part I and part II DVA B-27854ehd.pdf

Sole Source Justification Form

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Bulletin Reference Number 22-497DVA-MANTE-B-27854

Requesting Agency/University IDVA

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

Department/Bureau/Section: IDVA Manteno Veterans Home

Need Identified Date: Feb 17, 2022 Supply/Service Need By Date: 6/1/2022

Project Title: Transitional Dietary Services

Vendor: Arena Foods

Provide a description of the supplies or services required: Dietary Services

Value: Estimated Value of Initial Term, this Change Order or Amendment: 6,000,000

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: Jun 1, 2022

Estimated Contract End Date: Dec 31, 2023

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:

IDVA will need to hire staff for this transition and train them. The hiring process can be lengthy. The requested 18 months will allow for IDVA to have a successful transition

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

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

Phasing in of the agency in-house staff and in house kitchen

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

To prevent disruption to services provided to vets

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Bulletin Reference Number 22-497DVA-MANTE-B-27854

Requesting Agency/University IDVA

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 07/01/2009 06/30/2014 5,683,239.25 Dietary Services M10041034 IFB

2 07/01/2014 06/30/2019 14,000,000 Dietary Services M1582524 IFB

3 07/01/2019 06/30/2020 3,165,750 Dietary Services M1582524 Renewal

4 07/01/2020 09/30/2020 799,459.2 Dietary Services M1582524/41000003 Emergency

5 02/15/2021 06/30/2021 1,075,000 Dietary Services M1582524/41000003 Emergency Extension

6 07/01/2021 12/31/2021 1,885,000 Dietary Services 4100137279 Emergency Extension

7 01/01/2022 06/30/2022 1,411,920 Dietary Services 4100137279 Emergency Extension

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:

For many years, the Manteno Veterans’ Home has had contracted dietary services, whereas the other Homes are all self-sufficient with in-house dietary units. IDVA wishes to improve the dining experience at the Manteno Home. Self-supporting the dietary needs will align the service with all other homes and would give us control over quality, presentation, and meeting service experience expectations for our veterans. IDVA plans to stand up a dietary department over the next fiscal year. The selected vendor will assist in that transition as they have been providing the dietary services over the last several years. The current vendor has the experience and knowledge to aide in a successful transition.

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

The selected vendor will continue to provide dietary services to our Veteran residents while assisting IDVA through the transition period of creating its own dietary department, preventing a sudden change and disruption to our residents. The vendor will offer guidance on what types of food IDVA will need to order as well as assist with menus. The vendors staff with work closely with the IDVA team to train and develop newly hired dietary staff. The vendor will provide a list of items to IDVA that will need to be purchased for the kitchen. The menu//food/kitchen items will be provided to IDVA within the first 60 days of the contract execution. IDVA plans to use master contracts for these purchases using multiple vendors and transition to their own equipment and food early in FY23. HR hopes to be fully staffed by end of calendar year 2023.It allows IDVA to utilize state master contracts while also bringing in over 40 new job opportunities with the State of Illinois. The process for hiring is lengthy and will be the longest part of this project. IDVA will work closely with the vendor to ensure a timely transition and implementation of each phase as the agency and the home assumes responsibility

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 selected vendor is the only vendor in the area that has bid on the dietary bids over the last few decades. The vendor supplies the food, equipment and all necessary items to feed the residents. If we were to try to utilize a different vendor, the abrupt change in services would disservice our residents, and leave IDVA without the knowledge and ability to transition with little disruption as possible.

The vendors knowledge of the current needs of the home will ensure a successful dining experience for our residents

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Bulletin Reference Number 22-497DVA-MANTE-B-27854

Requesting Agency/University IDVA

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:

We have bid this service out multiple times over many years and the current vendor is the only vendor to submit a bid. The home does not currently have a kitchen equipped for these services, making it difficult for vendors to transport food and equipment needed to feed our residents. Our research shows there are not other vendors in this geographical area to offer such detailed services such as food, staff, equipment, etc.

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:

The selected vendor is the only vendor in the area that has bid on the dietary bids over the last few decades. The vendor has the knowledge and experience to make this a successful transition. The vendor supplies the food, equipment and all necessary items to feed the residents. If we were to try to utilize a different vendor, the abrupt change in services would disservice our residents, and leave IDVA without the knowledge and ability to transition with little disruption as possible. We have bid this service out multiple times over many years and the current vendor is the only vendor to submit a bid. Research shows there are not other vendors in this geographical area to offer such detailed services such as food, staff, equipment, etc.

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:

There has not been another vendor to bid on these services in at least the last 10 years

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).

internal research was conducted on services available in the area; Agency conducted a cost analysis based on other homes dietary departments. The new model of dietary care IDVA desires would cost more than historic spending regardless of whether it is contracted out or provided in-house. The preliminary projections for a one time cost is at $5 million for the first year and $4.5 million annually thereafter. The current dietary model costs and estimated $4 million as of 2022.

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?

Determination of pricing is comparable to the current services the vendor provides. The intent is as the agency/home assumes responsibility in a phased approach, the vendor costs will decrease.

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 residents in our Manteno Veteran home would lose its dietary services, requiring the Agency to possibly having to activate the National Guard to ensure the Veteran residents were fed nutritious meals 3 times a day

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

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Bulletin Reference Number 22-497DVA-MANTE-B-27854

Requesting Agency/University IDVA

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 Apr 6, 2022

Printed Name Amanda Gray E-mail Address amanda.gray@illinois.gov

Phone Number 217-782-7467

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 michele.l.kuntz@illinois.gov

Phone Number Date

Printed Name Michele Kuntz

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 217-299-5563 Date

Printed Name Gina Jacaway E-mail Address gina.jacaway@illinois.gov

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Bulletin Reference Number 22-497DVA-MANTE-B-27854

Requesting Agency/University IDVA

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

Project Title Transitional Dietary Services

Vendor Arena Foods

Initial Date of Procurement Bulletin Posting Apr 13, 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