 years Source Atlantic has developed its expertise in meeting the capital
equipment planning, budgeting, procurement and project logistics needs of existing hospitals engaged in planning expansions, renovations and new hospital construction projects. Source Atlantic currently lowers project and capital equipment
acquisition costs by tightly managing the forecasting, planning, scheduling, procurement and delivery of equipment, technology, furniture and related material to healthcare providers. Its mission is to shorten the plan/buy/delivery cycle, reduce
risk, and improve the quality of document storage, task management and information exchange during the project. 
  
 Our established international reputation secures the cooperation of high-profile equipment vendors, architects and contractors, guaranteeing unrivalled quality. Source
Atlantic combines proven and systematic methodologies with team-based communication to ensure comprehensive value throughout the process. 
  

			
	Years in Operation	  	15
		
	Focus	  	Forecasting, Planning, Procurement and Management of Capital Medical Equipment
		
	Corporate Office	  	Rockland, Massachusetts
		
	Support Offices	  	Lexington, South Carolina La Jolla, California
		
	Staff and Officers	  	12

  
  


					
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 Project Team 
  

			
	Bill McGowan	  	President
	Phil Paradis	  	Project Manager
	Lynn Pearson	  	Senior Planner
	Bridget Paradis	  	Planning Support
	Jed Luby	  	Planning Support & Installation Management

  
 William B. McGowan, Jr.

  
 Bill brings over 25 years of sales and consulting experience in
healthcare. Following several years of successful field sales experience for a leading industry medical supplier, Bill sought out opportunities in the hospital construction and healthcare capital equipment market. His hospital design and
construction experience started with The Architect’s Collaborative (TAC) in Cambridge, Massachusetts, where he successfully designed and implemented an application to plan equipment and perform cost estimates. The application was employed for
TAC’s healthcare clients throughout North America and around the globe, including several projects in Europe, the Middle East and Southeast Asia. He then moved to RHA, a South Carolina firm dedicated to equipment planning. At RHA, Bill began
the planning for Healthcare International (HCI) in Scotland where he joined the staff in 1991. During a three-year posting in the UK, Bill managed the entire equipment/furniture procurement effort totaling more than $20 million and employed project
and negotiating tactics that have become his hallmark. In 1995, Bill returned to the States and launched William B. McGowan & Associates, a project planning and equipment procurement consulting firm. After operating independently for several
years, Bill merged operations with RHA to form Source Atlantic. His skill set includes in-depth knowledge of the healthcare capital equipment market, strategic acquisition planning, procurement tactics, and contract negotiation. He has presented to
the United Nations Development Council on how to plan and execute healthcare projects in the developing world and has participated in several industry roundtable forums.  
  
 Lynn Pearson 
  
 Lynn is a Radiologic Technologist by trade has spent the last 20 years effectively managing the resources needed to successfully plan, inventory and install capital
equipment for projects world wide. Lynn possesses a deep understanding of the project planning process and has developed expertise in matching client clinical needs with equipment specifications. Her experience, industry insight, and cross-industry
product knowledge are invaluable to Source Atlantic and clients alike. 
  
 Philip Paradis 
  
 Phil’s experience includes project
management at Rhode Island Hospital (Hasbro Children’s) and St. Elizabeth’s, Brighton, MA. Phil has directed unique, multi-million dollar hospital projects of progressive size and complexity for the past 15 years. In addition, he has held
department head level management positions responsible for the operation, maintenance and planning of hospital physical plants since 1978. Phil started his healthcare experience as a State Inspector of hospitals and nursing facilities in the
Commonwealth of Massachusetts and has experience in architectural firm and construction trades. 
  
 James E. Luby, II 
  
 James
“Jed” Luby began his healthcare work with the Milcare Division of Herman Miller, responsible for the installation management for the New England area. As such, Jed gained tremendous experience in healthcare construction and project
management. 
  


					
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 Jed joined Source Atlantic three years ago, when he managed the installation and logistics for a large healthcare project
in Algeria. In addition to this project, Jed has been involved with The Lanarkshire Hospital project in Scotland, Hanscom Air Force Base in Bedford, Massachusetts, Portsmouth Naval Shipyard, Mid Coast Hospital in Maine and South Shore Hospital in
Weymouth, Massachusetts. 
  
