Sole Source Justification Form

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Bulletin Reference Number 26-448DOIT-INFOT-B-50671

Requesting Agency/University Department of Innovation and Technology

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

Department/Bureau/Section: Department of Innovation and Technology

Need Identified Date: 12/15/2025 Supply/Service Need By Date: 02/15/2026

Project Title: Sole Source Change Order Notice - HYSB Add license capacity and MTC fees

Vendor: H&W Computer Systems, Inc.

Provide a description of the supplies or services required:

This procurement is to amend the original Sole Source Procurement 24-448DOIT-INFOT-P-67909:0. A migration from the Z14 mainframe to the Z16 mainframe is needed and the perpetual licesence that was procured for the Z14 mainframe needs to be migrated to the Z16 mainframe, this also adds an increase in data was needed.

Value: Actual Value of Initial Term, this Change Order or Amendment: 121,522

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: One-Time Amendment or Change Order

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: 02/15/2026

Estimated Contract End Date: 03/31/2027

Number of Potential Renewals: 0

Length of Each Renewal in Months: 0

Total Value of All Renewals: 0

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 original term of the original contract was for 3 years and this amendment is to coincide witht he original term.

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)

Critical Changes to the Existing Contract are Necessary and Best Accomplished by the Contract Holder

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

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Bulletin Reference Number 26-448DOIT-INFOT-B-50671

Requesting Agency/University Department of Innovation and Technology

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

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

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 09/27/2024 03/31/2027 279,346 H&W SYSB II Software for CICS - Sole Source P-67909 Sole Source

2 07/01/2018 06/30/2020 208,364 SYSB II Software Maintenance and Support P-2450 Sole Source

3 07/01/2020 06/30/2022 50,000 H & W SYSB II Software for CICS Use- Small Purchase-Sole source conditions P-18986 Small Purchase

4 07/01/2022 06/30/2023 68,661 H & W SYSB II Software for CICS Use- Small Purchase-Sole source conditions P-38738 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:

This software is used by state agencies to start CICS applications, disable VSAM files, and disable CICS transactions. Currently Department of Human Services (DHS), Central Management Services (CMS), and Department of Employment Services (DES) use it on a daily basis. DHS, CMS, and DES mainly use SYSB II software to bring up CICS applications by submitting JCL in a batch job. This batch job is submitted via CA Scheduler jobs or submitted manually by Production Control or applications programming staff. All these agencies have several transactions and hundreds of VSAM files, a manual process without SYSB II software is not feasible.

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

The license on SYSB II software from H & W Computer Systems, Inc. ran on the IBM Z 14 Mainframe Server and needs to be migrated to the Z16 mainframe server. SYSBII interacting with CICS VSAM file sharing which enables data sharing across multiple systems and also allows CICS and non - CICS applications that run in multiple address spaces and on multiple z/OS systems to access data at the same time. The maintenance, which is included in the license purchase, is 24 hours a day, 7 days a week telephone support, new major releases and new fix releases are available on demand for three a year period. The maintenance and the availability of the new releases will reduce modifications and slow downs that can cause user problems.

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Bulletin Reference Number 26-448DOIT-INFOT-B-50671

Requesting Agency/University 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?

SYSB-II is a mainframe computer software that allows you to process batch during the business day, without impacting CICS on-line activity, so you have current data on demand. It allows CICS and batch to have concurrent access to IBM VSAM mainframe files, and users have access to the most current data on demand so they can make better business decisions using up-to-date information. SYSB- II doesn’t require application source-code changes, additional hardware, data migration, or re-architecting your existing IT infrastructure.

On the other hand, IBM VSAM is a direct-access storage device (DASD) file storage access method developed by IBM. It is used in IBM’s z/OS operating system and comprises four data set organizations: key-sequenced (KSDS), relative record (RRDS), entry-sequenced (ESDS) and linear (LDS). VSAM files are cataloged for easy retrieval and can be accessed through Data Definition (DD) statements in Job Control Language (JCL), via dynamic allocation or in on-line regions such as in Customer Information Control System (CICS). Both IMS/ DB and Db2 are implemented on top of VSAM and use its underlying data structures.

In summary, SYSB-II is a software that allows concurrent access to IBM VSAM mainframe files, while IBM VSAM is a file storage access method used in IBM’s z/OS operating system. SYSB-II provides a solution to minimize the batch window and allows users to access the most current data on demand.

