part I and part II DHS B-30224ehd.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 22-444DHS-DEC44-B-30224

Requesting Agency/University Department of Human Services

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

Department/Bureau/Section: Division of Early Childhood

Need Identified Date: Feb 1, 2022 Supply/Service Need By Date: Jul 1, 2022

Project Title: Addressing Lead in Water at Child Care Facilities in Illinois

Vendor: Elevate Energy

Provide a description of the supplies or services required:

DHS requires a single entity to: Conduct outreach to child care programs where there are indicators of high levels of lead in their water; Create lead mitigation management plans for individual child care programs; Identify plumbers with appropriate specialized certification to perform lead mitigation activities; Facilitate connections between these plumbing contractors and and child care program sites; Perform quality assurance on remediation activities; and, Perform follow-up lead testing to verify mitigation was successful.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 2,684,000

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 Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Jul 1, 2022

Estimated Contract End Date: Jun 30, 2023

Number of Potential Renewals:

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

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)

Compatibility of Equipment, Accessories, Replacement Parts or Service

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

Section V - Purchase History

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

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Bulletin Reference Number 22-444DHS-DEC44-B-30224

Requesting Agency/University Department of Human Services

Section VI - Business Rationale

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

Child care facilities that operate out of buildings constructed on or before January 1, 2000, are mandated to test all sources of water used for drinking or cooking in child care operations under the Illinois Public Act 99-0922. There are approximately 9,350 licensed child care facilities in Illinois. Since October 2021, 2,710 child care providers have tested their water for lead with 803 providers finding lead levels at or above 2.01ppb, requiring lead mitigation. Of the 803 child care facilities exceeding the 2.01 lead level limit, approximately 40 have found lead levels at or above 15 ppb, requiring immediate lead mitigation. It is anticipated that an additional 5,000 providers still need to test for lead, and it is expected that the total number of providers requiring lead mitigation will reach 2,400. DHS wishes to target child care providers with lead in water results that exceed the state action level of 2.01ppb. Child care providers in designated environmental justice communities and with very high lead levels (10 ppb or greater) will be prioritized for program participation. Due to staffing shortages, DHS lacks the ability to coordinate all aspects required to fully mitigate lead in these locations, which includes identifying the child care programs to coordinating with qualified plumbers. The proposed term would be July 1, 2022 to June 30, 2023.

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

The Agency needs a single provider to perform all aspects of mitigation outlined in the plan. They include:

outreach;

creation of mitigation management plans;

identification of plumbers with appropriate specialized certification to perform lead mitigation activities, facilitating connections between plumbing contractor and and child care sites, remediation assessments;

remediation activities;

and follow-up lead testing.

The lead remediation activities would be performed by licensed plumbing subcontractors and would include lead service line replacements and internal plumbing repairs at child care facilities.

The total estimated cost of the lead remediation services is $2,684,000 with a breakdown as follows:

internal plumbing repairs/filters at child care facilities cost $400,000 for 200 units at $2,000 per unit;

lead service line replacement cost $2,040,000 for 170 units at $12,000 per unit;

administrative costs $244,000 to identify child care providers, identify and evaluate plumbers and compare bids among qualified vendors, provide oversight of mitigation activities, and subsequent scheduling and testing for quality assurance.

Elevate would administer the program by drafting Memorandums Of Understanding (MOUs) with the child care providers to oversee licensed plumbing contractors conducting the lead mitigation in water. Elevate will provide oversight, coordination, and outreach services and not conduct lead remediation.

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Bulletin Reference Number 22-444DHS-DEC44-B-30224

Requesting Agency/University Department of Human Services

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?

There is no other organization in Illinois that he specialized experience working with child care facilities with lead in drinking water.

DHS has identified an urgent need to remove lead hazards from child care settings because of the presence of lead in drinking water of licensed child care facilities, which has created dangerous conditions for children and the child care workforce in Illinois. Facilities that operate out of buildings constructed on or before January 1, 2000, are mandated to test all sources of water used for drinking or cooking in child care operations under the Illinois Public Act 99-0922. Providers who find lead in their drinking water at or above 2.01 parts per billion (ppb) are required to mitigate at those sources. Lead levels over 15 ppb have been identified throughout the state and more high lead levels are anticipated. It was common practice to install lead service lines and leaded plumbing in homes until 1986, when the Safe Drinking Water Act banned this practice. There are approximately 9,350 licensed child care facilities throughout Illinois.

Many of these facilities were built on or before January 1, 2000, and are mandated to test their water for lead. The immediate procurement of a vendor to remediate lead from child care settings will promote public safety and close the gap on compliance with PL 99-0922. Elevate has existing relationships with plumbing subcontractors that offer specialized services in lead water remediation, experience conducting outreach with the child care facilities identified as needing lead remediation for child safety, and project management.

