7298_HDS_Sole Source Justification_Signed.pdf

Sole Source No. 914-7298-22 for HDS Page 1 of 3 (CK)

SOLE-SOURCE DETERMINATION AND JUSTIFICATION

FOR SUPPLIES AND SERVICES

No. 914-7298-22

To: Agency Executive Director or delegate

Oregon Housing and Community Services Department

From: James Hackett, Assistant Director, Oregon Housing Community Services Department

OHCS Designated Procurement Officer: Sandra Flickinger, DPO

Procurement Specialist: Christine Kennedy, Procurement Contract Specialist 3

Date: August 9, 2022

Re: Sole Source Determination pursuant to Oregon Revised Statute (ORS) 279B.075, Oregon Administrative Rule (OAR) 813-006-0020(6), OAR 137-047-0275

Part A

1. Authority to enter into a Sole-Source Contract: ORS 279A.050(6)(g) and OAR 813 Division 6.

2. Estimated Total Value of Contract: $56,705.59 per year for 5 years = $283,527.95 + spend-to-date of $1,118,262.83 going back to 2005 = Grand Total estimated life cycle $1,401,790.78

3. Subject of Contract: Housing and Development Software LLC

4. Background:

In March 2003, the Agency purchased HUD Section 8 Contract Administration software from Housing and Development Software LLC (HDS). In December 2005, the Agency contracted with HDS for additional modules under a sole source procurement, expanding the functional capacity of the software. Again in 2017, the Agency contracted with HDS for an additional module under a sole source procurement for the administration of an additional HUD program. These contracts are for perpetual licenses and ongoing maintenance and support.

HDS has notified the Agency of its intent to upgrade this software to a new platform, including remote hosting. However, this upgrade to the existing HDS NextGen does not meet current State of Oregon Enterprise Information Services SOC 2 Type 2 Security Requirements. Therefore, the Agency intends to renew the legacy version of software by sole source procurement before 12/31/2022, the expiration date of the current contract. In addition, the agency would like to serve as one of the many Beta testers across the United States in order to help improve the NextGen system for its specific needs.

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5. Findings:

HDS is the provider of licensed software modules and services that facilitate administration of the contract services provided to HUD by the Agency.

It is in the best interest of the public to for the Agency to continue using the HDS software, support and maintenance to administer HUD contracts statewide.

Procurement of the updated HDS software is an efficient use of resources. If the Agency does not procure these services from HDS, the Agency may not be able to access and communicate relevant data to HUD, impairing its ability to administer the HUD contract and provide rental assistance to low-income Oregonians.

A. Market Research Overall Finding.

The Agency has determined after extensive research that HDS is the only vendor providing the software to administer the HUD contract. The agency directly contacted the statewide Performance-Based Contact Administrators (PBCA) in eight Western states (CA, AZ, CO, ID, MT, WY, ND, SD), asking what software they used for HUD contract administration. HDS was the only software identified. Agency staff have searched the internet, trade publications, and asked trade industry contacts about other software options. No other provider of software for this specific purpose (PBCA) has been identified.

And

B. Findings of Fact pursuant to ORS 279B.075 must include, at a minimum, one of the following:

1. Pursuant to ORS 279B.075(2)(a): Compatibility. Provide findings supporting your determination that the efficient utilization of existing goods requires the acquisition of compatible goods or services from only one source.

According to market research, no other vendor known to OHCS provides software for HUD Performance-Based Contract Administration. The sole source procurement will not encourage favoritism in the awarding of any other public contacts nor substantially dimmish competition for public contracts.

2. Pursuant to ORS 279B.075 (2)(b): Exchange of Software or Data. Provide findings supporting your 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.

N.A.

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3. Pursuant to ORS 279B.075 (2)(c): Pilot or Experimental Project. Provide findings supporting your determination that the goods or services are for use in a pilot or an experimental project.

4. Pursuant to ORS 279B.075 (2)(d): Other findings that support the conclusion that Supplies and Services are available from only one source may include but are not limited to considerations of: unique design, availability, geographic location, exclusive authorized representative, cost of conversion, and warranty services. Or the sole source has special skills or special characteristics that are reasonably only available from that source or based upon the particular provider’s expertise, experience or situation.

C. Protest. An Affected Person may protest the Contract Review Authority's determination that the Goods or Services or class of Goods or Services are available from only one source in accordance with OAR 137-047-0710.

Approved By: _____________________________________________________________________________________ Executive Director, or delegate Date

Approved By: _____________________________________________________________________________________ Sandra Flickinger, OHCS DPO Date

8/18/2022 sflickinger Typewriter August 17, 2022