B-11358 SSJF Part I (002).pdf

Sole Source Justification Form

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Bulletin Reference Number 20-448DOIT-ADMIN-B-11358

Requesting Agency/University DoIT

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

Department/Bureau/Section: DoIT

Need Identified Date: Jun 7, 2019 Supply/Service Need By Date: Jan 1, 2020

Project Title: Nextalk/Textnet Sole Source Contract

Vendor: Hitec, Inc.

Provide a description of the supplies or services required:

Hitec provides Nextalk/Textnet Services for the State of Illinois to provide equally effective communication to individuals with disabilities, including hearing and speech impairments. The manufacturer of this equipment is NXi Communications, Inc. The current system provides the State with TTY services via a LAN based network terminating on the users PC. An 800 # provided by Hitec is required to place an outside TTY call into the Hitec server in Chicago (Burr Ridge), which then is routed to the called agency. Forty eight 800#'s were initially provided as part of the original installation. As this sytem continues to grow, more users have been added. We currently have a total of 280 800#'s assigned and 635 users for agencies such as DHS, DES, Secretary of State, Aging, Revenue and others. DoIT will procure these services and they will be available for use by other agencies.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 110,000

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 Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Jan 1, 2020

Estimated Contract End Date: Dec 31, 2020

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)

Compatibility of Equipment, Accessories, Replacement Parts or Service

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Bulletin Reference Number 20-448DOIT-ADMIN-B-11358

Requesting Agency/University DoIT

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

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 1/1/2008 Dec 31, 2008 108,950 Nextalk/Hitec services for the disabled CMC720930A Renewal

2 Jan 1, 2009 Dec 31, 2009 109,550 Nextalk/Hitec services for the disabled CIC9378690 Sole Source

3 Jan 1, 2010 Dec 31, 2010 110,750 Nextalk/Hitec services for the disabled CIC937869A Renewal

4 Jan 1, 2011 Dec 31, 2011 110,750 Nextalk/Hitec services for the disabled CIC1568950 Sole Source

5 Jan 1, 2012 Dec 31, 2012 110,750 Nextalk/Hitec services for the disabled CIC2658740 Sole Source

6 Jan 1, 2013 Dec 31, 2013 110,750 Nextalk/Hitec services for the disabled CIC3745680 Sole Source

7 Jan 1, 2014 Dec 31, 2014 110,750 Nextalk/Hitec services for the disabled CIC4829090 Sole Source

8 Jan 1, 2015 Dec 31, 2015 110,750 Nextalk/Hitec services for the disabled CIC5895070 Sole Source

9 Jan 1, 2016 Dec 31, 2016 110,750 Nextalk/Hitec services for the disabled CIC6958420 Sole Source

10 Jan 1, 2017 Dec 31, 2017 110,750 Nextalk/Hitec services for the disabled CIC7996690 Sole Source

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

1/1/18 to 12/31/18 - $110,000 - Nextalk/Hitec services for the disabled - CIC8085510 - Sole Source.

1/1/19to 12/31/19- $110,000 - Nextalk/Hitec services for the disabled - CIT9608800 - Sole Source.

Hitec is the only authorized distributor of Nextalk for NXI Communications in Illinois and Wisconsin.

Section VI - Business Rationale

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

Each State Agency is required to provide a way for the deaf or hard of hearing to be able to communicate with them as well as let state employees that are deaf or hard of hearing communicate with the public. The services provided by Textnet/Hitec will meet these requirements.

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Bulletin Reference Number 20-448DOIT-ADMIN-B-11358

Requesting Agency/University DoIT

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

TEXTNET/NTTS, “Networked TTY Services,” is an integrated Centrex-like system that combines the capabilities of the public switched telephone network communication and TCP/IP network communication system into a system for TTY text chat and text messaging utilizing the State’s desktop PC’s as TTY terminals. TEXTNET/NTS makes enhanced instant messaging and other services available to every licensed user while providing advanced specialized services for TTY users which include people who are deaf, severely hard-of-hearing, or speech restricted.

The NTS user software is currently installed on multiple users’ computers within various Agencies and one or more TTY compatible TEXTNET Access Ports are linked with each Agency’s LAN or WAN. With access to TEXTNET/NTS’ TTY compatible telephony services and hardware, every licensed user in each Agency is “TTY enabled” and can make or accept calls from TTY callers via the PCs in that Agency.

Every user can also exchange secure instant messages and calls with every other TEXTNET/NTS user on the Agency’s LAN or WAN. With the optional National “Link”, anyone on an Internet browser can call TEXTNET/NTS sites or domains. All text traffic over TEXTNET/NTS is 128 bit AES encrypted.

TEXTNET/NTS systems are sold by the number of users on the system and the number of telephony Access Ports subscribed. The State may request certain options are available. These would be at an additional charge.

