SP_Amd-1_Attachment-1_REQ-10700-00028438_Approved.pdf

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REQUEST FOR SPECIAL PROCUREMENT No. REQ-10700-00028438

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

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

2. Date of Request: August 12, 2022 3. Agency Number: 17000

4. Agency Contact Name: Kaliska King 5. Phone: 503.798.1907

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

7. Time Period Requested: From: June 30, 2023 To: June 30, 2024

8. Total Estimated Cost: over $2,000,000

9. Title: Supplies and/or Services to be Acquired: Maintenance, Repair & Operations (“MRO”) Industrial Equipment & Supplies including:

• Janitorial Equipment & Supplies

• Sanitation Cleaning Chemicals & Supplies

• Fasteners

• Material Handling

• Plumbing

• Power Sources

• Outdoor Garden

• Lamps, Lighting, and Ballasts

• Heating Ventilation Air Conditioning (HVAC)

• Hand Tools

• Power Tools (excluding automotive related tools and products)

• Electrical

• Paint

• Security and Safety Products (does not include any Public Safety Equipment)

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

a. Request:

DAS PS requests approval of Special Procurement (“SP”) Request #REQ-10700-00028438 to amend the thirteen (13) Master Agreements (“MAs”) set out in the following Table 10.A and extend the MA Terms an additional 12-months through June 30, 2024.

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TABLE 10.A

MA Holder (“Contractor”) MA Number

Conserve-A-Watt Lighting, Inc 8501

Copper State Nut & Bolt, Co. Inc. 8494

Fastenal Company 8497

W.W. Grainger, Inc. 8496

Hilti, Inc. 8495

Sid Tool Co. dba MSC Industrial Supply Co. Inc. 8499

Noble Supply and Logistics, Inc. 8504

North Coast Electric Company 8498

Strategic Market Alliance, a Washington corporation 8503 Staples Contract & Commercial, Inc dba Staples Business Advantage 8502

Mono Machines LLC dba Supply Chimp 8505

Veritiv Operating Company 8500

Waxie Sanitary Supply 8506

b. Background:

November 2017: State of Oregon, acting through DAS PS, assumed the role of “Lead State” and issued Request for Proposal (“RFP”) # DASPS-2183-17 on the Oregon Procurement Information Network (“ORPIN”), the state’s eProcurement system at that time, soliciting MRO Industrial Equipment and Supplies for the members of the NASPO ValuePoint™ Cooperative Purchasing Program.

• NASPO ValuePoint™ is the cooperative purchasing division of the National Association of State Procurement Officials (NASPO™), which facilitates cooperative public procurement solicitations using a Lead State™ model, supported by a Sourcing Team™ comprised of multiple state procurement representatives and subject matter experts.

• Through the Lead State™ model, the buying power of all 50 states is leveraged to provide high-value competitively sourced, cooperative contracts (Master Agreements).

• Participating Entities execute Participating Addendums (“PAs”) against the Master Agreement, which binds the contractor and the Participating Entity to the terms and conditions of the Master Agreement.

• Participating Entities include state agencies, higher education institutions, political subdivisions, and in some states, non-profit organizations.

Thirteen (13) MAs, executed in 2018, resulted from RFP DASPS-2183-17 as set out in Table 10.A above.

Through NASPO ValuePoint™, 153 Participating Addendums have been executed against the (13) MAs to date. The cumulative spend under the (13) MAs between 2018 to 2022 is $3.15 billion.

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The MAs will expire June 30, 2023.

New Procurement Effort Underway:

March 2022: The Sourcing Team, comprised of six (6) states, started gathering information on the changing markets to start drafting a new solicitation.

May 9, 2022: The Lead State (Oregon) Contract Administrator changed.

June 2022: The Sourcing Team, Lead State and NASPO ValuePoint™ conducted (13) annual supplier meetings.

July 2022 - ongoing: The Sourcing Team is conducting market research to be used in drafting the next solicitation, including but not limited to sustainability product research, data collection, and market research.

c. Current Need:

The market for MRO Industrial Equipment and Supplies remains in a state of flux due to COVID-19 pandemic repercussions and various manufacturer shortages including labor and materials. This SP Request seeks additional time for the Lead State (Oregon) and the Sourcing Team to thoroughly research the requisite commodities and draft a new competitive solicitation. The research will specifically look at changes to shipping, pricing, and product categories.

