SP_10700-102519_Amd-1_ArmoredTransportServices-Approved.pdf

SP_10700-102519, Amd-1_Armored Transport Services Page 1 of 6 (Previous SP_10700-39329)

REQUEST FOR SPECIAL PROCUREMENT AMENDMENT

No. REQ-10700-00102519, Amendment 1

(Previously REQ-10700-00039329)

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: Department of Administrative Services (“DAS”), State Procurement

Services (“SPS”)

2. Date of Request: October 31, 2024 3. Agency Number: 10700

4. Agency Contact Name: Dion Kerlee 5. Phone: 971-349-0518

6. Type of Request: ___ Class Special Procurement X Contract-specific Special Procurement

7. Amendment Time Period Requested: From: November 21, 2024 To: November 21, 2025

8. Total Estimated Cost for Amendment Time Period: $1,089,000.00

Note: Each Authorized Purchaser (AP) is responsible for payment of the costs directly related to the Services the AP procures under the PA.

9. Title: Supplies and/or Services to be acquired:

Armored Transport Services - The secure collection, transportation and deposit of cash, monetary instruments, other valuable items and related services (collectively “Services”).

10. Amendment Request, Background, Current Need, and Proposed Contracting Procedure:

a. Amendment Request:

DAS SPS seeks approval of this Special Procurement (“SP”) No. REQ-10700-00102519, Amendment #1 Request (“Amd-1”) to reinstate and amend Price Agreement No. 3396 (the “PA”) issued to Loomis Armored US LLC (“Loomis” or “Contractor”) as follows:

1. Reinstate the PA in accordance with Oregon Administrative Rule (“OAR”) 125-246- 0570, making the PA in full force and effect, with an Effective Date of November 21, 2024.

2. Amend the PA to extend its Term for 12 additional months, which will support the completion of a formal, competitive procurement process currently underway.

b. Background:

State agencies and cooperative procurement partners (collectively “Authorized Purchasers” or “APs”) rely on the PA to procure Armored Transport Services. The Services are provided on scheduled routes and pick-up times specified by APs. These Services eliminate the possibility of Authorized Purchaser employees transporting cash, monetary instruments, and other valuable items to the state’s depositories, which is prohibited.

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PA History

• May 2013: The PA was established through a competitive Request for Proposal (“RFP”) process (102-1894-12R), with a maximum Term up to 10-years.

• June 2023: DAS SPS submitted Special Procurement #10700-39329, attached hereto as ‘SP_Attachment-1’, to request approval to amend the PA and extend its Term for one additional year in order to support a new Armored Transport Services RFP procurement process. The Special Procurement was approved on August 10, 2023, and the PA was amended (Amendment 12), extending the Term through November 21, 2024.

Since the approval of Special Procurement #10700-39329, DAS SPS has been collaborating with a diverse group of subject matter experts (“SMEs”) to develop the scope of services for the new RFP. This process has taken longer than initially expected due to:

• challenges in coordinating schedules across such a large group to gather input and feedback from each SME.

• Oregon’s financial institution closing all but one depository in Portland. These closures have impacted same-day deposit requirements due to the prohibition on deposits at any other bank branches. Rural and remote locations, in particular, have been affected, as they must now rely on the single Portland location for same-day deposits. Additionally, the closures introduced the need to collaborate with the Oregon State Treasury (“Treasury”) to develop parameters that align with both Treasury’s service delivery requirements and those ofthe state’s financial institution, which Treasury manages.

For additional historical and background information see SP_Attachment-1.

c. Current Need:

The PA, which will expire on November 21, 2024, supports APs throughout the enterprise, including cooperative procurement partners, with their secure collection, transportation and deposit needs for cash, monetary instruments, and other valuable items. It is imperative that the PA remain in full force and effect until the new procurement process is completed and one or more new PA is established.

The new RFP draft documents are currently under review at Oregon Department of Justice (“DOJ”). Table 10.C.1 below provides a high-level estimated Schedule of Events for the procurement.

Table 10.C.1

Procurement Event Estimated Date

RFP issued on OregonBuys December 2024

Intent-to-Award(s) issued March 2025

New PA(s) executed April 2025

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Through this SP Amd-1, DAS SPS seeks the ability to reinstate and amend the PA to extend its Term up to 12 additional months. Table 10.C.2 below provides the estimated cost to continue Services under the existing PA for one additional year. Note that these costs are borne by the APs ordering Services under the PA.

Table 10.C.2

Description Estimated Amount

Current Spend (From Q3 VSR): $272,000

Time Period Requested (Four (4) Calendar Quarters): x4

Total Estimated Cost: $1,089,000

d. Proposed Contracting Procedure:

1. As required by OAR 125-247-0287, DAS SPS will issue a public notice (the “Notice”) of the approved SP Amd-1 on OregonBuys for a period of seven (7) calendar days.

