SP-1295-21_APPROVED.pdf

SP-1295-21 Page 1 of 5

REQUEST FOR SPECIAL PROCUREMENT No. SP-1295-21

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

1. Requesting Agency Name: The Department of Administrative Services, Procurement Services (DAS PS), on behalf of the Department of Administrative Services, Business Services (DBS).

2. Date of Request: May 10, 2021 3. Agency Number: 107090

4. Agency Contact Name: Lori Nordlien 5. Phone: (971) 707-0122

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

7. Time Period Requested: From: June 30, 2023 To: January 31, 2028

8. Total Estimated Cost: $127,700

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

N. Dean Meyer and Associates, Inc. (NDMA) Budgeting System Software Licenses and Maintenance Support.

10. Request, Background and Proposed Contracting Procedure:

a. Request:

DAS PS, on behalf of DBS, requests approval of this Special Procurement (SP) request No. SP-1295-21 to amend and extend Contract No. 107-2549-11 until January 31, 2028 and to increase the not-to-exceed (NTE) by $127,700.

b. Background:

Historically, budget information and rate setting calculations are completed with Excel spreadsheets.

Reliance on these large, interlinked spreadsheets for the budget planning and service costing processes is time consuming, difficult to change because of the spreadsheets’ complexity and linkages, and requires enormous amount of rework each time a program embarks on the annual rate setting or adjustment exercises. At the end of the process, DBS has to be able to explain the rates to customers.

Data Center Services (DCS) background

For the 2013/15 biennium, DAS Enterprise Technology Services (ETS, formerly the State Data Center) implemented the FullCost® planning tool that gives management the ability to prepare their budget, set rates to the true cost of delivering services, assign internal services as service providers, and manage the business by providing the analysis tools necessary to examine profits and losses by product line. In addition, ETS purchased training from NDMA to help ETS managers implement FullCost® and achieve its entrepreneurial goals of shifting to a business-within-a-business model.

SP-1295-21 Page 2 of 5

FullCost® provides a solution to better integrate budgeting and rate setting processes. State organizations face increasing pressure to understand their costs and the demand for services. Programs spend an enormous amount of time identifying the services they provide, examining the cost that goes into delivery of those services, and calculating the rates to charge users. Compounding the process is the need to meet the federal Office of Management and Budget Circular A-87 charge back rules for determining uniform costs between governmental units. Better integration of the budgeting and rate setting process will also provide the customer agencies with a better understanding (transparency) of how the rates are set given what services are provided.

In the February 2016 Legislative Session, additional functions and staff were transferred from ETS.

Billing, Budget and Finance staff transferred to DAS Business Services (DBS) and DAS Shared Financial Services (SFS). With this change, the responsibilities, creation, calculation, and distribution of rates were transferred to DBS.

In 2019/21 DAS Enterprise Asset Management (EAM) was licensed to use Fullcost for Rate and budget development and DAS Enterprise Goods and Services (EGS) received permission to beta test their rates for 2021/23.

Contract No. 107-2549-11, issued February 1, 2011, resulted from Sole Source No. 107-2164-10 posted on the Oregon Procurement Information Network (ORPIN) on December 1, 2010. No protests were received.

Amendment No. 14 issued on December 3, 2018 extended this contract through June 30, 2023.

Current Need:

For the 2021/23 biennium starting July 1, 2021, DAS Business Services (DBS) assumed the responsibility of rate development for EGS. Permission was granted from NDMA to beta test the rate development in the Fullcost software application in 2020. Fullcost proved to be useful for EGS rate development and now DBS needs to license the software for EGS in order to continue using the application. EGS rate development practices are inconsistent across their programs and lack documentation. Implementing Fullcost for EGS will help document rate development and standardize methodologies.

FullCost licenses will be based on the current fiscal year’s budget, rather than the future years’ planned budgets.

• One-time cost for additional seats (software access) for EGS ($250 per seat).

• # of seats required is based on per million of the annual budget rounded to the next highest million.

• Annual Support services (maintenance) cost will be calculated based on the following formula:

[(total # of seats x $250)+$15,000] x 20%

NDMA Estimated Contract Value from 2022 to 2028

Date CSR PT R#

Additional Seats

(One-time) Support (Annual) Implementation/Training Total

2022 $ 18,500 $ 12,250 $ - $ 30,750 2023 $ 2,000 $ 12,650 $ - $ 14,650 2024 $ 2,250 $ 13,100 $ - $ 15,350 2025 $ 2,250 $ 13,550 $ - $ 15,800

SP-1295-21 Page 3 of 5

2026 $ 2,500 $ 14,050 $ - $ 16,550 2027 $ 2,500 $ 14,550 $ - $ 17,050 2028 $ 2,500 $ 15,050 $ - $ 17,550

Total: $ 32,500 $ 95,200 $ - $ 127,700

c. Proposed Contracting Procedure:

The planned contracting procedure is:

• DAS PS will issue a public notice on the State of Oregon’s eProcurement system now known as OregonBuys, as required by Oregon Administrative Rule (OAR) 125-247-0287, for a seven (7) calendar day period, regarding approval of the SP Request.

• Advertisement of the approved SP will include a process by which any affected person may protest the approval of SP request.

• DAS PS and DBS will respond to and resolve protests, if any. If no protests to this SP are received and sustained, DAS PS, along with DBS, will negotiate an amendment to the Contract.

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

The product is a sole-source with NDMA and was originally implemented in 2011 in the State of Oregon.

Training on the product is only available from the product developer or certified partners.

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

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

The NDMA Budgeting System product is a sole-source and was originally implemented in 2011 in the State of Oregon. Training on the product is only available from the product developer or certified partners.

The technology for this system has not changed significantly since this contract was executed.

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:

Continuing the use of the Fullcost application promotes the efficient use of staffing resources and significantly improves the quality of analysis performed that would otherwise be done manually.

Contributes to standardized reporting and methodologies, which provides transparency into the rate development process and the allocation of state funds. This promotes the public’s interest by improved usage of taxpayer dollars.

SP-1295-21 Page 4 of 5

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:

SP-1295-21 Page 5 of 5

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 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. 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:

Debbie Dennis, State Chief Procurement Officer, Date:

Department of Administrative Services

07/21/21