SP-1142-19_Final~1.pdf

REQUEST FOR SPECIAL PROCUREMENT No. 1142-19

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), Oregon State Hospital (OSH)

2. Date of Request: July 10, 2019 3. Agency Number: 107090

4. Agency Contact Name: Keri Ashford 5. Phone: (503) 378-4680

6. Type of Request: Contract-Specific Special Procurement

7. Time Period Requested: From: August 26, 2019 To: August 25, 2024

8. Total Estimated Cost: $1,875,544 (for time period requested), $4,067,289 (total from contract effective date through time period requested)

9. Title: Supplies and/or Services to be Acquired: Maintenance, Operational Support and System Enhancements for Workforce Management Staffing/Scheduling and Time/Attendance IT Solution for OSH

10. Request, Background and Proposed Contracting Procedure:

a. Request:

DAS PS, on behalf of OHA, requests approval of this Special Procurement to execute an amendment to extend contract #DASPS-1388-15 with API Healthcare for five (5) years.

b. Background:

OSH needed a workforce management (WFM) solution that would function as an integrated staff scheduling and timekeeping system with the potential for future linking to the Oregon State Payroll System (OSPS), Human Resources Services Division (HRSD) mainframe, and OSH Electronic Health Record system.

Key OSH business requirements were identified as follows:

• Real-time staffing and scheduling. OSH is an acute mental healthcare facility, where the ratio of staff to patients fluctuates frequently (sometimes hour-by-hour) based on patient needs. Real-time 24/7 hospital-wide staffing is imperative to maintain safety of staff and patients.

• Centralized staff planning and forecasting. OSH must maintain appropriate staffing levels when evaluating leave requests and assigning overtime shifts. Both are subject to collective bargaining agreement provisions that include hospital-wide considerations. This is even more important with recent legislation limiting OSH’s ability to mandate nursing staff. The old paper system was limited in its ability to identify and address root causes of staffing issues.

• Managing direct care staff work assignments based on unit needs, credentials, and other factors, including a float pool of limited duration and agency staff assigned to fill coverage gaps.

• Validation of time worked based on clockings and schedules. This includes overtime and automatic calculation of time-based differentials. The previous process was to log start and end times on a paper log and submit a paper authorization slip to claim overtime worked. Unit based timekeepers manually calculated employee pay coding based on paper logs and overtime slips. Paper overtime slips took weeks to process and resulted in timesheet corrections due to length of processing times. Unit RN’s and unit managers, those primarily responsible for patient care, were involved in validating and authorizing overtime. Frequently, overtime slips would be completed prior to the end of shift, resulting in inaccurate payment of overtime for staff who depart early or late.

• Time efficiencies spanning a smaller pool of resources. Both scheduling and timekeeping was extremely labor intensive and required work from a variety of support staff, direct care staff, and managers.

After reviewing various options, OHA determined a Commercial off the Shelf (COTS) solution would best fit the needs of the agency, and OHA conducted a formal solicitation, issuing RFP No. 3141 on November 10, 2010.

Four (4) vendors, ACS-Kronos, API Healthcare, Intellitime, and NovaTime, submitted responsive proposals in response to the RFP. As a result of the evaluation process, API Healthcare was determined to be the Apparent Successful Proposer and OHA and API Healthcare executed Contract No.136276 in August 2011 (later renumbered DASPS-1388-15 on transfer of procurement authority to DAS Procurement Services (DAS PS) per HB 2294 (2015 legislative session) ).

Currently, 98% of OSH employees use the system for scheduling and time tracking; OSH doctors do not utilize the system. Several customizations are underway that when implemented, will handle the complex on-call pay provisions and increase timekeeping and staffing efficiencies, allowing OSH doctors to use the system as well.

Several customizations were part of the initial implementation, including reporting to support assignment of overtime and timekeeping configuration to support pay policies unique to a public sector mental health facility. Most timekeeping customizations are due to pay polices that include payment of wages as a monthly salary while still being eligible for overtime. Statewide payment of wages for permanent employees is on a ‘monthly salary’ basis, while collective bargaining agreement provisions and FLSA rules require payment of overtime for additional hours worked.

API Healthcare’s workforce management solution plays an important role in centralized staffing of the nursing units. It is flexible enough to handle all the moving parts associated with a 24/7 healthcare environment running multiple shifts. It provides an overview of the people in the building and has advanced scheduling capabilities. The multi-user environment allows many users to make updates to schedules concurrently and updates in real-time (when one user makes a change, it’s reflected right away for other users). It also provides an avenue to track regular hours, late arrivals, callouts, assigned overtime, mandated overtime, floats, trainings, etc. This allows OSH to track reasons for low-staffing levels and corrective actions taken, which are reportable to the Joint Commission, the accrediting body for healthcare organizations.

Costs of API Healthcare system to-date include:

Implementation: One-time setup fees for system configuration and staff training.

