Sole Source Justification Form SSJF Part I.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 5

Bulletin Reference Number 22-448DOIT-TELEC-B-25116

Requesting Agency/University DoIT

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

Department/Bureau/Section: Telecom

Need Identified Date: 09/01/2021 Supply/Service Need By Date: 02/01/2022

Project Title: Nextalk/Textnet Sole Source Contract

Vendor: HITEC Group International, Inc dba HITEC

Provide a description of the supplies or services required:

Hitec provides Nextalk/Textnet Services for the State of Illinois to provide equally effective communication to individuals with disabilities, including hearing and speech impairments. The current system provides the State with TTY services via a LAN based network terminating on the users PC. An 800 # provided by Hitec is required to place an outside TTY call into the Hitec server in Chicago (Burr Ridge), which then is routed to the called agency. Forty eight 800#'s were initially provided as part of the original installation. As this sytem continues to grow, more users have been added. We currently have a total of 280 800#'s assigned and 635 users for agencies such as DHS, DES, Secretary of State, Aging, Revenue and others. DoIT will procure these services and they will be available for use by other agencies.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 110,000

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: 02/01/2022

Estimated Contract End Date: 1/31/2023

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)

Compatibility of Equipment, Accessories, Replacement Parts or Service

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

Version 7.01 Page 2 of 5

Bulletin Reference Number 22-448DOIT-TELEC-B-25116

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 1/1/2008 Dec 31, 2008 110,000 Nextalk/Hitec services for the disabled CMC720930A Renewal

2 Jan 1, 2009 Dec 31, 2009 109,550 Nextalk/Hitec services for the disabled CIC9378690 Sole Source

3 Jan 1, 2010 Dec 31, 2010 110,750 Nextalk/Hitec services for the disabled CIC937869A Renewal

4 Jan 1, 2011 Dec 31, 2011 110,750 Nextalk/Hitec services for the disabled CIC1568950 Sole Source

5 Jan 1, 2012 Dec 31, 2012 110,750 Nextalk/Hitec services for the disabled CIC2658740 Sole Source

6 Jan 1, 2013 Dec 31, 2013 110,750 Nextalk/Hitec services for the disabled CIC3745680 Sole Source

7 Jan 1, 2014 Dec 31, 2014 110,750 Nextalk/Hitec services for the disabled CIC4829090 Sole Source

8 Jan 1, 2015 Dec 31, 2015 110,750 Nextalk/Hitec services for the disabled CIC5895070 Sole Source

9 Jan 1, 2016 Dec 31, 2016 110,750 Nextalk/Hitec services for the disabled CIC6958420 Sole Source

10 Jan 1, 2017 Dec 31, 2017 110,750 Nextalk/Hitec services for the disabled CIC7996690 Sole Source

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

1/1/18 to 12/31/18 - $110,000 - Nextalk/Hitec services for the disabled - CIC8085510 - Sole Source.

1/1/19 to 12/31/19- $110,000 - Nextalk/Hitec services for the disabled - CIT9608800 - Sole Source.

1/1/20 to 12/31/21- $110,000 - Nextalk/Hitec services for the disabled - CIT1019577 - Sole Source.

Hitec is the only authorized distributor of Nextalk in Illinois and Wisconsin.

Section VI - Business Rationale

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

Hitec provides Nextalk/Textnet Services for the State of Illinois to provide equally effective communication to individuals with disabilities, including hearing and speech impairments. The current system provides the State with TTY services via a LAN based network terminating on the users PC. An 800 # provided by Hitec is required to place an outside TTY call into the Hitec server in Chicago (Burr Ridge), which then is routed to the called agency. Forty eight 800#'s were initially provided as part of the original installation. As this sytem continues to grow, more users have been added. We currently have a total of 280 800#'s assigned and 635 users for agencies such as DHS, DES, Secretary of State, Aging, Revenue and others. DoIT will procure these services and they will be available for use by other agencies.

