IBM ELA SSJF Part 2 FY27.pdf

This change order notice amends the current Enterprise License Agreement (ELA) between the Illinois Secretary of State (ILSOS) and IBM, valued at $444,735.46 for the fiscal year 2027 period. The amendment renews existing software licenses and activates additional licensed features to support planned growth across ILSOS's mainframe and distributed computing environment. The covered products include IBM Developer for z/OS (10 authorized user subscriptions), Expertise Connect Services for DataPower and DataCap (1 each), IBM z/OS Connect EE V3 (2 licenses), DirMaint Facility Feature (88 licenses), and RACF Security Server for zVM (88 licenses). The contract term extends from June 30, 2026 through June 30, 2027. A public hearing on the sole-source justification was scheduled for July 29, 2026 at 2:00 p.m. in Springfield, with interested parties able to submit written comments or request to testify by July 27, 2026 at 12:00 p.m. The State Purchasing Officer approved the change order on July 15, 2026.

The total change order amount of $444,735.46 is due on June 30, 2026 and must comply with the State Prompt Payment Act (30 ILCS 540), with the amount excluding applicable duties, fees, and taxes for which the state is responsible. ILSOS justified the sole-source procurement based on IBM's exclusive ownership of the specified products and its role as the sole provider of bundled ELA packages offering volume discounts. IBM does not authorize resellers for mainframe products; third-party resellers must apply markups exceeding IBM's direct pricing. The agency asserts that transitioning to alternative platforms would require several years and millions of dollars in investment, making continued reliance on the IBM ELA the most cost-effective option. The bundled approach, which has been economical over the past 40 years, incorporates mainframe software components, distributed software, and new licensing necessary to achieve volume discounts. ILSOS supports over 50 mission-critical systems serving state staff and millions of Illinois citizens in areas including life safety, health, driver and vehicle services, and business services.