part I and part II DHS B-37779.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 5

Bulletin Reference Number 24-444DHS-444OC-B-37779

Requesting Agency/University Department of Human Services

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

Department/Bureau/Section: Office of Clinical, Administrative and Program Support (OCAPS)

Need Identified Date: Jun 20, 2023 Supply/Service Need By Date: Aug 1, 2023

Project Title: BPCSS ATP Packaging Supplies

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

Provide a description of the supplies or services required:

The Bureau of Pharmacy and Clinical Support Services (BPCSS) intends to procure a Sole Source contract for the purchase of packaging supplies to maintain the pharmaceutical packaging machines at BPCSS Pharmacies statewide.

Value: Not to Exceed Value of Initial Term, this Change Order or Amendment: 325,000

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 1, 2023

Estimated Contract End Date: Jul 31, 2024

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:

These supplies must be purchased from this vendor in order to keep service and maintenance contracts in place.

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

Compatibility of Equipment, Accessories, Replacement Parts or Service

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Bulletin Reference Number 24-444DHS-444OC-B-37779

Requesting Agency/University 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 Mar 2, 2022 Jun 30, 2022 105,600 BPCSS Pharmacy - Packaging SP Sole Source Conditions 4100154412 Small Purchase

2 Dec 21, 2022 Jun 30, 2023 98,600 BPCSS Pharmacy - Parata Packaging SP Sole Source Conditions 4100170006 Small Purchase

3 Small Purchase

4 Small Purchase

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:

All Department of Human Services (DHS) State operated facility pharmacies use Automatic Tablet Packager (ATP) medication repackaging machines to unit does medications into individual daily doses for State residents. These machines require special packaging materials( i.e. plastic packaging and ribbons). The packaging materials hold the medications and the ribbons print critical information on the packaging material(patient name, medication names and times the dosage is to be given). Each pharmacy has seen a reduction in annual drug costs by going to bulk purchasing and has seen a reduction in inventory value when using the these machines. Workflow efficiencies have also improved with the use of these machines. This is very important when pharmacy staffing has been difficult to maintain. Patient safety is enhanced with the use of these machines as medication errors have dramatically decreased with the use of these machines.

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

The following materials are required for use of the ATP medication packaging machines:

ATP-R65WR ATP Wide Ribbon (6/case) - cost per case is $179.57.

ETP-WP ATP2 Wide Paper, Extra Long (6/case) - cost per case is $515.26.

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Bulletin Reference Number 24-444DHS-444OC-B-37779

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?

DHS has invested over 3.5 million dollars on this drug repackaging system for machines at all of the DHS facility pharmacy locations statewide in the last five (5) years. These machines require these specific packaging materials to run and repackage medications into daily doses for individual residents. These supplies must be purchased from Parata (the company the machines were purchased from) in order to not void the service and maintenance contracts included when the packaging machines were purchased.

These machines have improved processing time within the pharmacy and have also cut down on human errors when processing medications. These machines are very sensitive in nature and any aftermarket products used within the machines can throw off the calibration and create issues within the machines and make them not work properly. The vendor will not stand behind any service or maintenance contracts to fix the machines in a prompt manner if any aftermarket products are used.

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:

These are the only supplies approved by the vendor to be used in their proprietary ATP drug packaging machines. Also, these supplies are required in order to keep the current service and maintenance agreement for the machines valid.

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?

DHS currently has twelve (12) of these ATP machines in use statewide. These are the only supplies approved by the vendor to be used in their proprietary ATP drug packaging machines.

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?

Since all twelve (12) machines were purchased through this vendor, the vendor gives us a 10% discount on all supplies for the machines.

Estimated costs are as follows:

ATP-R65WR ATP Wide Ribbon (6/case) 506 cases @ cost per case $179.57 = $90,862.42 ETP-WP ATP2 Wide Paper, Extra Long (6/case) 436 Cases @ cost per case $515.26 = $224,653.36

Shipping costs on average of 3% for all supplies shipped to various facilities $315,515.78 x 3 % = $9,465.47 for a grand total of $324,981.25

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 procurement is delayed, individuals in DHS care could possibly go without medications leading up to injury and/or possibly death. The accurate operation and dispensing from these machines directly effects the health and safety of individuals under the care of

DHS.

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

No.

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Bulletin Reference Number 24-444DHS-444OC-B-37779

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 Jun 20, 2023

Printed Name Shannon Tribble E-mail Address shannon.tribble@illinois.gov

Phone Number 217-558-0949

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 27, 2023

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) 419-1351 Date 6/29/2023

Printed Name Adrienne Grover E-mail Address adrienne.grover@illinois.gov

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Bulletin Reference Number 24-444DHS-444OC-B-37779

Requesting Agency/University Department of Human Services

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

Project Title BPCSS ATP Packaging Supplies

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

Initial Date of Procurement Bulletin Posting Jul 3, 2023

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

ATP-R65WR ATP Wide Ribbon (6/case) - cost per case is $179.57.

ETP-WP ATP2 Wide Paper, Extra Long (6/case) - cost per case is $515.26.

Q3Answer: DHS has invested over 3.5 million dollars on this drug repackaging system for machines at all of the DHS facility pharmacy locations statewide in the last five (5) years. These machines require these specific packaging materials to run and repackage medications into daily doses for individual residents. These supplies must be purchased from Parata (the company the machines were purchased from) in order to not void the service and maintenance contracts included when the packaging machines were purchased.

These machines have improved processing time within the pharmacy and have also cut down on human errors when processing medications. These machines are very sensitive in nature and any aftermarket products used within the machines can throw off the calibration and create issues within the machines and make them not work properly. The vendor will not stand behind any service or maintenance contracts to fix the machines in a prompt manner if any aftermarket products are used.

Estimated costs are as follows:

ATP-R65WR ATP Wide Ribbon (6/case) 506 cases @ cost per case $179.57 = $90,862.42 ETP-WP ATP2 Wide Paper, Extra Long (6/case) 436 Cases @ cost per case $515.26 = $224,653.36

Shipping costs on average of 3% for all supplies shipped to various facilities $315,515.78 x 3 % = $9,465.47 for a grand total of $324,981.25