REQ-DASOBO-00041299_CAM_Approved.pdf

1 | P a g e SP No. REQ-DASOBO-00041299 (904-16)_CAM for DHS/OHA

REQUEST FOR SPECIAL PROCUREMENT

(SP) No.

REQ-DASOBO-00041299 (Formerly SP-904-16), Amendment No. 2

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

1. Requesting Agency Name: Department of Administrative Services, Procurement Services (DAS PS) on behalf of the Department of Human Services (DHS) and the Oregon Health Authority (OHA), the Office of Training, Investigations and Safety (OTIS)

2. Date of Request: June 28, 2023 3. Agency Number: 107090

4. Agency Contact Name: Marc Monetti 5. Phone: (971) 301-0760

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

7. Amendment Time Period Requested: From: October 15, 2016 To: April 15, 2026

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

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

Continue the Acquisition of Operations and Maintenance Support Services (O&M) and Ongoing Development Support Services from Sapient Corporation

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

a. Amendment Request:

DAS PS, on behalf of DHS/OHA, requests approval of this Amendment No. 2 to Special Procurement (SP) No. REQ-DASOBO-00041299 (formerly SP-904-16) to allow for DHS/OHA to contract with the existing System Integrator (SI), Sapient Corporation (Sapient) (previously doing business as Vertiba, LLC) on the Centralized Abuse Management (CAM) Solution for ongoing Operations and Maintenance Support Services and additional design and development support services. DHS/OHA will solicit competitive pricing for enhancement and O&M work beyond 2026.

DAS PS, on behalf of DHS/OHA, requests an increase to the Total Estimated Cost for System Integration services under Sapient Contract No. PO-DASOBO-00011501 (previously identified as DASPS-1493-16) (Contract) by $8,000,000 for a new not-to-exceed (NTE) of $27,396,000.

a. Increase ongoing design and development services from $8,000,000 to $16,000,000, and

b. increase the Special Procurement and Contract NTE from $19,396,000 to $27,396,000.

b. Background:

The State of Oregon executed Contract No. DASPS-1493-16 (Vertiba Contract) with Vertiba, LLC on December 30, 2016, for System Integration Services to design, develop and implement the

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Centralized Abuse Management Solution (CAM Solution). The initial Contract value was $1,557,200 and included two (2) build iterations.

For additional historical and background information leading up to SP Amendment No. 2, please see SP_Attachment-1 and SP_Attachment-2.

Since SP-904-16, Amendment No. 1 was approved, the following amendments have been executed:

On May 21, 2019, Amendment No. 7 was executed. This amendment revised contract due dates and removed an unused deliverable.

On December 10, 2019, Amendment No. 8 was executed. This amendment revised contract due dates, integrated federal terms and conditions and included scope for extension of CAM functionality to include abuse information related to facility licensing and associated corrective actions. This new functionality required an interface with the federally managed Automated Surveyor Processing Environment (ASPEN) System. The Vertiba Contract value was increased by $633,000 to $7,029,000.

On January 28, 2020, Amendment No. 9 was executed. This amendment added O&M support and ongoing development services including updates to the terms and conditions. The Vertiba Contract value was increased by $3,313,874 to $10,342,874.

On March 25, 2020, Amendment 10 was executed. This amendment removed an unused deliverable. The Vertiba Contract value decreased by $20,000 to $10,322,874.

On June 16, 2020, Amendment 11 was executed. This amendment extended O&M support through the term of the existing Special Procurement (April 15, 2026) and increased the ongoing development services NTE to the amount shown in Amendment 1 to the Special Procurement. This amendment included a novation, changing the existing SI Contractor’s name from Vertiba to Sapient Corporation and added Security Vulnerability testing the contract requirements. The Sapient Contract value increased by $9,038,852 to $19,361,726.

On September 20, 2022, Amendment 12 was executed. This amendment extended the term of the Contract to April 15, 2026.

