B-26076 JPMC Drugs and Pharmaceuticals EmergPurchase Statement Extension ehd.pdf

EMERGENCY PURCHASE STATEMENT

Statement Page 1 of 2 State of Illinois Chief Procurement Office Emergency Purchase Statement Version 22.1

Zip: 43017-1091State: OHCity: DublinAddress: 7000 Cardinal Place

Vendor: Cardinal Health 110, LLC

Zip: 62522State: ILCity: SpringfieldAddress: 1000 E Converse Street

Division: Bureau of Strategic SourcingAgency: Central Management Services (CMS)

Emergency Purchase Details Reference #: 22-416CMS-BOSS4-R-105541

Emergency Category (select the appropriate option from the drop-down menu below):

To prevent or minimize serious disruption in critical State services that affect health, safety, or collection of substantial State revenues

Reason for selection of this particular vendor:

18-416CMS-BOSS4-P-376 JPMC Drugs and Pharmaceuticals expires 09/30/2021. 30 ILCS 500/20-60(a) limits the duration of contracts to ten (10) years inclusive of renewals and extensions and as of its expiration date of 09/30/2021, this contract will be at the ten-year mark.

Bid 21-416CMS-BOSS4-B-22340 JPMC Drugs and Pharmaceuticals was published 06/04/2021 and bids were opened 08/04/2021 (this was a rebid of B-16903 which was canceled due to inadequate specifications and B-17371, which was canceled due to non-responsive bidders). The notice of award for B-22340 was published 08/25/2021, which started the 14-day protest period. The incumbent vendor for 18-416CMS-BOSS4-P-376 JPMC Drugs and Pharmaceuticals, Cardinal Health 411, LLC, is the awarded vendor for B-22340. A protest was received by the Chief Procurement Officer (CPO) 09/02/2021, which stayed the procurement until a determination was made by the CPO if the protest should be denied or upheld. The CPO's decision to deny the protest was received late afternoon September 30, 2021 and time is needed for CMS to review.

The BEP goal for this emergency contract will stay the same as the current contract at 0%. The recently awarded solicitation (B-22340) had a BEP goal of 8%.

In the event the new contract is not executed by 09/30/2021, and in consideration of the contract duration limitation and the fact that we cannot extend the current contract, Cardinal Health 411, LLC has agreed to a 90-day emergency contract at the same terms and conditions as the current contract to ensure that there is not a lapse in service. When the new contract is executed, we intend to cancel the emergency contract.

Description of supplies or services to be provided:

This is an emergency Joint Purchase Master Contract for drugs and pharmaceuticals to be purchased on an as-needed basis during the contract period by the Illinois Department of Human Services and Illinois Department of Public Health.

Is there an existing State contract available for the required supplies or services? Yes No

Expected Start Date: Oct 1, 2021 Estimated End Date*: Dec 29, 2021

Amount of this expenditure is: $ 25,000,000.00 Actual or Estimated*: Estimated *

*Actual end date and cost will be reported later.

Select the type of funding to be used: Federal Funds State Appropriated Funds State Grant Funds Other

Statement Page 2 of 2 State of Illinois Chief Procurement Office Emergency Purchase Statement Version 22.1

Zip: 43017-1091State: OHCity: DublinAddress: 7000 Cardinal Place

Vendor: Cardinal Health 110, LLC

Zip: 62522State: ILCity: SpringfieldAddress: 1000 E Converse Street

Division: Bureau of Strategic SourcingAgency: Central Management Services (CMS)

Signatures

I am making this statement and providing it to the CPO Office, the Auditor General, and the Procurement Policy Board in compliance with the Illinois Procurement Code and within 10 days after award of the contract.

I have authorized the emergency procurement in accordance with the requirements of the Illinois Procurement Code (30 ILCS 500) and the applicable administrative rule. I know and understand the contents of this statement and all statements herein are true and correct to the best of my knowledge.

Agency Signature: Title: Portfolio Manager for Agency Purchasing Officer

Printed Name: Will Stephens for Krysti Rinaldi Date: Oct 1, 2021

EMERGENCY PURCHASE EXTENSION

Extension Page 1 of 2 State of Illinois Chief Procurement Office Emergency Purchase Statement Version 22.1

Zip: 43017-1091State: OHCity: DublinAddress: 7000 Cardinal Place

Vendor: Cardinal Health 110, LLC

Zip: 62522State: ILCity: SpringfieldAddress: 1000 E Converse Street

Division: Bureau of Strategic SourcingAgency: Central Management Services (CMS)

Extension Justification Reference #: 22-416CMS-BOSS4-R-112489

Original Emergency Term Start Date: Oct 1, 2021 Original Emergency Term End Date: Dec 29, 2021

Amount of original: $25,000,000 Actual or Estimated*: Estimated *

Expected Extension Start Date: Dec 30, 2021 Expected Extension End Date*: Feb 28, 2022

Amount of extension expenditure: $17,000,000 Actual or Estimated*: Estimated *

Select the type of funding to be used: Federal Funds State Appropriated Funds State Grant Funds Other

Describe the scope of the original emergency (supply, service, etc.):

This is an emergency Joint Purchase Master Contract for drugs and pharmaceuticals to be purchased on an as-needed basis during the contract period by the Illinois Department of Human Services and Illinois Department of Public Health.

