part I and part II DoIT B-32325.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number B-32325

Requesting Agency/University DoIT

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

Department/Bureau/Section: DoIT Telecom

Need Identified Date: Feb 1, 2023 Supply/Service Need By Date: 8/1/2023

Project Title: HITEC Nextalk/Textnet Sole Economically Feasible Source

Vendor: HITEC Group International, Inc dba HITEC

Provide a description of the supplies or services required:

Hitec provides Nextalk/Textnet Services for the State of Illinois to provide effective communication software to provide a secure, private and ADA compliant solution to individuals with disabilities including hearing and speech impairments.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 111,605

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: 8/1/2023

Estimated Contract End Date: 7/31/2024

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)

Software License/Upgrade/Maintenance

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

Version 7.01 Page 2 of 6

Bulletin Reference Number B-32325

Requesting Agency/University DoIT

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 1/1/2008 12/31/2008 110,000 Nextalk/Hitec services for the disabled CMC720930A Renewal

2 1/1/2009 12/31/2009 109,550 Nextalk/Hitec services for the disabled CIC9378690 Sole Source

3 1/1/2010 12/31/2010 110,750 Nextalk/Hitec services for the disabled CIC937869A Renewal

4 1/1/2011 12/31/2011 110,750 Nextalk/Hitec services for the disabled CIC1568950 Sole Source

5 1/1/2012 12/31/2012 110,750 Nextalk/Hitec services for the disabled CIC2658740 Sole Source

6 1/1/2013 12/31/2013 110,750 Nextalk/Hitec services for the disabled CIC3745680 Sole Source

7 1/1/2014 12/31/2014 110,750 Nextalk/Hitec services for the disabled CIC4829090 Sole Source

8 1/1/2015 12/31/2015 110,750 Nextalk/Hitec services for the disabled CIC5895070 Sole Source

9 1/1/2016 12/31/2016 110,750 Nextalk/Hitec services for the disabled CIC6958420 Sole Source

10 1/1/2017 12/31/2017 110,750 Nextalk/Hitec services for the disabled CIC7996690 Sole Source

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

1/1/18 to 12/31/18 - $110,000 - Nextalk/Hitec services for the disabled - CIC8085510 - Sole Source.

1/1/19 to 12/31/19- $110,000 - Nextalk/Hitec services for the disabled - CIT9608800 - Sole Source.

1/1/20 to 12/31/21- $110,000 - Nextalk/Hitec services for the disabled - CIT1019577 - Sole Source.

2/1/22 to 1/30/23 - $110,000 - Nextalk/Hitec services for the disabled - CIT2025116 - Sole Source.

1/31/23 - 7/31/23 - $55,249.57 - Nextalk/Hitec services for the disabled - CIT3034380 - Small Purchase with Sole Source Conditions

Section VI - Business Rationale

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

Hitec provides Nextalk/Textnet Services for the State of Illinois to provide equally effective communication to individuals with disabilities including hearing and speech impairments. The current system provides the State with TTY services via a LAN based network terminating on the users PC. Forty eight 800#'s were initially provided as part of the original installation. We currently have a total of 280 800#'s assigned and 552 users/licenses for agencies across the state. The new contract would include software, licenses, maintenance, application and related services. This Sole Source is requested in order to avoid massive disruption to the states ability to stay ADA compliant.

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

DoIT requires software, licenses, maintenance, application and related services from the vendor to maintain the system which include the following: Licensing and software that provides specialized computer software for individuals with hearing loss that allow connections for deaf and hard of hearing individuals.

Version 7.01 Page 3 of 6

Bulletin Reference Number B-32325

Requesting Agency/University DoIT

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?

