REQ-10700-00033813_Amd-1_Off-the-Lot Vehicle Procurements_Approved.pdf

SP_REQ-10700-00033813, Amendment #1, Off-the-Lot Vehicle Procurements Page 1 of 5 (formerly REQ-10700-00029042)

REQUEST FOR SPECIAL PROCUREMENT No.

REQ-10700-00033813 (formerly REQ-10700-00029042)

Amendment No. 1

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

1. Requesting Agency Name: Oregon Department of Administrative Services, Procurement Services (“DAS PS”), on behalf of DAS Enterprise Asset Management (“EAM”) Fleet and Parking Services (“FPS”)

2. Date of Request: January 23, 2023 3. Agency Number: 107090

4. Agency Contact Name: Melissa Esser 5. Phone: 971-283-4439

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

7. Amendment Time Period Requested: From: January 23, 2023 To: June 30, 2024

8. Total Estimated Cost for Amendment Time Period: $5,000,000

Note: The Total Estimated Cost approved in the original Special Procurement (REQ-10700- 00029042) remains unchanged.

9. Title: Supplies and/or Services to be acquired:

Light, Medium and Heavy Fleet Vehicles, unused, in-stock (a.k.a. off the lot) for the following brands: Toyota, Ford, Chevrolet, Chrysler, Greenpower, Jeep, Dodge, Ram, Freightliner, GMC, Honda, Hyundai, International, Isuzu, Peterbilt, Kia, Mitsubishi, Nissan and Subaru.

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

a. Amendment Request:

DAS PS on behalf of DAS FPS seeks approval of this Special Procurement (“SP”) #REQ-10700- 00033813 (formerly REQ-10700-00029042), Amendment #1 Request to amend the language in Section 10.a to clarify that:

Light Fleet Agencies may, in addition to light fleet vehicles, procure medium and heavy fleet vehicles under this SP in accordance with the Agency’s procurement authority.

Medium/Heavy Fleet Agencies may only procure medium and heavy fleet vehicles under this SP in accordance with the Agency’s procurement authority.

b. Background:

The State has 22 Price Agreements (“PAs”) in place for fleet vehicles.

The global shortage of semiconductor chips has disrupted the automotive industry.

o Vehicle ordering windows (“Order Banks”) close within minutes of opening.

SP_REQ-10700-00033813, Amendment #1, Off-the-Lot Vehicle Procurements Page 2 of 5 o Vehicle deliveries are significantly delayed.

o Orders are cancelled by vehicle manufacturers unable to fulfill production expectations.

State agencies with vehicle fleets have found it increasingly difficult to locate and procure existing vehicle inventory under the PAs.

January 9, 2023: To support Light Fleet Agencies and Medium/Heavy Fleet Agencies, DAS PS approved original SP # REQ-10700-00029042, attached hereto as “SP_Attachment-1”, which enables an expedited, off-the-lot vehicle procurement process both under the PAs and from non-contracted dealerships.

For additional historical and background information see SP_Attachment-1.

c. Current Need:

The purpose of this SP Amendment #1 Request is to further clarify the Proposed Contracting Procedure as set out in Section 10.d below.

d. Proposed Contracting Procedure:

The following Proposed Contracting Procedure, originally approved in SP_Attachment-1, is amended as follows (new language indicated in bold font and underlining and deleted language indicated by strikethrough and [brackets]).

1. As required by OAR 125-247-0287, DAS PS, on behalf of EAM FPS, will issue a public notice (“Notice”) of the approved SP Amendment #1 on OregonBuys, the State’s current eProcurement system of record, for a period of seven (7) calendar days.

2. The Notice will include provisions that any affected party may protest the approval of [the] SP Amendment #1.

3. DAS PS, working with EAM FPS, will respond to and resolve all protest(s), if any.

4. If no protests to this SP Amendment #1 are received or sustained, the agencies set out in section 10.a of SP_Attachment-1 [above], or DAS PS on behalf of EAM FPS, may pursue the Alternative Procurement Procedures set out in bulleted items 5.a and 5.b below, as necessary.

