FDGS SSJFI CPO.pdf

Sole Source Justification Form

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Bulletin Reference Number 21-427DES-INFOS-B-14557

Requesting Agency/University Illinois Department of Employment Security

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

Department/Bureau/Section: Information Services Division

Need Identified Date: 2/27/2020 Supply/Service Need By Date: Jul 1, 2020

Project Title: FY21 Teleserve Interactive Voice Response (IVR) AccessNet WinRIMS Software Maintenance/Support

Vendor: First Data Government Solutions, LP

Provide a description of the supplies or services required:

To provide maintenance and support of IDES' Teleserve Interactive Voice Response (IVR) custom AccessNet/WinRIMS software which is critical to the operation of the Illinois Department of Employment Security (IDES)'s Unemployment Insurance (UI) compensation system, the Illinois Benefit Information System (IBIS). The custom application processes hundreds of thousands of calls per week from unemployment compensation claimants certifying as to their continued eligibility for benefits. IDES considers this procurement a "Sole Source", as opposed to a "Sole Economically Feasible Source", not solely based on the trademarked and proprietary nature of the software, but also since the application was designed specifically with regard to Illinois and Federal laws and regulations. While other sites can provide certain data points, no other vendor can offer the 23 data points in real time First Data Government Solutions can offer. IDES does not have the ability to choose between various vendors based on economic feasibility since the scope of this service cannot be provided in whole by any other vendor.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 100,149.05

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 Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: 07/01/2020

Estimated Contract End Date: 06/30/2021

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

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Bulletin Reference Number 21-427DES-INFOS-B-14557

Requesting Agency/University Illinois Department of Employment Security

This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)

Items are Copyrighted or Patented and the Items are Only Available from the Holder

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 7/1/2019 6/30/2020 114,235.43 Teleserve IVR Support & Maintenance 4100114819 Sole Source

2 7/1/2018 6/30/2019 114,235.43 Teleserve IVR Support & Maintenance 4100101196 Sole Source

3 7/1/2017 6/30/2018 114,235.43 Teleserve IVR Support & Maintenance 4100001390 Sole Source

4 7/1/2016 6/30/2017 114,235.43 Teleserve IVR Support & Maintenance 17-C-13 Sole Source

5 7/1/2015 6/30/2016 114,235.43 Teleserve IVR Support & Maintenance 16-C-04 Sole Source

6 7/1/2014 6/30/2015 114,235.43 Teleserve IVR Support & Maintenance 15-C-05 Sole Source

7 7/1/2013 6/30/2014 114,235.43 Teleserve IVR Support & Maintenance FY14 Maint22 Sole Source

8 7/1/2012 6/30/2013 114,235.43 Teleserve IVR Support & Maintenance FY13 Maint22 Sole Source

9 7/1/2011 6/30/2012 114,235.43 Teleserve IVR Support & Maintenance CMS Purchased Sole Source

10 7/1/2010 6/30/2011 114,235.43 Teleserve IVR Support & Maintenance CMS Purchased Sole Source

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

Beginning 7/1/2008, CMS procured these services to support IBIS under Sole Source purchases.

Section VI - Business Rationale

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

Teleserve is IDES' telephone Claimant services which allows for individuals collecting Unemployment Insurance (UI) to certify for their bi-weekly benefits over the phone. IDES owns the AccessNet licenses, granted by purchase only through First Data. AccessNet is registered trademark of First Data (Trademarks.com S/N 75429046). It developed the original, custom application and database software and is the only licensed, authorized vendor to provide the support. Illinois Benefit Information System (IBIS)/Teleserve processes approximately 300,000 calls per week. It is one of the two ways that UI claimants certify as to their eligibility for continued benefits, the other being utilizing this on-line IBIS certification process. If Teleserve fails, thousands of claimants will not be paid benefits to which they are entitled. Consequently, there is a need for support and maintenance from this qualified vendor who custom-developed and owns the Teleserve Interactive Voice Response ((IVR): telephony, AccessNet, WinRIMS specific custom applications) software when IBIS was designed and implemented to ensure the Teleserve IVR software, IBIS, and applications continue to function properly with minimal downtime. The FY21 estimated cost may increase based on the vendor having developed new telephony technology which would increase the capacity of the system; IDES intended to implement with a new Statement of Work beginning July 1, 2020, but based on the COVID-19 pandemic, this discussion with the Agency has stalled.

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Bulletin Reference Number 21-427DES-INFOS-B-14557

Requesting Agency/University Illinois Department of Employment Security

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

All services being provided are for maintenance and support of:

-AccessNet: a trademarked system for providing payment processing via online databases which allows for UI claim benefits to be processed and for eligible claimants to be paid through full integration with IDES' customized IBIS application.

-WinRims: the client which determines the content type of the HTTP response from the destination computer.

-Interactive Voice Response (IVR): voice and touch-tone response integration allow for the delivery of up-to-date, real-time IBIS account information; available ports precisely calculate to ensure minimal UI benefits certification call time.

-Telephony: allows for the electronic transmittal of information between two, distant parties.

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?

First Data is the sole owner of the source code and provider for warranty, maintenance , and support for this software product. As developer of this application, under First Data's accessNet development platform, it is the only licensed vendor authorized to provide support and maintenance to the AccessNet or WinRIMS software; it is the sole owner of the Teleserve AccessNet or WinRIMS software, and there is no other company who could offer support for the licenses which IDES owns. For IDES to utilize another vendor, brand new software and application would be required.

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:

First Data developed the original application and database using its trademarked AccessNet development platform. It is the sole owner of AccessNet and WinRIMs software. First Data is the only licensed vendor authorized to service its AccessNet -based applications and provide support. Its employees are versed in telephony, AccessNet, and IDES' specific custom applications. There is no other vendor who would be able to provide modifications to the software.

