B-37373 - Precisely Engage One and z12 Finalist SSJF - SPO Signed.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number B-37373

Requesting Agency/University DoIT

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

Department/Bureau/Section: DoIT/Infrastructure Services

Need Identified Date: 3/1/2023 Supply/Service Need By Date: Jul 1, 2023

Project Title: Precisely FY24 Engage One & z/12 Finalist

Vendor: Precisely Software Incorporated

Provide a description of the supplies or services required:

Purchase of annual maintenance and support on Finalist Module, IMS On- Line Windows Interface, CICS module software from Precisely Software Inc.

These perpetual licensed products run on the DOIT z/12 IBM mainframe. Also purchase of annual maintenance and support of the Engage One perpetual licensed products which runs on the DOIT midrange computing environment.

Value: Actual Value of Initial Term, this Change Order or Amendment: 513,268.72

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: Jul 1, 2023

Estimated Contract End Date: 6/30/2026

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

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

By doing a 3 year term the State will see an overall savings of approximately 12%.

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)

Software License/Upgrade/Maintenance

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

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Requesting Agency/University DoIT

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 Mar 1, 2023 6/30/2023 148,012 Annual maintenance and support CIT3295910 Sole Source

2 Jan 26, 2022 Jun 30, 2022 165,828 Annual Maint/Support and License Reinstatement CIT1264320 Sole Source

3 Jul 1, 2020 Jun 30, 2021 130,522 Engage One and z/12 Finalist Annual Maintenance P-18398 CIT1839800 Sole Source

4 Mar 26, 2020 Jun 30, 2020 215,592 Engage One Upgrade P-16869 CIC59414760 Sole Source

5 Jul 1, 2019 Jun 30, 2020 326,440 Annual Maintenance - P-10800 CIT0108000 Sole Source

6 Jul 1, 2018 Jun 30, 2019 313,885 Annual Maintenance PBC 105839 CIC8058390 Sole Source

7 Jul 1, 2017 Jun 30, 2018 301,812 Annual Maintenance PBC 105839 CIC8058390 Sole Source

8 Jul 1, 2016 Jun 30, 2017 290,204 Annual Maintenance PBC 97353 CIC7973530 Sole Source

9 Jul 1, 2015 Jun 30, 2016 279,043 Annual Maintenance - PBC 93169 CIC6931690 Sole Source

10 Mar 31, 2015 Jun 30, 2015 126,760 Doc1 - Re-Platform and Version Upgrade - PBC 91476 CIC5914760 Sole Source

If more than 10, or if other comments, explain:

07/01/14 - 06/30/15 $185,441 Annual Maintennace - PBC 86971, CIC5869810, SS 07/01/13 - 06/30/14 $198,267 Annual Maintenance - PBC78456, CIC4784560, SS 07/1/12-06/30/13 $190,642 Annual maintenance - PBC 68237 CIC3682370-SS 07/1/11- 06/30/12 183,312 Annual Maintenance - PBC 58886 CIC2588860 - SS 07/1/10- 06/30/11 87,918 Annual Maintenance - PBC 53177 CIC1531770 7/1/10 - 6/30/11 17774 Annual Maintenance - PBC 50366 CIC1503660 Small Purchase 4/24/10 4/24/10 472,200 Order for Licenses PBC 52912 CIC0529120 Sole Source 10/8/09 10/7/10 53100 Purchase licenses - PBC 46762 CIC0467620 sole source 7/1/09 6/30/10 51462 Annual Maintenance - PBC 43843 CIC0438430 sole source 7/1/09 6/30/10 17062 Annual Maintenance - PBC 43236 CIC0432360 Small Purchase 12/31/2008 6/30/2010 785400 Purchase PBC 37129 CIC9371290 Competitively Bid 7/1/08 6/30/09 17053 Annual Maintenance - PBC 31742 CIC9317420 small purchase 7/1/07 6/30/08 16407 Annual Maintenance - PBC 24400 CIC8244000 small purchase 12/19/06 12/19/06 $223,499 CPU Upgrade PBC 20836 CICR0073D sole source 07/01/06 6/30/07 $10,950 Annual Maintenance - PBC 16025 CICR0073A, CICR0073B, CICR0073C sole source 06/05/06 06/30/07 $329,400 Purchase PBC 12582 CIC6125820 Competitively Bid

Section VI - Business Rationale

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Bulletin Reference Number B-37373

Requesting Agency/University DoIT

1. Provide a detailed explanation of the need for the supplies or services:

Purchase of annual maintenance and support on Finalist Module, IMS On-Line Windows Interface, CICS module software from Precisely Software Inc. These perpetual licensed products run on the DOIT z/12 IBM mainframe. Also purchase of annual maintenance and support of the Engage One perpetual licensed products which runs on the DOIT midrange computing environment.

