B-340762 DOIT IES SSJF Part I.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 27-448DOIT-APP44-B-54320

Requesting Agency/University Department of Innovation and Technology

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

Department/Bureau/Section: Integrated Eligibility Services (IES)

Need Identified Date: Sep 3, 2026 Supply/Service Need By Date: Oct 29, 2026

Project Title: IES Rule Engine Subject Expert

Vendor: NTT DATA AMERICAS INC

Provide a description of the supplies or services required:

The State requires a Program Management Office (PMO) vendor to assist the State’s to lead the transition from Corticon to an upgraded rules engine for the Illinois Integrated Eligibility System (IES). Integrated Eligibility System (IES). IES determines eligibility for programs such as Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and the Temporary Assistance for Needy Families program (TANF) in Illinois.

Value: Not to Exceed Value of Initial Term, this Change Order or Amendment: 312,000

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 Economically Feasible Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Oct 29, 2026

Estimated Contract End Date: Oct 28, 2027

Number of Potential Renewals:

Length of Each Renewal in Months:

Total Value of All Renewals:

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)

Compatibility of Equipment, Accessories, Replacement Parts or Service

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

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Bulletin Reference Number 27-448DOIT-APP44-B-54320

Requesting Agency/University Department of Innovation and Technology

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 Oct 29, 2025 Oct 28, 2026 1,399,067.52 IES Tech Refresh 4100225240 Sole Source

2 Oct 29, 2024 Oct 28, 2025 2,293,976.76 IES Tech Refresh 4100205797 Sole Source

3 Oct 29, 2023 Oct 28, 2024 2,293,978.76 IES PMO Services 4100186171 Sole Source

4 July 31, 2023 Oct 28, 2023 628,492.74 IES PMO Services 4100181817 Emergency

5 May 1, 2023 July 29, 2023 628,492.74 IES PMO Services 4100175181 Emergency

6 May 1, 2021 Apr 30, 2023 4,490,014 IES PMO Services P-Covid19.106 RFP

7 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:

The purpose of this project is to engage a subject matter expert to lead and coordinate all aspects of the transition from Corticon to an upgraded rules engine for the IL IES. Corticon is approaching end of life which is increasing operational risk, as well as the current architecture limits scalability, flexibility and future modernization efforts. The subject matter expert will be responsible for developing and executing a detailed project plan, managing cross-functional teams, monitoring risks and issues, ensuring stakeholder engagement, and delivering the project within the designated time frame as defined by the State. Successful completion of this project will result in a fully operational rules engine that supports all existing and future eligibility requirements, thereby improving operational efficiency, policy agility, and service delivery for the State of Illinois and its constituents.

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Bulletin Reference Number 27-448DOIT-APP44-B-54320

Requesting Agency/University Department of Innovation and Technology

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

PMO will lead and coordinate all aspects of the transition from Corticon to an upgraded rules engine for the IL IES.

1. Update Schedule in Project Management Tool - Daily throughout the duration of the contract

2. Status Reporting - Weekly throughout the duration of the contract

3. Risk/Issue Management - Weekly throughout the duration of the contract

4. Meeting facilitation, schedules, and minutes - Weekly throughout the duration of the contract

5. Oversee and monitor user acceptance testing - Weekly throughout the duration of the contract The PMO will also do the following:

Update Project Schedule -Refine / manage project schedule.

-Schedule updated daily.

Produce Status Reporting -Publish a weekly status report that provides a thorough and detailed status of the projects and project schedules.

-Periodic briefings (Issues/risks, schedule, progress for program) -Review milestones within the regular status reporting processes.

Perform Risk/Issue Management -Identify, update, monitor, and prioritize risks, leveraging internal and external experts via interviews, group discussions, and bottom-up risk identification from workstreams.

-Assist in risk mitigation and response and management efforts.

-Recommend risk mitigation strategies.

Perform Meeting Management -Schedule and facilitate meetings.

-Record and publish minutes.

-Record risks, issues, and action items

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?

The State of Illinois requires a Subject Matter Expert that understands the current system (Corticon) along with the system the State is moving towards due to parallel build and validation going on. On-boarding a new vendor would result in at least 6 months of delays while any potential new vendor gets up to speed with the project and the complexities and intricacies of the State of Illinois IES system, which could have a serious and detrimental impact on the state’s continued ability to retain our Authority To Connect to federal systems that are essential to the State being able to serve its citizens that rely on the benefits that IES allows us to provide.

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:

NTT DATA has the extensive knowledge and experience with:

- The Project Management Office tools used to manage the project;

- The IES stakeholders relationships.

