26-497DVA-QUINC-B-50274 Sole Source Hearing Officer Determination.pdf

300 WEST JEFFERSON ST. • 2ND FLOOR SUITE 202B • SPRINGFIELD, IL 62702 • P 217-622-1857

TO: Ellen H. Daley, Chief Procurement Officer for General Services

FROM: Ellen Morris, Sole Source Hearing Officer

DATE: January 27, 2026

SUBJECT: January 14, 2026, Sole Source Hearing Officer Determination

On January 14, 2025, I presided as hearing officer over a hearing to consider comments regarding the following agency determination to contract on a sole source basis:

Agency: Illinois Department of Veterans Affairs (“IDVA”)

Vendor: Denman Services, Inc. (“Denman”)

Brief Description: Provide linen to the Quincy Illinois Veterans’ Home.

The vendor will pick up linen 3-4 days a week, wash and replace with clean linen.

Procurement Bulletin Reference: 26-497DVA-QUINC-B-50274

Value: $509,200.00

Factual Background:

On December 29, 2025, IDVA submitted a Sole Source Justification Form (“SSJF”) seeking approval for a one-year contract with Denman to provide linen to the Quincy Illinois Veterans’ Home. SSJF at 1. In its SSJF, IDVA indicates that its long-term care facility needs laundry services to maintain a clean and sanitary environment that protects residents from infection and promotes dignity and comfort. SSJF at 2. IDVA states that Denman is located in Quincy, Illinois and is able to reach the facility within the thirty-minute time frame and guarantee emergency delivery within the required one-hour timeframe. SSJF at 4.

The contract subject to the instant sole source hearing is estimated to begin January 16, 2025, and end

January 15, 2027. SSJF at 1.

Pamela Frazier of All In One Management and Services, Inc. (“All In One”), requested a hearing regarding this proposed sole source contract. All in One submitted written comments with its hearing request which the Hearing Officer provided to IDVA. All in One’s written comments are incorporated into the record. All in One’s written comments are attached hereto and are briefly summarized as follows:

• That it requests this procurement reflect a fair and equitable playing field for certified small businesses.

• That when large incumbent vendors continue to receive awards, especially through emergency or sole source processes, the economic impact is concentrated in one place, and smaller certified firms are effectively locked out.

• Procurement should be structured so certified firms can competitively bid rather than defaulting to patterns that favor large non-BEP vendors.

• If PAR levels are appropriately set and consistently maintained, preventable shortages – and the rush to emergency procurements- can be avoided.

• Leveraging vendors that hold both federal and State certifications allows the agency to diversify its vendor best in a responsible, well-documented way.

Summary of Hearing:

The hearing was held via Webex on January 14, 2026. The notice of intent to contract on a sole source basis, the SSJF, and written comments were incorporated into the record. The following summary incorporates and paraphrases the testimony as follows:

Hannah Ajdinovich primarily commented on behalf of IDVA. IDVA stated linens are provided to the Home and it currently has the linens picked up from the Quincy location, laundered, and delivered back to the Veterans’ Home at a future date for a future need. IDVA stated it believes it needs to have local vendor who can respond to any potential emergency within a one-hour delivery time frame. IDVA stated the current vendor under the sole source provides 24/7 delivery service if necessary.

IDVA stated it plans to bring the linen services in-house but does not currently have sufficient staffing.

IDVA stated the sole source was created for one year and IDVA estimates the hiring time to be at about six to nine months with a short transition period. IDVA stated it requested the sole source to provide linen services until it can establish the staffing needed to bring the services in-house. IDVA stated the main justification for the sole source is the timing of delivery services.

IDVA stated regarding PAR levels and planning, the Veterans’ Home in Quincy has very limited storage space which is why it requires a one-hour turnaround in the event of emergency needs.

IDVA stated it has not had any non-local vendors providing linen services in the past. IDVA stated as far a planning goes, there is limited storage, and it does occasionally have emergencies due to resident illness and it unexpectedly goes through more linen. IDVA stated it must have the responsiveness of the timing and be able to have afterhours deliveries within a short period of time.

IDVA stated the timing of deliveries, a one-hour turnaround, requires the vendor to be within a certain area to meet that one-hour need. IDVA stated its understanding is that a vendor would need to be within a certain location to where a delivery could be made within an hour.

Pamela Frazier commented on behalf of All In One. All In One stated it is a small, minority owned business that provides high quality linen and laundry services, participates in the state BEP program, is an 8(a) and HubZone certified firm at the federal level, and has demonstrated its compliance and accountability needed to participate in government work responsibly.

