BPM000388_Executive_Summary.pdf

Douglas A. Ducey | Governor Cara M. Christ, MD, MS | Director

150 North 18th Avenue, Suite 260, Phoenix, AZ 85007-3247 P | 602-542-1040 W | azhealth.gov

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Date: March 19, 2019

To: Ana Shoshtarikj, Chief Procurement Officer

From: Bariah Steiner, Procurement Specialist

Subject: Executive Summary for Request for Proposal (RFP) No. BPM000388, GIS Medical Marijuana Mapping Services

This Request for Proposal (RFP) commenced under the Revised Arizona Procurement Code. Revised Arizona Statute 41-2534, Competitive Sealed Proposal followed, including R2-7-C301 (Solicitation), R2-7-C302 (Pre-Offer Conference), R2-7-C303 (Solicitation Amendment), R2-7-C306 (Receipt, Opening, and Recording of Offers), R2- 7-C312 (Responsibility Determinations), R2-7-C314 (Negotiations with Responsible Offerors and Revisions of Offers), R2-7-C315 (Final Proposal Revisions), R2-7-C316 (Evaluation of Offers) and R2-7-C317 (Contract Award).

Background

Proposition 203 was approved in 2010 by Arizona voters, an initiative that legalized the medical use of marijuana.

The Arizona Department of Health Services (ADHS) was given the task to regulate the Arizona Medical Marijuana Act (AMMA). AMMA protects terminally or seriously ill patients from State prosecution for legally purchase, possess, and use limited amounts of medicinal Cannabis, as prescribed by their healthcare provider. ADHS Bureau of Special Licensing (BSL) is responsible for issuing licenses, including Medical Marijuana Registry Identification Cards to Qualifying Patients (QPs) or designated caregivers, as well as dispensary agents who meet the licensing requirements. QPs may obtain medical marijuana from nonprofit medical marijuana dispensaries, which are also regulated by ADHS. In instances when dispensary is not available, ADHS allows private cultivation.

The Act is self-funding and establishes safeguards:

1. Registration cards;

2. Fingerprinting of caregivers and dispensary personnel to exclude drug and violent felons;

3. Strict security, recordkeeping and oversight requirements;

4. Inspection of dispensaries;

5. Restrictions on location and number of dispensaries; and

6. Providing penalties for breach of the established regulations.

Objective

For the purposes of meeting the needs of the State of Arizona medical marijuana users, and equal distribution of medical marijuana dispensaries, as well as approval of private cultivation, ADHS BSL requires a Contractor to provide GIS Mapping services, with 100% accuracy.

150 North 18th Avenue, Suite 500, Phoenix, AZ 85007-3247 P | 602-542-1025 F | 602-542-1062 W | azhealth.gov

Health and Wellness for all Arizonans

Timeline

1. Request for new Contract was received by Procurement on August 20th, 2018;

2. Scope of Work draft was received by Procurement on September 14th, 2018 ;

3. Procurement Disclosure Statements were signed by individuals involved in the Solicitation on September

20th, 2018;

4. Revised Scope of Work was received by Procurement on December 21st, 2018;

5. The RFP was posted and sent to forty-nine (49) suppliers via APP on December 27th, 2018;

6. Purchase order for the RFP legal ad in the Arizona Republic was placed on January 2nd, 2019;

7. Solicitation Amendment One (1) was posted in APP on January 2nd, 2019;

8. Pre-Offer conference was held on January 8th, 2019;

9. Solicitation Amendment Two (2) was posted in APP on January 11th, 2019;

10. Solicitation closed on January 22nd, 2019. Six (6) proposals were received.

Evaluation Process

1. The Evaluation Committee consisted of four (4) Subject Matter Experts, as listed below;

2. The Kick-Off meeting was held on January 23rd, 2019, to sign the Evaluation Committee Member Statements and distribute the received proposals;

3. Consensus meetings were held on January 31st and February 1st, 2019;

4. Notification for Conference call for negotiation/clarification to the Offerors determined to be reasonably susceptible for award was sent on February 21st, 2019;

5. Negotiation calls were held on February 22nd and February 25th, 2019;

6. Final Proposal Revision letter was sent via email to the Offerors on February 25th, 2019, with Final Revision due on March 4th, 2019, at 3:00 PM AZ local time;

