REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 20, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Agreement with Milestone Computer Technology, Inc. for the Citrix Hardware Refresh
End
RECOMMENDATION(S)
Recommendation
Approve Agreement with Milestone Computer Technology, Inc., including non-standard terms, for a full refresh of the existing Citrix hardware infrastructure, including related products and services, in the not-to-exceed amount of $8,583,406.96, for the period of October 20, 2026 through October 19, 2031.
(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 cost of $8,583,406.96 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) 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
ARMC utilizes a Citrix environment to provide staff with centralized access to applications and virtual desktops used to perform their daily work. The Citrix environment supports hospital operations by allowing authorized users to access these resources from connected workstations while enabling centralized management of the computing environment.
ARMC’s existing Citrix hardware reached the end of its useful life and became ineligible for support on December 17, 2024. Replacement is needed at this time to address the operational and security risks associated with continued use of unsupported equipment, including limited access to technical support and hardware repairs in the event of failure. The Citrix Hardware Refresh (Project) will provide a full refresh of ARMC’s existing Citrix hardware infrastructure with a modern, secure, and fully supported environment that meets ARMC’s operational, security, and performance requirements. The Project will improve system reliability and performance while supporting the continued availability of ARMC’s information technology systems.
Approval of the agreement with Milestone Computer Technology, Inc. (Milestone) will enable ARMC to complete the Project. Milestone will provide the necessary hardware, software, licensing, warranties, maintenance, and support, including installation and configuration, migration of the existing Citrix environment, and system testing and validation.
The agreement with Milestone (Agreement) incorporates the Nutanix End User License Agreement (EULA), Contract No. 22-671, as approved by the Board of Supervisors (Board) on July 26, 2022 (Item No. 15). Nutanix provides the underlying virtualization, storage, system management, security, and resiliency functions that support ARMC’s Citrix environment. Milestone is providing Nutanix software subscriptions as part of the Project subject to the terms of the EULA.
The Agreement also incorporates the Hewlett Packard Enterprise Company (HPE) End User License - Enterprise Version, Greenlake Statement of Work, and “as a Service” (aaS) Terms for Customers.
The Agreement is the County’s standard commercial contract, which the parties negotiated to include certain non-standard terms specific to the HPE software, including the following:
1. HPE’s liability to the County is limited to the amount paid by the County for the HPE software, excluding HPE’s indemnification obligations, unauthorized use of intellectual property, death or bodily injury caused by negligence, fraud, willful repudiation of the Agreement or any liability that may not be excluded or limited by applicable law.
• The County standard contract does not include a limitation of liability.
• Potential Impact: Claims could exceed the liability cap and the Agreement amount leaving the County financially liable for the excess.
2. There is no termination for convenience with respect to the equipment purchase. The County may terminate the Agreement for non-appropriation of funds provided that the County provides prompt written notice of its intent and an approved board resolution showing non-appropriation of funds as soon as practicable and agrees not to replace any Systems or Services provided under this SOW with functionally similar products or services or to revert to the use of any other products or services to perform any of the functions performed by the Systems or Services provided under the SOW for a period of one (1) year succeeding such termination or non-renewal. The County may substitute or replace the System to the extent reasonably necessary to avoid a material disruption to its essential operations provided that the County obtains the replacement equipment from a source other than HPE only if HPE is unable to provide replacement equipment within the limits of available appropriations.
• County Policy 11-05 requires that the County have the right to terminate the contract, for any reason, with a 30-day written notice of termination without any obligation other than to pay amounts for services rendered and expenses reasonably incurred prior to the effective date of termination.
• Potential Impact: The County can only terminate the Agreement during the term for non-appropriation of funds sufficient to continue the Agreement. Any attempted termination by County without cause could result in payment liability for the full Agreement amount, which could result in payment liability where no funds are available due to lack of allocation or loss of funding.
ARMC recommends approval of the Agreement with Milestone, including the non-standard terms, to complete the Project and support ARMC’s ongoing operational and information technology needs.
PROCUREMENT
The County Administrative Office approved and authorized the release of Request for Proposal (RFP) No. ARMC126-ARMC-6287, which was released on March 9, 2026, to solicit proposals from interested and qualified vendors to provide the hardware, software, licensing, warranties, maintenance, and support necessary for ARMC’s Project. The RFP was posted on the County’s Electronic Procurement Network (ePro). The company names and locations of all vendors who submitted a proposal in response to the RFP are provided below.
|
Agency |
Location |
Amount |
|
Baseline IT Consulting |
San Diego, CA 92130 |
$5,804,008.29 |
|
Milestone Computer Technology, Inc. |
Castle Rock, CO 80104 |
$7,992,788.04 |
The evaluation committee, comprised of ARMC staff, reviewed and evaluated the proposals based on the criteria established in the RFP: qualifications and experience, technical review, cost, references, and interview, presentation, or demonstration. During the evaluation process, one vendor would not guarantee its proposed pricing beyond 30 days.
Based on the evaluation results and available pricing, the evaluation committee determined that Milestone Computer Technology, Inc. best meets ARMC’s needs and is recommended for award to complete the Project. The vendor not recommended for contract award was notified and advised of the opportunity to submit a formal written protest based on the criteria identified in the RFP. No protest letters were received by the deadline.
Purchasing supports this procurement based on the competitive solicitation referenced above.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on September 17, 2026; Purchasing (Veronica Pedace, Buyer III, 387-2464) on September 18, 2026; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9039) on September 18, 2026; Information and Technology (Robert Pitman, Chief Security Officer, 388-0649) on September 23, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on September 25, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on October 1, 2026.