Since its earliest iteration as a community based advocate in 2000, Elevate Energy has been partnering with the US Department of Energy and the Environmental Defense Fund (EDF) to bring clean resources including water to some of the less fortunate neighborhoods in the Chicago region. They partnered with EDF in 2019, who collaborated with local partners to conduct water testing and remediation in 11 child care facilities serving over 1,000 children primarily from low-income families in Illinois, Michigan, Mississippi, and Ohio (see https://www.edf.org/health/tackling-lead-water-child-care-facilities). The pilot study found that more than 3 out of 4 water samples had lead levels below 1 ppb. However, 7 of 11 child care facilities had at least one drinking water fixture sample above our action level. In 2021, the USEPA awarded Elevate Energy a grant of Chicago-based Elevate Energy also was awarded a $2 million grant to help Chicago child care facilities understand the impacts of lead exposure, conduct testing and understand the importance of validation testing, and implement mitigation actions.

Elevate Energy (Elevate) is the administrator of the LeadCare Illinois program. LeadCare Illinois empowers childcare providers to address water safety by providing free lead in water testing and education. LeadCare Illinois is administered by Elevate Energy (Elevate) in partnership with the Illinois Department of Public Health and the Illinois Environmental Protection Agency. Funding is provided in whole or in part by the Illinois Department of Public Health.

Elevate Energy's 2021Grant gave them the resources, contacts and exposure within the greater Chicago childcare program to reliably reach eligible providers who are the target of these services. Their partnership with IDPH and IEPA is a testament to their presence and activities serving Illinois Childcare Programs. DHS does not have the administrative resources to coordinate multiple vendors who may be capable of providing these disparate services. Elevate Energy is the only entity positioned with the credibility and contacts to offer end to end lead mitigation services in the Greater Chicago region. LeadCare Illinois is administered by Elevate Energy (Elevate) in partnership with the Illinois Department of Public Health and the Illinois Environmental Protection Agency. Funding is provided in whole or in part by the Illinois Department of Public Health.

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:

DHS proposes to contract directly with Elevate who has long-standing experience in lead identification and mitigation with child care programs. Elevate proposes to provide lead mitigation to 200 licensed child care facilities over 15 months. Since 2021, Elevate has administered a grant program for IDPH and the Illinois Environmental Protection Agency (IEPA) called the LeadCare Illinois program, which provides free lead in water testing for child care facilities and lead in water training to child care providers. Elevate also subcontracts with Illinois Action for Children to facilitate with providers on program outreach and education. Elevate’s capacity and current role in child care lead remediation is unmatched. Elevate has the current organizational capacity to identify and mitigate sources of lead at up to 200 facilities with a total anticipated project cost of $2,684,000 This number assumes that 170 of these facilities will be connected to a lead service line that needs to be removed and replaced. Elevate would administer the program with the plumbing contractor and the child care provider for lead mitigation work that is not a major renovation. The contract activities directly benefit the providers, by stabilizing their businesses and providing lead safe environments for the children in their care. Elevate would directly pay licensed plumbing contractors for the work performed.

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

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Bulletin Reference Number 22-444DHS-DEC44-B-30224

Requesting Agency/University Department of Human Services

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

There are no other providers that offer the unique set of skills including: expertise in lead mitigation AND connections to child care programs already identified with high levels of lead in water.

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?

Elevate compares bids among qualified vendors to ensure DHS receives the best value for the lead mitigation work.

DHS does not have the expertise to replicate these services nor the staff to coordinate the work. Elevate is a not for profit company with a long track record of providing valuable services. DHS attempts to negotiate better pricing with Elevate have not been successful. DHS views the price as reasonable for the extensive services provided.

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?

The Federal funds we intend to use for this project have a hard obligation and liquidation requirement dates. A portion of the funds expire September, 30, 2023 and notification to the Federal Awarding Agency of planned use or return of funds is required by April 1, 2023. Testing and assessment data conducted over years funded by IDPH would need to be reproduced by a new vendor increasing delays to have the mitigation services performed at child care facilities.

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

Elevate is uniquely qualified to administer the “Addressing Lead in Water at Child Care Facilities in Illinois,” program because of Elevate’s impact with previous water safety initiatives in Illinois. In 2017, Elevate conducted a pilot project to investigate new approaches for lead in water testing and remediation in child care settings in Chicago, resulting in quality testing data and the remediation of two buildings. In 2019, Elevate partnered with Illinois Action for Children to help over 750 home-based child care providers in Chicago address lead in their drinking water through the Lead in Water Resource Program. Currently, Elevate is administering LeadCare Illinois supported by IDPH and IEPA which has included an extensive lead water testing campaign, training, and support to child care providers in Illinois. Through the program, Elevate subcontracts with Illinois Action for Children to facilitate with providers on program outreach and education. The proposed “Addressing Lead in Water at Child Care Facilities in Illinois,” program would bridge the gap from education and testing to mitigating the lead hazards in licensed child care facilities.

