Att. 2 exe SP_REQ-DASOBO-00028177_Amd-1.pdf

SP_REQ-DASOBO-00028177, Amd-1_EHLIS Subscription Services Page 1 of 5 (formerly SP-1189-20)

REQUEST FOR SPECIAL PROCUREMENT

No. REQ-DASOBO-00028177, Amendment 1

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

1. Requesting Agency Name: Oregon Health Authority (“OHA”)

2. Date of Request: August 23, 2022 3. Agency Number: 443000

4. Agency Contact Name: Traci Friedl 5. Phone: 971-374-3472

6. Type of Request: Class Special Procurement X Contract-specific Special Procurement

7. Amendment Time Period Requested: From: November 1, 2022 To: October 31, 2024

8. Total Estimated Cost for Amendment Time Period: $365,000 Note: The Contract Maximum not-to-exceed (“NTE”) Compensation is currently $327,600. With approval of this Special Procurement (“SP”) Request No. REQ-DASOBO-00028177, Amendment #1 and execution of the anticipated Contract amendment(s), the cumulative Contract Maximum NTE Compensation will be $692,600.

9. Title (Supplies and/or Services to be acquired): Environmental Health Licensing and Inspection System (“EHLIS”) Subscription Services

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

a. Amendment Request.

OHA requests approval of this SP Request #REQ-DASOBO-00028177 (formerly No. SP-1189-20), Amendment #1 to amend contract #DASPS-1782-20 (“Contract”) issued to HealthSpace USA, Inc.

(“HealthSpace” or “Contractor”) as follows:

1. extend the Term an additional two years; from October 31, 2022, to October 31, 2024.

2. increase the Maximum NTE Compensation an additional $365,000.

3. amend the Statement of Work (“SOW”) to address:

a. ongoing system testing and defect resolution; and

b. in-scope system enhancements (if required).

4. replace Oregon Department of Administrative Services, Procurement Services (“DAS PS”) with OHA as the party to the Contract, which may also result in a change to the Contract number.

b. Background.

The Food, Pool, Lodging, Health and Safety Program (“FPLHS”) is part of OHA’s Public Health Division (“PHD”), Environmental Public Health Section. FPLHS protects the health and safety of the public by implementing regulatory, educational, and consultative methods to prevent illness and injury to customers of licensed food, pool and lodging facilities. The FPLHS also provides leadership for local health departments to ensure safety in Oregon's 14,000 food service establishments, 8000 temporary restaurants, 3,200 public pools and 2,400 tourist facilities. FPLHS consults on environmental health issues for various institutions and government agencies and offers information to the general public on environmental health and sanitation issues.

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EHLIS History 2015: Lane County conducted a competitive procurement process (C00200-1009-15) seeking commercial-off-the-shelf (“COTS”) Environmental Health Licensing and Inspection Software to be used as statewide centralized data base, accessible by all Oregon counties. HealthSpace prevailed with award and Lane County issued Contract No. BO 15-07-21-02.

2017: Through Intergovernmental Agreements (“IGAs”), OHA and all Oregon counties completed their transition to the HealthSpace EHLIS.

2018: Lane County informed OHA that it no longer wanted to manage the contract with HealthSpace.

2020: DAS PS, on behalf of OHA, requested the ability to direct award a 2-year contract to HealthSpace for an updated version of EHLIS (“HealthSpace CloudSuite”), which could be used by OHA’s Local Public Health Authority (“LPHA”) partners (counties) and provide sufficient time for OHA to conduct a formal procurement process. SP-1189-20 (“SP_Attachment-1”) was approved and the Contract was issued.

2021: The updated system went live in 2021 and all LPHA partners were set up to use the CloudSuite EHLIS system. System testing and defect resolution activities have been ongoing since.

For additional historical and background information, see SP_Attachment-1

c. Current Need:

Original SP-1189-20 (SP_Attachment-1) stated OHA’s intent to conduct a new, Request for Proposals (“RFP”) procurement process in the 2020–2022 time period, seeking EHLIS system services. The RFP has been delayed for several reasons including:

• Covid 19 pandemic impacts, 2020 state wildfires, and Oregon’s 2021 ice storm, all of which temporarily diverted OHA resources.

• Much of 2020–2022 has been focused on transitioning to the upgraded, cloud-based EHLIS and navigating the testing phase and defect corrections, which are still ongoing.