Describe the scope of the extension (supply, service, etc.). Show justification for extending the original emergency contract, and explain why the extension need cannot be met through a competitive process:

Bids for Bid 21-416CMS-BOSS4-B-22340 (B-22340) JPMC Drugs and Pharmaceuticals were opened 08/04/2021. The notice of award for B-22340 was published 08/25/2021, which started the 14-day protest period. A protest was received by the Chief Procurement Officer (CPO) on 09/02/2021, which stayed the procurement until 09/30/2021 when the CPO issued the determination to deny the protest.

After review of the CPO’s determination and consultation with the Business Enterprise Program, CMS determined that it was in the State's best interest to cancel the solicitation (B-22340) and rebid in order to encourage additional participation of minority, women, and persons with disability owned businesses. Accordingly, B-22340 was canceled 10/18/2021 pursuant to Section 1.2040(a) of the CPO- GS Procurement Rules, which provides that "[a]ny solicitation may be cancelled before or after opening" when it is "in the State's best interest". Section 1.2040(b)(1) further provides that the reasons for cancelling may "includ[e], but [are] not limited to" the reasons set forth in the non-exhaustive list provided in the rules.

As the prior contract, 18-416CMS-BOSS4-P-376 JPMC Drugs and Pharmaceuticals, expired on 09/30/2021 and could not be extended again pursuant to 30 ILCS 500/20-60(a), the current emergency contract was awarded in order to ensure no lapse in coverage for needed drugs and pharmaceuticals.

The rebid, 22-416CMS-BOSS4-B-25474 (B-25474), was published 10/26/2021 with a bid opening date of 12/14/2021. CMS worked with BEP prior to advertisement of B-25474 to confirm the BEP goal set for the contract is appropriate. The BEP was recalculated at 9% (vs.

8% for B-22340). At a mandatory prebid conference held on 11/09/2021, CMS staff answered questions related to BEP and stressed the importance of compliance with BEP requirements, including submitting a utilization plan demonstrating how the bidder intends to meet the BEP goal or requesting a waiver by demonstrating good faith efforts. Based on questions asked by potential bidders and the time needed to respond, the bid opening date may need to be extended. Vendor only agreed to a 60 day extension.

EMERGENCY PURCHASE EXTENSION

Extension Page 2 of 2 State of Illinois Chief Procurement Office Emergency Purchase Statement Version 22.1

Zip: 43017-1091State: OHCity: DublinAddress: 7000 Cardinal Place

Vendor: Cardinal Health 110, LLC

Zip: 62522State: ILCity: SpringfieldAddress: 1000 E Converse Street

Division: Bureau of Strategic SourcingAgency: Central Management Services (CMS)

Was authorization to proceed verbally given? No Yes NA

Term of emergency procurement shall not exceed 90 days. Contract may be extended beyond 90 days if CPO determines additional time is necessary; however, prior to execution of extension, CPO must hold a public hearing and provide written determination

*Actual end date and cost will be reported later.

Signatures Reference #: 22-416CMS-BOSS4-R-112489

I am requesting an extension of the requested emergency contract. I know and understand the contents of this statement and all statements herein are true and correct to the best of my knowledge.

Agency Signature: Title: Portfolio Manager for APO

Printed Name: Will Stephens for APO Krysti Rinaldi Date: Nov 19, 2021

CPO Signature

Based on my review, I authorize the Agency to proceed in accordance with the published Notice referenced above.

Based upon my review, I authorize the Agency to proceed with the following changes:

Approved CPO Signature: Date:

EMERGENCY PURCHASE FINAL COST AND TERM

Final Cost and Term Page 1 of 1 State of Illinois Chief Procurement Office Emergency Purchase Statement Version 22.1

Zip: 43017-1091State: OHCity: DublinAddress: 7000 Cardinal Place

Vendor: Cardinal Health 110, LLC

Zip: 62522State: ILCity: SpringfieldAddress: 1000 E Converse Street

Division: Bureau of Strategic SourcingAgency: Central Management Services (CMS)

Final Costs and Term Reference #:

Final total cost of supplies and services: Final total term of contract:

I am reporting the final costs and term for the referenced emergency contract to the CPO and the Auditor General.

Agency Signature: Title:

Printed Name: Date:

Page of

State of Illinois Chief Procurement Office Emergency Purchase Statement Version 22.1 .\CPO Letterhead\CPO Letterhead.png

EMERGENCY PURCHASE STATEMENT

Statement Page of State of Illinois Chief Procurement Office Emergency Purchase Statement Version 22.1 .\CPO Letterhead\CPO Letterhead.png Emergency Purchase Details Emergency Category (select the appropriate option from the drop-down menu below):

Reason for selection of this particular vendor:

Description of supplies or services to be provided:

Is there an existing State contract available for the required supplies or services?

