REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
December 16, 2025
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Contract with Johnson & Johnson Health Care Systems Inc. for Craniomaxillofacial Implant Products
End
RECOMMENDATION(S)
Recommendation
Approve Contract with Johnson & Johnson Health Care Systems Inc., for craniomaxillofacial implants for surgical patients, including non-standard terms, at the rates set forth in the contract, not to exceed an aggregate amount of $3,630,000, for the period from January 1, 2026 through December 31, 2028.
(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 aggregate cost of $3,630,000 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 and will be included in future recommended budgets.
BACKGROUND INFORMATION
Approval of the contract with Johnson & Johnson Health Care Systems Inc. (J&J) will allow for the purchase of soft tissue and skeletal structure of the skull and face implants, collectively known as craniomaxillofacial implants (CMF) for certain surgical patients at ARMC. ARMC conducts elective and non-elective surgeries. Increased demand for CMF implant procedures requires that ARMC have sufficient supply of products. After conducting a competitive process, ARMC awarded contracts to three vendors. The total aggregate amount not-to-exceed of $3,360,000 will be distributed among them on an as needed, on an as available basis.
The Contract with J&J is the County standard contract, as negotiated between the parties to includes terms that differ from the standard County contract and omits certain County standard contract terms. J&J would not agree to all County standard terms. The non-standard and missing terms include the following:
1. J&J may assign the Contract upon notice to the County and, but the County’s approval.
• The County standard contract requires that the County must approve any assignment of the contract.
• Potential Impact: J&J could assign the Contract 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 Contract.
2. The Contract has modified insurance terms including limiting naming of the County as additional insured to the commercial general liability policy only, conditioning the waiver of subrogation on where permitted by law or allowed by insurance, restricting making J&J’s insurance primary and non-contributory to claims based on J&J’s sole negligence, and deleting the insurance review provision.
• 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 conditions on the waiver of subrogation may allow J&J’s insurer to bring suit against the County for the exempt types of claims, and the modification to the additional insured provision limits the County’s ability to recover losses for certain types of claims, both of which could result in expenses that exceed the total Contract amount.
3. Venue for disputes arising under the Contract is in the Federal District Court for the Central District of California or if that court lack jurisdiction, the Superior Court of California, San Bernardino County, San Bernardino District.
• County Policy 11-05 requires venue for disputes in Superior Court of California, County of San Bernardino, San Bernardino District.
• Potential Impact: Having a venue in the Federal District Court for the Central District of California may result in additional expenses that exceed the amount of the Contract.
ARMC recommends approval of the Contract, including the non-standard terms, to enable ARMC to purchase CMF products used in surgery to provide support, stability, and reconstruction for facial bones or skull injuries, enhancing both healing and aesthetics to patients requiring reconstruction and restoration to treat injuries, defects, and deformities of the skull and face.
PROCUREMENT
On March 3, 2025, Invitation to Bid No. ARMC125-ARMC-5764 (ITB) for Craniomaxillofacial (CMF) Implants was released through the County’s Electronic Procurement (ePro) network. Five proposals were received in response to the ITB. Of the five proposals received, one was deemed unresponsive as the proposal did not include information requested in the ITB.
Proposals were evaluated based on the criteria of best value. It was determined that three vendors best met ARMC’s needs and recommended them for a contract. The company names and locations of all proposers who submitted a proposal in response to the RFP are provided below.
|
Bidder |
Location |
|
XTY Agency |
Fontana, CA |
|
Stryker Sales, Inc. |
Portage, MI |
|
Acumed |
Hillsboro, OR |
|
Biomet Microfixation, LLC dba Zimmer Biomet CMF & Thoracic |
Jacksonville, FL |
|
Johnson & Johnson Health Care Systems, Inc. |
Raritan, NJ |
On October 3, 2025, a tentative award letter was sent to Acumed, Biomet Microfixation, LLC dba Zimmer Biomet CMF & Thoracic, and Johnson & Johnson. 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 the Purchasing Department (Purchasing) within 10 calendar days of the non-selection letters. One protest was received, and it was denied by the Purchasing Compliance Officer. Three vendors (Johnson & Johnson, Acumed, and Biomet Microfixation LLC dba Zimmer Biomet CMF & Thoracic) were awarded under the same ITB. The not-to-exceed contract amount for all three vendors is $3,630,000, and two contracts will be executed by Purchasing under County Policy No. 11-04 and the Procurement Manual, as they do not have non-standard terms. Purchasing approves this procurement based on the formal, competitive solicitation referenced above.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on November 20, 2025; Purchasing (Veronica Pedace, Buyer III, 387-2464) on November 20, 2025; Risk Management (Greg Ustaszewski, Staff Analyst II, 386-9039) on September 2, 2025; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on November 21, 2025; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on November 26, 2025.