Sole Source Justification Form

Version 7.01 Page 1 of 7

Bulletin Reference Number 26-420DCEO-COMMA-B-50601

Requesting Agency/University Department of Commerce and Economic Opportunity

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

Department/Bureau/Section: Office of Community Assistance

Need Identified Date: Sep 10, 2025 Supply/Service Need By Date: Jan 30, 2026

Project Title: FY26-27 Weatherization System Support and Enhancements

Vendor: NGI Capital Inc. dba Apex IT

Provide a description of the supplies or services required: Consulting services for IT support and enhancements to the IL Home Weatherization Assistance Program's IT system

Value: Estimated Value of Initial Term, this Change Order or Amendment: 1,990,125

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: Jan 30, 2026

Estimated Contract End Date: Jan 29, 2027

Number of Potential Renewals: 0

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)

Software License/Upgrade/Maintenance

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

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Bulletin Reference Number 26-420DCEO-COMMA-B-50601

Requesting Agency/University Department of Commerce and Economic Opportunity

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 Jan 30, 2025 Jan 29, 2026 3,688,400 Weatherization Platform Support, Enhancements, and license P-76576 Sole Source

2 Oct 30, 2024 Jan 31, 2025 825,000 Emergency Extension B-45175 P-70495 Emergency Extension

3 Aug 1, 2024 Oct 29, 2025 825,230.92 Emergency Purchase B-44144 P-70495 Emergency

4 Jul 31, 2023 Aug 31, 2024 1,882,867.42 Release: Phase 3 Weatherization Shortage P-17514:64 IFB

5 Jan 19, 2023 Mar 16, 2023 740,808.08 Release: Phase 3 Weatherization Shortage P-17514:58 IFB

6 Mar 17, 2023 Dec 31, 2024 3,358,295.38 Release: Mythics Phase 3 Weatherization P-17514:44 IFB

7 Sep 12, 2022 Jun 30, 2023 619,966 Release: Weatherization Service Addition P-17514:37 IFB

8 Jun 16, 2021 Jul 31, 2023 4,700,000 Release : Mythics Weatherization Creation P-17514:3 IFB

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

Section VI - Business Rationale

Version 7.01 Page 3 of 7

Bulletin Reference Number 26-420DCEO-COMMA-B-50601

Requesting Agency/University Department of Commerce and Economic Opportunity

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

1. The Illinois Home Weatherization Assistance Program (IHWAP), administered by the Department of Commerce & Economic Opportunity (DCEO), has been working with Apex IT (as a subcontractor for Mythics, Inc.) over the past five years to design, develop, and implement a comprehensive web-based, mission-critical system to manage all aspects of program delivery.

In 2022, Apex IT built IWx, a groundbreaking system that administers DCEO’s IHWAP. They developed custom Application Programming Interfaces (APIs), interfaces, and logic to ensure:

• Contractors can submit invoices and update work orders directly from the field.

• Inspectors and QA Monitors can finalize audits and sync results offline.

• Agencies can manage budgets and monitor compliance in real time.

• A custom-built workflow engine automates task routing and enforces multi-level compliance with evolving federal and state regulations.

• Applicants access a secure on-line portal to submit documentation, track application status, and communicate with agencies— streamlining intake and reducing administrative overhead.

These workflows are tightly integrated with Oracle’s backend systems and require ApexIT’s ongoing support to maintain performance, security, and compliance.

In 2022, Apex built IWx, a new, revolutionary IT system to administer the State’s weatherization program. The functionalities of IWx are extremely complex which is a reflection of the technical and intricate nature of the weatherization program. IWx is built on the Oracle platform and it pushes the platform to its limits.

A staged rollout of IWx began July 1, 2024. Since then, various modules have gone live; however, the system continues to experience bugs that require regular troubleshooting. Despite training alongside Apex IT staff, the Department of Innovation & Technology (DoIT) does not yet have the developer capacity needed to fully support DCEO’s day-to-day IHWAP operations. Apex IT remains the most knowledgeable and best equipped to address these issues in a timely and effective manner. Given the complexity of IWx, Apex IT resources are critical to the ongoing administration of IHWAP. DCEO continues to rely on Apex both to provide technical support and to train DoIT staff.

Version 7.01 Page 4 of 7

Bulletin Reference Number 26-420DCEO-COMMA-B-50601

Requesting Agency/University Department of Commerce and Economic Opportunity

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

• Apex will provide twelve (12) months of dedicated services to enhance and provide production support services to the Weatherization platform.

