Assetworks FY26 Recoup Licesning SSJF Part I 25-448DOIT-ADMIN-B-48442.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 25-448DOIT-ADMIN-B-48442

Requesting Agency/University DoIT/CMS BoAS - Surplus Property Control

Sole Source Justification Form - Part I Section I - General Information

Department/Bureau/Section: DoIT/CMS BoAS - Surplus Property Control

Need Identified Date: 02/26/2025 Supply/Service Need By Date: 09/01/2025

Project Title: AssetWorks ReCoup for Surplus Property Management Software 2026

Vendor: AssetWorks USA, Inc.

Provide a description of the supplies or services required:

The State surplus inventory system requires the following Assetworks annual license renewal in order to maintain its present level of functionality: Recoup Annual Renewal - Period of Service: 09/01/2025 to 08/31/2026

Value: Actual Value of Initial Term, this Change Order or Amendment: 188,243.33

Will this Sole Source amend a Professional or Artistic Services contract? Yes No

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Type: New Sole Economically Feasible Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: 09/01/2025

Estimated Contract End Date: 08/31/2026

Number of Potential Renewals: 0

Length of Each Renewal in Months: 0

Total Value of All Renewals: 0

If a Term Contract, does the term, including renewals, exceed 12 months? Yes No

Section III - Funding Source Select the type of funding to be used (Check all that apply): State Appropriate Funds Federal Funds Other (Explain):

Section IV - Sole Source Justification

This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)

Items are Copyrighted or Patented and the Items are Only Available from the Holder

Are there secondary justification(s) for this sole source? Yes No

Another justification that this purchase is only available from a sole source is because it is:

Compatibility of Equipment, Accessories, Replacement Parts or Service

Another justification that this purchase is only available from a sole source is because it is:

Software License/Upgrade/Maintenance

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Bulletin Reference Number 25-448DOIT-ADMIN-B-48442

Requesting Agency/University DoIT/CMS BoAS - Surplus Property Control

Section V - Purchase History

Has the Agency or University Purchased these supplies or services in the past? Yes No

Term Term From Term To Value Description Contract Number Type

1 09/01/2024 08/31/2025 171,130.3 AssetWorks ReCoup for Surplus Property Management Software P-70922 Sole Source

2 09/01/2023 08/31/2024 155,573 AssetWorks Surplus Management Suite P-56530/CIT4038609 Emergency

3 09/01/2022 08/31/2023 141,430 AssetWorks Surplus Management Suite P-43889/CIT3032069 Emergency

4 09/01/2021 08/31/2022 134,695 AssetWorks Surplus Management Suite P-29887/CIT2024574 Emergency

5 09/01/2020 `08/31/2021 150,000 AssetWorks Surplus Management Suite P-20173/CIT0123730 Sole Source

6 09/01/2019 08/31/2020 122,173 AssetWorks Surplus Management Suite P-12373/CIT0123730 Sole Source

7 09/01/2018 08/31/2019 99,814.72 AssetWorks Surplus Management Suite P-5095/CIT9509500 Small Purchase

8 09/01/2017 08/31/2018 110,905.25 MC Adminstrator for Surplus Property Division of Central Management Services (SS)

CIC8086280 Sole Source

9 09/01/2016 08/31/2017 124,000 PBC-17-101648 CIC7016480 Sole Source

10 09/01/2015 08/31/2016 90,000 PBC-16-95584 CIC6955840 Sole Source

If more than 10, or if other comments, explain:

05/05/2015 - 08/31/2015 ($40,000) PBC-15-91757 - CIC917570 - Small Purchase The original system was awarded pursuant to a competitive solicitation via the Request for Proposal process in 2009. From 2009 - 2015 the annual licensing was provided via the original contract, 2009 - 2012 and the subsequent renewal, 2012 - 2015, (CIC9297300).

Since the original contract expiration in May of 2015 the State has used a mix of Small Purchases, Sole Sources and Emergencies to maintain the annual licensing.

Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

The State surplus inventory system requires the following AssetWorks annual license renewal in order to maintain its present level of functionality: Recoup Annual Renewal - Period of Service: 09/01/2025 to 08/31/2026

This contract is fundamental to the operations of Surplus Property in conjunction with the Central Management System. AssetWorks provides a fully customized program that maintains and hosts Illinois' iBid system for State and Federal Surplus. Without this contract, the State and Federal Surplus Operations would no longer function online. The iBid system, along with the Federal and State Surplus Systems, generates between $3.5 million and $4.5 million annually for Illinois taxpayers. This contract is essential for sustaining the revenue stream that funds these programs and ensures compliance with Title 44 of the Administrative Code. Without it, our mission to administer and dispose of surplus property from state agencies, boards, commissions, universities, constitutional office-holders, and excess property from the U.S. Government would be severely impaired.

2. Provide a list and describe in detail the specifications required to satisfy the need:

The state is in need of the annual licensing required to maintain the system at its current levels of functionality. There are no other requirements or needs being met by this procurement. There are no professional services and/or other modifications or configurations that will take place as part of this contract.

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Bulletin Reference Number 25-448DOIT-ADMIN-B-48442

Requesting Agency/University DoIT/CMS BoAS - Surplus Property Control

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

Assetworks is a sole source vendor who does not engage with resellers or aftermarket companies to provide, distribute, sell, implement, or otherwise engage their proprietary systems. This hosted system is the exclusive web-based platform for the disposal of all state assets, including office furniture, vehicles, electronics, and more, for all agencies, boards, commissions, universities, and constitutional officeholders.

The current system has been highly customized to fit CMS Surplus and State needs for over 15 years. No vendor can provide this level of customization, features, support, maintenance, integration with other solutions, etc. within the amount of time left before the termination of the current annual licensing contract.

This contract will be used to maintain licensing and maintenance during such time as the competitively solicited replacement RFP (B-45148) can be published, evaluated and awarded.

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

The CMS/Bureau of Agency Services, Surplus Property Division, is responsible for disposing of state and federal assets. The state assets are valued annually between $3.5 million and $4.5 million.

This hosted system is the exclusive web-based platform for the disposal and transfer of all state assets, including office furniture, vehicles, electronics, and more, for all agencies, boards, commissions, universities, and constitutional officeholders. It provides a wide range of reports, custom reports, custom searching and filtering, asset creation, import/export functionalities, integrations with SAP and GSA platform, attachments, including admin modules to set permission levels, create and manage user accounts, State agency accounts, buyer accounts, etc. The system also includes integrated access to the web-based State auction system (iBid) and it's admin module (iBid Admin). Some features include user account/storefront/auction creation and management, reports, admin functions and integration with JetPay.

The customization of this software is tailored to the specific needs of CMS and the State, particularly through the use of tablet technology integrated with the iBid process. Tablets are crucial for maintaining peak operational performance, allowing our storekeepers to uniformly itemize, inventory, and track assets throughout their lifecycle from acquisition to liquidation. This technology enhances efficiency and maximizes returns for the State. The uniquely customized technology provided by this vendor is essential to the iBid system. Without it, our ability to itemize, inventory, list, and sell assets cost-effectively and efficiently would be greatly diminished, necessitating manual efforts that would lead to significant inefficiencies and increased costs.

A competitive solicitation has been published via BidBuy to seek a replacement solution that can match or exceed the functionality found in the current solution. The published RFP is set to open July, 15, 2025.

5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

A competitive solicitation has been published via BidBuy to seek a replacement solution that can match or exceed the functionality found in the current solution. The published RFP is set to open July, 15, 2025.

