B-15111 SSJF Pitney_Bowes_FY21_Maint.pdf

Sole Source Justification Form

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Bulletin Reference Number 21-448DOIT-INFOT-B-15111

Requesting Agency/University DoIT

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

Department/Bureau/Section: DoIT/Infrastructure Services

Need Identified Date: Apr 2, 2020 Supply/Service Need By Date: Jul 1, 2020

Project Title: Pitney Bowes FY21 Maintenance Engage One & z/12 Finalist

Vendor: Pitney Bowes Business Insight

Provide a description of the supplies or services required:

Purchase annual maintenance on Finalist Module, IMS On-Line Windows Interface, CICS module software from Pitney Bowes Business Insight (formerly Pitney Bowes and Group 1). These perpetual licensed products run on the z/12 IBM mainframe (2827-z504 s/n A8BB7) and maintenance on the perpetual licensing of the Engage One base bundle (formerly referred to as

DOC1).

Value: Estimated Value of Initial Term, this Change Order or Amendment: 140,000

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: Jul 1, 2020

Estimated Contract End Date: Jun 30, 2021

Number of Potential Renewals: 0

Length of Each Renewal in Months:

Total Value of All Renewals:

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)

Software License/Upgrade/Maintenance

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

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Bulletin Reference Number 21-448DOIT-INFOT-B-15111

Requesting Agency/University DoIT

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 Mar 26, 2020 Jun 30, 2020 215,592 Engage One Upgrade P-16869 CIC59414760 Sole Source

2 Jul 1, 2019 Jun 30, 2020 326,440 Annual Maintenance - P-10800 CIT0108000 Sole Source

3 Jun 20, 2019 Jun 30, 2022 347,200 Reinstatement of Term License on z/196 Mainframe - P-10582 CIT9105820 Sole Source

4 Jul 1, 2018 Jun 30, 2019 313,885 Annual Maintenance PBC 105839 CIC8058390 Sole Source

5 Jul 1, 2017 Jun 30, 2018 301,812 Annual Maintenance PBC 105839 CIC8058390 Sole Source

6 Jul 1, 2016 Jun 30, 2017 290,204 Annual Maintenance PBC 97353 CIC7973530 Sole Source

7 Jul 1, 2015 Jun 30, 2016 279,043 Annual Maintenance - PBC 93169 CIC6931690 Sole Source

8 Mar 31, 2015 Jun 30, 2015 126,760 Doc1 - Re-Platform and Version Upgrade - PBC 91476 CIC5914760 Sole Source

9 Jul 1, 2014 Jun 30, 2015 185,441 Annual Maintenance - PBC 86971 CIC5869810 Sole Source

10 Jul 1, 2013 Jun 30, 2014 198,267 Annual maintenance - PBC 78456 CIC4784560 Sole Source

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

07/1/12-06/30/13 $190,642 Annual maintenance - PBC 68237 CIC3682370-SS 07/1/11- 06/30/12 183,312 Annual Maintenance - PBC 58886 CIC2588860 - SS 07/1/10- 06/30/11 87,918 Annual Maintenance - PBC 53177 CIC1531770 7/1/10 - 6/30/11 17774 Annual Maintenance - PBC 50366 CIC1503660 Small Purchase 4/24/10 4/24/10 472,200 Order for Licenses PBC 52912 CIC0529120 Sole Source 10/8/09 10/7/10 53100 Purchase licenses - PBC 46762 CIC0467620 sole source 7/1/09 6/30/10 51462 Annual Maintenance - PBC 43843 CIC0438430 sole source 7/1/09 6/30/10 17062 Annual Maintenance - PBC 43236 CIC0432360 Small Purchase 12/31/2008 6/30/2010 785400 Purchase PBC 37129 CIC9371290 Competitively Bid 7/1/08 6/30/09 17053 Annual Maintenance - PBC 31742 CIC9317420 small purchase 7/1/07 6/30/08 16407 Annual Maintenance - PBC 24400 CIC8244000 small purchase 12/19/06 12/19/06 $223,499 CPU Upgrade PBC 20836 CICR0073D sole source 07/01/06 6/30/07 $10,950 Annual Maintenance - PBC 16025 CICR0073A, CICR0073B, CICR0073C sole source 06/05/06 06/30/07 $329,400 Purchase PBC 12582 CIC6125820 Competitively Bid

The State of Illinois has procured contracts for this software for more than 13 years for its ongoing needs.

Section VI - Business Rationale

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Bulletin Reference Number 21-448DOIT-INFOT-B-15111

Requesting Agency/University DoIT

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

Purchase annual maintenance on Finalist Module, IMS On-Line Windows Interface, CICS module software from Pitney Bowes Business Insight (formerly Pitney Bowes and Group 1). These perpetual licensed products run on the z/12 IBM mainframe (2827-z504 s/n A8BB7) and maintenance on the perpetual licensing of the Engage One base bundle (formerly referred to as DOC1)

The z/12 mainframe hosts applications that support critical business processes and operations for many State agencies. Finalist Module is an address verification application which allows us to be CASS certified and get USPS discounts. The IMS- On-line Windows Interface allows access to the address files via IMS applications, and the CICS Module allows access to the address files via CICS applications. The software Engage One (formerly DOC1) is used for the DES IBIS (Benefits Information System) and has the capability to preview the correspondence, make interactive modifications, and print quickly in both batch and on demand modes.

