CPO signed part I and part II DPH B-39922.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 24-482DPH-PREPD-B-39922

Requesting Agency/University Illinois Department of Public Health

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

Department/Bureau/Section: Office of Preparedness and Response

Need Identified Date: 10/01/2023 Supply/Service Need By Date: 01/01/2024

Project Title: FY24 Strategic National Stockpile Warehouse

Vendor: Federal Warehouse Company

Provide a description of the supplies or services required:

Warehouse space and staff assistance with receiving supplies and materials, repackaging materials, providing warehouse operations, and ensure rapid delivery of federal medical counter measures assets/materials during public health and medical emergencies. The mission is to dispense medications to the public quickly, with a goal of distribution within 48 hours of a public health event such as a release of a biological agent.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 795,600

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: 01/01/2024

Estimated Contract End Date: 12/31/2024

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

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)

It is not economically feasible to move everything we have in warehouse and it would be impossible to do so in such a short time.

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

Another justification that this purchase is only available from a sole source is because it is:

Loss of Federal Funding if State of Illinois does not have Strategic National Stockpile Warehouse

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Bulletin Reference Number 24-482DPH-PREPD-B-39922

Requesting Agency/University Illinois Department of Public Health

Another justification that this purchase is only available from a sole source is because it is:

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 07/01/2023 12/31/2023 397,800 Federal Warehouse FY24 37400010K Exemption

2 07/01/2022 06/30/2023 795,600 Federal Warehouse FY23 37400010K Exemption

3 07/01/2021 06/30/2022 506,520 Federal Warehouse FY22 27200100J Exemption

4 07/01/2020 06/30/2021 271,060 Federal Warehouse FY21 17500010i Exemption

5 07/01/2020 06/30/2021 182,835

Federal Warehouse FY20 07500100H Exemption

6 07/01/2017 06/30/2020 75,000 Federal Warehouse FY17-FY19 87000010F Small Purchase

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

Section VI - Business Rationale

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

The Strategic National Stockpile (SNS) is a Federally funded program to have a system in place to immediately distribute critical supplies in the time of a disaster. This can include pharmaceuticals, nerve agent antidotes, Personal Protective Equipment (PPE) items such as ventilators, other medical equipment’s, and medical supplies like gloves, gowns, masks, etc. The agency needs a location to store these supplies. It is required by Centers for Disease Control and Prevention (CDC) and Administration for Strategic Preparedness and Response (ASPR) that all 50 states to have a designated Strategic National Stockpile Warehouse that is maintained by the state.

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Bulletin Reference Number 24-482DPH-PREPD-B-39922

Requesting Agency/University Illinois Department of Public Health

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

1. Storage with 25,000 square feet-extra storage fees if over 25,000 square feet (5,000 sq. ft. min.)

2. Utilization of Warehouse Management to track inventory and generate instant reports 3 Utility charge for Ultra cold and other related freezers includes up to 25 freezers

4. Vaccine and Ancillary emergency and schedule logistics including receipt, inventory, pick and building orders during normal and non-normal business hours

5. Handling in palletized PPE and non-vaccine items

6. Handling out of palletized PPE and non-vaccine items

7. Utility charge for up to 5 Ultra cold freezers

8. Utility charge for up to 15 Ultra cold freezers

9. Shipping and handling vaccines

10. Maintain on-site security when the facility is not occupied by employees, ensuring the facility is staffed 24/7 with personnel.

11. Must have fencing or another type of permanent barrier to provide a secure perimeter around the facility and warehouse docks.

12.The facility should not be surrounded by a residential neighborhood or have multiple access points.

13. Facility must be located within 2 miles of an interstate highway for ease of access for emergency staff and be located within 100 miles of Springfield, Illinois.

14. The facility manager and at least two other Vendor personnel shall have experience and knowledge of what is required of SNS-RSS operations in the event of activation.

15. Facility has various requirements such as the surface floors should be concrete especially in the unloading area(s), have up to 20 loading docks to receive federal materials/supplies, the docks have height and width requirements, and allow access by properly identified Federal, State, and security personnel.

16. Facility provides that the temperature remains in the allowed range, with only transient spikes up as long as the spikes do not exceed hours.

17. This contract will need/remain in place during a transition time while IFB is getting into place

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?

If Illinois Department of Public Health was to use another vendor, we would have to move all of the supplies. A moving company, such as Mayflower Company, that specializes in moving medical equipment would have to be use. It is estimated with the 25,000 square feet of pallets stored would have estimated cost of $2.00 per square foot and the packing cost is $.75 per square feet to move which is estimate total to be $68,750 for the movers. This undertaking would be extremely expensive and not economically feasible.

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 total estimate cost to move the warehouse would be in the hundreds of thousands. We have 25,000 square feet of pallets stored. It would require a moving company that can move medical equipment that has estimate cost of $68,750. Besides the movers, it is estimated that 4 state contract employees would need to be assigned the job to help with the moving and setting up at a new place.

Their estimated hours would be 4 weeks, 40 hours a week at $50.00 per hour for a total of $32,000. The estimate total for the move is around $100,750.00. Additional cost would be two warehouses monthly rent for at least one month. This vendor monthly rent is $66,300 per month and estimating the second one around $55,000 per month. So total estimate cost for move is around $222,050.

