Idemia 3 year SSJF.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 8

Bulletin Reference Number 23-350SOS-SOS35-B-32203

Requesting Agency/University Illinois Secretary of State

Sole Source Justification Form - Part I Section I - General Information

Department/Bureau/Section: Driver Services/Information Technology/Real ID

Need Identified Date: Mar 9, 2022 Supply/Service Need By Date: Aug 12, 2023

Project Title: Driver License Printing Sole Source 3 Year Term

Vendor: Idemia

Provide a description of the supplies or services required:

Printing of license, capturing of images, facial recognition capability, hardware, software, consumables delivery and inventory system, and additional cameras

Value: Estimated Value of Initial Term, this Change Order or Amendment: 26,140,000

Will this Sole Source amend a Professional or Artistic Services contract? Yes No

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Type: New Sole Economically Feasible Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Aug 12, 2023

Estimated Contract End Date: Aug 11, 2026

Number of Potential Renewals: 0

Length of Each Renewal in Months:

Total Value of All Renewals:

If a Term Contract, does the term, including renewals, exceed 12 months? Yes No

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

Time is of the essence when it comes to developing a new RFP for this solution. In order to bid and implement a fully upgrade systems with updates to policies, ILSOS estimates it would take at least 3 years. This three year agreement starting in August of 2023 allows for crossover should a new vendor be selected and a transition is necessary.

Section III - Funding Source Select the type of funding to be used (Check all that apply): State Appropriate Funds Federal Funds Other (Explain):

Section IV - Sole Source Justification

This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)

Critical Changes to the Existing Contract are Necessary and Best Accomplished by the Contract Holder

Are there secondary justification(s) for this sole source? Yes No

Version 7.01 Page 2 of 8

Bulletin Reference Number 23-350SOS-SOS35-B-32203

Requesting Agency/University Illinois Secretary of State

Section V - Purchase History

Has the Agency or University Purchased these supplies or services in the past? Yes No

Term Term From Term To Value Description Contract Number Type

1 06/02/2007 06/01/2010 13,280,236.72 Drivers License Issuing System and Printing 0514201050 Exemption

2 06/02/2010 09/01/2016 34,555,465.53 Drivers License Issuing System and Printing 0514201050 Exemption

3 08/12/2013 06/30/2020 38,292,249.69 Digitial Drivers License Issuing System, Facial Recognition, and Printing 13DS013010 RFP

4 07/01/2020 08/11/2023 24,337,223.63 Digitial Drivers License Issuing System, Facial Recognition, and Printing 13DS013010 Renewal

5 10/04/2022 08/11/2023 1,400,000 Required hardware and software upgrades 13DS013010 Amendment

If more than 10, or if other comments, explain:

Section VI - Business Rationale

Version 7.01 Page 3 of 8

Bulletin Reference Number 23-350SOS-SOS35-B-32203

Requesting Agency/University Illinois Secretary of State

1. Provide a detailed explanation of the need for the supplies or services:

Section 6-101 of the Illinois Vehicle Code requires all drivers on Illinois roadways to have a drivers license or permit. Section 2-101 grants the Secretary of State the authority to administer chapters 2-9 of the Vehicle Code, which includes Section 6-101:

Sec. 6-101. Drivers must have licenses or permits.

(a) No person, except those expressly exempted by Section 6-102, shall drive any motor vehicle upon a highway in this State unless such person has a valid license or permit, or a restricted driving permit, issued under the provisions of this Act.

Sec. 2-101. Administration vested in Secretary of State.

The Secretary of State is hereby vested with powers and duties and jurisdiction of administering Chapters 2, 3, 4, 5, 6, 7, 8 and 9 of The Illinois Vehicle Code.

Section 2 of the Illinois Identification Card Act (15 ILCS 335/2) provides:

Sec. 2. Administration and powers and duties of the Administrator.

(a) The Secretary of State is the Administrator of this Act, and he is charged with the duty of observing, administering and enforcing the provisions of this Act.

Section 4 of the Illinois Identification Act (15 ILCS 335/4) provides:

(a) The Secretary of State shall issue a standard Illinois Identification Card to any natural person who is a resident of the State of Illinois who applies for such card, or renewal thereof

(b) The Secretary of State shall issue a special Illinois Identification Card, which shall be known as an Illinois Person with a Disability Identification Card, to any natural person who is a resident of the State of Illinois, who is a person with a disability as defined in Section 4A of this Act, who applies for such card, or renewal thereof.

