REQ-DASOBO-00209404_NextGen360_ODHS_Approved.pdf

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REQUEST FOR SPECIAL PROCUREMENT (SP) No. REQ-DASOBO-00209404

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 Department of Human Services (ODHS)

2. Date of Request: June 11, 2026 3. Agency Number: 10700 OBO 10000

4. Agency Contact Name: Sara Stone 5. Phone: 971-707-1658

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

7. Time Period Requested: From: July 1, 2026 To: June 30, 2031

8. Total Estimated Cost: $10,000,000 [estimate based on $1.8M/year × 5-year ceiling with buffer for potential reseller fees and cost variations]

9. Title: Supplies and/or Services to be Acquired: Deloitte’s NextGen360 Subscription Service license through Carahsoft, Inc. (authorized reseller) in support of Oregon's federal Medicaid Work Requirement (MWR) implementation under the ONE System (Services)

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

a. Request:

DAS SPS, on behalf of, ODHS requests approval of Special Procurement No. REQ-DASOBO- 00209404 to acquire the Deloitte NextGen360 Subscription Service license through Carahsoft, Inc., an authorized reseller designated by Deloitte for this product line, by direct award and negotiation.

The license is required to operate the ONE System's Medicaid Work Requirement (MWR) verification capability under federal mandate. Anticipated structure is an initial contract term with options to renew, up to a five (5) year maximum term and a maximum total compensation not-to-exceed (NTE) of $10,000,000.

b. Background:

ODHS administers Oregon's integrated public-assistance eligibility platform — the ONE System — supporting Medicaid, Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), Employment Related Day Care (ERDC), and related programs. The ONE System is operated by Deloitte Consulting LLP under State of Oregon Contract No. PO-DASOBO- 00015826, effective June 27, 2023.

Federal Medicaid Work Requirement (MWR) provisions require Oregon to verify qualifying work or community-engagement activities as a condition of Medicaid eligibility for affected populations, with a federal compliance implementation deadline of January 1, 2027. To meet this mandate while minimizing administrative burden on Oregonians, ODHS is implementing an MWR solution within the ONE System that automates eligibility verification by drawing on multiple external data sources.

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The ONE System is Oregon's integrated eligibility platform of record for Medicaid and other public-assistance programs. Implementing MWR within ONE leverages the established eligibility architecture, member data, and processing workflows already in use, avoiding the cost, schedule, and risk of building a parallel verification system or maintaining duplicate eligibility records across systems. The MWR solution requires the proprietary Deloitte NextGen360 Subscription Service license to enable the verification function. NextGen360 is purpose-built by Deloitte to integrate natively with the Deloitte NextGen Verification Hub deployed within ONE, providing the data-source connectivity, orchestration, and federally aligned verification logic required for Medicaid Work Requirement compliance. While general-purpose verification services exist in the market, none are integrated with the Deloitte verification architecture already deployed in ONE, and integrating an alternative product would require significant re-architecture of the ONE System that cannot be completed within the federal compliance timeline. The subscription is not available from any third-party vendor and is not substitutable with any non-Deloitte product.

The NextGen360 Subscription Service is proprietary to Deloitte. Deloitte has designated Carahsoft, Inc. as the authorized reseller for this product line. The State has an existing reseller relationship with Carahsoft via a Participating Addendum (PA) #9412, which already includes State-negotiated Terms and Conditions, federal flow-down provisions, and a DAS-approved contracting framework.

Acquisition through Carahsoft therefore, proceeds through an established State-authorized procurement channel within the federal compliance timeline. Direct procurement from Deloitte would require negotiating a new standalone agreement, including State Terms and Conditions and federal flow-down provisions, which cannot be completed before the federal Medicaid Work Requirement, compliance deadline of January 1, 2027. The subscription pricing through Carahsoft is anchored to Deloitte's product pricing; the primary driver for the Carahsoft path is contracting infrastructure and timeline, not cost differentiation.

c. Current Need:

Implementation of the MWR solution is on an externally imposed federal timeline. Deloitte has indicated that the NextGen360 Subscription Service must be in place prior to MWR product testing;

the working assumption is approximately six (6) weeks before testing is materially impacted.

Without the subscription in place, MWR cannot enter testing on schedule and Oregon risks non-compliance with federal MWR provisions, with downstream impact on Medicaid eligibility processing for affected Oregonians.