The SOI runs 55,000 batch jobs per month and supports around 350 applications for multiple Agencies. The product procured allows this volume to be parsed out and batch processing to be able to run through out the day for more efficient distribution and timeliness of job handling.

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:

This technology is proprietary to the company which alleviates all the gaps encountered by other products. Research shows how does SYSB-II compare to other alternatives on the market. The following products are close to the original SYSB II with flaws that the State of Illinois (SOI) Agencies and constituents would not be able to accept. Listed below are the products and their flaws:

1. VSAM RLS gives the ability to define VSAM files (data sets) as either "recoverable" or "non-recoverable." If the files are defined as non-recoverable, you can process batchs while the files are still available to CICS. However, non-recoverable files do not support forward or backward recovery. You should not define files that contain critical data as non-recoverable. VSAM RLS is not a substitute for SYSB-II.

SYSB-II can run with or without VSAM RLS.

2. Transactional VSAM (TVS, or DFSMStvs) is IBM’s solution to file sharing. Modifications or rewrites can be extensive depending on the batch job. Also, TVS uses a longer I/O path. This will slow down data centers running at capacity during peak demand times, regardless of file sharing. In order to use TVS, you must have VSAM RLS. In contrast, SYSB-II can run with or without VSAM RLS, and you don’t need to make source-code changes. This is an IBM product.

3. SHAREOPTION 3, on the surface, appears to solve the limitations of SHAREOPTION 2 by enabling multiple, concurrent updates. But because SHAREOPTION 3 permits multiple regions to both read and write to a single data set, it would also permit multiple regions to concurrently update identical blocks of records, causing a loss of physical data. Employment of SHAREOPTION 3 may lead to corrupted VSAM integrity and increased overhead. This is an Amazon product.

4. SHAREOPTION 4 will not enable a single CICS region to lock onto its required records. An environment using SHAREOPTION 4 and enabling concurrent updates by both CICS and batch could experience a severe data integrity problem in the event of a CICS transaction abend. The CICS dynamic transaction backout will replace all of the transaction updated records with initial values - even if the records have been subsequently updated by a batch job. This is also an Amazon product.

To recap, none of these options are best fitted for the SOI agencies current demand and use within the applications on their own. This is why SYSB II is the only option available.

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

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Bulletin Reference Number 26-448DOIT-INFOT-B-50671

Requesting Agency/University Department of Innovation and Technology

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

This is already an existing contract that the State of Illinois is utilizing. The best possible price is to discontinue the Z14 mainframe server to save the State of Illinois money and transfer the perpetual licenses to the the Z16 mainframe server. The longer the Z14 server is utilized the more expense the Sate of Illinois inccurs due to maintenance and repairs. The Z14 is also lacking storage capabilities compared to the Z16 mainframe server. The SYSB-II is a perpetual license that DoIT holds. This is more cost effective wayway to pay for the Maintenance and have it connected to the Mainframe then to have a subscription method. A subscription method gives the user flexibility at the expense of increased cost and is usually housed in a cloud format.

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 is already an existing contract that the State of Illinois is utilizing. By utilizing a and amending a preexisting contract is more economical for the State of Illinois. The Department of Innovation and Technology has sought measures to reduce the expense on the State of Illinois constituents by discontinuing the Z14 mainframe that has had numerous expenses. The SYSB-II is a perpetual license that DoIT holds. This is more cost effective way to pay for the Maintenance and have it connected to the Mainframe then to have a subscription method. A subscription method gives the user flexibility at the expense of increased cost and is usually housed in a cloud format. Until such time as the State determines this software is no longer effective or necessary, Department of Innovation and Technology (DoIT) will need to continue to procure the necessary license which includes maintenance and support to ensure the software is available and functions efficiently. If a migration to another service were to occur, then downtime would occur. The Ponemon Institute estimated that it could cost as much as $476,000.00 per incident for the downtime.

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 project is not completed by moving SYSB-II from the Z14 mainframe to the Z16 mainframe, DoIT will incurred costly expenses in repairs to the Z14. The Z14 also has lack of support and has the ability to crash. This could cause issues for the State of Illinois and its residents. Loss of support places the State at risk of extended service interruptions. Several State agencies have critical business processes and operations supported by mainframe applications. Without access to these applications, services to State of Illinois citizens may be disrupted. Converting to an alternative suite of mainframe applications is not a consideration at this time.

