part I and part II DoIT B-30160ehd.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 23-448DOIT-INFOT-B-30160

Requesting Agency/University Illinois Department of Innovation and Technology

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

Department/Bureau/Section: DoIT/EPOS/Mainframe

Need Identified Date: Jul 25, 2022 Supply/Service Need By Date: Oct 1, 2022

Project Title: Xerox High Speed Printer Maintenance

Vendor: Xerox Corporation

Provide a description of the supplies or services required:

Establish agency specific contract that provides the ability to provide maintenance and volume print pricing on the high speed Xerox printers located at the Willard Ice Building in Springfield and the 33 South State location in Chicago. Asking for a 21 month sole source contract that will take us through FY23/24 (06/30/24). Below is the list of current high speed printers that need maintenance. Please note that DoIT in process of a procurement to replace 4 of the older printers listed below.

TX0001509

TX0001795

TX0001794

TX0001659

TX0001664

TX0001214 (Will be replaced 2022) TX0001206 (Will be replaced 2022) TX0001187 (Will be replaced 2022) (Chicago Print Center) TX0001196 (Will be replaced 2022) (Chicago Print Center)

Value: Estimated Value of Initial Term, this Change Order or Amendment: 1,006,157.04

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

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Bulletin Reference Number 23-448DOIT-INFOT-B-30160

Requesting Agency/University Illinois Department of Innovation and Technology

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Oct 1, 2022

Estimated Contract End Date: 06/30/2024

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:

The longer term allows the Agency to lock in rates without annual increases. The lock in rate will save an estimated 3 percent funds for the State.

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

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

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Bulletin Reference Number 23-448DOIT-INFOT-B-30160

Requesting Agency/University Illinois Department of Innovation and Technology

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 05/01/2020 6/30/2022 2,103,792 2 Year Maintenance CIT0176100 Sole Source

2 07/01/2016 06/30/2017 1,238,348 Annual Maintenance - PBC 99579 CIC7995790 Sole Source

3 07/01/2015 06/30/2016 1,383,022 Annual Maintenance - PBC 93085 CIC6930850 Sole Source

4 07/01/2016 06/30/2015 986,787 Annual Maintenance - PBC 86876 CIC5868760 Sole Source

5 07/01/2013 06/30/2014 1,195,886 Annual Maintenance - PBC 78705 CIC4787050 Sole Source

6 01/01/2013 06/30/2013 845,805 6 month Maintenance - PBC 74655 CIC3746550 Sole Source

7 07/01/2012 12/31/2012 827,936 6 month Maintenance - PBC 71222 CIC3712220 Sole Source

8 07/01/2011 06/30/2012 1,575,028 Annual Maintenance - PBC 58765 CIC2587650 Sole Source

9 07/01/2010 06/30/2011 1,575,028 Annual Maintenance - PBC 49631 CIC0429830 Sole Source

10 07/01/2009 06/30/2010 1,352,884 Annual Maintenance - PBC 42983 CIC0429830 Sole Source

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

FY18 2 year Maintenance Contract P-1338 $2,103,792 FY09 - PBC 34613 Contract CIC9346130 $1,745,752 FY08 - PBC 26752 Contract CIC8267520 $1,587,038 FY07 - PBC 20790 Contract CIC7207900 $561,197 FY06 - PBC 8274 Contract CIC6082740 $530,000

Section VI - Business Rationale

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

This maintenance agreement provides for timely response to repair orders at a guaranteed level of service as well as volume usage pricing. The Xerox printers generate reports and documents for many mainframe and midrange production systems at DoIT, DHS, HFS, DES, DOT and other customer agencies. Without these Xerox printers getting regular service and volume usage pricing, DoIT would fail to meet critical deadlines impacting agencies, employees and Illinois citizens.

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

Coverage to meet established SLAs for maintenance and repair on the below outlined Xerox Highspeed print presses, so that downtimes do not impact delivering critical print items.

TX0001509

TX0001795

TX0001794

TX0001659

TX0001664

TX0001214 (Will be replaced 2022) TX0001206 (Will be replaced 2022) TX0001187 (Will be replaced 2022) (Chicago Print Center) TX0001196 (Will be replaced 2022) (Chicago Print Center)

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Bulletin Reference Number 23-448DOIT-INFOT-B-30160

Requesting Agency/University Illinois Department of Innovation and Technology

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?