The federal MWR compliance implementation deadline is January 1, 2027. Failure to meet this deadline would expose the State of Oregon to substantial federal financial penalties. Competitive solicitation, evaluation, and implementation of any alternative architecture cannot be completed within this federally-mandated timeline. The Cost Table 10.c.1 below represents the anticipated cost for the requested 5-year term:

Cost Table 10.c.1 (5-year term):

Period Description *Estimated

Cost Year 1 NextGen360 Subscription Service license — annual term $1,800,000

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Year 2 NextGen360 Subscription Service license — annual term

$1,800,000

Year 3 NextGen360 Subscription Service license — annual term

$1,800,000

Year 4 NextGen360 Subscription Service license — annual term

$1,800,000

Year 5 NextGen360 Subscription Service license — annual term

$1,800,000

Subtotal Estimated Cost (5-year term)

$9,000,000

Total Estimated Cost Estimate based on $1.8M/year × 5-year ceiling with buffer for potential reseller fees and cost variations

$10,000,000

*Annual subscription cost shown is a working estimate of $1,800,000 per year for the NextGen360 Subscription Service.

The five-year term and total figure are illustrative pending Carahsoft's quote, which will be the source of confirmed pricing for the procurement record prior to award. Final figures are subject to (i) the initial contract term and renewal-option structure and (ii) Carahsoft's reseller terms. The Not-to-Exceed (NTE) amount of $10,000,000 in Section 8 includes a contingency buffer above the estimated five-year subtotal to accommodate authorized reseller fees and cost variations;

the State will only pay for services actually utilized.

d. Proposed Contracting Procedure:

1. DAS SPS, on behalf of ODHS, will issue a public notice (Notice) on OregonBuys® as required by

Oregon Administrative Rules (OAR) 125-247-0287, for seven (7) calendar days, regarding approval of the SP request.

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

3. DAS SPS, in coordination with ODHS, will respond to and resolve protests, if any.

4. If no protests to this SP are received or sustained, DAS SPS, on behalf of ODHS, will proceed with the direct award and negotiation of a contract as described in Section 10.a.

5. DAS SPS, on behalf of ODHS, will work with Enterprise Information Services (EIS) and obtain its endorsement prior to executing the contract, as required.

6. Pursuant to ORS 291.047 and OAR 137-045-0015, ODHS will work with Oregon Department of

Justice (DOJ) and obtain its legal sufficiency approval prior to executing the contract, as required.

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

Special Procurement is the sourcing method compliant with Oregon’s Public Contracting Code (the Code), set out in Oregon Revised Statutes (ORS) Chapters 279A, 279B, and 279C, that best supports the acquisition of this subscription within the federal compliance timeline. Other sourcing methods under the public contracting code do not support the timeline or need. Competitive solicitation under ORS 279B.055 (Competitive Sealed Bidding) or 279B.060 (Competitive Sealed Proposals) is not practicable: the required subscription is proprietary to a single vendor, no functionally equivalent product exists in the market, and the federal compliance timeline does not allow for solicitation, evaluation, award, and implementation in advance of the testing milestone. Intermediate procurement

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(ORS 279B.065) and small procurement (ORS 279B.070) thresholds are not viable given the estimated dollar value of the acquisition. The limits of a contract sourced as an Emergency Procurement under ORS 279B.080 mean the emergency route is not considered to be an adequately robust procurement method at this time.

• The NextGen360 Subscription Service is a proprietary Deloitte product, available only from Deloitte or its authorized resellers, with Carahsoft, Inc. designated by Deloitte as the authorized reseller for this product line. It is not interchangeable with any other vendor's offering.

• The subscription is required to operate the MWR solution within the ONE System; no other vendor's product can substitute for it in this architecture.

• The federal MWR compliance implementation deadline of January 1, 2027, does not permit time for competitive solicitation, evaluation, and implementation of any alternative architecture.

Failure to meet this deadline would expose the State of Oregon to substantial federal financial penalties and disrupt Medicaid eligibility processing for affected Oregonians.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

☒ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

The Services to be acquired are a single proprietary product, Deloitte's NextGen360 Subscription Service, with no functionally equivalent competing product available within the federal compliance timeline, meaning there is no field of competing offerors to favor or disadvantage. The acquisition is a fixed-scope purchase through an authorized reseller channel designated by Deloitte and does not create an ongoing preference, exclusivity, or competitive advantage for any vendor in future State procurements.

and

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

or

☒ (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:

This Special Procurement substantially promotes the public interest by enabling Oregon's timely compliance with federal Medicaid Work Requirement provisions, protecting the State from substantial federal financial penalties and protecting affected Oregonians from disruption to Medicaid eligibility processing. Time is of the essence to meet the federal compliance deadline of January 1, 2027.

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.

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Signature: e.g. Electronically in OregonBuys® _________________ Type Name: 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 contract execution, if any.

APPROVED:

Kathryn Jones, State Chief Procurement Officer Date:

Department of Administrative Services, State Procurement Services

6/28/26