B-6631 SSJF p1 MicroPact signed.pdf

Sole Source Justification Form

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Bulletin Reference Number B - 6631

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, Division of Rehabilitation Services, Bureau of Disability Determinat

Need Identified Date: Jan 4, 2019 Supply/Service Need By Date: Jul 1, 2019

Project Title: MicroPact Global - Case Expert proprietary software

Vendor: MicroPact Global, Inc.

Provide a description of the supplies or services required:

The Department of Human Service (DHS) Bureau of Disability Determination Services (BDDS) requires a Sole Source Agreement with MicroPact Global, Inc.

for CaseExpert software support and maintenance. This software is a proprietary case management product required by the Social Security Administration for the Bureau of Disability Determination Services to process Social Security Disability claims for the citizens of the State of Illinois.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 1,557,850

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

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Bulletin Reference Number B - 6631

Requesting Agency/University Illinois Department of Human Services

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: 07/01/2019

Estimated Contract End Date: 06/30/2022

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

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

BDDS does not have licenses for this product. The annual cost is based on the number of "purified claims cleared" (claims) in the system by BDDS. The pricing structure is tiered, so that the number of claims within a certain range will pay a flat fee.

In the three year contract presented for services starting in FY20, the vendor has set the tier prices for FY20, FY21 and FY22; however, the vendor has reserved the right to increase FY21 and FY22 prices. The vendor has guaranteed that if BDDS enter into a 3 year contract beginning in FY20, as long as BDDS does not change which tier they are in, the price increases would not exceed 10% of the FY21 and FY22 prices, as listed in the 3 year contract. However, in the event BDDS moves to a different tier, BDDS will be charged the current flat rate for that tier.

For FY20, BDDS has identified BDDS number of hits as 138,914. That places BDDS in the tier of 130,001 - 170,000 hits. Because BDDS is well within that tier structure, there is no expectation they will change tiers. If they do not change tiers for FY21 and FY22, limiting the price increase to 10% or less is in the best interest of 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)

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 B - 6631

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 11/01/2018 06/30/2019 501,150 Annual maintenance plus enhancements 11/1/2018 - 6/30/2019 Sole Source

2 09/01/2018 10/31/2018 90,000 Two months maintenance Immediate Need Small Purchase

3 08/01/2018 08/31/2018 45,000 One month maintenance Small Purchase

4 07/01/2018 07/31/2018 45,000 One month maintenance Small Purchase

5 07/01/2017 06/30/2018 485,920 Annual maintenance plus enhancements 7/1/2017 - 6/30/2018 Year 3 of 3 year contract

Renewal

6 07/01/2016 06/30/2017 447,200 Annual maintenance plus enhancements 7/1/2016 - 6/30/2017 Year 2 of 3 year contract

Renewal

7 07/01/2015 06/30/2016 412,000 Annual maintenance plus enhancements 7/1/2015 - 6/30/2016 Year 1 of 3 year contract

Sole Source

8 07/01/2014 06/30/2015 178,000 Annual maintenance plus enhancements 7/1/2014 - 6/30/2015 Year 3 of 3 year contract

Renewal

9 07/01/2013 06/30/2014 169,600 Annual maintenance plus enhancements 7/1/2013 - 6/30/2014 Year 2 of 3 year contract

Renewal

10 07/01/2012 06/30/2013 100,700 Annual maintenance plus enhancements 7/1/2012 - 6/30/2013 Year 1 of 3 year contract

Sole Source

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

BDDS has had an ongoing relationship with CaseExpert software as a Social Security Administration sanctioned system for case management for over 23 years. This is one of three case management software products approved by the Social Security Administration. Over 23 years ago, SSA advised states' BDDS to select one of 3 types of case software. CaseExpert was selected as the most suitable for Illinois.