These duties cannot be carried out without a vendor issuing the driver’s licenses, driving permits, and identification cards.

Version 7.01 Page 4 of 8

Bulletin Reference Number 23-350SOS-SOS35-B-32203

Requesting Agency/University Illinois Secretary of State

2. Provide a list and describe in detail the specifications required to satisfy the need:

The driver’s license issuance process begins at a vendor-supplied image capture workstation where the applicant’s name and limited demographic information are entered, or the barcode of the applicant’s current license is scanned, and a photograph and signature of the applicant is captured. The captured image, signature and limited required demographic data are shared with the vendor system through the Secretary of State mainframe. The applicant then moves to a separate Secretary of State workstation to make application for an initial, renewal, corrected or duplicate driver’s license or instruction permit. Applicants for an initial driver’s license must provide documentation of their identity (name and date of birth), residence address and social security number. Renewal applicants need only provide their expiring driver’s license, while applicants for a corrected card, such as name or address change, must provide documentation of the change. Applicants for a duplicate card must submit a document proving their identity.

As a fraud prevention measure, an applicant’s social security number is verified through the social security online verification system before the applicant leaves the facility. Information from the application and documentation is entered into the Secretary of State’s own driver’s license processing system. At the end of the driver’s system process, the final data for the hard card is sent back to the vendor image capture workstation, where a temporary paper document is printed, and the image and signature, along with relevant customer demographic information, is uploaded to the vendor system, for additional processing and ultimately manufacture of the card.

The photo and signature captured by the vendor-supplied image capture workstation is stored in the vendor card imaging system. The vendor facial recognition system uses the applicant’s photograph to compare against approximately 54 million existing images on file in an effort to identify incidents of identity theft and other fraud. The most recent image, signature and demographic data for each applicant are also retained on the Secretary of State systems for direct access by Secretary of State personnel and law enforcement.

Following these initial steps an applicant may be required to take a vision exam, written exam and/or behind the wheel exam. The results of these exams are also entered and stored within the Secretary of State driver’s license processing system. If an applicant is determined to be eligible for a driver’s license, that applicant’s demographic information, photograph, and other related information is provided to the secure manufacturing facility of the vendor operating the card issuance system. The vendor then prints each card and mails it to the applicant. The process for issuing identification cards is similar to the process for issuing driver’s licenses, except that applicants for identification cards are not required to take vision exams, written exams or behind the wheel exams.

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

The accuracy and reliability of this process, from the printing of the cards, to the retention of information, to the use of the facial recognition system is of critical importance to SOS operations and to law enforcement agencies throughout Illinois, as well as federal law enforcement agencies and law enforcement and DMV agencies in other states. This extension would also accommodate something that has not happened in Illinois in the last 24 years – the election of a new Secretary of State. The requested three year extension of the current contract would allow the new Secretary time to become familiar with the overall operations of the office and, of particular relevance to this request, time to gain an in-depth understanding of the driver services department and the complex, interrelated operations that would have to be incorporated into or would have an impact on the terms of a RFP for a new DL/ID card issuance system. After acquiring this knowledge, this extension would give the new Secretary time to draft a RFP, post it, respond to inquiries about the RFP, review the proposals from vendors, select a new vendor and conduct any post-selection negotiations with the selected vendor, and allow for a seamless transition from a current vendor to a new vendor if the current vendor is not selected.

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

Due to the time constraints described in number 5 below, Idemia already has the ability to provide and operate the facial recognition system that compares a DL/ID applicant’s image or an image supplied by law enforcement to over 54 million stored images as a guard against fraud and identity theft, and to assist is identifying unknown individuals. Additionally, Idemia has already established and maintained the extensive security requirements for issuing DL/ID cards.

5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No

Version 7.01 Page 5 of 8

Bulletin Reference Number 23-350SOS-SOS35-B-32203

Requesting Agency/University Illinois Secretary of State

5a. If no, why weren't alternatives evaluated?

The RFP for such an operation is an extensive and complex document. A new RFP cannot simply be a copy of the last RFP with dates changed. Every operational and material requirement of the RFP must be researched and updated to ensure Illinois is receiving the best and most up-to-date products and services at a reasonable cost.

