REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 19, 2025
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Agreements with Strata Decision Technology, LLC and Multiview Corporation for Cost Accounting, General Ledger and Fixed Asset Systems
End
RECOMMENDATION(S)
Recommendation
1. Approve Agreement with Strata Decision Technology, LLC, to provide a cost accounting system to interface with various software platforms for cost accounting, operating budgeting and management reporting in the not-to-exceed amount of $2,116,067, for a contract period of five years, beginning from the date of execution.
2. Approve Agreement with Multiview Corporation, to provide general ledger and fixed asset systems to interface with various software platforms for the development of patients accounting, financial statements, and accounting of fixed assets in the not-to-exceed amount of $532,800, for a contract period of five years, beginning from the date of execution.
3. Direct the Clerk of the Board of Supervisors to maintain confidentiality of the Agreement with Strata Decision Technology, LLC pursuant to Section 9.2 of Attachment B to the agreement.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The cost of $2,648,867 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 and will be included in future recommended budgets.
BACKGROUND INFORMATION
ARMC is currently utilizing a 20-year-old version of Meditech for its general ledger, budget, and fixed asset modules. Most of the data is manually uploaded through Microsoft Excel, or accessed from County payroll, and procurement systems. Budgets are manually keyed in from templates by the ARMC accounting staff. Monthly operating reports are then created by a download into Excel once all uploads are completed. The contracts with Strata Decision Technology LLC (Strata) and Multiview Corporation (Multiview) will allow ARMC to replace the general ledger and fixed asset system and add a cost accounting system to allow for more efficient financial accountability and streamlined processes.
The Strata Agreement is the County’s standard IT contract, as negotiated between the County and Strata, which includes terms that differ from the standard County contract and omits certain County standard contract terms. The non-standard and missing terms include the following:
1. Strata may assign the Strata Agreement upon notice to the County, but without the County’s consent.
• The County standard contract requires that the County must approve any assignment of the contract.
• Potential Impact: Strata could assign the Strata Agreement to a third party or business with which the County is legally prohibited from doing business due to issues of Federal debarment or suspension and conflict of interest, without the County’s knowledge. Should this occur, the County could be out of compliance with the law until it becomes aware of the assignment and terminates the Strata Agreement.
2. Strata’s maximum liability to the County is limited to the greater of $2,000,000 of the total amount paid under the Strata Agreement, excluding claims arising pursuant to indemnification obligations of Strata’s gross negligence, violation of law or willful misconduct.
• The County standard contract does not include a limitation of liability.
• Potential Impact: Claims could exceed the liability cap and the Strata Agreement amount leaving the County financially liable for the excess.
3. The County may not terminate the Strata Agreement for convenience. The County may terminate the Strata Agreement in the event funds are not appropriated by the legislature or applicable public governing body for fees due to Strata hereunder with a thirty (30) day written notice of termination, and reasonable documentation evidencing such non-appropriation.
• 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 Strata Agreement during the term for an uncured breach by Strata or in the event funds are not appropriated. Any attempted termination by County without cause could result in payment liability for the full Strata Agreement amount, which could result in payment liability where no funds are available due to lack of allocation or loss of funding.
The Multiview Agreement is the County’s standard IT contract, which includes non-standard terms, as negotiated by the parties. The non-standard terms include the following:
1. Multiview may assign the Multiview Agreement without prior County approval due to operation of law, corporate reorganization, consolidation, merger, or sale of all of its assets, provided that advance notice is given to the County upon 10 days’ prior written notice.
• The County standard contract requires that the County must approve any assignment of the contract.
• Potential Impact: Multiview could assign the Multiview Agreement without the County’s consent to a third party or business with which the County is legally prohibited from doing business due to issues of Federal debarment or suspension and conflict of interest. Should this occur, the County could be out of compliance with the law until it becomes aware of the assignment and terminates the Multiview Agreement.
2. The Multiview Agreement does not require Multiview to meet the County’s insurance standards as required pursuant to County Policies, 11-05, 11-07 and 11-07SP.