IWx integrates the entire program workflow coordinated across applicants, agencies, contractors, and inspectors, including online client pre-applications, waiting lists, full applications, energy audits, scopes of work, grant budget tracking, contractor pricing catalogs, work order management, contractor invoicing, and final inspections. The system’s functionalities are both unprecedented and highly complex, reflecting the technical, intricate and compliance-driven nature of IHWAP. Unlike an “off-the-shelf” solution, IWx is a purpose-built solution leveraging multiple Oracle platforms (OIA, OEC, Eloqua, VBCS, IDCS, OIC, and others) in ways that exceed standard configurations and has been extensively customized to meet IHWAP’s unique operational and regulatory requirements.

To meet federal and state reporting requirements, the system includes a dynamic grant allocation engine that:

• Assigns funding sources to specific measures based on eligibility and availability.

• Tracks expenditures at granular levels across projects and agencies

• Generates audit-ready reports for oversight bodies and funding authorities.

This functionality is crucial for ensuring funding compliance and maintaining program transparency. It relies on proprietary logic and integrations developed by ApexIT.

IWx enforces hundreds of compliance rules including:

• Automated Savings-to-Investment Ratio (SIR) calculations

• Dynamic scope-of-work validation against federal and state guidelines

• Real-time budget enforcement tied to grant allocations.

This logic is thoroughly ingrained in multiple modules and interfaces. Copying or altering it would need extensive reverse engineering and detailed understanding of both Oracle’s architecture and IHWAP’s regulatory framework.

A key component of IWx is its progressive web application (PWA) with offline capabilities for field operations - in ways that exceed standard configurations - enabling field staff and contractors to conduct energy audits, capture data and photos, and complete work orders without internet connectivity and secure protocols for later syncing field data and photos automatically once reconnected. This level of offline functionality is unprecedented in Oracle products and requires continuous, highly specialized development and support from Apex IT.

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?

Due to the IWx system’s complexity and extensive customization, Apex IT - the original developer - is the only vendor with the institutional knowledge of the system’s architecture, custom rules, and integration points. It cannot be supported or replicated by generic software vendors. Apex is the only vendor with the technical expertise and proprietary codebase to maintain and enhance the system in its current state. Apex IT’s unique knowledge of the customized Oracle environment, the unprecedented progressive web application with offline capabilities, and the integrated grant and contractor workflows make the firm indispensable to this project until a qualified long-term replacement is fully prepared.

Given the complexity of IWx, Apex IT resources are critical to the ongoing administration of IHWAP. DCEO continues to rely on Apex both to provide technical support and to train DoIT staff. One additional year of support is needed to ensure DoIT can independently manage IWx going forward. Without Apex’s continued involvement, IWx would quickly become non-functional—disrupting statewide program operations, jeopardizing services to communities, and resulting in significant financial losses.

Apex is the sole economically feasible vendor able to enhance and provide production support for the Weatherization system they created. The system went live on 7-1-24 and integration is currently ongoing. The use of any other vendor would require a 6-8 month learning curve. It is in the best interest of the State to utilize Apex. In total the 2024-2025 spending for Illinois’ Weatherization Program is over $100 million dollars. A break in the contract with Apex will cause weatherization work to stop statewide. Depending on the length of time we are without support from resources with knowledge of the system there will be funding that will be returned to the federal government. Any work disruption will mean houses and apartments that are in line to have energy efficiency repairs done will not be assisted.

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Bulletin Reference Number 26-420DCEO-COMMA-B-50601

Requesting Agency/University Department of Commerce and Economic Opportunity

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 work on the weatherization System started under the State Master Contract with Mythics Inc. Apex IT was the subcontractor under that Master Contract that created the existing Weatherization system and therefore, uniquely qualified to provide the services.

IWx is a purpose-built solution created by Apex. They developed custom APIs, interfaces, and logic leveraging multiple Oracle platforms (OIA, OEC, Eloqua, VBCS, IDCS, OIC, and others) in ways that exceed standard configurations and has been extensively customized to meet IHWAP’s unique operational and regulatory requirements.

Also see Response to #2 above for detailed qualifications.

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?