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

The alternative solutions will not be evaluated until after the posted due date of July 15, 2025

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

Market evaluation is being conducted via a competitive solicitation schedule to open July 15, 2025

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Bulletin Reference Number 25-448DOIT-ADMIN-B-48442

Requesting Agency/University DoIT/CMS BoAS - Surplus Property Control

6. Are there resellers or distributors?

Yes No N/A

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

The quote for the renewal contract time frame represents an increase of 9% from the previous year. This increase is at, or below, the average increase seen by the State over the past three years. Since there is no other source for the required licenses the State is confident that it has acquired the lowest possible pricing for this renewal. DoIT, in conjunction with CMS, have estimated the replacement value of the system at, or above, $2,000,0000.

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

Yes No

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

Ongoing licensing and maintenance is essential to support the existing software. Without it, the software will cease to function, and support will be unavailable to diagnose and correct issues. This would cause agency applications that rely on the software to become non-operational, thereby impacting critical services provided by the agencies and, consequently, the citizens of the State of Illinois.

Allowing maintenance to lapse could also incur additional expenses for reinstatement fees. To minimize service interruptions and costs, it is in the State's best interest to renew the maintenance contract.

10. Is there any additional information you would like to add to justify this sole source?

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Bulletin Reference Number 25-448DOIT-ADMIN-B-48442

Requesting Agency/University DoIT/CMS BoAS - Surplus Property Control

Section VII

Requesting Department Representative

Requesting Department Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

Date Jun 25, 2025

Printed Name Jeffrey Schukai E-mail Address jeff.schukai2@iullinois.gov

Phone Number 2178-524-3026

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed)

E-mail Address christopher.brinkmeyer@illinois.gov

Phone Number 217-524-7057 Date

Printed Name Chris Brinkmeyer

Agency Bureau/Division Head or University Purchasing Director and Not a Designee

SPO Approval and Signature Required

I have reviewed and understand the contents of this Sole Source Justification and agree with the State Agency or University determination.

I have reviewed and understand the contents of this Sole Source Justification and do not agree with the State Agency or University determination. As a result, the State Agency or University must explore other sourcing methods to satisfy their need.

State Purchasing Officer Signature Phone Number 217-685-9312 Date Jun 25, 2025

Printed Name Joshua Sergent E-mail Address joshua.sergent@illinois.gov

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Bulletin Reference Number 25-448DOIT-ADMIN-B-48442

Requesting Agency/University DoIT/CMS BoAS - Surplus Property Control

Sole Source Justification Form - Part II Section I - General Information

Project Title

Vendor

Initial Date of Procurement Bulletin Posting

Was a Sole Source hearing held per 30 ILCS 500/20-25?

Yes - Complete Section II and III below (Section II will only be visible when this option is selected)

No - Section II not required, go to Section III below Section III - CPO Approval and Signature Required

Based on my review, I authorize the Agency/University to proceed in accordance with the published Notice referenced above.

Based upon my review, I authorize the Agency/University to proceed with the following Changes.

Based on my review, the Agency/University is not authorized to proceed with this sole source as presented and my recommendation is that it be cancelled.

Other

CPO Signature CPO Phone

Printed Name Date

CPO E-mail

Version 7.01 Page of Sole Source Justification Form - Part I Section I - General Information Will this Sole Source amend a Professional or Artistic Services contract?

If yes, what was the original contract value?

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Section II - Proposed Term If a Term Contract, does the term, including renewals, exceed 12 months?

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

Section III - Funding Source Select the type of funding to be used (Check all that apply):

Section IV - Sole Source Justification Are there secondary justification(s) for this sole source?

Section V - Purchase History Has the Agency or University Purchased these supplies or services in the past?

Term Term From Term To Value Description Contract Number Type Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

2. Provide a list and describe in detail the specifications required to satisfy the need:

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

5. Has the Agency or University considered alternative supplies or services to satisfy their need?

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

5a. If no, why weren't alternatives evaluated?