HITEC, reseller of Nextalk for NXI Communications, is the only vendor with the ability to provide the software required in Illinois and Wisconsin that offers service access to TTY calling relay calls between agency users and State of Illinois residents. Nextalk is currently used by the State of Illinois agencies to provide communication to State Agencies that provide invaluable services to residents such as food support, cash benefits, insurance and access to medical assistance. These services are provided to all Illinois residents by State agencies and the communication platform Nextalk provides the ability for these services to be attained by residents with hearing or speech impairments. Nextalk provides a unique service (software based and no equipment requirements) that allows State of Illinois Agencies to use a Nextalk software solution on their State computer to communicate with callers using multiple TTY type devices (Illinois residents can communications with any type device to Nextalk) . The Nextalk solution can be used on any computer in the State with State Network connection including call center agents who answer calls daily from residents to provide support to their needs in the State. The software requires a license and maintenance support from the vendor to work in this manner and does not require any equipment other than state computer which is already in use today with agencies. With the service not requiring the State to purchase TTY machines or equipment this saves the state money (see section 7 below). These licenses cannot be purchased from any other vendor, as Hitec is the only licensed provider, therefore making them the only vendor to provide the solution to continue to use this service in the State of Illinois. Doing a full replacement of this type of service could take multiple years to complete to implement and install a new solution with physical equipment would cost the State more than double the current contract value requested. The cost savings alone is justification for continuation of this service and the fact that this service cannot be purchased by any other vendor in the State has brought the request for a Sole Source contract to continue service and continue to save the State money and provide multi channel communication for residents with hearing and speech impairment.

Additionally, DoIT is in the process of moving the Nextalk service to a virtual server. This will eliminate the need to maintain several servers which requires multiple teams to resolve issues. The intent of this upgrade is to further the agencies' investment and commitment to the software which keeps the state ADA compliant. Therefore, this migration will end up saving the State and its taxpayers money. Without this contract we will not be able to complete this migration.

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:

Hitec specifically provides TTY service required by the State of Illinois that include, text relay calls between access users and the state of Illinois customers. Nextalk services uses software installed on a users computer and does not require stand alone TTY equipment. The software can be updated without interfering with the users daily operation. This means that there is no need to replace equipment on a regular basis which lessens costs. Hitec is the only licensed Nextalk provider for these services.

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

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

Montrose Mutual Telephone Company and Illinois Telecommunications Access Corporation

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:

Alternatives like Nextalk provided by HITEC vendor have not been through DoIT Governance and Security compliance to be allowed on the State's network. Security compliance and use of the State’s network by a vendor application requires several layers of security review and governance. The alternatives do not have the security requirements required by DoIT Security and can not be used on State’s network and infrastructure like the Nextalk solution.

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).

Vendor searches were conducted by Wallace Dandridge. Evaluations of services that were conducted via phone calls and Website reviews determined that similar services compared to HITEC were available but vendors are not licensed to do business in Illinois. The reviews entailed equipment needs, software compatibility with current state equipment, and security requirements.

Version 7.01 Page 4 of 6

Bulletin Reference Number B-32325

Requesting Agency/University DoIT

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?

When compared to startup costs, including new equipment, software, licensing, and user training, HITEC still offers the best price. If the State were to purchase new TTY equipment outright, the devices are only warrantied for two years, and this does not include annual licensing or additional service costs that are not covered under the warranty. That would have to be purchased separately. These devices would have to have a refresh every two years as they do not come with maintenance services.

Due to the drastic change in inflation in the past several years, HITEC has agreed to a change in cost at only 1%. Even with this increase, HITEC is still beating out the cost of purchasing devices outright. The vendor originally quoted us at a 2% increase, but after asking if that was the best price they could give us, they agreed to only a 1% increase.

This purchase is considered fair and reasonable due to being substantially cheaper than needing to purchasing individual TTY machines for every single user. TTY equipment is priced at approximately $425 per unit (x 552 current users) which equates to $234,600. This does not include licensing, nor does it include or any replacement equipment versus the software/license installation currently provided by HITEC where are totals are as follows:

8/1/2023 - 7/31/2024 = $111,605.00 (The prior purchase cost for a 6 month contract was $55,249.59 - Rounded up to $55,250 x .2 [to get yearly cost] = 110,500 x .01 = $1,105 $110,500 + $1,105 = $111,605)

This would be a cost savings of $122,995.00

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 State would have to request Hitec to release all 800 numbers to the state and we would need to find another vendor who provides similar service which at this time there are no ADA authorized distributors of hearing impaired software communications in Illinois.

Secondary, all government agencies would need to purchase TTY equipment as a replacement until a new contract is in place. There is no master contract to purchase TTY equipment. TTY equipment runs approximately $425 per unit which would equate to $234,600.00.

