REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 24, 2026
FROM
PETE MENDOZA, Director, Purchasing Department
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with Vizient Inc. for Group Purchasing Membership Services
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 4 to Agreement No. 21-915 with Vizient Inc., for Group Purchasing Membership Services, increasing the agreement amount by $341,231, from $1,449,759 to $1,790,990, and extending the term by two years for a new total agreement term of January 1, 2022 through December 31, 2028.
(Presenter: Pete Mendoza, Director, 387-2073)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
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). Contract expenditures are funded by State Medi-Cal, Federal Medicare, private insurance, and other departmental revenue. Funding sources may change in the future pending legislative activity related to the repeal and/or replacement of the Affordable Care Act. Sufficient appropriation and revenue are included in the Arrowhead Regional Medical Center’s (ARMC) and other participating departments’ 2025-26 budget and will be included in future recommended budgets. Expenditures for numerous contracts used by ARMC and other departments under the Vizient, Inc. (Vizient) Group Purchasing Organization (GPO) catalogue are estimated at $80,000,000 annually but may fluctuate based on actual need. Vizient collects an administrative fee from its contractors based on sales volume and provides a share back, or rebate, to its members based on agency spend. ARMC estimates approximately $1,250,000 annually in rebates, which will be deposited in the ARMC Miscellaneous Revenue account that is used to subsidize hospital operations. Other participating departments have minimal rebates. The benefit to departments in utilizing the GPO is the administrative streamline during the Request for Proposal (RFP) process.
BACKGROUND INFORMATION
On December 7, 2021 (Item No. 46), as the result of RFP No. AGENCY21-PURC-4090, the Board of Supervisors (Board) approved Agreement No. 21-915 with Vizient for a County GPO Associate Membership, enrollment in Vizient Data Management Platform and DataLYNX, and Vizient Savings Actualizer - Supplies with Benchmarking Program, at a not-to-exceed amount of $769,824, for the period of January 1, 2022 through December 31, 2026. The GPO Associate Membership provides users with access to Vizient’s extensive catalogue of competitively solicited, pre-negotiated agreements for various medical supplies and services. Use of the catalogue is free but members are required to pay Vizient’s contracted vendors directly for the supplies and services requested.
On August 23, 2022 (Item No. 11), the Board approved Amendment No. 1 to Agreement No. 21-915 for the provision of a supply chain consultant for an eight-month period, effective on September 1, 2022, increasing the not-to-exceed amount by $182,168, from $769,824 to $951,992, with no change to the term of January 1, 2022 through December 31, 2026.
On February 7, 2023 (Item No. 8), the Board approved Amendment No. 2 to Agreement No. 21-915 for a 36-month subscription to Vizient’s Supplier Diversity Premium Platform, increasing the not-to-exceed amount by $77,273, from $951,992 to $1,029,265, with no change to the term of January 1, 2022 through December 31, 2026.
On August 20, 2024 (Item No. 21), the Board approved Amendment No. 3 to Agreement No. 21-915 for the provision eCommerce Exchange Services, Transaction Management Services, Catalog Services, and an interim Supply Chain Manager, increasing the not to exceed amount by $420,494, from $1,029,265 to $1,449,759, with no change to the term of January 1, 2022 through December 31, 2026.
Approval of Amendment No. 4 will allow the County to extend its membership with Vizient to address a timing mismatch between Vizient’s awarded vendor agreements and the County’s current membership term. Vizient’s vendor agreements extend beyond the County’s existing agreement, and vendors are not willing to honor shorter contract timelines. Extending the membership term for two years will allow ARMC, as one of the County’s primary users of Agreement No. 21-915, to continue contracting with Vizient-awarded vendors while the current Request for Proposals (RFP) process is completed for a new agreement for these services. Additionally, extension of the agreement with Vizient will also allow continued use of their analytics and benchmarking modules which are currently used exclusively by ARMC. The increase of $341,231 covers the two-year extension and may decrease depending on how quickly negotiations are settled for the new agreement.
The current RFP closed on January 7, 2026, and extending the term of Agreement No. 21-915 through December 31, 2028 will provide sufficient time for the County to evaluate the proposal and negotiate a new agreement before this issue arises again. If the new agreement is awarded prior to December 31, 2028, the County will terminate the existing agreement in favor of the newly negotiated terms. Vizient was the sole respondent to the current RFP and services are expected to flow seamlessly to the new agreement as soon as negotiations are completed and the agreement is executed.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387-5455) on January 6, 2026; Arrowhead Regional Medical Center (Jeff Emery, Associate CFO, 777-0708) on January 7, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on January 8, 2025; Risk Management (Stephanie Mead, 909-386-8655) on January 13, 2026; and County Finance and Administration (Kathleen Gonzalez, Administrative Analyst, 387-5412) on February 4, 2026.