 Staff Availability 
  
 Our staff will be on-site, as needed, throughout the duration of the project. Our current
project schedule will allow for this project to be accomplished within the agreed construction schedule. 
  
 Case Studies 
  
 Mid Coast
Hospital, Brunswick, ME 
  
 A new $37 million community hospital
combining the operations of two facilities. Source Atlantic was engaged to manage the complete process of inventory, planning, specification development, procurement and installation management of all equipment, from monitoring and imaging equipment
to patient care and furniture. The final procurement total was approximately $9 million. 
  
 Greenwich Hospital, Equipment Procurement Project, Greenwich, CT 
  
 The new Greenwich Hospital required equipment for Radiology, Cardiac Cath Lab, Physiological Monitoring, Surgical Lighting, Surgical Gas Systems, Medical Gas Systems, and
Headwalls with Patient Beds and Transport Stretchers. 
  
 With a $12 million
Equipment Budget, Source Atlantic provided: 
  

	 	•	 	Verification of Equipment Budget 

  

	 	•	 	Development of Equipment Specifications 

  

	 	•	 	Procurement Strategy 

  

	 	•	 	Written Requests for Proposal (RFP’s) 

  

	 	•	 	Contract Negotiation 

  

	 	•	 	Management of Orders and Receipt of Equipment 

  

	 	•	 	CAD Services for Equipment Placement 

  
 Phase II of the Greenwich Hospital includes modifications to their existing facility and new building. Expansion of the surgery department, diagnostic and treatment
spaces along with additional beds is planned. Source Atlantic is contracted to provide a complete range of services from early stage planning and budgeting work, through procurement and installation management. 
  
 Johns Hopkins Hospital, Comprehensive Cancer Center, Baltimore, MD

  
 A new $120 million, 470,000 square foot Cancer Center including
Radiotherapy, Surgery, Bone Marrow Transplant, Medical/Oncology Nursing Units, Intensive Care and Outpatient Treatment Services. 
  
 With a $28 million equipment budget, Source Atlantic provided: 
  

	 	•	 	Equipment Inventory 

  

	 	•	 	Project Planning and Budget Development 

  


					
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	 	•	 	Equipment Placement Drawings 

  

	 	•	 	A/E Design Guidance 

  

	 	•	 	Equipment Specification and Acquisition 

  

	 	•	 	Installation Management  

  
 The Carl J. Shapiro Clinical Center, Beth Israel Hospital, Boston, Massachusetts 
  
 A new $60 million, 210,000 square foot Clinical Center adjacent to the hospital campus including Ambulatory Pre-Assessment, Ambulatory
Surgery/O.R. & Recovery, Anesthesia, Cardiac Services/Cardiac Lab, Central Processing, Clinical Laboratories, Dermatology, Hematology/Oncology & Chemo Therapy, Joint Center for Radiation Therapy, Medical Specialties, Neurology Specialties,
Ophthalmology, Orthopedics, Psych/Social Work, Podiatry, Surgical Specialties, Women’s Health, Radiology & Nuclear Medicine and Rehabilitation 
  
 With a $19.5 million equipment budget, Source Atlantic provided: 
  

	 	•	 	An Assessment of Existing Capital Medical Equipment 

  

	 	•	 	A Line Item Budget for New and Existing Equipment 

  

	 	•	 	Specifications for Fixed and Major Moveable Equipment 

  

	 	•	 	CAD Services for Detailed Equipment Placement  

  
 South Shore Hospital, Weymouth MA 
  
 Expansion of the Surgery, Emergency and Central Service Departments required planning and architectural and engineering coordination services to augment work previously
performed by the hospital. Additionally, Source Atlantic developed specifications, issued requests for proposals and negotiated final contract terms for over $10 Million worth of equipment and systems. 
  
