B-26011 - DHS-Parata -SSJF part I and part II - ehd - CPO Signed - 2.2.22.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number B-26011

Requesting Agency/University Illinois Department of Human Services

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

Department/Bureau/Section: Department of Human Services/OCAPS

Need Identified Date: Sep 13, 2021 Supply/Service Need By Date: Dec 13, 2021

Project Title: Automated medication packaging machines (2) Fox DC/Kiley DC

Vendor: The Chudy Group/ dba TCG Rx Pharmacy Workflow Solutions - Parata

Provide a description of the supplies or services required:

Purchase of two automated medication packaging machines with a five (5) year maintenance and repair service contract for each. This is for Fox Developmental Center & Kiley Developmental Center pharmacies. The price of the machines and maintenance plans are discounted when the repair and maintenance agreement is purchased at the same time.

Value: Not to Exceed Value of Initial Term, this Change Order or Amendment: 710,770.22

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: Feb 14, 2022

Estimated Contract End Date: 06/30/2022

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. Patent # US 2017/0017775 A1

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:

Software License/Upgrade/Maintenance

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

Compatibility of Equipment, Accessories, Replacement Parts or Service

Version 7.01 Page 2 of 6

Bulletin Reference Number B-26011

Requesting Agency/University Illinois Department of Human Services

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 Jun 17, 2010 Jun 17, 2010 2,440,121.96 Pharmacy Automation PSD3502643 IFB

2 Jun 25, 2015 Jun 25, 2015 221,143.14 Shapiro Pharmacy Pouch Repackaging 49X1050M40 Sole Source

3 Apr 8, 2019 Apr 8, 2019 709,474.02 Elgin/Murray (2) Auto Packaging Machines and maintenance MIS0001002 Sole Source

4 May 13, 2020 May 13, 2020 2,120,376.46 OCAPS RX Machines MIS00001037 Sole Source

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

Section VI - Business Rationale

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

Purchasing automation allows Fox and Kiley pharmacies to eliminate the drug delivery system currently being used at the two pharmacies, which is outdated, costly and has caused Workers Compensation claims. Both pharmacies have seen a raw material shortage for supplies needed to manufacture unit dose drug cassettes. This has kept them from replacing the cassettes or its components. By not replacing, the overall condition of the cassettes is fair to poor and sharing supply amongst pharmacies has been tough. Each pharmacy will see a reduction in annual drug costs by going to bulk purchasing and will see a reduction in inventory value when using the automation. Workflow efficiencies will also improve with the use of these machines. This is very important when staffing at both pharmacies has been difficult to maintain. Patient safety is enhanced with the use of these machines. Maintenance for the machines for 5 years.

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

2 ATP2 480 Canisters with unit dose or multi-dose packaging (includes replenishment kit, value $3500 and 1 case of paper & ribbon) 4 ULT Smart TrayRx Systems (4 ULT smartTrayRx docking stations, 4 ULT Smart TrayRx Clients, 4 Scanners, 4 Touch Screens, 4 BioMetrics, 4 UPS's, 4 Adjustable leg Kits, & 12 ULT Smart TrayRx-64 Trays.

2 Automatic Spoolers, 2 tabletop stand, 2 rolling stand and 2 cases of acrylic spools 2 ATP2 Wide lower packaging unit for ATP 2 2 ATP Series Equipment Interface to pharmacy information system.

2 On site implementation and installation training package for ATP Series.

2 five year annual service agreement for ATP with Greater than 192 canister capacity.

2 five year anual service agreement for ATP Lower Packaging Unit.

2 HEPA Vacuum for ATP Cleaning 2 HEPA replacement filter 2 ATP workflow Unit - 2 bay workstation 2 Canister Calibration Kits including the AVF-1 2 shipping expenses.

Version 7.01 Page 3 of 6

Bulletin Reference Number B-26011

Requesting Agency/University Illinois Department of Human Services

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?

IDHS purchased an automated pharmacy operations system in 2010. This purchase was made through a competitive bidding process.

The FastPak EXP machines are a intregal part of the automated pharmacy system (RX Works), which is a proprietary system. The purchase of the additional FastPak EXP drug packaging machines will use the existing software program, after hours cabinets, and drug trays currently being used by all IDHS Facilities. It is important to that we purchase the same equipment with the same operating system in order to maintain consistency and system compatibility.

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 FastPak EXP/ATP2 drug dispensing machine is the only machine that can be used with the automated pharmacy system in use by IDHS. These machines are integrated into the current pharmacy inventory system which is RX Works. The FastPak EXP/ATP2 machines contain an inventory of medications, that inventory is maintained and replenished along with the rest of the pharmacy inventory. With a unit dosing machine other than the FastPak EXP(or ATP2), that feature would not be available due to RX Works being a proprietary system, without that feature available; pharmacists have to spend more time managing inventories.

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

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

This machine is part of an automated pharmacy system that IDHS has already purchased. Using the same make and model ensures compatibility between machines and replacement parts and removes the opportunity for operator error resulting from differences in machine types.

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?

This price is in-line with the cost of the similar machines purchased via the competitive bid in 2010 and also the pricing from the purchase in 2015, 2019 and 2020 (please refer to previous Bid# 13733).