Case Expert software has been owned by the following companies which have gone through name and/or changes in ownership via acquisitions. The software itself has always been offered by a single vendor. Past vendors were Versa Case Management Systems, Inc. (IPB # 22017287 and 22014928 and 22013655) and Iron Data Solutions, Inc.

(IPB # 22025932 and 22036178).

Section VI - Business Rationale

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Bulletin Reference Number B - 6631

Requesting Agency/University Illinois Department of Human Services

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

The Bureau of Disability Determination Services is 100% Federally funded and relies completely upon the CaseExpert integrated software product to allow our interface with the Social Security Administration Federal computer system for creation of all claim developmental documents.

The CaseExpert product is a proprietary software package with licensing restrictions that prevent other vendors from working with the source code. The CaseExpert software is one of only three case management software products sanctioned by the Social Security Administration for use by the State's DDS'.

The Bureau has had an ongoing relationship with CaseExpert software for over 23 years. BDDS cannot feasibly change to any other of the approved vendors without prior approval from the Social Security Administration (SSA) and without incurring enormous conversion costs for staff retraining, re-configuring interfaces with other Bureau systems and migration from Micropact to the new system. It would be unknown how long BDDS would be "down" should it have to change one of the other 2 SSA sanctioned systems.

The Bureau relies heavily upon the CaseExpert integrated software product to allow our interface with the Social Security Administration’s federal computer system, CARS system, as well as for creation of all claim developmental documents. The Bureau processes over 130,000 claims per year.

The CaseExpert software is one of only three case management software products approved for use by the Social Security Administration. The Bureau has had an ongoing relationship with MicroPact Global Inc. as a Social Security Administration sanctioned provider of case management systems for over 23 years. The Bureau could not feasibly change to any other of the approved vendors without incurring great conversion costs, which would have to be pre-approved by Social Security Administration, as BDDS is 100% funded by the Administration. The State of Illinois would lose 100% Federal funding for the processing of the SSDI/SSI disability claims ($84 million dollar annual budget). If this procurement is not approved, the Bureau of Disability Determination Services would not be able to process the determinations of any pending or future disability claims for the citizens of Illinois. This will effectively cease the Bureau’s operations. Claimants who may have been approved benefits would not receive critically needed disability payments. Also of critical importance would be the loss of the necessary public service to the citizens of the State of Illinois.

The major action required of MicroPact Global. will be the continued integration and maintenance of the Electronic Document Management Architecture repository, which Social Security Administration has installed in the Illinois Bureau of Disability Determination Services, with the existing CaseExpert code. This integration with Social Security Administration systems housed in the Illinois Bureau of Disability Determination Services facility allows examiners and reviewers the ability to view medical evidence via their computer screen and not on paper. This is a part of a Federal Social Security Administration project that Social Security Administration has chosen the Bureau of Disability Determination Services to be a primary partner with Social Security Administration.

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

BDDS does not have licenses for this product. The annual cost is based on the number of "purified claims cleared" (claims) in the system by BDDS. The pricing structure is tiered, so that the number of claims within a certain range will pay a flat fee. The software allows examiners and reviewers the ability to view medical evidence via their computer screen and not on paper.

No training is required as DHS has over 23 years working in this system. Maintenance is included in the annual flat fee. The software name is "Case Expert".

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?

23 years ago, SSA gave the State's a choice of one of the three vendors from which to select who would be providing services to interface with their computer system. SSA cautioned the states that once selected, the cost of migrating to a different system would be extremely high. In addition, the reason for the switch would need to be justified to the SSA and approved, prior to occurring.

* MicroPact Global, Inc. is the sole source vendor for this case management system and the only vendor allowable to maintain, enhance and upgrade their source code for CaseExpert at the direction of the Social Security Administration for maintenance and upgrades and at the direction of the Bureau for enhancements specific to our business processes. For verification, see associated email from Carole Grayson, the SSA Disability Program Administrator (Illinois and Minnesota) Chicago Center for Disability, Integrity and Program Support.

