S2S emergency-purchase-extension approval-6 signed.pdf

EMERGENCY PURCHASE EXTENSION APPROVAL

State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Approval v.24.2 Page 1 of 4

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 33306State: FLCity: Fort LauderdaleAddress: 3101 N Federal Highway Suite 400

Vendor: BiotrackTHC dba Bio-Tech Medical Software

Zip: 60661State: ILCity: ChicagoAddress: 555 W Monroe Street - 5th Floor

Requesting Agency FPR - Financial and Professional Regulation Division: Cannabis Regulation Oversight Office

Extension Justification BidBuy Reference #: R-189605/B-43230

Amount of original contract: $ 600,000

Actual or Estimated: Estimated

Original BidBuy Reference #: R-213557/B-43230

Original Emergency Term Start Date: Oct 29, 2021 Original Emergency Term End Date: June 30, 2024

Expected Extension Start Date: July 1, 2024 Expected Extension End Date: June 30, 2025

Amount of extension contract: $480,000 Actual or Estimated: Estimated

Is there BEP participation on this contract? If yes, please detail

A 7% BEP goal was approved and established by the state's Commission on Equity and Inclusion (CEI) for this emergency purchase and extensions on July 29, 2022. The NIGP commodity code used to calculate the formula was 91870 Inventory Consulting. After failing to get subcontracting agreements in place with several BEP certified vendors, the prime vendor was able to get subcontracting agreements in place with two BEP certified vendors late January 2023. They are CW Financial & Management Group LLC and Nerevu Group, LLC. Each BEP subcontractor is anticipated to receive 3.5% of the work on this emergency purchase and extension, which will meet the 7% goal established by CEI.

Has this emergency contract been extended before? Please detail in the space below:

BidBuy Reference # Amount Start Date End Date

B-24988 and B-30884 $250,000.00 Oct 29, 2021 Aug 31, 2022

B-31316 and B-34390 $150,000.00 Sep 1, 2022 Oct 31, 2023

B-39490 and B-43230 $800,000.00 Oct 31, 2023 June 30, 2025

1. Provide detail about the events that led the agency to conduct an emergency procurement:

Previously, the Seed to Sale Tracking System contract was managed and administered by the Illinois Department of Agriculture (IDOA).

During the third-to-last renewal cycle for the original contract (August 2020 to July 2021), the products and services were amended to include the addition of the new legislatively required Adult Use Cannabis mandates under the Cannabis Regulation and Tax Act (CRTA).

Due to the size of the changes, it was determined the final renewal year would not be permissible and that the State needed to execute a competitive procurement process to get a new long-term agreement in place. During August 2020 -July 2021, the Cannabis Regulation Oversight Office (CROO) under the Illinois Department of Financial and Professional Regulation (IDFPR) was getting

Emergency Purchase Extension Approval v.24.2 Page 2 of 4

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 33306State: FLCity: Fort LauderdaleAddress: 3101 N Federal Highway Suite 400