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Bulletin Reference Number 22-444DHS-DEC44-B-30224

Requesting Agency/University Department of Human Services

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 Apr 13, 2022

Printed Name Karen Yarbrough E-mail Address Karen.Yarbrough@Illinois.gov

Phone Number 773-590-9812

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 Jean.Sandstrom@Illinois.gov

Phone Number 217-557-9298 Date Jun 8, 2022

Printed Name Jean Sandstrom

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 217-622-4035 Date

Printed Name Dwayne Curry E-mail Address dwayne.curry@illinois.gov

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Bulletin Reference Number 22-444DHS-DEC44-B-30224

Requesting Agency/University Department of Human Services

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

Project Title Addressing Lead in Water at Child Care Facilities in Illinois

Vendor Elevate Energy

Initial Date of Procurement Bulletin Posting Jun 15, 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 217-558-2231

Printed Name Ellen H. Daley Date

CPO E-mail Ellen.H.Daley@illinois.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 Ellen.H.Daley@illinois.gov

outreach;

creation of mitigation management plans;

identification of plumbers with appropriate specialized certification to perform lead mitigation activities, facilitating connections between plumbing contractor and and child care sites, remediation assessments;

remediation activities;

and follow-up lead testing.

The lead remediation activities would be performed by licensed plumbing subcontractors and would include lead service line replacements and internal plumbing repairs at child care facilities.

The total estimated cost of the lead remediation services is $2,684,000 with a breakdown as follows:

internal plumbing repairs/filters at child care facilities cost $400,000 for 200 units at $2,000 per unit;

lead service line replacement cost $2,040,000 for 170 units at $12,000 per unit;

administrative costs $244,000 to identify child care providers, identify and evaluate plumbers and compare bids among qualified vendors, provide oversight of mitigation activities, and subsequent scheduling and testing for quality assurance.

Elevate would administer the program by drafting Memorandums Of Understanding (MOUs) with the child care providers to oversee licensed plumbing contractors conducting the lead mitigation in water. Elevate will provide oversight, coordination, and outreach services and not conduct lead remediation.

Q3Answer: There is no other organization in Illinois that he specialized experience working with child care facilities with lead in drinking water. DHS has identified an urgent need to remove lead hazards from child care settings because of the presence of lead in drinking water of licensed child care facilities, which has created dangerous conditions for children and the child care workforce in Illinois. Facilities that operate out of buildings constructed on or before January 1, 2000, are mandated to test all sources of water used for drinking or cooking in child care operations under the Illinois Public Act 99-0922. Providers who find lead in their drinking water at or above 2.01 parts per billion (ppb) are required to mitigate at those sources. Lead levels over 15 ppb have been identified throughout the state and more high lead levels are anticipated. It was common practice to install lead service lines and leaded plumbing in homes until 1986, when the Safe Drinking Water Act banned this practice. There are approximately 9,350 licensed child care facilities throughout Illinois. Many of these facilities were built on or before January 1, 2000, and are mandated to test their water for lead. The immediate procurement of a vendor to remediate lead from child care settings will promote public safety and close the gap on compliance with PL 99-0922. Elevate has existing relationships with plumbing subcontractors that offer specialized services in lead water remediation, experience conducting outreach with the child care facilities identified as needing lead remediation for child safety, and project management.

Since its earliest iteration as a community based advocate in 2000, Elevate Energy has been partnering with the US Department of Energy and the Environmental Defense Fund (EDF) to bring clean resources including water to some of the less fortunate neighborhoods in the Chicago region. They partnered with EDF in 2019, who collaborated with local partners to conduct water testing and remediation in 11 child care facilities serving over 1,000 children primarily from low-income families in Illinois, Michigan, Mississippi, and Ohio (see https://www.edf.org/health/tackling-lead-water-child-care-facilities). The pilot study found that more than 3 out of 4 water samples had lead levels below 1 ppb. However, 7 of 11 child care facilities had at least one drinking water fixture sample above our action level. In 2021, the USEPA awarded Elevate Energy a grant of Chicago-based Elevate Energy also was awarded a $2 million grant to help Chicago child care facilities understand the impacts of lead exposure, conduct testing and understand the importance of validation testing, and implement mitigation actions.

Elevate Energy (Elevate) is the administrator of the LeadCare Illinois program. LeadCare Illinois empowers childcare providers to address water safety by providing free lead in water testing and education. LeadCare Illinois is administered by Elevate Energy (Elevate) in partnership with the Illinois Department of Public Health and the Illinois Environmental Protection Agency. Funding is provided in whole or in part by the Illinois Department of Public Health.

Elevate Energy's 2021Grant gave them the resources, contacts and exposure within the greater Chicago childcare program to reliably reach eligible providers who are the target of these services. Their partnership with IDPH and IEPA is a testament to their presence and activities serving Illinois Childcare Programs. DHS does not have the administrative resources to coordinate multiple vendors who may be capable of providing these disparate services. Elevate Energy is the only entity positioned with the credibility and contacts to offer end to end lead mitigation services in the Greater Chicago region. LeadCare Illinois is administered by Elevate Energy (Elevate) in partnership with the Illinois Department of Public Health and the Illinois Environmental Protection Agency. Funding is provided in whole or in part by the Illinois Department of Public Health.

DHS does not have the expertise to replicate these services nor the staff to coordinate the work. Elevate is a not for profit company with a long track record of providing valuable services. DHS attempts to negotiate better pricing with Elevate have not been successful. DHS views the price as reasonable for the extensive services provided.