REQ-DASOBO-00066756_Approved.pdf

SP No. REQ-DASOBO-00066756 (1142-19), AMD 1_OSH TASS Page 1 of 9

REQUEST FOR SPECIAL PROCUREMENT (SP) No.

REQ-DASOBO-00066756 (formerly SP-1142-19), 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 Oregon Health Authority (“OHA”), Oregon State Hospital (“OSH”)

2. Date of Request: March 18, 2024 3. Agency Number: 10700

4. Agency Contact Name: Brian Eilerts 5. Phone: (971) 283-5302

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

7. Amendment Time Period Requested: From: August 26, 2024 To: August 25, 2029

8. Total Estimated Cost for Amendment Time Period: $2,564,459

a. $6,599,375 is the total value of the underlying Contract (including the value of added services under the Amendment Effective Date through time period requested)

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

Maintenance, Operational Support and System Enhancements (“Services”) from API Healthcare Corporation (“Contractor” or “API”) for Workforce Management Time and Attendance (“TA”) and Staffing/Scheduling (“SS”) IT Solution for OSH (“OSH TASS”) for the five-year period depicted in Section 8, above.

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

a. Amendment Request:

This is Amendment No. 1 (“SP Amendment”) to the underlying Special Procurement No. SP-1142-19 (“Original SP”). DAS PS, on behalf of OHA/OSH, requests approval of the SP No. REQ-DASOBO-00066756 Amendment No. 1 to:

1. Extend existing contract #DASPS-1388-15 (“Contract”) with API Healthcare Corporation for one (1) year with renewal options for up to four (4) additional years. DAS PS will document the extension for time (required and optional) and increased compensation amount(s) in Amendment No. 15 to the Contract.

2. Provide for contract administration through the SP Amendment period, including a future amendment post-Amendment 15 to restate the Contract and subsequent amendments, if any, following the Contract Restatement to document the exercise of optional renewals, if any.

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The extension requested is unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts and will 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.

In the SP Amendment, OHA and OSH set out the factors that prevented them from developing, releasing, and managing a formal, competitive procurement for the needed Services, long-term; which was the purpose of the Original SP. The SP Amendment also identifies the measures that OHA and OSH have taken, and will take, to ensure that the planned future, long-term procurement is fulfilled through the course of the SP Amendment.

b. Background:

1. Staff Scheduling and Time and Attendance Tracking Are Essential Operations.

The Oregon State Hospital is an acute mental healthcare facility where the ratio of staff to patients continually fluctuates based on patient needs. To ensure safety of both patients and staff, OSH must maintain appropriate staffing levels in a real-time, 24/7 environment. There are challenges in consistently meeting such need, as follows, and deployment of OSH TASS is essential in meeting them:

1. Changes to patient care requirements result in continuously changing staffing levels with little notice, if any. These staffing level fluctuations create schedule “gaps” that OSH must cover. Coverage for such schedule gaps must be managed through reassignment of available personnel, i.e., a pool of contracted staff, for voluntary or required overtime.

2. OSH must also track, validate, and allocate time scheduled and worked, including overtime for all staff who may be assigned to multiple work areas in one shift. Staff at OSH are represented by 3 different collective bargaining agreements, with unique pay provisions based upon worked area, job class, or scheduled shift.

The OSH TASS meets the requirements and expectations of the business and staff, provides data for OSH to confirm compliance with regulatory and legislative staffing requirements, and supports timekeeping requirements of the State, agency, and three union collective bargaining agreements. It is an integrated solution that provides real-time information that supports 24/7 hospital scheduling and timekeeping processes and avoids duplication of entry into multiple systems.

2. Current Contract with API is the Result of an Open, Competitive Procurement

The current contract (“Contract”) for the OSH TASS has been in place since 2011, as a result of an open-market solicitation (No. 3141) conducted in December 2010. The Contractor is a leader in enterprise healthcare operations software and services, has been in business over 30 years, and has myriad healthcare-related applications, including workforce management solutions like OSH TASS, deployed nationwide in a large percentage of hospitals.

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OSH TASS is a Software as a Service (“SaaS”) cloud-based system, which helps the hospital meet operational quality care goals through technology designed specifically for the unique variables of the healthcare industry. The system is a multi-user data system that provides a centralized, hospital-wide staffing and time management solution. The staffing and scheduling modules provide a method for managing unit staffing level and identifying causes of staffing shortfalls. The time and attendance module provides validation of time worked and streamlines timekeeping processes by automatically generating pay coding based on schedules, clock-ins and leave requests and applicable pay policies.

3. Original SP Request Must be Extended for Another Five Years.

At OHA and OSH request, DAS PS previously approved Special Procurement No. SP-1142-19 effective August 5, 2019, extending the contract until August 25, 2024. This was to allow additional time to see if the system could be replaced with WorkDay, the State’s then developing enterprise Payroll and Time Tracking System;

and, if not, to allow enough time to complete market research and a new open, competitive procurement process to screen and select a viable, longer term OSH TASS solution.

