REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 9, 2025
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Appropriation Adjustment to Fund the Contract with Roche Diagnostics Corporation for Rental of Chemistry Equipment
End
RECOMMENDATION(S)
Recommendation
Approve increase of appropriation to Contract No. 20-1060 with Roche Diagnostics Corporation, for laboratory equipment, supplies, reagents, tests, software and related services, increasing the total contract amount by $3,900,000 from $27,647,008 to $31,547,008, with no change to the term from August 17, 2009, and continuing until terminated by either party.
(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 increase of appropriation in the amount of $3,900,000 is funded by State Medi-Cal, Federal Medicare, private insurance, 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 and will be included in future recommended budgets.
BACKGROUND INFORMATION
Approval of the increase of appropriation will allow ARMC to continue utilizing Roche Diagnostics Corporation (Roche) equipment, supplies, reagents, tests, software and related services for the following diagnostic methods: clinical chemistry, immunochemistry (to test for antibodies and antigens in the immune system), and other blood and tissue testing.
On November 18, 2008 (Item No. 87), as the result of an informal solicitation, the Board of Supervisors (Board) approved a Purchase Order (PO) to allocate needed funding for Roche Diagnostics lab supplies and software, for five years for a total not-to-exceed $4,970,711. In December 2008, a Master Agreement (Roche No. 113) was approved by the Purchasing Department (Purchasing), using the Board approved PO, to allocate the funding for lab supplies and software, effective August 17, 2009, when Roche diagnostic equipment began reporting patient billable results.
On November 18, 2014, Purchasing issued Master Blanket Purchase Order (MBPO) No. 151856 for continued purchase of lab supplies, based on competitively procured Vizient Inc. (Vizient) Agreement No. LB0152 – Roche Chemistry/Immuno Supplier Agreement. ARMC utilizes Vizient as a Group Purchasing Organization, an entity that conducts competitive procurements on behalf of ARMC. Purchasing issued MBPO No. 151856 within Purchasing fiscal authority specific to purchase of competitively procured products.
As further funding was needed for Roche products and services, ARMC presented additional Purchase Orders (POs) to the Board for approval. When the County converted to a new financial management system known as SAP, MBPO No. 151856 was transitioned to SAP Contract No. 4400005710. This SAP Contract was later assigned Contract No. 20-1060 by the Clerk of the Board of Supervisors. Since 2020, the Board has executed amendments and appropriated funds through Contract No. 20-1060. Combined, the POs and Contract amendments total $27,647,008 for laboratory equipment, supplies, reagents, tests, software, and related services. Below is a table outlining the timeframe and issuances between the POs, contracts and amendments.
|
Dates |
Method |
Agenda Item(s) |
Amount |
|
December 1, 2008 to August 16, 2014 |
Board approved PO |
November 18, 2008
(Item No. 87) |
$4,970,711 |
|
August 17, 2014 to May, 22, 2017 |
Purchasing approved MBPO |
November 18, 2014 (Purchasing approved
MBPO No. 151856)
|
$3,360,000 |
|
May 23, 2017 to October 26, 2020 |
Board approved POs |
May 23, 2017 (Item No. 22);
January 23, 2018
(Item No. 17) |
$3,575,803 |
|
October 27, 2020 to February 25, 2023 |
Board approved increase to Contract No. 20-1060 |
October 27, 2020
(Item No.14);
April 20, 2021
(Item No. 11) |
$7,240,494 |
|
September 13, 2022 to February 25, 2028 |
Board approved increase to Contract No. 20-1060 |
September 13, 2022 (Item No. 10) |
$8,500,000 |
|
Total |
$27,647,008 |
Contract No. 20-1060 has depleted most of the current funds and ARMC is requesting an increase in appropriation to continue providing care to patients through the diagnostic testing offered by Roche. ARMC is required to purchase supplies and software from Roche directly, as the lab equipment used for testing requires specialty supplies and software available only from Roche.
ARMC recommends approval of the increase of appropriation with Roche to ensure the continued provision of essential Laboratory Chemistry testing at ARMC, thereby supporting the diagnosis and treatment of the County’s patient population and furthering the County’s commitment to the health, safety, and social service needs of its residence.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on July 14, 2025; Purchasing (Veronica Pedace, Buyer III, 387-2464) on July 16, 2025; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on August 15, 2025; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on August 21, 2025.