Staffing & Scheduling Implementation $111,960 Time & Attendance Implementation $170,360 Remote Hosting Implementation $ 13,440 Equipment Warrant (first 5 years) $ 40,365 Total Implementation Costs: $336,125

Customizations: paid to-date

Mandate Reports $ 13,500 Timekeeping customizations: $196,626

Total Customizations: $210,126

Monthly Fees & Badge Reader Purchase/Repair: Monthly license subscription services (includes remote hosting) Scheduling, Time, and Remote Hosting $1,598,567 Badge reader repair or purchase $ 21,285

Total Ongoing Fees: $1,619,852 Amendment No. 1-6 difference (add to reconcile) $ 25,642

Total Investment to Date: $2,191,745

Estimated Costs for the Period Requested:

Monthly Fees: License Fees and Hosting $1,423,518 Enhancements: $ 437,473 Equipment Repair/Replacement $ 14,553

Total Estimated Costs for Period Requested: $1,875,544

The contract allows for annual renewals upon written agreement of the parties. However, the RFP indicated the contract could be renewed for up to eight (8) years post Go-Live. The current contract end date of August 25, 2019 reflects the end of the 8-year period. Therefore, OSH requests to extend the term of the contract for an additional five (5) years to August 25, 2024, allowing time to conduct research, conduct a solicitation and implement a replacement solution.

c. Proposed Contracting Procedure:

DAS PS will use the following process:

• DAS PS will issue a public notice through the Oregon Procurement Information Network (ORPIN) as required by administrative rule (OAR 125-247-0287) regarding approval of this Special Procurement No. 1142-19.

• Advertisement of this SP approval will serve as notification to the supplier community that DAS PS, on behalf of OHA, intends to amend the contract with API for continuation of the services and include a process by which any affected person can submit a protest.

• If no protests are received and sustained, DAS PS will proceed with execution of an amendment to the contract #DASPS-1388-15 for continued Maintenance, Operational Support and System Enhancements for the Workforce Management Staffing/Scheduling and Time/Attendance IT Solution for OSH for an additional five (5) years (through August 25, 2024).

• OSH intends to conduct a formal solicitation through a Request for Proposal (RFP) during the five

(5) year period of amendment.

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

• API Healthcare provides an important technical application for hospital-wide staffing and centralized timekeeping.

• Discontinuation of API comes with increased risk of inefficiencies and unsafe staffing levels. Nursing staffing reporting requirements related to ORS 441.154-157, ORS 441.166, ORS 441.173 and ORS

441.175 (disallowing mandating of nursing staff), which include unit staffing levels, root cause of staffing issues, and remediation efforts would be more difficult.

• With a contract end date in August 2019, the short time period would not be adequate to go through the procurement process, select a vendor, and migrate to the new system. IT solutions are subject to OSCIO oversight and may take up to a year or so to implement a new technology through the Stage gate process.

• Customizations authorized to address the needs of our unique environment as a public sector mental health facility would be at risk, and re-work with another vendor would come with increased cost, lost efficiencies and opening up to new risks.

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:

Contract No. DASPS-1338-15 (OHA Contract No.136276) was executed resulting from an award through a competitive solicitation process in which proposals were received and evaluated. API Healthcare received the highest overall score (813.3) and was subsequently awarded the contract. The other proposers received scores ranging from 736.4 to 792.7.

Due to the amount of time required to successfully implement this solution (in a phased approach), it is critical to the continued success of this implementation that OSH continue to proceed with planned customizations. As the contract period set in the original solicitation will not support the amount of time needed to apply these system enhancements, an extension of time is necessary. OSH estimates a remaining customization cost of $437,437 to obtain best value and functionality from the solution, as well as maximum return on investment to date. At this time, the solution is 98% implemented, pending remaining enhancements identified above. More time is also needed to develop requirements for a “go-forward” solution, then conduct sourcing and market research. Alternatively, a decision may be made in the 2023-2025 biennium to replace this solution with a WorkDay payroll module, if implemented during that time. These decisions are planned to be made over the next few years, and the market research and requirements discovery for formal procurement can be planned during that time. Investing the time and resources necessary to conduct and complete a formal procurement process before those decision points are made would not be in the best interests of the State or OHA in terms of reduced cost effectiveness and identifying a “best fit” solution for the OSH. This request for Special Procurement to extend the current contract is made in consideration of agency business needs and application of best practices available to obtain public benefit, not simply a reflection of preference in sourcing.

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:

While OSH acknowledges the need for continued evaluation of other technical solutions, the contract expires August 25, 2019, which does not provide sufficient time to procure and transition to a new system.

Additionally, current investments in in-progress customizations to increase efficiencies would be for naught.

Allowing the contract to expire will result in the need to re-design business processes and hire additional staff to manage hospital-wide scheduling and timekeeping. Previously, unit-based timekeeping resulted in increased error rates and inconsistencies in how pay policies were applied.

Transitioning to a new vendor at this time will result in a need to pay for one-time setup fees, costs to re-work customizations unique to OSH’s environment, and costs to retrain all employees on use of the new system.

It would be very costly to disentangle from the Workforce Management system at the present time, however, would make more sense after more market research is completed to determine if there are other solutions available that may be a better fit for possibly less cost, or as stated above if the State meets requirements via WorkDay payroll module.

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

Signature: e.g. Electronically in ORPIN _________________ Type Name Date

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 OSCIO conditions and requirements prior to execution of any amendments.

4. Line items identifying Monthly Fees: License Fees and Hosting costs of $1,423,518 are restricted for license fees and hosting only, and not to be used for enhancement costs. Enhancement costs are restricted to $437,473.