S-10000-00007057 Final.pdf

SOLE-SOURCE DETERMINATION MEMO

FOR SUPPLIES AND SERVICES

Date: June 7, 2023 Sole source number: S-10000-00007057

To: Kirk N. Rhoades, Designated Procurement Officer DHS Office of Contracts & Procurement

Requestor: Max Seiler Agency/division: Oregon Department of Human Services, herein after referred to as “Agency” Program/office: Office of Resilience and Emergency Management Contract specialist: Bill Evans

Agency Sole source rule: Sole source authority:

DHS OAR 125-247-0275 DAS Delegation 649-11, as amended

Estimated total contract value: $334,007.81

Description of goods or services: DLX Shelter Systems, ASAP-18 and ASAP-HUB Shelter Components, HVAC Equipment, and DLX Accessories.

1. Background:

This sole source justification applies to the purchase of DLX Enterprises, LLC’s, dba Deployed (DLX), DLX Shelter Systems, ASAP-18 and ASAP-HUB Shelter Components, HVAC Equipment, DLX Accessories (See Attachment 2), herein after referred to as “Evacuation Assembly Point Kit(s)” (EAP Kit(s)).

The State of Oregon has experienced several natural disasters beginning in 2020 and have continued in to 2023. The Agency has realized the critical need for mass care solutions of emergency sheltering and supplies for Oregonians when a natural disaster occurs. Under the State’s Comprehensive Emergency Management Plan the Agency (ODHS) is the Primary Agency responsible for Emergency Support Function 6 and State Recovery Function 4 to provide Mass Care, Emergency Assistance, and Social Services to Oregonians. Mass Care includes: Sheltering; Feeding operations; Emergency first aid;

Bulk distribution of emergency items; and Collecting and providing information on individuals affected by a disaster to family members. Emergency Assistance includes:

Family reunification; Sheltering for household pets and service animals; and Distribution of donated goods.

During two declared natural disasters in 2022, the Agency purchased DLX EAP Kits in order to perform the Agency’s Emergency Support Function 6 and State Recovery

Function 4 roles for Oregonians who were affected by both natural disasters. The Agency has gained more insight and experience on the functionality of DLX EAP Kits since the purchase of the initial DLX EAP Kits in 2022. Based on the Agency’s better understanding on the functionality of DLX EAP Kits and DLX product line, with this purchase the Agency intends to build and expand their EAP Kits as warming, cooling, and clean air packages that will be prepositioned and deployed when a natural disaster incident occurs.

2. Prospective contractor/vendor:

Legal entity name: DLX Eneterprises, LLC DBA: Deployed Logix Address: 1075 Arrowsmith Street, Eugene, OR 97402 Contact person: Mark Punzel, Jr.

Phone: 541-357-5978 Email: mpunzel@deployedlogix.com

Protests are due by 3:00 PM within seven calendar days after the first date this notice is posted on OregonBuys, Oregon’s new E-Procurement System. Protests must be sent via mail, email, or hand carried (protests submitted via fax and telephone will not be accepted) to the following address:

Oregon Department of Human Services, Office of Contracts and Procurement ATTN: Bill Evans Address: 500 Summer St NE, E-03, Salem, OR 97301 Phone: 971-283-4703 Email: william.f.evans@odhsoha.oregon.gov

Agency reserves the right to purchase additional goods or services from DLX, to include, but not limited to, on-call maintenance, preventative maintenance, repairs (unless available on DAS price agreement), or training. A State of Oregon Purchase Order will be used by Agency to make any purchases resulting from this Sole Source. Any Purchase Order resulting from this Sole Source that exceeds $150,000.00 must be reviewed DOJ for legal sufficiency prior to award.

3. Written findings of fact (market research):

The findings below must include factual information supporting the determination that meet the sole source requirement in statute.

Pursuant to ORS 279B.075, Agency must conduct market research that supports the assertion that there is only one source that can provide the goods or services. Market research includes utilization of the internet, trade journals, agency vendor lists, professional organizations, studies, catalogs/industrial periodicals, vendor sources, yellow pages, etc.

For information technology contracts, any ownership or proprietary issues should be fully addressed with written documentation to support facts.