The timeframe for any RFP issuance and vendor selection process must contemplate the possible selection of a new company to operate the system. Thus, this timeframe must allow for a vendor selection sufficiently prior to the expiration of the current contract so that a seamless transition from a current vendor to a new vendor will be possible.

The COVID-19 pandemic had a significant, detrimental impact on SOS operations. SOS driver services facilities were closed due to the pandemic from March 17, 2020 to May 31, 2020. During this timeframe SOS back office operations and executive staff worked with essential employees only. When the SOS facilities reopened on June 1, 2020, they operated at reduced capacity to accommodate social distancing. The shutdown resulted in an extensive backlog of expired DL/ID cards when the facilities were reopened. Facilities operating at reduced capacity when they were reopened hampered the ability to reduce that backlog. Addressing this backlog has been and continues to be the priority of the same personnel from the driver services department, information technology department and executive office whose assistance would be necessary to issue a new RFP.

These circumstances have unavoidably interfered with the ability to issue a RFP for a new DL/ID card vendor in a timeframe that will allow for thoroughly researched requirements in the RFP, completion of proposals by the vendor community, due diligence vetting of proposals received, and a smooth transition from one vendor to another if a new vendor is chosen. Trying to rush these processes will inevitably lead to break downs in operations and compromised security.

Addressing the problems caused by a rushed RFP would result in increased fiscal and operational costs as SOS is required to develop workarounds and alternatives for disrupted services. This will have the effect of the State paying more money for worse services.

Moreover, any disruption in services will aggravate the existing backlog problem.

A rushed RFP issuance and vendor selection process may lead to the production of DL/ID cards that the law enforcement and business communities no longer consider to be reliable forms of identification. If the financial industry were to no longer be able to rely on the accuracy of SOS issued DL/ID cards there would be significant economic damage to the business community, impacting such things as opening bank accounts, applying for car loans and home mortgages, or applying for credit cards. Additionally, in preparing a new RFP and implementing a new DL/ID card issuance system it is essential that time be taken to ensure the final system for creating the new DL/ID cards, and the cards themselves, adhere to the strict federal requirements for REAL ID compliant credentials. As of May 2023 REAL ID compliant DL/ID cards will be required to fly on commercial airlines or to enter secure federal facilities.

The only viable way to ameliorate the economic impact and disruption that could be caused by issuing in haste a potentially defective RFP for such an important operation is to amend and extend the current contract with IDEMIA for an additional three year period.

6. Are there resellers or distributors?

Yes No N/A

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

This solicitation was competitively bid in 2013. Significant negotiations took place in regards to this extension to ensure ILSOS was getting fair and reasonable pricing.

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

Yes No

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

ILSOS will not be able to meet the statutory requirements listed in Question 1.

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Bulletin Reference Number 23-350SOS-SOS35-B-32203

Requesting Agency/University Illinois Secretary of State

10. Is there any additional information you would like to add to justify this sole source?

This extension would also accommodate something that has not happened in Illinois in the last 24 years – the election of a new Secretary of State. The requested three year extension of the current contract would allow the new Secretary time to become familiar with the overall operations of the office and, of particular relevance to this request, time to gain an in-depth understanding of the driver services department and the complex, interrelated operations that would have to be incorporated into or would have an impact on the terms of a RFP for a new DL/ID card issuance system. After acquiring this knowledge, this extension would give the new Secretary time to draft a RFP, post it, respond to inquiries about the RFP, review the proposals from vendors, select a new vendor and conduct any post-selection negotiations with the selected vendor, and allow for a seamless transition from a current vendor to a new vendor if the current vendor is not selected.

Version 7.01 Page 7 of 8

Bulletin Reference Number 23-350SOS-SOS35-B-32203

Requesting Agency/University Illinois Secretary of State

Section VII

Requesting Department Representative

Requesting Department Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

Date

Printed Name E-mail Address

Phone Number

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed)

E-mail Address

Phone Number Date

Printed Name

Agency Bureau/Division Head or University Purchasing Director and Not a Designee

SPO Approval and Signature Required

I have reviewed and understand the contents of this Sole Source Justification and agree with the State Agency or University determination.

I have reviewed and understand the contents of this Sole Source Justification and do not agree with the State Agency or University determination. As a result, the State Agency or University must explore other sourcing methods to satisfy their need.

