REQ-DASOBO-00196739 Approved- Special Procurement Letter.pdf

SP_REQ-DASOBO-00023971_ORCHARDS Background Check System Page 1 of 7 (formerly SP-1106-19)

REQUEST FOR SPECIAL PROCUREMENT

REQ-DASOBO-00196739, Amendment No. 2

Formerly REQ-DASOBO-00023971 (Amnd#1) & SP-1106-19 (Original)

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

1. Requesting Agency Name: Oregon Department of Human Services (ODHS)

2. Date of Request: April 28, 2026 3. Agency Number: 100006

4. Agency Contact Name: Enrique Rodriguez 5. Phone: 503-569-8279

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

7. Amendment Time Period Requested: From: July 1, 2026, To: June 30, 2027

8. Total Estimated Cost for Amendment Time Period: $498,000.

Note: This SP Amendment No. 2 Request seeks an increase of $498,000 to the ‘Total Estimated Cost’ of the approved Special Procurement. With approval of this Amendment #2 Request, the cumulative ‘Total Estimated Cost’ of Special Procurement formerly #REQ-DASOBO-00023971 and SP-1106-19 will be $3,398,000.

9. Title: Supplies and/or Services to be acquired: ORCHARDS Background Check System Services including:

• Data Hosting Services

• Reciprocity Services

• Technical Assistance Services

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

a. Amendment Request. ODHS, Background Check Unit (“BCU”) requests approval of this Special Procurement (“SP”) #REQ-DASOBO-00196739 (formerly #REQ-DASOBO-00023971 and SP-1106- 19), Amendment #2 Request to amend Contract #159668 (“Contract”) issued to Innovative Architects, LLC (“IA” or “Contractor”) as follows:

• add one (1) additional year of Technical Assistance, through June 30, 2027; and

• increase the Maximum Not-To-Exceed Compensation (“NTE”) an additional $498,000 (see

Table 10.C below).

The anticipated Contract amendment (“Amendment #2) will enable continued technical support and enhancements for the Oregon Criminal History and Abuse Records Data System (“ORCHARDS”) background check system utilized by ODHS and Oregon Health Authority (“OHA”).

b. Background. The following represents the chronological flow of events related to this SP Amendment#1 Request and the related Contract:

REQ-DASOBO-00196739 formerly- REQ-DASOBO-00023971 & SP-1106-19 159668-2 SP Amnd v3 Final

• March 13, 2019: Special Procurement SP-1106-19 seeking approval for ODHS/OHA to directly contract with IA for ORCHARDS Background Check System Implementation, Operational Support, Maintenance, and Data Hosting Services (the “Project”) was approved.

• March 13, 2019: Public Notice of the approved SP-1106-19 was posted on the Oregon Procurement Information Network (“ORPIN”), the State’s eProcurement system of record at that time, and closed March 20, 2019, without protest.

• July 9, 2019: The Contract was executed for a 7-year term through June 30, 2026, in the amount of $1,500,000.

• September 23, 2021: Contract Amendment #1 was executed and effectively:

o Increased the NTE an additional $325,000, for a cumulative NTE of $1,825,000; and o added the requirement for Contractor to provide Technical Assistance Services.

For additional historical and background information see Attachment 1, REQ-DASOBO-00023971 (Amnd#1) & SP-1106-19 (Original).

c. Current Need. There are two needs driving this SP Amendment #2 Request.

1. ORCHARDS is a critical system for both ODHS and OHA. ORCHARDS is specifically utilized by BCU in the discharge of its background checking duties for both agencies.

Continued ORCHARDS system services through June 30, 2027 are vital because the system is essential to BCU’s ability to conduct required background checks for ODHS, OHA, and more than 3,000 Qualified Entities statewide. Any disruption to hosting, reciprocity functions, or technical assistance support would impede statutory background check processes under ORS

443.004 and delay fitness determinations for thousands of state staff, contractors, volunteers, and approximately 180,000 providers of care.

Disruption of these services would create the following significant risks:

• Delays or stoppages in background check processing o Interruptions would prevent BCU from receiving, processing, and completing checks, creating immediate backlogs and preventing timely determinations.

• Agency compliance risks o ODHS and OHA could face regulatory, legal, or audit findings for failing to meet requirements under ORS 443.004.

• Workforce onboarding delays o New hires, contractors, and volunteers cannot begin work without completed determinations, impacting staffing levels and service delivery across multiple programs.

• Loss of reciprocity between more than 3,000 Qualified Entities o A system outage would block sharing of existing determinations, forcing repeat checks, slowing processing times, and increasing workload and costs and further delay service delivery across multiple human services sectors.

• Risks to public and client safety o Inability to assess whether individuals are fit to provide care or serve vulnerable populations poses significant safety concerns for clients and the public and delays impact service providers ability to staff critical functions.

• Statewide service disruptions o Approximately 180,000 providers of care rely on ORCHARDS to maintain active status.

Interruptions could limit provider availability and impact critical health and human services.

Ensuring uninterrupted system support through the remainder of the Contract term is therefore essential to uphold statutory obligations, operational continuity, and the safety-critical functions the ORCHARDS system enables.

2. The SP ‘Total Estimated Cost’ must be reconciled with the Contract NTE.

The following Table 10.C illustrates reconciliation of the SP ‘Total Estimated Cost’ and the Contract as anticipated through Amendment #2. Information related to this SP Amendment #2.

