Change Order Notice PEBT3 9-8-2022.pdf

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Change Order Notice Chief Procurement Office General Services v.20.1

44 Ill. Adm. Code 1.1525(h) requires notice of renegotiated contracts and change orders that increase the cost of a contract by more than $10,000 or the time of completion by a total of 30 days or more to be posted on the Bulletin/BidBuy for 14 days.

This Change Order Notice provides detail as to why the change order is needed and, pursuant to Section 33E-9 of the Criminal Code, that the circumstances said to necessitate the change in performance were not reasonably foreseeable at the time the contract was signed or the change is germane to the original contract as signed. Change orders are defined by Section 1-15.12 of the Procurement Code and Section 1.2067 of the CPO-GS' Administrative Rules.

Detailed explanation for this change order:

11.0.0.20130303.1.892433.887364

Fidelity Information Services, LLC submitted the pricing based on the average Billable Accounts we had at the time of the Request For Proposal (RFP) posting. The estimates were completed using the most current Billable account data we had then applying our projected growth.

Due to the Covid-19 Pandemic, FNS implemented the Pandemic Electronic Benefit Services (P-EBT) program. P-EBT is a non-traditional food program. While the services and work to provide P-EBT is the same and absolutely germane, P-EBT services do have an increased cost. P-EBT is a short term program that does not allow for FIS cost recovery in the same way regular EBT services do. A typical EBT account can be billed at a lower rate than P-EBT because there is statistical data that shows costs and expenses incurred by the EBT provider can be fully recovered over a much longer period of time. There is only one guaranteed period of performance for any single P EBT case – The calendar month in which the case receives its first P-EBT deposit. Neither the State nor FNS can provide guarantee that a case established in month 1 will be eligible for any subsequent month of P-EBT services, thus providing cause for FIS to seek reasonable recovery of its startup and implementation costs for P-EBT in the first billable month. Prior to the first month of service, FIS needs to develop file processing, special reporting, transaction processing, IVR (interactive voice response, Customer service training). In the first month of service FIS will need to produce special P-EBT cards (the white ones), increase staffing levels to handle the large call volume from issuing approximately 1.1 million P-EBT issuances in a single month. All of this extra work will result in an drastic increase in Billable Accounts, which results in an increased estimated cost of the contract.

The introduction of the P-EBT program and the associated costs was unforeseeable at the time the Request for Proposal (RFP) was made.

Pricing for the Pandemic Electronic Benefit Services (P-EBT) pricing was not included in the original contract because the RFP was written pre-pandemic. Because P-EBT accounts are now required, the pricing structure for this addition will need to be added as well as the funds to pay for them.

The FIS EBT Link contract needs to be increased by $15,458,525.49, adding to the current contract amount of $20,376,912.00 making the new contract amount $35,835,437.49. This is Federally funded.