The z/12 mainframe hosts applications that support critical business processes and operations for many State agencies. Finalist Module is an address verification application which allows us to be CASS certified and get USPS discounts. The IMS- On-line Windows Interface allows access to the address files via IMS applications, and the CICS Module allows access to the address files via CICS applications. Finalist is embedded at an application code level in many applications from various agencies both in programs used by the citizens of Illinois as well as embedded in batch processing for address validation.

The Engage One product is used for the DES IBIS (Benefits Information System) and has the capability to preview the outgoing correspondence, make interactive modifications, and print quickly in both batch and on demand modes.

The annual maintenance and support being procured entitles the user to software upgrades and patches, and 9.5x5 technical support via phone and web.

Without these product, thousands of batch jobs which rely on the USPS verified mailings would be required to eliminate this code or find a new product. During the interim we would lose CASS certification which allows the state to get discounts on USPS mailed items.

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

Requesting 3 years maintenance and support on Finalist Module, IMS On-Line Windows Interface, CICS module software from Precisely Software Inc. These perpetual licensed products run on the DOIT z/12 IBM mainframe. Also purchase of annual maintenance and support of the Engage One perpetual licensed products which runs on the DOIT midrange computing environment.

Finalist products running on the z/12 mainframe and the Engage One products running on midrange computing must continue to integrate to the existing legacy online IMS and CICS environments as well as be stable in batch mode. Without these products, thousands of batch jobs which rely on the USPS verified mailings would be required to retool customer agency business applications processes. During the interim the state would lose CASS certification which allows the state to get discounts on USPS mailed items which would have a direct impact on customers agency business and impact to mailings required to be sent to recipients of State of Illinois services.

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?

Finalist is an address data cleaning software that is proprietary to Precisely. As mentioned previously these products are embedded in business applications throughout the DOIT customer agencies. DES is dependent on Finalist and Engage One as part of their major business system applications IBIS(Unemployment Benefits System) and GFS (Benefit Funding Systems). DHS/HFS are dependent on Finalist as part of their major business system application IES (Integrated Eligibility System) and HFS All Kids. Software must integrate with the existing legacy IMS and CICS Mainframe database environments and applications. It must also be able to be utilized in batch mode for batch processing and software is CASS certified with is required for the State of Illinois to get discounts on USPS mailings. This system is the only one optimized for our use due to embedded code and logic in our mainframe applications for the verifications against addresses.

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:

At this time, DoIT must continue to procure the necessary licensing, maintenance and support to ensure that DES, DHS, HFS and IES applications and business that service the citizens of Illinois is not put at risk.

Precisely Software Inc. is the only vendor that can supply the required software licensing and maintenance because the software is patented or copyrighted and only available from holder of patent/copyright. The Finalist product has been used for 15+ years to develop mission critical applications for DES and 16+ years for CASS certifications for DHS and HFS (which now includes IES). Migration of applications away from the Finalist software would take an extensive amount of time, resources and money for all agencies to be converted.

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Requesting Agency/University DoIT

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

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

At this time it is not feasible to migrate and convert agencies from these products. DOIT and customer agency Mainframe resources are at an all time low at the state of Illinois due to retirement and lack of qualified resources to backfill positions. The process of replacing these customer agency applications is not accomplished quickly or easily and requires significant funding, staff resources and detailed project planning. It involves changes to customers agency business processes and methodologies; a complete redesign of the customer agency business applications; significant investments in software, IT hardware and infrastructure, training; full-time commitment of DOIT and customer agency staff resources to complete; and continued term licensing, maintenance and support of the existing system during the conversion.

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 product is sole source and there are not many comparable options to use to rationalize the cost of this product. The 3 year term agreement being offered by the vendor is approximately 10 percent increase from FY23. According to the vendor the annual increase can be anywhere between 8-17%. DOIT believes that this increase is reasonable giving the higher cost of doing business, providing support and maintenance with supply and workforce issues post Covid 19.

The vendor has offered a $513,268 total for FY24, FY25 and FY26 as a single contract. This represents a cost savings/avoidance of approximately $62,000 over the 3 year period compared to the potential $575,000 if done as single year procurements going forward.

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 this sole source is not approved we will lapse on the updates and support for the finalist product. As time passes without the updates, we will fall further and further behind with validation of USPS address. As we become out of date, we risk sending federal and state mandated letters and mailings for various services for agencies to unverified addresses and risk putting private information and money for services into the wrong hands.

