Signed SSJF Part 1 - IBM.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 5

Bulletin Reference Number 25-360IOC-IOC36-B-43848

Requesting Agency/University IL Office of the Comptroller

Sole Source Justification Form - Part I Section I - General Information

Department/Bureau/Section: IT

Need Identified Date: Jun 17, 2024 Supply/Service Need By Date: Jul 1, 2024

Project Title: IOC - Sole Source - IBM Hardware

Vendor: IBM

Provide a description of the supplies or services required:

HWSE Storage - DS8884, Single Phase DC-UPS, Mgmt console - Primary, Mgmt console - Secondary, I/O enclosure pair PCle 3, 400 GB 2.5 inch flash card set, 16 GB 4 port LW FCP/FICON adapter PCIE, 64 GB processor Memory, 6-core processor indicator, BF 10TB increments from 0 to 100 TB, CS 10TB increments from 0 to 100 TB, zsS-Active, zsS 10TB increments from 0 to 100 TB and IBM Media Retention Storage

Value: Actual Value of Initial Term, this Change Order or Amendment: 108,144

Will this Sole Source amend a Professional or Artistic Services contract? Yes No

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Type: New Sole Economically Feasible Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Jul 1, 2024

Estimated Contract End Date: Jun 30, 2025

Number of Potential Renewals: 0

Length of Each Renewal in Months:

Total Value of All Renewals:

If a Term Contract, does the term, including renewals, exceed 12 months? Yes No

Section III - Funding Source Select the type of funding to be used (Check all that apply): State Appropriate Funds Federal Funds Other (Explain):

Section IV - Sole Source Justification

This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)

Compatibility of Equipment, Accessories, Replacement Parts or Service

Are there secondary justification(s) for this sole source? Yes No

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Bulletin Reference Number 25-360IOC-IOC36-B-43848

Requesting Agency/University IL Office of the Comptroller

Section V - Purchase History

Has the Agency or University Purchased these supplies or services in the past? Yes No

Term Term From Term To Value Description Contract Number Type

1 Jul 1, 2023 Jun 30, 2024 167,349.59 Piggyback Agency Specific Contract 23-360IOC-IOC36-P-5 RFP

2 Jul 1, 2022 Jun 30, 2023 191,612.09 Piggyback Agency Specific Contract 23-360IOC-IOC36-P38 RFP

If more than 10, or if other comments, explain:

Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

The hardware is needed for the IOC's mainframe. The IOC has a new IBM server and IBM's hardware is compatible with our present system structure. Utilizing hardware that is compatible with the server will allow the server to perform effectively and efficiently while it processes the millions of transactions that it must complete annually.

2. Provide a list and describe in detail the specifications required to satisfy the need:

HWSE Storage - DS8884, Single Phase DC-UPS, Mgmt console - Primary, Mgmt console - Secondary, I/O enclosure pair PCle 3, 400 GB 2.5 inch flash card set, 16 GB 4 port LW FCP/FICON adapter PCIE, 64 GB processor Memory, 6-core processor indicator, BF 10TB increments from 0 to 100 TB, CS 10TB increments from 0 to 100 TB, zsS-Active, zsS 10TB increments from 0 to 100 TB and IBM Media Retention Storage

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

IBM products utilize proprietary components. The IBM mainframe that the IOC utilizes must be able to process transactions timely and efficiently in support of State responsibilities and duties. The IOC must have access to these proprietary products as they ensure systems remain operating without any disruptions. Maintaining compatibility between the server and new and/or updated hardware requirements increases efficiency and decreases the likelihood of major disruptions with minimal downtime in State services.

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

This hardware supports the IOC's mainframe. To ensure IOC's ability to maintain software support/maintenance, the system structure (mainframe and associated hardware) must utilize hardware that is most compatible with our server and allows the server to perform at a consistently high standard. IBM's servers utilize a proprietary processing system and utilizing hardware components that are most compatible decreases the likelihood of major disruptions with minimal downtime in State services.

5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No

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Bulletin Reference Number 25-360IOC-IOC36-B-43848

Requesting Agency/University IL Office of the Comptroller

5a. If no, why weren't alternatives evaluated?

IBM is the maker of the server that the IOC recently purchased. Thus, the agency has determined it is best to use similarly produced items that are compatible and necessary to allow the server to run efficiently and effectively with minimal errors and disruptions.

