R-122840 JPMC Drugs and Pharmaceuticals Emergency Purchase Statement 220304.pdf

EMERGENCY PURCHASE STATEMENT

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

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

Vendor: Cardinal Health 110, LLC

Zip: 62522State: ILCity: SpringfieldAddress: 1000 E Converse Street

Division: Bureau of Strategic SourcingAgency: Central Management Services (CMS)

Emergency Purchase Details Reference #: 22-416CMS-BOSS4-R-122840

Emergency Category (select the appropriate option from the drop-down menu below):

To prevent or minimize serious disruption in critical State services that affect health, safety, or collection of substantial State revenues

Reason for selection of this particular vendor:

18-416CMS-BOSS4-P-376 JPMC Drugs and Pharmaceuticals expired 09/30/2021. 30 ILCS 500/20-60(a) limits the duration of contracts to ten (10) years inclusive of renewals and extensions and as of its expiration date of 09/30/2021, this contract was at the ten-year mark. As such, CMS established an emergency contract from 10/01/2021 through 12/28/2021 (22-416CMS-BOSS4-P-30786) to allow time for the completion of the competitive process.

Efforts to establish a new contract have been ongoing since June 2020. The requisition was approved 06/30/2020 and the first attempt to competitively procure was bid 21-416CMS-BOSS4-B-16903 (B-16903) published 10/14/2020 with a bid opening date of 01/05/2021.

After bid opening, it was determined that the solicitation did not provide for consideration of all factors of significance to the State and bid B-16903 was canceled 01/06/2021.

The next bid, 21-416CMS-BOSS4-B-17371, was published 03/04/2021 with a bid opening of 04/08/2021 and was subsequently canceled 05/13/2021 after the buyer determined that canceling and improving the IFB was again necessary.

Bid 21-416CMS-BOSS4-B-22340 (B-22340) JPMC Drugs and Pharmaceuticals was published 06/04/2021 and bids 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.

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 goal was recalculated at 9%

(vs. 8% for B-22340). At a mandatory pre-bid 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.

In the meantime, to ensure continuity of services, the emergency contract (22-416CMS-BOSS4-P-30786) was extended for two months, from 12/29/2021 through 02/28/2022 to allow additional time for the completion of the competitive process.

The Notice of Award for B-25474 was published 01/26/2022, which started the 14-day protest period. The incumbent vendor for P-30786, Cardinal Health 110, LLC, is the awarded vendor for B-25474. A protest was received by the CPO’s Office on 02/07/2022, which

Emergency Statement Page 2 of 2 State of Illinois Chief Procurement Office for General Services Emergency Purchase Statement Version v.22.2

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

Vendor: Cardinal Health 110, LLC

Zip: 62522State: ILCity: SpringfieldAddress: 1000 E Converse Street

Division: Bureau of Strategic SourcingAgency: Central Management Services (CMS) stays the procurement until the CPO issues the protest determination. Based on these considerations, CMS intended to extend the emergency contract (P-30786) for an additional two (2) months to allow time for resolution of the protest and completion of the competitive process. The notice to extend was published 02/09/2022 and the public hearing for the extension as required by 30 ILCS 500/20-30(a) was scheduled for and occurred on 02/24/2022.

Due to circumstances outside of CMS' control, the documentation required to execute the extension was not completed in time to move forward; therefore, the only available solution to ensure continuity of services is to declare a second emergency. Cardinal Health 110, LLC has agreed to a new 90-day emergency contract at the same terms and conditions as the current contract (P-30786) to ensure that there is not a lapse in service. Any break in service would be extremely detrimental to the Department of Human Services and Department of Public Health and their constituents who rely on these drugs and pharmaceuticals. This 90-day emergency should allow time for resolution of the protest and completion of the competitive process. When the new contract is executed, we intend to cancel the emergency contract.

Description of supplies or services to be provided:

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.

Is there an existing State contract available for the required supplies or services? Yes No

Expected Start Date: Feb 28, 2022 Estimated End Date*: May 28, 2022

Amount of this expenditure is: $25,000,000 Actual or Estimated*: Estimated *

*Estimated end date and cost will be reported later.

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

Signature This emergency purchase was made with as much competition as is practicable under the circumstances. Best efforts were utilized to include contractors certified under the Business Enterprise Program in the process.

I am authorized to make this emergency purchase, and 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: Agency Purchasing Officer

Printed Name: Will Stephens Date: Mar 3, 2022

State of Illinois Chief Procurement Office for General Services Emergency Purchase Statement V.22.2 Emergency Statement Page of

EMERGENCY PURCHASE STATEMENT

Emergency Statement Page of State of Illinois Chief Procurement Office for General Services Emergency Purchase Statement Version v.22.2 Emergency Purchase Details Emergency Category (select the appropriate option from the drop-down menu below):

Reason for selection of this particular vendor:

Description of supplies or services to be provided:

Is there an existing State contract available for the required supplies or services?

If Yes is checked above, explain why the existing contract does not meet the need:

Actual or Estimated*:

*Estimated end date and cost will be reported later.

Select the type of funding to be used:

Signature This emergency purchase was made with as much competition as is practicable under the circumstances. Best efforts were utilized to include contractors certified under the Business Enterprise Program in the process.

I am authorized to make this emergency purchase, and I know and understand the contents of this statement and all statements herein are true and correct to the best of my knowledge.

11.0.0.20130303.1.892433.887364

Efforts to establish a new contract have been ongoing since June 2020. The requisition was approved 06/30/2020 and the first attempt to competitively procure was bid 21-416CMS-BOSS4-B-16903 (B-16903) published 10/14/2020 with a bid opening date of 01/05/2021. After bid opening, it was determined that the solicitation did not provide for consideration of all factors of significance to the State and bid B-16903 was canceled 01/06/2021.

The next bid, 21-416CMS-BOSS4-B-17371, was published 03/04/2021 with a bid opening of 04/08/2021 and was subsequently canceled 05/13/2021 after the buyer determined that canceling and improving the IFB was again necessary.

Bid 21-416CMS-BOSS4-B-22340 (B-22340) JPMC Drugs and Pharmaceuticals was published 06/04/2021 and bids 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.

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 goal was recalculated at 9% (vs. 8% for B-22340). At a mandatory pre-bid 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.

In the meantime, to ensure continuity of services, the emergency contract (22-416CMS-BOSS4-P-30786) was extended for two months, from 12/29/2021 through 02/28/2022 to allow additional time for the completion of the competitive process.

The Notice of Award for B-25474 was published 01/26/2022, which started the 14-day protest period. The incumbent vendor for P-30786, Cardinal Health 110, LLC, is the awarded vendor for B-25474. 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 intended to extend the emergency contract (P-30786) for an additional two (2) months to allow time for resolution of the protest and completion of the competitive process. The notice to extend was published 02/09/2022 and the public hearing for the extension as required by 30 ILCS 500/20-30(a) was scheduled for and occurred on 02/24/2022.

Due to circumstances outside of CMS' control, the documentation required to execute the extension was not completed in time to move forward; therefore, the only available solution to ensure continuity of services is to declare a second emergency. Cardinal Health 110, LLC has agreed to a new 90-day emergency contract at the same terms and conditions as the current contract (P-30786) to ensure that there is not a lapse in service. Any break in service would be extremely detrimental to the Department of Human Services and Department of Public Health and their constituents who rely on these drugs and pharmaceuticals. This 90-day emergency should allow time for resolution of the protest and completion of the competitive process. When the new contract is executed, we intend to cancel the emergency contract.