Also, this move would require current state employees many hours getting things set up for the transfer to another warehouse and planning set up at the new location. It would not be possible to do in such a short time.

The Federal government would need to approve the new storage place before the move could take place and approve the move.

Agency is working on an IFB with a target publication date of Spring 2024

5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No

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Bulletin Reference Number 24-482DPH-PREPD-B-39922

Requesting Agency/University Illinois Department of Public Health

5a. If no, why weren't alternatives evaluated?

With the response and management of the COVID-19 pandemic and Monkey Pox, the increased need for enhanced capabilities at the States Strategic National Stockpile program, has increased its current services.

The agency has been conducting meetings with a project team that has been helping with this procurement. The IFB is currently in process, the draft is being reviewed and should be published by Spring 2024 Due to the fact this rental must be available continually with no down time, the State will have to ensure that a potentially new place will need time to move the medical equipment and supplies after it is approved by the State and Federal agencies in charge of the Strategic National Stockpile Warehouses. The operational needs are stated in section 2.

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 monthly storage and other monthly cost did not increased from last year. The higher cost are more due to adding additional requirements of the Vendor to manage the continuous public health threats. The vendor had to place additional freezers to store the COVID-19 and Monkey Pox vaccines . This caused higher utility charges and storage space. Illinois Department of Public Health (IDPH) has asked the Vendor to have more staff work non-business hours than what they had done in the past which increase labor cost. Price was determined fair and reasonable based off of past year expenses and the additional expenses this year. IDPH does not have a place to move these items and it would be extremely expensive as quantified in #3 and #4 to do so.

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?

If the request is denied Illinois Department of Public Health currently does not have available any space to store these supplies. If we do not procure such space we will not be able to receive, process, distribute, and store emergency medical countermeasures in the case of public health and health care emergencies. This lack of planning for space could lead to an increase risk of death and disease to our Illinois citizens. The lack of procurement will cause the loss of federal funds if not completed, as federal funds have been obligated specifically for this project and cannot be redirected for any other purpose.

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

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Bulletin Reference Number 24-482DPH-PREPD-B-39922

Requesting Agency/University Illinois Department of Public Health

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 11/21/2023

Printed Name C. Marcus Taylor E-mail Address Cecil.Taylor@illinois.gov

Phone Number 217-299-5914

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 nicole.hildebrand@illinois.gov

Phone Number 217-558-0264 Date Nov 21, 2023

Printed Name Nicole Hildebrand

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 217-299-5563 Date

Printed Name Gina Jacaway E-mail Address gina.jacaway@illinois.gov

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Bulletin Reference Number 24-482DPH-PREPD-B-39922

Requesting Agency/University Illinois Department of Public Health

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

Project Title FY24 Strategic National Stockpile Warehouse

Vendor Federal Warehouse Company

Initial Date of Procurement Bulletin Posting Nov 22, 2023

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 217-558-2231

Printed Name Ellen H. Daley Date

CPO E-mail Ellen.H.Daley@illinois.gov

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 Ellen.H.Daley@illinois.gov

Federal Warehouse FY20

2. Utilization of Warehouse Management to track inventory and generate instant reports 3 Utility charge for Ultra cold and other related freezers includes up to 25 freezers

4. Vaccine and Ancillary emergency and schedule logistics including receipt, inventory, pick and building orders during normal and non-normal business hours

5. Handling in palletized PPE and non-vaccine items

6. Handling out of palletized PPE and non-vaccine items

7. Utility charge for up to 5 Ultra cold freezers

8. Utility charge for up to 15 Ultra cold freezers

9. Shipping and handling vaccines

10. Maintain on-site security when the facility is not occupied by employees, ensuring the facility is staffed 24/7 with personnel.

11. Must have fencing or another type of permanent barrier to provide a secure perimeter around the facility and warehouse docks.

12.The facility should not be surrounded by a residential neighborhood or have multiple access points.

13. Facility must be located within 2 miles of an interstate highway for ease of access for emergency staff and be located within 100 miles of Springfield, Illinois.

14. The facility manager and at least two other Vendor personnel shall have experience and knowledge of what is required of SNS-RSS operations in the event of activation.

15. Facility has various requirements such as the surface floors should be concrete especially in the unloading area(s), have up to 20 loading docks to receive federal materials/supplies, the docks have height and width requirements, and allow access by properly identified Federal, State, and security personnel.

16. Facility provides that the temperature remains in the allowed range, with only transient spikes up as long as the spikes do not exceed hours.

17. This contract will need/remain in place during a transition time while IFB is getting into place

The Federal government would need to approve the new storage place before the move could take place and approve the move.

Agency is working on an IFB with a target publication date of Spring 2024

The agency has been conducting meetings with a project team that has been helping with this procurement. The IFB is currently in process, the draft is being reviewed and should be published by Spring 2024 Due to the fact this rental must be available continually with no down time, the State will have to ensure that a potentially new place will need time to move the medical equipment and supplies after it is approved by the State and Federal agencies in charge of the Strategic National Stockpile Warehouses. The operational needs are stated in section 2.