REQ-10700-000172813_AMD-1_CABroadcom_DCS_Approved.pdf

REQ-10700-00172813 (3368), AMD-1_CA Broadcom_DCS Page 1 of 6

REQUEST FOR SPECIAL PROCUREMENT No. REQ-10700-00172813 (Original #S-10700-00003368), Amendment No. 1

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

1. Requesting Agency Name: Department of Administrative Services, State Procurement Services (“DAS SPS”) on behalf of DAS Enterprise Information Services (“EIS”), Data Center Services (“DCS”)

2. Date of Request: February 3, 2026 3. Agency Number: 107009

4. Agency Contact Name: Rachel Smith 5. Phone: (971) 707-0263

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

7. Amendment Time Period Requested: From: June 30, 2028 To: June 30, 2033

8. Total Estimated Cost for Amendment Time Period: $32,000,000

9. Title: Supplies and/or Services to be acquired: Continued CA/Broadcom Software License and

Support Services

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

a. Amendment Request:

DAS SPS, on behalf of DCS, requests approval of Special Procurement (“SP”) #REQ-10700-00172813 (Original #S-10700-00003368), Amendment No. 1 (“SP AMD-1”) to extend the term until June 30, 2033 and increase the total estimated cost by $32,000,000 to Contract #PO-10700-00019675 to CA Technologies, a Broadcom Company (formerly CA, Inc.) (“Contractor” or “CA”) for:

a. CA Software Licensing:

• Perpetual Licensing

• Subscription Licensing

• Usage and Maintenance Fee (“UMF”) Licensing

b. CA Professional Services

c. CA Education Services

b. Background:

2022: Leveraging Special Procurement No. SP-514-11, DCS issued Purchase Order #14362 under the Master Agreement (“MA”), which extended the term one final year, June 30, 2022 – June 29, 2023, to provide enough time for negotiation and award of the new, anticipated Contract; the subject of this SP Request.

• SP-514-11 was executed July 26, 2011 and provided a procurement process through which DCS can obtain continued maintenance and support services through the optimization phase for software and hardware currently within its environment. SP-514-11 expired December 31, 2024.

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2026: SP No. S-10700-0003368, was executed June 30, 2023, and provides a procurement process through which DCS can obtain continued critical maintenance and support services through optimization of software and hardware currently within its environment. SP No. S-10700-0003368 will expire June 30, 2028. The need for this critical software continues and the special procurement amendment is necessary to allow DCS to continue to purchase this critical software in the most efficient and cost-effective way. This also affords additional support typically; resellers do not have access to. Cost Table 10.b (below) reflects both past spend and anticipated total estimated costs until 6/30/2033.

Cost Table 10.b

Special Procurement Year Spend

SP-514-11 Years 2011-2022 $30,471,810.17

S-10700-0003368 2023-2026 $11,313,323.38

SP AMD-1, REQ-10700-

00172813

2026-2033 Annual Total

6/30/2026 $5,274,733.79

8/30/2027 $4,521,200.39

8/30/2028 $4,521,200.39

8/30/2029 $4,521,200.39

8/30/2030 $4,521,200.39

8/30/2031 $4,521,200.39

Software and support exp. 6/30/2033

8/30/2032 $3,767,666.98

Estimated Total Cost: $31,648,402.72

For additional historical and background information see Attachment No. 1, Original SP No. S-10700-00003368

c. Current Need:

DAS SPS, on behalf of DCS, seeks approval of this SP Amendment No. 1 to extend Foundation Agreement (Contract) No. PO-10700-00019675 with CA for the Software Package and Services to June 30, 2033 and the maximum not-to-exceed compensation of $32,000,000 given the following findings of fact:

1. The current Contract expires June 30, 2028. DAS SPS will extend the Contract to June 29, 2033.

2. To carry out its charge and provide uninterrupted services and support to State agency users, DCS must continue to maintain the CA products currently within its environment.

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3. Although the individual CA software products are available through Software Value-Added Resellers (“SVARs”), CA is the sole provider of the Software Package (suite of software products currently within DCS’ environment), including related maintenance and support services and professional services. CA provides the Software Package and related Services to DCS at significantly reduced pricing than what a SVAR can offer.

4. Mission Critical applications running on the mainframe and using CA software products:

d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rules (“OAR”) 125-247-0287, DAS SPS will issue public notice (“Notice”) regarding approval of this SP AMD-1 on the OregonBuys® eProcurement system for a period of seven (7) calendar days.