The number of User Access Licenses controls the number of users who can log into TEXTNET/NTS at any one time and also sets the number of permanent user accounts supported within the NTS database. A single telephony Access Port can handle one phone call at a time through the Public Switched Telephone Network (PSTN). The number of simultaneous TTY conversations required during peak call periods will determine the number of Access Ports required by an Agency.

Access Port Licenses: HITEC hosts access ports for TEXTNET/NTS sites, and will issue one or more “800” numbers to each agency.

Multiple telephone numbers may be assigned to an Access Port. If a TTY caller dials this number, then the call will arrive at T1 high density TTY capable telephony equipment in HITEC’s central office. The TEXTNET/NTS system will look at the number dialed (DNIS/DID) and then route the call to the correct location or person or call flow script within each agency. With TEXTNET/NTS, HITEC provides the necessary telephony hardware, computers, and phone lines needed to accept calls from TTY users via the public switched telephone network or via Internet or TCP/IP paths.

User Access Licenses: The cost of each NTS User License depends on the total number of users licensed.

Optional TEXTNET/NTS Services 1)NTS Link Option – This option is included for one year with the purchase of an NTS system. The cost of maintaining the NTS Link is 35 percent of the current software cost for the NTS organization’s software licenses, per year. A linked NTS site must also purchase the Software Maintenance Agreement (subsection 2, below).

2) Software Maintenance Agreement – The NTS Maintenance Agreement is included in the NTS software license for the first year after purchase. A yearly Software Maintenance Agreement renewal is available for 15% of the current software licenses cost for the year the agreement is purchased. The NTS Maintenance Agreement provides unlimited telephone and e-mail technical support for designated NTS administrators within the organization, and provides free upgrades from the NTS website to the current version of NTS.

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?

Hitec International Group Inc., currently is the Sole Source Provider of Nextalk Service for Illinois & Wisconsin. Hitec has been the vendor for the State of Illiois since January 2002. Hitec is the only provider of this service in Illinois and Wisconsin based on the manufacturer's (NXI Communications) letter. The State is required to do reasonable accommodations for employees that are hearing impaired and need to communicate with the public that call into agency offices where these hearing impaired employees work.

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:

Hitec is the only vendor in Illinois and Wisconsin that provides this service. This is a proprietary technology. This system allows for quick response to the Deaf and Hard of Hearing community

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

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Requesting Agency/University DoIT

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

Searching the Internet for this type of service brings up the Hitec Website and NXI communications website. No other service of this type was listed. We have never found a vendor other than Hitec that can do this service.

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:

No alternatives

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).

There are no other vendors. this is a proprietary technology

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?

Hitech agreed last year to lower the price for software maintenance by 5% to $36,812.50 last year. They cannot lower it again this year, but they agreed to keep pricing the same as 2019.

Pricing has remained the same for software maintenance for the past 4 years at $38,750.00 per year. (This is split between the 2 fiscal years $19,375.00 per FY). The monthly charge is $4800.00 per month for the port licenses which includes 48 800#'s. Each additional 800# is $5.00 per month. Currently there are 280. The total monthly fee is $6,000.00 per month. This could increase if the State requires additional 800#'s. The reason for the cost increase has been the additional 800#'s that have been required by the State for additional users.

Software Maintenance = $36,812.50 per year Port Licenses = $4,800.00 per month = $57,600 per year 800#’s = 232 x $5.00 = $1,160 per month = $13,920 per year $36,812.50 + $57,600.00 + $13,920.00 = $108,332.50per year for this contract Add for the fluctuation of the number of port licenses and 800#’s = $110,000 per year

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?

Hitec has assigned the State 268 800#'s for use with the Nextalk Service. If Hitec was not our vendor we would have to have Hitec release the numbers to the State. We would also need to find another vendor who provides similar service which at this time Hitec is the only authorized distributor of Nextalk for NXI Communications in Illinois and Wisconsin. Also, agencies would need to purchase TTY equipment as a replacement until a new contract is in place. There is no master contract to purchase TTY equipment. TTY equipment has to be bid and runs approximately $400 per unit

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

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Bulletin Reference Number 20-448DOIT-ADMIN-B-11358

Requesting Agency/University DoIT

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 Nov 7, 2019

Printed Name Ed Fedor E-mail Address ed.fedor@illinois.gov

Phone Number 217-524-9911

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 dante.watson@illinois.gov

Phone Number 217-524-2733 Date Nov 7, 2019

Printed Name Dante' Watson

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 217-524-1704 Date Nov 8, 2019

Printed Name Kylie Carter E-mail Address Kylie.Carter@Illinois.gov

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Bulletin Reference Number 20-448DOIT-ADMIN-B-11358

Requesting Agency/University DoIT

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

1/1/19to 12/31/19- $110,000 - Nextalk/Hitec services for the disabled - CIT9608800 - Sole Source.

