Data Analytics Sole Source Justification Form B-52613 signed.pdf

Sole Source Justification Form

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Bulletin Reference Number 27-427DES-ECOIN-B-52613

Requesting Agency/University Department of Employment Security

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

Department/Bureau/Section: IDES - Economic Information & Analysis

Need Identified Date: Apr 8, 2026 Supply/Service Need By Date: Jun 1, 2026

Project Title: Data Analytics Services for Workforce Data Integration and Analysis

Vendor: RAH Analytics LLC

Provide a description of the supplies or services required:

Data resides in various databases across IDES, and must be integrated and analyzed to generate economic intelligence; steps in this process include (1) enhance data warehouse operations (note: DoIT is presently the host of the server) ; (2) perform data enhancement and analysis including longitudinal record linking associated with quarterly wage record files, and (3) integration of multiple source data for both Shared Data Agreements (SDAs) and customer-facing resources.

Value: Not to Exceed Value of Initial Term, this Change Order or Amendment: 203,700

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

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Requesting Agency/University Department of Employment Security

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Jun 1, 2026

Estimated Contract End Date: June 30, 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

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

The current six-month emergency engagement with Raysha Hutchins (RAH Analytics LLC) is set to expire on May 15. Raysha Hutchins was brought on through an emergency engagement because she had a leadership role through an Intergovernmental Agreement (IGA) with Illinois State University to complete data management work that is critical to meeting deliverables that IDES is responsible with partners. In July of 2025, this IGA expired and IDES worked to find another university to meet this need. While considering options, the agency found efficiencies by initiating a plan to create a new Data Scientist position, instead of contracting with a university that would include fees, in addition to the salary of employees. IDES is currently working to create a new position, which it is anticipated it will take one year. In the interim, Raysha Hutchins has been on a six-month engagement and this sole source will bridge to the competitive posting of this position for the Data Scientist position.

It is anticipated that the new Data Scientist position will be filled by June 2027, which the IDES is working to create through documented procedures that the IDES team is creating in partnership with Raysha. In the interim, IDES must ensure uninterrupted maintenance and operational continuity of the workforce data warehouse originally developed by Illinois State University. This system is a critical enterprise asset that integrates multiple data sources, supports workforce reporting, and underpins intergovernmental data-sharing obligations. Without continued support, IDES faces a significant risk of operational disruption, including the inability to maintain, update, and troubleshoot the data warehouse environment. Given the system’s complexity—spanning multiple databases, coding structures, and reporting frameworks—any lapse in technical oversight would likely result in delays, data integrity issues, and service interruptions. Additionally, the data warehouse supports compliance with intergovernmental agreements, including those with the Illinois Board of Education, the Illinois Community College Board, and City Colleges of Chicago. Failure to meet reporting and data-sharing requirements could place IDES in contractual noncompliance, jeopardizing established partnerships and exposing the agency to returning payments from other agencies for non deliverables as well as reputation backlash other agencies would receive as a result.

Economic Benefit and Cost Avoidance - Maintaining continuity through the current vendor provides measurable economic benefits and cost, through preserving funding stream. This is done by the avoidance of rebuild and transition cost, operational efficiency and risk mitigation. Continued support ensures compliance with federal and local agreements tied to workforce data reporting. Disruptions could result in the forfeiture of federal reimbursements and grant funding, representing a direct financial loss to the State. The workforce data warehouse is a highly specialized system with established integrations and historical datasets. Transitioning to a new vendor or on-boarding new staff without prior system knowledge would require a substantial ramp-up period (estimated at 6–12 months), during which productivity would be reduced and additional costs incurred for knowledge transfer, reconfiguration, and potential rework. Retaining an experienced resource with direct knowledge of the system ensures continued efficiency in data processing, reporting, and issue resolution. This minimizes downtime and prevents costly delays in delivering contractual required reports to stakeholders. Immediate continuity reduces the likelihood of system degradation, compliance penalties, service disruptions or emergency remediation efforts, all of which carry higher costs than maintaining the current engagement.

