REQ-10700-00039329_Approved.pdf

SP No. REQ-10700-00039329_ForCPOSign_Armored Transport Services Page 1 of 6

REQUEST FOR SPECIAL PROCUREMENT No. REQ-10700-00039329

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

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

PS”)

2. Date of Request: June 5, 2023 3. Agency Number: 10700

4. Agency Contact Name: Dion Kerlee 5. Phone: (971) 349-0518

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

7. Time Period Requested: From: November 21, 2023 To: November 21, 2024

8. Total Estimated Cost: $1,179,000

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

Armored Transport Services - The secure collection, transportation and deposit of cash, monetary instruments, other valuable items and related services (“Services”).

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

a. Request:

DAS PS seeks approval of this Special Procurement (“SP”) Request No. REQ-10700-00039329 to extend Price Agreement (“PA”) No. 3396 with Loomis Armored US LLC (“Loomis”) beyond its maximum term of ten (10) years, allowing for sufficient time to complete a formal competitive solicitation to enter into a replacement PA(s) for future services.

b. Background:

DAS PS is the enterprise-wide purchasing authority for the State of Oregon and fulfills a variety of roles within state government, including the procurement of goods and services on behalf of state agencies, leveraging the purchasing power of local governments, state agencies and other states to ensure the cost-effective acquisition of goods and services.

DAS PS maintains a portfolio of established statewide price agreements and multi-jurisdictional cooperative procurements that cover a wide variety of frequently used services and supplies.

State Agencies and cooperative procurement partners rely on DAS PS PA No. 3396 for the secure collection, transportation and deposit of cash, monetary instruments, and other valuable items. The services are provided on scheduled routes based upon the requested pick-up times specified by the requestor.

DAS PS issued a Request for Proposal (“RFP”) 102-1894-12R Armored Vehicle Services on behalf of state agencies and the Oregon Cooperative Procurement Program (ORCPP) March 14, 2013.

The RFP sought to obtain secure collection, transportation and deposit of cash, monetary instruments, other valuable items and related services. Two Proposals were submitted in response to the RFP and, as a result of evaluations, Loomis Armored US LLC was named the Apparent Successful Proposer.

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PA No. 3396 was executed May 21, 2013, with Loomis Armored US LLC. Since it’s execution Loomis has provided secure transport of cash and other valuables from Authorized Purchaser (AP) locations to depositories.

The PA has a maximum term of ten (10) years. The PA’s maximum term ended May 21, 2023. Unable to publish an RFP with sufficient time to conduct a formal procurement process, DAS PS implemented PA section 1.3.3 to extend the PA for an additional six-month term through November 21, 2023, to prevent a lapse in the critical services.

The PA was amended from time to time as follows:

Amendment 1: Incorporated revised Even Exchange Rates to the contract documents that adds the option for Authorized Purchasers to place custom orders of varied denominations of currency to meet specific needs.

Amendment 2: Acknowledged a 2.2% rate increase request that was reviewed and approved by DAS

PS.

Amendment 3: Acknowledged the retirement of the Washington State Purchasing Cooperative (WSPC) and it’s replacement by the Washington State Department of Enterprise Services Master Contracts Usage Agreement (MCUA). This Amendment 3 amends languages in Contract No. 3396 that reference WSPC to reflect the Washington States Cooperative Organization MCUA.

Amendment 4: Acknowledged a 5% rate increase request that was reviewed and approved by DAS PS.

Amendment 5: Acknowledge an 11% rate increase request that was reviewed and approved by DAS

PS.

Amendment 6: Extended the term of the agreement one (1) year.

Amendment 7: Extend the term of the agreement one (1) year.

Amendment 8: Extended the term of the agreement two (2) years and acknowledged a 5.5% rate increase.

Amendment 9: Extended the term of the agreement one (1) year.

Amendment 10: Extended the term of the Price Agreement through May 25, 2023, and acknowledged a 30% rate adjustment.

Amendment 11: Extended the term of the Price Agreement, per Price Agreement Section 1.3.3, six (6) months beyond its final term of May 25, 2023, and acknowledged a 20% rate adjustment.

