part I and part II HFS B-49319.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 9

Bulletin Reference Number 26-478HFS-DIREC-B-49319

Requesting Agency/University Healthcare and Family Services

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

Department/Bureau/Section: Department of Healthcare and Family Services

Need Identified Date: May 12, 2025 Supply/Service Need By Date: Oct 14, 2025

Project Title: Integrated Eligibility System Design, Development, and Implementation Vendor

Vendor: Deloitte Consulting LLP

Provide a description of the supplies or services required:

Illinois' Integrated Eligibility System (IES) is a joint venture operated by the Department of Healthcare and Family Services (HFS), and the Department of Human Services (DHS) to determine eligibility for benefit programs including medical programs such as Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and the Temporary Assistance for Needy Families (TANF) program.

This contract will allow HFS and DHS to continue ongoing work and, if necessary, execute proposed task orders (below) with Deloitte on critical system projects while a competitive procurement can be completed. The proposed task orders will allow for upgrades to maintain operations and ensure compliance with any federal requirements, allow data to be managed more efficiently, and provide any technology modernization work needed to keep the system current.

Value: Not to Exceed Value of Initial Term, this Change Order or Amendment: 120,998,620.92

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: Oct 15, 2025

Estimated Contract End Date: Oct 14, 2026

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

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

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Bulletin Reference Number 26-478HFS-DIREC-B-49319

Requesting Agency/University Healthcare and Family Services

This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)

Compatibility of Equipment, Accessories, Replacement Parts or Service

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:

Potential Loss of Federal Funding

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

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Bulletin Reference Number 26-478HFS-DIREC-B-49319

Requesting Agency/University Healthcare and Family Services

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 10/16/2012 10/15/2017 114,854,833 Design, Develop and Implement IES 2012-00-015 RFP

2 07/31/2013 10/15/2017 1,995,742 Brings Task Order Process in line with intent of contract 2012-00-015-02 Sole Source

3 03/20/2014 10/15/2017 0 To implement DHHS changes to 45 CFR Parts 160 and 164 2012-00-015-03 Amendment

4 06/30/2014 10/15/2017 26,901,430 Additional funding to implement requirements in Deloitte's SOW 2 for Phase II

2012-00-015-04 Sole Source

5 02/20/2015 10/15/2017 2,887,991 Move SOW 2 go live date/add additional modules to ABE/IES 2012-00-015-05 Sole Source

6 02/20/2015 10/15/2017 3,968,743 Development of WVX model 2012-00-015-06 Sole Source

7 08/19/2015 10/15/201 -873,023 Reduced project scope to remove LTSS development 2012-00-015-07 Amendment

8 06/21/2016 10/15/2020 40,300,000

Extend timeline & add funding for Phase 2 of IES to reduce risks associated with deploying a new system

2012-00-015-008 Sole Source

9 10/16/2017 10/15/2020 28,950,000 Deloitte Contract renewal 2012-00-015-010 Renewal

10 01/11/2018 10/15/2020 67,531,687 Additional funding for system development, maintenance and operations

2012-00-015-011 Sole Source

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

11. 4/14/2020-10/15/2020 $45,941,921- Adding funding for system development-2012-00-15-012 -Sole Source

12. 10/16/2020-10/15/2020 $86,999,676-Deloitte Contract Renewal- 2012-00-015-013- Renewal.

13. 1/20/22-10/15/2022 $10,000,000- Additional funding form ARPA grant to fix SNAP defects.

14. 10/16/2022-10/15/2023 $33,484,672 Deloitte transition contract 2023-00-002 Sole Source

15. 10/15/2023 - 10/15/2023 $26,598,092 Deloitte transition contract 2023-00-002-2 Sole Source amendment

16. 10/15/23 - 10/14/24 $107,596,999 Deloitte transition contract 2024-00-001 Sole Source

17. 10/15/24-10/14/25 $109,391,909.26 Deloitte transition contract 2025-00-002 Sole Source

Section VI - Business Rationale

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Bulletin Reference Number 26-478HFS-DIREC-B-49319

Requesting Agency/University Healthcare and Family Services

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

Illinois’ Integrated Eligibility System (IES) is a joint venture used by HFS and DHS. HFS is the lead agency for procurement and payments related to the IES vendor contract, but the contract and all vendor work are managed by the two agencies. The USDA Food and Nutrition Services and the Centers for Medicare and Medicaid Services (CMS) agree that this contract is needed to ensure medical, nutritional, and financial benefits continue to be distributed to the Illinois residents who depend on them.