5. Proposed Alternative Procurement Procedures:

If vehicle inventory does not exist under the PAs, then Light Fleet Agencies and Medium/Heavy Fleet Agencies may acquire Fleet Vehicles using Step 1 or Step 2 set out below.

Regardless of dollar value (Step 1 or Step 2), all Light Fleet Agencies and Medium/Heavy Fleet Agencies will comply with Statewide Policy #107-009-0030, Business Equity, Inclusion and Engagement in Public Procurement, the procedure set out in Statewide Procedure #107-009- 0030_PR, and all applicable law.

a. Step 1: Procurements Under $250,000

i. Once a vehicle(s) is located, a Light Fleet Agency or Medium/Heavy Fleet

SP_REQ-10700-00033813, Amendment #1, Off-the-Lot Vehicle Procurements Page 3 of 5

Agency may immediately issue one of the following ordering instruments:

Special Procurement Purchase Order Contract (“SPPOC”), in substantially the form attached hereto as “SP_Attachment-1”.

Purchaser Order (“PO”) through OregonBuys and attach the terms and conditions from the SPPOC.

[ii. Prior to issuing a SPPOC or PO, and Pursuant to OAR 137-045-0015, Light Fleet Agencies or Medium/Heavy Fleet Agencies will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval for the terms and conditions submitted with the SPPOC or PO for procurements between $150,000 and $250,000.]

iii. In compliance with Statewide Policy #107-009-0030, any Light Fleet Agency or Medium/Heavy Fleet Agency using this SP is required to post the award in OregonBuys or the Electronic Procurement System approved by the State Chief Procurement Officer (“CPO”).

iv. Light Fleet Agencies and Medium/Heavy Fleet Agencies will adhere to the ‘Under $250,000 Process’ set out in the Buyers Guide for Procuring Unused Off-the-Lot Vehicles, attached hereto as “SP_Attachment-2_Updated”.

b. Step 2: Procurements Over $250,000

i. For Fleet Vehicle procurements over $250,000, Light Fleet Agencies and Medium/Heavy Agencies will work directly with DAS PS.

[ii. DAS PS will engage DOJ and obtain legal sufficiency approval for the terms and conditions accompanying the SPPOC or PO.]

iii. In compliance with Statewide Policy #107-009-0030, any Light Fleet Agency or Medium/Heavy Fleet Agency using this SP is required to post the award in OregonBuys or the Electronic Procurement System approved by the State CPO.

iv. Light Fleet Agencies and Medium/Heavy Fleet Agencies will adhere to the ‘Over $250,000 Process’ set out in the Buyers Guide for Procuring Unused Off-the-Lot Vehicles (SP_Attachment-2_Updated).

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

Due to the shortage of vehicles, current PA Holders are not able to fulfill vehicle orders for Oregon State Agencies and Oregon Cooperative Procurement Program members. The Proposed Contracting Procedure detailed in Section 10.d provides an alternate procurement method for State Agencies until the market stabilizes.

The Justification statements provided in SP_Attachment-1 still apply.

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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:

The 18-month Term requested and approved in the original SP (SP_Attachment-1) will provide State Agencies the ability to engage more dealerships while the automotive industry recovers from the silicon drought.

The Proposed Contracting Procedure set out in Section 10.d requires State Agencies to first seek available inventory from the established PAs, which discourages favoritism.

If inventory does not exist under the PAs, the Proposed Contracting Procedure enables State Agencies to seek and procure available vehicles from other, non-contracted dealerships, which supports increased competition.

The Findings provided in SP_Attachment-1 still apply.

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:

Fleet vehicles are used to provide public services and support State Agencies in carrying out their missions such as:

Oregon State Police vehicles, which are used to protect the public in emergency situations and enforce the law.

Oregon Department of Transportation vehicles, which are used in the maintenance of Oregon’s transportation infrastructure.

Oregon Department of Correction vehicles, which are used to safely transport persons in custody.

The Findings and Justification Statements provided in SP_Attachment-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:

SP_REQ-10700-00033813, Amendment #1, Off-the-Lot Vehicle Procurements Page 5 of 5

PART B. The Department of Administrative Services completes 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 ORPIN. 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 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. 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.

APPROVED:

Kelly Mix, State Chief Procurement Officer Date Department of Administrative Services