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

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Requesting Agency/University DoIT

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 Jun 9, 2023

Printed Name Rebecca Montgomery E-mail Address rebecca.montgomery@illinois.gov

Phone Number 217-9715893

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 Van.Austin@Illinois.Gov

Phone Number 217-524-2733 Date Jun 9, 2023

Printed Name Van Austin

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 217-206-0722 Date 6/13/2023

Printed Name Kassandra Wilkin E-mail Address kassandra.wilkin@illinois.gov

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Requesting Agency/University DoIT

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

07/01/13 - 06/30/14 $198,267 Annual Maintenance - PBC78456, CIC4784560, SS 07/1/12-06/30/13 $190,642 Annual maintenance - PBC 68237 CIC3682370-SS 07/1/11- 06/30/12 183,312 Annual Maintenance - PBC 58886 CIC2588860 - SS 07/1/10- 06/30/11 87,918 Annual Maintenance - PBC 53177 CIC1531770 7/1/10 - 6/30/11 17774 Annual Maintenance - PBC 50366 CIC1503660 Small Purchase 4/24/10 4/24/10 472,200 Order for Licenses PBC 52912 CIC0529120 Sole Source 10/8/09 10/7/10 53100 Purchase licenses - PBC 46762 CIC0467620 sole source 7/1/09 6/30/10 51462 Annual Maintenance - PBC 43843 CIC0438430 sole source 7/1/09 6/30/10 17062 Annual Maintenance - PBC 43236 CIC0432360 Small Purchase 12/31/2008 6/30/2010 785400 Purchase PBC 37129 CIC9371290 Competitively Bid 7/1/08 6/30/09 17053 Annual Maintenance - PBC 31742 CIC9317420 small purchase 7/1/07 6/30/08 16407 Annual Maintenance - PBC 24400 CIC8244000 small purchase 12/19/06 12/19/06 $223,499 CPU Upgrade PBC 20836 CICR0073D sole source 07/01/06 6/30/07 $10,950 Annual Maintenance - PBC 16025 CICR0073A, CICR0073B, CICR0073C sole source 06/05/06 06/30/07 $329,400 Purchase PBC 12582 CIC6125820 Competitively Bid Q1Answer: Purchase of annual maintenance and support on Finalist Module, IMS On-Line Windows Interface, CICS module software from Precisely Software Inc. These perpetual licensed products run on the DOIT z/12 IBM mainframe. Also purchase of annual maintenance and support of the Engage One perpetual licensed products which runs on the DOIT midrange computing environment.

The z/12 mainframe hosts applications that support critical business processes and operations for many State agencies. Finalist Module is an address verification application which allows us to be CASS certified and get USPS discounts. The IMS- On-line Windows Interface allows access to the address files via IMS applications, and the CICS Module allows access to the address files via CICS applications. Finalist is embedded at an application code level in many applications from various agencies both in programs used by the citizens of Illinois as well as embedded in batch processing for address validation.

The Engage One product is used for the DES IBIS (Benefits Information System) and has the capability to preview the outgoing correspondence, make interactive modifications, and print quickly in both batch and on demand modes.

The annual maintenance and support being procured entitles the user to software upgrades and patches, and 9.5x5 technical support via phone and web.

Without these product, thousands of batch jobs which rely on the USPS verified mailings would be required to eliminate this code or find a new product. During the interim we would lose CASS certification which allows the state to get discounts on USPS mailed items.

Q2Answer: Requesting 3 years maintenance and support on Finalist Module, IMS On-Line Windows Interface, CICS module software from Precisely Software Inc. These perpetual licensed products run on the DOIT z/12 IBM mainframe. Also purchase of annual maintenance and support of the Engage One perpetual licensed products which runs on the DOIT midrange computing environment.

Finalist products running on the z/12 mainframe and the Engage One products running on midrange computing must continue to integrate to the existing legacy online IMS and CICS environments as well as be stable in batch mode. Without these products, thousands of batch jobs which rely on the USPS verified mailings would be required to retool customer agency business applications processes. During the interim the state would lose CASS certification which allows the state to get discounts on USPS mailed items which would have a direct impact on customers agency business and impact to mailings required to be sent to recipients of State of Illinois services.

Precisely Software Inc. is the only vendor that can supply the required software licensing and maintenance because the software is patented or copyrighted and only available from holder of patent/copyright. The Finalist product has been used for 15+ years to develop mission critical applications for DES and 16+ years for CASS certifications for DHS and HFS (which now includes IES). Migration of applications away from the Finalist software would take an extensive amount of time, resources and money for all agencies to be converted.

The vendor has offered a $513,268 total for FY24, FY25 and FY26 as a single contract. This represents a cost savings/avoidance of approximately $62,000 over the 3 year period compared to the potential $575,000 if done as single year procurements going forward.