REQ-DASOBO-00081072_Approved.pdf

SP No. REQ-DASOBO-00081072_VectraSpec_ODVA

REQUEST FOR SPECIAL PROCUREMENT No. REQ-DASOBO-00081072

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 Department of Veterans’ Affairs (ODVA)

2. Date of Request: August 12, 2024 3. Agency Number: 107090

4. Agency Contact Name: Ashley Wenger 5. Phone: 971-719-0322

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

7. Time Period Requested: From: September 30, 2024 To: August 11, 2030

8. Total Estimated Cost: $119,000

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

VetraSpec software Client Tracking and Submittal Licenses through Tyler Technologies, Inc.

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

a. Request:

DAS PS, on behalf of ODVA, requests approval of this Special Procurement (SP) No. REQ-DASOBO- 00081072 to:

• reinstate, amend and extend its existing Agreement dated August 6, 2009 (Contract) with Tyler

Technologies, Inc., for the VetraSpec software for five years (through August 11, 2030), with software licenses renewed annually; and

• increase the spend by $119,000, allowing ODVA sufficient time to secure legislative financing for a suitable replacement solution.

b. Background:

ODVA’s mission is to help ensure that the nearly 300,000 veterans in Oregon, spanning four generations and five major eras of warfare, have access to the best care, resources, and opportunities that the nation’s veteran benefit system can offer. ODVA works in partnership with local, state, and federal government and community partners to deliver services, resources, and benefits that meet the needs of today’s diverse veteran community.

VetraSpec is a cloud-based, client claim tracking and submittal system used to provide direct service and support information for almost 200,000 Oregon veterans who submit claims directly to the U.S.

Department of Veterans Affairs – Veterans Benefits Administration (VA). VetraSpec also houses archived records that include military discharge paperwork and comprehensive service records. ODVA uses it for the aggregation of veteran demographic data, Key Performance Measures and required reported figures, such as monthly and retroactive monetary awards for ODVA represented veterans. VetraSpec allows ODVA to record, track, and submit claims and claim paperwork on behalf of the veterans and families that the agency represents. This program is unique because it is connected to the U.S. Department of Veterans Affairs which allows for the submittals to take place between the state and the federal government immediately and provides ODVA with a “receipt” for tracking purposes, which has proven critical in certain cases.

VetraSpec is used statewide by all ODVA accredited entities, which include statutory and contracted County and Tribal partners. Veteran Services also provides support for Oregon veterans, including those in the care of the Oregon Veterans' Homes, located in Lebanon and The Dalles. To utilize the system, key staff at ODVA, at the County level, and at the Tribal partners are required to have licenses to perform necessary actions for their entity, which are provided by ODVA. There are 33 licenses expected in 2024- 2025, but the number of licenses fluctuates based on staff hiring and turnover.

ODVA has current Memoranda of Understanding (MOUs) with the Confederated Tribes of the Umatilla Indian Reservation, the Confederated Tribes of Grand Ronde, the Confederated Tribes of Warm Springs, and the Confederated Tribes of Cow Creek Band of Umpqua Indians. These MOUs state that Tribal Veterans Service Officers (VSO) and their support staff will use the electronic tracking claim software to submit claims, which includes a requirement that ODVA provide the licenses to those entities. It is imperative that this software continue to support their needs, as agreed upon in the MOUs.

In addition, in accordance with statute, (ORS 406.310 and 406.450) the County VSOs are also making use of ODVA’s licenses for VetraSpec. Claims come to ODVA for quality control prior to their submittal to the VA.

The current VetraSpec software program was originally created by a small private company called DataSpec and has been in use by ODVA since 2009, when data transfer from a previous system was completed. On March 31, 2021, Tyler Technologies, Inc., announced that it had acquired DataSpec. ODVA executed a consent to assignment on March 31, 2021.

c. Current Need:

ODVA must continue to utilize the VetraSpec program or there is serious risk of claim processing not being completed, which would delay payments to veterans requiring valuable support. This would seriously impact the veterans ODVA serves and affect the work that ODVA does to support them and their families.

In total, there are approximately 150 active daily licensed users of this program statewide. In accordance with ORS 406.450(e), ODVA pays for licenses for agency staff and Tribal Veteran Services Offices only, which is currently approximately 35 of the 150 daily users.

The total costs for licenses since the software was implemented in 2009 is estimated at $93,200 through 2018. Accounting data available from September 2019-2023 indicates that $82,696 has been expended for licensing and customization of reports, for a total estimated cost of $175,896 for the duration of use of the software between 2009-2023. The anticipated licensing fees from 2024 through 2030 are not expected to exceed an additional cost of $119,000.

The current software licenses expired on August 11, 2024, but the vendor is allowing the licenses to remain active through the end of September. The $119,000 in licensing fees requested in this SP for the next five years is expected to bridge the services gap for ODVA and its customers until a new system can be competitively solicited, awarded, and implemented.

d. Proposed Contracting Procedure:

1. DAS PS will issue a public notice (Notice) on OregonBuys for seven (7) calendar days regarding approval of this SP as required by Oregon Administrative Rule (OAR) 125-247-0287.

