part I and part II DHS B-31891ehd.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 5

Bulletin Reference Number 23-444DHS-BUSSE-B-31891

Requesting Agency/University Illinois Department of Human Services

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

Department/Bureau/Section: Office of Business Services

Need Identified Date: Jul 1, 2022 Supply/Service Need By Date: Nov 30, 2022

Project Title: Criterion Sorter Equipment for OBS

Vendor: Bluecrest

Provide a description of the supplies or services required:

Replacement of existing 16+ year old Criterion Sorter front-end with Apex MLCOR front-end and add an additional 32 X-class pockets to increase sorting capabilities.

Value: Actual Value of Initial Term, this Change Order or Amendment: 291,400

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: October 1, 2022

Estimated Contract End Date: June 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

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:

Items are Copyrighted or Patented and the Items are Only Available from the Holder

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Bulletin Reference Number 23-444DHS-BUSSE-B-31891

Requesting Agency/University Illinois Department of Human Services

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 May 19, 2020 June 30, 2020 74,185 Postjet Printer for Indicia printing upgrade Small Purchase

2 July 1, 2020 Jun 30, 2021 85,284 Repair and Maintenance Services Sole Source

3 Nov 2, 2020 Jun 30, 2021 404,280 Purchase of new and upgrade of current equipment Sole Source

4 July 1, 2022 June 30, 2023 121,308 Repair and Maintenance Services 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:

This procurement will replace a 16 year-old Criterion front end with a refurbished Apex MLOCR front end and add 32 additional sort bins to the existing package on the Mail Processing Unit's (MPU) second pre-sort group. Early testing of new sort schemes on the Criterion with 32-bins, has shown a savings of $.06 per letter - expanding to 64 total bins and upgrading to a faster front end (the Apex MLOCR), will increase throughput capabilities of this pre-sort group by at least 30%. The new sort-schemes being tested are focused on the greater Chicago-area, allowing additional 5-digit sorts to occur both in that Metro-area (targeted for Pre-Sort Group 2) and downstate (Pre-Sort Group 1). Projected postage savings on a single-bin within this first sort scheme is approximately $48,000 annually.

Conservatively, the MPU expects a minimum of 5 zip codes to qualify at this savings rate, increasing the annual postage savings to $240,000 - if realized, the Return on Investment (ROI) would be 15 months.

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

1. Replace the 16 year-old Criterion front end with a refurbished Apex MLOCR front end - the refurbishment would replace all mechanical operations, cameras, and sensors - leaving only the actual frame and covers as "factory original" parts. Essentially, we would be purchasing a new piece of equipment, simply housed in the original packaging. This option will save the State over $31,000 off the cost of purchasing new, and reduce the project timeline from a minimum of 8 weeks to 4.

2. Purchase an additional 32-bins, doubling the number of bins attached to Pre-Sort Group 2. The additional bins will allow co-located zip codes to be assigned to a single-bin, increasing the likelihood of qualifying those zip codes at the 5-digit level. Each zip code that is qualified at the 5-digit level, saves the State postage - and as stated above, if we can qualify 5 more zip codes currently at a lesser level to the 5-digit, we can expect a savings of $240,000 in postages costs annually, with an ROI of 15 months.

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 Criterion front-end and existing bins are all proprietary equipment of Bluecrest - the Apex MLOCR upgrade and new bins are also proprietary to Bluecrest. No other vendor can provide the upgrades or additional bins sought in this purchase.

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Bulletin Reference Number 23-444DHS-BUSSE-B-31891

Requesting Agency/University Illinois Department of Human Services

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:

Because of the proprietary nature of the equipment sought in this procurement, only Bluecrest is able to fill the need. Pre-Sort Group 1 and Pre-Sort Group 2 are both proprietary equipment of Bluecrest. The Competitive Bid process could result in a different vendor bringing different proprietary equipment into the Mail Processing Unit. This result would then require a separate repair and maintenance agreement for the equipment of the new vendor, while still maintaining the repair and maintenance on the Pre-Sort Group 1 that we are not seeking to upgrade. Effectively, we would have two (2) different groups of pre-sort equipment from two (2) different vendors, requiring two (2) different operational methods and two (2) different repair and maintenance agreements; there would be no consistency of operation or compatibility of parts. Operational costs would be higher than using a single-source vendor, and efficiencies would go down as operators would have to learn differing pieces of equipment, and redundancy would not exist as a result.

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

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

As stated above, the Competitive Bid process could result in a different vendor bringing different proprietary equipment into the Mail Processing Unit. This result would then require a separate Repair & Maintenance agreement for the equipment of the new vendor, while still maintaining the repair and maintenance on the Pre-Sort Group 1 that we are not seeking to upgrade. Effectively, we would have two (2) different groups of pre-sort equipment from two (2) different vendors, requiring two (2) different operational methods and two (2) different repair and maintenance agreements; there would be no consistency of operation or compatibility of parts. Operational costs would be higher than using a single-source vendor, and efficiencies would go down as operators would have to learn differing pieces of equipment, and redundancy would not exist as a result.

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?

The option to purchase a refurbished Apex MLOCR front end will save the State over $31,000 - and will actually provide the State with a "new" piece of equipment. The refurbishment would replace all mechanical operations, cameras, and sensors - leaving only the actual frame and covers as "factory original" parts. Essentially, we would be purchasing a new piece of equipment, simply housed in the original packaging.

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

Yes No

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

Ongoing repair and maintenance agreements are needed for all equipment, as well as software upgrades to ensure operational needs are met and maintained.

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 competitive bid is required, we will not pursue this procurement for the reasons stated above. This will result in the continued use of an aging piece of equipment with reduced sorting capacity as we would remain at 32 bins. This in turn would eliminate the potential of significant postage savings as combined zip code schemes would have to remain in-use, instead of qualifying new zip codes at the 5-digit rate.

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

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Bulletin Reference Number 23-444DHS-BUSSE-B-31891

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 Aug 31, 2022

Printed Name Paul Hartman E-mail Address Paul.Hartman@Illinois.gov

Phone Number 217-786-6218

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 Sep 6, 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 Sep 14, 2022

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

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Bulletin Reference Number 23-444DHS-BUSSE-B-31891

Requesting Agency/University Illinois Department of Human Services

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

Project Title Criterion Sorter Equipment for OBS

Vendor Bluecrest

Initial Date of Procurement Bulletin Posting Sep 7, 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

2. Purchase an additional 32-bins, doubling the number of bins attached to Pre-Sort Group 2. The additional bins will allow co-located zip codes to be assigned to a single-bin, increasing the likelihood of qualifying those zip codes at the 5-digit level. Each zip code that is qualified at the 5-digit level, saves the State postage - and as stated above, if we can qualify 5 more zip codes currently at a lesser level to the 5-digit, we can expect a savings of $240,000 in postages costs annually, with an ROI of 15 months.