On or about June 28, 2023, DHS/OHA and DAS PS staff, upon reexamination of the original Special Procurement No. SP-904-16 and subsequent Amendment No. 1, discovered that ongoing development support does not include enough funding to complete additional CAM solution design and development work.

The remaining design, development, User Acceptance Testing (UAT) and deployment support for both Change Order’s (CO) 28 and 29 is anticipated to exceed the remaining balance of the existing ongoing design and development services NTE of $8,000,000 advertised under Amendment 1 to this Special Procurement.

The system is expected to have on-going enhancement work due to changing business needs, legislative mandates, and policy updates. The NTE for enhancement work requires an increase to ensure the CAM system properly operates to support changing business priorities for the programs it serves.

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c. Current Need:

The CAM system requires modification to add additional workflow, functionality, and data collection to meet legislative mandates and federal system changes. A major federal system (ASPEN), which feeds data to the Centralized Abuse Management-Corrective Action & Licensing Management System, (CAM-CALMS) system will be shut down sometime in 2024. The federal government’s system, Internet Quality Improvement & Evaluation System (iQIES), will replace the old system, Automated Survey Process Environment, (ASPEN). iQIES must be mapped and data flow integrated with CAM-CALMS for person accounts, investigations, licensing, and corrective action for facilities under State licensure.

The retirement of ASPEN was a federal decision, not a state decision. The retirement of APSEN was not foreseen at the time that Amendment 1 to the Special Procurement was posted. Community Based Care facilities and Adult Foster Homes that are licensed by the state are currently in ASPEN.

If the state does not have solution in place when the federal government retires ASPEN, the CAM System will not be able to manage licenses or surveys. This is not just a CAM System issue. If CAM is unable to manage licensing and survey’s, the safety of Oregonians will be impacted. All licensed facilities and any allegations are transferred from ASPEN to the CAM system, then a Safety, Oversight and Quality allegation determination is made and appropriate facility sanctions are issued.

Without a system to gather that data or license, the Agency will not be able to perform those duties in a timely manner. All state facility licensing and survey would have to convert to a manual process, which the Agency is not currently resourced to support.

Additionally, it is anticipated that CAM-CALMS will regularly need enhancement work over the coming years up to and beyond 2026, as business needs shift, adapt, State properties are adjusted to meet the demands of Oregonians, as well as updates to meet any new state and federal regulations.

For this reason, DHS/OHA will solicit competitive pricing for enhancement and O&M work beyond 2026, SP Amendment No. 2 will cover all work through April 2026.

The initial Design Develop & Implement, (DDI) project was successfully completed (Build 4 wrapped up the official Project) in 2019. Since that time, the Contract has technically been in O&M support and there have been multiple small projects that have utilized $4,303,119 of the existing $8 million enhancement pool (Deliverable 2.24.1) for development support work from the existing SI vendor. See table below for more details.

Change Order Title Amount CO-11 CALMS (Deliverable 2.24.1, SDoc Templates, Provider Portal / eSignature Concept Reports)

$75,000

CO-12 CAM DESIGN (Deliverable 2.24.1, Search Functionality, Lightning Upgrade)

$140,000

CO-13 CAM DESIGN (Deliverable 2.24.1, Additional Enhancements, Roles)

$138,000

CO-14 CAM DESIGN (Deliverable 2.24.1, Encryption At Rest) $100,000

CO-15 CAM DEVELOP/TEST/DEPLOY/DOCUMENTATION

UPDATES (Deliverable 2.24.1, Search Functionality, Lightning Upgrade)

$420,000

CO-16 CAM DEVELOP/TEST/DEPLOY/DOCUMENTATION

UPDATES (Deliverable 2.24.1, Additional Enhancements)

$215,000

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CO-17 CAM DEVELOP/TEST/DEPLOY/DOCUMENTATION

UPDATES (Deliverable 2.24.1, CAM Role Changes)

$170,100

CO-18 CAM DEVELOP/TEST/DEPLOY/DOCUMENTATION

UPDATES (Deliverable 2.24.1, CAM Encryption At Rest)

