part I and part II DHS B-31296ehd.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 23-444DHS-MIS44-B-31296

Requesting Agency/University Illinois Department of Human Services

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

Department/Bureau/Section: Department of Human Services/OCAPS

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

Project Title: Automated Medication Packaging Machine - Shapiro DC Pharmacy

Vendor: The Chudy Group/dba TCG Rx Pharmacy Workflow Solutions - Parata

Provide a description of the supplies or services required:

Purchase of an automated medication packaging machine with a five (5) year maintenance and repair service contract for the Shapiro Developmental Center Pharmacy. The price of the machine and maintenance plan is discounted when the repair and maintenance agreement is purchased at the same time.

Value: Not to Exceed Value of Initial Term, this Change Order or Amendment: 353,485.11

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: Sep 1, 2022

Estimated Contract End Date: Jun 30, 2027

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

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

Pricing on equipment is reduced when a 5 year maintenance and service agreement entered into at purchase. Specifically, Parata provides a $13,500 discount on the five (5) year repair and maintenance plans if purchased at the same time and the maintenance plan rate remains fixed for the five (5) year period if it is purchased now. If it is purchased later, there would be an annual rate increase. This equates to a minimum savings of $58,787.89 for the State if we purchase the equipment and maintenance together now.

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)

Items are Copyrighted or Patented and the Items are Only Available from the Holder. Patent # US 2017/0017775 A1

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

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Bulletin Reference Number 23-444DHS-MIS44-B-31296

Requesting Agency/University Illinois Department of Human Services

Another justification that this purchase is only available from a sole source is because it is:

Software License/Upgrade/Maintenance

Another justification that this purchase is only available from a sole source is because it is:

Compatibility of Equipment, Accessories, Replacement Parts or Service

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 Jun 17, 2010 Jun 17, 2010 2,440,121.96 Pharmacy Automation PSD3502643 IFB

2 Jun 25, 2015 Jun 25, 2015 221,143.14 Shapiro Pharmacy Pouch Repackaging 49X1050M40 Sole Source

3 Apr 8, 2019 Apr 8, 2019 709,474.02 Elgin/Murray (2) Auto Packaging Machines and maintenance MIS0001002 Sole Source

4 May 13, 2020 May 13, 2020 2,120,376.46 OCAPS RX Machines MIS00001037 Sole Source

5 Mar 3, 2022 Jun 30, 2022 710,770.22 22-OCAPS ATP Machines-Sole Source 4100154285 Sole Source

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

Section VI - Business Rationale

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

Purchasing updated automation will allow the Shapiro Developmental Center (Shapiro Center) Pharmacy to keep in line with all other pharmacies within the Department of Human Services (DHS) system and be able to obtain parts if necessary due to current not supported system. Workflow efficiencies will also improve with the use of the new machine. This is very important when staffing at the pharmacy has been difficult to maintain. Patient safety is enhanced with the use of these machines. Maintenance for the machines for five (5) years.

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Bulletin Reference Number 23-444DHS-MIS44-B-31296

Requesting Agency/University Illinois Department of Human Services

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

The Shapiro Center needs the following for an updated automation system to distribute medications:

1 ATP2 480 Wide 1 Automatic Spooler, 1 tabletop stand, 1 rolling stand and 1 case of acrylic spools 1 ATP2 Wide lower packaging unit for ATP 2 1 ATP Series Equipment Interface to pharmacy information system.

1 On site implementation and installation training package for ATP Series.

1 five year service agreement for ATP with Greater than 192 canister capacity.

1 five year service agreement for ATP Lower Packaging Unit.

1 HEPA Vacuum for ATP Cleaning 1 HEPA replacement filter 1 ATP workflow Unit - 2 bay workstation 1 Canister Calibration Kits including the AVF-1 2 Universal Lighted Trays 1 shipping expenses.

1 Canister Calibration Kit 1 Canister Direct Fill Vial Counter

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?

DHS purchased an automated pharmacy operations system in 2010. This purchase was made through a competitive bidding process.

The FastPak EXP machines were an integral part of the automated pharmacy system (RX Works), which is a proprietary system. The FastPak EXP line was phased out and replaced with the ATP2 packaging machines which are currently supported. The ATP2 drug dispensing machine is the only machine that can be used with the automated pharmacy system in use by DHS Facilities.

