SP_10700-113099_Amd-1_AmazonMasterAgreement_Approved~2.pdf

SP_10700-113099, Amd-1 Amazon Master Agreement Page 1 of 6 (Initial SP-1127-19)

REQUEST FOR SPECIAL PROCUREMENT No.

10700-00113099, Amendment No. 1

(Initial SP-1127-19)

PART A.

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

2. Date of Request: January 9, 2025 3. Agency Number: 107090

4. Agency Contact Name: Kaliska King 5. Phone: 503-798-1907

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

7. Amendment Time Period Requested: From: December 16, 2025 To: December 16, 2035

8. Total Estimated Cost for Amendment Time Period: Unknown

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

Master Amazon Business Agreement established for DAS (“Master Agreement”), under which Amazon Business Membership Accounts or Prime Membership Accounts (or both) can be established for Authorized Purchasers (“Sub-Account(s)”).

• Existing Amazon Business Membership or Prime Membership accounts used by state agencies subject to DAS authority will be consolidated under the DAS Master Agreement.

• State agencies subject to DAS authority that do not currently have an Amazon Business Membership or Prime Membership account may establish one (or both) under the centrally managed DAS Master Agreement.

• State agencies not subject to DAS authority that have—or wish to establish—an Amazon Business Membership or Prime Membership account (or both) will have the option to consolidate their account(s) under the centrally managed DAS Master Agreement.

• DAS may, at its sole discretion, extend the option to members of the Oregon Cooperative Procurement Program (“ORCPP”) to consolidate existing—or establish new—Amazon Business Membership or Prime Membership accounts (or both) under the centrally managed DAS Master Agreement.

All state agencies and other entities (i.e., ORCPP members) that consolidate existing—or establish new—Amazon Business Membership or Prime Membership accounts (or both) under the DAS Master Agreement are collectively “Authorized Purchasers.”

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

a. Amendment Request:

Through this Special Procurement #10700-113099, Amendment #1 Request (“SP_Amd-1”) SPS seeks to extend the Time Period originally requested and approved in Special Procurement #SP- 1127-19 (“Initial SP”), attached hereto as ‘SP_Attachment-1’, an additional 10-years, through

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December 16, 2035. The extension will support direct award and negotiation of an Agreement with Amazon.com, Inc. (“Amazon.com” or “Amazon”) for the Master Agreement.

b. Background:

To leverage the State’s buying power and potentially offer agencies an additional purchasing option, SPS submitted the Initial SP in 2019, seeking approval to directly award and negotiate a Master Agreement with Amazon.com to centrally manage Authorized Purchasers’ Amazon Sub-Account(s).

The SP request was approved by the State Chief Procurement Officer on December 16, 2019.

Shortly thereafter, the Amazon Master Business Agreement project (the “Project”) was put on hold as SPS shifted its focus to the implementation of OregonBuys®, the State’s new eProcurement system.

With OregonBuys® now fully implemented, SPS has reprioritized the Project.

An analysis of limited data from June 2023 to June 2024 shows that 38 Oregon state agencies used Amazon.com through approximately 1,800 different user accounts, with a total spend exceeding $4.1 million. The data also identified the following:

• Several agencies are duplicating efforts by independently paying for Amazon Prime memberships.

• There are inconsistencies in account usage, with some users operating under personal accounts and others under business accounts.

• A portion of the Amazon spend was used to purchase items that should have been sourced through existing statewide price agreements.

These findings reinforce SPS’ decision to renew its pursuit of the Project, which aims to streamline purchasing, reduce duplication, enhance transparency, and support compliance with Oregon’s Public Contracting Code (the “Code”), Administrative Rules (“OARs”), and the Buy Decision outlined in

OAR 125-247-0200.

The Time Period approved in the Initial SP will expire on December 16, 2025. SPS requires additional time to complete negotiations, establish the DAS Master Agreement, consolidate Authorized Purchasers’ Sub-Account(s) under it, and gather sufficient data to assess whether the State has realized the anticipated benefits outlined in the Initial SP and this SP_Amd-1.

For additional historical and background information, see SP_Attachment-1.

c. Current Need:

Through this SP_Amd-1, SPS seeks to extend the Time Period (Term) authorized in the Initial SP by an additional 10 years to support the following objectives:

• Directly award, negotiate, and execute a DAS Master Agreement with Amazon.com, under which all Amazon accounts established for state agencies subject to DAS procurement authority will be consolidated and centrally managed.

• Pilot the DAS Amazon Master Agreement using centrally managed Authorized Purchasers’ Sub-Account(s) as a viable purchasing pathway.