This vendor is already proficient and effective in all these areas. They have been working on this project since May 2021 and have knowledge of the project, the issues, and the stakeholder relationships.

NTT Data has been performing the role of PMO since May 2021 and has played an essential and integral part of the overall IES project, helping the State, Deloitte and IBM / Kyndryl teams with managing the ongoing actions, tasks, and effort to keep the IES projects moving forward toward completion. Once the project is complete, the NTT DATA Staff will work with the State to assign a State Staff person to transition any remaining duties, turnover all documentation and conduct training as needed for a smooth transition.

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

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Bulletin Reference Number 27-448DOIT-APP44-B-54320

Requesting Agency/University Department of Innovation and Technology

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

On-boarding a new vendor would result in at least 6 months of delays and increased expenses. Any potential new vendor would require time to get up to speed with the project and understand the complexities and intricacies of the SOI IES system. This type of delay could have a serious and detrimental impact on the state’s continued ability to retain our Authority To Connect to federal systems that are essential to the State being able to serve its citizens that rely on the benefits that IES allows us to provide.

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?

The State does not have sufficient qualified staff available to be able to assume the duties provided by NTT Data under this contract.

Extending the NTT Data contract through a Sole Source Economically Feasible contract is the most cost-effective option available, particularly when considering the cost of spending 6 months to on-board a potential new vendor. The initial price has been honored throughout the work of this vendor. It will remain so for this contract period. Based on past contracts, the amount for this Statement of Work is considerably less than past contracts. Also, if this does not go through, then it would have to go to a RFP. This will cause a drain on time, resources and also we would still have to have NTT Data under contract for the transition.

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?

As Stated, Corticon is approaching end of life which will increase the operational risk. The current architecture is limiting our scalability and modernization efforts, which is hindering our growth. There are also limitations that prevent cloud transition and future state alignment. From an economical point of view, the state is paying on average of $2.4 - 2.6 million annually on a platform that is becoming harder to sustain and not giving the value needed. A competitive bid will increase the time delay and continue to have the state pay for a system thatis approaching end of life and out of support.

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

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Bulletin Reference Number 27-448DOIT-APP44-B-54320

Requesting Agency/University Department of Innovation and Technology

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 6, 2026

Printed Name Richard J Kobal Jr E-mail Address richard.kobal@illinois.gov

Phone Number 773-415-0953

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 charles.levy@illinois.gov

Phone Number 2176852791 Date Oct 6, 2026

Printed Name Charles Levy

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 217-685-9312 Date Oct 7, 2026

Printed Name Joshua Sergent E-mail Address joshua.sergent@illinois.gov

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Bulletin Reference Number 27-448DOIT-APP44-B-54320

Requesting Agency/University Department of Innovation and Technology

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

Project Title

Vendor

Initial Date of Procurement Bulletin Posting

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

Printed Name Date

CPO E-mail

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

1. Update Schedule in Project Management Tool - Daily throughout the duration of the contract

2. Status Reporting - Weekly throughout the duration of the contract

3. Risk/Issue Management - Weekly throughout the duration of the contract

4. Meeting facilitation, schedules, and minutes - Weekly throughout the duration of the contract

5. Oversee and monitor user acceptance testing - Weekly throughout the duration of the contract The PMO will also do the following:

Update Project Schedule -Refine / manage project schedule.

-Schedule updated daily.

Produce Status Reporting -Publish a weekly status report that provides a thorough and detailed status of the projects and project schedules.

-Periodic briefings (Issues/risks, schedule, progress for program) -Review milestones within the regular status reporting processes.

Perform Risk/Issue Management -Identify, update, monitor, and prioritize risks, leveraging internal and external experts via interviews, group discussions, and bottom-up risk identification from workstreams.

-Assist in risk mitigation and response and management efforts.

-Recommend risk mitigation strategies.

Perform Meeting Management -Schedule and facilitate meetings.

-Record and publish minutes.

-Record risks, issues, and action items

- The Project Management Office tools used to manage the project;

- The IES stakeholders relationships.

This vendor is already proficient and effective in all these areas. They have been working on this project since May 2021 and have knowledge of the project, the issues, and the stakeholder relationships.

NTT Data has been performing the role of PMO since May 2021 and has played an essential and integral part of the overall IES project, helping the State, Deloitte and IBM / Kyndryl teams with managing the ongoing actions, tasks, and effort to keep the IES projects moving forward toward completion. Once the project is complete, the NTT DATA Staff will work with the State to assign a State Staff person to transition any remaining duties, turnover all documentation and conduct training as needed for a smooth transition.