25-0065_SSJF _SMS-Soprano SPO signed.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 7

Bulletin Reference Number B-47851

Requesting Agency/University Illinois State Toll Highway Authority

Sole Source Justification Form - Part I Section I - General Information

Department/Bureau/Section: Department of Business Systems

Need Identified Date: 03/01/2025 Supply/Service Need By Date: 06/01/2025

Project Title: Short Message Service (“SMS”) Services

Vendor: Soprano Design Limited

Provide a description of the supplies or services required:

The Tollway requires continued Short Message Service ("SMS") text messaging capabilities to communicate real-time account notifications to its over 9 million customers. This request is for a nine-month sole economically feasible source ("SEFS") contract with Soprano Design Limited ("Soprano") to bridge the gap until the Tollway transitions to a longer term solution. The requested SEFS contract covers SMS platform access, application support, short code leasing, and per-message delivery under a tiered pricing model.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 240,000

Will this Sole Source amend a Professional or Artistic Services contract? Yes No

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Type: New Sole Economically Feasible Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: 06/01/2025

Estimated Contract End Date: 02/28/2026

Number of Potential Renewals:

Length of Each Renewal in Months:

Total Value of All Renewals:

If a Term Contract, does the term, including renewals, exceed 12 months? Yes No

Section III - Funding Source Select the type of funding to be used (Check all that apply): State Appropriate Funds Federal Funds Other (Explain):

The Tollway does not operate on State-appropriated funds. Procurements are funded through toll revenue.

Section IV - Sole Source Justification

This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)

Compatibility of Equipment, Accessories, Replacement Parts or Service

Are there secondary justification(s) for this sole source? Yes No

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Bulletin Reference Number B-47851

Requesting Agency/University Illinois State Toll Highway Authority

Section V - Purchase History

Has the Agency or University Purchased these supplies or services in the past? Yes No

Term Term From Term To Value Description Contract Number Type

1 09/01/2024 08/31/2025 98,880 Short Message Service (SMS) Services - SPSS award to Soprano Design Limited 24-0121 (P-70596) Small Purchase

2 03/24/2023 03/23/2026 200,000 Short Message Service (SMS) Services -release off master with AT&T Mobility National Accounts LLC

17-0177 (P-367:7) RFP

3 03/24/2020 03/23/2023 0 Short Message Service (SMS) Services -release off master with AT&T Mobility National Accounts LLC

17-0177 (P-367:7) RFP

4 10/30/2017 03/23/2020 245,200 Short Message Service (SMS) Services -release off master with AT&T Mobility National Accounts LLC

17-0177 (22037605) RFP

If more than 10, or if other comments, explain:

The Tollway initially contracted for Short Message Service (SMS) Services via a Department of Innovation & Technology’s (“DoIT”) master contract (#CMS793372S) on 10/30/2017 with AT&T Mobility National Accounts LLC ("AT&T"). The Tollway's subsequent orders against this master contract extended Tollway Contract 17-0177 through 03/23/2026 with an upper dollar limit not to exceed $445,200.00.

Since inception, AT&T completely outsourced the scope of the SMS services to Soprano Design Limited ("Soprano"). The Tollway has worked directly with Soprano from initial development, interface, and implementation of services on the Soprano platform since contract initiation in late 2017.

AT&T informed the Tollway in 2024 of the retiring of the text messaging scope of work from their master contract, specifically the business-to-consumer application Tollway requires and utilizes. The sunset for this scope of work was 08/31/2024.

The Tollway then entered into a one-year small purchase with sole source conditions contract directly with Soprano (Tollway Contract 24-0121).

Section VI - Business Rationale

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Bulletin Reference Number B-47851

Requesting Agency/University Illinois State Toll Highway Authority

1. Provide a detailed explanation of the need for the supplies or services:

The Tollway has experienced unprecedented growth in customer opt-ins to text messaging services, reflecting a shift in customer preference for real-time mobile communications. As a result, funds from the existing one-year small purchase contract with Soprano have been exhausted earlier than expected. Because the Tollway is transitioning to a longer-term solution that will require 4–6 months of interface development and implementation, this new sole economically feasible source ("SEFS") contract with Soprano is essential to maintain uninterrupted services during the transition period and avoid major operational disruptions.