To ensure Participating Entities have continued access to needed MRO Industrial Equipment and Supplies during the research and re-procurement processes, DAS PS is requesting a 12-month extension of the MAs set out in Table 10.A above. This limited term extension will:

• support the new (replacement) procurement efforts currently underway and provide enough time to complete the NASPO ValuePoint™ Board approval process, solicitation process,, negotiations and execution of a new set of MAs.

• provide sufficient time for Participating Entities to execute new Participating Addendum(s) in order to leverage the new (replacement) MAs. Each state has different processes for establishing Participating Addendums, which means the timelines to get them executed and in place will vary from state-to-state.

d. Proposed Contracting Procedure:

• As required by Oregon Administrative Rule (“OAR”) 125-247-0287, DAS PS will issue a public notice (“Notice”) of the approved SP Request on the OregonBuys eProcurement system for a period of seven (7) calendar days.

• The Notice will include provisions that any affected party may protest the approval of the Special Procurement.

• DAS PS will respond to and resolve all protest(s), if any.

• If no protests are received and sustained, DAS PS will amend the MAs as set out in Section 10.a above.

• Pursuant to OAR 137-045-0015, DAS PS will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the MA amendments, if required.

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

• Internal DAS PS staffing changes delayed the procurement process seeking to establish a new (replacement) set of MAs for (MRO Industrial Equipment and Supplies. The existing (13) MAs must remain in place to support the 153 current Participating Entities until such time as DAS PS (as the Lead State) can complete market research activities, draft the new solicitation, navigate through the procurement process, and execute a new set of MAs.

• Once the new set of MAs are executed and in place, Participating Entities will need time to draft, negotiate, and award Participating Addendums against each of the new MAs. Each state has different procedures and time frames for this process.

• The Lead State (Oregon) and the Sourcing Team need additional time to rigorously research the causal sequences and impacts, both existing and projected, for each commodity including price fluctuations, which are impacted by labor and resource fluctuations, which impact manufacturing schedules and shipping lead times. This data is essential in drafting a comprehensive and effective solicitation.

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:

Existing (13) MAs:

• The MAs were established through an open, competitive procurement process in accordance with Oregon statutes and administrative rules.

• RFP #DASPS-2183-17 was advertised on ORPIN, which held a roster of 40,000+ registered Suppliers, and was publicly noticed on NASPO ValuePoint’s website. Further, the RFP contemplated multiple awards and MA Terms up to 5-years. Combined, this would have sufficiently generated maximum interest in the vending community.

• The MAs are still in effect through June 30, 2023. This SP Request seeks a 12-month extension to each MA Term, which should provide sufficient time to complete the new procurement effort underway.

New Procurement Effort Underway:

• DAS PS estimates issuing the new RFP Q4 2023 or sooner.

• The new RFP will be publicly noticed on both NASPO ValuePoint’s website and OregonBuys.

• The RFP will be structured to foster maximum competition and contemplate multiple awards with 5-year maximum MA Terms.

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:

Supply chain disruptions and labor shortages for MRO Industrial Equipment and Supplies are raising costs and limiting manufacturers’ ability to meet demand. Understanding current market dynamics, including key trends (and projections) in specific subsectors, is critical to developing a sound solicitation that will support the needs of Participating Entities. The collective spend of $3.15 Billion under the existing (13) MAs by 153 Participating Entities over the last four years certainly demonstrates the ongoing, nationwide need for these good and services.

The current procurement effort underway (detailed in Section 10.b and 12.a above) has been impacted by unanticipated, internal resource challenges and MRO Industrial Equipment and Supplies production fluctuations, both of which have delayed and extended the new procurement timeline. A Special Procurement is the only sourcing method available through which the existing (13) MAs can be amended for the additional time necessary to support:

1. uninterrupted, nationwide Participating Entity access to MRO Industrial Equipment and Supplies.

2. completion of DAS PS’ ongoing procurement effort, which will establish a new (replacement) set of

MAs.

3. Participating Entities through their individual Participating Addendum processes relative to the

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 OregonBuys. Agency may elect to attach a signed Request.

Signature: e.g. Electronically in OregonBuys _________________ Type Name: 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. 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:

Kelly Mix, State Chief Procurement Officer Date Department of Administrative Services

REQUEST FOR SPECIAL PROCUREMENT No. REQ-10700-00028438