B-52108 JPMC Chicago Presort SSJF Pt I II signed.pdf

Sole Source Justification Form

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Bulletin Reference Number 26-416CMS-BOSS4-B-52108

Requesting Agency/University Central Management Services

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

Department/Bureau/Section: Central Management Services

Need Identified Date: 02/24/2026 Supply/Service Need By Date: 08/24/2026

Project Title: JPMC SS Chicago Metro Presort Mail

Vendor: Pitney Bowes Presort Services, LLC

Provide a description of the supplies or services required:

Presort Mail Services, including necessary equipment, materials and personnel for the purpose of presorting, bar coding, bundling and delivery of the State's first class and flat metered mail according to the United State Postal Service (USPS) requirements.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 1,393,057.45

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: 08/25/2026

Estimated Contract End Date: 08/24/2029

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:

The business need is currently being met under the contract #21-416CMS-BOSS4-P-28708. The 4-year contract was due to expire on June 30, 2024, but has been extended multiple times through August 25 2026 to provide a continuity of services. The contract was previously competitive by CMS Bureau of Strategic Sourcing (BoSS) bid under an IFB under B-40147, B-44787, B-46802, B-42975 and B-46751 without any successful bids. This multi-year sole source contract will ensure that presort mailing services are secured and that the State maintains continuity of services, as no other vendor is able to meet our needs in providing these services. Additionally, this new contract is revenue-generating and, once in place, will provide maximum economic benefit to the State.

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)

Critical Changes to the Existing Contract are Necessary and Best Accomplished by the Contract Holder

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Bulletin Reference Number 26-416CMS-BOSS4-B-52108

Requesting Agency/University Central Management Services

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

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 11/04/2021 08/24/2026 26,497.15 JPMC Chicago and Region 1 Presort Mail P-28708 IFB

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 State averages approximately 3,700,000 pieces of mail per year in the Chicago Metro area which presents a significant need from state agencies that will use this contract for presort mailing services. This is a revenue-generating contract in which the vendor collects mail, bundles, and presorts it for the USPS. The USPS then pays the vendor a rebate based on the presort, and the vendor in turn pays the State a share of that rebate.

These services are essential to ensuring that State operations function efficiently and without interruption. Timely and reliable mail processing is a critical component of agency workflows, and any disruption would negatively impact the State’s ability to deliver services, meet statutory deadlines, and communicate effectively with constituents. Maintaining these services is therefore vital to supporting the State’s operational continuity and overall effectiveness.

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Bulletin Reference Number 26-416CMS-BOSS4-B-52108

Requesting Agency/University Central Management Services

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

This JPMC will be available to all by Governmental Units and Qualified not-for-profit agencies as defined in Section 5 State Supplemental Provisions of the Contract.

GOAL: To establish a Joint Purchase Master Contract (JPMC) for presort mail services which includes necessary equipment, materials and personnel for the purpose of presorting, barcoding, bundling and delivery of the State's first class and flat metered mail according to the United State Postal Service (USPS) requirements.

SUPPLIES AND/OR SERVICES REQUIRED: The vendor will guarantee delivery of all first-class letter-sized mail to the USPS and delivery of standard class flat-size mailed within 24 hours. The Vendor shall prepare all mailings according to the regulations of the USPS

The Vendor will pick up the State’s First Class letter-sized mail metered at the then current Mixed Automated Area Distribution Center (Mixed AADC) rate and the State’s First class flat mail metered at the then current 5 digit rate between 5:00 p.m. and 6:00 p.m. Monday through Friday, excluding official State and Federal holidays as specified by the USPS.

The Vendor shall demonstrate the ability to meet service requirements to ensure processing of the State’s mail and delivery of all mail to the USPS by midnight on the same day as the mail is picked up from State Agencies, or in time to allow use of that day’s postmark. If delivery is not made to the USPS in Chicago, the Vendor must demonstrate and certify that delivery to the mail recipient takes no longer than if it had been processed through the Chicago Post Office.

The Vendor shall meet or exceed all requirements necessary to successfully process and barcode the State’s mail. Specifically, all bar-coding equipment must be CASS/MASS USPS certified. The Vendor shall also meet USPS requirements certifying compliance and licensing for the Move Update Requirement utilizing the NCOALink service. State Agencies may determine which NCOALink meets their needs as appropriate.

The Vendor shall make its online tracking platform available so each State Agency can view and download the total number of mail pieces processed by accessing the Vendor’s online account and tracking system. If the Vendor’s online platform is inaccessible or a State Agency is unable to view or download this information, the Vendor shall provide a daily accounting slip showing the total number of mail pieces processed for that Agency.

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?

CMS has solicited competitive bids multiple times with no responsive bidders. Mailing companies must have certifications, permits, and adhere to strict compliance standards with the USPS to do presorting. Presort mail is necessary for agencies as it significantly reduces postage costs, streamlines logistical operations, and ensures faster, more reliable mail delivery. This multiple year sole source procurement will satisfy the requirement for presort mail and take the place of Contract P-28708 due to expire on August 24 2026.

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:

The vendor is the only provider in this business line that aggregates mail from multiple clients, allowing them to achieve the high mail density required to qualify for maximum USPS presort discounts. This unique capability enables the vendor to offer the State a substantial rebate that no other vendor can match. In addition, the vendor has all necessary equipment and USPS certifications to pick up the State’s First-Class letter-sized mail metered at the Mixed Automated Area Distribution Center (MAADC) rate, as well as First-Class flat-sized mail metered at the current 5-digit rate, from multiple Chicago Metro locations. They then presort, barcode, bundle, and prepare the mail for delivery, all while maintaining full compliance with USPS regulations. This combination of specialized qualifications, operational scale, and regulatory adherence ensures the State receives unmatched service reliability and the greatest possible economic benefit.

