3-Part-8 JM26-25.pdf

Department of Government Operations Division of Purchasing and General Services 4315 S 2700 W, FL 3, Taylorsville, UT 84129-2128 Phone: 801-957-7160 www.purchasing.utah.gov

Issuing Procurement Unit: Division of Purchasing

Conducting Procurement Unit: DHHS - DFH - MCH - WIC

NOTICE OF INTENT TO AWARD A CONTRACT WITHOUT ENGAGING IN A STANDARD PROCUREMENT PROCESS

The Division of Purchasing is publishing this notice pursuant to the Utah Procurement Code. The Conducting Procurement Unit submitted this form to the Division of Purchasing claiming that it intends to award a contract without competition if it is determined by the Division of Purchasing, in writing, that:

• there is only one source for the procurement item;

• transitional costs are a significant consideration in selecting a procurement item; or

• the award of a contract is under circumstances, described in rules adopted by the applicable rulemaking authority, that make awarding the contract through a standard procurement process impractical and not in the best interest of the procurement unit.

In the subsequent pages the Conducting Procurement Unit has identified its justification for wanting to award a contract without engaging in standard procurement process.

Determination of Other Interested Vendors

If the procurement item identified in this notice is to be awarded as a sole source (only one source for the procurement item), then this notice will help determine if there are any other interested and qualified vendors that meet the specifications of this notice. Any such vendors must submit the following information:

• The name of the contesting person; and

• A detailed explanation of the challenge, including documentation showing that there are other competing sources for the procurement item.

In addition, a vendor should include:

• Documentation that your firm can provide a comparable or better procurement item that meets or exceeds the specifications;

• Documentation that your firm can also provide the same proprietary procurement item or an equivalent procurement item; and

• If transitional costs are identified as the justification for this notice, submit a cost comparison of the identified transitional costs with your firm’s anticipated transitional costs.

Regardless of any prior communications with the Division of Purchasing or the State, all vendors interested in responding to this notice must submit a response to this posting containing complete responses to all of the information requested above.

DO NOT CONTACT THE CONDUCTING PROCUREMENT UNIT. Any questions regarding this notice, including obtaining additional information, can be obtained through the Division of Purchasing during the publication period. No action is required if you agree with this Notice.

If the purpose of this notice is an intent to award a sole source, after the public notice period has passed, and the Division of Purchasing determines that there are other interested and qualified vendors that meet the specifications of this notice, then the Division of Purchasing will not award a contract pursuant to this notice. An award without competition may still be made even if there are other interested vendors when the basis for the award is due to transitional costs or impracticality as stated above.

If, after the public notice period has passed, no valid challenges have been received, then the Division of Purchasing may award a contract to the identified vendor without competition.

Read the entire form very carefully before responding to this notice.

It is anticipated that this procurement will result in a:

RESULT ACTION

Agency Contract

The term of this contract (or extension) will be: 4 and renewal options: 0.

The agency may not make the procurement until the solicitation process is completed and a contract is written and signed by the agency, the vendor, and the Division of Purchasing.

Purchase Order The agency may not make the procurement until the solicitation process is completed, the purchase order is signed by the Division of Purchasing and delivered to the agency and the vendor.

Description of procurement item to be purchased:

A new "icon" will be added to the current JPMA WICShopper app used by participants to order WIC foods through the app.

See full rationale provided in section F. below.

Estimated value of the contract/purchase order/increase: $332,000

Freight Cost (F.O.B. Destination, Freight Prepaid): $0.00

Vendor Name: JPMA, Inc.

Explain in detail the service or product to be procured (additional information included in attached Scope of Work):

A new icon will be be added to the WICShopper app that will allow WIC participants to order their foods to be delivered to their homes in rural Utah. This project will allow participants to order their foods through the app, with the delivery of foods to their home within about 48 hours of requesting such in the app. This is new technology that is becoming available to states desiring to utilize this new functionality on the app for serving participants who live in rural communities who face struggles to get to a local grocery store.

Note from "Agency Contract" box above. This contract amendment will end on 5/19/2029, the same date as the original contract with JPMA, Inc (contract number 246389). The four-years (4) noted above is "not exactly equal" to the time needed before the cotract expires - an issue related to this form.