Various IWx modules/functionalities have gone live over the last several months, however, as is expected with a roll-out of IT projects of this size, there have been a series of bugs that require prompt troubleshooting on a daily basis. The Apex employees who have been involved for the majority of this project and are most familiar with the system have been addressing these bugs and without their continued support the system would become nonfunctional within a few days. In addition to the launch support IWx needs to be expanded with additional functionality to administer new funding the weatherization program has recently received. Illinois has chosen to administer the US Department of Energy's (DOE) Home Efficiency Rebates (HOMES) Home Electrification and Appliance Rebate Program (HEAR) through the DCEO Weatherization Program. DoIT lacks the state-side developer resources required to support DCEO's day-to-day operational requirements. DCEO has been more reliant of APEX to fill in and provide support that DoIT is unable to provide.

DCEO OCA has already spent over $16 million on this IT system and project. Apex has the institutional knowledge and technical expertise to continue providing support, maintenance, and enhancements without investing funding on training for a new vendor to learn the platform and functionality.

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?

See attached SOW. Procurement approved by DoIT and cost for new annual agreement is $1,990,125.00, a 46% decrease from last year's annual cost ($3,688,400.00)

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?

The stakes are substantial. Without a sole source contract with Apex IT, IWx would likely become non-functional within days, immediately halting weatherization work across Illinois. Any disruption in system maintenance or enhancements would prevent vulnerable households from receiving vital energy-efficiency improvements. The consequences would devastate Illinois communities, jeopardize the State’s compliance with federal program requirements, and risk the loss of federal funds if unspent dollars were returned. For these reasons, it is in the State’s best interest to continue utilizing Apex IT as the sole economically feasible vendor to provide production support and enhancements for IWx until DoIT is fully equipped to assume long-term system ownership.

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

DCEO and DoIT have recognized the need to build internal capacity and have attempted to both to hire internal resources with Oracle experience and also attempted to obtain Oracle resources via the DoIT TOPS contract. These efforts have been unsuccessful. DCEO and DoIT remain committed to building internal capacity and are now focused on hiring employees with less overall experience and training them on the specific Oracle platforms used by IWx. ApexIT’s continued involvement is critical in the near term both to ensure uninterrupted operations and be available for knowledge transfer to our current employees and the employees we are in the process of hiring. Approval of a sole-source procurement ensures operational stability while supporting a long-term strategy to reduce vendor dependency.

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Bulletin Reference Number 26-420DCEO-COMMA-B-50601

Requesting Agency/University Department of Commerce and Economic Opportunity

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 Dec 30, 2025

Printed Name Rick Rogers E-mail Address rick.e.rogers@illinois.gov

Phone Number 217-524-8148

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 rick.e.rogers@illinois.gov

Phone Number 217-524-8148 Date Dec 30, 2025

Printed Name Rick Rogers

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 217-299-5856 Date Dec 31, 2025

Printed Name Jennifer Shourd E-mail Address jennifer.shourd@illinois.gov

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Bulletin Reference Number 26-420DCEO-COMMA-B-50601

Requesting Agency/University Department of Commerce and Economic Opportunity

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 2022, Apex IT built IWx, a groundbreaking system that administers DCEO’s IHWAP. They developed custom Application Programming Interfaces (APIs), interfaces, and logic to ensure:

• Contractors can submit invoices and update work orders directly from the field.

• Inspectors and QA Monitors can finalize audits and sync results offline.

• Agencies can manage budgets and monitor compliance in real time.

• A custom-built workflow engine automates task routing and enforces multi-level compliance with evolving federal and state regulations.

• Applicants access a secure on-line portal to submit documentation, track application status, and communicate with agencies—streamlining intake and reducing administrative overhead.

These workflows are tightly integrated with Oracle’s backend systems and require ApexIT’s ongoing support to maintain performance, security, and compliance.

In 2022, Apex built IWx, a new, revolutionary IT system to administer the State’s weatherization program. The functionalities of IWx are extremely complex which is a reflection of the technical and intricate nature of the weatherization program. IWx is built on the Oracle platform and it pushes the platform to its limits.

A staged rollout of IWx began July 1, 2024. Since then, various modules have gone live; however, the system continues to experience bugs that require regular troubleshooting. Despite training alongside Apex IT staff, the Department of Innovation & Technology (DoIT) does not yet have the developer capacity needed to fully support DCEO’s day-to-day IHWAP operations. Apex IT remains the most knowledgeable and best equipped to address these issues in a timely and effective manner. Given the complexity of IWx, Apex IT resources are critical to the ongoing administration of IHWAP. DCEO continues to rely on Apex both to provide technical support and to train DoIT staff.

