REQ-DASOBO-00208939_Creditron_DCBS_Signed.pdf

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REQUEST FOR SPECIAL PROCUREMENT (SP) No. REQ-DASOBO-00208939

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

1. Requesting Agency Name: Department of Consumer and Business Services (“DCBS”) or (“Agency”)

2. Date of Request: June 16, 2026 3. Agency Number: 44000

4. Agency Contact Name: Nicholas Brooks, Procurement and Contract Specialist

5. Phone: (971) 375-7760

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

7. Time Period Requested: From: October 1, 2026 To: September 30, 2031

8. Total Estimated Cost: $400,000

Note: With approval of this SP from DAS, the cumulative Total Estimated Cost will be $348,305.

9. Title: Supplies and/or Services to be Acquired: Maint-ItemAge Express Software subscription and licensing renewal (“Software”) or (“Services”)

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

a. Request:

The Department of Consumer and Business Services requests approval of this Special Procurement No. REQ-DASOBO-00208939 to amend purchase order #PO-44000-00022805 (“PO”) with Creditron Corporation (“Creditron”) for the Maint-ItemAge Express Software subscription and licensing renewal (“Services”), as follows:

1. increase the PO’s total estimated cost by $120,512.50;

2. extend the PO for up to an additional five years ending on September 30, 2031, allowing for transition time to the Oregon State Treasury (“OST”) cashiering solution for the electronic deposit of checks; and

3. conduct market research for a replacement solution to address additional DCBS financial transaction requirements not covered by the OST cashiering solution.

b. Background:

DCBS uses the Creditron Software to process all payments remitted directly to the Agency (check, credit card & cash) and to generate a data file for bank deposit payments received by check. The Software captures images and data for all Agency programs regarding payments received. There are approximately 500 different fee types that are collected across Agency divisions and sorted into accounts. Each fee needs to be sorted into an appropriate account, and fee types cannot be intermingled.

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On May 22, 2009, Agency conducted an intermediate solicitation process, Invitation to Bid (“ITB”) No. DCBS-1251-09. The ITB closed on June 16, 2009. Creditron was selected as the awarded vendor. No protests were received. As a result, Agency issued PO 12-315 for the hardware and software Services. This PO totaled $26,409.20. The initial term of this software licensing was from July 1, 2009 to June 30, 2011.

During the lifetime of this Software, the method in which cumulative spend was tracked for the Software procurements was changed and refined, leading to some procurement steps being completed later than they normally would have. The PO has since been ratified and the Services have received all approvals from Enterprise Information Services (“EIS”) and the Department of Justice (“DOJ”), as required. The cumulative spend for all Creditron Services rendered is shown in the table below:

PO Number Term Cumulative Spend

PO 12-315 7/1/09 – 6/30/11 $26,409.20

PO 12-351 8/1/11 - 7/31/13 $32,224.00

PO 12-353 10/01/13 - 9/30/23 $116,008.96

PO-44000-000228005 10/01/23 - 9/30/26 $53,150.32

7/1/09 – 9/30/26 $227,792.48

DCBS is currently in the process of replacing this Software with a new system operated by the Oregon State Treasury for electronic check deposits. Agency requires the use of Crediton Software to avoid any service gaps during the transition.

c. Current Need:

It is the Agency’s intent to renew its agreement with Creditron Corporation to maintain continuity of payment processing during the transition to the Oregon State Treasury’s Onsite Electronic Deposit (OED) cashiering solution, provided and supported by U.S. Bank.

OED will replace Creditron for check processing, including check and payment coupon imaging, OCR/data capture, fee-type sorting, and deposit processing. However, OED does not support the processing of credit card and cash payments, or provide Agency with direct access to a centralized payment database.

During the transition to OED for check processing, Agency requires the continued use of Creditron to process credit card and cash payments, and capture the associated payment data and images, Agency will develop an internal payment database and related processes to consolidate payment data from OED and Creditron. This capability is necessary to bridge the gap between the payment processing functions provided by OED and the information required by Agency’s accounting and program-area systems.

It is anticipated that the migration will be completed within this five-year period, after which DCBS will conduct market research and assess its continued need of the Creditron Software.

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The Maint-ItemAge Express Software subscription and licensing renewal through Creditron Corporation expires September 30, 2026. Therefore, DCBS is requesting to renew the Software subscription and licensing for up to five years from October 1, 2026 through September 30, 2031.

The cumulative spend for this PO is $227,792.48. An additional five-years of approximately $120,512.50 will bring the cumulative total to $348,304.98. See a breakdown of anticipated costs below in Estimated Cost Table 10.c.1:

Estimated Cost Table 10.c.1:

Year 1 Year 2 Year 3 Year 4 Year 5 Contingency

Funds over 5-yrs.

