SP #REQ-DASOBO-00113037_Seed-to-Sale System_Metrc_OLCC Page 1 of 6

REQUEST FOR SPECIAL PROCUREMENT No. REQ-DASOBO-00113037

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

1. Requesting Agency Name: Oregon Department of Administrative Services, State Procurement Services (“DAS SPS”) on behalf of the Oregon Liquor and Cannabis Commission (“OLCC”)

2. Date of Request: May 2, 2025 3. Agency Number: 10700-OBO-84500

4. Agency Contact Name: Jay Jung 5. Phone: 971-283-0023

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

7. Time Period Requested: From: September 1, 2025 To: November 30, 2030

8. Total Estimated Cost: $13,373,287 *Note: With approval of this Special Procurement and its increase of $13,373,287, the “Total Estimated Cost” of the contract referenced in this Special Procurement will be $26,763,361.

9. Title: Supplies and/or Services to be Acquired: Continuation of the agreement for OLCC’s Seed-to-Sale Marijuana Inventory Tracking System (collectively “Services”) with its current contractor, Metrc, LLC. Services and System functions to include, but are not limited to:

• Licenses

• Upgrades

• Hardware

• Maintenance and Support

• Subscription fees

• Annual fees

• Plant and package tag fees

• System enhancements required by the introduction of state and federal law

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

a. Request:

DAS SPS, on behalf of OLCC, requests approval of this Special Procurement (“SP”) REQ-DASOBO- 00113037 to amend Contract No. DASPS-1537-19 (the “Contract”) issued to Metrc, LLC (“Metrc”) (formerly Franwell) to:

• extend the term of the Contract for additional time, not to exceed five additional years, through

November 30, 2030;

• add a provision to allow OLCC to pay for any increases or a portion of increases in plant and package tag fees; and

• increase the maximum Not-To-Exceed (“NTE”) compensation available for the Contract by an additional $13,373,287 to continue existing Services, while a new procurement process is completed, and the resulting project is implemented.

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With approval of this SP, DAS SPS, on behalf of OLCC, will engage with Metrc to negotiate Amendment #13 within the scope set out above, and will also update Authorized Representatives for both parties.

b. Background:

OLCC oversees access to alcohol and cannabis products in Oregon through education, regulation, and distilled spirits distribution. OLCC’s aim is to protect public health and safety while supporting responsible businesses and providing funding for local and state agencies.

• November 4, 2014: OLCC was tasked with implementing the control, regulation, and taxation requirements of the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act (the “Act”). Oregon voters passed the Act as Measure 91.

o OLCC needs a seed-to-sale inventory tracking system to be in compliance with Oregon Revised

Statutes (“ORS”) 475C.177, in order to prevent diversion of marijuana, allow for inventory and testing audits, provide information for recall activities and assist in executing enforcement activities.

o The inventory tracking system allows OLCC to track plants and record their movement through the production process and the chain of commerce from immature plants to final sale to consumers.

o The tracking system allows OLCC to share data with the Department of Revenue (“DOR”) for point-of-sale tax auditing.

• March 10, 2015: DAS SPS, on behalf of OLCC, issued a Request for Proposals (“RFP”) No. DASPS-2051- 15 on the Oregon Procurement Information Network (“ORPIN”), the State’s former eProcurement system, seeking Services for the project.

• April 30, 2015: Metrc (then Franwell) was the successful proposer, and DAS SPS entered into the Contract with an Effective Date of September 1, 2015.

• To date, the Contract has been amended 12 times. Its current expiration date is September 01, 2025.

The previous amendments of the Contract are summarized below for reference:

Amendment #1: Executed August 3, 2016, Added Portable Data Terminals. Increased the NTE from the Original $1,730,962.50 to $3,599,962.50.

Amendment #2: Executed April 16, 2019, Contractor name changed from Franwell to Metrc. Contract No. DASPS-1386-15 was changed to Contract No. DASPS-1537-19. Expanded enhancement Service Orders. Increased the NTE to $4,099,962.50.

Amendment #3: Executed August 27, 2020, 30-Day extension to finalize negotiations to continue services.

Amendment #4: Executed September 28, 2020, 30-Day extension to finalize negotiations to continue services.

Amendment #5: Executed October 29, 2020, 30-Day extension to finalize negotiations to continue services.

Amendment #6: Executed November 30, 2020, 30-Day extension to finalize negotiations to continue services.

Amendment #7: Executed March 1, 2021, Contract expired and was reinstated. Added funds for Business paid License Fees. Increased the NTE to $6,077,625.50

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Amendment #8: Executed April 19, 2021, Revised the language for Handheld Readers. Expanded enhancement Service Orders. Increased the NTE to $6,090,794.

Amendment #9: Executed December 29, 2021, Agency name changed from Oregon Liquor and Control Commission to Oregon Liquor and Cannabis Commission. Extended Term expiration date.

Added Pay Equity Language. Added funds for Business paid License Fees. Increased the NTE to $7,290,794.

Amendment #10: Executed June 30, 2022, extended the Term expiration date.

Amendment #11: Executed April 11, 2023, added funds for Business paid License Fees. Revised Portable Data Terminal Warranty. Expanded Service Level Agreement. Updated required Security Language. Updated Key Personnel. Increased the NTE to $13,390,074.

