Hearing Officer Sole Source Determination 25-444DHS-CENOF-B-46989.pdf

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

FROM: Ellen C. Morris, Sole Source Hearing Officer

DATE: April 11, 2025

SUBJECT: April 9, 2025, Sole Source Hearing Officer Determination

On April 9, 2025, I presided as hearing officer to consider comments regarding the following agency determination to contract on a sole source basis:

Agency: Department of Human Service (“DHS”)

Vendor: Statewide Independent Living Council (“SILC”)

Brief Description: State Plan for Independent Living

Procurement Bulletin Reference: 25-444DHS-CENOF-B-46989

Value: $330,528.00

Factual Background:

On March 26, 2025, DHS published sole source justification forms (“SSJF”) seeking approval for a one-year contract with SILC to develop and implement the federally required and approved

State Plan for Independent Living.

DHS has had contracts with SILC since at least 2017, most being sole source procurements. The current contract with SILC began July 1, 2024, and ends June 30, 2025, and is a sole source procurement. SSJF at 2. The contract subject to the instant sole source hearing is estimated to begin July 1, 2025, and end June 30, 2026. SSJF at 1.

In its SSJF, DHS states that SILC receives federal funds pursuant to CFDA 93.3699. SSJF at 1. DHS states that the implementation of the State Plan for Independent Living is required to receive federal formula funding through CFDA 93.3699 from the Federal Department of Health and Human Services office of Administration for Community Living. SSJF at 1. DHS states that use of another procurement method will compromise receipt of federal funding. SSJF at 1.

Bobbie Thompson requested a hearing on this proposed sole source contract.

Summary of Hearing:

The hearing was held via Webex on April 9, 2025. The notice of intent to contract on a sole source basis as well as the SSJF for this procurement were incorporated into the record. The following summary incorporates and paraphrases the pertinent testimony as follows:

David Kuriniec with DHS’s Division of Rehabilitation Services stated that the Rehabilitation Act of 1973 mandates the Statewide Independent Living Council be created with the chief role to develop a state plan for independent living. Mr. Kuriniec stated this plan is a precondition to receiving federal funds under the Rehabilitation Act for centers for independent living. Mr. Kuriniec stated the sole source request is for one year and the Division of Rehabilitation Services has funded SILC since its creation in 1993 and this need comes up for DHS annually.

The hearing requester, Bobbie Thompson, did not attend the hearing and no written comments were received by the Hearing Officer.

Applicable Statutes and Rules

Sole-source procurements must be scrutinized because they tend to contravene the core purpose of the Procurement 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

The issue here is whether any vendor other than SILC can provide the services needed by DHS to develop and implement the federally required and approved State Plan for Independent Living.

Based on the SSJF and the comments provided at the hearing, DHS has demonstrated that no other vendor can provided the services DHS requires. DHS demonstrated that SILC is federally mandated to exist by the Rehabilitation Act of 1973 and is designated to develop and implement the federally required and approved State Plan for Independent Living. DHS has demonstrated that the State Plan for Independent Living is required for DHS to receive federal formula funding through CFDA 93.3699 from the Federal Department of Health and Human Services. DHS has demonstrated that use of another procurement method will compromise DHS’s receipt of the federal funding.

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

Ellen C. Morris, Hearing Officer