TABLE 10.C

Description Contract Term SP-1106-

19 Total Cost

SP REQ-

DASOBO-

00023971-

Amd 1

SP REQ-DASOBO-

00023971-Amd 2

(07/01/26 to 06/30/27)

Original contract

NTE

Contract Amd 1

Amd 2

Amd 3

ORCHARDS

Data Hosting

7/9/19-6/30/27 $546,000 $126,000 $180,000 $672,000 n/a n/a $180,000

Reciprocity Services

7/9/19-6/30/27 $126,000 $0 $30,000 $126,000 n/a n/a $30,000

Technical Assistance

5/1/19-9/22/21 4/30/22-6/30/23 7/01/23-6/30/24 7/01/24-6/30/25 7/01/25-6/30/26 7/01/26-6/30/27

$0 $1,027,000 $ 325,000 $ 250,000 $ 250,000 $ 250,000

$288,000

$702,000 $325,000 $325,000 $250,000 $250,000 $250,000

$288,000

Miscellaneou s

$32,500 <$32,500> $0 $0 $0 $0 $0

Subtotals: $704,500 $2,195,500 $498,000 $1,500,000 $325,000 $1,075,000 $498,000

TOTALS: Special Procurement through Amendment #2:

$3,398,000

Contract NTE through Amendment #2: $3,398,000

d. Proposed Contracting Procedure:

1. As required by OAR 125-247-0287, ODHS will issue a public notice (“Notice”) of the approved

SP Amendment #2 on OregonBuys for a period of seven (7) calendar days.

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

Amendment #2.

3. ODHS, in coordination with Oregon Department of Administrative Services (“DAS”), will respond to and resolve all protests, if any.

4. If no protests to this SP Amendment #2 are received or sustained, ODHS will proceed with issuing the Contract amendment(s) as set out in Section 10.a, Amendment Request.

5. ODHS will work with DAS Enterprise Information Services (“EIS”) and obtain its endorsement prior to executing the Contract amendment(s), as required.

6. Pursuant to OAR 137-045-0015, ODHS will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing all Contract amendment(s), as required.

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

• ORCHARDS is a proprietary, custom‑designed system that only the current contractor can maintain, support, or modify. Because no other vendor has access to the system’s codebase or architecture, competitive bidding is not feasible without developing a full system replacement.

• ORCHARDS is essential to BCU’s delivery of background check services for ODHS, OHA, and all Qualified Entities, including:

o employees;

o contractors, subcontractors, vendors, and volunteers;

o individuals employed by Qualified Entities regulated by ODHS or OHA.

• ODHS and OHA must comply with ORS 443.004, and BCU relies on ORCHARDS to meet statutory and policy requirements for processing and determining background check eligibility statewide.

• The contractor’s technical support and required system enhancements are integral to maintaining functionality and ensuring continued compliance with evolving federal and state background check mandates.

• The need for this extension was not reasonably foreseeable under the original 7‑year contract because significant regulatory changes, increased background check volume, and unanticipated system enhancement needs materially extended reliance on the existing platform.

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: IA’s involvement is based on unique, established expertise that other vendors are not positioned to provide. Specifically:

• IA originally developed the ORCHARDS system with technical assistance from the CMS National Background Check Program, giving IA exclusive system-specific knowledge. The ORCHARDS system is proprietary to IA and the platform is utilized by many other States for the purposes of background checks. Because IA is the only provider with direct knowledge of the system’s underlying architecture and historical development, no other vendor could assume these services. Transition to a new vendor would require procurement of a new system and would substantially disrupt operations and significantly increase cost.

• The system managed by IA was the only system that could provide the services the State needed when it was deployed to Oregon.

• IA has been continuously providing ORCHARDS Technical Assistance Services to BCU since the expiration of ODHS’s federal grant, ensuring continuity of operations and making them the only vendor with current, hands-on familiarity with system functionality and history.

• The negotiated Contract includes Technical Assistance Services directly tied to ORCHARDS' existing architecture. Given IA’s role in building and supporting the system, it is reasonable, and operationally necessary, for them to continue providing these services through the continuance of their system.

• Extending the contract through June 30, 2027 provides ODHS and OHA sufficient time to complete requirements analysis, evaluate alternative solutions, and conduct a competitive procurement.

The facts and circumstances detailed in Attachment-1, Approved SP-1106-19, are still applicable.

and

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

Replacing the current system would have a significant operational impact and disrupt the community that actively relies on the platform. High-level estimates indicate that designing, developing, and implementing a comparable modern solution would cost approximately $5-$7 million. By maintaining and enhancing the existing system instead of pursuing a full replacement, the agency avoids these substantial redevelopment costs, resulting in meaningful cost savings for both the agency and the public.

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:

BCU depends on ORCHARDS for the conduct of background checks and to receive fitness determination results for thousands of people including:

• 9,800 ODHS staff

• 4,381 OHA staff

• Employees of 3000+ QEs, which are regulated by ODHS and OHA

• Hundreds of volunteers

• Hundreds of contractors and subcontractors

• Approximately 180,000 providers of care in industries such as long-term care, Traditional Health

Workers, Personal Support Workers and more.

Background checks are an Oregon statutory requirement and are important for workplace and public safety. Maintaining ORCHARDS system Technical Assistance (support) Services through the Term of the Contract is in ODHS’, OHA’s, and the public’s interest.

The facts and circumstances detailed in Attachment-1, Approved SP-1106-19, are still applicable.

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: Kirk Rhodes (DPO) Electronically via Email _04/28/2026________ Name/Title: Date:

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

5/29/26