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)

The maintenance of the workforce data warehouse that requires continuity of expertise that cannot be provided expeditiously.

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Bulletin Reference Number 27-427DES-ECOIN-B-52613

Requesting Agency/University Department of Employment Security

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

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 July 2014 June 2015 300,000 ISU data analytics services MOU 15-C-13 Exemption

2 July 2015 June 2018 1,149,668 ISU data analytics services MOU 15-C-13 Renewal

3 July 2018 June 2022 1,399,250 ISU data analytics services MOU 15-C-13 Renewal

4 July 2022 June 2025 1,035,000 ISU data analytics services MOU 15-C-13 Renewal

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

In addition to the information above, Raysha Hutchins was on a 6 month temporary appointment (personnel code) that expires on May 15, 2026.

Section VI - Business Rationale

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

IDES's Economic Information & Analysis Division requires continued data analytics and system support services to sustain the functionality and reliability of its workforce data warehouse, originally developed by Illinois State University and has since transferred hosting to the State of Illinois through the Department of Innovation & Technology. This system is a mission-critical platform that enables the integration, analysis, and reporting of workforce and economic data used for agency operations, compliance, and strategic decision-making. Data necessary to support IDES programs reside in multiple databases across the agency and must be systematically integrated and analyzed to generate actionable economic intelligence. The required services support several core functions include:

(1) enhancing data warehouse operations, noting that the hosting environment is currently maintained by the Illinois Department of Innovation and Technology (DoIT).

(2) performing advanced data enhancement and analysis, including longitudinal record linking associated with quarterly wage record files.

(3) integrating multiple data sources to support both Shared Data Agreements (SDAs) and customer-facing tools such as the Legislative Dashboard.

These processes are essential to producing accurate, timely, and comprehensive data outputs that inform both internal and external stakeholders. The resulting data products support statutory reporting, intergovernmental agreements, and critical agency functions, including workforce trend analysis and economic forecasting. If these services are not maintained, IDES will be unable to produce key data inputs necessary for informed agency decision-making. This includes the loss of critical data products required to support adequate Unemployment Insurance (UI) Trust Fund modeling, which is essential for financial planning, forecasting, and program sustainability. Additionally, disruptions in data integration and reporting may result in delays, inaccuracies, and contractual noncompliance with federal and state requirements, as well as negatively impact agreements with external partners. Given the complexity of the system architecture and the importance of these data functions, continued support is necessary to ensure operational continuity, data integrity, and the State’s ability to meet its financial, regulatory, contractual and programmatic obligations.

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Bulletin Reference Number 27-427DES-ECOIN-B-52613

Requesting Agency/University Department of Employment Security

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

Data Analytics Services:

(a) System Configuration and Validation for Remote Processing Environment;

(b) integration of multiple source data for IDES, including scheduled development of weekly UI claimant cohort files with associated measures, production of longitudinal workforce indicators associated with quarterly wage record file, and periodic code review toward enhancement;

(c) integration of multiple source data (i.e., third party cohort data) for Shared Data Agreements and agency partners (for example, our education partners at community colleges, high schools, and universities). Provision of Report Development, Production and Related Support for IDES;

(d) Scheduled production in support of quarterly claimant reports for Illinois legislative districts and Workforce Investment Areas; data enhancement and analysis for selected special projects (including collaborative work toward new development and implementation of associated workforce data products);

(e) Production of quarterly Legislative Data Dashboard & WIA reports, including 1) continuing claimants reports (persistence ratios by cohort, industry and geography) and migrating process to Economic Information & Analysis (EI&A) staff (development, collaborative refinement); 2) UI cohort-by-week reports, with week-by-week progression of claimant payment status, including extended benefit programs; and 3) bi-weekly production of “new format” report providing longitudinal insights on UI claimants from newly certified cohorts over the most recent 52 weeks.

