28207 A12 SP_REQ-DASOBO-00028942_ATD Solution Extension_Approved~1.pdf

SP_REQ-DASOBO-00028942, ATD Solution Extension Page 1 of 5

REQUEST FOR SPECIAL PROCUREMENT

No. REQ-DASOBO-00028942

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: Oregon Department of Transportation (“ODOT”), Division of Motor Vehicles

(“DMV”)

2. Date of Request: 9/1/2022 3. Agency Number: 73000

4. Agency Contact Name: Stephanie Lemhouse 5. Phone: (503) 986-2982

6. Type of Request: ___Class Special Procurement _X__Contract-specific Special Procurement

7. Time Period Requested: From: December 9, 2022 To: July 31, 2024

8. Total Estimated Cost: $223,800.00

Note: The Contract Maximum not-to-exceed (“NTE”) Compensation is currently $3,118,997.39. With approval of this Special Procurement (“SP”) Request and execution of the anticipated Contract amendment, the cumulative Contract Maximum not-to-exceed (“NTE”) Compensation will be $3,342,797.39.

9. Title: Supplies and/or Services to be Acquired: Automated Testing Devices (“ATD”) Solution

10. Request, Background, Current Need, and Proposed Contracting Procedure:

a. Request:

ODOT, on behalf of its DMV requests approval of this Special Procurement (“SP”) #REQ-DASOBO- 00028942 to amend Contract #28207 (“Contract”) issued to Solution Thru Software, Inc. (now Intellectual Technology Inc.) (“ITI” or “Contractor”) as follows:

1. Extend the Term an additional 19-months, through July 31, 2024; and

2. Increase the Maximum Not-To-Exceed Compensation an additional $223,800.

b. Background:

DMV is the second largest division within ODOT. DMV’s mission is to license drivers, title vehicles, and collect revenue through courteous, efficient, and reliable service delivery. DMV uses an ATD Solution that has been in place since 2011 to administer multi-language driver license knowledge tests in multiple-choice format via touch screen kiosks located in field offices throughout the state to issue customer IDs and licenses. The current Contract will expire on December 9, 2022 with no additional Term extensions available.

In 2020, ODOT conducted two separate procurement processes seeking a new ATD solution.

Request For Proposals (“RFP”) #730-34031-20, issued January 30, 2020, on the Oregon Procurement Information Network (“ORPIN”), the state’s former eProcurement system. The RFP failed and was withdrawn and cancelled March 16, 2020.

SP_REQ-DASOBO-00028942, ATD Solution Extension Page 2 of 5

June 8, 2020, ODOT issued RFP #730-34268-20 on ORPIN. This solicitation was successful and ODOT issued an intent-to-award to the highest ranked Proposer on September 11, 2020. Contract negotiations were conducted for 11 months. Agreement could not be reached between the parties and contract negotiations were mutually and amicably cancelled on August 10, 2021.

In accordance with RFP #730-34268-20, Section 5.4.1, ODOT commenced negotiations with the next highest ranked Proposer, ITI, the incumbent Contractor. The parties executed contract # PO- 73000-00003441 on June 15, 2022, under which a new commercial-off-the-shelf (“COTS”) ATD Solution will be customized to meet ODOT needs (“ATD Replacement Project”). The new ATD Solution is scheduled to be fully implemented by July 31, 2024.

The unexpected, protracted procurements and negotiation periods now require DMV to amend and extend the current Contract Term 19-months to support completion of the ATD Replacement Project. Until the new ATD Solution is fully implemented, it is imperative that the existing ATD Solution be maintained to prevent any lapse in identification (“ID”) and driver license testing for Oregonians.

c. Current Need:

The following Table 10.C breaks down the Total Estimated Cost requested in this SP Request, which will be amended into the Contract.

