REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 10, 2025
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Contract with Agiliti Health, Inc. for Patient Bed/Gurney Maintenance and Repair Services
End
RECOMMENDATION(S)
Recommendation
Approve Contract with Agiliti Health, Inc., including non-standard terms, for patient bed/gurney maintenance and repair services, and an onsite equipment management program, in the amount of $7,669,326, effective July 1, 2025 through June 30, 2030.
(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 $7,669,326 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 recommended budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The service contract (Contract) with Agiliti Health, Inc. (Agiliti) will allow Agiliti to provide all services for ARMC hospital beds, cribs, gurneys, mattress pumps, and specialty chairs. These services include preventative maintenance, repairs, an onsite equipment management program, and storage for 20 beds maximum with 2 round trips a month for delivery/pickup of beds.
The hospital currently has 456 beds to provide medical treatment to County residents. Both scheduled preventative maintenance and unexpected repair services are needed to ensure the maximum number of beds remain operational at all times. During the COVID-19 pandemic, it was critical to move beds from one area of the hospital to another with more frequency, which led to excessive wear and tear and damage to the hospital’s beds, necessitating an increased need for maintenance and repair.
The Contract with Agiliti was negotiated by the parties and include the following non-standard contract terms or omit the County standard contract terms as follows:
1. For the first 18 months, the County may not terminate the Contract without cause.
• The County standard contract permits the County to terminate the contract at anytime without cause with 30 days written notice.
• Potential Impact: For the first 18 months of the term, the County is unable to terminate the Contract without cause.
2. Payment terms are Net 45 days.
• County standard payment terms are Net 60 days with no interest or late payment penalties.
• Potential Impact: County standard processing time is 60 days or more. Failing to pay Net 45 days may result in a material breach of the Contract, which could allow Agiliti to terminate the Contract and seek other legal remedies
ARMC recommends approval of the Agreement, including the non-standard terms, for the safety, health and services needs of County residents through ensuring that ARMC has appropriate patient bed/gurney maintenance and repair services at the hospital.
PROCUREMENT
The County Administrative Office approved and authorized the release of Request for Proposals (RFP) No. ARMC124-ARMC-5385 on July 11, 2024. The RFP was posted on the County’s Electronic Procurement Network (ePro).
Two proposals were received by the established deadline in response to the RFP. Proposals from the two bidders listed below met the minimum requirements and continued through the evaluation process.
|
Agency |
Agency Address |
|
Agiliti Health, Inc. |
11095 Viking Drive, Suite 300, Eden Prairie, MN 55344 |
|
HERO Business Inc. |
1910 E. Warner Avenue, Suite H, Santa Ana, CA 92705 |
The evaluation committee, with representation from ARMC’s Environmental Service Department, reviewed and evaluated the proposals based on the criteria released in the RFP. The criteria included qualifications and experience, technical Review, References, Presentation, and Cost.
Based on the evaluation criteria, the evaluation committee determined Agiliti best meets the needs of ARMC, and thus, recommends the award of the Contract to Agiliti to provide the patient services. Award and denial letters were sent to all bidders, advising the non-selected bidder of the opportunity to submit a formal written protest based on the criteria in the RFP. No protests were received by the deadline.
The Purchasing Department supports this competitive procurement based on the solicitation mentioned above.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Charles Phan, Supervising Deputy County Counsel, 387-5455) on April 9, 2025; Purchasing (Veronica Pedace, Buyer III, 387-2464) on April 10, 2025; ARMC Finance (Chen Wu, Finance Budget Officer, 580-3165) on May 16, 2025; Finance (Jenny Yang, Administrative Analyst, 387-4884) on May 21, 2025; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) on May 21, 2025.