Text messaging services are critical to the Tollway’s customer communication strategy. Messages include notifications for low balances, payment issues, expiring credit cards, and other account-related updates. Without this service, the Tollway risks reduced customer satisfaction, delayed payments, increased delinquent accounts, and higher operational costs. This service also supports green initiatives by reducing reliance on postal mail, which currently exceeds $5 million annually. SMS helps deliver time-sensitive information immediately, improving responsiveness and lowering administrative costs.

This request is a time-sensitive, strategic measure to preserve continuity of customer communication services using an existing, well-integrated platform. The Tollway’s prior $350,000 investment in system integration, coupled with Soprano’s operational knowledge and zero-cost price escalation, makes this a prudent and efficient SEFS procurement. This short-term SEFS contract will maintain essential services while allowing time for transitioning to a longer-term solution.

2. Provide a list and describe in detail the specifications required to satisfy the need:

Short Message Service (SMS) / text messaging includes the ability to support real-time, secure communications with customers across all mobile networks and carriers. The services include high-volume SMS delivery with millisecond-level throughput, robust integration with the Tollway’s back-office system via web services and file-based interfaces, and the ability to process message types tied to account management, billing, and transponder activity. The vendor must also support repeat delivery attempts, secure VPN connectivity, encrypted transmission of sensitive data, interactive customer features such as opt-in/out, and provide 24/7 technical support.

The specifications required include:

• Hosted SMS Application Platform: Includes system access and message processing functionality.

• Short Code Leasing: Dedicated code for customer messaging, billed at $585/month.

• Monthly Platform Access Fee: $880/month.

• Tiered Messaging Rates:

- 0–10,000 messages/month: Included

- Up to 1 million messages: $0.013/message

- 1–5 million messages: $0.011/message

- Over 5 million messages: $0.009/message

• Integration Capabilities: Must support file transfer, web services, and RFC integrations used by the Tollway’s back-office systems.

• Carrier Coverage: Must ensure message delivery to all U.S. mobile networks.

• High Capacity and Scalability: Must support growth beyond 100 million messages annually.

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

Soprano is the only provider with a fully integrated and operational interface connected to the Tollway’s back-office systems. This interface was built through a $350,000 investment and has been in place since 2017. The existing platform is currently delivering text messages without interruption. No other vendor has a plug-and-play interface with the Tollway’s systems. Transitioning to a new provider for the short term would require duplicative development and cost without any long-term benefit, especially given that a transition to a longer-term solution is planned.

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Bulletin Reference Number B-47851

Requesting Agency/University Illinois State Toll Highway Authority

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

Soprano offers unique capabilities that ensure seamless compatibility with the Tollway's existing systems - capabilities that are not currently available from any other vendor or product. These include:

• Exclusive access to the interface built for Tollway systems.

• Seven years of institutional and operational knowledge of Tollway messaging requirements.

• Fixed pricing that has not increased since 2017.

• Seamless message delivery to over 9 million customers.

• Scalability for current growth levels, which have exceeded original contract projections.

• Ability to continue services immediately with no onboarding or downtime.

5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

The Tollway is actively reviewing potential alternatives under existing statewide contract vehicles to inform its long-term strategy.

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

While no formal evaluations have been conducted to date, exploratory discussions and solution overviews are underway. This current request supports business continuity while the Tollway works toward a longer-term solution.

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

Not applicable.

6. Are there resellers or distributors?

Yes No N/A

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

The Tollway negotiated with Soprano and they agreed to match the same unit pricing provided under the AT&T master contract, which has remained unchanged since 2017. The rates include no price increases, despite inflation, and increased service volume. Considering the scale (over 9 million customers served), historical reliability, and potential savings of over $1 million annually compared to postal mailings, the price is deemed fair and reasonable.

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

Yes No

8a. If yes, please provide details regarding future obligations and/or needs:

The Tollway will require this SEFS contract until a new solution can be implemented.