State Purchasing Officer Signature Phone Number 217-782-7198 Date Sep 21, 2022

Printed Name Katherine Tople E-mail Address ktople@ilsos.gov

Version 7.01 Page 8 of 8

Bulletin Reference Number 23-350SOS-SOS35-B-32203

Requesting Agency/University Illinois Secretary of State

Sole Source Justification Form - Part II Section I - General Information

Project Title Driver License Printing Sole Source 3 Year Term

Vendor IDEMIA

Initial Date of Procurement Bulletin Posting Sep 21, 2022

Was a Sole Source hearing held per 30 ILCS 500/20-25?

Yes - Complete Section II and III below (Section II will only be visible when this option is selected)

No - Section II not required, go to Section III below Section III - CPO Approval and Signature Required

Based on my review, I authorize the Agency/University to proceed in accordance with the published Notice referenced above.

Based upon my review, I authorize the Agency/University to proceed with the following Changes.

Based on my review, the Agency/University is not authorized to proceed with this sole source as presented and my recommendation is that it be cancelled.

Other

CPO Signature CPO Phone 217-782-8892

Printed Name Amanda Trimmer Date

CPO E-mail atrimmer@ilsos.gov

Version 7.01 Page of Sole Source Justification Form - Part I Section I - General Information Will this Sole Source amend a Professional or Artistic Services contract?

If yes, what was the original contract value?

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Section II - Proposed Term If a Term Contract, does the term, including renewals, exceed 12 months?

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

Section III - Funding Source Select the type of funding to be used (Check all that apply):

Section IV - Sole Source Justification Are there secondary justification(s) for this sole source?

Section V - Purchase History Has the Agency or University Purchased these supplies or services in the past?

Term Term From Term To Value Description Contract Number Type Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

2. Provide a list and describe in detail the specifications required to satisfy the need:

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

5. Has the Agency or University considered alternative supplies or services to satisfy their need?

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

5a. If no, why weren't alternatives evaluated?

6. Are there resellers or distributors?

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

8a. If yes, please provide details regarding future obligations and/or needs:

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

10. Is there any additional information you would like to add to justify this sole source?

Section VII Requesting Department Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed) SPO Approval and Signature Required Sole Source Justification Form - Part II Section I - General Information Was a Sole Source hearing held per 30 ILCS 500/20-25?

Section II - Sole Source Hearing Details The State posted to the Illinois Procurement Bulletin a description of the State's need, the justification for the sole source decision, and information regarding the opportunity to submit comments and testify at a public hearing. Notice of the hearing was also posted outside of the hearing room 48 hours prior to the hearing.

The public hearing was conducted for the purpose of receiving testimony regarding the sole source determination. The Hearing Officer recommends the following:

The following relevant documents are attached:

Section III - CPO Approval and Signature Required 9.0.0.2.20101008.1.734229 atrimmer@ilsos.gov

Sec. 6-101. Drivers must have licenses or permits.

(a) No person, except those expressly exempted by Section 6-102, shall drive any motor vehicle upon a highway in this State unless such person has a valid license or permit, or a restricted driving permit, issued under the provisions of this Act.

Sec. 2-101. Administration vested in Secretary of State.

The Secretary of State is hereby vested with powers and duties and jurisdiction of administering Chapters 2, 3, 4, 5, 6, 7, 8 and 9 of The Illinois Vehicle Code.

Section 2 of the Illinois Identification Card Act (15 ILCS 335/2) provides:

Sec. 2. Administration and powers and duties of the Administrator.

(a) The Secretary of State is the Administrator of this Act, and he is charged with the duty of observing, administering and enforcing the provisions of this Act.

Section 4 of the Illinois Identification Act (15 ILCS 335/4) provides:

(a) The Secretary of State shall issue a standard Illinois Identification Card to any natural person who is a resident of the State of Illinois who applies for such card, or renewal thereof

(b) The Secretary of State shall issue a special Illinois Identification Card, which shall be known as an Illinois Person with a Disability Identification Card, to any natural person who is a resident of the State of Illinois, who is a person with a disability as defined in Section 4A of this Act, who applies for such card, or renewal thereof.

These duties cannot be carried out without a vendor issuing the driver’s licenses, driving permits, and identification cards.