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

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Bulletin Reference Number 26-416CMS-BOSS4-B-52108

Requesting Agency/University Central Management Services

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

BOSS has considered cooperative agreements for mailing services, but unfortunately none have the presorting services/compenent needed.

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:

The following vendors under the NASPO ValuePoint Mail-Room Equipment, Supplies and Maintenance portfolio were reviewed: Pitney Bowes, Quadient, Bell & Howell. These contracts are accessible via Participating Addenda for State use. While the NASPO contracts provide competitively sourced mail room equipment and related maintenance services, they do not meet the State’s operational requirement for USPS presorting and bundling services, nor do they provide a rebate or revenue-sharing model tied to postal workshare savings. As a result, these contracts cannot be utilized for the intended procurement objective, which is focused on mail optimization and cost recovery, not equipment acquisition.

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).

BOSS procured and reviewed prior procurements conducted through the Invitation for Bid (IFB) method to determine historical vendor participation and service availability. In addition, market research was performed through vendor outreach and review of publicly available information to identify providers offering mail presorting and bundling services. The evaluation focused on vendors that are certified by the United States Postal Service and capable of servicing the Chicago area. Based on this review, it was determined that there is a limited number of qualified providers in the Chicago market with the required USPS certification and operational capabilities.

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 cost of the presort services for first class letter is reflected per piece and is comparable with other mailing facilities in the Chicago land area. The vendor will be providing a rebate per piece of mail for First-Class letter sized mail and will be providing presort services for First Class letter sized mail at no additional charge.

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?

This procurement is time sensitive and critical to the mission of agencies to have access to presorting mail services for government business. Previous competitive bids have not yielded any responsive bids and the market in the Chicago area for presorting is limited as the services are specific to USPS qualifications.

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

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Bulletin Reference Number 26-416CMS-BOSS4-B-52108

Requesting Agency/University Central Management 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 03/24/2026

Printed Name Magdalena Toussaint E-mail Address magdalena.k.toussaint@illinois.gov

Phone Number 312-814-8898

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 Ron.Wilson@Illinois.gov

Phone Number 217-557-2412 Date Apr 29, 2026

Printed Name Ron Wilson

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 217-299-4919 Date May 11, 2026

Printed Name John H.H. Demien, CPPB E-mail Address john.demien@illinois.gov

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Bulletin Reference Number 26-416CMS-BOSS4-B-52108

Requesting Agency/University Central Management Services

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

Project Title JPMC SS Chicago Metro Presort Mail

Vendor Pitney Bowes Presort Services, LLC

Initial Date of Procurement Bulletin Posting May 11, 2026

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 217-622-1857

Printed Name Ellen H. Daley Date May 27, 2026

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

These services are essential to ensuring that State operations function efficiently and without interruption. Timely and reliable mail processing is a critical component of agency workflows, and any disruption would negatively impact the State’s ability to deliver services, meet statutory deadlines, and communicate effectively with constituents. Maintaining these services is therefore vital to supporting the State’s operational continuity and overall effectiveness.

Q2Answer: This JPMC will be available to all by Governmental Units and Qualified not-for-profit agencies as defined in Section 5 State Supplemental Provisions of the Contract.

GOAL: To establish a Joint Purchase Master Contract (JPMC) for presort mail services which includes necessary equipment, materials and personnel for the purpose of presorting, barcoding, bundling and delivery of the State's first class and flat metered mail according to the United State Postal Service (USPS) requirements.

SUPPLIES AND/OR SERVICES REQUIRED: The vendor will guarantee delivery of all first-class letter-sized mail to the USPS and delivery of standard class flat-size mailed within 24 hours. The Vendor shall prepare all mailings according to the regulations of the USPS

The Vendor will pick up the State’s First Class letter-sized mail metered at the then current Mixed Automated Area Distribution Center (Mixed AADC) rate and the State’s First class flat mail metered at the then current 5 digit rate between 5:00 p.m. and 6:00 p.m. Monday through Friday, excluding official State and Federal holidays as specified by the USPS.

The Vendor shall demonstrate the ability to meet service requirements to ensure processing of the State’s mail and delivery of all mail to the USPS by midnight on the same day as the mail is picked up from State Agencies, or in time to allow use of that day’s postmark. If delivery is not made to the USPS in Chicago, the Vendor must demonstrate and certify that delivery to the mail recipient takes no longer than if it had been processed through the Chicago Post Office.

The Vendor shall meet or exceed all requirements necessary to successfully process and barcode the State’s mail. Specifically, all bar-coding equipment must be CASS/MASS USPS certified. The Vendor shall also meet USPS requirements certifying compliance and licensing for the Move Update Requirement utilizing the NCOALink service. State Agencies may determine which NCOALink meets their needs as appropriate.

The Vendor shall make its online tracking platform available so each State Agency can view and download the total number of mail pieces processed by accessing the Vendor’s online account and tracking system. If the Vendor’s online platform is inaccessible or a State Agency is unable to view or download this information, the Vendor shall provide a daily accounting slip showing the total number of mail pieces processed for that Agency.