SP_10700-127839_Amd-3_Computing-Networking MSAs_Approved.pdf

SP_REQ-10700-00127839, Amd-3_Computing and Networking Supplies & Services MSAs Page 1 of 5 (Initial SP and Amd-1: SP-603-12; Amd-2: 10700-51320)

REQUEST FOR SPECIAL PROCUREMENT

No. REQ-10700-00127839, Amendment No. 3

PART A.

1. Requesting Agency Name: Department of Administrative Services (“DAS”), State Procurement Services (“SPS”), on behalf of Enterprise Information Services (“EIS”)

2. Date of Request: April 16, 2025 3. Agency Number: 10700

4. Agency Contact Name: Jennifer Alton 5. Phone: (971) 375-5158

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

7. Amendment Time Period Requested: From: May 13, 2025 To: May 31, 2028

8. Total Estimated Cost for Amendment Time Period: $10,000,000

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

Computer system hardware, equipment, supplies, materials, and incidental services (defined as:

installation, configuration and training) for computing environments (including, but not limited to mainframe and midrange), storage, and networking systems (“Supplies and Services”).

The Supplies and Services set out in this section 9 only apply to procurement(s) under the following Master Services Agreements (the “MSAs”):

Table 9.a

Master Services Agreement No. Supplier (MSA Holder) Expiration Date

1 102-1557-14 / PO-10700-00008479 CDW Government LLC May 13, 2025

2 102-1556-14 / PO-10700-00018358 Hitachi Vantara Corporation May 13, 2025

3 102-1552-14 / PO-10700-00018356 Dell Marketing L.P. May 13, 2025

4 102-1555-14 / PO-10700-00018361 Presidio September 5, 2026

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

a. Amendment Request:

Through this Special Procurement (“SP”) #REQ-10700-00127839, Amendment No. 3 (“SP_Amd-3”), SPS, on behalf of EIS, seeks to:

1. Amend the SP to:

• extend its Term through May 31, 2028, in support of DAS SPS’ completion of a new procurement process that will establish a new pool of MSAs for the Supplies and Services detailed in Section 9 above.

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• increase the Total Estimated Cost available under the SP an additional $10,000,000 for a cumulative total of $30,000,000.

2. Reinstate the MSAs in accordance with Oregon Administrative Rule (“OAR”) 125-246-0570.

3. Amend the MSAs to extend their Terms through May 31, 2028.

b. Background:

The MSAs were established through SP 603-12, which was approved by DAS and attached hereto as ‘SP_Attachment-1’. These agreements enable EIS’ Data Center Services (“DCS”) to manage its enterprise computing and storage infrastructure, facilitating the delivery of shared applications, data and services to its customers.

To date, the SP has been amended twice:

• June 2016: SP 603-12, Amendment No. 1 (“SP_Amd-1”), also included in SP_Attachment-1, acknowledged the consolidation of the state’s data center into the Office of the State Chief Information Officer (“OSCIO”), which has since rebranded as Enterprise Information Services

(EIS).

• November 2023: SP 10700-51320, Amendment No. 2 (“SP_Amd-2”), also included in SP_Attachment-1, authorized extending the terms of the SP and the MSAs through May 13, 2025. The additional time was to support the conduct of a new procurement process to establish new MSAs for the Supplies and Services.

Since the approval of SP_Amd-2, CDW completed its acquisition of Sirius Computer Solutions, reducing the number of active MSAs from five (5) to four (4), as reflected in Table 9.a above.

For additional historical and background information see SP_Attachment-1.

c. Current Need:

MSAs 1-3 listed in Table 9.a above, expired on May 13, 2025. The Supplies and Services available under the MSAs support the state’s enterprise data center and enable DCS to operate efficiently and effectively to the benefit of its customers. Through this SP_Amd-3, SPS—on behalf of EIS—seeks authorization to reinstate MSAs 1-3 and amend all four to extend their terms three additional years through May 31, 2028.

Over the next three years, both SPS and EIS will prioritize the development and execution of a new procurement process, with the goal of issuing one or more MSAs for the required Supplies and Services by May 31, 2028.

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-3 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-3.

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

4. If no protests to this SP_Amd-3 are received or sustained, SPS will proceed with amending the

MSAs as detailed in Sections 10.a and 10.c above.

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5. SPS will work with EIS and obtain its endorsement prior to executing the MSA Amendments, if required.

6. Pursuant to OAR 137-045-0015 and Oregon Revised Statute (“ORS”) 291.049, SPS will work with Oregon Department of Justice (“DOJ”) to obtain legal sufficiency approval prior to executing the MSA Amendments, if required.

11. Justification for use of Special Procurement:

The MSAs were established under the SP and are therefore governed by its terms, meaning they cannot extend beyond the SP’s expiration date and the collective spend under the MSAs should not exceed the SP’s Total Estimated Cost. To reinstate and amend the MSAs as discussed in this SP_Amd-3, the SP must first be amended for the same. No other procurement method can achieve these objectives.

Ongoing resource limitations, staffing changes—including multiple transitions in contract administrators for the MSAs—and a persistent high volume of existing and new work prevented the initiation of the new procurement process discussed in SP_Amd-2. These challenges affected both SPS and EIS, and amid competing priorities, the need to initiate a new procurement effort temporarily lost visibility. It has since been reprioritized and has gained momentum.

SPS and EIS are in the first phase of the procurement life cycle (e.g., market research, determining specifications, drafting solicitation documents) and estimate issuing a Request for Proposals (the “RFP”) on OregonBuys® in Q1 2027.

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 MSAs were established through a competitive solicitation (RFP 102-2133-13) in accordance with ORS 279B.060 and OAR 125-247-0260.

The next RFP resoliciting the Supplies and Services is currently being developed.

• SPS anticipates issuing the RFP on OregonBuys® in Q1 2027.

• The RFP will be structured to encourage maximum competition.

• The solicitation will be conducted in accordance with Oregon’s Public Contracting Code and with the objective of awarding one or more MSA.

• The MSAs are anticipated to be executed by May 31, 2028, or sooner.

Conducting a formal procurement typically requires 18 months or more to complete. The time required to conduct a procurement for the purpose of establishing a three -year interim contract is equivalent to the time needed to resolicit for the full Supplies and Services and establish new MSAs. As such, there is no practical benefit to the State or the vendor community in pursuing an interim contract or MSA.

and

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

or

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__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 RFP that established the MSAs complied with the requirements of ORS 279B.060.

• The forthcoming RFP, which will resolicit the Supplies and Services and establish a new pool of MSAs, will be conducted in accordance with the requirements of ORS 279B.060.

Quick access to the Supplies and Services is crucial for DCS to maintain uptime, ensure business continuity, and adapt to rapidly changing needs. This includes having reliable infrastructure for compute, storage, and network, as well as access to expertise and support.

The findings of fact outlined in SP_Attachment-1 still apply.

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. Authorized 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. Compliance with EIS Policies & Standards. Authorized Agency shall comply with all Enterprise Information Services (“EIS”) conditions and requirements prior to contract execution, if any.

APPROVED:

Jay Jackson, Procurement Policy Officer Date Department of Administrative Services

6/10/2025