CHECK THE BOX THAT IDENTIFIES WHY A CONTRACT SHOULD BE AWARDED WITHOUT ENGAGING IN A STANDARD

PROCUREMENT PROCESS:

Sole Source - There is only one source for the procurement item. Complete Section A

Transitional Costs - Transitional costs are a significant consideration in selecting a procurement item and the results of a cost-benefit analysis demonstrate that transitional costs are unreasonable or cost-prohibitive, and that the award of a contract without engaging in a standard procurement process is in the best interest of the procurement unit.

Complete Section B

Impracticality - The award of a contract is under circumstances, described in rules adopted by the applicable rulemaking authority, that make awarding the contract through a standard procurement process impractical and not in the best interest of the procurement unit.

Complete Section C

Trial use contract for a new or innovative procurement item, or for a procurement item with a novel or unproven use or application. Complete Section D

Extension of a contract without engaging in a standard procurement process. If extension will result in a request to increase the contract total, then also complete Section F below. Complete Section E

Request to increase total contract amount. Complete Section F

SECTION A: ONLY ONE SOURCE

1. What is unique about this procurement item to justify an award of contract without engaging in a standard procurement process? (Explain in detail why the service, product, etc. is only available from a single supplier.)

2. Could the procurement item be reasonably modified to allow for competition?

3. Explain the market research performed.

4. What research have you conducted to ensure the requested procurement item is not available on an existing state cooperative contract?

5. If there is only one source for the procurement item, list the names of other similar vendors contacted, contact person, and a summary of their response.

SECTION B: TRANSITIONAL COSTS

1. Describe the existing equipment, technology, software, accessories, replacement parts, or service, hereafter referred to as equipment; include the original purchase price and date of purchase for the existing equipment.

2. Supply the following:

a. Procurement method that was used to purchase the existing equipment? (e.g. IFB, RFP, Sole Source):

b. Solicitation number, RQS number, or sole source number for the existing equipment:

c. Contract number for the existing equipment:

3. Attach the cost-benefit analysis, as required by Utah Code Section 63G-6a-802, that demonstrates that transitional costs are unreasonable or cost-prohibitive.

SECTION C: STANDARD PROCUREMENT PROCESS IMPRACTICABLE

1.

Review R33-108-101c and provide supporting justification why awarding the contract through a standard procurement process is impractical and not in the best interest of the procurement unit under the circumstances; including any supporting documentation.

We sought the support of Marci Woodward about a year ago for direction as to which procurement method should be utilized for this procurement/contract amendment. We are seeking to add a new technology offering provided by JPMA, Inc. This procurement will allow our Program to utilize programming through the JPMA WIC Shopper App (that we currently use) to provide a new online shopping and home delivery option to our participants in rural Utah. The online shopping project/home delivery project may grow to be avialable statewide, but we will implement this option in our most rural counties first including San Juan and Southeast Utah. The state procurment officer provided her opinion that this work should be able to be added to the existing contract through "not a procurement" as an amendment based on the new technology becoming available to the available list of services available through the existing JPMA contract, once approved. An email stating such is available for review as required.

2. Supply the following, if applicable:

a. Procurement method that was used to purchase the existing equipment? (e.g. IFB, RFP, Sole Source): Sole Source

b. Solicitation number, RQS number, or sole source number for the existing equipment: BB24-18 RQM 250 2470000004

c. Contract number for the existing equipment 246389

SECTION D: TRIAL USE CONTRACT

1. Describe how this trial use contract for the new or novel procurement item will benefit your agency.

2. Describe how the procurement item is new or innovative, or how the procurement item has a proposed use/application that is novel or unproven.

3. Describe why a trial use contract exception is necessary for this procurement item at this time as opposed to conducting a standard procurement process to procure the procurement item.

4. What research have you conducted to ensure the requested procurement item is not available on an existing state cooperative contract?

5.

How long does the agency need to test the procurement item and what quantities of the procurement item (if applicable) will be necessary to test this procurement item? Note trial use contracts generally cannot exceed a period of 24 months.

