REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 23, 2025
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Agreement with Medtronic USA, Inc. for Neurological Surgical Products
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 3 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 amount by $1,500,000, from $2,250,000 to $3,750,000 with no change to the term of November 17, 2020 through December 31, 2025.
(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). The cost of $1,500,000 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) 2025-26 budget.
BACKGROUND INFORMATION
ARMC continues to experience an increasing demand for ventriculoperitoneal shunts, catheters, and neurological accessories used in brain and spinal surgical cases. Due to the increased demand, funding for the agreement has been exhausted. The increased demand is a result of an unexpected increase in procedure volume. The proposed amendment will allow ARMC to continue purchasing Medtronic neurological surgical products that are compatible with the Stealth Station™ System (System), which provides advanced visualization to assist with minimally invasive spinal, orthopedic, and neurological procedures. ARMC will consider the unexpected increase in demand during negotiations for a new contract with Medtronic.
On November 17, 2020 (Item No. 14), as the result of a non-competitive procurement, the Board of Supervisors (Board) approved Agreement No. 20-1101 (Agreement) with Medtronic USA, Inc. (Medtronic) for a not-to-exceed amount of $450,000 and a contract period of November 17, 2020, through December 31, 2021.
On October 26, 2021 (Item No. 9), the Board approved Amendment No. 1 to the Agreement, to increase the contract by $800,000 total not-to-exceed $1,250,000) and extend the term through December 31, 2025.
On January 9, 2024 (Item No. 6), the Board approved Amendment No. 2 to the Agreement, to increase the contract by $1,000,000 total not-to-exceed $2,250,000 and clarify the effective term as November 17, 2020, through December 31, 2025.
ARMC recommends approval of this amendment to ensure continued access to essential neurological surgical products that are critical for patient safety and optimal surgical outcomes.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387- 5455) on August 20, 2025; Purchasing (Veronica Pedace, Buyer III, 387-2464) on August 22, 2025; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on August 29, 2025; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on September 4, 2025.