REQ-10700-00038448_MFC FuelForce_EAMFPS_DeputyCPOApproved.pdf

SP #REQ-10700-00038448_MFC FuelForce Page 1 of 6

REQUEST FOR SPECIAL PROCUREMENT No. REQ-10700-00038448

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

1. Requesting Agency Name: The Department of Administrative Services, Procurement Services (“DAS

PS”), on behalf of the Department of Administrative Services, Enterprise Asset Management, Fleet and Parking Services (“DAS EAM F&PS”)

2. Date of Request: May 17, 2023 3. Agency Number: 10700

4. Contact Name: Nancy Doll 5. Phone: (971) 349-2086

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

7. Time Period Requested: From: January 1, 2024 To: December 31, 2033

8. Total Estimated Cost: $721,892

9. Title: Supplies and/or Services to be Acquired: Multiforce Systems Corporation’s FuelForce©, Automated Fuel Management System, Hardware and Software, Maintenance and Support and related Services.

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

a. Request:

DAS PS, on behalf of DAS EAM F&PS, requests approval of Special Procurement (“SP”) No. REQ- 10700-00038448 to establish a new, direct award contract (“Contract”) with Multiforce Systems Corporation (“MSC”) for their FuelForce© Automated Fuel Management System, including Hardware and Software, Maintenance and Support and related Services, beginning January 1, 2024, for an initial two (2) years with the opportunity for renewals for two (2) year periods, for a maximum ten (10) year term with an estimated cost of $721,892.

b. Background:

Fleet and Parking Services (F&PS), under Enterprise Asset Management (EAM), a division of Department of Administrative Services (DAS), the central administrative agency of the State of Oregon, has the mission to provide the best value in transportation and parking service needs throughout the State of Oregon (“State”). DAS EAM F&PS serves 100 plus State of Oregon Agency’s with automobile leasing, vehicle rentals, parking services, state owned refueling locations, and alternate modes of transportation for State employees. DAS EAM F&PS uses high standards of accountability, through full life cycle product management, viable fuel and transportation systems and alternatives, to safeguard the tax dollars allocated for these services.

DAS EAM F&PS is headquartered in Salem, managing over 4,100 vehicles, providing policy oversight to more than 3,000 vehicles owned by other agencies and manages 4,500 parking spaces in Salem, Portland and Eugene. DAS EAM F&PS currently has 53 fueling sites across Oregon, with the following fuel types available; E10-10% ethanol gasoline, E85 also known as flex fuel - gasoline which contains

SP #REQ-10700-00038448_MFC FuelForce Page 2 of 6 between 51 and 83% ethanol, R99 – renewable diesel, Compressed Natural Gas (“CNG”) and recently added Electric Vehicle (“EV”) Charging Stations.

In 1998, DAS conducted a solicitation on behalf of DAS EAM F&PS for Fueling stations, software collection and receiving solutions. In 1999, MSC FuelForce© was awarded Contract No. 107001-157- PA-5. In 2007, Sole Source Justification No. 107-1267-07 was noticed, with no protests received. The resulting Customer Support Service (“CSS”) Contract No. 107-1340-07 was executed, with a total of three (3) renewals. In 2013, a new Sole Source No. 107-3127-13 was issued resulting in new Contract No. 107-3193-13, with the intent to continue the CSS Contract through 2016. In late 2016, Sole Source No. DASPS-1314-16 was noticed and approved, without protest for annual renewal. A retroactive reinstatement and ratification were completed, and all were finalized on April 19, 2023, bringing Contract No. 107-3193-13 current, and extending the agreement out to December 31, 2023.

DAS EAM F&PS has operated with the FuelForce© fuel management system and the MSC automated card readers since 1999. FuelForce© provides proprietary products, updated supplies, software maintenance, technical support, and service. The electronic card reader sites have proprietary FuelForce© automated fueling access systems. These automated fueling access systems control 4-16 basic fuel dispensers and quart oil dispensers, gates, and car and truck wash functions. The automated fuel access system also interfaces with an INCON® bulk fuel tank monitoring system. The fueling facilities have a variety of services available 24 hours a day, seven (7) days a week. Data collected by the automated fuel systems are downloaded into the current FuelForce© fuel management system.

The MSC HOST Server-operated, automated fuel system polls all card reader sites, including all State of Oregon operated remote sites, nightly and downloads to the FuelForce© fuel management system on the server located in Salem. The FuelForce© fuel management system also collects data from a universal fuel credit card system (“WEX”), commercial card lock systems (Petro Card) and other fueling facilities in a variety of formats and interfaces to the existing fleet vehicle maintenance and management software, currently AssetWorks’ Fleet Focus. The WEX conversion was an extensive project supported by FuelForce© and the maintenance agreement. During the recent transition from the Voyager US Bank, “Statewide” Fleet cards under Price Agreement No. 4706 to the new WEX Bank of Utah, State fuel credit cards under Price Agreement No. 1620, “Fleet Card Services”, FuelForce© provided services and support for a smooth transition.

c. Current Need:

DAS EAM F&PS has a continued need for electric card reader automated fueling access systems provided and maintained by MSC FuelForce©, Fueling Station Card Reader Hardware, which includes EV Charging Stations, Software Maintenance and Related Services. In the next two (2) years DAS EAM F&PS projects adding an additional 12-15 EV stations and rebuilding the Salem Motor Pool station. No other fueling stations are planned at this time, but the existing equipment needs Software and Hardware annual maintenance and occasional parts replacement of equipment that is past life expectancy over the course of a total of 10 years. Moreover, the software information collection and transfer is transitioning to a cloud-based system. The 12-15 EV stations will be cloud-based at time of installation, and over the course of this new agreement, the remaining equipment will be transitioned into cloud-based information collection and transfer. As provided in the previous agreement, MSC FuelForce© has agreed to provide updated Hardware at no added cost (when it fails anytime during its normal life cycle), Software and Related Services as a part of the annual maintenance. New Hardware and replacement hardware for either new locations or past life hardware are as noted in Exhibit B – Oregon Customer Support Agreement, containing FuelForce© Price List December 6, 2021.