The purchase of the additional ATP2 drug packaging machine will allow use of the existing software program, after hours cabinets, and drug trays currently being used by all DHS Facilities. It is important that DHS purchase the same equipment with the same operating system in order to maintain consistency and system compatibility.

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:

The ATP2 drug dispensing machine is the only machine that can be used with the automated pharmacy system in use by DHS. These machines are integrated into the current pharmacy inventory system which is RX Works. The ATP2 machines contain an inventory of medications, that inventory is maintained and replenished along with the rest of the pharmacy inventory. With a unit dosing machine other than the ATP2, that feature would not be available due to RX Works being a proprietary system, without that feature available;

pharmacists have to spend more time managing inventories.

Each ATP machine holds up to 420 different medications in bulk form dumped into canister, these medications quantities for each medication can be tracked internally by the ATP2 machine. This also keeps from having to handle and contaminate bulk medications to count and maintain inventories.

The DHS already has 10 of these exact machines in place at multiple DHS pharmacies. These machines are run by a proprietary software, DoIT has worked for months to adapt the State’s years old unit Dose Drug dispensing system to work with Parata’s ATP2 software so the machines can dispense medications into pouches per individual doses per resident by doctors prescription. If any other pouch packaging machine is purchased, it will have its own proprietary software and DoIT will have to spend months again to make the Unit Dose System work with it. Another reason to stay with the same machine is packaging supplies. All of the ATP machines within DHS all use the same packaging supplies and a bigger discount can be received on packaging supplies and DHS doesn’t have to maintain multiple supply types for different machines.

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

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Bulletin Reference Number 23-444DHS-MIS44-B-31296

Requesting Agency/University Illinois Department of Human Services

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

This machine is part of an automated pharmacy system that DHS has already purchased.

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 price is in-line with the cost of the similar machines purchased via the competitive bid in 2010 and also the pricing from the purchase in 2015, 2019, 2020 and 2022.

The 2015 purchase for the machine was $179,000 per machine (without additional features), the 2019 price per machine was $190,000, The purchase price per machine in 2020 is $190, 220, the purchase price per machine in 2021 is $190, 220, and the purchase price per machine in 2022 is $190,220.10. The increase is less than 6% over 7 years. Pricing was discounted 23% under MSRP.

In 2019, two (2) automated medication packaging machines and the maintenance for the machines were purchased for Elgin MHC and Murray DC Pharmacies. The cost of this purchase was $709,474.12. The 2020 purchase for Madden, Choate, Alton, Chester, Ludeman and McFarland had a minimal increase per machine, (mainly shipping costs), putting the 2020 purchase price at $2,121,674.46.

The proposed cost for the new machine for Shapiro DC Pharmacy is $353,485.11. Upon comparison to the Consortium pricing, the quote from Parata is 16% less for the machine costs and provides a $13,500 discount on the five (5) year repair and maintenance plans if purchased at the same time. Additionally, the maintenance plan rate is fixed for a five (5) year period if it is purchased now. If it is purchased later, there will be an annual rate increase. This equates to a minimum savings of $58,787.89 for the state if we purchase the equipment and maintenance from Parata now.

In addition, were DHS to replace the entire pharmacy automation system, the State would have to replace the current eleven (11) machines up and running and would lose the State's initial investment of 4 million dollars as listed above in Section V. along with any leftover packaging supplies currently stocked.

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?

If this Sole Source were not approved and DHS was required to purchase a different machine, DHS would need to buy an entirely new system to support the a machine that is not compatible with the current automation system being used. This would significantly increase the cost.

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

No.

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Bulletin Reference Number 23-444DHS-MIS44-B-31296

Requesting Agency/University Illinois 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 8/8/2022

Printed Name Julie D. Gillmore E-mail Address julie.d.gillmore@illinois.gov

Phone Number 217-557-0833

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 Aug 9, 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 217-720-6771 Date Aug 10, 2022

Printed Name Kylie D. Carter E-mail Address Kylie.Carter@Illinois.gov

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Bulletin Reference Number 23-444DHS-MIS44-B-31296

Requesting Agency/University Illinois Department of Human Services

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

Project Title Automated Medication Packaging Machine - Shapiro DC Pharmacy

Vendor The Chudy Group/dba TCG Rx Pharmacy Workflow Solutions - Parata

Initial Date of Procurement Bulletin Posting Aug 10, 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

1 ATP2 480 Wide 1 Automatic Spooler, 1 tabletop stand, 1 rolling stand and 1 case of acrylic spools 1 ATP2 Wide lower packaging unit for ATP 2 1 ATP Series Equipment Interface to pharmacy information system.

