B-26011 - DHS Parata SSJF - SPO Signed 1.19.21.pdf

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Sole Source Justification Form 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.