7. Solicitation experienced APP errors, and some suppliers could not update costs or fully submit updated proposals. APP help desk was contacted on March 5th, 2019, for an activity log and status report of the errors occurring (ticket #129053);

8. APP help desk emailed the activity logs and error resolutions on March 12th, 2019;

9. Remaining proposals affected by the APP error collected via email on March 14th, 2019;

10. BAFO proposal distributed to Evaluation Committee on March 15th, 2019;

11. Consensus meeting was held on March 18th, 2019; and

12. The Executive Summary along with other Award documents were submitted to Ana Shoshtarikj, Chief

Procurement Officer on March 20th, 2019.

150 North 18th Avenue, Suite 500, Phoenix, AZ 85007-3247 P | 602-542-1025 F | 602-542-1062 W | azhealth.gov

Health and Wellness for all Arizonans

The Evaluation Committee consisted of:

- Krystal Colburn, Vital Records Bureau Chief

- Megan Whitby, Special Licensing Bureau Chief

- Thomas Salow, Branch Chief

- Wes Kortuem, GIS Supervisor

Scoring Tabulation

Each Offeror achieved the following scores:

Initial Score

Offeror Experience & Expertise Methodology Cost Total

CartoLab LLC 300 207.5 245 752.5

Michael Baker 427.5 137.5 214.9 779.9

Timmons Group 362.5 207.5 249.2 819.2

NV5 397.5 217.5 238.6 853.6

Synergy Systems 427.5 227.5 300 955

Terrasystems Southwest 465 237.5 253.4 955.9

Final Score

Offeror Experience & Expertise Methodology Cost Total

CartoLab LLC 407.5 147.5 230 805

NV5 417.5 157.5 217 810.8

Michael Baker 427.5 157.5 212.3 815.8

Synergy Systems 427.5 227.5 242.1 918.2

Timmons Group 420 247.5 233.9 921.7

Terrasystems Southwest 465 257.5 300 1022.5

Health and Wellness for all Arizonans

APP Sourcing Project Error

On March 1st, the Procurement Officer was notified that an error was occurring on the solicitation in APP Items Tab. First to report the issue was Synergy Systems that prices could not be updated on their second response to Round Four (4). Procurement advised the supplier to reach out to the APP help desk for assistance (ticket #128372), and were told that the Help Desk could not resolve the issue. Synergy submitted their new pricing in an excel spreadsheet as a workaround to the problem.

On March 4th, 2019, Terrasystems informed the Procurement Officer that they were experiencing difficulties updating their cost in APP as well. Procurement notified all shortlisted suppliers for Round Four (4) to submit their updated pricing in an excel spreadsheet attached to their revised proposal.

On March 4th, 2019, after the RFP closed, Procurement was notified by the supplier NV5 that APP would not take their submission prior to the due time. NV5 could not provide screenshots of the error preventing them from submitting their proposal. Procurement contacted the APP Help Desk and requested an activity log of the supplier (ticket #12053). The help desk returned with the activity log on March 12th, 2019, showing that the supplier was attempting to access the solicitation before the due date.

On March 4th, 2019, after the RFP closed, the Procurement Officer discovered that one of the documents from CartoLab’s revised proposal shows an error message when downloaded from APP. Procurement contacted the APP help desk on this data corruption on March 5th, 2019 (ticket# 129053). The help desk emailed on March 12th, 2019, stating that it is possible for documents to become corrupted in APP, but they are unable to determine if the corruption occurred because of APP.

On March 14th, solely for the purpose of accepting the revised proposals from suppliers who experienced APP errors, the Procurement Officer attempted to create a new Round in APP. The Procurement Officer had no ability to create Round Five (5), and reached out to the help desk for assistance (ticket #132030). The help desk provided a possible solution of rejecting the current round’s proposals before a new round could be created. This would require all six (6) suppliers to resubmit their proposals. The help desk could not ensure that this solution would work, and due to the time constraints, Procurement determined it’s in the best interest of the State to accept NV5’s and CartoLab’s proposals through email on March 14th, 2019. The Procurement Officer uploaded the documents received by email.

150 North 18th Avenue, Suite 500, Phoenix, AZ 85007-3247 P | 602-542-1025 F | 602-542-1062 W | azhealth.gov