SP-1113-19 Amd(1)_Final~1.pdf

SP-1113-19, Amendment No. 1SP-1113-19 Amd(1)_Final.docx Page 1 of 4

REQUEST FOR SPECIAL PROCUREMENT

SP-1113-19, Amendment No. 1

(OHA 4470-1)

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

1. Requesting Agency Name: Department of Administrative Services, Procurement Services (“DAS PS”) on behalf of the Oregon Health Authority (“OHA”), Public Health Division (“PHD”), Oregon State Public Health Laboratory (“OSPHL”).

2. Date of Request: April 8, 2020 3. Agency Number: 107090

4. Agency Contact Name: Sara Stravers-Stone 5. Phone: (971) 707-1658

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

7. Amendment Time Period Requested: From: August 1, 2020 To: July 31, 2024

8. Total Estimated Cost for Amendment Time Period: $540,000

9. Title: Supplies and/or Services to be acquired: Billing services for the OSPHL.

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

a. Amendment Request: DAS PS, on behalf of OHA, requests approval of this Special Procurement (“SP”), Amendment No. 1 to extend Contract No. DASPS-3166-19 (OHA-145893-14) (“Contract”) with Public Consulting Group, Inc. (“PCG”) for an additional four (4) years beyond the maximum term allowed by SP-1113-19 of six (6) years and to increase the current not-to-exceed (NTE) of $810,000 by $540,000 for a maximum NTE of $1,350,000 with the extension of time.

b. Background: Under the Contract, PCG submits claims to third party payers and receives electronic and paper remit data. There is also a separate payer enrollment process for OHA to receive Electronic Fund Transfers (“EFT”) for direct deposit of reimbursements to OHA. PCG manages that enrollment process under the Contract and has configured its internal billing systems to work with OHA data.

SP-1113-19 was approved on April 18, 2019 in order to extend the Contract for an additional year with the intent to provide time for issuing a competitive solicitation for a Request for Proposals (“RFP”).

The SP was posted for seven (7) days on the Oregon Procurement Information Network (“ORPIN”) on April 29, 2019. No protests were received and Amendment No. 1 to the Contract was executed.

Over the past year, it has been determined that the one (1) year contract extension was not sufficient to develop the competitive solicitation, as more requirements are discovered through market research.

After consideration, DAS PS, on behalf of OHA, requests to maintain the current contract with PCG for the next four (4) years, while a fully, comprehensive RFP can be developed.

For additional historical and background information, see Attachment 1, Original SP-1113-19.

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c. Current Need:

The breakdown of costs for services needed are as follows:

Services Months Monthly Amount Total Billing services 48 $11,250 $540,000

d. Proposed Contracting Procedure:

• DAS PS will issue a public notice on ORPIN, as required by Administrative Rule (OAR 125- 247-0287), regarding approval of this SP Amendment.

• Advertisement of the SP Amendment will include provisions that any affected person may protest the approval of the SP Amendment.

• If no protests to this SP Amendment are received or sustained, DAS PS will enter into negotiation with PCG to amend and extend Contract No. DASPS-3166-19 (OHA-145893-14).

• Comprehensive RFP development will continue as follows:

o complete and document final market research (“MR”) findings, o identify/refine list of critical business needs (and components) which can be met by available vendor solutions, o update IT oversight documentation – obtain necessary approvals from Enterprise

Information Services (“EIS”), o construct a new Scope of Work (“SOW”), o present the revised SOW with all documentation in a request to DAS PS to collaboratively (DAS PS and Agency procurement staff) construct and issue a formal competitive solicitation document, and o evaluate “best fit” solutions that deliver most significant value for the IT investment.

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

The current contract with PCG:

• provides for consistent, accurate, and uninterrupted service delivery ensuring maximum return on OHA’s considerable investment in OSHPL’s critical operational and business processes, and

• represents a best value and best practice course of action for OHA in supporting the time to construct a more well-informed, well-considered and timely procurement activity for continuing these services following contract expiration while keeping with State and Agency IT investment strategies.

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:

OHA issued a Formal RFP (OHA-3699-14) for Billing Services for the OSPHL, which was a publicly noticed competitive process that resulted in the award of Contract No. DASPS-3166-19 (OHA-145893-14) and further extended by State CPO’s original approval of SP-1113-19. Only two

SP-1113-19, Amendment No. 1 Page 3 of 4 proposers responded to the original RFP and no one protested SP-1113-19. The procurement activity anticipated at the end of the extended contract period will comply with the Oregon Procurement Code, ORS 279A and ORS 279B and will be of a competitive nature. Approval of the request would afford DAS PS and OHA sufficient time to develop a comprehensive RFP which, upon approval to release, would foster competition among potential service providers.

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 performance of Contract No. DASPS-3166-19 provides critical billing services for OSPHL and ultimately, the citizens of Oregon. Loss of the services through this contract would require OSPHL to hire a workforce to handle billing, as one does not currently exist, and force a transition to a paper billing process, causing enormous delays in billing processing and payments in addition to creating unbudgeted expenses.

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

Signature: e.g. Electronically in ORPIN _________________ 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 Authorized Agency shall post the Public Notice on ORPIN. 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. Authorized Agency shall comply with all Enterprise Information Services (EIS) conditions and requirements prior to execution of any contracts or amendments and will obtain Department of Justice (DOJ) legal sufficiency review and approval, as may be required.

APPROVED:

Approved by Debbie Dennis via email on: April 28, 2020 @ 9:30 AM Debbie Dennis, State Chief Procurement Officer, Date:

Department of Administrative Services