Total

Licensing and Hosting

$20,000.00 $21,000.00 $22,050.00 $23,152.50 $24,310.00 $10,000.00

$120,512.50

d. Proposed Contracting Procedure:

1. DCBS will issue a public notice (“Notice”) on OregonBuys®, as required by Oregon Administrative Rules (“OAR”) 125-247-0287 for a period of seven calendar days, regarding approval of the Special Procurement request.

2. Advertisement of the Special Procurement and Notice will include provisions that any Affected Person(s) may protest the approval of the Special Procurement.

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

4. If no protests to this Special Procurement are received or sustained, DCBS will proceed with amending the PO as described in Section 10.a, and under the provisions of Delegation Agreement No. REQ-DASOBO-00209619.

5. DCBS will work with EIS and obtain its endorsement prior to executing the PO amendment, as required.

6. Pursuant to Oregon Revised Statutes (“ORS”) 291.047 and OAR 137-045-0015, DCBS will work with the DOJ and obtain its legal sufficiency approval before executing the PO amendment, as required.

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

A Special Procurement is necessary. Over the lifetime of the PO, which resulted from the original ITB #DCBS-1251-09, and the following three Sole Source notices: #DCBS-1025-11, #S-44000-00010674, and #S-44000-00000708, no protests were received. The only procurement method available through which the PO can be amended to maintain the Services necessary is by the Special Procurement method under Oregon Revised Statutes (ORS) 279B.085, as Creditron is no longer the only platform that can provide this Service.

This is a bridge PO amendment to keep essential Services running until these Services can be either transitioned to OST’s cashiering solution or transferred to other in-house or third-party resources. The

REQ-DASOBO-00208939_Creditron Software_DCBS Page 4 of 6 initial timeline of this process is five years, however more time may be needed to account for compatibility issues with OST’s solution and Agency’s existing process.

This SP is necessary to ensure that this critical tool remains available to maintain essential business functions. Without this tool in place, Agency would not be able to process monies received from the public.

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:

Continuation of this PO for the Services would not diminish competition. Agency requires this Software for check processing and compatibility with Agency’s current accounting system.

Agency is in the midst of a process transition to the Oregon State Treasury recommended cashiering solution. The transition process started in 2020, but was delayed due to higher priority projects competing for the same Agency Information Technology (“IT”) resources. These projects include, but are not limited to, the Quarantine Time Loss project, Workers’ Compensation Division Weekly Wage Benefit Calculators project, Division of Financial Regulation Affordable Housing Provider Premium Assistance project, and the Agency Accessibility External Reports project. Agency expects to be able to complete this transition by 2031.

Approval of this Special Procurement would not encourage favoritism or diminish competition, because Agency is only seeking to continue the Creditron Services until it can complete its transition to the OST recommended solution. Agency has already signed an Interagency Agreement (#01A000055) in 2020 with OST and US Bank to transition off of the current Creditron Software into the OST recommended cashiering solution for electronic check deposits. Following the transition to OED for check processing, Agency will evaluate methods for capturing payment data and images associated with credit card and cash payments. Agency will conduct market research to evaluate available options, including solutions that may be developed in-house, procured, or implemented through a combination of approaches, and will determine whether a subsequent solicitation is necessary to address any remaining requirements.

and

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

N/A 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:

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A Request for Proposals (“RFP”) or similar method of procurement is not practical for DCBS’s situation.

DCBS will need to continue to have the Creditron Services until DCBS can transition to the cashiering system recommended by OST, which is provided and supported by U.S. Bank. If DCBS used an RFP or similar method to obtain a new vendor, the new vendor’s services would only be used for a gap period until the OST-recommended solution is available. Transitioning to a new vendor’s services would require a lengthy procurement process and implementation process during which the Creditron Services would need to still be available, and would lead to DCBS having to transition twice to the new OST-recommended services when they are available.

The OST-recommended solution will be the same system that is being used by many other State Agencies. A lapse in Services would leave the Agency with the prospect of handling all check cashing manually, which would require a significant amount of staff resources. Due to the complex nature of this work, it is not feasible to conduct this work without a software solution. There are currently no processes or resources available, and a lapse would result in Agency being unable to complete business-critical work.

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: Miriha Aglietti, Designated Procurement Officer 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(s) 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 PO amendment execution, if any.

4. During the term of this SP, DCBS will report back to DAS SPS the progress made on the OST OED transition project on year two (September, 2028) and every year thereafter until expiration of this SP.

APPROVED:

Kathryn Jones, State Chief Procurement Officer Date:

Department of Administrative Services, State Procurement Services

9/3/26