Vendor: BiotrackTHC dba Bio-Tech Medical Software

Zip: 60661State: ILCity: ChicagoAddress: 555 W Monroe Street - 5th Floor

Requesting Agency FPR - Financial and Professional Regulation Division: Cannabis Regulation Oversight Office established to lead the state's multi-agency cannabis program functions and collaborations. One of their collaboration efforts was to identify and own multi-agency cannabis program procurements, with one of them being the Seed to Sale Tracking system. Several conversations were held between IDOA cannabis program staff, CROO staff, and IDFPR cannabis program staff to determine the most appropriate agency to own the Seed to Sale contract. A verbal understanding between these staff members identified the benefit of transferring the ownership of this contract from IDOA to IDFPR CROO. Executive leadership of each agency were briefed on these conversations but no formal approval or transfer of ownership determinations were made. During the Summer of 2021, with contract ownership still undetermined and no competitive procurement process started by either agency, a decision needed to be made. With the guidance of the Governor's Office legal team, it was determined that IDFPR CROO would take over ownership of the Seed to Sale procurements once the current agreement expired with IDFPR's Agency Purchasing Officer taking lead on the procurements. With limited time remaining on the legacy agreement, IDFPR's APO collaborated with their SPO to determine the best course of procurement action to 1. Maintain continuity of services and 2. Competitively procure a long-term agreement. It was determined that an emergency purchase was the best option to satisfy item #1. After IDFPR's APO conducted outreach to the state's cannabis program agencies, a request for proposal (RFP) was determined the best option to satisfy item #2. Once the initial emergency purchase was approved and established on August 1, 2021, IDFPR's APO began the requirements gathering and drafting of the RFP. Please refer to the attachment titled, "Project Timeline 6 Emergency S2S System and Resources update.docx" for more information on the background and timeline of events after August 1, 2021.

2. What is the scope of work of the initial emergency contract? Please detail below:

Vendor shall provide licensing, maintenance, support, and hosting of the state's Seed to Sale (S2S) Inventory Tracking System. The S2S system is a cloud-based vendor-hosted centralized system solution that tracks the state's regulated cannabis product lifecycles from 'seed' at a licensed cultivator to 'sale' at a licensed dispensary and everything in between. The S2S system also tracks the inventory purchases/transactions. If Medical cannabis inventory, patient and/or caregiver status validation must be provided along with the permitted amount of cannabis available for purchase. Cannabis transportation information and shipping manifests will also be tracked and accepted. Inventory registrations, data reporting, audit trail, and training to system users will be provided as well. Services also include statutorily required developments within the System of Transporter Registration Certificates, Community College Requirements, State Holds- the ability for the state to place a digital hold on product lots or lineages (added consumer safety), Inventory adjustment -restrictions for cannabis business operators so that they cannot adjust lots once they have been tested, All cannabis business entities should be able to manifest product, and End Stage testing. Each development item listed is anticipated to be smaller scale, one-time deliverables, and will not result in any material changes to the contractual supplies and services. Per section 1.3.4. of this emergency purchase, "Vendor shall document and detail any modifications to the S2S system in a Statement of Work (SOW) document.

Modifications will be based on Legislative, Judicial and/or Administrative changes, requests initiated by Lead agency, in conjunction with the SPO approval. SOW will be mutually agreed upon by all Parties prior to implementing. The executed SOW will be added to this contract as an attachment to ensure all documents impacting supplies and/or services required, milestones and deliverables, and/or Vendor/Staff specifications are due to Legislative changes.

3. Does this extension change the scope of work? Yes No If yes, please detail below:

N/A. The only changes that will be documented on the extension amendment will be the new end date and contract cost increase.

Emergency Purchase Extension Approval v.24.2 Page 3 of 4

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 33306State: FLCity: Fort LauderdaleAddress: 3101 N Federal Highway Suite 400

Vendor: BiotrackTHC dba Bio-Tech Medical Software

Zip: 60661State: ILCity: ChicagoAddress: 555 W Monroe Street - 5th Floor

Requesting Agency FPR - Financial and Professional Regulation Division: Cannabis Regulation Oversight Office

4. Provide justification for extending the original emergency contract:

The emergency purchase and extensions maintain continuity of current services and prevent or minimize serious disruption in critical State services that affect health, safety, or collection of substantial State revenues.

5. Does this emergency contract correct or eliminate the emergency condition?

Yes No Please detail:

The emergency contract, approved extensions, and requested extension are to maintain continuity of vital products and services for the State's cannabis program agencies and licensees. To correct or eliminate the emergency condition, a competitive procurement process needs to be fully executed along with a new long-term contract in place with a fully operational solution live for the cannabis agency programs and licensees to utilize. For more details on the competitive procurement process, please refer to our responses to questions #6 and #7 below.