6. Are there resellers or distributors?

Yes No N/A

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

A determination that the pricing was fair and reasonable was based on the actual usage of this server, the number of transactions that this server must process as well as the cost savings associated with minimizing or mitigating a potential disruption in service. Also, the price is consistent with other hardware that the IOC has purchased including anticipated cost increases.

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

Yes No

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

There would be a lack of support for the new mainframe which would increase chance of major disruption which could cause serious disruption in the collection of substantial State Revenues. Moreover, the process of completing a competitive bid for alternate hardware cannot be accomplished quickly or easily and requires significant time and staff resources. Converting to an alternative suite of mainframe accessories is not considered to be a good expenditure of taxpayer dollars at this time. Until the State determines this IBM hardware is no longer effective or necessary, IOC must continue to procure the necessary hardware to ensure the IBM server functions effectively and efficiently.

10. Is there any additional information you would like to add to justify this sole source?

No

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Bulletin Reference Number 25-360IOC-IOC36-B-43848

Requesting Agency/University IL Office of the Comptroller

Section VII

Requesting Department Representative

Requesting Department Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

Date Jul 9, 2024

Printed Name Andy Peterson E-mail Address andy.peterson@illinoiscomptroller.gov

Phone Number (217) 782-2349

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed)

E-mail Address josh.downen@illinoiscomptroller.gov

Phone Number (217) 557-0934 Date Jul 9, 2024

Printed Name Josh Downen

Agency Bureau/Division Head or University Purchasing Director and Not a Designee

SPO Approval and Signature Required

I have reviewed and understand the contents of this Sole Source Justification and agree with the State Agency or University determination.

I have reviewed and understand the contents of this Sole Source Justification and do not agree with the State Agency or University determination. As a result, the State Agency or University must explore other sourcing methods to satisfy their need.

State Purchasing Officer Signature Phone Number (217) 524-5976 Date Jul 10, 2024

Printed Name Ignacio Cuevas E-mail Address Ignacio.Cuevas@Illinoiscomptroller.gov

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Bulletin Reference Number 25-360IOC-IOC36-B-43848

Requesting Agency/University IL Office of the Comptroller

Sole Source Justification Form - Part II Section I - General Information

Project Title

Vendor

Initial Date of Procurement Bulletin Posting

Was a Sole Source hearing held per 30 ILCS 500/20-25?

Yes - Complete Section II and III below (Section II will only be visible when this option is selected)

No - Section II not required, go to Section III below Section III - CPO Approval and Signature Required

Based on my review, I authorize the Agency/University to proceed in accordance with the published Notice referenced above.

Based upon my review, I authorize the Agency/University to proceed with the following Changes.

Based on my review, the Agency/University is not authorized to proceed with this sole source as presented and my recommendation is that it be cancelled.

Other

CPO Signature CPO Phone

Printed Name Date

CPO E-mail

Version 7.01 Page of Sole Source Justification Form - Part I Section I - General Information Will this Sole Source amend a Professional or Artistic Services contract?

If yes, what was the original contract value?

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Section II - Proposed Term If a Term Contract, does the term, including renewals, exceed 12 months?

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

Section III - Funding Source Select the type of funding to be used (Check all that apply):

Section IV - Sole Source Justification Are there secondary justification(s) for this sole source?

Section V - Purchase History Has the Agency or University Purchased these supplies or services in the past?

Term Term From Term To Value Description Contract Number Type Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

2. Provide a list and describe in detail the specifications required to satisfy the need:

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

5. Has the Agency or University considered alternative supplies or services to satisfy their need?

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

5a. If no, why weren't alternatives evaluated?

6. Are there resellers or distributors?

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

8a. If yes, please provide details regarding future obligations and/or needs:

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

10. Is there any additional information you would like to add to justify this sole source?

Section VII Requesting Department Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed) SPO Approval and Signature Required Sole Source Justification Form - Part II Section I - General Information Was a Sole Source hearing held per 30 ILCS 500/20-25?

Section II - Sole Source Hearing Details The State posted to the Illinois Procurement Bulletin a description of the State's need, the justification for the sole source decision, and information regarding the opportunity to submit comments and testify at a public hearing. Notice of the hearing was also posted outside of the hearing room 48 hours prior to the hearing.

The public hearing was conducted for the purpose of receiving testimony regarding the sole source determination. The Hearing Officer recommends the following:

The following relevant documents are attached:

Section III - CPO Approval and Signature Required 9.0.0.2.20101008.1.734229