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

3. DAS PS will respond to and resolve all protests, if any as outlined in Oregon Revised Statutes (ORS)

279B.405-415.

4. If no protests are received and sustained, DAS PS, on behalf of ODVA, will proceed with reinstating and amending the Contract as set out in Section 10.a above.

5. ODVA and DAS PS will work with DAS Enterprise Information Services (EIS) and the Department of

Justice (DOJ) and obtain their endorsements before the public notice is posted and prior to executing any amendments to the Contract, if required.

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

ODVA intends to initiate a new procurement for a software solution that performs the functions of the VetraSpec system within the next 4-5 years. Approval of this SP request will allow ODVA adequate time during the next biennium to conduct a careful analysis of alternative programs that are available and to secure required funding, while continuing to perform critical functions to meet the needs of clients. ODVA intends to submit a Policy Option Package (POP) to the legislature next biennium to secure funds, and to work with the DOJ on county and tribal contracts for Business Associate usage. Following completion of those processes, a competitive solicitation will be conducted for a client servicing system that will best meet the current and future needs of ODVA, County and Tribal partners, and veteran clients.

Due to a lack of historical records, changes in the original staff involved with the selection of the vendor, and concerns that spend has exceeded the delegated procurement authority threshold, it is believed a SP is the best option to resolve and correct this procurement.

• The VetraSpec program is unique because it allows for the tracking of client data and the submittal of claims for multiple entities to include all 36 Oregon County Veteran Services offices and four of the nine federally recognized tribes in Oregon. This shared network helps eliminate confusion and reduces the duplication of services and efforts.

• It currently stores records for almost 200,000 veterans, or approximately 72% of all known veterans in the state of Oregon.

• There is currently no budget to fund and no time to find a replacement program that would meet the current needs of Oregon veterans.

• Discontinued use of this program without an approved SP would lead to the disruption of direct help to veterans with their claims, loss of functionality of claim casework, data, and information, and would not allow ODVA to respond in a timely manner to requests from the legislature, address Key Performance Measures, or provide required and necessary information to the U.S. Department of Veterans Affairs.

• Discontinuing use of the program would force ODVA to be in breach of the tribal MOU’s.

• If the SP is not approved, and the Agreement/Contract is not amended to extend for time, ODVA will be out of compliance with State and Federal laws.

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:

Unique Qualifications: VetraSpec software is uniquely qualified to provide the current services required for Oregon veterans who submit claims directly to the VA for the reasons listed below:

1. Serves as a repository of level 3 PII data and satisfies the requirement of interconnection with the U.S.

Department of Veterans Affairs for the seamless electronic submission of casework.

2. Houses archived records that include military discharge paperwork and comprehensive service records.

Moving those records into a new system will require adequate time to plan and prepare so data is not lost and is retrievable.

3. Provides reporting methods for veteran demographic data and Key Performance Measures. Custom reports for a new software program would need to be created, tested, staff trained on them, and the program implemented which would require time and funds that are not available at this time.

4. Customized to allow for the submittals from Tribal Partners and various County partners for state benefits available from ODVA’s Oregon Veterans’ Emergency Financial Assistance Program (OVEFAP), and for the tracking of demographic information.

5. Embeds and maintains certain forms such as the OVEFAP and HIPAA, so future migration to a new program or system would involve detailed data transfer and extensive customization to ensure critical functionality remains.

6. Familiar to all the licensed users. The county and tribal partners are trained in the current system and have in-depth understanding of the software program.

7. Maintaining license fees represents a cost savings to ODVA. Funds have not yet been secured to purchase a new program. Currently, only licensing costs are in the budget.

Formal Procurement Process: With approval of ODVA’s budget requests, and within the next 5 years, ODVA will initiate a formal procurement process for a new software application, including software and maintenance and required customized reports.

1. The solicitation will be structured to encourage competition to the maximum extent possible.

2. The solicitation will be advertised on OregonBuys, the State of Oregon’s eProcurement system.

3. All providers of the requisite software and services will be able to compete for an award.

4. The resulting contract will be issued for a multi-year term.

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:

Maintaining use of the VectraSpec software promotes the public’s interest for the following reasons:

1. There is no longer an up-front cost for the purchase of the software, but instead just annual licensing fees.

2. It also does not cost additional funds or require new processes to download, transfer, and store existing data.

3. Reports have already been customized, so additional costs are not expected to be required.

4. In accordance with ORS 406.450, ODVA is required to ensure the seamless transfer of information for

ODVA and their partners, who support the approximately 200,000 veterans who are currently serviced using the VetraSpec system.

5. Use of VetraSpec is expected to be used only through 2030, when a new system can be procured through a competitive process.

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:

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, State Procurement Services

08/19/2024