Agency must select at least one of the findings and prepare the determination as it specifically relates to the good or service being procured. More than one finding can be addressed. The findings are as follows:

Pursuant to ORS 279B.075 (2)(a): Provide findings supporting the determination that the efficient utilization of existing goods requires the acquisition of compatible goods or services from only one source.

Per the attached Statement of Sole Source from DLX Eneterprises, LLC (See Attachment 3), DLX equipment is proprietary, and they are the sole-source providers for their EAP shelter systems, shelter components, HVAC equipment, and DLX accessories. DLX shelter systems, components, equipment, and accessories are patented, and are specifically designed to only work with their shelter systems.

Purchasing equipment from other vendors would not be compatible with the current Agency owned DLX EAP Kits, components, and equipment and will result in the Agency being inefficient in performing their Emergency Support Function 6 and State Recovery Function 4 roles during a natural disaster incident.

For example, if Agency purchased another shelter system kit from the open market, it would not be compatible and able to connect to the Agency owned DLX EAP Kits. This may lead to Agency not being able to appropriately control the environment within a shelter or properly secure it while occupied by Oregonians that are affected by a natural disaster event.

or Pursuant to ORS 279B.075 (2)(b): Provide findings supporting the determination that the goods or services required for the exchange of software or data with other public or private agencies are available from only one source. N/A or Pursuant to ORS 279B.075 (2)(c): Provide findings supporting the determination that the goods or services are for use in a pilot or an experimental project. N/A or

Pursuant to ORS 279B.075 (2)(d): Any other findings that support the conclusion that the goods or services are available from only one source.

DLX Eneterprises, LLC in their letter dated April 19, 2023 (See Attachment 3) confirmed they are the exlusive owner, manufacuter, designer, and sole-source provider of DLX products.

APPROVED:

By:

DPO Kirk N. Rhoades, or acting DPO

Approved By DPO via Digital Signature in OregonBuys

ATTACHMENT 1

DETERMINATION OF BRAND NAME SPECIFICATION

Requestor: Max Seiler Agency/division: Oregon Department of Human Services, herein after referred to as “Agency” Program/office: Office of Resilience and Emergency Management

Agency Brand name statute/rule: Brand name authority:

DHS OAR 125-247-0691 OAR 125-246-0170(2)

2. Brand name to be acquired:

Legal entity name: DLX Eneterprises, LLC DBA: Deployed Logix Address: 1075 Arrowsmith Street, Eugene, OR 97402 Contact person: Mark Punzel, Jr.

Phone: 541-357-5978 Email: mpunzel@deployedlogix.com

3. Findings to satisfy required standards:

Use of a brand name specification is unlikely to encourage favoritism in the awarding of public contracts or substantially diminish competition for public contracts because: N/A or Use of a brand name specification would result in substantial cost savings to the agency or the public because: N/A or There is only one manufacturer or seller of the product of the quality, performance or functionality required; because: N/A or The efficient utilization of existing goods requires the acquisition of compatible goods or services because:

Agency has committed significant resources in purchasing the current on-hand DLX EAP Kits, components, equipment, and accessories owned by the Agency, as well as staff training on the set-up and functionality of the on-hand DLX EAP Kits.

Transitioning to another EAP Kit system and components that are not compatible with the currently owned DLX EAP Kits would make them non-functional or even obsolete for use by the Agency during a natural disaster incident.

FINDINGS

The findings are accepted, adopted, and incorporated by reference herein.

DLX Enterprises, LLC Deployed Logix 1075 Arrowsmith St.