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

Hitec provides Nextalk/Textnet Services for the State of Illinois to provide equally effective communication to individuals with disabilities, including hearing and speech impairments.

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?

Hitec is the only authorized distributor of Nextalk in Illinois and Wisconsin.

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:

Hitec specifically provides TTY serice required by the State of Illinois

Version 7.01 Page 3 of 5

Bulletin Reference Number 22-448DOIT-TELEC-B-25116

Requesting Agency/University DoIT

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?

Hitec is the only authorized distributor of Nextalk in Illinois and Wisconsin.

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?

Hitech agreed last year to lower the price for software maintenance by 5% to $36,812.50 last year. They cannot lower it again this year, but they agreed to keep pricing the same as 2020.

Pricing has remained the same for software maintenance for the past 4 years at $38,750.00 per year. (This is split between the 2 fiscal years $19,375.00 per FY). The monthly charge is $4800.00 per month for the port licenses which includes 48 800#'s. Each additional 800# is $5.00 per month. Currently there are 280. The total monthly fee is $6,000.00 per month. This could increase if the State requires additional 800#'s. The reason for the cost increase has been the additional 800#'s that have been required by the State for additional users.

Software Maintenance = $36,812.50 per year Port Licenses = $4,800.00 per month = $57,600 per year 800#’s = 232 x $5.00 = $1,160 per month = $13,920 per year $36,812.50 + $57,600.00 + $13,920.00 = $108,332.50per year for this contract Add for the fluctuation of the number of port licenses and 800#’s = $110,000 per year

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?

Hitec has assigned the State 268 800#'s for use with the Nextalk Service. If Hitec was not our vendor we would have to have Hitec release the numbers to the State. We would also need to find another vendor who provides similar service which at this time Hitec is the only authorized distributor of Nextalk in Illinois and Wisconsin. Also, agencies would need to purchase TTY equipment as a replacement until a new contract is in place. There is no master contract to purchase TTY equipment. TTY equipment has to be bid and runs approximately $400 per unit

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

Version 7.01 Page 4 of 5

Bulletin Reference Number 22-448DOIT-TELEC-B-25116

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 Sep 14, 2021

Printed Name Wallace Dandridge E-mail Address wallace.dandridge@illinois.gov

Phone Number 217-557-1652

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 matthew.lehman@illinois.gov

Phone Number 2156855088 Date Oct 15, 2021

Printed Name Matthew Lehman

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 217-720-6771 Date Oct 18, 2021

Printed Name Kylie D. Carter E-mail Address Kylie.Carter@Illinois.gov

Version 7.01 Page 5 of 5

Bulletin Reference Number 22-448DOIT-TELEC-B-25116

Requesting Agency/University DoIT

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

1/1/19 to 12/31/19- $110,000 - Nextalk/Hitec services for the disabled - CIT9608800 - Sole Source.

1/1/20 to 12/31/21- $110,000 - Nextalk/Hitec services for the disabled - CIT1019577 - Sole Source.

Hitec is the only authorized distributor of Nextalk in Illinois and Wisconsin.

Pricing has remained the same for software maintenance for the past 4 years at $38,750.00 per year. (This is split between the 2 fiscal years $19,375.00 per FY). The monthly charge is $4800.00 per month for the port licenses which includes 48 800#'s. Each additional 800# is $5.00 per month. Currently there are 280. The total monthly fee is $6,000.00 per month. This could increase if the State requires additional 800#'s. The reason for the cost increase has been the additional 800#'s that have been required by the State for additional users.

Software Maintenance = $36,812.50 per year Port Licenses = $4,800.00 per month = $57,600 per year 800#’s = 232 x $5.00 = $1,160 per month = $13,920 per year $36,812.50 + $57,600.00 + $13,920.00 = $108,332.50per year for this contract Add for the fluctuation of the number of port licenses and 800#’s = $110,000 per year