Sole Source Justification Form Xerox Highspeed Printers Amendment - Executed~1.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 24-448DOIT-INFOT-B-41652

Requesting Agency/University Illinois Department of Innovation and Technology

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

Department/Bureau/Section: DoIT/EPOS/Mainframe

Need Identified Date: 12/1/2023 Supply/Service Need By Date: 4/1/2024

Project Title: Xerox High Speed Printer Maintenance adjustment

Vendor: Xerox Corporation

Provide a description of the supplies or services required:

Amend agency specific contract to add an additional $250,000 to provide maintenance and volume printing on the high speed Xerox printers located at the Willard Ice Building in Springfield and the 33 South State location in Chicago. Asking for an amendment to sole source contract (P-43956) that will take us through FY24 (06/30/24). Below is the list of current high speed printers that need maintenance.

TX0001509

TX0001795

TX0001794

TX0001659

TX0001664

Value: Actual Value of Initial Term, this Change Order or Amendment: 250,000

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: One-Time Amendment or Change Order

Section II - Proposed Term

One-Time Purchase Term Contract

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 24-448DOIT-INFOT-B-41652

Requesting Agency/University Illinois Department of Innovation and Technology

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 10/5/2022 6/30/2024 1,256,157 2 year Maintenance CIT3030160 Sole Source

2 5/1/2020 Jun 30, 2022 2,103,792 2 Year Maintenance CIT0176100 Sole Source

3 7/1/2018 4/30/2020 2,103,792 2 Year Maintenance Contract CIC9346130 Sole Source

4 7/1/2017 6/30/2018 1,238,348 Annual Maintenance - PBC P-1338 P-1338 Sole Source

5 7/1/2016 6/302017 1,238,348 Annual Maintenance - PBC 99579 CIC7995790 Sole Source

6 7/1/2015 6/30/2016 1,383,022 Annual Maintenance - PBC 93085 CIC6930850 Sole Source

7 7/1/2014 6/30/2015 1,195,886 Annual Maintenance - PBC 58765 CIC4787050 Sole Source

8 07/01/2013 06/30/2014 1,195,886 Annual Maintenance - PBC 78705 CIC4787050 Sole Source

9 01/01/2013 06/30/2013 845,805 6 Month Maintenance - PBC 74655 CIC3746550 Sole Source

10 07/01/2012 12/31/2012 827,936 6 Month Maintenance - PBC 71222 CIC3712220 Sole Source

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

FY11 PBC 58765 Contract CIC2587650 $1,575,028 FY10 PBC 49631 Contract CIC0429631 $1,575,028 FY09 PBC 42983 Contract CIC0429830 $1,352,884 FY09 - PBC 34613 Contract CIC9346130 $1,745,752 FY08 - PBC 26752 Contract CIC8267520 $1,587,038 FY07 - PBC 20790 Contract CIC7207900 $561,197 FY06 - PBC 8274 Contract CIC6082740 $530,000

Section VI - Business Rationale

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

This maintenance agreement provides for timely response to repair orders at a guaranteed level of service as well as volume usage pricing. These printers generate reports and documents for many mainframe and midrange production systems at DoIT, DHS, HFS, DES, DOT and other customer agencies. Without these printers getting regular service and volume usage pricing, DoIT would fail to meet critical deadlines impacting agencies, employees and Illinois citizens.

The Agency requires an amendment to increase maximum amount of the contract due miscalculating the required amount for the term. The Agency only took the base monthly charge and added it with extended coverage charges for a 12 month period when the term was actually 21 months. The Agency also miscalculated the required funding when estimating the transition of replaced printers, procured printers and printers which were scheduled to fall off the inventory for the term. Two printers (TX0001214 and TX0001206) were replaced and never had any charges under this contract. Two printers (TX0001187 and TX0001196) were replaced during the contract term and did not have any additional charges. The following printers are still active needing a amendment increase to continue the uninterrupted maintenance services (TX0001509, TX0001795, TX0001794, TX0001659, and TX0001664) The transitions of printers being replaced, purchased and removed from inventory were incorrectly calculated thus the requirement of $250K to continue services for the above printers.

