6046-0 sole-source-determination final S-44300-00011830.pdf

SOLE-SOURCE DETERMINATION MEMO

FOR SUPPLIES AND SERVICES

Date: October 11, 2024 Sole source number: S-44300-00011830 Cstat 6046

To: Kirk N. Rhoades, Designated Procurement Officer ODHS Office of Contracts & Procurement

Requestor: Stacy DeLong, MPH Agency/division: Oregon Health Authority, herein after referred to as “Agency” Program/office: Health Policy & Analytics Contract specialist: Suzanne Christman

Agency Sole source rule: Sole source authority:

OHA OAR 137-047-0275 ORS 413.033

Estimated total contract value: $1,000,000.00 The initial term of this Personal Services Contract will be for 5 years.

Description of goods or services: A resulting Contract will provide advanced economic and econometric analysis services to support OHA’s Health Care Market Oversight (HCMO) program review of health care transactions under ORS 415.501.

1. Background: This sole source justification applies to the purchase of:

a) Provide advanced economic and econometric analysis services. Services may include all or most of the following:

1) Reviewing and interpreting transaction documents and information.

2) Analysis of data and information to assess current and future market competition following the completion of the transaction.

3) Advising on evidence and best practices for economic analysis and review of health care transactions.

4) Identifying potential concerns for the transaction and recommending conditions to address concerns.

5) Developing requests for information to entities and analyzing responses.

6) Providing methodology documentation, data output files, results tabulations, and data visualizations.

7) Providing a report summarizing findings, conclusions, and recommendations, based on statutory and regulatory criteria and requirements.

8) Serving as an expert witness during legal proceedings.

This is a request for a Sole Source Contract to Bates White for assistance in performing economic and econometric analysis services to inform OHA’s Health Care Market Oversight (HCMO) program reviews of pending health care transactions. HCMO’s regulatory requirements include the requirement that an analysis be performed to ensure there is no substantial likelihood of anticompetitive effects from pending health care transactions that outweigh the benefits of the proposed transaction in increasing or maintaining services to underserved populations.

HCMO is required to comply with strict statutory deadlines for review of pending health care transactions, is actively reviewing several transactions, and in urgent need of economic services to begin immediately.

Bates White has extensive experience both conducting quantitative and qualitative economic analyses to assess the competitive effects of mergers and acquisitions in the health care industry and serving as an expert witness during legal proceedings. This experience includes economic and statistical modeling to assess the degree of market power and competition between health market participants, particularly hospitals and health systems. Bates White’s Antitrust & Competition team includes PhD economists and research analysts with experience performing complex economic and statistical analysis, including diversion ratios, willingness to pay, and pricing analysis, as well as analysis of potential merger-related efficiencies. Bates White economists are not only leading academics in the fields of industrial organization and health economics, but they also have experience working at and advising federal and state regulatory agencies, including the Federal Trade Commission and the U.S. Department of Justice

2. Prospective contractor/vendor:

Legal entity name: Bates White LLC

DBA:

Address: 2001 K Street NW, North Building, Suite 500 Washington DC, 20006 Contact person: Karen Goldberg

Phone: 202-747-2093 Email: Karen.goldberg@bateswhite.com

Protests are due by 3:00 PM within seven calendar days after the first date the notice is posted on OregonBuys. Protests must be sent via mail, fax, email, or hand carried to the following address: Protests via telephone will not be accepted.

Oregon Department of Human Services Office of Contracts and Procurement ATTN: Suzanne Christman Address: 500 Summer Street NE, E-03, Salem, OR 97301 Phone: 971-283-4505 Fax: 503-378-4324 Email: Suzanne.christman@odhsoha.oregon.gov

Agency reserves the right to purchase additional services by extending the contract through amendment for up-to a maximum of 10 years, and to increase the contract value as necessary to compensate for the additional services.

3. Written findings of fact (market research):

The findings below must include factual information supporting the determination that meet the sole source requirement in statute.

Pursuant to ORS 279B.075, Agency must conduct market research that supports the assertion that there is only one source that can provide the goods or services. Market research includes utilization of the internet, trade journals, agency vendor lists, professional organizations, studies, catalogs/industrial periodicals, vendor sources, yellow pages, etc.

For information technology contracts, any ownership or proprietary issues should be fully addressed with written documentation to support facts. [Attach supporting documentation, if applicable]

Agency must select at least one of the findings and prepare the determination as it specifically relates to the good or service being procured. More than one finding can be addressed. The findings are as follows:

mailto:Suzanne.christman@odhsoha.oregon.gov

Pursuant to ORS 279B.075 (2)(a): Provide findings supporting the determination that the efficient utilization of existing goods requires the acquisition of compatible goods or services from only one source. [Enter supporting documentation] or Pursuant to ORS 279B.075 (2)(b): Provide findings supporting the determination that the goods or services required for the exchange of software or data with other public or private agencies are available from only one source. [Enter supporting documentation] or Pursuant to ORS 279B.075 (2)(c): Provide findings supporting the determination that the goods or services are for use in a pilot or an experimental project. [Enter supporting documentation] or Pursuant to ORS 279B.075 (2)(d): Any other findings that support the conclusion that the goods or services are available from only one source.

OHA previously issued a Request for Applications (RFA) under OregonBuys Bid Number S-44300-00004677 for Enterprise Initiative Implementation Consulting Services on October 13, 2022. OHA received one response to its Analytics sub-category of Economic Analysis and issued contract 179197. The awarded contractor did not have the requisite experience reviewing health care transactions necessary to adequately assist OHA. Contract 179197 was terminated on September 26, 2024.

OHA extensively researched the capabilities of economic firms nationwide in an effort to locate other sources for this work. Bates White has extensive experience both advising state and federal regulatory agencies on the anticompetitive effects of proposed health care transactions nationwide and serving as an expert witness during legal proceedings. In particular, Bates White has extensive experience providing the type of expertise OHA seeks to support state agencies in conducting transaction reviews. OHA is not aware of other firms with this depth of specialized experience. This work is urgently needed to support active HCMO reviews and Bates White is available to provide support immediately. OHA has determined that Bates White is the only company that can holistically provide these essential services to OHA.

APPROVED:

By:

Signed by DPO electronically via OregonBuys Kirk N. Rhoades or acting DPO