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

This request for a SEFS contract is intended to serve as a bridge while the Tollway transitions to a longer-term solution.

If this SEFS contract is not approved, the Tollway would experience a gap in text messaging services used to communicate with over 9 million customers. This would likely result in a temporary shift to more expensive methods, such as mailed notices and phone calls, until the longer-term solution is in place.

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Bulletin Reference Number B-47851

Requesting Agency/University Illinois State Toll Highway Authority

10. Is there any additional information you would like to add to justify this sole source?

Delays in service implementation could result in a complete disruption of text messaging communications to over 9 million customers.

Financially, the Tollway would experience increased mailing costs (estimated at over $1 million per year), greater delinquency due to missed payment reminders, and diminished customer service. Operationally, manual outreach is not feasible at this scale. A transition period required for competitive procurement would severely impair real-time communications and revenue assurance.

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Bulletin Reference Number B-47851

Requesting Agency/University Illinois State Toll Highway Authority

Section VII

Requesting Department Representative

Requesting Department Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

Date

Printed Name Michael Catolico E-mail Address mcatolico@getipass.com

Phone Number 630-241-6800 x1849

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed)

E-mail Address EOccomy@getipass.com

Phone Number 630-241-6800 x4625 Date

Printed Name Eric Occomy

Agency Bureau/Division Head or University Purchasing Director and Not a Designee

SPO Approval and Signature Required

I have reviewed and understand the contents of this Sole Source Justification and agree with the State Agency or University determination.

I have reviewed and understand the contents of this Sole Source Justification and do not agree with the State Agency or University determination. As a result, the State Agency or University must explore other sourcing methods to satisfy their need.

State Purchasing Officer Signature Phone Number 217-720-6643 Date

Printed Name David Papp E-mail Address David.Papp@Illinois.gov

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Bulletin Reference Number B-47851

Requesting Agency/University Illinois State Toll Highway Authority

Sole Source Justification Form - Part II Section I - General Information

Project Title Short Message Service (“SMS”) Services

Vendor Soprano Design Limited

Initial Date of Procurement Bulletin Posting

Was a Sole Source hearing held per 30 ILCS 500/20-25?

Yes - Complete Section II and III below (Section II will only be visible when this option is selected)

No - Section II not required, go to Section III below Section III - CPO Approval and Signature Required

Based on my review, I authorize the Agency/University to proceed in accordance with the published Notice referenced above.

Based upon my review, I authorize the Agency/University to proceed with the following Changes.

Based on my review, the Agency/University is not authorized to proceed with this sole source as presented and my recommendation is that it be cancelled.

Other

CPO Signature CPO Phone 217-558-2231

Printed Name Ellen H. Daley Date

CPO E-mail Ellen H. Daley@Illinois.gov

Version 7.01 Page of Sole Source Justification Form - Part I Section I - General Information Will this Sole Source amend a Professional or Artistic Services contract?

If yes, what was the original contract value?

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Section II - Proposed Term If a Term Contract, does the term, including renewals, exceed 12 months?

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

Section III - Funding Source Select the type of funding to be used (Check all that apply):

Section IV - Sole Source Justification Are there secondary justification(s) for this sole source?

Section V - Purchase History Has the Agency or University Purchased these supplies or services in the past?

Term Term From Term To Value Description Contract Number Type Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

2. Provide a list and describe in detail the specifications required to satisfy the need:

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

5. Has the Agency or University considered alternative supplies or services to satisfy their need?

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

5a. If no, why weren't alternatives evaluated?

6. Are there resellers or distributors?

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

8a. If yes, please provide details regarding future obligations and/or needs:

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

10. Is there any additional information you would like to add to justify this sole source?

Section VII Requesting Department Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed) SPO Approval and Signature Required Sole Source Justification Form - Part II Section I - General Information Was a Sole Source hearing held per 30 ILCS 500/20-25?

