Final Signed Sole Source Memo and Determination.docx

Sole-Source Memo

Sole-source determination [ORS 279B.075(2), and OAR 731-147-0040(d)] Fr: Joanne Robinson, ODOT Procurement and Contract Specialist

Authority to enter into a sole-source contract:

ORS 279A.050(3)(b) and

ORS 279B.075

Background:

ODOT currently has an on-call contract with Geostabilization International LLC (GSI) for landslide mitigation services which will expire in October of this year. Beginning with a Region 2 pilot in 2015 and expanding to a statewide services agreement in 2017, ODOT has continued to procure these services from GSI using the sole source procurement method.

Earlier this year, ODOT initiated another sole source procurement because the most recent GSI price agreement would soon be reaching its maximum allowable term. However, a member of ODOT’s Region 2 Maintenance and Operations team suspected there could be one or two other companies that could provide the services.

After significant research and discussions with potential contractors, ODOT came to the same conclusion that was reached in previous sole-source determinations: While other companies may be able to perform some of the same construction services as GSI, they are unable to provide the combination of in-house design services and 5-year warranty that are integral to the value the GSI price agreement provides to ODOT.

Please see the attached Sole Source Determination and Findings for additional information.

Determination and findings:

The findings required by statute and rule are attached to this memo.

Recommended action:

I recommend and request that you approve the attached Sole Source Determination and Findings and authorize me to proceed with publishing the required public notice.

Approved by:

Sole Source Determination and Findings

Warranted Geohazard Mitigation Services

1. General description:

The contract will be a statewide services agreement for on-call geostabilization services. Geostabilization International LLC (GSI) provides a complete service that includes: performing a site evaluation, providing an engineered solution with plans and an estimate, constructing the repair, and providing a 5 year warranty on all work performed.

Upon issuance of a work order, GSI will perform landslide stabilization and rockfall mitigation services by installing reinforcing elements into the soil and/or rock mass and performing additional related work (i.e. excavation, tree trimming, traffic control, etc.) Reinforcing elements include, but are not limited to, Self Drilling SupernailsTM faced with high strength galvanized mesh installed in a variety of patterns and orientations.

2. Summary of market research:

ODOT began utilizing GSI’s services as part of a pilot project back in 2015. Several work orders were issued, and ODOT was satisfied with the solutions provided by GSI. Subsequently, ODOT entered into a 6 year service agreement with GSI. Prior to entering into that agreement, ODOT performed substantial outreach to determine if there were any other companies that could provide an equivalent service, including internet searches, contacting other states, and advertising a public Request for Information. No other company was found.

Since execution of the current service agreement in October of 2017, ODOT has issued GSI 35 work orders and continues to find great value in having these services available and able to be performed very quickly and reliably.

Recently at least one other company approached Region 2 Maintenance and Operations staff expressing interest in being able to compete for this work. That sounded like good news, and ODOT had every intention of conducting a competitive solicitation. However, after lengthy research on and discussions with two potential competitors, it became clear that only GSI was able to offer the in-house design services and construction combined with the 5 year warranty that ODOT has found so valuable over the years. It has become very clear through project history that the coupling of design and construction services need to be the sole responsibility of a single entity due to the risk of this type of construction. The disconnection of design and construction could result in lengthy legal struggles when problems occur. GSI is the only company known to offer this service and to have the local presence and capability of the quick response required by ODOT.

3. The reasons for a sole-source:

· Other findings that support the conclusion that the goods or services are available from only one source:

Based on continued research and outreach to other potential sources for this work, ODOT has determined that GSI continues to be the only company that can provide these essential services as described in detail above.