Eugene, OR 97402

Quote

DATE ESTIMATE #

6/6/2023 125108

BILL TO SHIP TO

Micah Goettl OR // Oregon Department of Human Services 500 Summer St. NE E-15 Salem, OR 97301

Micah Goettl OR // Oregon Department of Human Services 500 Summer St. NE E-15 Salem, OR 97301 micah.t.goettl@dhsoha.state.or.us

Item Description Qty Rate Amt HC752524 Earth Best Case by DLX™ Earth 75 x 25 x 24 in (194.63 x 63.50 x

60.96 cm) 16 $2,302.70 $36,843.20

CCA184QRB ASAP-18 INSULATION LINER - 4-QUARTER DIVIDER

COMPATIBLE

• (1) ASAP-18 insulation liner w/ radiant barrier and aluminized backing, 15 x 18 ft (4.57 x 5.49 m)

• (6) Screen windows

• (6) Built-in duct openings

• (2) Removable 2-Door endwalls

3 $526.15 $1,578.45

SOA4QDC 4-WAY DIVIDER CURTAIN FOR ASAP-18

•Divides an ASAP-18 into 4 equal quarters •Order with Endwall SOAWDD, Insulation CCA184QRB, and floor SOFA184Q

2 $1,517.25 $3,034.50

SOA184QF ASAP-18 FLOOR - Divider Compatible

• Use with 4-Quarter Divider SOA4QDC

2 $1,184.99 $2,369.98

CCA18RB ASAP-18 INSULATION LINER

• (1) ASAP-18 insulation liner w/ radiant barrier and aluminized backing, 15 x 18 ft (4.57 x 5.49 m)

• (6) Screen windows

• (6) Built-in duct openings

• (2) Removable endwalls

15 $3,411.14 $51,167.10

FA18AB4 ASAP-18 // ASAP HUB // X-HUB // ATLAS ANCHOR KIT

• (4) ATLAS® Anchors with a 3-chamber firm ground anchor system

• (25) Liners

• (12) Wind lines

• Carry bag

1 $1,146.27 $1,146.27

CCH16RB ASAP-HUB INSULATION LINER

• ASAP-HUB insulation liner w/ radiant barrier & aluminized backing, 15 x 18 ft (4.57 x 5.50 m)

• (8) Built-in duct openings

• (4) Removable endwalls

1 $3,916.61 $3,916.61

HC1002524 Earth Best Case by DLX™, Earth, 101.13 x 25 x 24 in (256.87 x 63.50 x 60.96 cm)

1 $2,660.23 $2,660.23

ATTACHMENT 2

DLX ENTERPRISES, LLC PRODUCTS QUOTE

HC502524 Earth Best Case by DLX™, Earth, 50.13 x 25 x 24 in (127.33 x 63.50 x 60.96 cm)

1 $1,790.76 $1,790.76

SOAEWDD ASAP ENDWALL (1) • Single Endwall with 2 Doors, Tan. For use with SOA4QDC.

4 $248.20 $992.80

SMRPAHUBT MRP // ASAP-HUB // TAN

• MRP ASAP-HUB Tan Shelter 17 x 17 ft (5.18 x 5.18 m)

• Mil Spec blackout vinyl

• LED stringable lights

• Wiring harness (110V)

• ATLAS® Anchors

• (1) Roof

• (2) Removable endwalls

• (1) Insulation liner w/ radiant barrier aluminized backing

• (1) Waterproof vinyl floor

• (1) Stake kit

• (4) ASAP® Connector w/ peak, floor, insulation connecting strip

• (1) Best Case by DLX™ Earth w/ Table Kit 101.13 x 25 x 24 in (256.87 x 63.50 x 60.96 cm)

• (1) Best Case by DLX™ Earth 50.13 x 25 x 24 in (127.33 x

63.50 x 60.96 cm)

1 $26,274.13 $26,274.13

CCH16AP ASAP-HUB AIR PLENUM

• ASAP-HUB Air Plenum, 8 ft (2.44 m)

• Carry Bag

1 $840.18 $840.18

CCA18AP ASAP-18 AIR PLENUM

• ASAP-18 Air Plenum, 18 ft (5.48 m)

• Carry Bag

15 $809.34 $12,140.10

TGDLX1 DLX TRAINING 1 Day

• (1) DLX trainer

• (1) Day (up to 8 Hrs) DLX equipment instruction on setup/ takedown/ packing/ care & maintenance

1 $2,490.00 $2,490.00

SMRPA18T MRP // ASAP-18 // TAN

Key items on this quote have been purchased before.

Equipment integrates with past orders. Shelters/equipment need to interchange with other deployable assets in the region held by mutual aid agencies such as Linn County, Marion County, Oregon Health Authority, Deschutes County, Oregon Healthcare Coalition, Jackson County and more.

