part I and part II EEC B-29322ehd.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 5

Bulletin Reference Number 22-510EEC-EEC51-B-29322

Requesting Agency/University Executive Ethics Commission

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

Department/Bureau/Section: CPO-GS, CPO-HE, CPO-CDB

Need Identified Date: Mar 31, 2022 Supply/Service Need By Date: Jun 1, 2022

Project Title: NIGP Code License Statewide 11 – Digit NIGP Commodity Code License for June 1, 2022 to June 30, 2027

Vendor: Periscope Holdings

Provide a description of the supplies or services required: NIGP Code License Statewide 11 – Digit NIGP Commodity Code License

Value: Estimated Value of Initial Term, this Change Order or Amendment: 126,545

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

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Jun 1, 2022

Estimated Contract End Date: Jun 30, 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:

Periscope Holdings Inc. (Periscope), the licensor of the NIGP Code, will hold the annual cost of $25,309 the same over the life of the contract term. Foregoing the standard 4% annual cost increase advertised on the licensor's website, the Executive Ethics Commission (EEC) will save $10,536 over the contract term. When compounded at 4% annually, the license costs $137,081 for five one-year terms.

The proposed $126,545 five-year term contract represents a 7.7% discount.

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

Version 7.01 Page 2 of 5

Bulletin Reference Number 22-510EEC-EEC51-B-29322

Requesting Agency/University Executive Ethics Commission

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 Jun 1, 2021 May 31, 2022 24,336 NIGP Code License Statewide 11 – Digit Small Purchase

2 Jun 1, 2020 May 31, 2021 23,400 NIGP Code License Statewide 11 – Digit Small Purchase

3 6/1/2019 May 31, 2020 22,500 NIGP Code License Statewide 11 – Digit Small Purchase

4 6/1/2018 5/31/2019 22,000 NIGP Code License Statewide 11 – Digit Small Purchase

5 6/1/2017 5/31/2018 NIGP Code License Statewide 11 – Digit Small Purchase

6 6/1/2016 5/31/2017 19,500 NIGP Code License Statewide 11 – Digit Small Purchase

7 6/1/2015 5/31/2016 19,500 NIGP Code License Statewide 11 – Digit Small Purchase

8 6/1/2014 5/31/2015 19,500 NIGP Code License Statewide 11 – Digit 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:

Procurements conducted by the chief procurement officers require a standard taxonomy to identify the supply and services being sought by the State and being offered by vendors. This coding system is needed in the BidBuy e-procurement system and the IL Procurement Gateway (both currently using 5-digit NIGP Code). The Business Enterprise Program requires a coding system (currently using 5-digit NIGP Code) providing standardized descriptions so that vendors may be certified as providers of specific items. The Department of Central Management Services requires a highly specific taxonomy (currently 11-digit NIGP Code) that permits description of items maintained in inventory, and that derives from descriptions used for procurement requests.

The NIGP Code is a universal taxonomy for identifying commodities and services.

Currently, the EEC has a one year contract with Periscope for statewide use of the 3, 5, 7, and 11-digit NIGP Commodity Code. The NIGP Code has been used by the Chief Procurement Officer for General Services since 2014.

A statewide agreement is needed to allow all state agencies, other governmental units, and vendors seeking State contracts the ability to use the NIGP Commodity Codes.

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

The standard taxonomy needs to be systematic and orderly with increasing levels of detail. The highest level of detail needs to provide State buyers with an adequate description to cover the variety of items that government purchases. Overall, the system of codification should be nationally used by government entities and their suppliers, and owned and managed by an entity familiar with government procurement and receptive to governments' evolving needs.

Version 7.01 Page 3 of 5

Bulletin Reference Number 22-510EEC-EEC51-B-29322

Requesting Agency/University Executive Ethics Commission

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 NIGP Code was developed by government purchasers in the United States and is the most widely accepted and used codification system for supplies and services used by government entities in the US. The majority of states in the US use the NIGP Code. The NIGP Code is copyrighted material and provides the highest level of specificity for a national standard of product descriptions.

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:

The NIGP Code is the only standard taxonomy to provide more than 9,000 descriptions of supplies and services of items (at the 5-digit level) purchased by government entities. It is the only nationally known system specifically designed for government purchasing, and is the only codification using multiple levels of specificity.

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:

United Nations Standard Products and Services Code (UNSPSC)

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:

The UNSPSC codification system is not used as widely by state governments and contains, due to being an open source, many descriptions unrelated to the items purchased by state governments. The NIGP Code is used by 33 states and the 11-digit NIGP Code provides more than 250,000 descriptions of products purchased by government.

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).

research was conducted online and through conversations with state procurement personnel

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?

Negotiation with Periscope to not apply the standard annual cost increase.

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?

That State will incur the time and effort to conduct a competitive solicitation that will have no bidders that could meet the specifications of nationally recognized codification system for government procurement. GS1 US in a non-profit international member organization that manages the UNSPSC. GS1 US does not sell the UNSPSC and would not bid on a competitive procurement.

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

no

Version 7.01 Page 4 of 5

Bulletin Reference Number 22-510EEC-EEC51-B-29322

Requesting Agency/University Executive Ethics Commission

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 May 3, 2022

Printed Name Caleb Adams E-mail Address caleb.adams@illinois.gov

Phone Number 217-280-3539

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 caleb.adams@illinois.gov

Phone Number 217-280-3539 Date May 3, 2022

Printed Name Caleb Adams

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 217-622-1550 Date May 3, 2022

Printed Name David Littrell E-mail Address david.littrell@illinois.gov

Version 7.01 Page 5 of 5

Bulletin Reference Number 22-510EEC-EEC51-B-29322

Requesting Agency/University Executive Ethics Commission

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

Project Title NIGP Code License Statewide 11 – Digit NIGP Commodity Code License for June 1, 2022 to June 30, 2027

Vendor Periscope Holdings

Initial Date of Procurement Bulletin Posting May 4, 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

The NIGP Code is a universal taxonomy for identifying commodities and services.

Currently, the EEC has a one year contract with Periscope for statewide use of the 3, 5, 7, and 11-digit NIGP Commodity Code. The NIGP Code has been used by the Chief Procurement Officer for General Services since 2014.

A statewide agreement is needed to allow all state agencies, other governmental units, and vendors seeking State contracts the ability to use the NIGP Commodity Codes.