DHS B-49044 part I and part II.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 5

Bulletin Reference Number 26-444DHS-MIS44-B-49044

Requesting Agency/University Department of Human Services

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

Department/Bureau/Section: Integrated Eligibility Services (IES)

Need Identified Date: Jun 20, 2025 Supply/Service Need By Date: Oct 29, 2025

Project Title: IES Support Services

Vendor: NTT DATA AMERICAS INC

Provide a description of the supplies or services required:

The State requires a Program Management Office (PMO) vendor to assist the State’s executive leadership in managing and overseeing its efforts to coordinate activities related to the Integrated Eligibility System (IES). IES determines eligibility for programs such as Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and the Temporary Assistance for Needy Families program (TANF) in Illinois.

Value: Not to Exceed Value of Initial Term, this Change Order or Amendment: 1,399,067.52

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: Oct 29, 2025

Estimated Contract End Date: Oct 28, 2026

Number of Potential Renewals:

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

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)

Compatibility of Equipment, Accessories, Replacement Parts or Service

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:

Hiring another vendor to complete this project and provide support would cause delays and result in additional cost to the state.

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Bulletin Reference Number 26-444DHS-MIS44-B-49044

Requesting Agency/University Department of Human Services

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 May 1, 2021 Apr 30, 2023 4,490,014 IES PMO Services P-Covid19.106 RFP

2 May 1, 2023 July 29, 2023 628,492.74 IES PMO Services 4100175181 Emergency

3 July 31, 2023 Oct 28, 2023 628,492.74 IES PMO Services 4100181817 Emergency

4 Oct 29, 2023 Oct 28, 2024 2,293,978.76 IES PMO Services 4100186171 Sole Source

5 Oct 29, 2024 Oct 28, 2025 2,293,976.76 IES Tech Refresh 4100205797 Sole Source

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:

To continue management of the established Program Management Office (PMO) and to bring discipline and performance consistency for the Illinois Integrated Eligibility System (IES) due to programmatic changes and increasing system demands. This PMO will assist the IES Steering Committee and executive leadership in managing the planning and execution of priorities and system performance while maintaining ongoing operations and demands. To assist with the alignment of stakeholders, streamlined governance, and have a focus on value and program objectives.

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

PMO will continue the management of multiple, concurrent activities relating to the IES System, including transition to a new Maintenance and Operations (M&O) Vendor:

1. Update Master Operations Schedule

2. Produce Status Reporting

3. Facilitate Executives and Stakeholder Communications

4. Perform Risk/Issue Management

5. Maintain Project Repository

6. Provide Project Management Support

7. Tracking Tools - Action Items, Risks, Issues, Decisions, Tasks recording, tracking, and resolution;

8. Advisory - Recommendations for Illinois based on analysis of artifacts from multiple projects and sources;

9. Meeting facilitation and organization;

10. Staff with expertise in Project Management methodologies and tools.

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Bulletin Reference Number 26-444DHS-MIS44-B-49044

Requesting Agency/University Department of Human Services

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?

Onboarding a new vendor would result in at least 6 months of delays while any potential new vendor gets up to speed with the project and the complexities and intricacies of the SOI IES system, which could have a serious and detrimental impact on the state’s continued ability to retain our Authority To Connect to federal systems that are essential to the State being able to serve its citizens that rely on the benefits that IES allows us to provide.

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:

NTT DATA has the extensive knowledge and experience with:

- The Project Management Office tools used to manage the project;

- The IES stakeholders relationships.

This vendor is already proficient and effective in all these areas. They have been working on this project since May 2021 and have knowledge of the project, the issues, and the stakeholder relationships.

NTT Data have been performing the role of PMO since May 2021 and have played an essential and integral part of the overall IES project, helping the State, Deloitte and IBM / Kyndryl teams with managing the ongoing actions, tasks, and effort to keep the IES projects moving forward toward completion.

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

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

Onboarding a new vendor would result in at least 6 months of delays while any potential new vendor gets up to speed with the project and the complexities and intricacies of the SOI IES system, which could have a serious and detrimental impact on the state’s continued ability to retain our Authority To Connect to federal systems that are essential to the State being able to serve its citizens that rely on the benefits that IES allows us to provide.

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 initial price has been honored throughout the work of this vendor. It will remain so for this contract period.

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?

Failing to continue NTT Data’s work would undoubtedly result in significant delays that would result if the NTT Data contract is not renewed through October 2026, when Phase 4 is expected to be completed.

Onboarding a new vendor would result in at least 6 months of delays while any potential new vendor gets up to speed with the project and the complexities and intricacies of the SOI IES system, which could have a serious and detrimental impact on the state’s continued ability to retain our Authority To Connect to federal systems that are essential to the State being able to serve its citizens that rely on the benefits that IES allows us to provide.

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

The State does not have sufficient qualified staff available to be able to assume the duties provided by NTT Data under this contract.

Extending the NTT Data contract through a Sole Source Economically Feasible contract is the most cost-effective option available, particularly when considering the cost of spending 6 months to onboard a potential new vendor, in addition to the risk to our continued Authority To Connect to federal systems. State anticipates Vendor's activities will be assumed by State staff at the conclusion of this contract.

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Bulletin Reference Number 26-444DHS-MIS44-B-49044

Requesting Agency/University Department of Human Services

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 Sep 8, 2025

Printed Name Brian McCloskey E-mail Address brian.mccloskey@illinois.gov

Phone Number 217-741-9441

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 jean.sandstrom@illinois.gov

Phone Number 217-557-9298 Date Sep 8, 2025

Printed Name Jean Sandstrom

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 217-299-5628 Date Sep 8, 2025

Printed Name Allegra Larson E-mail Address allegra.larson@illinois.gov

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Bulletin Reference Number 26-444DHS-MIS44-B-49044

Requesting Agency/University Department of Human Services

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

Project Title IES Support Services

Vendor NTT DATA AMERICAS INC

Initial Date of Procurement Bulletin Posting Sep 9, 2025

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 217-622-1857

Printed Name Ellen H. Daley Date Sep 24, 2025

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

1. Update Master Operations Schedule

2. Produce Status Reporting

3. Facilitate Executives and Stakeholder Communications

4. Perform Risk/Issue Management

5. Maintain Project Repository

6. Provide Project Management Support

7. Tracking Tools - Action Items, Risks, Issues, Decisions, Tasks recording, tracking, and resolution;

8. Advisory - Recommendations for Illinois based on analysis of artifacts from multiple projects and sources;

9. Meeting facilitation and organization;

10. Staff with expertise in Project Management methodologies and tools.

- The Project Management Office tools used to manage the project;

- The IES stakeholders relationships.

This vendor is already proficient and effective in all these areas. They have been working on this project since May 2021 and have knowledge of the project, the issues, and the stakeholder relationships.

NTT Data have been performing the role of PMO since May 2021 and have played an essential and integral part of the overall IES project, helping the State, Deloitte and IBM / Kyndryl teams with managing the ongoing actions, tasks, and effort to keep the IES projects moving forward toward completion.

Onboarding a new vendor would result in at least 6 months of delays while any potential new vendor gets up to speed with the project and the complexities and intricacies of the SOI IES system, which could have a serious and detrimental impact on the state’s continued ability to retain our Authority To Connect to federal systems that are essential to the State being able to serve its citizens that rely on the benefits that IES allows us to provide.