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

No

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Bulletin Reference Number 26-448DOIT-INFOT-B-50671

Requesting Agency/University 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

Printed Name Chris Brinkmeyer E-mail Address Christopher.Brinkmeyer@illinois.gov

Phone Number 2176854682

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 Christopher.Brinkmeyer@illinois.gov

Phone Number 217-6854682 Date

Printed Name Chris Brinkmeyer

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 Jan 30, 2026

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

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Bulletin Reference Number 26-448DOIT-INFOT-B-50671

Requesting Agency/University Department of Innovation and Technology

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

Project Title Sole Source Change Order Notice - HYSB Add license capacity and MTC fees

Vendor H&W Computer Systems, Inc.

Initial Date of Procurement Bulletin Posting Feb 4, 2026

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 217-622-1857

Printed Name Ellen H. Daley Date Feb 18, 2026

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

On the other hand, IBM VSAM is a direct-access storage device (DASD) file storage access method developed by IBM. It is used in IBM’s z/OS operating system and comprises four data set organizations: key-sequenced (KSDS), relative record (RRDS), entry-sequenced (ESDS) and linear (LDS). VSAM files are cataloged for easy retrieval and can be accessed through Data Definition (DD) statements in Job Control Language (JCL), via dynamic allocation or in on-line regions such as in Customer Information Control System (CICS). Both IMS/DB and Db2 are implemented on top of VSAM and use its underlying data structures.

In summary, SYSB-II is a software that allows concurrent access to IBM VSAM mainframe files, while IBM VSAM is a file storage access method used in IBM’s z/OS operating system. SYSB-II provides a solution to minimize the batch window and allows users to access the most current data on demand.

The SOI runs 55,000 batch jobs per month and supports around 350 applications for multiple Agencies. The product procured allows this volume to be parsed out and batch processing to be able to run through out the day for more efficient distribution and timeliness of job handling.

Q4Answer: This technology is proprietary to the company which alleviates all the gaps encountered by other products. Research shows how does SYSB-II compare to other alternatives on the market. The following products are close to the original SYSB II with flaws that the State of Illinois (SOI) Agencies and constituents would not be able to accept. Listed below are the products and their flaws:

1. VSAM RLS gives the ability to define VSAM files (data sets) as either "recoverable" or "non-recoverable." If the files are defined as non-recoverable, you can process batchs while the files are still available to CICS. However, non-recoverable files do not support forward or backward recovery. You should not define files that contain critical data as non-recoverable. VSAM RLS is not a substitute for SYSB-II. SYSB-II can run with or without VSAM RLS.

2. Transactional VSAM (TVS, or DFSMStvs) is IBM’s solution to file sharing. Modifications or rewrites can be extensive depending on the batch job. Also, TVS uses a longer I/O path. This will slow down data centers running at capacity during peak demand times, regardless of file sharing. In order to use TVS, you must have VSAM RLS. In contrast, SYSB-II can run with or without VSAM RLS, and you don’t need to make source-code changes. This is an IBM product.

3. SHAREOPTION 3, on the surface, appears to solve the limitations of SHAREOPTION 2 by enabling multiple, concurrent updates. But because SHAREOPTION 3 permits multiple regions to both read and write to a single data set, it would also permit multiple regions to concurrently update identical blocks of records, causing a loss of physical data. Employment of SHAREOPTION 3 may lead to corrupted VSAM integrity and increased overhead. This is an Amazon product.

4. SHAREOPTION 4 will not enable a single CICS region to lock onto its required records. An environment using SHAREOPTION 4 and enabling concurrent updates by both CICS and batch could experience a severe data integrity problem in the event of a CICS transaction abend. The CICS dynamic transaction backout will replace all of the transaction updated records with initial values - even if the records have been subsequently updated by a batch job. This is also an Amazon product.

To recap, none of these options are best fitted for the SOI agencies current demand and use within the applications on their own. This is why SYSB II is the only option available.

Amazon has SHAREOPTION 3 and SHAREOPTION 4 IBM has VSAM RLS and Transactional VSAM.

2. SHAREOPTION 4 - using SHAREOPTION 4 and enabling concurrent updates by both CICS and batch could experience a severe data integrity problem.

3. Transactional VSAM - will slow down the data centers and it also requires the use of another product, VSAM RLS.

4. VSAM RLS - issue is that non-recoverable files do not support forward or backward recovery