B-27906 Fluence Automation R and M Services SSJF.1 - SPO signed 3-9-22.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

We are seeking a new Repair & Maintenance agreement that covers all required repairs, software installations, and monthly preventative maintenance (PMs) performed on both the Criterion IV Sorter and Apex Sorter, using qualified/authorized technicians. The cost of all required parts, as well as any shipping and handling charges that may be required, will strictly be the responsibility of Fluence Automation. Since both pieces of equipment are proprietary to Fluence Automation, no unauthorized entity can service this equipment, nor would they have the training and expertise to provide those services.

Q2Answer: Fluence Automation will provide the following:

1. A designated technician assigned as a "Priority Resident Technician" for the Apex and Criterion IV Sorters housed at 5020A Industrial Ave in Springfield, IL;

2. This technician will perform all Preventive Maintenance (monthly) and Remedial Maintenance (break-fix) as necessary to ensure operational readiness;

3. All parts, excluding consumables, will be replaced at no additional charge as necessary;

4. All software installations, updates, or upgrades will be covered under this agreement;

5. In the event the "Priority Resident Technician" is unavailable, Fluence Automation will ensure a replacement technician is dispatched to 5020A Industrial Ave, in order to provide coverage during the period of time in question.

Q3Answer: Both pieces of equipment are proprietary to Fluence Automation. No unauthorized entity can service this equipment, nor would they have the training and expertise to provide those services. Fluence Automation provided a sole source letter stating the following:

"This letter is to confirm that Fluence Automation, LLC is a single source manufacturer of your Criterion/Apex outbound sorter with 2 tier X-Class pockets, Tag #95015A. As the single source manufacturer we are the only offer of corresponding services with your equipment including maintenance, service and equipment upgrades."

A copy of this letter is included as Attachment A.

TThe MPU would also see an increase in paying full-rate for many of the letters mailed, resulting in a significant postage expenditure increase per letter. The pre-sort savings realized by the MPU are in excess of $2M annually - losing the ability to pre-sort the majority of these mailings would eliminate this savings unnecessarily. As stated above, Fluence Automation is the proprietary owner of the Criterion IV Sorter and Apex Sorter equipment and technology. Given the critical need for this equipment in the MPU, it is imperative this procurement be approved to preserve operational viability.

As no other company or vendor can provide the services needed, because Fluence Automation is the proprietary owner of the Apex Sorter equipment and technology, we risk not only seeing increases in mailing costs if this equipment is off-line, we also risk permanent damage to a brand new and critical piece of equipment.

Competitive bid is not a viable option, given the proprietary ownership of the Apex Sorter.