 Fletcher Allen Health Care, Ambulatory Care Center, Burlington, VT

  
 A new $300 million center adjacent to the hospital campus
including Ambulatory Pre-Assessment, Ambulatory Surgery/OR & Recovery, Anesthesia, Cardiac Services/Cardiac Lab, Central Processing, Clinical Laboratories, Dermatology, Hematology/Oncology & Chemo- Therapy, Medical Specialties, Neurology
Specialties, Ophthalmology, Orthopedics, Psych/Social Work, Podiatry, Surgical Specialties, Women’s Health, Radiology & Nuclear Medicine and Rehabilitation. 
  
 With over an $80 million equipment budget, Source Atlantic is providing: 
  

	 	•	 	An Assessment of Existing Capital Medical Equipment 

  

	 	•	 	A Line Item Budget for New and Existing Equipment 

  

	 	•	 	Specifications for Fixed and Major Moveable Equipment 

  

	 	•	 	Full Capital Equipment Procurement Services for 5 Years 

  

	 	•	 	Installation Management Services 

  

	 	•	 	CAD Services for Detailed Equipment Placement  

  


					
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 Sampling of Other Clients: 
  

			
	Children’s Hospital Boston, Boston, MA	  	ICU/OR Renovation
		
	Boston City Hospital, Boston, MA	  	Replacement Facility
		
	Novartis, Cambridge, MA	  	New Research Facility
		
	Yale-New Haven Hospital, New Haven, CT	  	ICU/OR Renovation
		
	Al-Amal Cancer Center, Amman, Jordan	  	Design/Build Documents
		
	Princess Margaret Hospital, Swindon, UK	  	Complete Planning
		
	Sonatrach Burn Unit, Algiers, Algeria	  	Planning/Procurement
		
	Sunderland NHS Trust, Sunderland, UK	  	 OB/Gyn Planning


  
  


					
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 Methodology and Scope of Work 
  
 

 
  
 Assessment 
  
 Prior to the conduction of a comprehensive inventory, an assessment of the equipment will be
performed. The results of the assessment are twofold; first, to familiarize planners with the equipment on site and to develop the basis for any cost reductions due to existing equipment that could be relocated. Secondly, experience has proven that
inventory conducted this early is usually futile. Time allows movement of assets, the addition of assets and items lost, requiring another inventory. The assessment permits Source Atlantic to review accurate assets and develop financial criteria
permitting either relocation and/or trade-in against the purchase of new equipment. The assessment team will review all major items of equipment looking to identify those with current and future value. While no asset tag will be affixed, the
location, condition and basic information of a “movable” piece of equipment will be collected. 
  
 Inventory 
  
 The inventory phase consists
of collecting data from all the items of medical equipment with a purchase value of over $500.00 within existing spaces that will move to the new facility. The Source Atlantic teams will collect the following data: 
  
 1. Existing Asset Tag Number 
  
 2. Type of Equipment (Radiology, Surgery, etc.) 

 
 3. Item Description 
  
 4. Manufacturer 
  
 5. Condition / Age 
  
 6. Serial Number 
  
 The data detailing existing equipment will be used for two purposes. The first will be to
lower the quantity of new equipment required by reusing existing equipment in good condition wherever feasible. The other reason is to utilize the existing equipment for leverage when negotiating procurement contracts. Typically, we have seen
vendors extend 20% to 25% of the purchase price of new equipment as a credit, should a client purchase their goods. 
  


					
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 Planning 
  
 The planning portion of the project will commence with the receipt of the latest set of architectural plans and/or space planning documents. During this phase, all
equipment will be planned for each room and detailed on architectural plans or described within the space program. 
  
 Source Atlantic project planning reports: 
  

	 	•	 	List and detail each item of equipment by room or space 

  

	 	•	 	Estimate procurement costs for each item 

  

	 	•	 	Provide procurement totals for each department 

  

	 	•	 	Summarize procurement totals for the project 

  
 In addition, a comprehensive set of reports detailing the services required for each piece of equipment along with manufacturers cut sheets for every item of
“significant equipment”. Significant equipment is defined as anything requiring a service connection or that has a significant space requirement. 
  
 Through meetings with the user focus groups, the equipment submittals will be polished to reflect preferred manufacturers and models/types of equipment. 
  
