Hearing Officer Sole Source Determination 24-426DOC-SOURC-B-45317.pdf

TO: Ellen H. Daley, Chief Procurement Officer for General Services

FROM: Ellen Morris, Sole Source Hearing Officer

DATE: November 20, 2024

SUBJECT: November 13, 2024 Sole Source Hearing Recommendation

On November 13, 2024, I presided as hearing officer over a hearing to consider comments regarding the following agency determination to contract on a sole economically feasible source basis:

Agency: Illinois Department of Corrections (“DOC”)

Vendor: US Mobile Kitchens

Brief Description: Dietary Kitchen Trailers

Procurement Bulletin Reference: 24-426DOC-SOURC-B-45317

Value: $5,409,840.00

Factual Background:

DOC has had a contract with US Mobile Kitchens since December 4, 2023, which resulted from an emergency procurement with two extensions. The latest extension set to expire on December

3, 2024.

On October 30, 2024, DOC submitted a Sole Source Justification Form (“SSJF”) seeking approval for a two-year contract with US Mobile Kitchens to provide two forty-eight-foot mobile kitchen units at Stateville Northern Reception Center.

In its SSJF, DOC indicates that the temporary kitchens are needed for another two to three years while the Capital Development Board (“CDB”) finishes rehabilitating the permanent kitchens and the two-year sole source covers the time for CDB to renovate the kitchens. DOC states that without the mobile kitchens, the facility is unable to feed individuals in custody or staff.

DOC states that the purchase is economically only available from a single source primarily because of compatibility. DOC states that CDB started a renovation of the dietary kitchens at Stateville Northern Reception Center and that the staff are temporarily using the mobile dietary kitchens to feed individuals in custody and staff while the project is being completed.

DOC states it already spent significant funds for the infrastructure and placement of the two mobile kitchen units and that it is not economically feasible to switch vendors now as the units are already on the ground and set. Using another vendor would mean being without mobile kitchen units while a new vendor retrofits the two units to the facility’s needs. The agency would be out money by providing additional infrastructure investment for a different mobile kitchen unit.

DOC further states that availability of the units was scarce but then the units were configured by DOC, CDB, and the vendor to meet the special circumstances required to serve a correctional setting, such as security and safety requirements. Also, that the units are in almost continual use to properly serve the individuals in custody and staff was another consideration in setting up the infrastructure and the units.

DOC states that the mobile kitchens must be custom made to fit the application, requiring extensive lead time. Also, DOC states that failure to establish this contact would leave the State unable to provide mandated nourishment to individuals in custody.

Tom Brown Jr. of Rental Solutions and Events LLC (“Rental Solutions”) requested a hearing on this proposed sole economically feasible source contract. In its request for hearing, Rental Solutions states that it believes if infrastructure is already in place, then it would be easier in the process of continued operations. Rental Solutions states that it is informing the agency there were other options available at cheaper rates that would have met the desired timeline. Rental Solutions states that it has the exact or equal trailers that would meet specifications with a quick turnaround that would probably be at a rate that would have saved money in the end. Rental Solutions states that there were other companies in the market that had equal or better options.

Summary of Hearing:

The hearing was held via Webex on November 14, 2024. The notice of intent to contract on a sole economically feasible source basis as well as the SSJF for this procurement were incorporated into the record. The following summary incorporates and paraphrases the testimony as follows:

Tom Brown and Ed Asher commented on behalf of Rental Solutions. Rental Solutions stated that they responded to the sole source notice and their purpose is to let everyone know that other companies are out there that provide similar or equivalent or even exceed requirements and can meet the timelines.

Rental Solutions stated that the sole source vendor’s pricing is above market, but they understand it was an emergency so there are things they may not be aware of. Rental Solutions understands that units are already on site and the cost to move them, reinstall, utilities, redo permitting, are all factors that must be considered. Rental Solutions stated their purpose is to let everyone know other companies can provide the services.