TABLE 10.C

Exhibit B: Pricing Schedule Cost per unit Qty Months Total Unit Software Support and Annual Maintenance $ 300.00 288 19 $86,400 Exam Console Software Support & Maintenance $ 300.00 61 19 $18,300 Administrator Software Support & Maintenance $ 300.00 61 19 $18,300 Exam Unit Hardware Support & Maintenance $ 350.00 288 1 $100,800

Total: $223,800

d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, ODOT will issue a public notice regarding approval of this SP on OregonBuys, the state’s current eProcurement system of record, for a period of seven (7) calendar days.

2. The public notice will include provisions that any affected party may protest the approval of the SP Request.

3. Oregon Department of Administrative Services (“DAS”), Procurement Services (“PS”), working with ODOT, will respond to and resolve all protests, if any.

4. If no protests to this approved SP are received and sustained, ODOT will proceed with executing the Contract amendment as set out in Section 10.a above.

5. ODOT will work with DAS Enterprise Information Services (“EIS”) and obtain its endorsement prior to executing the Contract amendment, if required.

6. Pursuant to OAR 137-045-0015, ODOT will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the Contract amendment, as required.

SP_REQ-DASOBO-00028942, ATD Solution Extension Page 3 of 5

11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

The current Contract will expire on December 9, 2022, with no additional Term extensions available. The Contract must be amended to avoid a lapse in services and until such time as the new ATD Replacement Solution is implemented under contract ## PO-73000-00003441, estimated in Q3 2024. A lapse in services would have catastrophic consequences with Oregonians unable to take the written drivers license test.

Short of declaring an emergency, the only procurement method available through which the anticipated Contract duration and cost can be increased is a special procurement.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

___X__ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

1. The existing Contract was established through a formal, competitive procurement process in accordance with Oregon statutes and administrative rules.

2. The ATD Replacement Project also followed Oregon statutes and administrative rules guiding formal procurement processes.

a. Three (3) Proposers submitted responsive proposals.

b. An award was made to the top-ranking firm; however, negotiations failed and were mutually cancelled.

c. An award was then issued to the next highest-ranking firm and the only other Competitive

Range Proposer, which was, coincidentally, the incumbent Contractor.

3. Both RFPs (bulleted items 1 and 2 directly above) were advertised on ORPIN, which held a roster of 60,000+ registered Suppliers.

4. Given the unforeseen procurement delays detailed in this Special Procurement, a 19-month stop gap between the current Contract and new contract is required to support successful implementation of the ATD Replacement Solution. Both contracts are issued to the same Contractor. Therefore, competition is not being diminished.

and

______ (b)(i) will not result in substantial cost savings to the contracting agency or to the public because:

or

__X__ (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because:

No other providers can meet the short-term need for these services and would likely not be interested in pursuing a 19-month contract without the ability for follow-on (longer term) services. Both the current Contract and the contract under which the ATD Replacement Solution will be delivered were competitively solicited in accordance with ORS 279B.060 and OAR 125-247-0260. Each year, about 180,000 new drivers licenses are issued in Oregon, with an additional 350,000 license renewals. It is imperative that the existing ATD Solution under the current Contract be maintained until such time as ODOT DMV transitions to the

SP_REQ-DASOBO-00028942, ATD Solution Extension Page 4 of 5

(new) ATD Replacement Solution, estimated Q3 2024. It is in the public’s best interest for ODOT DMV to continue providing uninterrupted access to drivers license testing.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through OregonBuys. Agency may elect to attach a signed Request.

Signature: e.g. Electronically in OregonBuys _________________ Type Name: Date:

SP_REQ-DASOBO-00028942, ATD Solution Extension Page 5 of 5

PART B. The Department of Administrative Services completes Part B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and (b)(A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125- 247-0288 implement ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The Authorized Agency shall post the Public Notice on ORPIN. The Special

Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Authorized Agency shall comply with the requirements of ORS 279A.165 and OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

3. Authorized Agency shall comply with all Enterprise Information Services (“EIS”) conditions and requirements prior to contract amendment execution, if any.

APPROVED:

Darwin Kumpula, Deputy State Chief Procurement Officer Date Department of Administrative Services

Darwin Kumpula Digitally signed by Darwin Kumpula Date: 2022.11.15 15:58:45 -08'00' 11/15/2022