SECTION E: EXTENSION OF CONTRACT WITHOUT ENGAGING IN A STANDARD PROCUREMENT PROCESS The procurement official may extend a contract up to 120 days. For extensions beyond 120 days, the procurement official may extend the contract after consulting with legal counsel.

Contract Start Date: Enter date. Current End Date: Enter date.

Proposed End Date: Enter date. Contract Number: Enter text.

1.

Is this request for a contract extension the result of a protest, appeal or court action? If yes, agency does not need to complete items 2-5 below. Provide the solicitation number that resulted in a protest and date of the protest, appeal or court action.

2.

Describe why extending this contract without engaging in a standard procurement process is necessary to avoid a lapse in a critical government service, OR to mitigate a circumstance that is likely to have a negative impact on public health, safety, welfare, or property.

3.

Confirm the procurement unit is currently engaged in a standard procurement process for the procurement item that is subject to the contract extension request and that the standard procurement process is delayed due to an unintentional error.

4.

Justification for Extension: check all that apply:

☐ The standard procurement process is delayed due to an unintentional error.

☐ A change in an industry standard requires one or more significant changes to specifications for the procurement item.

☐ To prevent the loss of federal funds.

☐ To mitigate the effects of a delay of a state or federal appropriation.

☐ To enable the procurement unit to continue to receive a procurement item during a delay in the implementation of a contract awarded pursuant to a procurement that has already been conducted.

☐ To enable the procurement unit to continue to receive a procurement item during a period of time during which negotiations with a vendor under a new contract for the procurement item are being conducted.

5. For the selection(s) above, provide any additional details regarding the circumstances justifying a contract extension.

SECTION F: REQUEST TO INCREASE TOTAL CONTRACT AMOUNT

If the original solicitation type was an ACWESPP (e.g. sole source) and the additional amount will make the contract total go above $50K, then a public notice is required to increase the contract total. This public notice is not necessary if the procurement official waives the public notice requirement in accordance with R33-108-101e.

Contractor Name: JPMA, Inc. Contract Number: 246389

Original Contract Total: $390,720 Current Contract Total: $390,720.00

Proposed Contract Total: $722,720 % Increase from Original: 85%

Solicitation Number: BB24-18 Solicitation Type: Sole Source

Product or Service Description:

The new addition to the JPMA WICShopper app will modernize the way WIC families shop for foods in rural communities/food deserts in our state. The Food and Nutrition Service of the United States Department of Agriculture (FNS/USDA) has approved JPMA to work with Umoja to begin providing online food ordering to rural Americans who are enrolled as WIC participants. We believe this program modernization effort is the best way to combat hunger in very remote Utah.

Utah is looking to add the new “Online Shopping module” that can simply be will be activated to the JPMA WIC Shopper App for use by WIC participants across rural Utah, allowing them to purchase foods online (through the app) for home delivery of their WIC foods. This service may expand statewide over time. Related to the addition of $332,000, $92,000 is for implementation costs which are fixed. The implementation costs will be paid for using a grant received for this purpose which expires on 9/30/2027.

The remainder are fees that are applied if order minimums are not met. The WIC Program will monitor whether or not we are hitting are minimum thresholds throughout the project. Should we not be meet our food delivery goals, we may consider stopping the online shopping option for participants.

Why is the contract total being increased? Check all that apply.

☐ The term of the contract is being extended (also complete Section E above if extending).

☐ The quantity of products or services needed has increased.

☐ The price, rate, or fee for a product or service has increased.

☒ A new or upgraded product or service is needed.

Provide details for the answer that was selected in the previous question. Provide any reasons for the increase.

The United States Department of Agriculture (USDA), in the previous number of months has allowed WIC state agencies to utilize this new home delivery service to modernize WIC program services to our participants. Utah WIC, within the last 11 months modernized our benefit delivery by moving to online eWIC (EBT), and now desires to modernize again allowing our most rural families another option for obtaining food benefits in areas where food deserts exist in our state. The online shopping, home delivery model supports rural Utah families by receiving foods at their front door in communities that do not offer convenient access to WIC authorized grocery stores. The monies have been provided to the Utah WIC Program by USDA and must be used before their expiration date of September 2027.