REQ-DASOBO-00171919 SP Am 2 final.pdf

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REQUEST FOR SPECIAL PROCUREMENT (SP) No.

REQ- DASOBO-00171919 (formerly SP-1142-19), Amendment No. 2

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

1. Requesting Agency Name: The Department of Administrative Services, Procurement Services (“DAS SPS”) on behalf of the Oregon Health Authority (“OHA”), Oregon State Hospital (“OSH”)

2. Date of Request: March 10, 2026 3. Agency Number: 10700

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: March, 2026 To: August 31, 2029

8. Total Estimated Cost for Amendment Time Period: Increase of $1,924,546

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”).

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

a. Amendment Request:

This is Amendment No. 2 (“SP Amendment”) to Special Procurement No. SP-1142-19 (“Original

SP”). DAS SPS, on behalf of OHA/OSH, requests approval of SP No. REQ-DASOBO-00171919

Amendment No. 2 to:

1. Exercise additional option years’ 3 through 5 by extending contract #DASPS-1388-15

(“Contract”) with API Healthcare Corporation through August 31, 2029.

2. Increase the not to exceed (NTE) amount of the contract to fulfill Current Need referenced in

10 c. of this SP.

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b. Background:

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

Oregon State Hospital (OSH) is a 24/7 acute mental health facility where staffing needs shift constantly based on patient acuity. Maintaining safe operations requires real‑time scheduling, rapid reassignment of staff, and accurate tracking of hours worked across multiple units and job classifications governed by three separate collective bargaining agreements.

Key operational challenges include:

• Rapidly changing staffing needs. Patient care requirements fluctuate with little or no notice, creating schedule gaps that must be filled through reassignment, contracted staff, or voluntary/mandatory overtime.

• Complex timekeeping requirements. OSH must track and validate time worked, including overtime, for employees who may work in multiple areas during a single shift. Pay rules vary by unit, job class, and shift under three union contracts.

The OSH Time and Attendance Scheduling System (TASS) supports these needs by providing an integrated, real‑time solution for scheduling, staffing, and timekeeping. It ensures compliance with regulatory and legislative staffing requirements, supports State and Agency timekeeping rules, and eliminates duplicate data entry across systems.

2. External Force Disruptors Affecting Original Procurement Goals

The Oregon Legislature under HB 2697 is requiring OSH to upgrade their current TAAS system. The upgrades to the TAAS system are required in order to meet the mandate of bi-weekly payment by July

1, 2027 and maintain their current EHR system to maintain HIPPA compliance for OSH patients. Also, OSH wants to align the contract end date with the vendor’s monthly billing cycle to reduce the administrative overhead of pro-rating the first and last invoice of the contracting period. All three of these new requirements necessitate the upgrades detailed in “Current Need”.

c. Current Need:

This SP Amendment request is to extend existing contract #DASPS-1388-15 (“Contract”) with API

Healthcare Corporation through August 31, 2029.

In 2020, OSH aligned the contract end date with the vendor’s monthly billing cycle to reduce the administrative overhead of pro-rating the first and last invoice of the contracting period. An adjustment to the contract end date from August 25 to August 31 will align with the vendor’s monthly billing cycle and further reduce the administrative overhead of pro-rating the first and

REQ-DASOBO-00171919 SP Am 2 final Page 3 of 7 last invoice of the procurement period. Exercising the additional option years’ through August 31

2029, will be documented via Contract Amendment and will increase the NTE to allow for the required upgrades. Changes during this biennium to the Workforce Management System include:

1. System changes required to move from monthly to bi-weekly pay periods by July 1, 2027.

2. Purchase and installation of badge readers model TC-600 to replace current model TA-

500 badge readers. Contractor is no longer able to support software updates and version upgrades for TA-500 badge readers.

3. Implementation of several functionality enhancements during the 2025-2027 biennium to meet OSH operational goals and maintain regulatory compliance.

4. Purchase of additional user licenses to accommodate the legislatively approved increase in FTE positions at OSH.

5. Purchase licensing and professional services for implementation of three additional modules (Mobile App, Open Shift Notification, and Outcomes Analytics) to ensure essential business operations and provide necessary enhancements.