 Coordination 
  
 This phase is critical to the success of the project. All the equipment information will be presented to the Architect, the hospital’s
facilities department and the consulting engineer. Every room and space will be completely reviewed so that everyone has a clear idea of what goes where, and what utility services are required. Our obligation during this phase is to do whatever is
necessary for the project to succeed with a minimum of rework by the architect and engineer. 
  
 Procurement 
  
 Source Atlantic’s
team works closely with the clinical staff and materials management department to prepare specifications that meet both the clinical need as well as the financial goals of The Client. Following the development of specifications; RFPs are published
to appropriate vendors. Once the proposals have been received, they are analyzed by the Source Atlantic team and then presented to The Client team. Equipment requirements can be aggregated with other Source Atlantic clients to increase buying power.
Negotiations then begin using a process that Source Atlantic has proven to provide the best possible value for our clients. 
  
 Installation Management 
  
 The culmination of the planning and procurement effort is to assure the client that what has been purchased is installed in the correct space and in good operating condition. Our experience has proven the only way of
guaranteeing this, is by placing a Source Atlantic staff member on-site to manage the process. In addition to directing the installation process, the manager will be responsible for general crisis resolution, scheduling of deliveries and the
coordination of any vendor provided installation. We find the project progresses very smoothly with the placement of an on-site manager. 
  
 Capital Lease Financing 
  
 While this core service is directed at lease financing for capital equipment, we offer a diversified range of solutions able to accommodate financing between $ 1,500 to $ 100 million. 
  
 CAD Development and Revision Management 
  
 During the planning phase of our work, Source Atlantic will begin the placement of equipment
in all rooms where medical equipment is planned. The equipment placed will include the significant equipment, or that equipment having significant footprint and/or service connection. CAD work will be limited to “Plan View” only and will
be furnished in an Auto Cad version 2000 format to the architect for review. We have planned for two revisions to be included after initial submittal. Source Atlantic expects the architect to supply Auto Cad version 2000 background floor plans with
any equipment planned on a separate layer. 
  


					
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 Hourglass 
  
 Hourglass is a web-based suite of tools designed to manage Capital Equipment Planning and its associated Budgeting and Procurement. Hourglass is comprised
of three modules and is described below. 
  
 Request
Management System (RMS) 
  
 RMS automates the capital
equipment and project budgeting process. Users are able to source products via the Medical Equipment Directory (MED), and then easily request capital items. A complete reporting system allows the information requested throughout the system to easily
be accessed and reports generated. 
  
 Capital Allocation
Planner (CAP) 
  
 CAP enables the forecasting of small
and large-scale projects. Additionally, it allows the entire project team members immediate access to the information and resources needed to effectively plan and complete projects on time and under budget. This includes document sharing (including
all equipment lists) among the appropriate team members, facilitating better management of the logistics portion of the project. Additionally, the system permits quick (running) updates, a complete audit trail of any changes and immediate (design
team) access to all “cut sheets” and engineering data. 
  
 Medical Equipment Directory (MED) 
  
 MED
is a capital equipment catalog comprised of over 10,000 items. It includes all cut sheets, images and side-by-side comparisons of specifications, pricing and environmental requirements. 
  


					
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 St. Elizabeth’s Hospital 
  

	
	 
	 •      Contact

	    Mr. John Holiver

	    Chief Operating Officer

	    617.789.3000


  
 We look forward to the opportunity to
work with the Brigham and Women’s project team. Should you have any questions or comments regarding this proposal, please do not hesitate to contact me at 781.871.8500. 
  
 Sincerely yours, 
  

			
	

	  	12/02/2003
	William B. McGowan Jr.	  	Date
	President	  	 

  
 Signature will confirm acceptance of
this proposal in its entirety. This proposal will serve as the governing document until such time as an official service agreement can be drafted and mutually agreed upon. 
  
 Accepted on behalf of Brigham and Women’s: 
  

			
		
	 By:
	 	 /s/ Chuck Labbins


	 Name
	 	 Chuck Labbins


	 Title:
	 	 Senior Project Manager



  


					
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