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?

First Data is the sole owner of AccessNet. First Data does not authorize any other vendor to service its AccessNet-based applications.

Accordingly, there is no other company that can provide support, maintenance, or needed modifications to the AccessNet application.

Based on the trademark, legally no other vendor can provide these services with the existing systems. The cost and time incurred by soliciting other vendors would be a great detriment to the State of Illinois considering an entirely new, currently non-existent process would need to be created through a Request for Proposal since the specifications of an RFP would offer tremendous unknowns considering the proprietary and unique nature of these services offered by First Data. Due to these unique factors, First Data is also utilized by other states such as Michigan, Florida, Georgia, New Jersey, Arizona, and California due to the unavailability of these services by other vendors based on the AccessNet trademark. Research indicates while there are telephone, telecommunications, and Voice over Internet Protocol (VoIP) providers, none of these providers would be able to configure a telephony service with the Agency's IBIS due to First Data's legal and proprietary ownership of AccessNet and WinRIMS software, would be required. Other service providers would have to create an entirely new software system, and IBIS would cease to be utilized, thus causing for a requirement not only for a comparable Teleserve system, but also an an entirely new UI claimant benefits system.

6. Are there resellers or distributors?

Yes No N/A

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Bulletin Reference Number 21-427DES-INFOS-B-14557

Requesting Agency/University Illinois Department of Employment Security

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 current estimate of $100,149.05 is at a discounted cost of the yearly historic rate of $114,235.43. This procurement is necessary to continue support and maintenance on software which supports an IDES existing critical application to IBIS. The process of replacing custom applications would be costly and could not be accomplished quickly or easily and would require significant funding and staff resources. It would involve changes to business processes and methodologies: a complete redesign of the application; significant investments in software, IT hardware and infrastructure, and training; full-time commitment of staff resources to complete; and continued maintenance and support of the existing application during the conversion. In comparison, the cost of annual software maintenance is typically between 10% - 18% of license purchase cost. Given the State's current budgetary constraints, it is cost effective and in the best interest of the State to maintain existing functionality and application. The requested Price Quote cost is the same as in prior fiscal years - $114,235.43. The price is considered fair and reasonable as it has remained the same since FY14. Typically, on a year-to-year basis, the anticipate cost increase for such maintenance services based on new technology and inflation is an anticipated 10%;

experience has shown the acquisition of new licenses through a IFB or RFP could result in an expected 10%-18% increase since brand new software is often priced higher than updates of existing systems. With the continuation of usage of this already existing software, the financial impact on the State is diminished since updates are occurring, but the cost remains the same. Further, an alternate procurement would elevate the cost based on vendor labor hours required for development, testing, and implementation of a new service, which would also require training of IDES staff on new software by the vendor.

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

Yes No

8a. If yes, please provide details regarding future obligations and/or needs:

First Data is the only licensed vendor to provide specific support for the AccessNet WinRIMS software and its applications.

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?

Teleserve is a critical application to the Agency's unemployment compensation system (IBIS) that provides claimants 24 (hours) x 7 (days) automated telephone access to the benefit certification process and also to benefits-related information. Maintenance and support of this system is critical in preventing disruption or system downtime which would be unacceptable to the Agency and its customers and would have a significant adverse impact on field office staff (diverted Voice Response Unit callers, increased in-person traffic, manual entry of bi-weekly certifications) and the timely delivery of claimant payments (by debit card or direct deposit).

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

No.

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Bulletin Reference Number 21-427DES-INFOS-B-14557

Requesting Agency/University Illinois 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 5/13/2020

Printed Name Thomas Revane, CIO E-mail Address thomas.revane@illinois.gov

Phone Number 312-793-9130

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 thomas.d.chan@illinois.gov

Phone Number 312-793-2338 Date

Printed Name Thomas D. Chan, Acting Director

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 217-720-6771 Date May 15, 2020

Printed Name Kylie Carter E-mail Address kylie.carter@illinois.gov

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Bulletin Reference Number 21-427DES-INFOS-B-14557

Requesting Agency/University Illinois Department of Employment Security

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

-AccessNet: a trademarked system for providing payment processing via online databases which allows for UI claim benefits to be processed and for eligible claimants to be paid through full integration with IDES' customized IBIS application.

-WinRims: the client which determines the content type of the HTTP response from the destination computer.

-Interactive Voice Response (IVR): voice and touch-tone response integration allow for the delivery of up-to-date, real-time IBIS account information; available ports precisely calculate to ensure minimal UI benefits certification call time.

-Telephony: allows for the electronic transmittal of information between two, distant parties.

Accordingly, there is no other company that can provide support, maintenance, or needed modifications to the AccessNet application. Based on the trademark, legally no other vendor can provide these services with the existing systems. The cost and time incurred by soliciting other vendors would be a great detriment to the State of Illinois considering an entirely new, currently non-existent process would need to be created through a Request for Proposal since the specifications of an RFP would offer tremendous unknowns considering the proprietary and unique nature of these services offered by First Data. Due to these unique factors, First Data is also utilized by other states such as Michigan, Florida, Georgia, New Jersey, Arizona, and California due to the unavailability of these services by other vendors based on the AccessNet trademark. Research indicates while there are telephone, telecommunications, and Voice over Internet Protocol (VoIP) providers, none of these providers would be able to configure a telephony service with the Agency's IBIS due to First Data's legal and proprietary ownership of AccessNet and WinRIMS software, would be required. Other service providers would have to create an entirely new software system, and IBIS would cease to be utilized, thus causing for a requirement not only for a comparable Teleserve system, but also an an entirely new UI claimant benefits system.