Page 1 of 4 SPO Form 101 - Competition Impracticable Procurement Authorization (Rev 03.21.22)

Procurement Determination:

Competition Impracticable Authorization A.A.C. R2-7-E303

SECTIONS I THROUGH III MUST BE COMPLETED BY THE REQUESTOR

USE ADDITIONAL PAGE AS NECESSARY

SECTION I - State Governmental Unit Request

1. State Governmental Unit

2. Requestor 3. Email

4. Title 5. Telephone

SECTION II - Background

6. Service(s)/Material(s)

7. Supplier

8. Contract ID

9. CI Type

10. Requesting Term 11. Estimated Cost

ADES Disability Determination Services Administration (DDSA)

Jonelle Clytus jonelleclytus@azdes.gov

DBME Contracts and Purchasing Manager 480-261-8917

1/1/2023 - 12/31/2025 $41,215,862.00

- Modification pursuant to R2-7-E303(E) for a CI modification

Page 2 of 4 SPO Form 101 - Competition Impracticable Procurement Authorization (Rev 03.21.22)

SECTION III - Justification

12. Rationale

13. Provide details of the procurement need, reason for the competition impracticable, and how the proposed procurement is advantageous to the State

- Compliance with A.R.S. §§ 41-2533, 41-2534, 41-2538, or 41-2578 is impracticable

Page 3 of 4 SPO Form 101 - Competition Impracticable Procurement Authorization (Rev 03.21.22)

14. Describe the procurement process, strategy to promote competition, and determination that the price is fair and reasonable

15. I have conducted research and determined that no mandatory state contract is available for the service(s)/material(s)

16. Signature 17. Date of Request

In accordance with the Procurement Rules, the Arizona Uniform Terms and Conditions must be made a part of all Contracts. If you will be required to sign a software licensing agreement or sign any other agreement containing terms and conditions, these will need additional review to ensure that the terms and conditions do not invalidate the Arizona Uniform Terms and Conditions. Approval of this request does not allow for agencies to exceed their dollar acquisition amount of delegated authority.

11/21/2022

Page 4 of 4 SPO Form 101 - Competition Impracticable Procurement Authorization (Rev 03.21.22)

TO BE COMPLETED BY PROCUREMENT AUTHORITY

SECTION IV - Approval

18. Determination

19. Approved Expiration Date

20. Comments, conditions, or restrictions (as applicable)

21. Print Name 22. Title

23. Signature 24. Date of Approval

25. Use section as necessary

STATE GOVERNMENTAL UNIT NOTICE: This is an official written determination in response to a procurement authorization request.

A copy of the form shall be maintained by the State Governmental Unit and the State Procurement Office.

Upon completion, Requestor shall forward the signed form to the Contract Owner.

Contract Owner shall upload the signed approval version of this form in the eProcurement system.

If anticipated expenditure is above State Governmental Unit's delegation, forward document to SPOCompliance@azdoa.gov.

CI20015-2

David Steuber Chief Procurement Officer

12/6/2022

- Request Authorized Pursuant to R2-7-E303

12/31/2025 https://azdesgov.na1.adobesign.com/verifier?tx=CBJCHBCAABAAV3ZwIj6zgYucukO0-uUr3AhkIBx_TdN7

Health Assessment - Consultative Examinations (CE) Effective 1/1/2021 -12/31/2025 Text13: As directed by the Social Security Administration (SSA), DDSA is responsible for determining claimants’ disabilities and ensuring that adequate evidence is available to support its determination. When existing medical evidence is insufficient, not available or cannot be obtained, DDSA is authorized to purchase Consultative Examinations (CE’s) per SSA Programs Operation Manual System (POM) DI 39545.150 CE/MER Evidence. DDSA provides services to approximately 80,000 to 90,000 Arizona residents per year.

DDSA is required to purchases examinations from various medical specialties including psychological, somatic, speech and language, audiology, opthalmology and neurology throughout Arizona. The medical source must be properly licensed or certified, trained and experienced to perform the type of exam or test requested, must not be debarred from participation in any federal or federally assisted programs and must also have the equipment required to provide an adequate assessment and record of the alleged impairments.

Using a Fee-For-Service payment schedule as directed by SSA POM DI-39545.600, DDSA rates paid for these services are mutually agreed upon with SSA. The DDSA currently has approximately 80 direct contracts with licensed medical specialists for CE services. DDSA is also obligated to add medical specialists to meet their claimants needs as necessary.

DDSA is requesting a modification to CI20015 to increase the Fee Schedule for CE providers to be paid more competitive rates. SSA recently approved DDSA's request for higher payment rates for CE's. The higher payment rates will assist DDSA in retaining its current providers and hire additional CE providers in a variety of medical specialties to better meet the needs of Arizona residents.

It is in the best interest of the State to modify CI 20015 for the Fee Schedule increase to allow DDSA to offer more competitive rates to licensed medical specialists to perform CE services. This shall be effective 1/1/2023 - 12/31/2025. This increase to the Fee Schedule will improve the capability of meeting the needs of Arizona residents that we serve.

Text14: DDSA’s Professional Relations Officers (PRO) collaborates with our Operations Department to determine if there is a need to hire CE providers in a geographic area or in a particular medical specialty. SSA's Regional Disability Insurance Memorandum (RDIM) A-2018-03 gives guidance on how DDSA can recruit and maintain providers. The PRO recruits through local advertising, networking with universities and medical professionals and other means. Providers will also contact the PRO expressing interest in working with DDSA.

The PRO’s interview the prospective providers and conduct an orientation meeting prior to commencement of services. Orientations are usually at the provider's location and consist of a brief meeting to discuss the DDSA program in areas including, but not limited to, scheduling DDSA claimants, content of CE reports, claimant identification, report submission, rates of payment, and Privacy Act information. PRO’s determine whether the prospective provider will have the opportunity to form a contract with ADES/DDSA. If a provider can meet contractual requirements, they can provide services for DDSA claimants.

If DDSA is allowed to offer more competitive payment rates to CE providers through the modification of CI20015, more providers will consider working with DDSA. This will increase competition and interest among providers for a better selection for DDSA to recruit and hire providers in a variety of medical fields throughout Arizona. Additional CE providers will assist in DDSA meeting the needs of Arizona residents who apply for social security disability benefits.

DDSA conducted extensive research in determining the revised payment rates on the Fee Schedule for CE services. The payment rates offered by Disability Determination offices in nearby states such as Nevada, Utah and New Mexico were also considered. Therefore, DDSA is requesting an increase of approximately $10 million for CE services with the revised payment rates through 12/31/2025.