6. Explain why the need cannot be met through a competitive procurement process.

The need can be met through a competitive procurement process, however, that process has yet to be fully executed. Please refer to our response to questions #7 below for more details. Allowing the incumbent vendor to maintain a continuity of statutorily required products and services for the state's cannabis program agencies and their respective licensees and constituents is the most valuable procurement method we can execute at this time. The emergency purchase and extensions will prevent or minimize serious disruption in critical State services that affect health, safety, or collection of substantial State revenues. In calendar year 2022, the state's cannabis industry generated $1.5 billion in retail sales revenue.

7. Is a competitive procurement in process to replace this emergency contract?

Yes No Status: awarded but contract not executed

As of May 23, 2024, procurement is still in process.

8. What is the effect of a denial of this extension request?

If this procurement is not approved, the entirety of the state's regulated cannabis industry would halt. Not only would this have a critically negative impact on the various agencies' regulatory oversights and the licensees' business operations but a massive negative impact on the state's revenue generation. Not having the S2S system in place during this anticipated growth period would be completely detrimental to the regulatory oversight business operations of this industry. With the current emergency and extension contract set to expire at the end of June 2024 no other procurement method is feasible to appropriately execute without having a complete breakdown in regulatory and operational services. During calendar year 2022, total regulated retail cannabis sales have surpassed $1.5 billion. With the state preparing to issue more grower and dispensary licenses (more than double the current licensing population), this revenue generation is anticipated to grow in the coming years. Not having the S2S system in place during this anticipated growth period would be completely detrimental to the regulatory oversight and business operations of the industry. It would be absolute chaos, to say the least.

Emergency Purchase Extension Approval v.24.2 Page 4 of 4

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Zip: 33306State: FLCity: Fort LauderdaleAddress: 3101 N Federal Highway Suite 400

Vendor: BiotrackTHC dba Bio-Tech Medical Software

Zip: 60661State: ILCity: ChicagoAddress: 555 W Monroe Street - 5th Floor

Requesting Agency FPR - Financial and Professional Regulation Division: Cannabis Regulation Oversight Office

BidBuy Reference #: R-189605/B-43230

Signatures below cannot be delegated.

APO Signature

I am requesting an extension of the requested emergency contract. I believe all statements herein are true and correct to the best of my knowledge.

APO Signature: Date: May 24, 2024

SPO Signature

SPO Signature: Date: May 29, 2024

CPO Signature Based on my review, I approve the Agency to proceed in accordance with the emergency contract extension detailed in this document.

Based upon my review, I approve the Agency to proceed with the following changes:

CPO Signature: Date:

Page of

Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Approval v. 24.2

EMERGENCY PURCHASE EXTENSION APPROVAL

State of Illinois Chief Procurement Office for General Services Emergency Purchase Extension Approval v.24.2 Page of Section 20-30(a) of the Procurement Code provides that a contract for an emergency may be extended beyond 90 calendar days with the approval of the chief procurement officer (CPO). Prior to execution of the extension, the CPO shall receive this completed form justifying the extension. The duration of the extension shall be limited to the scope of the emergency.

Extension Justification Actual or Estimated:

Has this emergency contract been extended before? Please detail in the space below:

BidBuy Reference # Amount Start Date End Date

1. Provide detail about the events that led the agency to conduct an emergency procurement:

2. What is the scope of work of the initial emergency contract? Please detail below:

3. Does this extension change the scope of work?

If yes, please detail below:

4. Provide justification for extending the original emergency contract:

5. Does this emergency contract correct or eliminate the emergency condition?

Please detail:

6. Explain why the need cannot be met through a competitive procurement process.

7. Is a competitive procurement in process to replace this emergency contract?

8. What is the effect of a denial of this extension request?

Signatures below cannot be delegated.

APO Signature I am requesting an extension of the requested emergency contract. I believe all statements herein are true and correct to the best of my knowledge.

SPO Signature CPO Signature 11.0.0.20130303.1.892433.887364