Section II - Sole Source Hearing Details The State posted to the Illinois Procurement Bulletin a description of the State's need, the justification for the sole source decision, and information regarding the opportunity to submit comments and testify at a public hearing. Notice of the hearing was also posted outside of the hearing room 48 hours prior to the hearing.

The public hearing was conducted for the purpose of receiving testimony regarding the sole source determination. The Hearing Officer recommends the following:

The following relevant documents are attached:

Section III - CPO Approval and Signature Required 9.0.0.2.20101008.1.734229 Ellen H. Daley@Illinois.gov

Since inception, AT&T completely outsourced the scope of the SMS services to Soprano Design Limited ("Soprano"). The Tollway has worked directly with Soprano from initial development, interface, and implementation of services on the Soprano platform since contract initiation in late 2017.

AT&T informed the Tollway in 2024 of the retiring of the text messaging scope of work from their master contract, specifically the business-to-consumer application Tollway requires and utilizes. The sunset for this scope of work was 08/31/2024.

The Tollway then entered into a one-year small purchase with sole source conditions contract directly with Soprano (Tollway Contract 24-0121).

Q1Answer: The Tollway has experienced unprecedented growth in customer opt-ins to text messaging services, reflecting a shift in customer preference for real-time mobile communications. As a result, funds from the existing one-year small purchase contract with Soprano have been exhausted earlier than expected. Because the Tollway is transitioning to a longer-term solution that will require 4–6 months of interface development and implementation, this new sole economically feasible source ("SEFS") contract with Soprano is essential to maintain uninterrupted services during the transition period and avoid major operational disruptions.

Text messaging services are critical to the Tollway’s customer communication strategy. Messages include notifications for low balances, payment issues, expiring credit cards, and other account-related updates. Without this service, the Tollway risks reduced customer satisfaction, delayed payments, increased delinquent accounts, and higher operational costs. This service also supports green initiatives by reducing reliance on postal mail, which currently exceeds $5 million annually. SMS helps deliver time-sensitive information immediately, improving responsiveness and lowering administrative costs.

This request is a time-sensitive, strategic measure to preserve continuity of customer communication services using an existing, well-integrated platform. The Tollway’s prior $350,000 investment in system integration, coupled with Soprano’s operational knowledge and zero-cost price escalation, makes this a prudent and efficient SEFS procurement. This short-term SEFS contract will maintain essential services while allowing time for transitioning to a longer-term solution.

Q2Answer: Short Message Service (SMS) / text messaging includes the ability to support real-time, secure communications with customers across all mobile networks and carriers. The services include high-volume SMS delivery with millisecond-level throughput, robust integration with the Tollway’s back-office system via web services and file-based interfaces, and the ability to process message types tied to account management, billing, and transponder activity. The vendor must also support repeat delivery attempts, secure VPN connectivity, encrypted transmission of sensitive data, interactive customer features such as opt-in/out, and provide 24/7 technical support.

The specifications required include:

• Hosted SMS Application Platform: Includes system access and message processing functionality.

• Short Code Leasing: Dedicated code for customer messaging, billed at $585/month.

• Monthly Platform Access Fee: $880/month.

• Tiered Messaging Rates:

- 0–10,000 messages/month: Included

- Up to 1 million messages: $0.013/message

- 1–5 million messages: $0.011/message

- Over 5 million messages: $0.009/message

• Integration Capabilities: Must support file transfer, web services, and RFC integrations used by the Tollway’s back-office systems.

• Carrier Coverage: Must ensure message delivery to all U.S. mobile networks.

• High Capacity and Scalability: Must support growth beyond 100 million messages annually.

• Exclusive access to the interface built for Tollway systems.

• Seven years of institutional and operational knowledge of Tollway messaging requirements.

• Fixed pricing that has not increased since 2017.

• Seamless message delivery to over 9 million customers.

• Scalability for current growth levels, which have exceeded original contract projections.

• Ability to continue services immediately with no onboarding or downtime.

If this SEFS contract is not approved, the Tollway would experience a gap in text messaging services used to communicate with over 9 million customers. This would likely result in a temporary shift to more expensive methods, such as mailed notices and phone calls, until the longer-term solution is in place.