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Bulletin Reference Number 24-448DOIT-INFOT-B-41652

Requesting Agency/University Illinois Department of Innovation and Technology

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

The Agency has a Full Service Maintenance Agreement that includes all parts, labor, software updates, maintenance and travel for the Agencies Xerox Highspeed Printers hardware and software. A 24-hour-a-day, 7-days-a-week support staff to assist with hardware and software problem resolution, software version updates, hardware retrofits and all diagnostic licenses.

The Agency has an established Service Level Agreement (SLA) for maintenance and repair on the below outlined Xerox Highspeed print presses, so that downtimes do not impact delivering critical print items. SLA are established for response times to be less than 4 hours.

TX0001509

TX0001795

TX0001794

TX0001659

TX0001664

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?

Integrated technologies ensure paper sheet flatness, unique pass-through programming on tandem models keeps jobs moving even when there’s printer fault in one of the print presses' engines. Xerox FreeFlow Core combines forces with a Xerox FreeFlow Print Server to automate and optimize workflow. These, and other Xerox-developed innovations allow print operations to deliver on SLAs with the highest quality output while keeping costs in check. Advanced image balancing software combines with the high addressability printing system to ensure overall image uniformity, as well as an exact match between engines which is necessary when folding and mailing millions of forms and mailings to SOI citizens. We have customized this technology which has allowed for the customization of forms, checks, payroll, responses, IRS documents which integrates with the capabilities of the Xerox Nuvera technology.

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:

Xerox requires all maintenance to be performed by certified Xerox technicians. The Xerox service guarantees would be voided if DoIT allowed any non-certified technicians perform maintenance services on Agency Xerox printers. The maintenance prices quoted to DoIT represent the lowest possible discount. Xerox does not offer lower pricing to any reseller or subcontractor of Xerox maintenance services.

In times of crises when it is difficult to dispatch field service technicians to address SOI critical equipment needs, assistance capabilities are crucial to ensure business continuity of our customers. Xerox will also provide telephone assistance and walk through of the equipment with our certified technicians to potentially get the equipment operational quicker.

Expected benefit and return on investment of the requested product/service: Provides for continued, uninterrupted services to Xerox high speed printers and the critical applications supported by them. Response time is guaranteed at four hours or less.

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?

Alternatives were not assessed due to the fact that Xerox requires all maintenance and repairs to the State's high and medium volume printers be performed by a Xerox-certified and authorized technician. DOIT will void printer warranties if we look outside non Xerox alternatives for these devices. Loss of even a single high speed printer unit for an extended amount of time, seriously impairs if not prohibits the ability to meet the volume printing needs of customer agencies some of which are notifications sent to citizens of Illinois relating to services they receive.

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?

Xerox calculates annual maintenance based on a flat fee, estimated monthly output volume and the level of coverage required.

Previous contracts have varied depending on the term length, the number of devices and age of the equipment covered. DOIT rates were calculated utilizing the NASPO contract terms which on average are nearly 20 percent lower than maintenance terms negotiated outside this master contract.

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Bulletin Reference Number 24-448DOIT-INFOT-B-41652

Requesting Agency/University Illinois Department of Innovation and Technology

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?

These Xerox high speed printers generate reports and documents for many mainframe and midrange production systems at DoIT, DHS, HFS, DES, DOT and other customer agencies. Many of these print items have federally mandated mailing deadlines, in which if they are not met, SOI is subject to high dollar fines. Without these printers getting regular service and volume usage pricing, DoIT would fail to meet critical deadlines impacting agencies, employees and Illinois citizens. Xerox printers have been used for many years for mainframe and midrange high volume production printing and the Xerox print scripts are incorporated into numerous mission critical applications for several agencies.