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Bulletin Reference Number B - 6631

Requesting Agency/University Illinois Department of Human Services

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 software is patented or has copyrights and only available from holder of patent/copyright. They retain ownership of the application code, only they can make changes to the application code to keep it in compliance with the Social Security Administration's mandated changes due to policy updates. The two other vendors offer substantially different products, though the end result is the similar.

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?

The CaseExpert software fulfills the needs of BDDS; the software is integrated with the State's software and users are experienced and knowledgeable in the system. BDDS could not feasibly change to any other of the approved vendors without incurring great conversion costs, and the State would need to defend the reason for the switch to SSA.

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 price of the software is negotiated and funded by SSA. No State funds are used for this expenditure.

Intermittently, the SSA requires that mandated adjustments (ENHANCEMENTS) are made to CaseExpert existing processes and systems.

The cost of the Enhancements listed below are a not to exceed amount and may not be required if the SSA does not mandate additional revisions to the software. Only the owner of the proprietary software can provide the Enhancements. The price listed for services for CaseExpert as as follows:

YEAR MAINTENANCE ENHANCEMENTS TOTAL

FY20 $428,000.00 $69,292.00 $497,292.00

FY21 $449,400.00 $72,760.00 $522,160.00

FY22 $462,000.00 $76,398.00 $538,398.00

$1,557,850.00

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

Yes No

8a. If yes, please provide details regarding future obligations and/or needs:

This is a proprietary software package with licensing restrictions that prevent other vendors from working with their source code. It is required by the Federal Social Security Administration who provides 100% funding for the Bureau.

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?

To migrate the current data we have collected to another system would be cost prohibitive in both staff hours and vendor costs and be a security risk. The State would not be in compliance with SSA's policies and procedures regarding reporting. And thousands of Disabled clients would be put at risk to lose their aid.

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

The procurement is 100% federally funded through the Social Security Administration. This is a proprietary software package with licensing restrictions that prevents other vendors from working with the source code.

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Bulletin Reference Number B - 6631

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 Feb 8, 2019

Printed Name Lisa Eden E-mail Address lisa.eden@ssa.gov

Phone Number 217/782-4367

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 217-557-9298 Date

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 217-524-1704 Date Apr 25, 2019

Printed Name Kylie D. Carter E-mail Address Kylie.Carter@Illinois.gov

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Bulletin Reference Number B - 6631

Requesting Agency/University Illinois Department of Human Services

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

In the three year contract presented for services starting in FY20, the vendor has set the tier prices for FY20, FY21 and FY22; however, the vendor has reserved the right to increase FY21 and FY22 prices. The vendor has guaranteed that if BDDS enter into a 3 year contract beginning in FY20, as long as BDDS does not change which tier they are in, the price increases would not exceed 10% of the FY21 and FY22 prices, as listed in the 3 year contract. However, in the event BDDS moves to a different tier, BDDS will be charged the current flat rate for that tier.

For FY20, BDDS has identified BDDS number of hits as 138,914. That places BDDS in the tier of 130,001 - 170,000 hits. Because BDDS is well within that tier structure, there is no expectation they will change tiers. If they do not change tiers for FY21 and FY22, limiting the price increase to 10% or less is in the best interest of the State.

Case Expert software has been owned by the following companies which have gone through name and/or changes in ownership via acquisitions. The software itself has always been offered by a single vendor. Past vendors were Versa Case Management Systems, Inc. (IPB # 22017287 and 22014928 and 22013655) and Iron Data Solutions, Inc. (IPB # 22025932 and 22036178).

Q1Answer: The Bureau of Disability Determination Services is 100% Federally funded and relies completely upon the CaseExpert integrated software product to allow our interface with the Social Security Administration Federal computer system for creation of all claim developmental documents.

The CaseExpert product is a proprietary software package with licensing restrictions that prevent other vendors from working with the source code. The CaseExpert software is one of only three case management software products sanctioned by the Social Security Administration for use by the State's DDS'.