• Collect and evaluate sufficient data to assess the effectiveness and value of the Amazon Master Agreement as a centralized purchasing method for state agencies under DAS procurement authority—and potentially extend its use to ORCPP members.

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d. Proposed Contracting Procedure:

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

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

SP_Amd-1.

3. DAS will respond to and resolve all protests of this SP_Amd-1, if any.

4. If no protests to this SP_Amd-1 are received and upheld, SPS will proceed with the direct award and negotiation of the Agreement described in Section 10.a above and in Section 10.d, Step 2 of the Initial SP (SP_Attachment-1).

5. SPS will work with DAS Enterprise Information Services (“EIS”) and obtain its endorsement prior to executing the Agreement, if required.

6. Pursuant to OAR 137-045-0015 and Oregon Revised Statute (“ORS”) 291.047, SPS will work with Oregon Department of Justice (“DOJ”) to obtain legal sufficiency approval prior to executing the Agreement, if required.

11. Justification for use of Special Procurement:

The Initial SP has already approved the Alternate Procurement Method through which SPS may establish a single DAS Master Agreement, under which roughly 1,800 existing state agency Amazon accounts will be consolidated (Sub-Accounts). This will give DAS a clearer view of state agency memberships, subscriptions, spending and purchasing patterns, all of which will inform DAS’ policy making decisions regarding state agency use of Amazon.com moving forward.

This SP_Amd-1 clarifies the previously approved Alternate Procurement Method and seeks to extend the Time Period approved in the Initial SP an additional 10-years, through December 16, 2035.

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:

• The Initial SP (SP_Attachment-1) approved the direct award, negotiation, and execution of a DAS-held Master Agreement, under which Amazon accounts already established for state agencies subject to DAS’ procurement authority will be consolidated and centrally managed.

• State agencies under DAS’ procurement authority that do not currently have an Amazon Business Membership account or Prime Membership account and wish to establish one—or both—under DAS’ Master Agreement may do so. However, they may not use the Sub- Account(s) for purchases without first considering all Procurement Methods outlined in the Buy Decision, and in the order specified therein.

• At SPS’ sole option, the DAS Master Agreement may also be made available to ORCPP members to consolidate their existing Amazon accounts or establish new ones thereunder.

• The Amazon.com platform offers a wide variety of commodities from multiple vendors, promoting competition and helping state agencies obtain the best value and quality.

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• SPS will continue to conduct market research and monitor industry developments in similar e-commerce platforms for future consideration.

• This SP_Amd-1 seeks only to clarify the original request and extend the Time Period (Term) approved in the Initial SP.

None of the above actions will diminish vendor competition or promote vendor favoritism.

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:

The Initial SP requested and granted the authority to direct award, negotiate, and execute a Master Agreement with Amazon.com to centrally manage Amazon.com purchases made by state agencies subject to DAS’ procurement authority.

The only Procurement Method currently authorized in the Code that allows direct awards without competition is ORS 279B.065 Small Procurements, which permits such awards only up to $25,000.

Given the cumulative spend of approximately $4.1 million between June 2023 and June 2024, it is reasonable to project that the total expenditures over the 10-year term requested in this SP_Amd-1 will far exceed the Small Procurements threshold. Therefore, the request could only be submitted and approved through a Special Procurement. Again, this SP_Amd-1 seeks only to clarify the original request and extend the Time Period (Term) approved in the Initial SP.

There are multiple benefits to a centrally managed Agreement—all of which promote the public’s interests—including:

1. Consistent Procurement Practices: Supports continuity among all participating agencies.

2. Improved Oversight and Accountability: Supports better tracking of purchases, spend patterns, and compliance with procurement rules (e.g., Buy Decision requirements). May help reduce the risk of unauthorized or inappropriate purchases.

3. Cost Savings and Increased Leverage: Consolidating demand may allow for volume-based discounts, waived shipping fees, or more favorable pricing structures.

4. Administrative Efficiency: Provides centralized data that supports DAS’ policy-making decisions regarding agencies’ use of Amazon.com, including identifying trends, compliance gaps, or areas for improvement that may highlight procurement training opportunities.

5. Compliance Assurance: Helps agencies comply with Oregon’s Public Contracting Code, Administrative Rules, and approved Procurement Sourcing and Methods (e.g., the Buy Decision). May highlight potential training opportunities for agencies subject to DAS, helping them better understand and apply correct procurement practices.

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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.

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 Authorized Agency 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.

APPROVED:

Jay Jackson, Procurement Policy Officer Date Department of Administrative Services

06/10/2025