Amendment #12: Executed March 1, 2024, added language to support compliance with Oregon Administrative Rules (“OAR”) 845-025-7070 to “track plants by groups”. Updated Key Personnel.

c. Current Need:

ORS 475C.177 requires OLCC to develop and maintain a system for tracking the transfer of marijuana items between premises for which licenses have been issued under ORS 475C.005 to 475C.525 or 475C.548. The Contract is approaching the end of term with no additional renewal terms available under the originating RFP.

OLCC issued a Request for Information (“RFI”) No. S-84500-00014457 on August 6, 2025, on OregonBuys® to conduct market research. Based on the findings DAS SPS, on behalf of OLCC, intends to conduct a solicitation for a tracking system compliant with ORS 475C.177, with implementation of services/system on or before September 1, 2030. The time extension request until November 30, 2030, allows for an additional 90-day transition period from the current system to a potential new system.

Year 11 Year 12 Year 13 Year 14 Year 15 Total SaaS Fee $1,628,895 $1,710,339 $1,795,856 $1,885,649 $1,979,261 $9,000,000 Plant & Package Tag Fee Increases

$152,000 $308,561 $469,818 $635,914 $806,992 $2,373,287

Enhancement Change Orders

$1,900,000 $1,900,000

Equipment $100,000 $100,000

TOTAL: $13,373,287

d. Proposed Contracting Procedure:

1. As required by OAR 125-247-0287, DAS SPS will issue a public notice (the “Notice”) regarding approval of this SP on OregonBuys®, the State’s current eProcurement system of record, for a period of seven (7) calendar days.

2. The Notice will include provisions that any Affected Person(s) may protest the approval of this SP.

3. DAS SPS, in collaboration with OLCC, will respond to and resolve all protests, if any.

4. If no protests to this approved SP are received or sustained, DAS SPS, on behalf of OLCC, will proceed with issuing Contract Amendment #13 as set out in Section 10.a above.

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5. DAS SPS and OLCC will work with DAS Enterprise Information Services (“EIS”) and obtain its endorsement prior to executing Contract Amendment #13, as required.

6. Pursuant to OAR 137-045-0015, DAS SPS will work with Oregon Department of Justice (“DOJ”) and obtain its legal sufficiency approval prior to executing Contract Amendment #13, as required.

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

The ability to amend and extend the Contract for the Services can only be solicited and approved through a Special Procurement request under Oregon’s Public Contracting Code (“the Code”), found in ORS 279A, 279B, and 279C, and OAR Chapter 125, Divisions 246, 247, and 248.

DAS SPS, on behalf of OLCC, completed an RFP resulting in a contract with Metrc for a maximum term of ten (10) years. This term is set to expire September 1, 2025. Due to the statutory requirements set forth in ORS 475C.177, OLCC support in procurement efforts for a tracking system must be maintained. With no additional renewal terms available under the contract, only DAS can approve to extend for time and funding via Special Procurement.

OLCC is currently in the midst of implementing three substantial Information Technology (“IT”) modernization projects that require DAS Enterprise Information Services’ Stage Gate oversight process and approvals. With limited staffing, OLCC does not have the resources or capacity to begin a fourth Stage Gate project until the completion of these other projects, which are projected to be completed at the end of 2026.

Due to the complexity of this fourth project, OLCC will need time to manage the planning process through Stage Gate 1, enter into procurement for Stage Gate 2, and prepare for implementation and project go live for Stage Gate 3. OLCC’s current estimated time to have a system in place pursuant to this project is September 1, 2030. Based on past implementations of Stage Gate projects, OLCC estimates it will take approximately five years from Stage Gate 1 kick-off through completion of the planning and approval processes.

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:

Metrc has provided the Services under the Contract for the Seed-to-Sale Marijuana Inventory Tracking System for the last nine years.

• The Contract was established through a formal RFP process in accordance with Oregon statutes and administrative rules.

• The RFP was posted on ORPIN, which held a roster of 40,000+ Suppliers.

• The Intent to Award Notice was issued to Metrc.

• The Contract is still in effect and has not expired.

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• OLCC issued a Request for Information (“RFI”) No. S-84500-00014457 on August 6, 2025 on OregonBuys® to conduct market research. Based on the findings DAS SPS, on behalf of OLCC, intends to conduct a solicitation for a tracking system compliant with ORS 475C.177, with implementation of services/system on or before September 1, 2030.

• OLCC will complete the RFI in accordance with ORS 279A.157 (B)(c).

The RFI includes, but is not limited to the following:

• Licenses

• Upgrades

• Hardware

• Maintenance and Support

• Subscription fees

• Annual fees

• System enhancements required by the introduction of state and federal law 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 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:

Failure to comply with The Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act, ORS 475C, could expose OLCC and the State to possible litigation, which is a risk for both the State and OLCC licensees who are conducting legal business within the State of Oregon. Additionally, it is in the State’s interest to protect public health by preventing the diversion or inversion of cannabis products to and from the illegal market.

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: Shirley Smith, DPO 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, State Procurement Services

8/21/2025