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REQUEST FOR SPECIAL PROCUREMENT S-44300-00006874

Formally No. SP-1113-19, REQ-DASOBO-0000977-01, Amendment No. 2

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: The Oregon Health Authority (“OHA”), Public Health Division (“PHD”), Oregon State Public Health Laboratory (“OSPHL”).

2. Date of Request: April 5, 2023 3. Agency Number: 443600

4. Agency Contact Name: Jan Croeni 5. Phone: 503.693.5634

6. Type of Request: ___ Class Special Procurement X Contract-specific Special Procurement

7. Amendment Time Period Requested: From: 8/1/2023 To: 7/31/2024

8. Total Estimated Cost for Amendment Time Period: $165,000 (An additional $60,000 in contracting authority is requested.)

9. Title: Supplies and/or Services to be acquired: Laboratory Billing Services for PHL

10. Amendment Request, Background, Current Need, and Proposed Contracting Procedure:

a. Amendment Request: [DAS PS, on behalf of ] OHA, on behalf of OSPHL, requests approval of this Special Procurement, SP-1113-19, Amendment No. 2, to increase the SP-1113-19 by $60,000 for revised Special Procurement total of $1,410,000. Concurrently, OHA Contract #145893-08 (also known as DASOBO-0000977-01 and DASPS-3166-19 Amendment #3) with Public Consulting Group, Inc. (“PCG”) is amended to extend the term through 7/31/24 (final extension) and adding $165,000 for a revised maximum NTE of $1,410,000.

b. Background: Under the Contract, PCG submits claims to third party payers and receives electronic and paper remit data. There is also a separate payer enrollment process for OHA to receive Electronic Fund Transfers (“EFT”) for direct deposit of reimbursements to OHA. PCG manages that enrollment process under the Contract and has configured its internal billing systems to work with OHA data.

SP-1113-19 was implemented to extend the Contract for an additional year to provide time to issue a Request for Proposals (“RFP”). The SP was posted on ORPIN, no protests were received and SP-1113-19 was approved. During that fiscal year (FY 2019/20), it was determined a one-year contract extension would not provide sufficient time to develop the competitive solicitation, as more requirements were discovered through market research. As a result, OHA requested authority to extend PCG’s contract for four years, while a fully, comprehensive RFP could be developed. SP-1113-19 Amendment #1 was approved on April 28, 2020, and the PCG Contract was amended through July 31, 2024 and increase the contract by $540,000, for a new NTE of $1,350,000. After SP-1113-19 Amendment No. 1 was approved, a rate increase for contract years 3 (2022-23) and 4 (2023-24) was approved (the first rate increase since 2014) raising the annual reimbursement from $135,000 to $165,000.

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c. Current Need: An additional $60,000 is needed beyond what was added via SP-1113-19 Amendment No. 1 to reflect the agreed upon rate increase and allow OSPHL to amend PCG’s contract a final year (August 1, 2023-July 31, 2024).

Special Procurement Requests Spending

SP-1113-19 $810,000

SP-1113-19 Amendment 1 $540,000 / $1,350,000 SP-1113-19 Amendment 2 $ 60,000 / $1,410,000

Conract/Amendments Increase / Total

OHA #145893-14 $135,000

OHA #145893-14 Amend #1 $135,000 / $270,000 OHA #145893-14 Amend #2 $135,000 / $405,000 OHA #145893-14 Amend #3 $135,000 / $540,000 OHA #145893-14 Amend #4 $135,000 / $675,000 DASPS-3166-19-1 (OHA Amd #5) $135,000 / $810,000 DASPS-3166-19-2 (OHA Amd #6) $270,000 / $1,080,000 DASPS-3166-19-3 (OHA Amd #7) $165,000 / $1,245,000 OHA #145893-14 Amend #8 (DASOBO-0000977 Amd 1) $165,000 / $1,410,000

d. Proposed Contracting Procedure:

• DAS PS will issue a public notice on ORPIN, as required by Administrative Rule (OAR 125-247-0287), regarding approval of this SP Amendment.

• Advertisement of the SP Amendment will include provisions that any affected person may protest the approval of the SP Amendment.

• If no protests to this SP Amendment are received or sustained, DAS PS will enter into negotiation with PCG to amend and extend Contract No. DASPS-3166-19 (OHA-145893-14).

• Comprehensive RFP development will continue as follows:

o complete and document final market research (“MR”) findings, o identify/refine list of critical business needs (and components) which can be met by available vendor solutions, o update IT oversight documentation – obtain necessary approvals from Enterprise Information Services (“EIS”), o construct a new Scope of Work (“SOW”), o present the revised SOW with all documentation in a request to Office of Contracts and Procurement construct and issue a formal competitive solicitation document, and o evaluate “best fit” solutions that deliver most significant value for the IT investment.

11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

The current contract with PCG:

• provides for consistent, accurate, and uninterrupted service delivery ensuring maximum return on

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OHA’s considerable investment in OSHPL’s critical operational and business processes, and

• represents a best value and best practice course of action for OHA in supporting the time to construct a more well-informed, well-considered and timely procurement activity for continuing these services following contract expiration while keeping with State and Agency IT investment strategies.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

_ X_ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

OHA issued a Formal RFP (OHA-3699-14) for Billing Services for the OSPHL, which was a publicly noticed competitive process that resulted in the award of Contract No. DASPS-3166-19 (OHA-145893-14) and further extended by State CPO’s original approval of SP-1113-19. Only two SP-1113-19, Amendment No. 1 proposers responded to the original RFP and no one protested SP-1113-19. The procurement activity anticipated at the end of the extended contract period will comply with the Oregon Procurement Code, ORS 279A and ORS 279B and will be of a competitive nature. Approval of the request would afford OHA sufficient time to develop a comprehensive RFP which, upon approval to release, would foster competition among potential service providers.

and

______ (b)(i) will result in substantial cost savings to the contracting agency or to the public because:

or

_X_ (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because:

The performance of Contract No. DASPS-3166-19 provides critical billing services for OSPHL and ultimately, the citizens of Oregon. Loss of the services through this contract would require OSPHL to hire a workforce to handle billing, as one does not currently exist, and force a transition to a paper billing process, causing enormous delays in billing processing and payments in addition to creating unbudgeted expenses.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request submitted through OregonBuys. Agency may elect to attach a signed Request as a pdf file through OregonBuys or submit a signed hard copy Request.

Signature: e.g. Electronically in OregonBuys _________________ Name/Title: Date: