REQ-10700-00047502_(SP-450-10)_AMD-1_Approved.pdf

SP No. REQ-10700-00047502 AMD #1(SP-450-10) Page 1 of 5

REQUEST FOR SPECIAL PROCUREMENT No. REQ-10700-00047502 (Formerly No. SP-450-10), Amendment No. 1

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 Justice (“DOJ”), Oregon Health Authority (“OHA”) and Oregon State Hospital (“OSH”)

2. Date of Request: September 15, 2023 3. Agency Number: 10700

4. Agency Contact Name: Jennifer Alton 5. Phone: (971) 975-5158

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

7. Amendment Time Period Requested: From: August 6, 2020 To: August 31, 2025

8. Total Estimated Cost for Amendment Time Period: $1,150,000

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

Continuation of Information Technology (“IT”) Capacity Brokered Data Center Services specific to Disaster Recovery (“DR”) services

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

a. Amendment Request:

DAS PS, on behalf of DOJ, OHA and OSH seeks approval of this Special Procurement (“SP”) Amendment No. 1 (formerly SP-450-10) to reinstate, amend and extend Price Agreement (“PA”) No. 5880, issued to Atmosera, Inc., until August 31, 2025. DOJ/OHA/OSH will be the only agencies allowed to continue their previous services under PA #5880 initially issued for Data Center Services.

b. Background:

Data Center Services (“DCS”) provides managed IT services, Colocation, and Cloud Brokering services for agencies within state government as well as selected county and city agencies. DCS is also the Wide Area Network and Internet provider for all state agencies.

To fulfill the need for IT Capacity Brokered Data Center Services, DAS PS conducted a Special Procurement No. SP-450-10 in August 2010, allowing for an alternative contracting process, which resulted in Request for Proposal (“RFP”) No. 107-2511-10 for IT Cloud Computing Services, which was withdrawn March 7, 2011 and replaced with RFP No. 107-2613-11, which resulted in five (5) awards to Sirius, EasyStreet Online Services, Inc., Verizon, Chaves Consulting, and WiPro.

WiPro’s award was withdrawn due to non-responsiveness.

DAS PS entered into Price Agreement No. 107-2745-11 with EasyStreet Online Services, Inc., effective November 11, 2011 to provide IT Capacity Brokered Data Center Services.

SP No. REQ-10700-00047502 AMD #1(SP-450-10) Page 2 of 5

On September of 2013, DAS PS and Enterprise Technology Services (“ETS”), formerly known as the “State Data Center” and Easy Street Online Services, Inc., amended PA No. 107-2745-11 to include Project Management and Disaster Recovery Services.

On April of 2015, EasyStreet Online Services announced its name change to Atmosera, Inc. All references to PA No. 107-2745-11 were replaced with PA No. 5880.

On August of 2016, Department of Justice (“DOJ”) issued Special Procurement No. SP-783-15 approved by DAS PS with Atmosera, Inc., to provide hosting services and professional services to enable DOJ to achieve specific business objectives for its Child Support Enforcement Automated System (“CSEAS”). No protests were received.

In June of 2020, DAS PS, on behalf of OHA/OSH, issued and noticed Special Procurement No. SP- 1220-20 for continued disaster recovery services for the OSH electronic health care systems. No protests were received.

For additional historical and background information see Attachment 1, Original SP-450-10

c. Current Need:

ETS no longer needed Atmosera services under PA No. 5880 for IT Cloud Computing Services and discontinued the use of the PA prior to the expiration of the contract, which expired July 31, 2020.

DOJ and OHA, on behalf of OSH, are continuing to use the services. Specifically, these two (2) agencies and no other entities can utilize PA No. 5880. DAS PS requests that PA No. 5880 be retroactively reinstated until expiration August 31, 2025 to support both DOJ and OHA/OSH.

d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, DAS PS will issue a public notice regarding approval of this SP Amendment No. 1 on the OregonBuys eProcurement system for a period of seven (7) calendar days.

2. The public notice will include provisions that any affected party may protest the approval of the SP Amendment Request.

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

4. If no protests to this approved SP Amendment No. 1 are received and sustained, DAS PS will proceed with amending the PA as set out in Section 10.a above.

5. DAS PS will work with Enterprise Information Services (“EIS”) and obtain its endorsement prior to executing the PA, as required.

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 PA, as required.

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

OHA and DOJ need additional time to initiate and complete a solicitation process, given the timelines, costs, and effort, should they each require the services beyond August 31, 2025.

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OHA Disaster Recovery must be extended to continue supporting hospital operations; most critical is the OSH Medication Management system. This system plays a crucial role in controlling the dispensing and inventory of medications for hospital patients, and the absence of a disaster recovery vendor poses an extremely high risk to patients in receiving accurate medication and associated doses.

Through the DOJ Division of Child Support (“DCS”), the Oregon Child Support Program offers services that improve the well-being of children, reduces reliance on public assistance, encourages family self-sufficient, and returns funds to the state treasury, and saves taxpayers money. The Program helps more than 450,000 parents provide the financial and emotional support their children need. The Program processes over $1 million a day in medical and child support for the State's youngest and most vulnerable residents. DOJ DCS uses the child support enforcement automated system (CSEAS) to support these critical operations.

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:

The original procurement process in this request discouraged favoritism and maximized competition by allowing all Cloud Providers to participate. Both DOJ and OHA will be initiating new solicitations for DR services, if needed beyond August 31, 2025.

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:

1. The PA was awarded as the result of a competitive sealed proposal process.

2. Atmosera, Inc., currently provides High Availability and Disaster Recovery (HA/DR) services for OSH’s electronic health record system of applications, as well as backup for the Domain Name System (DNS) and Active Directory.

3. OHA is positioned to respond quickly to its customer's needs. Without the proposed process in place, ability to respond to customer IT capacity demands will be severely crippled and could result in a potential emergency situation(s) affecting Oregonians.

4. Atmosera, Inc., also provides backup services for the DOJ DCS child support enforcement automated system (CSEAS), supporting the well-being of Oregon’s children under the Oregon Child Support Program.

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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 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 No. REQ-10700-00047502 AMD #1(SP-450-10) 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 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 or Amendment execution (as required).

APPROVED:

Kelly Mix, State Chief Procurement Officer, Date:

Department of Administrative Services