REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 18, 2026
FROM
ANDREW GOLDFRACH, ARMC Chief Executive Officer, Arrowhead Regional Medical Center
SUBJECT
Title
Amendment to Master Service Agreement with Varian Medical Systems, Inc. for Ongoing Access to Software and Maintenance Agreements
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Master Agreement No. 21-618 with Varian Medical Systems, Inc., including non-standard terms, to facilitate the parties’ extension of existing service agreements for the ARIA oncology information system, with no increase to the total contract amount of $134,070, extending the term by 10 months, for a total contract period of August 24, 2021 through June 30, 2027.
(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 it is non-financial in nature. The Amendment extends the contract term with no increase to the Board-approved agreement amount.
BACKGROUND INFORMATION
On August 24, 2021 (Item No. 11), the Board of Supervisors (Board) approved the Master Agreement No. 21-618 (Agreement) with Varian Medical Systems Inc. (Varian), to license the ARIA software interface, which facilitates communication between the Varian ARIA oncology information system (ARIA) and the electronic health record system, at a cost of $34,820, for a total contract period of five years, from August 24, 2021 through August 23, 2026.
On December 14, 2021 (Item No. 10), the Board approved Amendment No. 1 to Master Agreement No. 21-618 with Varian, to license additional ARIA software interfaces, which facilitates communication between the Varian ARIA oncology information system and the electronic health record system, increasing the cost by $99,250, from $34,820 to $134,070, with no change to the contract period, of five years from August 24, 2021 through August 23, 2026.
Amendment No. 2 (Amendment) with Varian will allow ARMC to access software products that will continue to provide ongoing interface of the ARIA software with Epic for processing inbound patient demographic data in the ARIA Oncology Information System for the Radiation Oncology Department. Software products available through this Agreement include the interface to deliver clinical activity information to an external billing system and is compatible with ARMC’s existing equipment.
The software and maintenance service agreements for the Radiation Oncology Department’s ARIA, Eclipse, Clinac, and RPM software systems support patient treatment planning, treatment delivery, patient demographic integration, and billing functions and are fully integrated with ARMC’s existing radiation oncology equipment and electronic health record systems. The maintenance services also provide continued access to software updates, technical support, and system enhancements necessary to maintain operational reliability and regulatory compliance.
The Amendment modifies certain contract terms to non-standard terms. While the parties negotiated these amended terms, Varian would not agree to all County standard terms. The non-standard terms are:
1. The Agreement does not include certain standard County insurance requirements, 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: No waiver of subrogation may allow Varian’s insurer to bring suit against the County, which could result in expenses that exceed the total Agreement amount.
2. Except for indemnity obligations, Varian’s maximum liability to the County is limited under any quotation to the proportion of its relative fault, and for service quotations, to the amount paid in the 12 months prior to the event giving rise to the claim, but in no event greater than $3 million.
• 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.
3. Payment terms are Net 30 days from date of receipt of invoice.
• 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 within 30 days from receipt of invoice may result in a material breach of the Agreement, which could allow Varian to terminate the Agreement and seek other legal remedies, which could exceed the Agreement amount.
ARMC recommends approval of this Amendment, including the non-standard terms, to ensure continued access to the equipment system updates, software maintenance, and technical support provided by Varian and covering the product and service agreements for the Radiation Oncology Department to provide uninterrupted radiation oncology services for County residents.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Supervising Deputy County Counsel, 387-5455) on August 6, 2026; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9044) on July 31, 2026; ARMC Finance (Chen Wu, Finance and Budget Officer, 580-3165) on July 31, 2026; and County Finance and Administration (Jenny Yang, Administrative Analyst, 387-4884) on July 31, 2026.