All In One stated many justifications for emergency or sole source contracts in linen services place back to planning and inventory decisions. All in One stated if levels are appropriately set and consistently maintained, preventable shortages on the rush through emergency procurements can be avoided. All In One stated with proper planning and replenishment, the agency has time to conduct a normal, competitive procurement, open to qualified BEP or small business vendors. All In One stated this approach reduces costs and risks and aligns with the State’s commitment, equity, transparency, and good stewardship of public funds.

All In One stated it is not asking for special treatment but asking the State’s own goals and rules be applied consistently and to compete fully on the merits of being a small, certified business. All In One stated it respectfully asks the agency to avoid the use of an emergency or sole source mechanisms where better planning and PAR management can support a prime and competitive process. All In One stated it requests the agency to structure future linen service procurements to meaningfully include BEP certified and small businesses as prime and substantial subcontractors, to affirm and uphold BEP goals in this contract and recognize 8(a) and HubZone status as evidence of readiness and capacity, including any IDVA appropriations. All In One stated doing so levels the economic playing fields, enhances transparency, ensures public funds supports both excellent service and inclusive economic growth.

All In One stated it is disputing the sole source because it believes this service has been procured through an emergency basis on multiple occasions and now it is a sole source, and it believes the vendor that originally held the contract was not local and yet was able to sustain the account.

All In One stated this is an ongoing concern of time delays and staffing with everyone, not only the State, but other businesses too, and so once again, there are multiple emergency procurements and now the sole source. All In One stated it does not add up and the cost value of this is extremely large for a one-year contract.

All In One stated the timing and delivery goes back to planning, and it can deliver on supplying linen in a timely fashion. All In One stated an internal concern, when the levels are not maintained and if the State is aware there is occupancy around the clock, then it will need the supply for that. All In One stated it does not constitute an emergency on the vendor because of the shortcomings of the agency, especially when due to a shortage regardless of the capacity or storage space.

Applicable Statutes and Rules

Sole-source procurements must be scrutinized because they tend to contravene the core purpose of the Procurement Code, namely, “that the principles of competitive bidding and economical procurement practices shall be applicable to all purchases and contracts by or for any State agency.” 30 ILCS 500/1-

5. The Code requires heightened transparency for sole source awards because they lack competition and can be abused relatively easily. See, generally, 30 ILCS 500/20-25.

The Code states that “contracts may be awarded without use of the specified method of source selection when there is only one economically feasible source for the item.” 30 ILCS 500/20-25(a). Additionally, the Code states that a “contract may be awarded as a sole source contract unless an interested party submits a written request for a public hearing at which the chief procurement officer and purchasing agency present written justification for the procurement method.” Id. Additionally, the Code states that “[a] sole source contract where a hearing was requested by an interested party may be awarded after the hearing is conducted with the approval of the chief procurement officer.” Id.

The Illinois Administrative Code, Section 1.2025(b) states in part that “[a] sole source procurement is permissible when a requirement is available from only a single supplier.” 44 ILL. ADMIN. CODE 1.2025(b).

Section 1.2025(c) provides that “[p]rior to authorizing the State agency to enter into a contract based on the sole source or sole economically feasible source request, the CPO-GS shall offer a public hearing to be held and make a final determination as required by Section 20-25(a) of the Code.” 44 ILL. ADMIN.

CODE 1.2025(c).

Analysis and Recommendation

The issue here is whether any vendor other than Denman can provide the necessary services to meet

IDVA’s need for linen services to the Quincy Illinois Veterans’ Home.

IDVA states that it plans to have the linen services in-house upon adequate staffing, but for now, IDVA requires a vendor to provide linen services. IDVA states it has a specific turnaround time for its linen services to meet the agency’s needs. IDVA states that it believes the instant matter is a sole source procurement because only Denman can meet IDVA’s linen services turnaround time requirement. IDVA bases this assumption on Denman’s location.

There is no doubt that IDVA requires a certain turnaround time for its linen services. However, to argue that only one vendor can perform these services primarily based on the vendor’s location is an assumption. IDVA’s justification for this sole source procurement does not demonstrate that only a single vendor, Denman, can fulfill the agency’s requirements. IDVA’s justification demonstrates that this particular vendor is within a certain mileage of the facility, but it does not demonstrate it is the sole vendor able to perform the required services. It is possible that vendors outside a specific mileage radius could indeed perform IDVA’s required services and meet IDVA’s turnaround time requirements, but that would be determined appropriately through a competitive procurement that allows vendors to determine whether they can meet the requirements and bid accordingly.

IDVA’s requirements do not appear to be available from only a single vendor, and there is insufficient evidence to establish that only Denman can fulfill IDVA’s requirements.

Based on the foregoing, I find the justification for this sole source to be insufficient, and I recommend the procurement be not approved.

/s/ Ellen C. Morris

Ellen C. Morris, Hearing Officer