REQ-DASOBO-00220966_AMD-2_eAVS_ODHS_CPOSigned.pdf

REQ-DASOBO-00220966_AMD-2_eAVS_ODHS Page 1 of 5 (SP-1049-18 & REQ-DASOBO-00050673, Amendment No. 1)

REQUEST FOR SPECIAL PROCUREMENT (SP) No. REQ-DASOBO-00220966 (formerly Original SP-1049-18 & REQ-DASOBO-00050673, Amendment No. 1), Amendment No. 2

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

1. Requesting Agency Name: The Department of Administrative Services, State Procurement Services (“DAS SPS”) on behalf of the Oregon Department of Human Services (“ODHS” or “Agency”)

2. Date of Request: September 23, 2026 3. Agency Number: 10700 OBO 10000

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: January 1, 2027 To: June 30, 2028

8. Total Estimated Cost for Amendment Time Period: $1,181,700 for the 18 months, based on expenditure analysis of eAVS usage for the last two fiscal years. Currently no change is needed in the current not-to-exceed (“NTE”) of $7,545,100.

9. Title: Supplies and/or Services to be acquired: Stand-alone portal and ongoing electronic Asset Verification Services (“eAVS”) that meet the federal Centers for Medicare & Medicaid Services (“CMS”) requirements

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

a. Amendment Request:

DAS SPS, on behalf of ODHS, seeks approval of SP No. REQ-DASOBO-00220966, Amendment No. 2 (“SP AMD-2”) Request to amend Contract No. PO-DASOBO-00065275 (formerly ODHS Contract #158352) issued to Public Consulting Group, Inc. (“Contractor” or “PCG”) as follows:

1. correct the reported Contract No. of PO-10700-00028094 in REQ-DASOBO-00050673 (“SP AMD-1”) to the new Contract No. PO-DASOBO-00065275; and

2. extend the term by eighteen (18) months, through June 30, 2028.

b. Background:

In 2018, ODHS conducted an expedited solicitation to implement electronic Asset Verification Services (“eAVS”) in response to CMS requirements. Public Consulting Group, Inc. (“PCG”) was selected to provide the stand-alone portal and eAVS processing. The eAVS solution was fully integrated into the OregONEligibility (ONE) system in 2021.

The Special Procurement and resulting Contract have been extended to ensure compliance with federal law (42 U.S.C. 1396w) and continuity of eligibility operations.

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Since posting the SP AMD-1 notice in OregonBuys® in December 2023, significant challenges have delayed the development and release of the planned competitive solicitation Request for Proposals (“RFP”) #DASOBO-00012870. These challenges include:

1. Multiple personnel transitions within the contract administration team, including the assignment of a new contract administrator in June 2026, which required time for onboarding and re-establishing project continuity.

2. Highly complex policy changes, including the incorporation of updated Web Content Accessibility Guidelines (“WCAG”), which required substantial revisions to system requirements, procurement language, and technical specifications.

3. The complexity of eAVS integration requirements and the evolving federal regulatory landscape, requiring additional analysis, drafting, and coordination with Enterprise Information Services (“EIS”), Oregon Health Authority (“OHA”), CMS, and business partners.

As a result of these cumulative challenges, development of the competitive RFP has taken longer than initially projected, and the RFP remains in its final drafting stage.

This SP-AMD-2 is necessary to maintain uninterrupted eAVS services, while the competitive procurement is finalized and issued.

For additional historical and background information see Attachment No. 1, Original SP-1049-18 and Attachment No. 2, REQ-DASOBO-00050673, Amendment No. 1.

c. Current Need:

Agency requires an eighteen-month extension of the current eAVS Contract to maintain federally mandated eAVS functionality, while the new RFP is completed.

No additional NTE is needed for 2028 year, costs are based on expenditure trends from FY 2024–2026 and reflects:

• monthly eAVS system maintenance and operations;

• property data services (LexisNexis); and

• increased transaction volume exceeding 3,500 transactions per month, which has steadily grown over the last two fiscal years.