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Grand Total spend, 1/1/2018 - 7/7/2023: $312,208.41

Average for Grand Total Spend: $52,034.74

Actuals

2018 $54,028.00 2019 $101,616.98 2020 $7,717.50 2021 $91,186.00 2022 $3,475.00 2023 $54,184.93

Projection - Based on actual average, plus 5 % per year

2024 $54,636.48 2025 $57,368.30 2026 $60,236.72 2027 $63,248.55 2028 $66,410.98 2029 $69,410.98 2030 $73,218.10 2031 $76,879.01 2032 $80,722.96 2033 $84,759.11

10-year subtotal $686,891.19

Estimated 5% Contingency – Product Enhancements, Advancements, and Expansion

2024 -2033 $35,000.00

10-Year Projection - Grand Total $721,891.19

d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, DAS PS, on behalf of DAS

EAM F&PS, will issue a public notice (“Notice”) of the approved SP on the State of Oregon’s eProcurement system, OregonBuys, for a period of seven (7) calendar days.

2. The Notice will include provisions that any affected party may protest the approval of this SP.

3. DAS PS will respond to and resolve all protests, if any.

4. If no protests to this SP are received or sustained, DAS PS, on behalf of DAS EAM F&PS, will proceed with direct awarding a new Contract as set out in Section 10.a above.

5. DAS PS will obtain Enterprise Information Services (“EIS”) endorsement before executing the new Contract.

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

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

The State of Oregon has an extensive investment in the FuelForce© Fuel Management System;

including card readers, which were updated over the last couple of years to accommodate the transition to the WEX credit cards.

FuelForce© card reader equipment upgrades to newer versions are on an as need basis and older, but functional units do not require replacement.

DAS EAM F&PS has determined that FuelForce© card readers, in conjunction with data software and the existing fleet vehicle maintenance and management software, is the most efficient use of State resources.

o DAS EAM F&PS conducted an informal request for information from leading manufacturers of Fuel management systems for fleet vehicle tracking, fleet maintenance schedules, fleet and fuel reports and accounting.

o Those vendors who provide the nearest and most compatible fuel management systems would require;

significant hardware replacement, licensing and software maintenance, professional services during a switchover, and hardware for wireless automation.

o The information received did not address the cost of assessments for 40 sites or the costs to bring each site up to current electrical and communication minimum code requirements, which would be required for the extensive removal and replacement of fueling hardware.

o The information did not include any hardware service agreements.

o The information did not include the 11 new Electric Vehicle sites that are currently under construction.

To solicit replacement equipment and maintenance could be quite costly on its own. The budgetary estimate received for the switch over (not including Professional Services during the contract period) is $752,298.74. To add wireless automated fueling, a real asset in both metropolitan and rural areas, information provided estimated an additional $359,829.74 required.

The software used in the FuelForce© card readers is proprietary (see Attachment 1_OregonFuelforceProprietaryLetter2022) and works as a companion to the internal DAS EAM F&PS interface software, FleetFocus, for reporting and accounting.

WEX fleet credit cards which are designed to providing seamless credit card payment and reporting for on the road fleet travel and fuel purchasing needs are used in conjunction with both.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

______ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

1. FuelForce© card reader software, and hardware are proprietary.

2. FuelForce© has no other authorized resellers.

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3. Other systems would not be compatible with FuelForce© card reader software as specifically configured for WEX fleet credit cards, and Petro cards and the receiving platform “Simple Software Solutions” to access the data stored therein.

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:

By utilizing the existing FuelForce© Hardware which was recently updated to accommodate the WEX credit cards as used by Fleet and Parking services to manage fueling needs and data collection for efficient use of state of Oregon Fleet and Parking resources, DAS EAM F&PS averts the extensive cost of equipment replacement.

FuelForce© updates or upgrades Hardware are delivered on an as needed basis, not replacing units that are older, but are fully functional, which assists DAS EAM F&PS in reaching their mission with full life cycle product management.

The efficient use of State funding for DAS EAM F&PS is essential now more than ever. Internet research and an informal request for information performed by DAS EAM F&PS determined that FuelForce© card readers in conjunction with data software and the Fleet Management Information System (FMIS) is the most efficient use of State resources.

The State of Oregon has a long-term investment in the MSC FuelForce© Fuel Management system with developed processes utilizing the WEX credit cards and interfacing with the State’s existing fleet vehicle maintenance and management software, AssetWorks’ Fleet Focus. Replacement of MSC and the FuelForce© Fuel Management System (currently positioned in the 53 fueling sites across the State) through a competitive solicitation would cost an estimated $1.1 million dollars and require F&PS to utilize financial resources not available for a project of this anticipated size. It is in the public’s best interest to leverage this investment the State has already made into the MSC FuelForce© Fuel Management system.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through OregonBuys. Agency may elect to attach a signed Request.

Signature: e.g. Electronically in OregonBuys _________________ Type Name: Date:

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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 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 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 execution (as required).

APPROVED:

20 September 2023 Darwin Kumpula, Deputy State Chief Procurement Officer, Date:

Department of Administrative Services

Darwin Kumpula Digitally signed by Darwin Kumpula Date: 2023.09.20 14:48:58 -07'00'