REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 9, 2024
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with Medtronic USA, Inc. for its Neurological Surgical Products
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Agreement No. 20-1101 with Medtronic USA, Inc., for the purchase of ventriculoperitoneal shunts, catheters and neurological accessories that are compatible with the Stealth Station™ System, increasing the not-to-exceed contract amount by $1,000,000, from $1,250,000 to an amount not-to-exceed $2,250,000, and clarifying that the term of the contract is November 17, 2020 through December 31, 2025.
(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 this item will not result in the use of Discretionary General Funding (Net County Cost). The cost of $1,000,000 is funded by State Medi-Cal, Federal Medicare, private insurances, and other departmental revenue. 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
As a result of the Level I Trauma designation in 2022, ARMC is experiencing a rising increase for ventriculoperitoneal shunts, catheters and neurological accessories used for the more extensive surgical cases. The amendment will allow ARMC to continue to purchase these products that are compatible with the Stealth Station™ System (System) for minimally invasive spinal, orthopedic and neurological procedures. The System provides advanced visualization to assist with locating anatomical structures for open surgical procedures and surgeries that are performed through the skin.
On November 17, 2020 (Item No. 14), the Board of Supervisors (Board) approved Agreement No. 20-1101 (Agreement) with Medtronic USA, Inc. for the contract period of November 18, 2020 through December 31, 2021, for an amount not-to-exceed $450,000, for the purchase of ventriculoperitoneal shunts, catheters, and neurological accessories that are compatible with the System. However, the language in the Agreement indicated that it was effective as of the date last executed, which would be November 17, 2020.
On October 26, 2021 (Item No. 9), the Board approved Amendment No. 1 to the Agreement with Medtronic USA, Inc., for the purchase of ventriculoperitoneal shunts, catheters and neurological accessories that are compatible with the System, increasing the contract amount by $800,000, from $450,000 to an amount not-to-exceed $1,250,000, and extending the contract an additional four years, from December 31, 2021 through December 31, 2025.
ARMC recommends approval of this amendment as the continued purchase of the products will provide for the safety and health needs of County residents by ensuring that surgeries that require precise anatomy location and probe positioning can be optimally performed.
PROCUREMENT
Purchasing continues to support this non-competitive procurement based on equipment/system compatibility. Medtronic is the original equipment manufacturer for the System and products currently in use by ARMC. As such, Medtronic is the only authorized vendor able to provide products for the equipment.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Deputy County Counsel, 387-5455) on November 9, 2023; Purchasing (Veronica Pedace, Buyer III, 387-2198) on December 22, 2023; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on December 13, 2023; Finance (Jenny Yang, Administrative Analyst, 387-4884) on December 18, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on December 18, 2023.