If Yes is checked above, explain why the existing contract does not meet the need:

Actual or Estimated*:

*Actual end date and cost will be reported later.

Select the type of funding to be used:

Signatures I am making this statement and providing it to the CPO Office, the Auditor General, and the Procurement Policy Board in compliance with the Illinois Procurement Code and within 10 days after award of the contract.

I have authorized the emergency procurement in accordance with the requirements of the Illinois Procurement Code (30 ILCS 500) and the applicable administrative rule. I know and understand the contents of this statement and all statements herein are true and correct to the best of my knowledge.

EMERGENCY PURCHASE EXTENSION

Extension Page of State of Illinois Chief Procurement Office Emergency Purchase Statement Version 22.1 .\CPO Letterhead\CPO Letterhead.png Extension Justification Actual or Estimated*:

Actual or Estimated*:

Select the type of funding to be used:

Describe the scope of the original emergency (supply, service, etc.):

Describe the scope of the extension (supply, service, etc.). Show justification for extending the original emergency contract, and explain why the extension need cannot be met through a competitive process:

Was authorization to proceed verbally given?

Term of emergency procurement shall not exceed 90 days. Contract may be extended beyond 90 days if CPO determines additional time is necessary; however, prior to execution of extension, CPO must hold a public hearing and provide written determination *Actual end date and cost will be reported later.

Signatures I am requesting an extension of the requested emergency contract. I know and understand the contents of this statement and all statements herein are true and correct to the best of my knowledge.

CPO Signature

EMERGENCY PURCHASE FINAL COST AND TERM

Final Cost and Term Page of State of Illinois Chief Procurement Office Emergency Purchase Statement Version 22.1 .\CPO Letterhead\CPO Letterhead.png Final Costs and Term I am reporting the final costs and term for the referenced emergency contract to the CPO and the Auditor General.

11.0.0.20130303.1.892433.887364

Bid 21-416CMS-BOSS4-B-22340 JPMC Drugs and Pharmaceuticals was published 06/04/2021 and bids were opened 08/04/2021 (this was a rebid of B-16903 which was canceled due to inadequate specifications and B-17371, which was canceled due to non-responsive bidders). The notice of award for B-22340 was published 08/25/2021, which started the 14-day protest period. The incumbent vendor for 18-416CMS-BOSS4-P-376 JPMC Drugs and Pharmaceuticals, Cardinal Health 411, LLC, is the awarded vendor for B-22340. A protest was received by the Chief Procurement Officer (CPO) 09/02/2021, which stayed the procurement until a determination was made by the CPO if the protest should be denied or upheld. The CPO's decision to deny the protest was received late afternoon September 30, 2021 and time is needed for CMS to review.

The BEP goal for this emergency contract will stay the same as the current contract at 0%. The recently awarded solicitation (B-22340) had a BEP goal of 8%.

In the event the new contract is not executed by 09/30/2021, and in consideration of the contract duration limitation and the fact that we cannot extend the current contract, Cardinal Health 411, LLC has agreed to a 90-day emergency contract at the same terms and conditions as the current contract to ensure that there is not a lapse in service. When the new contract is executed, we intend to cancel the emergency contract.

After review of the CPO’s determination and consultation with the Business Enterprise Program, CMS determined that it was in the State's best interest to cancel the solicitation (B-22340) and rebid in order to encourage additional participation of minority, women, and persons with disability owned businesses. Accordingly, B-22340 was canceled 10/18/2021 pursuant to Section 1.2040(a) of the CPO-GS Procurement Rules, which provides that "[a]ny solicitation may be cancelled before or after opening" when it is "in the State's best interest". Section 1.2040(b)(1) further provides that the reasons for cancelling may "includ[e], but [are] not limited to" the reasons set forth in the non-exhaustive list provided in the rules.

As the prior contract, 18-416CMS-BOSS4-P-376 JPMC Drugs and Pharmaceuticals, expired on 09/30/2021 and could not be extended again pursuant to 30 ILCS 500/20-60(a), the current emergency contract was awarded in order to ensure no lapse in coverage for needed drugs and pharmaceuticals.

The rebid, 22-416CMS-BOSS4-B-25474 (B-25474), was published 10/26/2021 with a bid opening date of 12/14/2021. CMS worked with BEP prior to advertisement of B-25474 to confirm the BEP goal set for the contract is appropriate. The BEP was recalculated at 9% (vs. 8% for B-22340). At a mandatory prebid conference held on 11/09/2021, CMS staff answered questions related to BEP and stressed the importance of compliance with BEP requirements, including submitting a utilization plan demonstrating how the bidder intends to meet the BEP goal or requesting a waiver by demonstrating good faith efforts. Based on questions asked by potential bidders and the time needed to respond, the bid opening date may need to be extended. Vendor only agreed to a 60 day extension.