The technical services needed are to have a Vendor in place until a new contract has been executed and to allow for a transition.

Deloitte’s one-year contract for the continued design, development, and implementation (DDI) of IES will expire on October 14, 2025.

The updated RFP was released September 2024 (BidBuy#24-478HFS-DIREC-B-38467) and is currently under evaluation.

The two agencies involved are seeking approval of an additional one-year sole source contract with Deloitte to continue the Integrated Eligibility System (IES) Design, Development, and Implementation (DDI) services while the competitive procurement is completed.

The current IES supports and distributes medical, nutritional, and financial benefits for approximately 3 million Illinoisans. If there is no vendor in place at any time during the procurement process, it would have a detrimental impact on millions of lives. Not having a vendor in place would also disrupt the work efforts of approximately 4,300 HFS and DHS staff, who would no longer be able to complete their work or manually approve benefits, which would prove difficult and not cost-effective. Most of the work subject to this contract is federally matched at rates between 75 – 90%, with the state’s federal partners providing approximately $275-300 million per year to the state budget for the IES. The state will lose these funds if the system does not comply with federal requirements.

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Bulletin Reference Number 26-478HFS-DIREC-B-49319

Requesting Agency/University Healthcare and Family Services

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

This contract will ensure the continued efficient operations of the Illinois Integrated Eligibility System (IES) by providing continued maintenance, operation, and development of the IES. IES operations includes determination of eligibility for Illinois medical programs (Medicaid, Children’s Health Insurance Program and other State sponsored medical assistance), Supplemental Nutritional Assistance Program (SNAP) and cash assistance. Additionally, the incumbent Vendor will support the transition from the Federally Facilitated Marketplace to a State Based Marketplace (SBM) on 11/1/2025 and will support the development and SIT modifications into IES for any account transfer files. The incumbent Vendor is needed to provide services and support while the work for the new procurement is completed.

This sole source contract includes a 15% goal of to include businesses owned and controlled by minorities, women, and persons with disabilities to comply with BEP.

Task Orders currently be utilized under the current contract:

• TO001: Maintenance and Operations

• TO003: SNET Includes hosting of Atlassian products

• TO004: DHS Ticket Support

• TO006: Security Scanning and Remediation

• TO007: IMPACT

• TO014: Medicaid M&O Ticket Support

• TO017: Security - ARC-AMPE compliance

• TO018: Security - IES Web services and API Gateway

• TO019: Eligibility Tables Data Purge & Archival

Proposed Task Orders - The proposed task orders listed below will allow for upgrades to maintain operations and ensure compliance with any federal requirements, allow data to be managed more efficiently, and provide any technology modernization work needed to keep the system current.

• TBD1 - Elixir - Phase 3 - IES Code Changes to generate PDFs real-time and/or reduce dependencies on storage of Elixir related data within BLOB (Binary Large Object) data to generate notices

• TBD2 - Elixir Replacement/Upgrade - funds to research alternate correspondence vendor solution for collaboration with DDI Vendor on best approach to meet FedRAMP requirements.

• TBD3 - Application Interfaces Externalization - Separate the IL IES services into an application separate from ABE to ensure full functionality of ABE during periods of IES limited functionality.

• TBD4 - Improve/update database tablespace partitioning - Review existing database tablespaces to more efficiently manage the data and gain necessary maintenance benefits.

• TBD5 - Technology Modernization, Innovation and Ongoing Hardware/Software Support - Replace Informatica PowerCenter and Identity Resolution (IIR) due to upcoming discontinuation of on-premises licensing, Modernization of existing Reports Module for more time efficiency, migration of all Appeals and Content Manager documents to IBM FileNet and ongoing Technology Modernization.

• TBD6 - Transition Services - Support for six months of transition tasks prior to the end of the contract.

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Bulletin Reference Number 26-478HFS-DIREC-B-49319

Requesting Agency/University Healthcare and Family Services

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 State purchased a transfer system from Deloitte in 2012 that was modified and customized to create the State's Integrated Eligibility System (IES). IES is the State's single system used to determine eligibility for medical assistance, cash assistance, and SNAP.

Deloitte has been the vendor involved with IES design, development, and implementation work (DDI) since 2012 and is uniquely qualified to provide the maintenance, operations, development, and any transition services needed to ensure the IES remains operational. IES cannot be transferred to a new vendor without assurances that there will be no degradation or stoppages of the system. The State is requesting an additional one-year contract to allow Deloitte to continue their management of the system while the state completes the process for procuring a new vendor to manage IES. Failure to keep IES operational or meet CMS and other federal requirements while the state undergoes a new procurement process creates a potential risk of losing the federal funds.