It is standard business practice at DoIT to maintain support/maintenance on all critical infrastructure components. Without this maintenance agreement the vendor warranty on these Xerox high speed printers would be voided. Repairs and/or replacement of equipment could not be completed. Enterprise Operations averages 13, 000,000 images monthly, however some months can have significant increases over other months which depends on customer agency business. Loss of even a single Xerox high speed printer unit for an extended amount of time, seriously impairs if not prohibits the ability to meet the volume printing needs of customer agencies some of which are notifications sent to citizens of Illinois relating to services they receive.

Expected benefit and return on investment of the requested product/service: Provides for continued, uninterrupted services to Xerox high speed printers and the critical applications supported by them. Response time is guaranteed at four hours or less.

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:

Xerox requires all maintenance and repairs to the State's Xerox high and medium volume printers be performed by a Xerox-certified and authorized technician. All printers listed above are Xerox Nuvera High volume printers.

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?

DOIT standard best practice is to cover maintenance and support with the appropriate vendor for the best outcomes and up time for the required service level agreements with our agencies. Alternatives were not assessed due to the fact that Xerox requires all maintenance and repairs to the State's Xerox high and medium volume printers be performed by a Xerox-certified and authorized technician. DOIT will void printer warranties if we look outside non Xerox alternatives.

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?

Xerox calculates annual maintenance based on a flat fee, estimated monthly output volume and the level of coverage required.

Previous contracts have varied depending on the term length, the number of devices and age of the equipment covered. DOIT rates were calculated utilizing the NASPO contract terms which on average are nearly 20 percent lower than maintenance terms negotiated outside this master contract. The longer term locks in rates which will save the State annual estimated increase of 3 percent.

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?

These Xerox high speed printers generate reports and documents for many mainframe and midrange production systems at DoIT, DHS, HFS, DES, DOT and other customer agencies. Without these Xerox printers getting regular service and volume usage pricing, DoIT would fail to meet critical deadlines impacting agencies, employees and Illinois citizens. Xerox printers have been used for many years for mainframe and midrange high volume production printing and the Xerox print scripts are incorporated into numerous mission critical applications for several agencies.

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

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Bulletin Reference Number 23-448DOIT-INFOT-B-30160

Requesting Agency/University Illinois Department of Innovation and Technology

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 17, 2022

Printed Name Rebecca Montgomery E-mail Address rebecca.montgomery@illinois.gov

Phone Number 2176709829

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 Van.Austin@Illinois.Gov

Phone Number 217-524-2733 Date Sep 14, 2022

Printed Name Van Austin

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 217-206-0722 Date 9/15/2022

Printed Name Kassandra Wilkin E-mail Address kassandra.wilkin@illinois.gov

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Bulletin Reference Number 23-448DOIT-INFOT-B-30160

Requesting Agency/University Illinois Department of Innovation and Technology

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

Project Title Xerox High Speed Printer Maintenance

Vendor Xerox Corporation

Initial Date of Procurement Bulletin Posting Sep 19, 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

TX0001509

TX0001795

TX0001794

TX0001659

TX0001664

TX0001214 (Will be replaced 2022) TX0001206 (Will be replaced 2022) TX0001187 (Will be replaced 2022) (Chicago Print Center) TX0001196 (Will be replaced 2022) (Chicago Print Center)

FY09 - PBC 34613 Contract CIC9346130 $1,745,752 FY08 - PBC 26752 Contract CIC8267520 $1,587,038 FY07 - PBC 20790 Contract CIC7207900 $561,197 FY06 - PBC 8274 Contract CIC6082740 $530,000

TX0001509

TX0001795

TX0001794

TX0001659

TX0001664

TX0001214 (Will be replaced 2022) TX0001206 (Will be replaced 2022) TX0001187 (Will be replaced 2022) (Chicago Print Center) TX0001196 (Will be replaced 2022) (Chicago Print Center) Q3Answer: It is standard business practice at DoIT to maintain support/maintenance on all critical infrastructure components. Without this maintenance agreement the vendor warranty on these Xerox high speed printers would be voided. Repairs and/or replacement of equipment could not be completed. Enterprise Operations averages 13, 000,000 images monthly, however some months can have significant increases over other months which depends on customer agency business. Loss of even a single Xerox high speed printer unit for an extended amount of time, seriously impairs if not prohibits the ability to meet the volume printing needs of customer agencies some of which are notifications sent to citizens of Illinois relating to services they receive.

Expected benefit and return on investment of the requested product/service: Provides for continued, uninterrupted services to Xerox high speed printers and the critical applications supported by them. Response time is guaranteed at four hours or less.