6. Increase contingency funds to allow for change orders and purchase of additional badge readers and user licenses to increase support to OSH, agency, and state-wide initiatives.

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The additional costs associated with this SP Amendment #2 are estimated to be $1,924,546.

The estimated cost are shown below:

9/1/25 - 8/31/26

9/1/26 - 8/31/27

9/1/27 - 8/31/28

9/1/28 - 8/31/29 Total

Year 2 Year 3 Year 4 Year 5 Equipment - Time

Clocks $103,000 $103,000

Mobile Time, Location & Scheduling

$50,400 $52,920 $55,566 $58,344 $217,230

Staffing and Scheduling

OSN

$42,000 $44,100 $46,305 $48,620 $181,025

Outcomes Analytics $38,640 $40,572 $42,601 $44,731 $166,543

Professional Services $84,110 $84,110

TA Licenses (+300) $33,262 $34,925 $36,671 $38,505 $143,363

SS Licenses (+300) $28,505 $29,930 $31,427 $32,998 $122,859

License File Install $2,640 $2,640

SUB TOTALS $382,557 $202,447 $212,569 $223,198 $1,020,771

Additional Contingency Funds $903,775

GRAND TOTAL $1,924,546

d. Proposed Contracting Procedure:

1. DAS SPS 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. DAS SPS will document the extension for time and increased compensation amount(s) through August 31, 2029in Amendment No. 19 to the Contract.

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

4. If no protests to this SP Amendment are received or sustained, DAS SPS – on behalf of OHA and OSH – will proceed with execution of amendment(s) for Services and Hardware from API as described in this SP Amendment Request.

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

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6. Pursuant to OAR 137-045-0015, DAS SPS – 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 Amendment with API, as required.

11. Justification for use of Special Procurement:

1. OSH received approval and direction under HB 2697 ( ORS 441.151) from the Legislature to add modules to the current OSH TASS system. OSH requires an increase to the NTE in order to implement the required changes to OSH’s TASS system.

2. OSH determined the 3 modules to solve issues with the current system, that require the following updates:

a. The Mobile app will increase system accessibility to self-service options, including staff schedule and time management features. This will reduce reliance on staffing and timekeeping personnel and reduce delays in submission and approval processes to better align OSH to meet regulatory requirements.

b. The Open Shift Notification module will automate the process of notifying staff of unfilled shifts to help ensure equitable distribution and compliance with union bargaining agreements, resulting in a reduction in employee grievances and increased facilitation of staffing units.

c. The Outcomes Analytics module will introduce advanced tools for real-time analytics and reporting, including historical trending and predictive scheduling. It will introduce real-time configurable dashboards for staffing and timekeeping to help identify staffing shortfalls and payroll trends.

3. It is not possible to complete the required upgrades in the time required by HB 2697(ORS 441.151) without using the current vendor’s user licenses, badge readers, additional modules, and professional services and an increase to the current NTE. The alternative to using the current vendor to complete the upgrades would require an open market RFP process to secure updated market bids from other vendors. An open market process would, based on past experience for SaaS solutions, require between 18 to 24 months from RFP creation to a potential new SaaS installation. The timeline required for an RFP process would not allow for completion of the upgrades by the required deadline of June 30,2027.

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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 a competitive solicitation process in which the current vendor, API, won the contract based on the highest overall score. API continues to provide good service and in order to serve the public and stay within regulatory guidelines, OHA must continue to use API until the upgrades mandated in HB 2697 are complete.

______ (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:

1. The Oregon Legislature, under HB 2697 (441.151), has mandated OHA to upgrade their current TAAS system at OSH. The upgrades to the TAAS system are required in order to meet the mandate of bi-weekly payment by July 1, 2027, update regulatory compliance for maintaining patient safety, and complete installations and upgrades of additional badge readers and system functionalities to meet expanded staffing at OSH provided by the Legislature. The upgrades required under HB 2697 must be completed by June 30, 2027 and it is not practical to complete the upgrades in the required time frame with anyone other than the current vendor. The only alternative to using the current vendor would require an open market solicitation to determine competitor vendor’s solutions which would require between 18 to 24 months to complete thus making it impractical.

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.

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.

APPROVED:

Kathryn Jones, State Chief Procurement Officer Date:

Department of Administrative Services, State Procurement Services

3/18/26