This contract also includes some proposed task orders for future work that could be added given the bandwidth and needs of the project. Some of this work includes: potential upgrades or replacements to software/systems, separating applications from a single database for more efficiency, supporting continued technology modernization, and drafting and coordinating a transition plan with any new vendor. Additionally, there is a need for continued implementation of the CMS requirements for ARC-AMPE compliance for web security enhancements that are part of TO017.

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:

Deloitte has developed and operated the IES over the last 13 years. No other vendors have the knowledge and specialized experience to provide services to ensure continued operation until a new contract is in place and a successful transition has occurred to a new vendor. The one-year contract will allow for the State to continue to work towards the process of procuring a new vendor.

The IES contains over six (6) million lines of computer code, over 1,500 screens, and approximately 1,800 data tables. The system must interface efficiently with over 100 upstream and downstream systems. It is used by over 4,000 State employees and partner entities. It must satisfy requirements of multiple federal authorities: Centers for Medicare & Medicaid Services (CMS), Food and Nutrition Service (FNS), Social Security Administration (SSA), as well as State requirements, and must satisfy the current MARS-E V2.2 requirements (and ARC-AMPE requirements by March 2026), for connection to the federal data services hub.

Additionally, the loss of institutional knowledge gained by Deloitte over the last 13 years cannot be found with any other vendor without a transition plan in place.

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?

The two agencies involved are seeking approval of an additional one-year source contract with Deloitte to continue the Integrated Eligibility System (IES) Design, Development, and Implementation (DDI) services while a competitive procurement is completed. A request for proposal 24-478HFS-DIREC-B-38467 was issued in September 2024 with bids due in May 2025. The state is currently evaluating proposals.

Not having a vendor in place would disrupt the work efforts of approximately 4,300 HFS and DHS staff, who would no longer be able to complete their work or manually approve benefits, which would prove difficult and not cost-effective. Most of the work subject to this contract is federally matched at rates between 75 – 90%, with the state’s federal partners providing approximately $275-300 million per year to the state budget for the IES. The state will lose these funds if the system does not comply with federal requirements.

6. Are there resellers or distributors?

Yes No N/A

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Bulletin Reference Number 26-478HFS-DIREC-B-49319

Requesting Agency/University Healthcare and Family Services

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?

Deloitte will continue to hold their hourly rate firm at $141.18 for the following task orders: TO 004, TO 006, TO 007, TO 014, TO017, TO018, TO019, TBD1-TBD5 Estimated 382,494 X $141.18 = $54,000,502.92

Deloitte will continue to hold their monthly per FTE at $21, 774.00 for the Maintenance and Operations Task Order (TO 001) $21,774.00 per staff X 250 Staff X 12 months = 65,322,000.00

Task Order 003 includes monthly hosting costs ($19.561.50 X 12 months = $234,738.00).

Task Orders T006, T017, and TBD4 also include hardware/software. The estimated hardware/software costs = $642,660.00

Transition services (TBD6) will be at an hourly rate of $160.00. Estimated 4,992 hours X $160 =$798,720.00

DHS evaluated rates for other vendors in comparison to Deloitte rates, and the current contract that DHS negotiated with NTT Data resulted in a blended cost of $340/hour. From https://eluminoustechnologies.com/blog/it-consulting-rates/ the industry blog states that value-based rates are trending upwards of $300/hour, not including other terms and conditions of the contract.

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?

Failure to have this sole economically feasible contract in place will cause the IES to operate without sufficient technical oversight, which could lead to serious outages of the system, delays in processing eligibility applications and changes, possible inaccurate enrollment, loss or delay of benefits for customers, overpayment by the state, harm to approximately three (3) million Illinoisans who receive health, SNAP, or cash assistance benefits, financial harm to approximately 120,000 individual medical providers unable to receive payment on processed claims, non-compliance with federal regulations, and loss of federal matching funds. Federal partners, CMS and FNS provide approximately $275-300 million per year to the State budget for the IES system.