The maintenance being procured entitles the user to software upgrades and patches, and 9.5x5 technical support via phone and web.

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

Maintenance on Finalist Module, IMS On-Line Windows Interface, CICS module software from Pitney Bowes Business Insight (formerly Pitney Bowes and Group 1). These perpetual licensed products run on the z/12 IBM mainframe (2827-z504 s/n A8BB7) and maintenance on the perpetual licensing of the Engage One base bundle (formerly referred to as DOC1)

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?

DES is dependent on Finalist as part of their major business system applications IBIS(Unemployment Benefits System) and GFS (Benefit Funding Systems).

DHS/HFS are dependent on Finalist as part of their major business system application IES (Integrated Eligibility System) and HFS All Kids. Not having Finalist will have significant impact to the business operations of DHS/HFS.

DES is dependent on Engage One (formerly DOC1) for all IBIS correspondences that goes to State of Illinois recipients. DES is locked into using Engage One (formerly DOC1) as the usages of the bar codes from IBIS are written to use this product. Not having Engage One will have significant impact to the business operation of DES. Until such time as this software is deemed ineffective or no longer needed, DoIT must continue to procure the necessary maintenance and support to ensure the software is available and functions efficiently.

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:

At this time, DoIT must continue to procure the necessary licensing, maintenance and support to ensure that DES, DHS, HFS and IES applications and business that service the citizens of Illinois is not put at risk.

Pitney Bowes Software, Inc. (Group 1 Software) is the only vendor that can supply the required software licensing and maintenance because the software is patented or copyrighted and only available from holder of patent/copyright. Pitney Bowes Software, Inc.

(Group 1 Software) has been used for 5+ years to develop mission critical applications for DES and 11+ years for CASS certifications.

Migration of applications away from Pitney Bowes Software, Inc. (Group 1 Software) legacy DOC1 and newer EngageOne would take substantial time and money to complete.

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

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Bulletin Reference Number 21-448DOIT-INFOT-B-15111

Requesting Agency/University DoIT

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

It is estimated that migrating or changing to a different product that is currently used from Pitney Bowes by DES alone would require at least 2 years advance notice to prepare for application and system changed. The actual costs of those activities have yet to be officially determined, but conservative estimates would certainly be over $1 million. DoIT is continuing it's Application Rationalization for the State to evaluate applications and their disposition going forward (re-write, replace, sunset, etc). These rationalization efforts should continue to help determine the dependence on vendor centric solutions/products that will also help with procurement alignment efforts going forward.

The process of replacing these applications cannot be accomplished quickly or easily and requires significant funding and staff resources. It involves changes to business processes and methodologies; a complete redesign of the application; significant investments in software, IT hardware and infrastructure, training; full-time commitment of staff resources to complete; and continued maintenance and support of the existing system during the conversion.

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 maintenance costs in FY20 were $326,440. The proposal for FY21 maintenance will be around $140,000. DoIT was actually able to secure lower maintenance costs by upgrading to the Engage One bundle from the older DOC1 products in FY20. The annual maintenance costs are now lower cost due to migrating our licensing to the newer supported product.

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

Yes No

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

Until the current business applications that are dependent on the Pitney Bowes products used by DES, DHS, HFS and IES for critical business functions are no longer required, DoIT and the other user agencies must continue subscription, maintenance and support.

DoIT continues to utilize Application Rationalization for all applications and systems under the Executive Branch to quantify the usage of various applications along with vendor product dependencies. These efforts will continue to allow the State of Illinois to make better decisions about future procurement initiatives that should be more competitive in nature.

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?

Converting this system to a new platform will cost the State millions of dollars in software, hardware, contractual resources, and would take 2 years to accomplish. DoIT feels it is economically more feasible to continue utilizing the present vendor software, maintenance and support in lieu of spending such large amounts of taxpayer dollars to conduct a solicitation for a new product. Switching to another vendor's product would require a 2 year time frame. Pitney Bowes software and maintenance involves extensive proprietary development unique to the vendor, and any suitable replacement would also require the legacy products to continue to be procured until the new products have been full deployed and handling current operations.

