Signed SSJF Part I Precisely ACR 25-26.pdf

Sole Source Justification Form

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Bulletin Reference Number B48105

Requesting Agency/University DoIT

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

Department/Bureau/Section: DoIT/Infrastructure Services

Need Identified Date: Jul 1, 2025 Supply/Service Need By Date: Jun 30, 2026

Project Title: Precisely FY23-1 year Term Maintenance ACR

Vendor: Precisely Software Incorporated

Provide a description of the supplies or services required:

Purchase of annual maintenance for ACR software maintenance & ACR Finalist Software for July 2025-June 2026 period.

Value: Not to Exceed Value of Initial Term, this Change Order or Amendment: 415,244

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 Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Jul 1, 2025

Estimated Contract End Date: Jun 30, 2026

Number of Potential Renewals: 0

Length of Each Renewal in Months: 0

Total Value of All Renewals: 0

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)

Items are Copyrighted or Patented and the Items are Only Available from the Holder

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

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Bulletin Reference Number B48105

Requesting Agency/University DoIT

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 8/1/2020 6/30/2023 659,890 3 year term license with maint CIT11961600 Sole Source

2 7/1/2017 6/30/2020 617,040 3 Year term license with maint. CIC8061550 Sole Source

3 7/1/2014 6/30/2017 533,015 3 Year term license with maint. CIC5863240 Sole Source

4 7/1/2011 6/30/2014 469,140 3 Year term license with maint. CIC2597220 Sole Source

5 10/15/2008 6/30/2011 469,140 3 Year term license with maint. CIC2597220 Sole Source

6 7/1/2007 6/30/2008 125,796 3 Year term license with maint. CIC8240100 Sole Source

7 Jul 1, 2024 Sep 28, 2024 261,316 1 Year term license with maint P81381 Emergency

8 Jul 1, 2022 Jun 30, 2025 383,091 3 Year License - ACR Finalist CIT3303900 Sole Source

9 Sole Source

10 Sole Source

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:

Both ACR Workbench & Finalist are proprietary products utilized to automatically balance mainframe (IBM z/OS) batch jobs and results.

Without the ACR products Enterprise Operations staff would need to stop processing of batch jobs and manually perform balancing and reconciliation. This software is used throughout job cycles to balance job totals. When an application is out of balance, the schedule stops, the out of balance condition is corrected, and the schedule is continued. Before installed, the schedule would continue when the application was an out of balance. This caused expensive reruns and long delays in the completion of the applications.

Precisely is the only vendor that can supply the required software because the software is patented or copyrighted and only available from holder of patent/copyright. These products have been used for many years to develop mission critical applications for several agencies. Migration of applications away from the ACR products would take substantial time and money to complete and is not viable at this time.

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

1 year term contract for maintenance on ACR Workbench Detail and ACR Finalist Summary for MVS software products:

ACR/Detail and ACR/Summary for MVS (MIPS MARS and MMIS NIPS capacity 1025) Currently, the State of Illinois holds 2 term licenses: One for ACR/Summary used by Dept. of Health and Family Services and the other for ACR/Detail used by Dept. of Human Services (DHS). CPU-based license with unlimited MIPS capacity on any single CPU.

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Bulletin Reference Number B48105

Requesting Agency/University DoIT

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?

These Precisely products are utilized to automatically balance the results of mainframe batch jobs. Without the ACR products Enterprise Operations staff would need to stop processing of mainframe jobs and manually perform the necessary balancing and reconciliation efforts. This is not only subject to error but extremely time consuming and impacts overall performance and uptime of the application. This software is used throughout mainframe job cycles to balance job totals. When an application is out of balance, the schedule stops, the out of balance condition is corrected, and the schedule is continued. Before this product was installed, the schedule would continue when the application was an out of balance. This caused expensive reruns and long delays in the completion of the application processing. This software has been customized for the state of illinois and the MMIS, MARS and MEDI environments making it 100 percent unique and the code that manages the above processes is proprietary to the vendor.

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:

ACR/Summary compares summary-level information such as record counts and totals across applications, files, databases, and reports Summary-Level Balancing: Balance record counts and totals across business applications and processes, Compares and balances data values from previous cycles and validate that correct files are being processed and there is no duplication.

