REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
April 29, 2025
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Purchase Orders with Smith and Nephew, Inc. for Endoscopic Instruments and Supplies
End
RECOMMENDATION(S)
Recommendation
Authorize the Purchasing Agent to issue purchase orders to Smith and Nephew, Inc. for endoscopic instruments and supplies in an amount not-to-exceed $1,100,000 for the period of April 29, 2025 through December 31, 2029.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 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 this item will not result in the use of Discretionary General Funding (Net County Cost) as the additional not-to-exceed cost of $1,100,000 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) 2024-25 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
Approval of this item will allow ARMC to continue to purchase endoscopic instruments and supplies from Smith and Nephew, Inc. (Smith and Nephew) to meet the quantities that ARMC estimates it will now need as a result of an increase in patient procedures since being designated as a Level I Trauma facility. The specific products used in a single procedure vary from one patient to another based on the patient’s severity of diagnosis and comorbidities. Each potential product that may be used has its own pricing.
On September 15, 2023, the Purchasing Agent approved Contract SAP 4400023051 as a result of a non-competitive procurement for the purchase of endoscopic instruments and supplies in the not-to-exceed amount of $400,000 for the period of January 1, 2024 through December 31, 2029. This is consistent with County Policy 11-04, which authorizes the Purchasing Agent to approve non-competitive purchases of goods up to $200,000 annually.
The number of endoscopic instruments and supplies needed for procedures at ARMC, has far exceeded what ARMC originally anticipated it would need. ARMC now anticipates that it will need to purchase additional endoscopic instruments and supplies valued at up to $1,100,000 to meet patient demand through December 31, 2029. This amount exceeds the authority of the Purchasing Agent without the approval of the Board.
ARMC recommends the approval of this authorization as the endoscopic instruments and supplies will provide for the safety, health, and social service needs of county residents by ensuring ARMC has sufficient quantities of the products for ARMC surgeons to perform required procedures.
PROCUREMENT
The Purchasing Department continues to support this non-competitive procurement based on proprietary products and equipment compatibility, as Smith and Nephew, Inc. is the only authorized vendor able to supply these products for our owned equipment.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387-5455) on April 2, 2025; Purchasing (Veronica Pedace, Buyer III, 387-2464) on March 26, 2025; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on April 4, 2025; Finance (Jenny Yang, Administrative Analyst, 387-4884) on April 9, 2025 and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on April 10, 2025.