R-119081 JPMC Drugs and Pharmaceuticals Emergency Purchase Ext II APO Signedehd.pdf

EMERGENCY PURCHASE EXTENSION

Extension Page 1 of 2 State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Version 22.2

Zip: 43017-1091State: OHCity: DublinAddress: 7000 Cardinal Place

Vendor: Cardinal Health 110, LLC

Zip: 62702State: ILCity: SpringfieldAddress: 1000 E Converse Street

Division: Bureau of Strategic SourcingAgency/University: Central Management Servces

Extension Justification Reference #: 22-416CMS-BOSS4-R-119081

Original Emergency Term Start Date: Oct 1, 2021 Original Emergency Term End Date: Dec 29, 2021

Amount of original: Estimated $25,000,000 Actual or Estimated*: Estimated *

Expected Extension Start Date: Mar 1, 2022 Expected Extension End Date*: Apr 30, 2022

Amount of extension expenditure: $17,000,000 Actual or Estimated*: Estimated *

Select the type of funding to be used: Federal Funds State Appropriated Funds State Grant Funds Other

Describe the scope of the original emergency (supply, service, etc.):

This is an emergency Joint Purchase Master Contract for drugs and pharmaceuticals to be purchased on an as-needed basis during the contract period by the Illinois Department of Human Services and Illinois Department of Public Health.

Describe the scope of the extension (supply, service, etc.). Show justification for extending the original emergency contract, and explain why the extension need cannot be met through a competitive process:

Bids for Bid 21-416CMS-BOSS4-B-22340 (B-22340) JPMC Drugs and Pharmaceuticals were opened 08/04/2021. The notice of award for B-22340 was published 08/25/2021, which started the 14-day protest period. A protest was received by the Chief Procurement Officer (CPO) on 09/02/2021, which stayed the procurement until 09/30/2021 when the CPO issued the determination to deny the protest.

After review of the CPO’s determination and consultation with the Business Enterprise Program, CMS determined that it was in the State's best interest to cancel the solicitation (B-22340) and rebid in order to encourage additional participation of minority, women, and persons with disability owned businesses. Accordingly, B-22340 was canceled 10/18/2021 pursuant to Section 1.2040(a) of the CPO- GS Procurement Rules, which provides that "[a]ny solicitation may be cancelled before or after opening" when it is "in the State's best interest". Section 1.2040(b)(1) further provides that the reasons for cancelling may "includ[e], but [are] not limited to" the reasons set forth in the non-exhaustive list provided in the rules.

As the prior contract, 18-416CMS-BOSS4-P-376 JPMC Drugs and Pharmaceuticals, expired on 09/30/2021 and could not be extended again pursuant to 30 ILCS 500/20-60(a), the current emergency contract was awarded in order to ensure no lapse in coverage for needed drugs and pharmaceuticals.

The rebid, 22-416CMS-BOSS4-B-25474 (B-25474), was published 10/26/2021 with a bid opening date of 12/14/2021. CMS worked with BEP prior to advertisement of B-25474 to confirm the BEP goal set for the contract is appropriate. The BEP was recalculated at 9% (vs.

8% for B-22340). At a mandatory prebid conference held on 11/09/2021, CMS staff answered questions related to BEP and stressed the importance of compliance with BEP requirements, including submitting a utilization plan demonstrating how the bidder intends to meet the BEP goal or requesting a waiver by demonstrating good faith efforts. Based on questions asked by potential bidders and the time needed to respond, the bid opening date may need to be extended.

Extension Page 2 of 2 State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Version 22.2

Zip: 43017-1091State: OHCity: DublinAddress: 7000 Cardinal Place

Vendor: Cardinal Health 110, LLC

Zip: 62702State: ILCity: SpringfieldAddress: 1000 E Converse Street

Division: Bureau of Strategic SourcingAgency/University: Central Management Servces

The current emergency contract (P-30786) expires 2/28/2022 which will likely not allow sufficient time for reviews before the current emergency contract expires. A new solicitation was published under 22-416CMS-BOSS4-B-25474, with the bid opening on 12/14/2021, the Notice Of Award published 01/26/2022, which started the 14-day protest period. A protest was received by the CPO’s Office on 02/07/2022, which stays the procurement until the CPO issues the protest determination. Based on these considerations, CMS is requesting an additional two (2) month extension of this emergency contract.

