REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 1, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Agreements with B. Braun Medical Inc. for Infusion System Equipment, Disposable Products and Solutions, and Software Licenses and Services
End
RECOMMENDATION(S)
Recommendation
1. Approve the following agreements with B. Braun Medical Inc., through the Capital Equipment Supplier Agreement for IV Pumps, Tubing and Solutions between B. Braun Medical Inc. and Vizient Supply, LLC (Vizient Contract No. IV0152) for the purchase of infusion pump equipment, related accessories, disposable products and solutions, software licenses, implementation services, and training:
a. Infusion Systems Agreement, including non-standard terms, for the one-time purchase of intravenous infusion pump equipment, in the total contract amount of $2,127,123.60, plus applicable taxes and freight charges.
b. Acute Care Letter of Commitment, including non-standard terms, for the purchase of disposable products and solutions for use with intravenous infusion pumps, in the total contract amount of $9,701,622, for the initial contract period of September 1, 2026 through December 31, 2027, automatically renewing for two additional two-year periods.
2. Approve Amendment No. 2 to Contract No. 4400032078, including non-standard terms, with B. Braun Medical Inc., through the Capital Equipment Supplier Agreement for IV Pumps, Tubing and Solutions between B. Braun Medical Inc. and Vizient Supply, LLC (Vizient Contract No. IV0152), to add 1,141 DoseTrac Enterprise licenses, electronic medical record integration, and related annual maintenance, increasing the contract amount by $308,960, from $111,550 to $420,510, with no change to the existing license term, which begins on the first day of the month following shipment and continues until the County ceases to possess the associated equipment.
(Presenter: Andrew Goldfrach, ARMC Chief Executive Officer, 580-6150)
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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 total cost of $12,137,705.60, plus applicable taxes and freight charges, within ARMC’s approved budget, is funded by State Medi-Cal, Federal Medicare, private insurance, and other departmental revenue. The total includes the one-time purchase of infusion system equipment and related accessories and ongoing costs of disposable products, solutions, software licenses, and related maintenance. 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) 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The Infusion Systems Agreement (Agreement) will enable ARMC to replace its existing Baxter Sigma Spectrum intravenous (IV) pump platform, which has reached end of life and will no longer be supported by the manufacturer, with B. Braun Medical Inc. (B. Braun) infusion system equipment. The infusion pumps are used for the controlled administration of intravenous fluids.
The Agreement provides for the purchase of 1,100 Infusomat™ Space 2nd Generation Wireless Pump Kits, 100 SpaceStations with SpaceCom Kits, 100 SpaceStations, 41 wireless upgrades, two MRI SpaceStations, IV poles, related accessories, 1,141 software licenses, and onsite biomedical training for the Biomed Department. The Agreement is a purchase agreement and does not contain a fixed term; equipment delivery is anticipated approximately 16 to 18 weeks after B. Braun accepts a valid purchase order.
The Infusomat™ Space infusion devices and related accessories include a one-year manufacturer warranty beginning on the date of implementation. During the warranty period, B. Braun will repair or replace, at its option, equipment found to have defects in material or workmanship, subject to the terms and exclusions of the product warranty. The one-time cost of the infusion system equipment and related accessories is $2,127,123.60. The vendor’s quotation does not include taxes and freights charges. These costs will be paid from the department’s existing approved budget, and no additional appropriation is requested.
The Agreement is Exhibit D-1 to the Capital Equipment Supplier Agreement for IV Pumps, Tubing and Solutions between B. Braun and Vizient Supply, LLC (Vizient Contract No. IV0152). While the parties negotiated certain terms, B. Braun would not agree to all County standard terms. The non-standard and missing terms are:
1. The Agreement does not include certain standard County insurance requirements, including Policies Primary and Non-Contributory, Severability of Interests, Acceptability of Insurance Carrier, Deductibles and Self-Insured Retention, Failure to Procure Coverage, and Insurance Review.
• 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 limited assurance that B. Braun will be financially responsible for claims that may arise under the Agreement, which could result in expenses to the County that exceed the total Agreement amount.
2. B. Braun’s maximum liability to the County is limited to the purchase price of the equipment from which the claim arises, excluding B. Braun’s indemnification obligations, gross negligence, willful misconduct, or violation of law.
• The County standard contract does not include a limitation of liability.
• Potential Impact: Claims could exceed the liability cap and the Agreement amount, leaving the County financially liable for the excess.
The Acute Letter of Commitment (LOC) establishes pricing and purchasing terms for B. Braun infusion system disposables, including IV administration sets, dedicated pump sets, IV solutions, drug delivery products, nutrition products, premixed drugs, irrigation solutions, and related accessories. These disposables are compatible with the new infusion pump platform and are required for the safe operation of the infusion system and continuity of patient care.
ARMC estimates disposable-product expenditures at approximately $1.94 million annually based on anticipated usage. The total contract amount of $9,701,622 is based on approximately five years of anticipated purchases of disposable products and solutions at contracted pricing, including purchases during the renewal periods. Actual annual expenditures will vary based on patient volume, product utilization, and clinical needs. Under the LOC, ARMC and each covered facility are required to purchase at least 80% of their respective annual requirements for the applicable product categories from B. Braun during each contract year.
The LOC is Exhibit D-8 to the Capital Equipment Supplier Agreement for IV Pumps, Tubing and Solutions between B. Braun and Vizient Supply, LLC (Vizient Contract No. IV0152). While the parties negotiated certain terms, B. Braun would not agree to all County standard terms. The non-standard and missing terms are:
1. Governing law is the Commonwealth of Pennsylvania.
• The County standard contract requires California governing law.
• Potential Impact: The LOC will be interpreted under Pennsylvania law. Any questions, issues or claims arising under the LOC will require the County to hire outside counsel competent to advise on Pennsylvania law, which may result in fees that exceed the total LOC amount.
2. The LOC does not require B. Braun to meet the County’s insurance standards as required pursuant to County Policies, 11-05, 11-07, and 11-07SP, including the waiver of subrogation.
• 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 limited assurance that B. Braun will be financially responsible for claims that may arise under the LOC, which could result in expenses to the County that exceed the total LOC amount. No waiver of subrogation may allow B. Braun’s insurer to bring suit against the County, which could result in expenses that exceed the total LOC amount.
3. There is no termination for convenience without penalty. If the County terminates the LOC prior to the end of the term, the County agrees to pay 25% of the difference between (a) the aggregate dollar amount of each Product, including capital equipment Products, required to be purchased and paid for by the County during the term of this LOC, and (b) the aggregate dollar amount of each Product actually purchased and paid for by the County during the term of the LOC.
• 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: Upon any termination by either party regardless of cause, the County is required to pay liquidated damages, which could result in payment liability where no funds are available due to lack of allocation or loss of funding.
On February 1, 2024, County, under the Purchasing Agent’s delegated authority, entered into the Software License and Services Agreement (SLSA) (SAP Contract No. 4400032078), and related DoseGuard Software License with B. Braun under Vizient Contract No. IV0152, in the amount of $1,000. The SLSA does not have a fixed calendar end date; the license term begins on the first day of the month following shipment of the applicable software and continues until the County ceases to possess the associated equipment.
On June 29, 2026, the County, under the Purchasing Agent’s delegated authority, executed Amendment No. 1 to the SLSA and DoseGuard Software License under Vizient Contract No. IV0152 to add 1,100 Drug Library Software and Services - Space 2nd Generation kits, increasing the contract amount by $110,550, from $1,000 to $111,550.
The proposed Amendment No. 2 adds 1,141 DoseTrac Enterprise licenses, Electronic Medical Record (EMR) integration, and related annual maintenance. The $308,960 increase includes $208,460 for software and EMR integration and $100,500 for three years of annual maintenance through December 31, 2029.
The SLSA is Exhibit D-3 to the Capital Equipment Supplier Agreement for IV Pumps, Tubing and Solutions between B. Braun and Vizient Supply, LLC (Vizient Contract No. IV0152). While the parties negotiated certain terms, B. Braun would not agree to all County standard terms. The non-standard and missing terms are:
1. B. Braun’s maximum liability to the County under the SLSA is limited to the total license fees paid, excluding indemnification obligations and claims arising from B. Braun’s gross negligence, willful misconduct, or violation of law.
• The County standard contract does not include a limitation of liability.
• Potential Impact: Claims could exceed the liability cap and the Agreement amount, leaving the County financially liable for the excess.
2. The SLSA does not require B. Braun to meet the County’s insurance standards as required pursuant to County Policies, 11-05, 11-07 and 11-07SP, including the waiver of subrogation.
• 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 limited assurance that B. Braun will be financially responsible for claims that may arise under the SLSA, which could result in expenses to the County that exceed the total SLSA amount. No waiver of subrogation may allow B. Braun’s insurer to bring suit against the County, which could result in expenses that exceed the total SLSA amount.
ARMC recommends approval of the Agreement, LOC, and Amendment No. 2, to provide for the health and safety of County residents by ensuring the hospital has access to infusion pump equipment, compatible disposable products and solutions, and related software necessary for the safe administration of intravenous fluids and continuity of patient care.
PROCUREMENT
On December 7, 2021 (Item No. 46), the Board of Supervisors approved Master Services Agreement No. 21-915 with Vizient, Inc. for Group Purchasing Organization (GPO) membership, as a result of Request for Proposals (RFP) No. AGENCY21-PURC-4090. The current term of the agreement is from January 1, 2022 through December 31, 2028. Vizient offers competitive agreements based on RFPs evaluated using the American Bar Model Procurement Code, which is in compliance with County Procurement Policy 11-04. Vizient allows ARMC access to an extensive catalog of competitive, pre-negotiated agreements for various medical supplies and services.
After reviewing Vizient for vendors that provide IV pumps, tubing, infusion solutions, related software, B. Braun was chosen because its products and services met ARMC’s clinical and operational requirements and were available through a competitively procured, pre-negotiated Vizient agreement. The Purchasing Department continues to support this competitive procurement based on Vizient Supply, LLC Agreement No. IV0152 with B. Braun, effective January 1, 2025 through December 31, 2029.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on August 25, 2026; Purchasing (Veronica Pedace, Lead Buyer, 387-2464) on August 7, 2026; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9039) on July 16, 2026; Innovation and Technology (Robert Pittman, Chief Security Officer, 388-0539) on July 10, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on August 10, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on August 20, 2026.