Quality check and validate of Workforce Data Warehouse Files

(f) Validation of historical file integrity and consistency to enable long-term comparability of workforce analytics. Report error performance of data files to IDES staff if needed. Perform systematic quality checks on historical data files of UI weekly files (claimant, employer, geocoded / preliminary, final);

Serving as Economic Information & Analysis (EI&A) partner in Innovation and Labor Economics Research

(g) Development, experimental implementation, and support for broader adoption of innovative workforce data applications in support of EI&A mission.

(h) Continuing role as subject matter expert (SME) for work groups with Economic Information & Analysis (EI&A) and partner organizations (including Coleridge Initiative) on innovative Illinois workforce data applications and toward multi-state adoption; code development to establish UI claimant cohorts in alternative data analytic environments, including provision of production code and related consultation; ongoing participation Data Integration Group (with ADRF staff); development and implementation of focused reemployment reports for EI&A.

(j) Ongoing production and evaluation of monthly employment estimates for Illinois.

(k) Continuing production of monthly employment estimates by industry; continued collaboration with remote research partner to incorporate timely information including monthly wage records and other sources into industry employment estimates; initiated critical evaluation of seasonal adjustment process performance during COVID era with development of multi-state data set (from public sources) to facilitate analysis.

i. Data analysis, consultation, development, and provision of technical support for Economic Information & Analysis (EI&A) research priorities. Custom data products and related notes in support of Economic Information & Analysis (EI&A) staff research project and conference presentation; development and delivery of UI predictive analysis, starting with cohort-by-week report described above, persistence modeling applied at cohort-by-week level, inclusion of regular UI as well as extended benefit programs, provision of UI claimant counts and payment projections.

ii. Exploration of wage distributions in monthly wage record data, development of algorithm to identify “firms of interest” whose internal wage distributions are most divergent from within-industry wage distributions, implementation in quarterly reemployment reports; adaptation to facilitate remediation priorities.

Program for Research on Management Information Systems (PROMIS) Initial Claims and PROMIS Certified Claims files; monthly wage record (MWR) files (preliminary, final), quarterly wage record files (initial, preliminary, final), and QCEW quarterly files (initial, preliminary, final).

The data analyst conducting this work is expected to be an expert in Python and STATA coding languages, as well as having background in labor economics.

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Bulletin Reference Number 27-427DES-ECOIN-B-52613

Requesting Agency/University Department of Employment Security

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?

At the time the Illinois State University Intergovernmental Agreement ended 7/1/25, the Economic Information & Analysis Division (EI&A) pursued several options with the goal continuing this data analytics work. To ensure there was not a gap in this work, the goal was to retain Raysha Hutchins (Owner of RAH Analytics LLC.), as she was the primary code writer since 2016 (after having joined this effort in 2013 as a data analyst). By October 2025, it was clear that IDES would not be able to secure another Intergovernmental agreement with another university partner, including University of Illinois, Northern Illinois University, Southern Illinois University, and Northeastern IL Universities. There was a contractual impending deadline approaching for a data matching project with the Illinois State Board of Education (due early-November) and IDES's only feasible option was to attempt to on-board Raysha directly as an emergency term position. Raysha joined as a temporary employee of IDES starting 11/15/2025 with a maximum limit for this term of six months. Since she has joined the Economic Information & Analysis Division, we have been able to work directly with Raysha to assess the scale and scope of her engagement. When Raysha was working with the Illinois State University Intergovernmental Agreement (IGA), she was hired as a Junior Data Analyst in 2013, was promoted to the Senior Data Analyst in 2014, and transitioned to become the Project lead of the four-person team in 2016. Having Raysha continue in this work while embedded in the EI&A Division, sharing her institutional and technical knowledge has been essential to determining how many Full Time Equivalent (FTE) employees would be needed to manage the workload. It has been determined through Raysha's assessment of the job duties/responsibilities that this role can be performed with one Full Time Equivalent (FTE) Data Scientist with Labor Economics experience.