$214,000

CO-19 CAM DEPLOY (Deliverable 2.24.1, Lightning Upgrade) $8,000 CO-20 CALMS DESIGN (Deliverable 2.24.1, SDocs eSignature) $24,000 CO-21 CALMS DESIGN (Deliverable 2.24.1, Facility Updates, Provider Access)

$122,000

CO-22 CALMS DESIGN (Deliverable 2.24.1, Disaster Events & Plans, Consumer & Consumer Needs, Mapping & Reporting)

$38,257

CO-23 CALMS DEVELOP/TEST/DEPLOY/DOCUMENTATION

UPDATES (Deliverable 2.24.1, Facility Updates, Consumer & Consumer Needs, Disaster Events & Plans, Mapping & Reporting)

$845,749

CO-24 SB155 DESIGN $68,000

CO-25 SB155 DEVELOP/TEST/DEPLOY/DOCUMENTATION $644,000

CO-26 ERM Training Documentation $140,000 CO-27 CALMS DESIGN/DOCUMENTATION (Deliverable 2.24.1, ERM Local Office Training Documentation, iQIES/ASPEN Requirements Documentation)

$233,600

CO-28 iQIES ASPEN APD Replacement DESIGN $474,817 CO-29 Combined enhancement REALD (CR128) & COAPS (CR129)

DESIGN

$232,600

Remaining Funding after Execution of Change Order #29 $3,696,881

The scope of the SP does not allow for utilization of enhancement support services beyond the $8 million specified in SP-904-16, Amendment No. 1. Additional enhancement funding is needed to complete in-flight work efforts and anticipated future work throughout the remaining term of the Contract ending April 15, 2026. The anticipated cost for development work resulting from designs being created as part of CO’s 28 and 29 above is anticipated to utilize all of the remaining NTE under existing ongoing design and development support work authorized under Amendment 1 to the Special Procurement. With almost three (3) years remaining on the existing Sapient Contract, additional funding is required to ensure that CAM can receive the development support it needs to stay in compliance with known and unknown future regulatory driven development requirements.

Status CAM-CALMs Projects System Estimate

Current IQUIES CALMS $3,300,000

Current COAPS-REALD CAMS $1,500,000

Future IQUIES 2.0 CALMS $750,000

Future Emergency Response Mgmt CALMS $1,000,000

Future Workflow (Salesforce code change)

CAM-

CALMS

$750,000

Future Legislative CAM $1,000,000

Future Legislative CALMs $1,000,000

Future ODDS - ASPEN Offline & Dataflow

CAM

$1,500,000

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Future Unforeseen Additional Initiatives CAM -

CALMS

$ 896,881

Additional Anticipated Projects through April 2026 $11,696,881

Current Remaining NTE for Enhancements $3,696,881

Additional Projected Need through April 2026 $8,000,000

d. Proposed Contracting Procedure:

DAS PS will issue a public notice (Notice) through the State of Oregon’s eProcurement system, OregonBuys, as advertisement of this Amendment No. 2 to Special Procurement No. REQ- DASOBO-00041299 (formerly SP-904-16) as required by Oregon Administrative Rule (OAR 125-247-0287) for a period of seven calendar (7) days. The public notice will include provisions that any affected person may protest the approval of the SP Amendment No. 2. DAS PS will respond to and resolve protests, if any.

Any protests from alleged aggrieved parties concerning the facts and circumstances underpinning the DHS/OHA’s desire to purchase extended O&M and development support services beyond the current warranty period from the existing System Integrator, Sapient must be lodged within that open period and will be addressed before executing an Amendment with Sapient for extended O&M and design and development support services.

If no protests are received and sustained, DAS PS reserves the right to negotiate with and continue extended O&M and design and development support services from Sapient for the life of the Contract.

DAS PS will obtain Enterprise Information Services (EIS) endorsement before executing the next Contract Amendment.