The Price Agreement is annually used by approximately 290 governmental entities in Oregon.

DAS PS has begun the process to develop an RFP to replace the PA.

c. Current Need:

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DAS PS anticipates publishing a formal Request for Proposal to establish a replacement PA(s) in the first calendar quarter of 2024. The resulting processes, including contract negotiations and the need for transition time to potentially move service to a new provider(s), necessitates keeping the current agreement in place until November 2024.

Quarterly 6 months 1 year

$295,000 $589,000 $1,179,000

d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, DAS PS will issue a public notice of the approved SP on the State of Oregon’s OregonBuys eProcurement system for a period of seven (7) calendar days.

2. The notice will include provision that any affected party may protest the approval of the SP.

3. DAS PS will respond to and resolve all protest(s) of the SP, if any.

4. If no protests are received and sustained, DAS PS, will proceed with amending the PA.

5. The resulting PA amendment will be posted in the OregonBuys eProcurement system.

6. Pursuant to Oregon Revised Statute (“ORS”) 291.047 and related administrative rules, DAS PS will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the PA.

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

• Approval of this special procurement will ensure uninterrupted service delivery, while

Stakeholders and end users are consulted in development of the specifications for the RFP. This will ensure their needs will be met by any resulting agreements. Changes in service delivery expectations, that may have occurred since the original agreement was established, and other requirements will need to be verified and incorporated into the RFP.

• Approval of this special procurement will also support additional engagement of the supplier pool, pre-solicitation, in the form of a formal Request for Information (RFI). The RFI will seek to establish any changes in the industry standards for service providers. The RFI will also serve to identify suppliers interested in providing the services.

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:

• RFP No. 102-1894-12R for Armored Vehicle Services was a publicly noticed competitive process that resulted in the award of the PA.

• Request for Information (“RFI”) No. DASPS-3169-19 for Armored Vehicle Services, published on the Oregon Procurement Information Network (“ORPIN”) on May 15, 2019, sought to determine

SP No. REQ-10700-00039329_ForCPOSign_Armored Transport Services Page 4 of 6 the number of companies willing and able to provide Armored Vehicle Services to state agencies and ORCPP participants. The responses were underwhelming with only four (4) firms responding.

• In the event the Special Procurement is approved, DAS PS will be publishing a new RFI to seek input from potential proposers regarding their service delivery capabilities. DAS PS anticipates conducting significant outreach to ensure that any suppliers capable of providing the requested services are registered in OregonBuys and notified of future opportunities to provide services.

• Approval of this Special Procurement will afford DAS PS sufficient time to seek out qualified proposers and ensure they are registered in OregonBuys. Approval will also allow DAS PS to recruit additional knowledgeable subject matter experts to aid in the development of a competitive formal RFP, which will establish evaluation criteria and foster competition among the potential service providers.

• Potential suppliers have been engaged during the term of the PA and are anticipating the release of an RFP in the future.

and

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

or

(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:

• Approval will prevent a lapse in service while a new RFP process is undertaken. Were the PA to expire, it would result in APs incurring expense in seeking out services elsewhere and would have a negative impact on staffing and workloads.

• Were the PA allowed to expire, APs would be required to conduct multiple separate processes to enter into new PAs. This would result in procurement staff shifting priorities while already navigating conflicting priorities and would result in increased costs to APs.

• Approval will prevent multiple PAs for the same services, with varied terms and conditions, from being executed by APs.

• APs, in seeking alternative means of services, would not be able to leverage aggregated spend to obtain the best available rates.

• Without the services APs would be without the secure transportation and deposit of cash, monetary instruments, other valuable items, and they would have to find other means of facilitating the deposits which may be less secure or counter to law and/or policy.

• There are no known alternative services for the transportation and deposit of cash, monetary instruments, other valuable items other than Armored Transport Services.

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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 the OregonBuys eProcurement system. 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. Pursuant to Oregon Revised Statute (“ORS”) 291.047 and related administrative rules, DAS PS will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the PA Amendment.

APPROVED:

Kelly Mix, State Chief Procurement Officer, Date:

Department of Administrative Services