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

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Bulletin Reference Number 24-448DOIT-INFOT-B-41652

Requesting Agency/University Illinois Department of Innovation and Technology

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 3/12/2024

Printed Name Patrick Kelleher E-mail Address patrick.kelleher@illinois.gov

Phone Number 217-557-7303

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 christopher.brinkmeyer@illinois.gov

Phone Number 217-524-7057 Date 3/12/2024

Printed Name Van Austin by Chris Brinkmeyer

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 Mar 12, 2024

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

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Bulletin Reference Number 24-448DOIT-INFOT-B-41652

Requesting Agency/University Illinois Department of Innovation and Technology

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

TX0001509

TX0001795

TX0001794

TX0001659

TX0001664

FY10 PBC 49631 Contract CIC0429631 $1,575,028 FY09 PBC 42983 Contract CIC0429830 $1,352,884 FY09 - PBC 34613 Contract CIC9346130 $1,745,752 FY08 - PBC 26752 Contract CIC8267520 $1,587,038 FY07 - PBC 20790 Contract CIC7207900 $561,197 FY06 - PBC 8274 Contract CIC6082740 $530,000 Q1Answer: This maintenance agreement provides for timely response to repair orders at a guaranteed level of service as well as volume usage pricing. These printers generate reports and documents for many mainframe and midrange production systems at DoIT, DHS, HFS, DES, DOT and other customer agencies. Without these printers getting regular service and volume usage pricing, DoIT would fail to meet critical deadlines impacting agencies, employees and Illinois citizens.

The Agency requires an amendment to increase maximum amount of the contract due miscalculating the required amount for the term. The Agency only took the base monthly charge and added it with extended coverage charges for a 12 month period when the term was actually 21 months. The Agency also miscalculated the required funding when estimating the transition of replaced printers, procured printers and printers which were scheduled to fall off the inventory for the term. Two printers (TX0001214 and TX0001206) were replaced and never had any charges under this contract. Two printers (TX0001187 and TX0001196) were replaced during the contract term and did not have any additional charges. The following printers are still active needing a amendment increase to continue the uninterrupted maintenance services (TX0001509, TX0001795, TX0001794, TX0001659, and TX0001664) The transitions of printers being replaced, purchased and removed from inventory were incorrectly calculated thus the requirement of $250K to continue services for the above printers.

Q2Answer: The Agency has a Full Service Maintenance Agreement that includes all parts, labor, software updates, maintenance and travel for the Agencies Xerox Highspeed Printers hardware and software. A 24-hour-a-day, 7-days-a-week support staff to assist with hardware and software problem resolution, software version updates, hardware retrofits and all diagnostic licenses.

The Agency has an established Service Level Agreement (SLA) for maintenance and repair on the below outlined Xerox Highspeed print presses, so that downtimes do not impact delivering critical print items. SLA are established for response times to be less than 4 hours.

TX0001509

TX0001795

TX0001794

TX0001659

TX0001664

Q3Answer: Integrated technologies ensure paper sheet flatness, unique pass-through programming on tandem models keeps jobs moving even when there’s printer fault in one of the print presses' engines. Xerox FreeFlow Core combines forces with a Xerox FreeFlow Print Server to automate and optimize workflow. These, and other Xerox-developed innovations allow print operations to deliver on SLAs with the highest quality output while keeping costs in check. Advanced image balancing software combines with the high addressability printing system to ensure overall image uniformity, as well as an exact match between engines which is necessary when folding and mailing millions of forms and mailings to SOI citizens. We have customized this technology which has allowed for the customization of forms, checks, payroll, responses, IRS documents which integrates with the capabilities of the Xerox Nuvera technology.

Q4Answer: Xerox requires all maintenance to be performed by certified Xerox technicians. The Xerox service guarantees would be voided if DoIT allowed any non-certified technicians perform maintenance services on Agency Xerox printers. The maintenance prices quoted to DoIT represent the lowest possible discount. Xerox does not offer lower pricing to any reseller or subcontractor of Xerox maintenance services.

In times of crises when it is difficult to dispatch field service technicians to address SOI critical equipment needs, assistance capabilities are crucial to ensure business continuity of our customers. Xerox will also provide telephone assistance and walk through of the equipment with our certified technicians to potentially get the equipment operational quicker.

Expected benefit and return on investment of the requested product/service: Provides for continued, uninterrupted services to Xerox high speed printers and the critical applications supported by them. Response time is guaranteed at four hours or less.