Jared Brunk, Chief Administrative Officer, commented on behalf of DOC. Mr. Brunk stated that DOC reached out to the CDB for the impact of the remodel and the estimated timeline. The remodel to get DOC off the rental trailers is funded and is moving forward with CDB, so the kitchen rentals will not be a long-term lease. DOC asked CDB for their input regarding the mobile units and CDB recommended to go with US Mobile Kitchens because of their DOC experience and because US Mobile Kitchens performed another similar project at a medium security facility in Pinckneyville. CDB told DOC it would not be the State’s best interest to switch vendors. Mr. Brunk stated that switching vendors would lead to an interruption to dietary operations at the facility which has up to 1800 individuals. Mr. Brunk also stated there are concerns regarding utilities, as CDB invested around one million dollars for the utilities to be ran and set up for the US Mobile Kitchens design. It is their belief that it is in best interest of the State to move forward with US Mobile Kitchens.

Mr. Brunk further stated that this project consists of twelve trailers where meals are prepared. He stated that DOC is constitutionally required to provide three hot and nutritional meals a day. Due to the size of facility, this is a 24-7, 365 day per year operation. If the kitchen trailers went away, DOC would not be able to adequately prepare and provide food. Mr. Brunk stated there is pending litigation regarding the structure and that the courts and Attorney General ask for status updates regarding the CDB project and temporary trailers to ensure they are not using the dietary space currently being renovated.

Applicable Statutes and Rules

Sole-source procurements must be scrutinized because they tend to contravene the core purpose of the Illinois Procurement Code (“the Code”), namely, “that the principles of competitive bidding and economical procurement practices shall be applicable to all purchases and contracts by or for any State agency.” 30 ILCS 500/1-5. The Code requires heightened transparency for sole source awards because they lack competition and can be abused relatively easily. See, generally, 30 ILCS 500/20-25.

The Code states that “contracts may be awarded without use of the specified method of source selection when there is only one economically feasible source for the item.” 30 ILCS 500/20-25(a). Additionally, the Code states that a “contract may be awarded as a sole source contract unless an interested party submits a written request for a public hearing at which the chief procurement officer and purchasing agency present written justification for the procurement method.” Id. Additionally, the Code states that “[a] sole source contract where a hearing was requested by an interested party may be awarded after the hearing is conducted with the approval of the chief procurement officer.” Id.

The Illinois Administrative Code further outlines the following:

A sole source procurement is permissible when a requirement is available from only a single supplier. A sole economically feasible source is permissible when only one supplier is deemed economically feasible. A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one vendor is authorized to provide that item.

44 ILL. ADMIN. CODE 1.2025(b).

Section 1.2025(c) provides that “[p]rior to authorizing the State agency to enter into a contract based on the . . . sole economically feasible source request, the CPO-GS shall offer a public hearing to be held and make a final determination as required by Section 20-25(a) of the Code.” 44 ILL. ADMIN. CODE

1.2025(c).

Analysis and Recommendation

At issue here is whether any vendor other than US Mobile Kitchens can provide the necessary services to meet DOC’s need for mobile kitchen units, and whether any other vendor can do so in an economically feasible manner.

DOC has demonstrated that it requires mobile kitchen units at the Stateville Northern Reception Center.

DOC stated that the temporary kitchens are required for another two to three years while the CDB completes the rehabilitation of the permanent kitchens.

Rental Solutions stated that other vendors were available that had equal or better options that could meet DOC’s needs. Rental Solutions stated, though, that it understands that if the infrastructure is already in place with the mobile units, then it would be easier to continue those operations.

DOC has demonstrated that continuing to use US Mobile Kitchens is the only economically feasible sole to secure the supplies and services. DOC stated that DOC is constitutionally required to provide three hot and nutritional meals a day and that the facility houses up to 1800 individuals. DOC further stated that the facility is a 24-7, 365 day per year operation. DOC stated that if they were to switch vendors, there would be an interruption to the dietary operations at the facility. DOC stated it already spent significant funds for the infrastructure and placement of the two mobile kitchen units and that using a different vendor would require additional infrastructure investment for a different mobile kitchen unit. DOC stated that the current mobile kitchen units were custom fit. DOC stated that it is not economically feasible to switch vendors now as the units are already on the ground and set. Accordingly, DOC’s request to execute a sole economically feasible source contract with US Mobile Kitchens for those supplies/services is in the best interests of the State and should be granted.

Based on the foregoing, I find the justification for this sole economically feasible source to be sufficient, and I recommend the procurement be approved.

Ellen C. Morris 11/20/2024