Raysha Hutchins (RAH Analytics LLC.) is the only person that can accomplish the outlined task of these contractual, time essential, and unique complexities within economic reason without a significant delay in deliverables that would. The former Principle Investigator and lead Economist for the Illinois State University project team suggested that it would take at least nine months to a year to on-board a Data Scientist with the ability to perform all of the tasks assigned for this scope of work. It was also determined by the Department of Central Management Services (CMS) that it would take up to a year to create a new IDES data scientist position, therefore it is anticipated the earliest this position will be posted and filled would be mid 2027.

IDES has researched release off master contracts and identified two that may meet the requirements of the position and determined the agency goals would not be met. Details of this research include:

Central Management Services (CMS) 24-416CMS-BOSS4-P-56142 Temporary Staffing and Illinois Department of Technology (DoIT) 23-448DOIT-ADMIN-P-56203 TOPS CAT FOUR contract both use the same vendor 22ND CENTURY TECHNOLOGIES, INC.

The Vendors cost would be market value with a 30% mark up. The average hourly pay with comparable skills for a data scientist with a background in labor economics, ranges for $150 to $300/hour mid-level and $250-$450/hour senior level based on 2025 data from Bureau of Labor Statistics. Raysha is a senior level executive who has three master degrees: Master's in Public Health statistics from Harvard University, as well as an MBA and a Master's in Applied Economics from Illinois State University. This contract is expected to pay $97/hour for her services as an independent contractor.

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Bulletin Reference Number 27-427DES-ECOIN-B-52613

Requesting Agency/University Department of Employment Security

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 requested services provide a highly specialized combination of technical capability, system-specific expertise, and institutional knowledge that is not readily available through other vendors without significant transition time, cost, and operational risk. The following factors distinguish these services:

1. System-Specific Architecture Knowledge (Quantifiable Ramp-Up Avoidance) Direct knowledge of the workforce data warehouse originally developed by Illinois State University, including its data structures, linkages, and processing logic. Avoids an estimated 6–12 month ramp-up period required for a new vendor to understand and replicate system functionality. Eliminates the need for extensive documentation reconstruction and reverse engineering of existing code and workflows.

2. Proven Integration of Multi-Source Data Systems Established capability to integrate data residing across multiple IDES databases into a unified analytical environment. Supports weekly Unemployment Insurance (UI) dataset development cycles, ensuring timely and accurate reporting. Maintains validated data pipelines already aligned with agency reporting requirements and intergovernmental agreements.

3. Advanced Longitudinal Data Linking and Econometric Analysis Demonstrated ability to perform longitudinal record linking using quarterly wage record files, a technically complex process requiring both statistical expertise and system familiarity. Supports production of workforce intelligence and economic modeling outputs, including inputs for UI Trust Fund modeling and forecasting.

4. Continuity of Operations and Compliance Assurance Ensures uninterrupted support for Shared Data Agreements (SDAs) and external reporting obligations, including deliverables tied to partner entities such as the Illinois Board of Education and City Colleges of Chicago.

Prevents potential noncompliance risks that could result in delays, penalties, or loss of funding tied to reporting requirements.

5. Immediate Operational Readiness (Zero Transition Delay)Existing familiarity with the current hosting environment managed by the Illinois Department of Innovation and Technology (DoIT). Ability to continue operations without on-boarding, training, or system reconfiguration, ensuring no disruption to ongoing data processing and reporting cycles.

6. Cost Efficiency and Risk Mitigation (Quantifiable Cost Avoidance)Avoids costs associated with on-boarding a new vendor, including:Knowledge transfer and training costs. Potential rework or system errors during transition. Delayed deliverables impacting funding and decision-making. Prevents higher emergency procurement costs that could arise from system failure or missed reporting deadlines.

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

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Bulletin Reference Number 27-427DES-ECOIN-B-52613

Requesting Agency/University Department of Employment Security

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

University of Illinois, Northern Illinois University, Southern Illinois University, Northeastern Illinois University and Master Contracts (contract 24-416CMS-BOSS4-P-56142 (Temporary Staffing) and 23-448DOIT-ADMIN-P-56203 (TOPS Category Four))

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:

Universities were unable to meet requirements due to extended onboarding timelines, lack of system-specific familiarity and the inability to ensure continuity of the existing data warehouse functions. Issues include a knowledge gap that would delay deliverables from contracts due to extended onboarding.

