B-28321 - SSJF - DHS - Conduent - part I and part II - ehd - CPO Signed - 4.13.22.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 5

Bulletin Reference Number 22-444DHS-MIS44-B-28321

Requesting Agency/University Illinois Department of Human Services

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

Department/Bureau/Section: Illinois Department of Human Services

Need Identified Date: 12/7/2021 Supply/Service Need By Date: 4/19/2022

Project Title: LINK III SNAP EBT

Vendor: Conduent State & Local Solutions, Inc.

Provide a description of the supplies or services required:

To continue to provide the Supplemental Nutritional Assistance Payments (SNAP) (which includes a full spectrum of statewide EBT services) while the Agency transitions to a newly Awarded Vendor – DHS will need to use the present Vendor (Conduent) for up to 6 months as the service provider of the Electronic Benefit Transfer (EBT) System.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 10,340,000

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: 04/19/2022

Estimated Contract End Date: 09/30/2022

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)

Existing services providing essential EBT services to Illinoisans in order to allow transition to our new provider.

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

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Bulletin Reference Number 22-444DHS-MIS44-B-28321

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 Apr 20, 2012 04/18/2022 42,333,794.18 LINK III EBT System RFP 81AQ164000 RFP

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:

Services are needed to allow Conduent, our current EBT contractor to provide essential EBT services to Illinoisans in order to allow our new EBT contractor FIS to transition as our new EBT contractor. Due to several delays in our schedule, the transition to the new vendor will not be completed before Conduent's contract expires.

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

We currently need Conduent's full spectrum of EBT services to meet the need of continued benefits. Benefits must continue, there cannot be any gaps in providing essential EBT services to Illinoisans.

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?

Conduent is Illinois' current EBT contractor that has provided EBT services to Illinoisans for the last 10 years. They currently have all systems in place to ensure Illinoisans with continued EBT services until our new EBT contractor FIS converts all systems successfully.

Their current contract expires 4/18/22. The new vendor (FIS) began working with Conduent when their contract began 1/1/22, and will assume the service entirely once the data and services have been fully transitioned to them. This is anticipated to happen no later than 9/30/22.

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:

Conduent is Illinois' current EBT contractor that has provided EBT services to Illinoisans for the last 10 years, they currently have all systems in place to ensure Illinoisans with continued EBT services until our new EBT contractor FIS converts all systems successfully. We will not have converted our current system to the new vendor by the end of the current contract.

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

Version 7.01 Page 3 of 5

Bulletin Reference Number 22-444DHS-MIS44-B-28321

Requesting Agency/University Illinois Department of Human Services

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

Alternative contractor is not an option. The State will be changing EBT Vendors, however the conversion to the new vendor cannot be complete prior to the end of the contract.

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 was set by the current vendor in order to continue services until the new vendor can take over the service. It reflects a very small increase in the current rate, but it is only short term while services are transitioned to the new vendor.

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

Yes No

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?

If sole source is not approved obligation for the future, SNAP and TANF benefits will not be available to our most vulnerable Illinoisans.

Additionally the State will be out of compliance with the USDA and suffer financial sanction on federal funds.

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

This contract is necessary in order to continue critical services while the new vendor gets set up to take over. It is extremely important that we establish this "bridge" contract to avoid a lapse in services.

Version 7.01 Page 4 of 5

Bulletin Reference Number 22-444DHS-MIS44-B-28321

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 Apr 4, 2022

Printed Name Julie 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 217-290-4725 Date Apr 4, 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 217-622-2988 Date Apr 4, 2022

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

Version 7.01 Page 5 of 5

Bulletin Reference Number 22-444DHS-MIS44-B-28321

Requesting Agency/University Illinois Department of Human Services

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

Project Title LINK III SNAP EBT

Vendor Conduent

Initial Date of Procurement Bulletin Posting Mar 30, 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