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

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Bulletin Reference Number 21-448DOIT-INFOT-B-15111

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 5/19/2020

Printed Name Charles Wilson E-mail Address Charles.Wilson2@illinois.gov

Phone Number 217-557-9355

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 May 19, 2020

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 217-720-6771 Date May 20, 2020

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

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Bulletin Reference Number 21-448DOIT-INFOT-B-15111

Requesting Agency/University DoIT

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

Project Title Pitney Bowes FY21 Maintenance Engage One & z/12 Finalist

Vendor Pitney Bowes Business Insight

Initial Date of Procurement Bulletin Posting May 20, 2020

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 312-415-9612

Printed Name Ellen H. Daley Date

CPO E-mail Ellen.H.Daley@Illinois.gov

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 Ellen.H.Daley@Illinois.gov

07/1/11- 06/30/12 183,312 Annual Maintenance - PBC 58886 CIC2588860 - SS 07/1/10- 06/30/11 87,918 Annual Maintenance - PBC 53177 CIC1531770 7/1/10 - 6/30/11 17774 Annual Maintenance - PBC 50366 CIC1503660 Small Purchase 4/24/10 4/24/10 472,200 Order for Licenses PBC 52912 CIC0529120 Sole Source 10/8/09 10/7/10 53100 Purchase licenses - PBC 46762 CIC0467620 sole source 7/1/09 6/30/10 51462 Annual Maintenance - PBC 43843 CIC0438430 sole source 7/1/09 6/30/10 17062 Annual Maintenance - PBC 43236 CIC0432360 Small Purchase 12/31/2008 6/30/2010 785400 Purchase PBC 37129 CIC9371290 Competitively Bid 7/1/08 6/30/09 17053 Annual Maintenance - PBC 31742 CIC9317420 small purchase 7/1/07 6/30/08 16407 Annual Maintenance - PBC 24400 CIC8244000 small purchase 12/19/06 12/19/06 $223,499 CPU Upgrade PBC 20836 CICR0073D sole source 07/01/06 6/30/07 $10,950 Annual Maintenance - PBC 16025 CICR0073A, CICR0073B, CICR0073C sole source 06/05/06 06/30/07 $329,400 Purchase PBC 12582 CIC6125820 Competitively Bid

The State of Illinois has procured contracts for this software for more than 13 years for its ongoing needs.

Q1Answer: Purchase annual maintenance on Finalist Module, IMS On-Line Windows Interface, CICS module software from Pitney Bowes Business Insight (formerly Pitney Bowes and Group 1). These perpetual licensed products run on the z/12 IBM mainframe (2827-z504 s/n A8BB7) and maintenance on the perpetual licensing of the Engage One base bundle (formerly referred to as DOC1)

The z/12 mainframe hosts applications that support critical business processes and operations for many State agencies. Finalist Module is an address verification application which allows us to be CASS certified and get USPS discounts. The IMS- On-line Windows Interface allows access to the address files via IMS applications, and the CICS Module allows access to the address files via CICS applications. The software Engage One (formerly DOC1) is used for the DES IBIS (Benefits Information System) and has the capability to preview the correspondence, make interactive modifications, and print quickly in both batch and on demand modes.

The maintenance being procured entitles the user to software upgrades and patches, and 9.5x5 technical support via phone and web.

Q2Answer: Maintenance on Finalist Module, IMS On-Line Windows Interface, CICS module software from Pitney Bowes Business Insight (formerly Pitney Bowes and Group 1). These perpetual licensed products run on the z/12 IBM mainframe (2827-z504 s/n A8BB7) and maintenance on the perpetual licensing of the Engage One base bundle (formerly referred to as DOC1)

Q3Answer: DES is dependent on Finalist as part of their major business system applications IBIS(Unemployment Benefits System) and GFS (Benefit Funding Systems).

DHS/HFS are dependent on Finalist as part of their major business system application IES (Integrated Eligibility System) and HFS All Kids. Not having Finalist will have significant impact to the business operations of DHS/HFS.

DES is dependent on Engage One (formerly DOC1) for all IBIS correspondences that goes to State of Illinois recipients. DES is locked into using Engage One (formerly DOC1) as the usages of the bar codes from IBIS are written to use this product. Not having Engage One will have significant impact to the business operation of DES. Until such time as this software is deemed ineffective or no longer needed, DoIT must continue to procure the necessary maintenance and support to ensure the software is available and functions efficiently.

Q4Answer: At this time, DoIT must continue to procure the necessary licensing, maintenance and support to ensure that DES, DHS, HFS and IES applications and business that service the citizens of Illinois is not put at risk.

Pitney Bowes Software, Inc. (Group 1 Software) is the only vendor that can supply the required software licensing and maintenance because the software is patented or copyrighted and only available from holder of patent/copyright. Pitney Bowes Software, Inc. (Group 1 Software) has been used for 5+ years to develop mission critical applications for DES and 11+ years for CASS certifications. Migration of applications away from Pitney Bowes Software, Inc. (Group 1 Software) legacy DOC1 and newer EngageOne would take substantial time and money to complete.

The process of replacing these applications cannot be accomplished quickly or easily and requires significant funding and staff resources. It involves changes to business processes and methodologies; a complete redesign of the application; significant investments in software, IT hardware and infrastructure, training; full-time commitment of staff resources to complete; and continued maintenance and support of the existing system during the conversion.