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

N/A

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Bulletin Reference Number 26-478HFS-DIREC-B-49319

Requesting Agency/University Healthcare and Family Services

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 Sep 11, 2025

Printed Name Katherine Yager E-mail Address katherine.yager@illinois.gov

Phone Number 312-793-6130

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 Monique.n.wantland@illinois.gov

Phone Number 217.557.5777 Date Sep 11, 2025

Printed Name Monique Wantland

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 217-993-1719 Date Sep 12, 2025

Printed Name Jennifer Klein E-mail Address jennifer.klein@illinois.gov

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Bulletin Reference Number 26-478HFS-DIREC-B-49319

Requesting Agency/University Healthcare and Family Services

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

Project Title Integrated Eligibility System Design, Development, and Implementation Vendor

Vendor Deloitte Consulting LLP

Initial Date of Procurement Bulletin Posting Sep 15, 2025

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 Oct 1, 2025

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

This contract will allow HFS and DHS to continue ongoing work and, if necessary, execute proposed task orders (below) with Deloitte on critical system projects while a competitive procurement can be completed. The proposed task orders will allow for upgrades to maintain operations and ensure compliance with any federal requirements, allow data to be managed more efficiently, and provide any technology modernization work needed to keep the system current.

12. 10/16/2020-10/15/2020 $86,999,676-Deloitte Contract Renewal- 2012-00-015-013-Renewal.

13. 1/20/22-10/15/2022 $10,000,000- Additional funding form ARPA grant to fix SNAP defects.

14. 10/16/2022-10/15/2023 $33,484,672 Deloitte transition contract 2023-00-002 Sole Source

15. 10/15/2023 - 10/15/2023 $26,598,092 Deloitte transition contract 2023-00-002-2 Sole Source amendment

16. 10/15/23 - 10/14/24 $107,596,999 Deloitte transition contract 2024-00-001 Sole Source

17. 10/15/24-10/14/25 $109,391,909.26 Deloitte transition contract 2025-00-002 Sole Source Q1Answer: Illinois’ Integrated Eligibility System (IES) is a joint venture used by HFS and DHS. HFS is the lead agency for procurement and payments related to the IES vendor contract, but the contract and all vendor work are managed by the two agencies. The USDA Food and Nutrition Services and the Centers for Medicare and Medicaid Services (CMS) agree that this contract is needed to ensure medical, nutritional, and financial benefits continue to be distributed to the Illinois residents who depend on them.

The technical services needed are to have a Vendor in place until a new contract has been executed and to allow for a transition. Deloitte’s one-year contract for the continued design, development, and implementation (DDI) of IES will expire on October 14, 2025. The updated RFP was released September 2024 (BidBuy#24-478HFS-DIREC-B-38467) and is currently under evaluation.

The two agencies involved are seeking approval of an additional one-year sole source contract with Deloitte to continue the Integrated Eligibility System (IES) Design, Development, and Implementation (DDI) services while the competitive procurement is completed.

The current IES supports and distributes medical, nutritional, and financial benefits for approximately 3 million Illinoisans. If there is no vendor in place at any time during the procurement process, it would have a detrimental impact on millions of lives. Not having a vendor in place would also disrupt the work efforts of approximately 4,300 HFS and DHS staff, who would no longer be able to complete their work or manually approve benefits, which would prove difficult and not cost-effective. Most of the work subject to this contract is federally matched at rates between 75 – 90%, with the state’s federal partners providing approximately $275-300 million per year to the state budget for the IES. The state will lose these funds if the system does not comply with federal requirements.

Q2Answer: This contract will ensure the continued efficient operations of the Illinois Integrated Eligibility System (IES) by providing continued maintenance, operation, and development of the IES. IES operations includes determination of eligibility for Illinois medical programs (Medicaid, Children’s Health Insurance Program and other State sponsored medical assistance), Supplemental Nutritional Assistance Program (SNAP) and cash assistance. Additionally, the incumbent Vendor will support the transition from the Federally Facilitated Marketplace to a State Based Marketplace (SBM) on 11/1/2025 and will support the development and SIT modifications into IES for any account transfer files. The incumbent Vendor is needed to provide services and support while the work for the new procurement is completed.

This sole source contract includes a 15% goal of to include businesses owned and controlled by minorities, women, and persons with disabilities to comply with BEP.

Task Orders currently be utilized under the current contract:

• TO001: Maintenance and Operations

• TO003: SNET Includes hosting of Atlassian products

• TO004: DHS Ticket Support

• TO006: Security Scanning and Remediation

• TO007: IMPACT

• TO014: Medicaid M&O Ticket Support

• TO017: Security - ARC-AMPE compliance

• TO018: Security - IES Web services and API Gateway

• TO019: Eligibility Tables Data Purge & Archival

Proposed Task Orders - The proposed task orders listed below will allow for upgrades to maintain operations and ensure compliance with any federal requirements, allow data to be managed more efficiently, and provide any technology modernization work needed to keep the system current.

