REQ-DASOBO-00015591-PEBB_Final.pdf

REQ-DASOBO-00015591 Page 1 of 6

REQUEST FOR SPECIAL PROCUREMENT No. REQ-DASOBO-00015591

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 Oregon Health Authority (OHA) and Public Employees Benefit Board (PEBB)

2. Date of Request: July 1, 2021 3. Agency Number: 107090

4. Agency Contact Name: Alicia Miller 5. Phone: (971) 349-2406

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

7. Time Period Requested: From: July 1, 2022 To: June 30, 2025

8. Total Estimated Cost: $6,829,752

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

PEBB Benefit Management System (BMS): Maintenance and Operational Support and System Enhancements for legislatively mandated updates, Board decisions, collective bargaining mandates and adding new groups (state and local governments).

10. Request, Background and Proposed Contracting Procedure:

a. Request:

DAS PS, on behalf of OHA/PEBB, requests approval of this Special Procurement (SP) for a three (3) year term to extend Contract No. DASPS-1531-19 (Contract) with Perspecta State and Local, Inc., through June 30, 2025 and to increase the current not-to-exceed (NTE) by $6,829,752. The extension of time and money will allow sufficient time for OHA to evaluate Proposals received and finalize an award of the current competitive Request for Proposal (RFP) No. DASPS-1633-20, negotiate a contract with the successful Proposer and fully implement and transition to the new BMS, which combines both PEBB and Oregon Educators Benefit Board (OEBB) into a single Solution requiring a multi-phased implementation structure.

b. Background:

The Public Employees’ Benefit Board (PEBB) and Oregon Educators Benefit Board (OEBB) are the divisions of the Oregon Health Authority (OHA) charged with providing certain employee benefits to educators, state and local government employees (ORS 243.866, and ORS 243.135) respectively. Over 300,000 Oregonians annually use the PEBB and OEBB Benefit Management Systems (BMS) to access benefit selections and enroll spouses, domestic partners and dependents in benefits during their respective open enrollment periods. Members also access the BMS’ throughout the year to select benefit plans and coverage levels upon hire, or update selections in response to qualifying events. Additionally, PEBB and OEBB Members use the systems during the year to update certain benefit information.

Since the PEBB BMS’s initial build in 2002, the PEBB Contract has been amended multiple times through various Special Procurements to account for necessary System Enhancements and to extend Maintenance and Operations.

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Special Procurement No. SP-1126-19 was posted on the Oregon Procurement Information Network (ORPIN) on June 13, 2019 and closed on June 20, 2019. No protests were received.

A condition of SP-1126-19 has been for OHA to work jointly with DAS PS and Enterprise Information Services (EIS), formerly Office of the Chief Information Officer (OSCIO) to develop a competitive RFP to replace the PEBB and OEBB legacy systems. The previous Amendments that extended the Contract for time provided OHA the ability to continue critical operations affecting current BMS members while working collaboratively with DAS PS and EIS to comply with all State of Oregon oversight and procurement requirements to develop necessary documentation and requirements for a competitive RFP.

Current Need:

On March 8, 2020, Governor Kate Brown declared a state of emergency to address the spread of the novel coronavirus, COVID-19 and the potential health crisis. The emergency declaration allowed many state resources, including personnel, to be re-allocated to stem the spread of the disease. The re-allocation of state personnel resources to COVID-19 response roles determined essential left a temporary service level gap, which significantly slowed the development of a new competitive RFP to replace the PEBB BMS legacy system. OHA personnel reassignment to COVID-19 response was necessary to combat high priority items compounded by the onset of the COVID-19 pandemic.

Due to the personnel re-allocation related to the COVID-19 response in the declared state of emergency, DAS PS, on behalf of OHA/PEBB, requests authority to extend Contract No. DASPS-1531-19 for up to five (5) years and increase the not-to-exceed (NTE) by $6,829,752 for a total NTE of $23,760,507.

Total Estimated Cost:

Product/Service Amount

Maintenance and Operations

2022 (7/1/22 – 12/31/22) $855,756

2023 $1,754,292

2024 $1,798,152

2025 (1/1/25 – 6/30/25) $921,552

Work Orders

2022 (7/1/22 – 12/31/22) $250,000

2023 $500,000

2024 $500,000

2025 (1/1/25 – 6/30/25) $250,000

TOTAL $6,829,752

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c. Proposed Contracting Procedure:

• DAS PS will issue a public notice on the State of Oregon’s new eProcurement system, OregonBuys, as required by Oregon Administrative Rule (OAR) 125-247-0287, for a seven (7) calendar day period, regarding approval of the SP Request.

• Advertisement of the approved SP will include provisions that any affected person may protest the approval of the SP Request.

• DAS PS, along with OHA/PEBB, will respond to and resolve protests, if any. If no protests to this approved SP are received and sustained, DAS PS, on behalf of OHA/PEBB, will proceed with amending the existing contract to extend the end date to June 30, 2025, as necessary.

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

The current Contract terminates on June 30, 2022, which does not provide enough time for OHA in collaboration with DAS PS and EIS to fully implement a new BMS, which requires multiple phases in order to combine both PEBB and OEBB into a single Solution. The current Contract needs to be extended to allow sufficient time for a multi-phased implementation of the new BMS. The implementation of the new BMS includes not only a multi-phased rollout of the system, but also extensive training and Organizational Change Management (OCM) for users.

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:

Amending the current Contract based on time constraints and COVID-19 delays will not encourage favoritism or substantially diminish competition, because DAS PS is currently working on behalf of OHA in evaluating Proposals received for the competitive RFP No. DASPS-1633-20 issued February 22, 2021 and closed May 14, 2021. The current time constraints make the process of evaluating, awarding, negotiating and fully implementing both PEBB and OEBB sides of a single Solution impossible.

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:

Continuing with the current Contract, while a competitive process is in action, promotes public interest by allowing OHA/PEBB to meet obligations of providing the PEBB BMS for use by all required administrative staff outside of and within OHA/PEBB, Public Employee members including spouses and dependents.

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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 OregonBuys. The Special

Procurement may not be used until after the completion of the seven (7) calendar 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 execution of any contracts or amendments and will obtain Department of Justice (DOJ) legal sufficiency review and approval, as may be required.

4. OHA shall track all expenditures related to any contract or amendments; identifying both maintenance and support and those expenses related to Work Orders, modernizations or enhancements. Line items

REQ-DASOBO-00015591 Page 6 of 6 identifying Operation, Maintenance and Support costs are restricted to $5,329,752. Work Order, Modernization and enhancement costs are restricted to $1,500,000.

APPROVED:

Debbie Dennis, State Chief Procurement Officer, Date:

Department of Administrative Services

09/21/21