Q2Answer: • Apex will provide twelve (12) months of dedicated services to enhance and provide production support services to the Weatherization platform.

IWx integrates the entire program workflow coordinated across applicants, agencies, contractors, and inspectors, including online client pre-applications, waiting lists, full applications, energy audits, scopes of work, grant budget tracking, contractor pricing catalogs, work order management, contractor invoicing, and final inspections. The system’s functionalities are both unprecedented and highly complex, reflecting the technical, intricate and compliance-driven nature of IHWAP. Unlike an “off-the-shelf” solution, IWx is a purpose-built solution leveraging multiple Oracle platforms (OIA, OEC, Eloqua, VBCS, IDCS, OIC, and others) in ways that exceed standard configurations and has been extensively customized to meet IHWAP’s unique operational and regulatory requirements.

To meet federal and state reporting requirements, the system includes a dynamic grant allocation engine that:

• Assigns funding sources to specific measures based on eligibility and availability.

• Tracks expenditures at granular levels across projects and agencies

• Generates audit-ready reports for oversight bodies and funding authorities.

This functionality is crucial for ensuring funding compliance and maintaining program transparency. It relies on proprietary logic and integrations developed by ApexIT.

IWx enforces hundreds of compliance rules including:

• Automated Savings-to-Investment Ratio (SIR) calculations

• Dynamic scope-of-work validation against federal and state guidelines

• Real-time budget enforcement tied to grant allocations.

This logic is thoroughly ingrained in multiple modules and interfaces. Copying or altering it would need extensive reverse engineering and detailed understanding of both Oracle’s architecture and IHWAP’s regulatory framework.

A key component of IWx is its progressive web application (PWA) with offline capabilities for field operations - in ways that exceed standard configurations - enabling field staff and contractors to conduct energy audits, capture data and photos, and complete work orders without internet connectivity and secure protocols for later syncing field data and photos automatically once reconnected. This level of offline functionality is unprecedented in Oracle products and requires continuous, highly specialized development and support from Apex IT.

Q3Answer: Due to the IWx system’s complexity and extensive customization, Apex IT - the original developer - is the only vendor with the institutional knowledge of the system’s architecture, custom rules, and integration points. It cannot be supported or replicated by generic software vendors. Apex is the only vendor with the technical expertise and proprietary codebase to maintain and enhance the system in its current state. Apex IT’s unique knowledge of the customized Oracle environment, the unprecedented progressive web application with offline capabilities, and the integrated grant and contractor workflows make the firm indispensable to this project until a qualified long-term replacement is fully prepared.

Given the complexity of IWx, Apex IT resources are critical to the ongoing administration of IHWAP. DCEO continues to rely on Apex both to provide technical support and to train DoIT staff. One additional year of support is needed to ensure DoIT can independently manage IWx going forward. Without Apex’s continued involvement, IWx would quickly become non-functional—disrupting statewide program operations, jeopardizing services to communities, and resulting in significant financial losses.

Apex is the sole economically feasible vendor able to enhance and provide production support for the Weatherization system they created. The system went live on 7-1-24 and integration is currently ongoing. The use of any other vendor would require a 6-8 month learning curve. It is in the best interest of the State to utilize Apex. In total the 2024-2025 spending for Illinois’ Weatherization Program is over $100 million dollars. A break in the contract with Apex will cause weatherization work to stop statewide. Depending on the length of time we are without support from resources with knowledge of the system there will be funding that will be returned to the federal government. Any work disruption will mean houses and apartments that are in line to have energy efficiency repairs done will not be assisted.

Q4Answer: The work on the weatherization System started under the State Master Contract with Mythics Inc. Apex IT was the subcontractor under that Master Contract that created the existing Weatherization system and therefore, uniquely qualified to provide the services.

IWx is a purpose-built solution created by Apex. They developed custom APIs, interfaces, and logic leveraging multiple Oracle platforms (OIA, OEC, Eloqua, VBCS, IDCS, OIC, and others) in ways that exceed standard configurations and has been extensively customized to meet IHWAP’s unique operational and regulatory requirements.

Also see Response to #2 above for detailed qualifications.

DCEO OCA has already spent over $16 million on this IT system and project. Apex has the institutional knowledge and technical expertise to continue providing support, maintenance, and enhancements without investing funding on training for a new vendor to learn the platform and functionality.