The master contracts were unable to meet requirements due to a mark up of 30% that was applied to billable labor rates and issues with extended onboarding due to knowledge gap in completing the work. Also, the master contracts focused on specialist skillset, which would not meet the agency needs.

More details are provided in answer #3.

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).

The vendors cost would be market value with a 30% mark up. The average hourly pay with comparable skills for a data scientist with a background in labor economics, ranges for $150 to $300/hour mid-level and $250-$450/hour senior level based on 2025 data from Bureau of Labor Statistics. Raysha is a senior level executive who has three master degrees: Master's in Public Health statistics from Harvard University, as well as an MBA and a Master's in Applied Economics from Illinois State University. This contract is expected to pay $97/hour for her services as an independent contractor.

From an economic standpoint, the proposed approach is the most feasible and responsible option.

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 agency undertook a comprehensive review to ensure the proposed pricing reflects the best possible value. Market research was conducted using industry benchmarks, including data from the Bureau of Labor Statistics, which identified prevailing hourly rates for comparable labor economics and data science expertise ranging from $150 to $300 per hour for mid-level professionals and $250 to $450 per hour for senior-level specialists.

In addition, the agency evaluated existing State contract vehicles through the Illinois Department of Central Management Services and the Illinois Department of Innovation and Technology, both of which utilize 22nd Century Technologies, Inc. and apply an estimated 30% vendor markup. When factoring in this markup, total billable rates under these alternatives would exceed market averages, making them less cost-effective.

The proposed pricing was further assessed against historical costs, comparable engagements, and the specialized nature of the services required. The agency determined that the rate is fair and reasonable as it falls within established market ranges while avoiding additional vendor markups and transition-related expenses. Moreover, this approach provides significant cost avoidance by eliminating on-boarding delays, reducing the risk of operational disruption, and preserving critical funding tied to compliance and reporting.

Overall, the pricing reflects a balanced and economically feasible solution that ensures continuity of operations while delivering the best value to the State.

The price was determined based on a 56 week (37.5 hours a week) contract at $97 per hour .

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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 this sole source is not approved and a competitive procurement is required, the State will incur both immediate and downstream financial and operational impacts.

A competitive solicitation would introduce an estimated 3–6 month delay for development, posting, evaluation, and award, followed by an additional 6–12 month ramp-up period for a new vendor to gain sufficient understanding of the workforce data warehouse originally developed by Illinois State University.

During this transition, the agency risks disruption to critical functions, including weekly Unemployment Insurance (UI) data processing, longitudinal wage record linking, and integration of multi-source data required for Shared Data Agreements (SDAs) and reporting tools.

Any interruption in these services would compromise data accuracy and timeliness, potentially resulting in noncompliance with contractual agreements supported by the Illinois Board of Education and City Colleges of Chicago, and could jeopardize associated funding, including federal reimbursements.

From a financial standpoint, pursuing a competitive bid would likely result in higher overall costs due to vendor pricing structures and inefficiencies during transition. Comparable services obtained through existing State contracts administered by the Illinois Department of Central Management Services and the Illinois Department of Innovation and Technology include an estimated 30% vendor markup, increasing billable rates significantly above the proposed solution. Additional costs would include on-boarding, knowledge transfer, potential rework, and productivity losses during the learning curve. Furthermore, delays or inaccuracies in producing key data products, such as those required for UI Trust Fund modeling—could impair financial forecasting and decision-making, creating broader fiscal risk for the State. In total, the absence of a sole source approval would expose the State to increased costs, operational instability, and potential loss of critical funding streams.

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

This request is driven by the need to ensure uninterrupted operation of a mission-critical data warehouse that supports federally and state-mandated economic and labor market reporting. The system is highly customized, with complex data integrations, proprietary workflows, and established reporting schedules that require precise continuity. Any disruption or degradation in performance could result in delayed or inaccurate reporting, impacting compliance obligations and decision-making at both the State and federal levels.