• The County standard contract requires contractors to carry appropriate insurance at limits and under conditions determined by the County’s Risk Management Department.
• Potential Impact: The County has no assurance that Multiview will be financially responsible for claims that may arise under the Multiview Agreement, which could result in expenses to the County that exceed the total Multiview Agreement amount.
3. Multiview’s maximum liability to the County is limited to the lesser of $500,000 or the amount paid by the County under the Multiview Agreement, except for claims arising from Multiview’s indemnification obligations, gross negligence, or willful misconduct.
• The County standard contract does not include a limitation of liability.
• Potential Impact: Claims could exceed the liability cap and the Multiview Agreement amount leaving the County financially liable for the excess.
4. There is no termination for convenience. The County may terminate the Multiview Agreement after engaging in the informal dispute process if Multiview assigns the Multiview Agreement to an entity with whom the County may not legally conduct business. The County may terminate the Multiview Agreement after giving Multiview written notice and allowing Multiview 30 days to respond or cure: (a) if Multiview becomes debarred, suspended, or declared ineligible to perform the services by any federal department or agency; (b) if the County determines that Multiview is a target of economic sanctions under Executive Order N-6-22, Russia Sanctions; or (c) if the County discovers that Multiview made a material misstatement or misrepresentation that would require the County to engage in a new competitive bidding process. The County may terminate the Multiview Agreement for material breach after engaging in the informal dispute process for 60 days without resolution, then subsequently giving 30 days’ written notice and an opportunity for Multiview to cure the material breach. The County may terminate the Multiview Agreement immediately for material breach of the Business Associate Agreement.
• The County standard contract gives the County 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: This is an acceptable alternative provision under County Policy 11-05, which provides, “May approve a modified termination for convenience clause that requires extended notice, or termination for convenience may be eliminated if other termination provisions apply that allow the County to terminate the contract, such as for cause or loss of funding.”
Strata claims a certain provision in the Agreement and the line item pricing are trade secrets under Section 1060 of the California Evidence Code, and therefore exempt from disclosure pursuant to California Government Code Section 7930.205.
ARMC recommends approval of the contracts with Strata and Multiview, including the non-standard terms, to provide for the safety, health and social services needs of County residents by ensuring ARMC has access to cost accounting, general ledger and fixed asset systems.
PROCUREMENT
The County Administrative Office approved and authorized the release of Request for Proposals (RFP) No. ARMC125-ARMC5592 on October 15, 2024. The RFP was posted on the County’s Electronic Procurement Network (ePro).
Seven proposals were received by the established deadline in response to the RFP and five were deemed responsive. Proposals from the five bidders listed below met the minimum requirements and continued through the evaluation process.
|
Agency |
Address |
|
Apps Associates |
289 Great Road, Suite 308 Acton, MA 01720 |
|
Creoal-SMX |
41 University Dr. Suite 400 Newton, PA 18940 |
|
MIPRO |
1100 Corporate Office Dr., Suite 100 Milford, MI 48381 |
|
Multiview Corporation |
8 The Green, Suite # 16088 Dover DE 19901 |
|
Strata Decision Technology, LLC |
200 E Randolph, 49th Floor Chicago, IL 60601 |
Based on Strata and Multiview exceeding ARMC’s requirements, the evaluation committee determined that Strata and Multiview met the needs of ARMC. Two vendors were chosen since one vendor could not meet all the needs of the County.
On July 2, 2025, a tentative award letter was sent to Strata and Multiview. On that same day, the unsuccessful agencies were notified in writing that they may protest the qualification review by submitting a formal protest letter to Purchasing within 10 calendar days of the non-selection letters. No protests were received.
The Purchasing Department supports this competitive procurement based on the solicitation mentioned above.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on July 31, 2025; Purchasing (Veronica Pedace, Buyer III, 387-2464) on August 1, 2025; Risk Management (Gregory Ustaszewski, Staff Analyst, 386-9008) on July 29, 2025; Innovation and Technology Department (Lynn Fyhrlund, Chief Information Officer, 388-5501) on June 18, 2025; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on July 29, 2025; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on August 1, 2025.