HFS B53041 Change Order Notice - Solventum.pdf

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Change Order Notice Chief Procurement Office for General Services Change Order Notice V.25.1 Page of Notice of renegotiated contracts and change orders that increase the cost of a contract by more than $25,000 or the time of completion by a total of 180 days or more shall be posted on the Bulletin/BidBuy for 14 days.

This Change Order Notice provides detail as to why the change order is needed and, pursuant to Section 33E-9 of the Criminal Code, that the circumstances said to necessitate the change in performance were not reasonably foreseeable at the time the contract was signed or the change is germane to the original contract as signed. Change orders are defined by Section 1-15.12 of the Procurement Code and Section 1.2067 of the CPO-GS' Administrative Rules.

Detailed explanation for this change order:

11.0.0.20130303.1.892433.887364

This change order is being requested to modify the existing sole source contract with Solventum, Inc. to support the Department's transition from the current platform to Solventum's cloud-based environment for the All Patient Refined Diagnosis Related Group (APR-DRG) and Enhanced Ambulatory Patient Group (EAPG) software systems. The change order adds cloud-based products and related services necessary to maintain the Department's hospital inpatient and outpatient reimbursement methodologies, claims processing functions, and analytical capabilities. The change order also updates the contract value to reflect the current licensing and support costs associated with the cloud-based solution and additional software products.The APR-DRG and EAPG systems are integral to the Department's hospital reimbursement operations and are required under 305 ILCS 5/14-12. HFS utilizes these systems to process and price hospital claims, administer hospital-directed payment programs, and ensure consistency in reimbursement methodologies across fee-for-service and managed care programs. New Products Added - Adds a new GPCS (cloud-based) product suite, including:

• GPCS APR DRG Grouper

• GPCS APR DRG Grouper with IL Medicaid Reimbursement

• GPCS CRG Clinical Risk Grouper

• GPCS ENAPG Grouper

• GPCS ENAPG IL Medicaid Grouper & Reimbursement

• GPCS Outpatient Payment Calculation Toolkit

• GPCS PFP Grouper

• GPCS PPC Grouper

• GPCS PPR Grouper

• Three Development Support Fee (DSF) line items

This change order does not alter the Department's underlying business need for the software; rather, it expands the existing scope and remains germane to the original procurement by incorporating additional cloud-based products, support services, and licensing necessary to support the Department's transition to Solventum's cloud-based environment and maintain compliance with State requirements. Failure to approve this change order would adversely impact the Department's ability to process hospital claims, administer reimbursement programs, and access the proprietary software and services required to support hospital payment operations.

This change order increases the contract value by $2,476,761.00. However, the contract remains a zero-cost contract to the State. The increase reflects the value of the software licenses, cloud-based products, support services, and related deliverables being provided under the agreement and does not represent an expenditure of State funds. The contract value is reported for procurement and contractual purposes only