• MRP ASAP-18 Tan Shelter 18 x 16 ft (5.49 x 4.88 m)

• Mil spec blackout vinyl

• LED stringable lights

• Wiring harness (110V)

• ATLAS® Anchors

• Repair poles and spare parts

• (1) Roof

• (2) Removable endwalls

• (1) Insulation liner w/ radiant barrier aluminized backing

• (1) Waterproof vinyl floor

• (1) Stake kit

• (1) Best Case by DLX™ Earth w/ Table Kit 75 x 25 x 24 in (194.63 x 63.50 x 60.96 cm)

6 $15,795.15 $94,770.90

CCHVAC5T 5.0 TON HVAC

Key items on this quote have been purchased before.

Equipment integrates with past orders. Shelters/equipment need to interchange with other deployable assets in the region held by mutual aid agencies such as Linn County, Marion County, Oregon Health Authority, Deschutes County, Oregon Healthcare Coalition, Jackson County and more.

• Dimensions LWH: 60 x 35.5 x 47.5 in (153.4 x 90 x 121 cm)

• 230V Single PH / 60HZ

• Powder coated finished cabinet

• All-Way wheeled caster system with brakes

• (1) Thermostat

• (2) Ducts, 14 in dia (35.56 cm)

6 $15,332.10 $91,992.60

SUBTOTAL $334,007.81

DISCOUNT $0.00

TAX $0.00

TOTAL $334,007.81

Price Tier Artwork NO Liftgate NO Receiving Hours M-F 8-5

Receiving Point of Contact Micah Goettl Expiration Date 6/14/2023 Sales Rep Mark Punzel 541-357-5978

Please contact the Sales Rep above if you have any questions. Free pickup in Eugene, OR.

Terms & Conditions

1. QUOTATION: is Valid for 30 days, any modifications may result in re-quotation.

2. PRODUCTION: Position in the production schedule is not reserved until acceptance of a valid Purchase Order.

3. TAXES: Deployed Logix (DLX) is registered in the State of Oregon and has no sales tax. DLX may be responsible to collect any State/Local Sales and/or Service Tax generated by this transaction. Any taxes assessed will be included on the invoice created by DLX as an additional cost and are not reflected in the quote above. Determination of applicable taxes cannot accurately be estimated until the transaction is processed as tax rates may change after this quotation has been issued. 6. PURCHASE ORDERS: valid PO's must be submitted for processing, verbal Purchase Orders will not be accepted.

STATEMENT OF SOLE SOURCE

Date: April 19th, 2023

STATEMENT OF SOLE SOURCE

DLX ENTERPRISES, LLC “dba” DEPLOYED LOGIX 1075 Arrowsmith Street

EUGENE, OR 97402

To: Whom it may concern

From: JJ Urhausen, President of Deployed Logix®

This letter is to confirm that DLX Enterprises, LLC “dba” Deployed Logix® is the EXCLUSIVE owner, manufacturer, designer, and sole-source provider of products protected by intellectual property, patent protection, registered trademarks, trade secrets and copyright materials from the Deployed Logix product line.

EXCLUSIVE RIGHTS:

Deployed Logix is the owner of patents, registered trademarks, and copyright material of the ASAP® and X-Series® shelter lines and other specific products unique to the Deployed Logix product line that are exclusively offered by Deployed Logix. Said products possess functions and capabilities that are critical to mission requirements. See list below of patents, patent pending, trademarks, and copyright material and products.

EXCLUSIVE DESIGN:

The Deployed Logix product line utilizes unique designs, product molds, intellectual property and trade secret technology that are exclusive to Deployed Logix. Said designs are unique to Deployed Logix and offer a unique functionality and capability for mission requirements and success.

• ASAP® Rapid Shelter: The patented ASAP® shelter line is the only rapidly deployable shelter of its size and speed in the market place that only takes two

(2) people to setup in less than 5-minutes (US Patent # 10309093). The ASAP® brand is a registered trademark and all manuals and training videos are protected by copyright.