Q2Answer: The driver’s license issuance process begins at a vendor-supplied image capture workstation where the applicant’s name and limited demographic information are entered, or the barcode of the applicant’s current license is scanned, and a photograph and signature of the applicant is captured. The captured image, signature and limited required demographic data are shared with the vendor system through the Secretary of State mainframe. The applicant then moves to a separate Secretary of State workstation to make application for an initial, renewal, corrected or duplicate driver’s license or instruction permit. Applicants for an initial driver’s license must provide documentation of their identity (name and date of birth), residence address and social security number. Renewal applicants need only provide their expiring driver’s license, while applicants for a corrected card, such as name or address change, must provide documentation of the change. Applicants for a duplicate card must submit a document proving their identity.

As a fraud prevention measure, an applicant’s social security number is verified through the social security online verification system before the applicant leaves the facility. Information from the application and documentation is entered into the Secretary of State’s own driver’s license processing system. At the end of the driver’s system process, the final data for the hard card is sent back to the vendor image capture workstation, where a temporary paper document is printed, and the image and signature, along with relevant customer demographic information, is uploaded to the vendor system, for additional processing and ultimately manufacture of the card.

The photo and signature captured by the vendor-supplied image capture workstation is stored in the vendor card imaging system. The vendor facial recognition system uses the applicant’s photograph to compare against approximately 54 million existing images on file in an effort to identify incidents of identity theft and other fraud. The most recent image, signature and demographic data for each applicant are also retained on the Secretary of State systems for direct access by Secretary of State personnel and law enforcement.

Following these initial steps an applicant may be required to take a vision exam, written exam and/or behind the wheel exam. The results of these exams are also entered and stored within the Secretary of State driver’s license processing system. If an applicant is determined to be eligible for a driver’s license, that applicant’s demographic information, photograph, and other related information is provided to the secure manufacturing facility of the vendor operating the card issuance system. The vendor then prints each card and mails it to the applicant. The process for issuing identification cards is similar to the process for issuing driver’s licenses, except that applicants for identification cards are not required to take vision exams, written exams or behind the wheel exams.

The timeframe for any RFP issuance and vendor selection process must contemplate the possible selection of a new company to operate the system. Thus, this timeframe must allow for a vendor selection sufficiently prior to the expiration of the current contract so that a seamless transition from a current vendor to a new vendor will be possible.

The COVID-19 pandemic had a significant, detrimental impact on SOS operations. SOS driver services facilities were closed due to the pandemic from March 17, 2020 to May 31, 2020. During this timeframe SOS back office operations and executive staff worked with essential employees only. When the SOS facilities reopened on June 1, 2020, they operated at reduced capacity to accommodate social distancing. The shutdown resulted in an extensive backlog of expired DL/ID cards when the facilities were reopened. Facilities operating at reduced capacity when they were reopened hampered the ability to reduce that backlog. Addressing this backlog has been and continues to be the priority of the same personnel from the driver services department, information technology department and executive office whose assistance would be necessary to issue a new RFP.

These circumstances have unavoidably interfered with the ability to issue a RFP for a new DL/ID card vendor in a timeframe that will allow for thoroughly researched requirements in the RFP, completion of proposals by the vendor community, due diligence vetting of proposals received, and a smooth transition from one vendor to another if a new vendor is chosen. Trying to rush these processes will inevitably lead to break downs in operations and compromised security.

Addressing the problems caused by a rushed RFP would result in increased fiscal and operational costs as SOS is required to develop workarounds and alternatives for disrupted services. This will have the effect of the State paying more money for worse services. Moreover, any disruption in services will aggravate the existing backlog problem.

A rushed RFP issuance and vendor selection process may lead to the production of DL/ID cards that the law enforcement and business communities no longer consider to be reliable forms of identification. If the financial industry were to no longer be able to rely on the accuracy of SOS issued DL/ID cards there would be significant economic damage to the business community, impacting such things as opening bank accounts, applying for car loans and home mortgages, or applying for credit cards. Additionally, in preparing a new RFP and implementing a new DL/ID card issuance system it is essential that time be taken to ensure the final system for creating the new DL/ID cards, and the cards themselves, adhere to the strict federal requirements for REAL ID compliant credentials. As of May 2023 REAL ID compliant DL/ID cards will be required to fly on commercial airlines or to enter secure federal facilities.

The only viable way to ameliorate the economic impact and disruption that could be caused by issuing in haste a potentially defective RFP for such an important operation is to amend and extend the current contract with IDEMIA for an additional three year period.