Attachment 1_Original SP-1240-20_Final.pdf

SP-1240-20 Page 1 of 4

REQUEST FOR SPECIAL PROCUREMENT No. SP-1240-20

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

1. Requesting Agency Name: The Department of Administrative Services, Procurement Services (DAS PS) on behalf of the Oregon Department of Human Services (ODHS), Oregon Health Authority (OHA) and Department of Justice (DOJ)

2. Date of Request: December 18, 2020 3. Agency Number: 107090

4. Agency Contact Name: Sara Stone 5. Phone: (971) 707-1658

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

7. Time Period Requested: From: February 15, 2021 To: July 31, 2026

8. Total Estimated Cost: $13,883,000

9. Title: Supplies and/or Services to be Acquired:

Online Employment and Income Verification Services

10. Request, Background and Proposed Contracting Procedure:

a. Request:

DAS PS, on behalf of ODHS/OHA/DOJ, requests approval of this Special Procurement (SP) No. SP-1240- 20 to enter into a new cooperative contract with TALX Corporation (TALX) for The Work Number (TWN) income verification services for the period of five (5) years and a total not-to-exceed (NTE) of $13,883,000.

b. Background:

ODHS/OHA/DOJ have a need to verify current income and employment for the Establishment, Modification and Enforcement of child support orders and to determine eligibility for the following programs:

• Supplemental Nutrition Assistance Program (SNAP)

• Temporary Assistance for Needy Families (TANF)

• Medicaid

• HIV Programs

• Other ODHS/OHA programs

TWN is the largest provider of instant employment information; with more than 100 million current employment records, coming directly from employers’ payroll systems in real-time as payroll is processed.

TWN can also help find unreported income. Agencies use TWN service in tandem with public sector data sources to rapidly verify the most current employment and income information, online or in batch to provide timely services to their clients.

In June 2013, DOJ noticed the public via the Oregon Procurement Information Network (ORPIN) of a Sole Source No.137-1016-13 procurement and its intent to enter into a contract with TALX. The notice

SP-1240-20 Page 2 of 4 closed on June 25, 2013 without protest. DOJ and TALX executed Contract No. 137-1060-14, effective May 28, 2014 through May 31, 2021.

In June 2015, ODHS/OHA noticed the public via ORPIN of a Sole Source No. DHS-4009-15 procurement and its intent to enter into a contract with TALX. The notice closed on June 30, 2015 without protest.

ODHS/OHA and TALX executed Contract No. DHS-149278-16, effective December 22, 2015 through June 30, 2020. The ODHS/OHA contract has been extended to July 31, 2021 to allow for the continuation of services.

c. Current Need:

This Special Procurement is being requested to create a cooperative contract with TALX for use by ODHS/OHA/DOJ while other procurement options are being explored.

The table below represents the total estimated 5-yr cost for the anticipated services:

Service Estimated

Yearly Transactions

Ceiling

Annual Price Annual Account

Service Fee

Total Annual Price

Overage Fee (per transaction)

Year 1

350,000

$2,401,000 $48,000 $2,449,000 $7.36 Year 2 $2,548,000 $48,000 $2,596,000 $7.78 Year 3 $2,702,000 $48,000 $2,750,000 $8.22 Year 4 $2,894,500 $48,000 $2,942,500 $8.77 Year 5 $3,097,500 $48,000 $3,145,500 $9.35

*Total Estimated 5-Year Contract Price $13,883,000 *These numbers may fluctuate based on a number of factors, including time of year, unemployment rate, the COVID-19 pandemic, etc.

d. Proposed Contracting Procedure:

• DAS PS will issue a public notice on ORPIN, as required by Oregon Administrative Rule (OAR 125-

247-0287), for a period of seven (7) calendar days, regarding approval of this SP.

• Advertisement of the SP will serve as notification to the supplier community that DAS PS, on behalf of

ODHS/OHA/DOJ intends to direct award a contract to TALX for Online Employment and Income Verification Services and will include a provision that any affected person may protest the approval of the SP.

• If no protests to the SP are received or sustained, DAS PS will proceed with direct negotiations of the anticipated contract with TALX for Online Employment and Income Verification Services for five (5) years (through July 31, 2026) with a NTE of $13,883,000.

11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

The current contract with ODHS/OHA and TALX will expire July 31, 2021. As noted in Section 12 below, there are currently no other known providers that can efficiently provide the services required by the agencies and the agencies must have this service to continue the above referenced programs.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

SP-1240-20 Page 3 of 4

__X___ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

• Both ODHS/OHA and DOJ issued Sole Source procurements in prior years and did not receive protests.

• The National Council of Child Support Directors (NCCSD) surveyed states in September of 2020 regarding the state’s use of income verification services. Thirty (30) states responded and of those, twenty-two (22) are utilizing TALX for income verification services. Fifteen (15) states responded that they get income verification information directly from employers and zero responded that they utilize another vendor.

• Although the NCCSD survey did not include other programs that utilize income verification services, based on the responses in the survey that indicate state contracts included other state agencies, it stands to reason that if another survey was sent regarding those programs, the responses regarding the use of TALX would be similar given they have the largest employer database.

• Additionally, the requirement to verify income in these federal programs is consistent across federal agencies.

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:

Continuation of this service is vital for ODHS/OHA/DOJ and the clients each agency serves. Without Online Employment and Income Verification Services, additional resources would be required to be dedicated to manual income verifications via employers who typically do not respond at all, respond untimely, or direct the agency to TWN for verification. Direct verification from employers would lengthen the time for clients to receive support and potentially create barrier to support and self-sufficiency.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through ORPIN. Agency may elect to attach a signed Request.

Signature: e.g. Electronically in ORPIN _________________ Type Name: Date:

SP-1240-20 Page 4 of 4

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 execution of any contracts or amendments and will obtain Department of Justice (DOJ) legal sufficiency review and approval, as may be required.

4. ODHS/OHA/DOJ shall track all expenditures related to any contracts or amendments for services requested.

APPROVED:

Debbie Dennis, State Chief Procurement Officer, Date:

Department of Administrative Services

02/12/2021