The 2015 purchase for the machine was $179,000 per machine (without additional features), the 2019 price per machine was $190,000, The purchase price per machine including the 5 year warranty in 2020 is $190, 220 and the purchase price per machine with the 5 year warranty in 2021 is $190, 220. The increase is less than 6% over 6 years. Pricing was discounted 23% under MSRP.

In 2019, two automated medication packaging machines and the maintenance for the machines, was purchased for Elgin MHC and Murray DC Pharmacies. The cost of this purchase was $709,474.12. The 2020 purchase for Madden, Choate, Alton, Chester, Ludeman & McFarland had a minimal increase per machine, (mainly shipping costs), putting the 2020 purchase price at $2,121,674.46.

The proposed cost for the two new machines including repairs and maintenance for 5 years for Fox and Kiley is $710,770.22 ($355,385.11 each), which is only a slight increase from the previous per unit cost. Upon comparison to the MMCAP pricing, the quote from Parata is 16% less for the machine costs and provides a $13,500 discount on the five (5) year repair and maintenance plans if purchased at the same time. Additionally, the maintenance plan rate is fixed for a five year period if it is purchased now; if it is purchased later, there will be an annual rate increase. This equates to a minimum savings of $117,575.78 for the state if we purchase the equipment and maintenance from Parata now.

In addition, were DHS to replace the entire pharmacy automation system, the State would have to replace the current nine machines up and running and would lose the State's initial investment of 3.3 million dollars as listed above in section V. Along with any leftover packaging supplies currently stocked.

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

Yes No

Version 7.01 Page 4 of 6

Bulletin Reference Number B-26011

Requesting Agency/University Illinois Department of Human Services

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?

To buy a new machine not compatible with the current system, IDHS would need to buy an entirely new system to support the one machine. That would increase the cost.

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

No.

Version 7.01 Page 5 of 6

Bulletin Reference Number B-26011

Requesting Agency/University Illinois Department of Human Services

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 Oct 27, 2021

Printed Name Julie D. Gillmore E-mail Address julie.d.gillmore@illinois.gov

Phone Number 217-557-0833

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 jean.sandstrom@illinois.gov

Phone Number 217-557-9298 Date Jan 14, 2022

Printed Name Jean Sandstrom

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 217-782-2338 Date Jan 19, 2022

Printed Name Richard (Dick) Welch E-mail Address Richard.Welch@Illinois.gov

Version 7.01 Page 6 of 6

Bulletin Reference Number B-26011

Requesting Agency/University Illinois Department of Human Services

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

Project Title Automated medication packaging machines (2) Fox DC/Kiley DC

Vendor The Chudy Group/ dba TCG Rx Pharmacy Workflow Solutions - Parata

Initial Date of Procurement Bulletin Posting Jan 19, 2022

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 (217) 558-2231

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

4 ULT Smart TrayRx Systems (4 ULT smartTrayRx docking stations, 4 ULT Smart TrayRx Clients, 4 Scanners, 4 Touch Screens, 4 BioMetrics, 4 UPS's, 4 Adjustable leg Kits, & 12 ULT Smart TrayRx-64 Trays.

2 Automatic Spoolers, 2 tabletop stand, 2 rolling stand and 2 cases of acrylic spools 2 ATP2 Wide lower packaging unit for ATP 2 2 ATP Series Equipment Interface to pharmacy information system.

2 On site implementation and installation training package for ATP Series.

2 five year annual service agreement for ATP with Greater than 192 canister capacity.

2 five year anual service agreement for ATP Lower Packaging Unit.

2 HEPA Vacuum for ATP Cleaning 2 HEPA replacement filter 2 ATP workflow Unit - 2 bay workstation 2 Canister Calibration Kits including the AVF-1 2 shipping expenses.

The 2015 purchase for the machine was $179,000 per machine (without additional features), the 2019 price per machine was $190,000, The purchase price per machine including the 5 year warranty in 2020 is $190, 220 and the purchase price per machine with the 5 year warranty in 2021 is $190, 220. The increase is less than 6% over 6 years. Pricing was discounted 23% under MSRP.

In 2019, two automated medication packaging machines and the maintenance for the machines, was purchased for Elgin MHC and Murray DC Pharmacies. The cost of this purchase was $709,474.12. The 2020 purchase for Madden, Choate, Alton, Chester, Ludeman & McFarland had a minimal increase per machine, (mainly shipping costs), putting the 2020 purchase price at $2,121,674.46.

The proposed cost for the two new machines including repairs and maintenance for 5 years for Fox and Kiley is $710,770.22 ($355,385.11 each), which is only a slight increase from the previous per unit cost. Upon comparison to the MMCAP pricing, the quote from Parata is 16% less for the machine costs and provides a $13,500 discount on the five (5) year repair and maintenance plans if purchased at the same time. Additionally, the maintenance plan rate is fixed for a five year period if it is purchased now; if it is purchased later, there will be an annual rate increase. This equates to a minimum savings of $117,575.78 for the state if we purchase the equipment and maintenance from Parata now.

In addition, were DHS to replace the entire pharmacy automation system, the State would have to replace the current nine machines up and running and would lose the State's initial investment of 3.3 million dollars as listed above in section V. Along with any leftover packaging supplies currently stocked.