4. External Force Disruptors Frustrated Procurement Goals in Original SP.

Forces beyond the reasonable control of OHA and OSH prevented the organizations from meeting the procurement goals and objectives identified in the Original SP, e.g., WorkDay implementation issues and delays, COVID Pandemic and its adverse impact on the availability of already limited personnel resources, nationwide shortage regarding nursing personnel, and diverse, unplanned federal mandated actions. See, Attachment 2, External Force Disruptors, to the SP Amendment for a detailed listing of these external forces over which OHA and OSH had little to no reasonable control.

5. Future Procurement Planning Progress.

OHA and OSH have already started a number of critical actions to support the planned future, longer-term procurement. This formalized initiation and planning effort will help ensure satisfaction of all procurement goals during the term of the SP Amendment. These include without limitation, processing an IT investment form through Enterprise Information Services (“EIS”), working with EIS personnel to develop foundational project management artifacts, and acquiring the services of outsourced consultants for project management, business analysis and organizational change management support of the OSH TASS solution replacement project. See, Attachment 3, Procurement Progress List, to the SP Amendment for a detailed listing of procurement planning progress items.

During the limited period of contract administration for the amended contract, the State Parties will develop and manage an “Open, Competitive Sealed Proposals” procurement for a longer-term Services solution. For its longer-term procurement planning purposes, DAS PS will work with OHA and OSH in compiling a list of suppliers experienced either in providing TASS Services through an established platform, or by deploying and hosting a SaaS instance of TASS Services software. Interested suppliers should, via email, submit to the DAS PS Contact identified in the published SP Amendment Notice the following information:

1. Supplier Name.

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2. TASS Services platform or software offered.

3. Describe the manner in which the provided platform or software can meet TASS Services requirements.

4. Identity and summary description of comparable software and TASS Services provided for at least one other state government organization with responsibility for physical and automated workforce management of diverse healthcare professionals.

5. Time in Calendar Days from effective date of a contract to completed implementation and operational deployment of a TASS solution.

6. Completed Cost Table setting out project management, implementation, hosting, licensing, and maintenance and support costs for the solution.

The recommended deadline for such submission is 21 calendar days from the date the SP Amendment Notice is published. DAS may use the compiled list of such suppliers in outreach during planning for the longer-term procurement, e.g., the conduct of a Request for Information and solution demonstrations. DAS PS will also use OregonBuys in connection with such outreach. If interested suppliers are not already registered as an OregonBuys supplier, they are encouraged to register. Link: Periscope Holdings - Login (oregonbuys.gov).

For additional historical and background information see Attachment 1, Original SP-1142-19

c. Current Need:

Retaining the current Workforce Management system with scheduling and time tracking services is critical to ensure continuity of business operations. See discussion in Section 10, subsections a. and b.

Contract will include annual renewals via amendment in case OHA and OSH are in a position to change Services suppliers during the mid-procurement period (e.g., WorkDay presents a future solution that meets OSH TASS needs.). OSH would be able to purchase one year at a time to reduce risk in paying for services not needed in case of needing to terminate and transition earlier to another Services supplier. In the context of a future amendment restating the Contract, the termination and transition provisions of the Contract will be reviewed and strengthened to obligate Contractor to support smooth transition to another supplier, if any, in the future. See discussion in Section 10, subsection a.

The 5-year cost associated with this SP Amendment is $2,564,459 with the annual breakout shown below:

https://oregonbuys.gov/bso/ https://oregonbuys.gov/bso/

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Year 1 Optional

Year 2 Optional

Year 3 Optionoal

Year 4 Optional

Year 5 Total

Remote Hosting $102,530 $107,657 $113,040 $118,692 $124,626 $566,544

Managed Services

$67,174 $70,533 $74,059 $77,762 $81,651 $371,179

Staffing & Scheduling

$89,197 $93,656 $98,339 $103,256 $108,419 $492,868

Time & Attendance

$69,907 $73,403 $77,073 $80,926 $84,973 $386,282

Badge Reader $12,700 $13,335 $14,002 $14,702 $15,437 $70,176

SUB TOTALS $341,508 $358,584 $376,513 $395,339 $415,105 $1,887,049

Required Enhancements $300,000

Contingency Funds $377,410

GRAND TOTAL $2,564,459

d. Proposed Contracting Procedure

1. DAS PS will issue a public notice (“Notice”) advising of this approved SP Amendment on OregonBuys for a period of seven (7) Calendar Days as required by Oregon Administrative Rule (“OAR”) 125-247- 0287.

2. The Notice will include provisions that any affected party may protest the approval of the SP Amendment. DAS PS will respond to and resolve protests, if any.

3. If no protests to this SP Amendment are received or sustained, DAS PS – on behalf of OHA and OSH

– will proceed with execution of amendment(s) for continued Services from API as described in this SP Amendment Request.

4. DAS PS, OHA and OSH will obtain Enterprise Information Services (“EIS”) endorsement before executing contract documents with API, as applicable.

5. Pursuant to OAR 137-045-0015, DAS PS – on behalf of OHA and OSH – will work with Oregon Department of Justice (“DOJ”) to obtain its legal sufficiency approval prior to executing the contract with API, as required.