OHA seeks to amend the Contract, extending the Term two (2) additional years to enable:

• continued use of the EHLIS system.

• ongoing system defects resolution and verification.

• in-scope system enhancements (if required).

• conduct of a new, formal RFP competitive process.

The total estimated cost for the period of performance requested in this SP Amendment #1 Request is set out in Table 10.C below.

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TABLE 10.C

Contract Amendment

No.

Description Time Period Cost

Contract

NTE

(at execution)

Anticipated Amendment

(s)

NTE

Contract (at execution)

Year 1 subscription 2020-2021 $163,800 $163,800 Year 2 subscription 2021-2022 $163,800 $327,600

1 Year 3 subscription (est.) 11/01/2022 – 10/31/2023 $165,000 $165,000

1 Year 4 subscription (est.) 11/01/2023 – 10/31/2024 $165,000 $330,000 1 Years 3-4 in-scope enhancements (est.)

11/01/2022 – 10/31/2024 $ 35,000 $365,000

Subtotal: $327,600 $365,000

Total Contract NTE – through Anticipated Amendment(s) $692,600

d. Proposed Contracting Procedure.

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, OHA will issue a public notice regarding approval of this SP Amendment No. 1 on the OregonBuys eProcurement system 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. DAS PS, working with OHA, will respond to and resolve all protests, if any.

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

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

6. Pursuant to OAR 137-045-0015, OHA will work with Oregon Department of Justice

(“DOJ”) and obtain its legal sufficiency approval prior to executing the Contract amendment(s), as required.

11. Justification for use of Special Procurement. Circumstances that justify the use of a Special

Procurement:

The Contract resulted from the alternate procurement process approved in original SP-1189-20 (SP- Attachment-1). The Contract is, therefore, connected to SP-1189-20 and the terms and conditions approved therein. SP-1189-20 will expire October 31, 2022, and by default, the Contract will also expire unless both documents are amended.

• There is not enough time to conduct a formal RFP process, evaluate proposals, negotiate a contract, and potentially implement a new statewide system by November 1, 2022.

• Through EHLIS, all Oregon restaurants, mobile units, commissaries, warehouses, vending operations, swimming pools, spas, traveler’s accommodations, recreational parks and organizational camps are electronically licensed and inspected by LPHA partners. This system is essential for OHA and LPHA partners to meet the licensed facility requirements

SP_REQ-DASOBO-00028177, Amd-1_EHLIS Subscription Services Page 4 of 5 promulgated in Oregon Revised Statutes (“ORS”) and Oregon Administrative Rules (ORS 624, ORS 446, ORS 448, OAR 333-150-000, OAR 333-162, OAR 333-158, OAR 333-157, OAR 333-

060, OAR 333-062, OAR 333-030, OAR 333-031, OAR 330-029, OAR 333-012).

• OHA will complete a new, formal procurement process for an EHLIS system and services within the 2-year time extension requested in this SP Amendment #1 Request.

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:

• Contract expiration is imminent. No other vendor would be able to compete for and implement a new system and enroll all 36 Oregon counties in the span of one month.

• Within the 2-year time extension requested in this SP Amendment #1 Request (2022–2024), OHA will conduct a competitive procurement seeking future EHLIS services. The solicitation will be developed to encourage maximum competition possible among providers of the requisite system and services.

and ______ (b)(i) will 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:

Lost access to the existing HealthSpace cloud-based EHLIS will have significant and far-reaching impacts:

• OHA risks non-compliance with laws governing inspections of licensed Oregon facilities.

• County inspectors will have to resort to handwritten inspections. Not only will that affect the speed at which inspections are conducted but it will increase the risk of errors.

• Public visits to facilities that are out of compliance with health and safety requirements may occur.

• OHA will lose access to vital, real-time facility inspections data, which it uses to support program goals, evaluate LPHA performance, and address public health concerns statewide.

The public’s health, safety, and interests are best protected with OHA and its LPHA partners having continued access to the HealthSpace EHLIS system for collection of data, managed inspections, and facilities licensing activities.

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

Signature: e.g. Electronically in OregonBuys _________________ Name/Title: Date

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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 execution, if any.

APPROVED:

Kelly Mix, State Chief Procurement Officer, Date Department of Administrative Services