This does not include licensing or any replacement equipment.

In addition to the financial impact, these services will always be required to stay ADA compliant while providing people with disabilities the ability to feel included and open up opportunities that are respectfully available for those without disabilities. Again, these services are provided to all Illinois residents by State agencies and the communication platform Nextalk provides the ability for these services to be attained by residents with hearing or speech impairments. Nextalk provides a unique service (software based and no equipment requirements) that allows State of Illinois Agencies to use a Nextalk software solution on their State computer to communicate with callers using multiple TTY type devices (Illinois residents can communications with any type device to Nextalk). The Nextalk solution can be used on any computer in the State with State Network connection including call center agents who answer calls daily from residents to provide support to their needs in the State. The State of Illinois cannot be without these services, nor can we run the risk of not being able to complete the migration to virtual servers.

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

Version 7.01 Page 5 of 6

Bulletin Reference Number B-32325

Requesting Agency/University DoIT

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 Jul 12, 2023

Printed Name Michael Beckman E-mail Address Michael.Beckman@Illinois.gov

Phone Number 217-524-8484

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 Jul 12, 2023

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 217-685-9312 Date Jul 12, 2023

Printed Name Joshua Sergent E-mail Address joshua.sergent@illinois.gov

Version 7.01 Page 6 of 6

Bulletin Reference Number B-32325

Requesting Agency/University DoIT

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

Project Title HITEC Nextalk/Textnet Sole Economically Feasible Source

Vendor HITEC Group International, Inc dba HITEC

Initial Date of Procurement Bulletin Posting Jul 12, 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

1/1/19 to 12/31/19- $110,000 - Nextalk/Hitec services for the disabled - CIT9608800 - Sole Source.

1/1/20 to 12/31/21- $110,000 - Nextalk/Hitec services for the disabled - CIT1019577 - Sole Source.

2/1/22 to 1/30/23 - $110,000 - Nextalk/Hitec services for the disabled - CIT2025116 - Sole Source.

1/31/23 - 7/31/23 - $55,249.57 - Nextalk/Hitec services for the disabled - CIT3034380 - Small Purchase with Sole Source Conditions

Additionally, DoIT is in the process of moving the Nextalk service to a virtual server. This will eliminate the need to maintain several servers which requires multiple teams to resolve issues. The intent of this upgrade is to further the agencies' investment and commitment to the software which keeps the state ADA compliant. Therefore, this migration will end up saving the State and its taxpayers money. Without this contract we will not be able to complete this migration.

Due to the drastic change in inflation in the past several years, HITEC has agreed to a change in cost at only 1%. Even with this increase, HITEC is still beating out the cost of purchasing devices outright. The vendor originally quoted us at a 2% increase, but after asking if that was the best price they could give us, they agreed to only a 1% increase.

This purchase is considered fair and reasonable due to being substantially cheaper than needing to purchasing individual TTY machines for every single user. TTY equipment is priced at approximately $425 per unit (x 552 current users) which equates to $234,600. This does not include licensing, nor does it include or any replacement equipment versus the software/license installation currently provided by HITEC where are totals are as follows:

8/1/2023 - 7/31/2024 = $111,605.00 (The prior purchase cost for a 6 month contract was $55,249.59 - Rounded up to $55,250 x .2 [to get yearly cost] = 110,500 x .01 = $1,105 $110,500 + $1,105 = $111,605)

This would be a cost savings of $122,995.00

In addition to the financial impact, these services will always be required to stay ADA compliant while providing people with disabilities the ability to feel included and open up opportunities that are respectfully available for those without disabilities. Again, these services are provided to all Illinois residents by State agencies and the communication platform Nextalk provides the ability for these services to be attained by residents with hearing or speech impairments. Nextalk provides a unique service (software based and no equipment requirements) that allows State of Illinois Agencies to use a Nextalk software solution on their State computer to communicate with callers using multiple TTY type devices (Illinois residents can communications with any type device to Nextalk). The Nextalk solution can be used on any computer in the State with State Network connection including call center agents who answer calls daily from residents to provide support to their needs in the State. The State of Illinois cannot be without these services, nor can we run the risk of not being able to complete the migration to virtual servers.