1 On site implementation and installation training package for ATP Series.

1 five year service agreement for ATP with Greater than 192 canister capacity.

1 five year service agreement for ATP Lower Packaging Unit.

1 HEPA Vacuum for ATP Cleaning 1 HEPA replacement filter 1 ATP workflow Unit - 2 bay workstation 1 Canister Calibration Kits including the AVF-1 2 Universal Lighted Trays 1 shipping expenses.

1 Canister Calibration Kit 1 Canister Direct Fill Vial Counter Q3Answer: DHS purchased an automated pharmacy operations system in 2010. This purchase was made through a competitive bidding process. The FastPak EXP machines were an integral part of the automated pharmacy system (RX Works), which is a proprietary system. The FastPak EXP line was phased out and replaced with the ATP2 packaging machines which are currently supported. The ATP2 drug dispensing machine is the only machine that can be used with the automated pharmacy system in use by DHS Facilities.

The purchase of the additional ATP2 drug packaging machine will allow use of the existing software program, after hours cabinets, and drug trays currently being used by all DHS Facilities. It is important that DHS purchase the same equipment with the same operating system in order to maintain consistency and system compatibility.

Q4Answer: The ATP2 drug dispensing machine is the only machine that can be used with the automated pharmacy system in use by DHS. These machines are integrated into the current pharmacy inventory system which is RX Works. The ATP2 machines contain an inventory of medications, that inventory is maintained and replenished along with the rest of the pharmacy inventory. With a unit dosing machine other than the ATP2, that feature would not be available due to RX Works being a proprietary system, without that feature available; pharmacists have to spend more time managing inventories.

Each ATP machine holds up to 420 different medications in bulk form dumped into canister, these medications quantities for each medication can be tracked internally by the ATP2 machine. This also keeps from having to handle and contaminate bulk medications to count and maintain inventories.

The DHS already has 10 of these exact machines in place at multiple DHS pharmacies. These machines are run by a proprietary software, DoIT has worked for months to adapt the State’s years old unit Dose Drug dispensing system to work with Parata’s ATP2 software so the machines can dispense medications into pouches per individual doses per resident by doctors prescription. If any other pouch packaging machine is purchased, it will have its own proprietary software and DoIT will have to spend months again to make the Unit Dose System work with it. Another reason to stay with the same machine is packaging supplies. All of the ATP machines within DHS all use the same packaging supplies and a bigger discount can be received on packaging supplies and DHS doesn’t have to maintain multiple supply types for different machines.

The 2015 purchase for the machine was $179,000 per machine (without additional features), the 2019 price per machine was $190,000, The purchase price per machine in 2020 is $190, 220, the purchase price per machine in 2021 is $190, 220, and the purchase price per machine in 2022 is $190,220.10. The increase is less than 6% over 7 years. Pricing was discounted 23% under MSRP.

In 2019, two (2) automated medication packaging machines and the maintenance for the machines were purchased for Elgin MHC and Murray DC Pharmacies. The cost of this purchase was $709,474.12. The 2020 purchase for Madden, Choate, Alton, Chester, Ludeman and McFarland had a minimal increase per machine, (mainly shipping costs), putting the 2020 purchase price at $2,121,674.46.

The proposed cost for the new machine for Shapiro DC Pharmacy is $353,485.11. Upon comparison to the Consortium pricing, the quote from Parata is 16% less for the machine costs and provides a $13,500 discount on the five (5) year repair and maintenance plans if purchased at the same time. Additionally, the maintenance plan rate is fixed for a five (5) year period if it is purchased now. If it is purchased later, there will be an annual rate increase. This equates to a minimum savings of $58,787.89 for the state if we purchase the equipment and maintenance from Parata now.

In addition, were DHS to replace the entire pharmacy automation system, the State would have to replace the current eleven (11) machines up and running and would lose the State's initial investment of 4 million dollars as listed above in Section V. along with any leftover packaging supplies currently stocked.