The Bureau has had an ongoing relationship with CaseExpert software for over 23 years. BDDS cannot feasibly change to any other of the approved vendors without prior approval from the Social Security Administration (SSA) and without incurring enormous conversion costs for staff retraining, re-configuring interfaces with other Bureau systems and migration from Micropact to the new system. It would be unknown how long BDDS would be "down" should it have to change one of the other 2 SSA sanctioned systems.

The Bureau relies heavily upon the CaseExpert integrated software product to allow our interface with the Social Security Administration’s federal computer system, CARS system, as well as for creation of all claim developmental documents. The Bureau processes over 130,000 claims per year.

The CaseExpert software is one of only three case management software products approved for use by the Social Security Administration. The Bureau has had an ongoing relationship with MicroPact Global Inc. as a Social Security Administration sanctioned provider of case management systems for over 23 years. The Bureau could not feasibly change to any other of the approved vendors without incurring great conversion costs, which would have to be pre-approved by Social Security Administration, as BDDS is 100% funded by the Administration. The State of Illinois would lose 100% Federal funding for the processing of the SSDI/SSI disability claims ($84 million dollar annual budget). If this procurement is not approved, the Bureau of Disability Determination Services would not be able to process the determinations of any pending or future disability claims for the citizens of Illinois. This will effectively cease the Bureau’s operations. Claimants who may have been approved benefits would not receive critically needed disability payments. Also of critical importance would be the loss of the necessary public service to the citizens of the State of Illinois.

The major action required of MicroPact Global. will be the continued integration and maintenance of the Electronic Document Management Architecture repository, which Social Security Administration has installed in the Illinois Bureau of Disability Determination Services, with the existing CaseExpert code. This integration with Social Security Administration systems housed in the Illinois Bureau of Disability Determination Services facility allows examiners and reviewers the ability to view medical evidence via their computer screen and not on paper. This is a part of a Federal Social Security Administration project that Social Security Administration has chosen the Bureau of Disability Determination Services to be a primary partner with Social Security Administration.

Q2Answer: BDDS does not have licenses for this product. The annual cost is based on the number of "purified claims cleared" (claims) in the system by BDDS. The pricing structure is tiered, so that the number of claims within a certain range will pay a flat fee. The software allows examiners and reviewers the ability to view medical evidence via their computer screen and not on paper.

No training is required as DHS has over 23 years working in this system. Maintenance is included in the annual flat fee. The software name is "Case Expert".

Q3Answer: 23 years ago, SSA gave the State's a choice of one of the three vendors from which to select who would be providing services to interface with their computer system. SSA cautioned the states that once selected, the cost of migrating to a different system would be extremely high. In addition, the reason for the switch would need to be justified to the SSA and approved, prior to occurring.

* MicroPact Global, Inc. is the sole source vendor for this case management system and the only vendor allowable to maintain, enhance and upgrade their source code for CaseExpert at the direction of the Social Security Administration for maintenance and upgrades and at the direction of the Bureau for enhancements specific to our business processes. For verification, see associated email from Carole Grayson, the SSA Disability Program Administrator (Illinois and Minnesota) Chicago Center for Disability, Integrity and Program Support.

Intermittently, the SSA requires that mandated adjustments (ENHANCEMENTS) are made to CaseExpert existing processes and systems. The cost of the Enhancements listed below are a not to exceed amount and may not be required if the SSA does not mandate additional revisions to the software. Only the owner of the proprietary software can provide the Enhancements. The price listed for services for CaseExpert as as follows:

YEAR MAINTENANCE ENHANCEMENTS TOTAL

FY20 $428,000.00 $69,292.00 $497,292.00

FY21 $449,400.00 $72,760.00 $522,160.00

FY22 $462,000.00 $76,398.00 $538,398.00

$1,557,850.00