• ATLAS® Anchor: The patented ATLAS® Anchor is a non-impact anchoring device that can be used with water, sand, gravel, etc. and is compatible with any shelter in the industry (US Patent # 9644391). The ATLAS® Anchor is owned, designed and exclusive from Deployed Logix. The ATLAS® brand is a registered trademark.

• DLX Hard Cases: The hard cases for the Deployed Logix product line are patent protected (US Patent # 7537119). The hard cases used for the ASAP® and X- Series® shelter lines are unique to only Deployed Logix.

• X-Series® Shelter: The X-Series shelter line is in the process for patent pending.

ATTACHMENT 3

DLX ENTERPRISES, LLC STATEMENT OF SOLE SOURCE

ENHANCEMENT OF EXISTING EQUIPMENT:

Deployed Logix has several products that are unique to its product line enhances the functionality and capability of mission requirements.

• ASAP® Decontamination Shower: Deployed Logix offers decontamination shower products that allow users to adapt the capability and function of the ASAP® or X- Series® shelters into a decontamination shower at a moment’s notice.

Decontamination showers can be purchased at the same time of original purchase or as an optional upgrade with no special tools needed at a future date.

• ASAP® Hygiene Shower: Deployed Logix offers hygiene shower products that allow users to adapt the capability and function of the ASAP® or X-Series® shelters into a decontamination shower at a moment’s notice. Hygiene showers can be purchased at the same time of original purchase or as an optional upgrade with no special tools needed at a future date.

• Shelter Connectors: Deployed Logix owns designs for connecting the ASAP shelters, X-Series shelters, and other competitor shelters to either shelter line. The shelter connectors, ASAP-HUB, and X-HUB allow the capacity to connect multiple shelters into a larger complex at a moment’s notice. The shelter connectors, ASAP-HUB, and X-HUB can be purchased at the same time of original purchase or as an optional upgrade with no special tools needed at a future date.

• ASAP® Rigid Door: Deployed Logix offers an accessory upgrade/enhancement product called the ASAP® Rigid Door that allows user to adapt the door entry of ASAP® Rapid Shelter and is interchangeable with the X-Series® Shelter line. The ASAP Rigid Door can be purchased at the same time of original purchase or as an optional upgrade with no special tools needed at a future date.

• Climate Control Solutions: Insulation liners, air plenums, HVAC and heaters that have been designed to integrate directly with the ASAP and X-Series shelter lines.

• Water Logix Solutions: Water filtration, distribution and containment solutions designed to compliment and integrate with the ASAP and X-Series shelter lines to support decontamination use, hygiene showers, and sinks.

• Power Logix® Solutions: Power solutions for delivery of power generation, distribution and delivery of power to the ASAP and X-Series shelter lines.

REPLACEMENT OF EQUIPMENT AND REPAIR PARTS:

When needed upon request Deployed Logix offers replacement parts and equipment that may or may not be under warranty. Regardless of warranty coverage many key replacement parts are exclusive to Deployed Logix and protected by patent, patent pending, trademarks, copyright or intellectual property.

TECHNICAL SERVICE & TRAINING:

When needed upon request or included with purchase Deployed Logix offers technical service and training for users to enhance use and mission success. Shelter deployment and base camp management is a highly technical requirement for successful missions and paramount for the longevity and life of the product.

SOLE SOURCE DISTRIBUTION:

Deployed Logix EXCLUSIVELY sells direct to end users and maintains control of direct sales to all private, local, state, federal and international customers. Deployed Logix has chosen a direct sales approach as a corporate strategy to protect quality assurance, customer service, warranty, technical service, fair prices and training. Approval for any third party sell or distribution of Deployed Logix products must be approved by Deployed Logix on a singular unique bases and must be signed and approved by the president of Deployed Logix. Please see the product list below of the Deployed Logix product line that is manufactured, owned, sold, designed, and distributed exclusively by Deployed Logix.

*See additional page for itemized list of products that are only available and sold by Deployed Logix®.

Should you require further information, please give me a call at (541)357-5978.

Sincerely, JJ Urhausen President and Owner Deployed Logix (541)337-3608 jjurhausen@deployedlogix.com mailto:jjurhausen@deployedlogix.com