Any operational disruption will result in potential contractual noncompliance with intergovernmental agreements, including those with the Illinois Board of Education and the City Colleges of Chicago. Such disruptions could result in the forfeiture of associated funding, including federal reimbursements.

Engaging RAH Analytics LLC, led by Raysha Hutchinson, provides critical business continuity due to her established knowledge of the system and subject matter expertise. This continuity enables uninterrupted operations with zero downtime, which is particularly essential given key contractual deliverables due in July.

This engagement represents a short-term transitional solution that supports immediate operational needs while advancing the agency’s long-term staffing strategy. RAH Analytics LLC will help maintain and stabilize current operations and provide a structured framework to support the on-boarding of a newly proposed Full-Time Equivalent (FTE) position, as IDES proceeds with hiring and developing dedicated internal resources.

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Bulletin Reference Number 27-427DES-ECOIN-B-52613

Requesting Agency/University Department of Employment Security

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 May 20, 2026

Printed Name Andre' Turner E-mail Address andre.turner@illinois.gov

Phone Number 312-793-0912

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 jared.w.walkowitz@illinois.gov

Phone Number 312.636.7669 Date May 20, 2026

Printed Name Jared Walkowitz

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 217-836-3618 Date May 20, 2026

Printed Name Alyson Moore E-mail Address alyson.r.moore@illinois.gov

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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

It is anticipated that the new Data Scientist position will be filled by June 2027, which the IDES is working to create through documented procedures that the IDES team is creating in partnership with Raysha. In the interim, IDES must ensure uninterrupted maintenance and operational continuity of the workforce data warehouse originally developed by Illinois State University. This system is a critical enterprise asset that integrates multiple data sources, supports workforce reporting, and underpins intergovernmental data-sharing obligations. Without continued support, IDES faces a significant risk of operational disruption, including the inability to maintain, update, and troubleshoot the data warehouse environment. Given the system’s complexity—spanning multiple databases, coding structures, and reporting frameworks—any lapse in technical oversight would likely result in delays, data integrity issues, and service interruptions. Additionally, the data warehouse supports compliance with intergovernmental agreements, including those with the Illinois Board of Education, the Illinois Community College Board, and City Colleges of Chicago. Failure to meet reporting and data-sharing requirements could place IDES in contractual noncompliance, jeopardizing established partnerships and exposing the agency to returning payments from other agencies for non deliverables as well as reputation backlash other agencies would receive as a result.

Economic Benefit and Cost Avoidance - Maintaining continuity through the current vendor provides measurable economic benefits and cost, through preserving funding stream. This is done by the avoidance of rebuild and transition cost, operational efficiency and risk mitigation. Continued support ensures compliance with federal and local agreements tied to workforce data reporting. Disruptions could result in the forfeiture of federal reimbursements and grant funding, representing a direct financial loss to the State. The workforce data warehouse is a highly specialized system with established integrations and historical datasets. Transitioning to a new vendor or on-boarding new staff without prior system knowledge would require a substantial ramp-up period (estimated at 6–12 months), during which productivity would be reduced and additional costs incurred for knowledge transfer, reconfiguration, and potential rework. Retaining an experienced resource with direct knowledge of the system ensures continued efficiency in data processing, reporting, and issue resolution. This minimizes downtime and prevents costly delays in delivering contractual required reports to stakeholders. Immediate continuity reduces the likelihood of system degradation, compliance penalties, service disruptions or emergency remediation efforts, all of which carry higher costs than maintaining the current engagement.

(1) enhancing data warehouse operations, noting that the hosting environment is currently maintained by the Illinois Department of Innovation and Technology (DoIT).

(2) performing advanced data enhancement and analysis, including longitudinal record linking associated with quarterly wage record files.

(3) integrating multiple data sources to support both Shared Data Agreements (SDAs) and customer-facing tools such as the Legislative Dashboard.