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

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

Amendment No. 1 to the Special Procurement added funding for O&M and ongoing development services. Funding was added based on an anticipated need of $1.3 million a year in development support. Unforeseen development requirements, most notably the ASPEN to iQies transition, which was outside of the Agency’s control, have led to a funding need beyond what was originally anticipated.

Sapient is still under contract to provide O&M support through April of 2026. Completing an open market solicitation for additional development support work with an existing O&M contract in place is not in the Agency’s best interest for the following reasons:

1) Due to the customizations completed by Sapient as part of the CAM Solution, purchasing ongoing development support from a different Contractor will lead to warranty impacts. The

6 | P a g e SP No. REQ-DASOBO-00041299 (904-16)_CAM for DHS/OHA existing Contractor, Sapient, has stated that they would not warranty system development work that is completed by an outside party.

2) Creating a structure where more than one System Integrator is developing within the same system may lead to unnecessary complications, as it would create ambiguous obligations for both parties and force the state to increase resource allocation to manage a complex project and contractual structure with little to no anticipated benefit.

3) Completing a solicitation for ASPEN related development work at this time will lead to an unnecessary delay in planned enhancements. As described above, the transition from ASPEN to iQies needs to occur in 2024. The Federal Government has not given an exact date in 2024, just the year. Additionally, existing agency resources are already fully engaged in ongoing development support efforts and would not be available to support a solicitation for this development work.

4) Sapient is already in the process of completing the design work for upcoming enhancements.

Soliciting Sapient’s design to outside vendors for development is an unnecessary complication to the development support process. The Agency already has Sapient under contract for ongoing development support work. Adding funding to the contract to allow Sapient to develop their design and continue providing development support through the remaining life of the contract will streamline existing and future development efforts.

Additional information associated with this justification is included in Section 12(b)ii.

Both the initial system from Colorado (CAPS) and the customized system for the State of Oregon (CAM Solution) were developed and implemented by the current System Integrator (Sapient). Sapients’s existing knowledge of the CAM Solution and the Colorado system that it was based on, makes Sapient uniquely qualified to provide continued development support for the CAM Solution.

For additional historical and background information leading up to SP Amendment No. 2, please see SP_Attachment-1 and Attachment-2.

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:

and

Competition is unlikely to be diminished as the CAM Solution is a variation of a system initially created for the State of Colorado. Both the Colorado and the Oregon systems were developed and implemented by the current System Integrator. The pre-existing knowledge base of the current System Integrator provides a strong competitive advantage, which is likely to discourage competition from other Salesforce support vendors.

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

or

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_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 Agency does not have enough time to complete a competitive procurement for the ASPEN transition work under timeline imposed by the federal government for the sunsetting of the ASPEN system in 2024. As stated above, if CAM is unable to manage licensing and survey’s the safety of Oregonians will be impacted. All licensed facilities and any allegations are transferred from ASPEN to the CAM system, then a Safety, Oversight and Quality allegation determination is made, and appropriate facility sanctions are issued. Without a system to gather that data or license, the Agency will not be able to perform those duties in a timely manner.

2. Creating a structure where two separate entities are making updates to the CAM Solution, while only one entity is responsible for maintaining the CAM Solution creates unnecessary project and contractual complications, including warranty impacts, which are unlikely to outweigh the benefits of competition for existing ongoing development support needs.

3. The Agency is in the process of starting a competitive procurement for ongoing O&M support and development services to replace the current contract tied to this Special Procurement. This Amendment No. 2 to the Special Procurement will help to ensure continuity of support for the CAM system.

In conclusion, the negative impacts associated with 1) losing the ability to properly manage licensing and surveys for facilities and 2) losing system warranty coverage including the creation of a more complex and disadvantageous contractual structure, provides sufficient reasons to continue the Contract for additional development support services with Sapient, while a competitively solicited replacement contract is being pursued.

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:

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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, if any.

4. Line items identifying Ongoing Design and Development Service costs identified at $8,000,000 are restricted for future Ongoing Design and Development Services only. O&M services at $5,000,000 were approved under SP Amendment No. 1.

APPROVED:

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

8-25-2023