S-10700-00001256_ADR Services_Approved.pdf

SP #S-10700-00001256 – ADR Services PAs Page 1 of 5

REQUEST FOR SPECIAL PROCUREMENT No. S-10700-00001256

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

1. Requesting Agency Name: Department of Administrative Services, Procurement Services

2. Date of Request: 11/15/2021 3. Agency Number: 107000

4. Agency Contact Name: Jennifer Jolley 5. Phone: 971-900-7695

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

7. Time Period Requested: From: 12/31/2021 To: 12/31/2022

8. Total Estimated Cost: $800,000

9. Title: Supplies and/or Services to be Acquired:

Alternative Dispute Resolution (“ADR”) Services

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

a. Request:

Department of Administrative Services, Procurement Services (“DAS PS”) requests approval of this Special Procurement (“SP”) to extend the Term of the following Price Agreements (“PAs”) for one (1) additional year at an estimated cost of $800,000.00 for continued ADR Services.

PA Number Contractor Name PA Number Contractor Name

6226 DS Consulting 6238 Cogan Owens

6227 In-Accord, Inc. 6239 JLA Public Involvement, Inc.

6228 Institute of Conflict Management 6240 Barney & Worth

6230 Kearns and West 6241 Leadership for Action

6231 Dispute Solutions, LLC 6242 Artemis Consulting

6232 Theresa Jensen and Associates, Inc.

6243 Michael Schnee Consulting, LLC

6233 Tim Hicks 6244 Enviroissues

6234 Triangle Associates 6245 PRR, Inc.

6235 Amato Mediation 6246 Laura Sophia Keir

6236 Blue Sky Morning 7611 Jim Owens

6237 Plank Road Solutions, LLC 7612 Steve Faust

SP #S-10700-00001256 – ADR Services PAs Page 2 of 5

b. Background:

Pursuant to Oregon Revised Statute (“ORS”) 183.502(5) the Department of Justice, the Mark O. Hatfield School of Government and DAS PS (the “Cooperating Parties”) are mandated to work together to increase the use of alternative dispute resolution to resolve disputes involving the State of Oregon by establishing efficient and effective mechanisms for the selection and procurement of mediators and facilitators.

In 2011, the Cooperating Parties issued Request for Proposal (“RFP”) #102-1803-11, soliciting for ADR Services. This RFP resulted in multiple award of PAs in five (5) different ADR service categories, which expired December 2016.

In September 2016, DAS PS issued RFP #DASPS-2599-16 soliciting for ADR Services in four (4) different service categories. This RFP resulted in multiple award of 22 PAs, which will expire December 30, 2021.

c. Current Need:

The Cooperating Parties have an ongoing obligation under ORS 183.502(5)(c) to provide assistance to state agencies in the efficient and effective selection of ADR Services. In the last two years, the Cooperating Parties discussed and agreed to transfer all procurement and contract administration activities pertaining to ADR Services to the Mark O. Hatfield School of Government (“Hatfield School of Government”). Issuance of Hatfield School of Government’s RFP soliciting for the next set of PAs has been delayed and, as a direct result, DAS PS must now extend the current ADR PAs in order to avoid a lapse in services.

In developing RFP #DASPS-2599-16, the estimated spend over a five-year period was calculated at approximately $1.7 million dollars, spread across (13) different ADR Service PAs.

In the last five-year period (2016 –2021) the spend was approximately $2.6 million dollars spread across (22) different ADR Service PAs.

For 2021, the spend to date is $756,158 across the (22) PAs. There are also additional Service Order Contracts in the process of being finalized, so the 2021 spend-to-date could be higher by end of the year.

d. Proposed Contracting Procedure:

As required by Oregon Administrative Rule (“OAR”) 125-247-0287, DAS PS will issue a public notice of the SP on the OregonBuys eProcurement system for a period of seven (7) calendar days.

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

DAS PS will respond to and resolve all protest(s) of the SP, if any.

If no protests are received or sustained, DAS PS will proceed with amending the PAs listed above in Section 10.a.

Pursuant to OAR 137-045-0015, DAS PS will work with DOJ and obtain legal sufficiency approval prior to executing the PA amendments, as required.

SP #S-10700-00001256 – ADR Services PAs Page 3 of 5

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

Pursuant to ORS 183.502(5), the Cooperating Parties have an ongoing statutory obligation to provide assistance to agencies in the efficient and effective selection of ADR mediators or facilitators.

The approval of the SP will enable continuation of the existing ADR services under contract until the new RFP process is conducted and contracts (PAs) are awarded by Hatfield School of Government.

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:

The PAs were competitively solicited in compliance with Oregon Revised Statutes and Oregon Administrative Rules governing public procurement.

RFP #DASPS-2599-16 was publicly noticed through the Oregon Procurement Information Network (“ORPIN”); the state’s eProcurement system of record at that time, which held a roster of 50,000+ Suppliers. The RFP provided, in part:

o “It is anticipated that this RFP will result in the award of multiple Price Agreements…each with a term of five (5) years.”

o “In reviewing certain historical data from similar contracts, state agencies have spent approximately $1.7 million dollars on thirteen different ADR service contracts over the last five years.”

This SP seeks to extend the term of the PAs one additional year for a cumulative total of 6-years.

Given the robust information provided in RFP #DASPS-2599-16, including the two bulleted items directly above, the market would have had enough incentive to respond to the original opportunity.

All providers of ADR Services, including the contractors currently holding PA awards (see Section 10.a above), will have the opportunity to compete for a new award under Hatfield School of Government’s RFP.

and

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

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:

As provided in ORS 183.502(6)(a):

“The Mark O. Hatfield School of Government, the Oregon Department of Administrative Services and the Department of Justice shall work cooperatively in designing the program under ORS 36.179 (Mediation and

SP #S-10700-00001256 – ADR Services PAs Page 4 of 5 other alternative dispute resolution services for public bodies) that is intended to provide services to, apply to or involve any state agency.”

The program designed by the Cooperating Parties includes the (22) Price Agreements, which are the subject of this SP request. Allowing the PAs to lapse without having alternative ADR Services contracting vehicles in place would put the Cooperating Parties in a position of noncompliance with statute.

As provided in ORS 183.502(8):

“The purpose of the agency alternative dispute resolution programs is to:

(a) Increase agency efficiency;

(b) Increase public and agency satisfaction with the process and results of dispute resolution; and

(c) Decrease the cost of resolving disputes.”

Allowing the PAs to lapse without out having alternative ADR Services contracting vehicles in place will not support the three specific purposes of ORS 183.502(8):

An intermediate procurement process take 3 – 6 months on average to complete and a formal procurement process takes 6 – 12 months or longer to complete. Each agency seeking ADR Services would have to conduct one or more solicitation processes, which is not efficient. Additionally, the costs attendant to the conduct of an intermediate or formal procurement would increase the overall cost of resolving a dispute, which is contrary to ORS 183.502(8)(c).

The Rates included in each of the (22) PAs were negotiated in order to make the best possible rates available to agencies. If the PAs lapse and agencies are required to procure their own ADR Services, it could result in higher rates, which is contrary to ORS 183.502(8)(c).

The additional 3 – 12+ months it will take each agency to conduct one or more procurement process for ADR Services will not foster an “Increase [in] public and agency satisfaction with the process and results of dispute resolution” as required in ORS 183.502(8)(b).

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: Date:

SP #S-10700-00001256 – ADR Services PAs Page 5 of 5

PART B. The Department of Administrative Services completes 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 ORPIN. 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. 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:

Kelly Mix, State Chief Procurement Officer Date Department of Administrative Services