REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 23, 2024
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Agreement with DePuy Synthes Sales, Inc. dba DePuy Synthes Power Tools for Anspach EG1 High Speed Electric Drills
End
RECOMMENDATION(S)
Recommendation
Approve Agreement with DePuy Synthes Sales, Inc. dba DePuy Synthes Power Tools, including non-standard terms, for the purchase and service of two Aspach EG1 High-Speed Electric Drills and accessories, in the amount of $66,475 for the three-year contract period from January 23, 2024 to January 22, 2027.
(Presenter: William L. Gilbert, Director, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of the item will not result in the use of Discretionary General Funding (Net County Cost), as the total cost of $66,476 ($60,813 plus applicable tax and freight) is funded by State Medi-Cal, Federal Medicare, private insurances, and other departmental revenue. Funding sources may change in the future pending any legislative activity related to the repeal and/or replacement of the Affordable Care Act. Adequate appropriation and revenue have been included in the Arrowhead Regional Medical Center (ARMC) 2023-24 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The Agreement with DePuy Synthes Sales, Inc. dba DePuy Synthes Power Tools (DePuy) will allow ARMC to purchase two Anspach EG1 High Speed Electric Drills (Drills) and accessories, as well as three years of service from DePuy. The drills will be used in ARMC operating rooms to provide high cutting precision for Neuro, spine and neurotology surgical procedures.
The terms and conditions of the Agreement are DePuy’s standard commercial contract, which includes terms that differ from the standard County contract and omits certain County standard contract terms. While the parties negotiated certain terms to County standards, DePuy would not agree to all County standard terms. The non-standard and missing terms include the following:
1. All disputes arising under the Agreement must be settled by binding arbitration.
• The County standard contract does not require arbitration.
• Potential Impact: Binding arbitration decisions are not appealable. In addition, disputes that might otherwise be settled in small claims court would incur arbitration costs that could exceed the costs of a small claims action, and the Agreement amount.
2. The Agreement does not include certain County insurance requirements, including limiting the waiver of subrogation.
• County policy requires contractors to carry appropriate insurance at limits and under conditions determined by the County’s Risk Management Department and as set forth County policy and in the County standard contract.
• Potential Impact: The County has no assurance that DePuy will be financially responsible for claims that may arise under the Agreement, which could result in expenses to the County that exceed the total Agreement amount.
ARMC recommends approval of the Agreement, including the non-standard terms, as the specialized equipment will be used to conduct procedures in neurosurgery, neurology surgery, skull base surgery, and spinal surgery. Use of these products will provide for the care of County patients.
PROCUREMENT
Purchasing approves of this non-competitive agreement based on functional specifications. DePuy is the sole manufacturer and distributor of the high-speed drill and dissection tools utilized in the operating room.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Upload, Supervising Deputy County Counsel, 387- 5455) on November 22, 2023; Purchasing (Veronica Pedace, Buyer III, 387-5487) on November 29, 2023; Risk Management (Victor Tordesillas, Director, 386-8623) on December 7, 2023; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on December 22, 2023; Finance (Jenny Yang, Administrative Analyst, 387-4884) on December 28, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387- 5423) on December 29, 2023.