Elizabeth Steiner, MD State Treasurer

George Naughton Deputy State Treasurer

Memorandum

TO George Naughton, Deputy State Treasurer

FROM Kevin Willingham, Business Services Manager

RE Contract-specific Special Procurement Request

AVS to Azure and M365 Government Community Cloud (GCC) to Commercial

Migrations

DATE October 8, 2026

ORS 279B.085 provides that state contracting agency with procurement authority may make contract-specific special procurement procurements of goods and services when a special circumstances exists. Under ORS 279B.085(3), the State Treasurer may approve a special procurement when a written request justifies the use of and describes the procedure used to select the vendor.

The Information Technology Division (IT) requests you declare that authorize a special procurement to award a contract to Redapt, Inc., an end-to-end technology services and consulting company to provide migration services from Azure VMWare (AVS) to Azure and the Microsoft 365 GCC to Commercial environments.

Investing and protecting the state’s public funds is an obligation delegated to the State Treasurer by the Oregon Legislature (Oregon Revised Statute ORS chapter 293). The Investment Division relies on BlackRock (Aladdin) and Bloomberg applications which are resource intensive and have not performed acceptably on the current Azure VMware Solution (AVS). An outage or disruption is not inconvenient. The financial harm to the State of Oregon is measured by billions of dollars. The objective is to migrate the applications from AVS to a fast, secure, and redundant Azure Commercial native environment to ensure consistent performance of these critical applications and that they are continuously available to staff.

Docusign Envelope ID: 8EE17081-0D17-8F25-8284-C7C1AF70FDCE

Oregon State Treasury Redapt, Inc. Special Procurement Approval 2

Concurrently, to complete the migration for the investment-related applications work the migration requires setting up a new tenant and performing a full migration of all Microsoft applications.

The two migrations are necessary for the following reasons:

1. Broadcom’s pricing reservations end on August 31, 2027, which means that the migrations must be completed by May 31, 2027, to avoid significantly higher prices.

2. Treasury does not have a support contract with Broadcom, which prevents Treasury from installing security patches that address vulnerabilities.

3. The Microsoft [Azure] VMWare Environment does not:

a. Have failover or redundancy functionality.

b. Does not support the entire environment in both regions.

c. Does not allow Investment Division’s virtual machines to be used for trading.

d. Give Treasury the ability to secure or patch the ESX host.

e. Allow Treasury to fully create network segmentation or zero trust architecture.

Oregon law grants the State Treasurer the authority to procure and contract for goods, services and personal services related to the programs delegated to the State Treasurer.

(ORS 279A.050(5)). The procurement and contracting for the migration services are subject to the Public Contracting Code. (ORS 279A.025(2)(p)).

To prevent the loss or theft of state funds, and to ensure the Treasurer meets her obligations under the Oregon law, the situation is untenable and constitutes an special circumstance under the context of ORS 279B.085. Initiating an special procurement is necessary to protect the public and its funds and ensure the Treasurer may execute the obligations of her office.

To select a vendor, IT received a recommendation from Microsoft Unified Services to consider Redapt, Inc. as the service provider. The two reasons provided was that Microsoft originally subcontracted the work of creating the current environment to Redapt, Inc. The company is already familiar with the architecture and function of our current environment.

The familiarity will avoid redundant work. In addition, Redapt, Inc. will offset its cost by using credits received from Microsoft, which other vendors can provide. The offset results in substantial savings. Oregon participates in a NASPO ValuePoint Master Agreement to purchase Redapt’s services. We are attempting to honor a competitive process to the extend the special circumstances allows.

Acknowledgement and Approval

After considering the written request above, I find that under the justification provided above, the special procurement is unlikely to diminish competition for public contracts due to

Oregon State Treasury Redapt, Inc. Special Procurement Approval 2 the specific circumstances described above. That protecting Oregon substantial investments directly promotes the public interest in a manner that could not practicably be realized under another procurement method under ORS 279B.085. Accordingly, I approve the use of a special procurement in this specific instance. I direct that public notice be given publishing the notice in OregonBuys for seven days prior to awarding the contract.

George Naughton Deputy State Treasurer

Date

10/8/2026