ACR/Detail compares detail-level information such as field values and transactions across applications, files, databases, and reports, Validates records and field values across business applications and processes, and Compares information at multiple levels of roll-up to detect errors at the appropriate level of granularity and Compares incoming data to suspense items to complete reconciliations over multiple cycles.

As stated previously these have been customized for the SOI environment via Mainframe application development.

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

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

At this time it is not feasible to migrate and convert agencies from this product. Mainframe resources are at an all time low at the state of Illinois due to retirement and lack of qualified resources to backfill positions. The process of replacing these applications is not accomplished quickly or easily and requires significant funding and staff resources. It involves changes to business processes and methodologies; a complete redesign of the application; significant investments in software, IT hardware and infrastructure, training;

full-time commitment of staff resources to complete; and continued maintenance and support of the existing system during the conversion. Business requirements would need to be assessed in order to determine a new vendor and the impact of replacing this vendor and software..

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?

The ACR Product Suite is sole sourced and there are not many comparable options to use to rationalize the cost of the products. The 1 year term agreement being offered by the vendor has an overall 5% increase on the annual spend for Finalist and Workbench which is consistent since 2023. Considering the CPI on an average annual $360K procurement beginning in '23 you'd expect the State to spend roughly $450K due to inflation, but due to ITPO negotiations the spend remains at a 5% increase and well under $450K for both software licensing as well as maintenance costs.

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Bulletin Reference Number B48105

Requesting Agency/University DoIT

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

Yes No

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

Until the current business applications that are dependent on the Precisely Software Inc. products for critical business functions are no longer required, DoIT and the other user agencies must continue subscription, maintenance and support. DoIT continues to utilize Application Rationalization for all applications and systems under the Executive Branch to quantify the usage of various applications along with vendor product dependencies. These efforts will continue to allow the State of Illinois to make better decisions about future procurement initiatives that should be more competitive in nature.

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?

Enterprise Operations relies heavily on both ACR software products to automate batch job balance processes. If this procurement is denied, production batch processes will be adversely affected for the MMIS and other applications. MMIS is the medicaid management system which processes claims, payments, as well as provides validation, confirmation of provider and recipient information, pharmacy and NIPS claims processing as well as interfacing with the the MARS system. (medical and reporting system) If ACR is not renewed the economic impact would be long term downtimes of the MMIS system and delays in processing and providing medical services and payments to the SOI citizens resulting in potentially several million dollars of lost revenue.

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

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Bulletin Reference Number B48105

Requesting Agency/University DoIT

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 May 27, 2025

Printed Name Michael Cummings E-mail Address Micnael.Cummings2@illinois.gov

Phone Number 312-814-1822

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 charles.levy@illinois.gov

Phone Number 217-685-2791 Date Jun 2, 2025

Printed Name Charles Levy

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 217-685-9312 Date Jun 3, 2025

Printed Name Joshua Sergent E-mail Address joshua.sergent@illinois.gov

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Bulletin Reference Number B48105

Requesting Agency/University DoIT

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

Project Title ACR Workbench Annual Software Maintenance

Vendor Precisely Software

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

Precisely is the only vendor that can supply the required software because the software is patented or copyrighted and only available from holder of patent/copyright. These products have been used for many years to develop mission critical applications for several agencies. Migration of applications away from the ACR products would take substantial time and money to complete and is not viable at this time.

Q2Answer: 1 year term contract for maintenance on ACR Workbench Detail and ACR Finalist Summary for MVS software products:

ACR/Detail and ACR/Summary for MVS (MIPS MARS and MMIS NIPS capacity 1025) Currently, the State of Illinois holds 2 term licenses: One for ACR/Summary used by Dept. of Health and Family Services and the other for ACR/Detail used by Dept. of Human Services (DHS). CPU-based license with unlimited MIPS capacity on any single CPU.

ACR/Summary compares summary-level information such as record counts and totals across applications, files, databases, and reports Summary-Level Balancing: Balance record counts and totals across business applications and processes, Compares and balances data values from previous cycles and validate that correct files are being processed and there is no duplication.

ACR/Detail compares detail-level information such as field values and transactions across applications, files, databases, and reports, Validates records and field values across business applications and processes, and Compares information at multiple levels of roll-up to detect errors at the appropriate level of granularity and Compares incoming data to suspense items to complete reconciliations over multiple cycles.

As stated previously these have been customized for the SOI environment via Mainframe application development.