2. The Notice will include provision that any affected party may protest the approval of this SP

Amd-1.

3. DAS SPS will respond to and resolve all protest(s) of this SP Amd-1, if any.

4. If no protests are received and sustained, DAS SPS will proceed with reinstating and amending the PA as discussed in Section 10.a above.

5. Pursuant to Oregon Revised Statute (“ORS”) 291.047 and related administrative rules, DAS

SPS will work with DOJ and obtain legal sufficiency approval prior to executing the PA Amendment.

11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

1. With the approval of Special Procurement #10700-39329 (SP_Attachment-1) in 2023 and subsequent amendment of the PA, the PA became bound to the terms of the Special Procurement from that point forward. Therefore, the PA cannot be reinstated and amended as outlined in Section 10.a above, without first obtaining DAS approval through a Special Procurement Amendment Request.

2. The Services are heavily relied upon by State agencies and cooperative procurement partners.

3. If the PA does not remain in full force and effect until the anticipated (new) PAs are established, impacts to APs may include:

a. added expense to establish ‘bridge’ agreements.

b. added expense for procurement staff to source replacement contracts or agreements.

c. delayed deposits contrary to applicable statutes, rules, or policies.

d. exceeding allowable thresholds for onsite cash and valuables.

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12. Findings to Satisfy the Required Standards: This proposed special procurement:

X (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

1. The existing PA resulted from a Competitive Sealed Proposal procurement, conducted in accordance with ORS 279B.060 and OAR 125-247-0260.

2. The new procurement underway will be conducted in accordance with the procurement laws governing the Competitive Sealed Proposal method. Refer to Table 10.C.1 for an estimated Schedule of Events.

a. The solicitation (RFP) documents are being drafted to foster maximum competition.

b. The RFP will anticipate multiple Price Agreement awards. All providers of Armored Transport Services will have the opportunity to compete for a Price Agreement award.

c. The RFP will be issued on OregonBuys, the State’s eProcurement system of record, which currently holds a roster of 31,000 vendors.

d. All proposals submitted in response to the RFP that meet the responsibility and responsiveness requirements will be evaluated by an evaluation committee.

and

______ (b)(i) will result in substantial cost savings to the contracting agency or to the public because:

or

X (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because:

Pursuant to its designation as the sole banking and cash management officer for the State of Oregon, the Oregon State Treasury ("Treasury") has broad authority to review, establish, and modify policies and procedures for the efficient handling of cash and cash equivalents under the control of all Agencies.

Treasury (policy) FIN 201, Collection and Deposit of Money(s), provides in part that Agencies should consult with Treasury when designing and implementing specific processes and controls relative to the collection and deposit of Money(s), including the availability and frequency of armored car or other secure transport methods. Treasury Cash Management Policies can be accessed at:

https://www.oregon.gov/treasury/public-financial-services/banking-with-treasury/pages/cash-management-policies.aspx.

Each agency establishing its own contract for armored car or other secure transport services is not a good use of staff resources or funds. Statewide Price Agreements benefit agencies by obtaining price discounts and leveraging other concessions through volume purchases. Additionally, an agency avoids administrative, procurement and contract management burdens. DAS manages these processes for https://www.oregon.gov/treasury/public-financial-services/banking-with-treasury/pages/cash-management-policies.aspx https://www.oregon.gov/treasury/public-financial-services/banking-with-treasury/pages/cash-management-policies.aspx

SP_10700-102519, Amd-1_Armored Transport Services Page 5 of 6 certain products and services, such as armored transport services, to leverage the state’s buying power and reduce the need for multiple agencies to conduct solicitations and establish and manage individual contracts.

Approval of this SP Amd-1, which seeks the ability to keep the current PA in place until a new set of armored transport services PAs are established can only be requested and approved through a Special Procurement under ORS 279B.085 and related administrative rules. Supporting state agencies and cooperative procurement partners with continuous, immediate access to armored transport services for the safe delivery and deposit of cash, monetary instruments, and other valuable items substantially promotes the public’s interests.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request submitted through OregonBuys. Agency may elect to attach a signed Request as a pdf file through OregonBuys or submit a signed hard copy Request.

Signature: e.g. Electronically in OregonBuys _________________ Name/Title: Date:

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PART B. The Department of Administrative Services completes Part B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and (b)(A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125-247-0288 implement ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The AuthorizedAgency shall post the Public Notice on OregonBuys. The Special

Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Agency shall comply with the requirements of ORS 279A.165 and OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

3. Upon completion of the Notice (section 1), the DAS Procurement Policy Officer’s (“DAS PPO”) approval of this SP Amd-1 applies retroactively to the Effective Date (November 21, 2024) of the next issued PA Amendment.

APPROVED:

Jay Jackson, Procurement Policy Officer Date Department of Administrative Services

11/22/2024