In the event the new contract is not executed by 02/28/2021, and in consideration of the contract duration limitation and the fact that we cannot extend the current contract, Cardinal Health 411, LLC has agreed to a 60-day emergency contract at the same terms and conditions as the current contract to ensure that there is not a lapse in service. When the new contract is executed, we intend to cancel the emergency contract.

Was authorization to proceed verbally given? No Yes NA

Term of emergency procurement shall not exceed 90 days. Contract may be extended beyond 90 days if CPO determines additional time is necessary; however, prior to execution of extension, CPO must hold a public hearing and provide written determination.

*Estimated end date and cost will be reported later.

Signatures Reference #: 22-416CMS-BOSS4-R-119081

I am requesting an extension of the requested emergency contract. I know and understand the contents of this statement and all statements herein are true and correct to the best of my knowledge.

Agency Signature: Title: Assistant Deputy Director

Printed Name: Krysti Rinaldi Date: Feb 2, 2022

CPO Signature

Based on my review, I authorize the Agency to proceed in accordance with the published Notice referenced above.

Based upon my review, I authorize the Agency to proceed with the following changes:

Approved CPO Signature: Date:

Page of

State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Version 22.2

EMERGENCY PURCHASE EXTENSION

Extension Page of State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Version 22.2 Extension Justification Actual or Estimated*:

Actual or Estimated*:

Select the type of funding to be used:

Describe the scope of the original emergency (supply, service, etc.):

Describe the scope of the extension (supply, service, etc.). Show justification for extending the original emergency contract, and explain why the extension need cannot be met through a competitive process:

Was authorization to proceed verbally given?

Term of emergency procurement shall not exceed 90 days. Contract may be extended beyond 90 days if CPO determines additional time is necessary; however, prior to execution of extension, CPO must hold a public hearing and provide written determination.

*Estimated end date and cost will be reported later.

Signatures I am requesting an extension of the requested emergency contract. I know and understand the contents of this statement and all statements herein are true and correct to the best of my knowledge.

CPO Signature 11.0.0.20130303.1.892433.887364

After review of the CPO’s determination and consultation with the Business Enterprise Program, CMS determined that it was in the State's best interest to cancel the solicitation (B-22340) and rebid in order to encourage additional participation of minority, women, and persons with disability owned businesses. Accordingly, B-22340 was canceled 10/18/2021 pursuant to Section 1.2040(a) of the CPO-GS Procurement Rules, which provides that "[a]ny solicitation may be cancelled before or after opening" when it is "in the State's best interest". Section 1.2040(b)(1) further provides that the reasons for cancelling may "includ[e], but [are] not limited to" the reasons set forth in the non-exhaustive list provided in the rules.

As the prior contract, 18-416CMS-BOSS4-P-376 JPMC Drugs and Pharmaceuticals, expired on 09/30/2021 and could not be extended again pursuant to 30 ILCS 500/20-60(a), the current emergency contract was awarded in order to ensure no lapse in coverage for needed drugs and pharmaceuticals.

The rebid, 22-416CMS-BOSS4-B-25474 (B-25474), was published 10/26/2021 with a bid opening date of 12/14/2021. CMS worked with BEP prior to advertisement of B-25474 to confirm the BEP goal set for the contract is appropriate. The BEP was recalculated at 9% (vs. 8% for B-22340). At a mandatory prebid conference held on 11/09/2021, CMS staff answered questions related to BEP and stressed the importance of compliance with BEP requirements, including submitting a utilization plan demonstrating how the bidder intends to meet the BEP goal or requesting a waiver by demonstrating good faith efforts. Based on questions asked by potential bidders and the time needed to respond, the bid opening date may need to be extended.

The current emergency contract (P-30786) expires 2/28/2022 which will likely not allow sufficient time for reviews before the current emergency contract expires. A new solicitation was published under 22-416CMS-BOSS4-B-25474, with the bid opening on 12/14/2021, the Notice Of Award published 01/26/2022, which started the 14-day protest period. A protest was received by the CPO’s Office on 02/07/2022, which stays the procurement until the CPO issues the protest determination. Based on these considerations, CMS is requesting an additional two (2) month extension of this emergency contract.

In the event the new contract is not executed by 02/28/2021, and in consideration of the contract duration limitation and the fact that we cannot extend the current contract, Cardinal Health 411, LLC has agreed to a 60-day emergency contract at the same terms and conditions as the current contract to ensure that there is not a lapse in service. When the new contract is executed, we intend to cancel the emergency contract.