6. Are there resellers or distributors?

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

8a. If yes, please provide details regarding future obligations and/or needs:

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

10. Is there any additional information you would like to add to justify this sole source?

Section VII Requesting Department Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed) SPO Approval and Signature Required Sole Source Justification Form - Part II Section I - General Information Was a Sole Source hearing held per 30 ILCS 500/20-25?

Section II - Sole Source Hearing Details The State posted to the Illinois Procurement Bulletin a description of the State's need, the justification for the sole source decision, and information regarding the opportunity to submit comments and testify at a public hearing. Notice of the hearing was also posted outside of the hearing room 48 hours prior to the hearing.

The public hearing was conducted for the purpose of receiving testimony regarding the sole source determination. The Hearing Officer recommends the following:

The following relevant documents are attached:

Section III - CPO Approval and Signature Required 9.0.0.2.20101008.1.734229

The original system was awarded pursuant to a competitive solicitation via the Request for Proposal process in 2009. From 2009 - 2015 the annual licensing was provided via the original contract, 2009 - 2012 and the subsequent renewal, 2012 - 2015, (CIC9297300). Since the original contract expiration in May of 2015 the State has used a mix of Small Purchases, Sole Sources and Emergencies to maintain the annual licensing.

Q1Answer: The State surplus inventory system requires the following AssetWorks annual license renewal in order to maintain its present level of functionality: Recoup Annual Renewal - Period of Service: 09/01/2025 to 08/31/2026

This contract is fundamental to the operations of Surplus Property in conjunction with the Central Management System. AssetWorks provides a fully customized program that maintains and hosts Illinois' iBid system for State and Federal Surplus. Without this contract, the State and Federal Surplus Operations would no longer function online. The iBid system, along with the Federal and State Surplus Systems, generates between $3.5 million and $4.5 million annually for Illinois taxpayers. This contract is essential for sustaining the revenue stream that funds these programs and ensures compliance with Title 44 of the Administrative Code. Without it, our mission to administer and dispose of surplus property from state agencies, boards, commissions, universities, constitutional office-holders, and excess property from the U.S. Government would be severely impaired.

The current system has been highly customized to fit CMS Surplus and State needs for over 15 years. No vendor can provide this level of customization, features, support, maintenance, integration with other solutions, etc. within the amount of time left before the termination of the current annual licensing contract.

This contract will be used to maintain licensing and maintenance during such time as the competitively solicited replacement RFP (B-45148) can be published, evaluated and awarded.

Q4Answer: The CMS/Bureau of Agency Services, Surplus Property Division, is responsible for disposing of state and federal assets. The state assets are valued annually between $3.5 million and $4.5 million.

This hosted system is the exclusive web-based platform for the disposal and transfer of all state assets, including office furniture, vehicles, electronics, and more, for all agencies, boards, commissions, universities, and constitutional officeholders. It provides a wide range of reports, custom reports, custom searching and filtering, asset creation, import/export functionalities, integrations with SAP and GSA platform, attachments, including admin modules to set permission levels, create and manage user accounts, State agency accounts, buyer accounts, etc. The system also includes integrated access to the web-based State auction system (iBid) and it's admin module (iBid Admin). Some features include user account/storefront/auction creation and management, reports, admin functions and integration with JetPay.

The customization of this software is tailored to the specific needs of CMS and the State, particularly through the use of tablet technology integrated with the iBid process. Tablets are crucial for maintaining peak operational performance, allowing our storekeepers to uniformly itemize, inventory, and track assets throughout their lifecycle from acquisition to liquidation. This technology enhances efficiency and maximizes returns for the State. The uniquely customized technology provided by this vendor is essential to the iBid system. Without it, our ability to itemize, inventory, list, and sell assets cost-effectively and efficiently would be greatly diminished, necessitating manual efforts that would lead to significant inefficiencies and increased costs.

A competitive solicitation has been published via BidBuy to seek a replacement solution that can match or exceed the functionality found in the current solution. The published RFP is set to open July, 15, 2025.