This extension ensures continuity of service, while Agency resolves remaining RFP development barriers and moves toward competitive solicitation.

d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, DAS SPS will issue a public notice (“Notice”) of this approved SP AMD-2 on OregonBuys® 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

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AMD-2.

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

4. If no protests to this SP AMD-2 are received or sustained, DAS SPS, on behalf of ODHS, will proceed with amending the Contract as set out in Section 10.a above.

5. DAS SPS will obtain EIS endorsement before executing the next Contract Amendment.

6. Pursuant to ORS 291.047 and OAR 137-045-0015, DAS SPS will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the Contract Amendment, as required.

11. Justification for use of Special Procurement:

The Contract resulted from approved Original SP-1049-18 (“Attachment-1”) and SP AMD-1 (“Attachment-2”) and is, therefore, tied to the SP for the life of the Contract. The only procurement method available through which the Contract can be amended as described in this SP AMD-2, is an amendment to the original, approved SP and SP AMD-1.

This SP AMD-2 continues to ensure uninterrupted services mandated by 42 U.S.C. 1396w, just as stated in the 2023 justification supporting SP AMD-1.

As noted previously, if this Special Procurement is not approved, ODHS would be out of compliance with federal requirements, including CMS mandated eAVS usage for determining and redetermining Medicaid eligibility for aged, blind, and disabled individuals. This could result in Federal Medical Assistance Percentage (“FMAP”) penalties and immediate disruption to Medicaid eligibility operations.

Additionally, delaying or terminating eAVS services would force the Agency to rely solely on manual financial asset verification, significantly increasing administrative burden, processing time, and risk of incorrect eligibility determinations.

SP AMD-2 is necessary because multiple operational, staffing, and compliance challenges delayed completion of the competitive RFP, including:

• contract administration turnover and assignment of a new administrator in June 2026;

• complex policy changes, including new WCAG accessibility requirements; and

• additional time required to ensure AVS specifications reflect updated federal regulatory requirements and ONE system architecture.

Because these factors added additional time needed to complete a competitive procurement, additional time and funding are required to ensure continuity of federally mandated eAVS services while Agency completes RFP #S-DASOBO-00012870.

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:

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The Contract extension that would be allowed under this SP AMD-2 does not encourage favoritism, nor substantially diminish competition. Instead, it enables ODHS to finalize the competitive RFP process, while verifying compliance with federal requirements. Agency remains committed to open competition and is actively developing RFP #DASOBO‑00012870 for release on or before Quarter 4, 2026.

This SP AMD-2 maintains the integrity of the competitive process by limiting the extension strictly to the time needed to complete the competitive RFP, and it does not alter award conditions or introduce any vendor advantage.

and

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

Maintaining the existing Contract through June 30, 2028 results in substantial cost savings, because PCG already provides a fully integrated, CMS‑compliant eAVS solution that meets Agency’s operational and regulatory needs. Continuing this Contract avoids the significant costs and risks associated with a service interruption, an emergency procurement, or restarting implementation with a new vendor at this time. Extending the Special Procurement allows Agency to complete the competitive RFP, without incurring avoidable transition expenses, system redevelopment costs, or disruptions to federally required eligibility processes.

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:

This SP AMD-2 promotes the public interest by ensuring uninterrupted eAVS services required under 42 U.S.C. 1396w and avoiding the risk of potential FMAP penalties for failing to engage in such services. Contract continuity through June 30, 2028 is necessary, because completion of the competitive RFP has been delayed due to contract administration turnover, including assignment of a new administrator in June 2026, and recent policy updates necessitating updating of solicitation documents. These factors made timely completion of the solicitation impracticable, and extending the Special Procurement ensures continued federal compliance while the RFP is finalized.

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(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 amendment execution, if any.

APPROVED:

Kathryn Jones, State Chief Procurement Officer Date:

Department of Administrative Services, State Procurement Services

10/2/26