Hitec is the only authorized distributor of Nextalk for NXI Communications in Illinois and Wisconsin.

Q1Answer: Each State Agency is required to provide a way for the deaf or hard of hearing to be able to communicate with them as well as let state employees that are deaf or hard of hearing communicate with the public. The services provided by Textnet/Hitec will meet these requirements.

Q2Answer: TEXTNET/NTTS, “Networked TTY Services,” is an integrated Centrex-like system that combines the capabilities of the public switched telephone network communication and TCP/IP network communication system into a system for TTY text chat and text messaging utilizing the State’s desktop PC’s as TTY terminals. TEXTNET/NTS makes enhanced instant messaging and other services available to every licensed user while providing advanced specialized services for TTY users which include people who are deaf, severely hard-of-hearing, or speech restricted.

The NTS user software is currently installed on multiple users’ computers within various Agencies and one or more TTY compatible TEXTNET Access Ports are linked with each Agency’s LAN or WAN. With access to TEXTNET/NTS’ TTY compatible telephony services and hardware, every licensed user in each Agency is “TTY enabled” and can make or accept calls from TTY callers via the PCs in that Agency. Every user can also exchange secure instant messages and calls with every other TEXTNET/NTS user on the Agency’s LAN or WAN. With the optional National “Link”, anyone on an Internet browser can call TEXTNET/NTS sites or domains. All text traffic over TEXTNET/NTS is 128 bit AES encrypted.

TEXTNET/NTS systems are sold by the number of users on the system and the number of telephony Access Ports subscribed. The State may request certain options are available. These would be at an additional charge.

The number of User Access Licenses controls the number of users who can log into TEXTNET/NTS at any one time and also sets the number of permanent user accounts supported within the NTS database. A single telephony Access Port can handle one phone call at a time through the Public Switched Telephone Network (PSTN). The number of simultaneous TTY conversations required during peak call periods will determine the number of Access Ports required by an Agency.

Access Port Licenses: HITEC hosts access ports for TEXTNET/NTS sites, and will issue one or more “800” numbers to each agency. Multiple telephone numbers may be assigned to an Access Port. If a TTY caller dials this number, then the call will arrive at T1 high density TTY capable telephony equipment in HITEC’s central office. The TEXTNET/NTS system will look at the number dialed (DNIS/DID) and then route the call to the correct location or person or call flow script within each agency. With TEXTNET/NTS, HITEC provides the necessary telephony hardware, computers, and phone lines needed to accept calls from TTY users via the public switched telephone network or via Internet or TCP/IP paths.

User Access Licenses: The cost of each NTS User License depends on the total number of users licensed.

Optional TEXTNET/NTS Services 1)NTS Link Option – This option is included for one year with the purchase of an NTS system. The cost of maintaining the NTS Link is 35 percent of the current software cost for the NTS organization’s software licenses, per year. A linked NTS site must also purchase the Software Maintenance Agreement (subsection 2, below).

2) Software Maintenance Agreement – The NTS Maintenance Agreement is included in the NTS software license for the first year after purchase. A yearly Software Maintenance Agreement renewal is available for 15% of the current software licenses cost for the year the agreement is purchased. The NTS Maintenance Agreement provides unlimited telephone and e-mail technical support for designated NTS administrators within the organization, and provides free upgrades from the NTS website to the current version of NTS.

Q3Answer: Hitec International Group Inc., currently is the Sole Source Provider of Nextalk Service for Illinois & Wisconsin. Hitec has been the vendor for the State of Illiois since January 2002. Hitec is the only provider of this service in Illinois and Wisconsin based on the manufacturer's (NXI Communications) letter. The State is required to do reasonable accommodations for employees that are hearing impaired and need to communicate with the public that call into agency offices where these hearing impaired employees work.

Pricing has remained the same for software maintenance for the past 4 years at $38,750.00 per year. (This is split between the 2 fiscal years $19,375.00 per FY). The monthly charge is $4800.00 per month for the port licenses which includes 48 800#'s. Each additional 800# is $5.00 per month. Currently there are 280. The total monthly fee is $6,000.00 per month. This could increase if the State requires additional 800#'s. The reason for the cost increase has been the additional 800#'s that have been required by the State for additional users.

Software Maintenance = $36,812.50 per year Port Licenses = $4,800.00 per month = $57,600 per year 800#’s = 232 x $5.00 = $1,160 per month = $13,920 per year $36,812.50 + $57,600.00 + $13,920.00 = $108,332.50per year for this contract Add for the fluctuation of the number of port licenses and 800#’s = $110,000 per year