11. Justification for use of Special Procurement:

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Due to OSH TASS being heavily customized to meet OSH needs and deeply embedded into OSH daily operations, the gathering of detailed, functional and technical requirements, and conducting an end-to-end RFP procurement process is anticipated to take a year and a half. In addition, more time will be needed to research and perform due diligence in order to transition away from Contractor’s solution to another.

Contractor may participate in the planned future procurement as a Proposer, but will not gain advantage from such participation and take away the open, fair, and competitive procurement process.

1. With a contract end date on August 25, 2024, the short time period would not be adequate to complete the procurement process, select a vendor, and migrate to the new system. IT solutions are subject to EIS oversight and may take 2-3 years to implement a new technology through the Stage Gate process.

a. OSH will need legislative approval of a Policy Option Package (POP) to secure funding for resources to support analysis, procurement, and transition activities for a new scheduling and time system.

b. OSH will utilize outsourced consulting services for:

i. Documenting current processes and requirements

ii. Conducting needs assessment

iii. Completing gap analysis

iv. Performing market research

v. Providing a recommended plan of action

vi. Developing a Statement of Work (SOW) for Procurement Request for Proposal (RFP)

vii. Developing weighted vendor evaluation scoring sheet

2. Current solution provides an important technical application for hospital-wide staffing and centralized timekeeping.

a. The current solution accommodates legislative, regulatory, and policy requirements for hospital scheduling and time management processes and collective bargaining agreements. The state-wide scheduling system and time system cannot accommodate the unique business needs of a hospital environment now or in the foreseeable future.

b. As an integrated solution, the hospital scheduling and time systems provide critical workflow efficiencies and reduces duplication of entry into multiple systems.

c. Changing to a new vendor would require massive business process re-design of hospital scheduling and time management processes, and re-training of 2,300 OSH employees.

d. Customizations authorized to address the needs of our unique environment as a public sector mental health facility would be at risk, and re-work with another vendor would come with increased cost, lost efficiencies, and new risks.

3. Discontinuation of API comes with great risk of inefficiencies and unsafe staffing levels.

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a. Nursing staffing reporting requirements related to ORS 441.154-157, ORS 441.166, ORS 441.173, and ORS 441.175 (disallowing mandating of nursing staff), which include unit staffing levels, root cause of staffing issues, and remediation efforts would be more difficult.

b. OSH has a stable time integration with current solution and WorkDay payroll. Agency and DAS technical and payroll resources currently engaged in system stabilization activities are the same that would be needed to engage with OSH business process redesign efforts and may be unavailable for some time.

c. Pay coding including those for time-based differentials would no longer automatically be generated based on clocking, schedules, and pay policies specific to employee representation, or statewide agency policy. This would increase the error rate and create inconsistencies in how pay policies are applied.

4. Senior Enterprise Architect reviewed Oregon State Hospital business requirements as they pertain to the current scheduling and timekeeping system and Software as a Service consumption model and found it in alignment with the OIS technology strategy. While there are multiple scheduling and time keeping solutions in the market, the complexities presented by OSH use case would require significant design, migration, and integration investment specifically from OSH and OIS subject matter experts to support such an endeavor.

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:

1. Contract No. DASPS-1338-15 (OHA Contract No.136276) was executed resulting from an award through a competitive solicitation process in which proposals were received and evaluated. API Healthcare received the highest overall score (813.3) and was subsequently awarded the contract. The other proposers received scores ranging from 736.4 to 792.7.

2. OSH initiated the formal procurement project for solicitation of new system in October 2022, and will utilize outside 3rd party contractor services for RFP development of requirements. The intent of this Special Procurement request is to extend current contract to allow time to complete end to end RFP process for a new solution with full implementation and transition services completed.

3. Contract will include annual renewals via amendment in case a new vendor is selected, and transition activities can be completed mid-procurement period. Exit clause and transition services will be reviewed and strengthened to obligate vendor to support smooth transition to another vendor.

and

______ (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 current contract expires August 25, 2024, which does not provide sufficient time to procure and transition to a new system. Procurement activities were not completed before the current contract expiration date because OSH resources were prioritized to addressing critical staffing shortages, safely staff the units, and to remedy patient safety and patient care deficiencies in order to maintain hospital accreditation and CMS funding. Redirecting OSH resources to satisfy procurement requirements and transition to a new system would not have been in the best interest of the public.

2. Discontinuing current services before obtaining a new solution it would have a significant negative impact on hospital operations and resources. OSH would be unable to efficiently maintain safe staffing levels or time records for employees. Extensive resources would be needed for business process redesign of hospital staffing and timekeeping processes, and re-training for all OSH employees. Previous manual processes were subject to increased error rates and inconsistencies in how pay policies were applied, which would negatively impact OSH employees. OSH would also not be able to respond efficiently to staffing data requested by regulatory agencies which would put OSH at extreme risk of non-compliance and could result in fines, loss of hospital accreditation, and/or loss of CMS funding.

The same facts and findings detailed in the Attachment-1, Original SP-1142-19, still apply.

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 amendment execution, if any.

APPROVED:

Jay Jackson, Procurement Policy Officer Date:

Department of Administrative Services, Procurement Services

05/11/2024