These processes are essential to producing accurate, timely, and comprehensive data outputs that inform both internal and external stakeholders. The resulting data products support statutory reporting, intergovernmental agreements, and critical agency functions, including workforce trend analysis and economic forecasting. If these services are not maintained, IDES will be unable to produce key data inputs necessary for informed agency decision-making. This includes the loss of critical data products required to support adequate Unemployment Insurance (UI) Trust Fund modeling, which is essential for financial planning, forecasting, and program sustainability. Additionally, disruptions in data integration and reporting may result in delays, inaccuracies, and contractual noncompliance with federal and state requirements, as well as negatively impact agreements with external partners. Given the complexity of the system architecture and the importance of these data functions, continued support is necessary to ensure operational continuity, data integrity, and the State’s ability to meet its financial, regulatory, contractual and programmatic obligations.

Q2Answer: Data Analytics Services:

(a) System Configuration and Validation for Remote Processing Environment;

(b) integration of multiple source data for IDES, including scheduled development of weekly UI claimant cohort files with associated measures, production of longitudinal workforce indicators associated with quarterly wage record file, and periodic code review toward enhancement;

(c) integration of multiple source data (i.e., third party cohort data) for Shared Data Agreements and agency partners (for example, our education partners at community colleges, high schools, and universities). Provision of Report Development, Production and Related Support for IDES;

(d) Scheduled production in support of quarterly claimant reports for Illinois legislative districts and Workforce Investment Areas; data enhancement and analysis for selected special projects (including collaborative work toward new development and implementation of associated workforce data products);

(e) Production of quarterly Legislative Data Dashboard & WIA reports, including 1) continuing claimants reports (persistence ratios by cohort, industry and geography) and migrating process to Economic Information & Analysis (EI&A) staff (development, collaborative refinement); 2) UI cohort-by-week reports, with week-by-week progression of claimant payment status, including extended benefit programs; and 3) bi-weekly production of “new format” report providing longitudinal insights on UI claimants from newly certified cohorts over the most recent 52 weeks.

Quality check and validate of Workforce Data Warehouse Files

(f) Validation of historical file integrity and consistency to enable long-term comparability of workforce analytics. Report error performance of data files to IDES staff if needed. Perform systematic quality checks on historical data files of UI weekly files (claimant, employer, geocoded / preliminary, final);

Serving as Economic Information & Analysis (EI&A) partner in Innovation and Labor Economics Research

(g) Development, experimental implementation, and support for broader adoption of innovative workforce data applications in support of EI&A mission.

(h) Continuing role as subject matter expert (SME) for work groups with Economic Information & Analysis (EI&A) and partner organizations (including Coleridge Initiative) on innovative Illinois workforce data applications and toward multi-state adoption; code development to establish UI claimant cohorts in alternative data analytic environments, including provision of production code and related consultation; ongoing participation Data Integration Group (with ADRF staff); development and implementation of focused reemployment reports for EI&A.

(j) Ongoing production and evaluation of monthly employment estimates for Illinois.

(k) Continuing production of monthly employment estimates by industry; continued collaboration with remote research partner to incorporate timely information including monthly wage records and other sources into industry employment estimates; initiated critical evaluation of seasonal adjustment process performance during COVID era with development of multi-state data set (from public sources) to facilitate analysis.

i. Data analysis, consultation, development, and provision of technical support for Economic Information & Analysis (EI&A) research priorities. Custom data products and related notes in support of Economic Information & Analysis (EI&A) staff research project and conference presentation; development and delivery of UI predictive analysis, starting with cohort-by-week report described above, persistence modeling applied at cohort-by-week level, inclusion of regular UI as well as extended benefit programs, provision of UI claimant counts and payment projections.

ii. Exploration of wage distributions in monthly wage record data, development of algorithm to identify “firms of interest” whose internal wage distributions are most divergent from within-industry wage distributions, implementation in quarterly reemployment reports; adaptation to facilitate remediation priorities.

Program for Research on Management Information Systems (PROMIS) Initial Claims and PROMIS…