• TBD1 - Elixir - Phase 3 - IES Code Changes to generate PDFs real-time and/or reduce dependencies on storage of Elixir related data within BLOB (Binary Large Object) data to generate notices

• TBD2 - Elixir Replacement/Upgrade - funds to research alternate correspondence vendor solution for collaboration with DDI Vendor on best approach to meet FedRAMP requirements.

• TBD3 - Application Interfaces Externalization - Separate the IL IES services into an application separate from ABE to ensure full functionality of ABE during periods of IES limited functionality.

• TBD4 - Improve/update database tablespace partitioning - Review existing database tablespaces to more efficiently manage the data and gain necessary maintenance benefits.

• TBD5 - Technology Modernization, Innovation and Ongoing Hardware/Software Support - Replace Informatica PowerCenter and Identity Resolution (IIR) due to upcoming discontinuation of on-premises licensing, Modernization of existing Reports Module for more time efficiency, migration of all Appeals and Content Manager documents to IBM FileNet and ongoing Technology Modernization.

• TBD6 - Transition Services - Support for six months of transition tasks prior to the end of the contract.

Q3Answer: The State purchased a transfer system from Deloitte in 2012 that was modified and customized to create the State's Integrated Eligibility System (IES). IES is the State's single system used to determine eligibility for medical assistance, cash assistance, and SNAP. Deloitte has been the vendor involved with IES design, development, and implementation work (DDI) since 2012 and is uniquely qualified to provide the maintenance, operations, development, and any transition services needed to ensure the IES remains operational. IES cannot be transferred to a new vendor without assurances that there will be no degradation or stoppages of the system. The State is requesting an additional one-year contract to allow Deloitte to continue their management of the system while the state completes the process for procuring a new vendor to manage IES. Failure to keep IES operational or meet CMS and other federal requirements while the state undergoes a new procurement process creates a potential risk of losing the federal funds.

This contract also includes some proposed task orders for future work that could be added given the bandwidth and needs of the project. Some of this work includes: potential upgrades or replacements to software/systems, separating applications from a single database for more efficiency, supporting continued technology modernization, and drafting and coordinating a transition plan with any new vendor. Additionally, there is a need for continued implementation of the CMS requirements for ARC-AMPE compliance for web security enhancements that are part of TO017.

Q4Answer: Deloitte has developed and operated the IES over the last 13 years. No other vendors have the knowledge and specialized experience to provide services to ensure continued operation until a new contract is in place and a successful transition has occurred to a new vendor. The one-year contract will allow for the State to continue to work towards the process of procuring a new vendor.

The IES contains over six (6) million lines of computer code, over 1,500 screens, and approximately 1,800 data tables. The system must interface efficiently with over 100 upstream and downstream systems. It is used by over 4,000 State employees and partner entities. It must satisfy requirements of multiple federal authorities: Centers for Medicare & Medicaid Services (CMS), Food and Nutrition Service (FNS), Social Security Administration (SSA), as well as State requirements, and must satisfy the current MARS-E V2.2 requirements (and ARC-AMPE requirements by March 2026), for connection to the federal data services hub.

Additionally, the loss of institutional knowledge gained by Deloitte over the last 13 years cannot be found with any other vendor without a transition plan in place.

Not having a vendor in place would disrupt the work efforts of approximately 4,300 HFS and DHS staff, who would no longer be able to complete their work or manually approve benefits, which would prove difficult and not cost-effective. Most of the work subject to this contract is federally matched at rates between 75 – 90%, with the state’s federal partners providing approximately $275-300 million per year to the state budget for the IES. The state will lose these funds if the system does not comply with federal requirements.

Deloitte will continue to hold their monthly per FTE at $21, 774.00 for the Maintenance and Operations Task Order (TO 001) $21,774.00 per staff X 250 Staff X 12 months = 65,322,000.00

Task Order 003 includes monthly hosting costs ($19.561.50 X 12 months = $234,738.00).

Task Orders T006, T017, and TBD4 also include hardware/software. The estimated hardware/software costs = $642,660.00

Transition services (TBD6) will be at an hourly rate of $160.00. Estimated 4,992 hours X $160 =$798,720.00

DHS evaluated rates for other vendors in comparison to Deloitte rates, and the current contract that DHS negotiated with NTT Data resulted in a blended cost of $340/hour. From https://eluminoustechnologies.com/blog/it-consulting-rates/ the industry blog states that value-based rates are trending upwards of $300/hour, not including other terms and conditions of the contract.