2. The Notice will include provisions that any Affected Person(s) may protest the approval of the SP AMD-1.

3. DAS SPS, working with DCS, will respond to and resolve all protests, if any.

4. If no protests to this SP AMD-1 are received or sustained, DAS SPS, on behalf of DCS, will proceed with directly amending Contract No. PO-10700-00019675 with CA for the software maintenance and support services set out in the original SP (Attachment No. 1).

5. DAS SPS will work with EIS and obtain its endorsement prior to executing the Contract Amendment, as required.

6. Pursuant to OAR 137-045-0015, DAS SPS will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the Contract Amendment, as required.

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

With the approval of the Original SP (Attachment No. 1) and execution of the corresponding Contract, the Contract became subject to the terms of the SP. Any further extension of the Contract terms or

REQ-10700-00172813 (3368), AMD-1_CA Broadcom_DCS Page 4 of 6 increase in the total estimated cost(s) can only be requested and approved through a Special Procurement Amendment Request.

The State has a direct contractual relationship with CA for over 20 years. CA is the only entity that can provide the ongoing licensing, maintenance and support services for the software products set out in Original SP No. S-10700-00003368.

CA/Broadcom, as the owner and provider of the licensed products, can provide the State with the lowest pricing.

Cost savings: Over the next 7 years, the State will save approximately $15,139,545.62 ($2,162,792.00 per year).

While the individual CA software products are available through Software Value-Added Resellers (“SVARs”), CA is the sole provider of the Software Package (suite of software products currently within DCS’ environment) including related maintenance and support services and professional services. CA provides the Software Package and related Services to DCS at significantly reduced pricing than what a SVAR can offer.

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:

At the time the State conducted the Sole Source procurement, CA Technologies was the sole provider of the Software and Services. CA has since been acquired by Broadcom, Inc., which opened the product line to SVARs. However, to obtain the necessary licensing and Services for the CA software products currently within DCS’ environment, DCS would have to work through two or more layers of SVARS or contractors.

• DAS currently has one Information Technology (“IT”) SVAR Price Agreement (“PA”) in place with SHI International Corporation (“SHI”); PA #6454.

o SHI does not currently have an agreement with CA, which means SHI would have to obtain CA Software licensing through another SVAR. This would introduce two pricing mark-ups, one from each SVAR, and significantly increase overall costs to DCS.

o Services are not available under SHI PA #6454. DCS would have to pursue software support Services and professional Services under different PAs or contracts, or conduct separate procurement processes. Again, this would likely increase costs to DCS and may introduce service level inconsistencies.

• If a new procurement process is required, it could potentially result in three (3) or more separate contracts; one for software licensing, one for software support services, and one for professional services (e.g., training, education), all of which are currently provided under one contract directly from the software manufacturer (CA) at the best possible pricing and consistent service levels.

o Three or more separate contracts would increase DCS’ contract administration responsibilities and possibly introduce challenges navigating software support services.

o Software support services include installation of product updates, migrations for major software releases, and remote troubleshooting. Obtaining software updates or major releases from one contractor and the related installation or migration support services

REQ-10700-00172813 (3368), AMD-1_CA Broadcom_DCS Page 5 of 6 from another contractor is neither efficient nor desirable.

o Some CA products currently provided in DCS’ CA Software Package cannot be replaced because there are no ‘like’ products available in the market.

The same justification statements and findings of facts set out in SP Attachment No. 1 still apply.

and

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

CA, as the owner and provider of the licensed products, can provide the State with the best pricing.

Obtaining the Software and Services from a SVAR would introduce an additional 5-20% over and above the current cost from CA. The following Table demonstrates the additional costs DCS estimates it would incur over the 7-year period of performance requested in this SP using an average of 12.5% as an example.

Description Annual 2026 CA Costs

Estimated Annual 2026 SVAR Costs (Using the average of 12.5%)

Estimated Yearly Savings (purchasing direct form CA)

Total Estimated 7-Year Savings (purchasing direct from CA)

CA Suite of Products (Software Package Including Services)

$4,521,200.00 $5,086,350.00 $565,150.00 $3,956,050.00

The same justification statements and findings of facts set out in SP Attachment No. 1 still apply.

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 same justification statements and findings of facts set out in SP Attachment No. 1 still apply.

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:

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PART B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and (b)(A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125-247- 0288 implement ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The Authorized Agency shall post the Public Notice on OregonBuys®. The Special Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person(s) in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Authorized Agency shall comply with the requirements of ORS 279A.165 and OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

3. Authorized Agency shall comply with all Enterprise Information Services (“EIS”) conditions and requirements prior to Contract Amendment execution, if any.

APPROVED:

Kathryn Jones, State Chief Procurement Officer Date:

Department of Administrative Services, State Procurement Services

5/4/26