SP_Attachment-1_Initial SP_Amd-1_Amd-2.pdf

SP_REQ-10700-00051320, Amd-2_Computing and Networking Supplies & Services Page 1 of 5 (formerly SP-603-12)

REQUEST FOR SPECIAL PROCUREMENT No. REQ-10700-00051320, Amendment No. 2

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 Enterprise Information Services (“EIS”)

2. Date of Request: November 7, 2023 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: December 31, 2022 To: May 13, 2025

8. Total Estimated Cost for Amendment Time Period: $20,000,000 (cost has not changed)

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 (including, but not limited to mainframe and midrange), storage, and networking.

The Supplies and Services set out in this section 9 only apply to procurement(s) under the following Master Services Agreements (“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 November 25, 2023

3 102-1555-14 / PO-10700-00018361 Presidio September 5, 2024

4 102-1552-14 / PO-10700-00018356 Dell Marketing L.P. April 30, 2024

5 102-1553-14 / PO-10700-00018362 Sirius Computer Solutions, Inc. September 5, 2024

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

a. Amendment Request:

Through this Special Procurement (“SP”) #REQ-10700-00051320, Amendment No. 2 (formerly SP- 603-12), DAS PS, on behalf of EIS (formerly Enterprise Technology Servicers or ETS), seeks:

1. To extend the SP Term through May 13, 2025, to support DAS PS’s completion of a new procurement process that will establish a new pool of MSAs for the Supplies and Services detailed in Section 9 above.

2. Retroactive approval of executed MSA amendments that extended their Terms beyond December 31, 2022 (the original SP expiration date). An approved SP Amendment Request

SP_REQ-10700-00051320, Amd-2_Computing and Networking Supplies & Services Page 2 of 5 extending the SP Term should have been obtained first before the MSA amendments were issued.

3. Approval to amend MSAs 2-5 set out in Table 9.a above and extend their Terms through May 13, 2025, making all five MSAs coterminous.

b. Background:

February 20, 2013: SP 603-12, attached hereto as 'SP_Attachment-1', approved DAS PS – on behalf of its ETS - to conduct an alternate procurement process to establish multiple MSAs for the Supplies and Services detailed in section 9 above.

October 2013: DAS PS - on behalf of its ETS (now Data Center Services or DCS ) - issued Request for Proposals (“RFP”) 102-2133-13 on the Oregon Procurement Information Network (“ORPIN”), the State’s former eProcurement system, to establish one or more MSA(s) with manufacturers and resellers of the Supplies and Services detailed out in Section 9.

Five (5) Proposers prevailed with MSA Awards (identified in table 9.a above) (“MSA Holders”).

June 22, 2016: SP-603-12, Amendment No. 1, attached hereto as ‘SP_Attachment-2’, approved adding the Office of the State CIO (“OSCIO” aka “EIS”) as an authorized purchaser under the Master Services Agreements.

Since the approval of SP-603-12, Amendment No.1:

DCS consolidated into the EIS organizational structure.

The MSAs have enabled EIS-DCS to:

o quickly and efficiently obtain customized services and equipment from the MSA Holders that are specifically aligned with the State's precise requirements.

o effectively utilize a streamlined solicitation process as set out in the MSAs, which allows MSA Holders to subcontract with smaller, independent providers. This approach supports the State’s socio-economic programs for business inclusion and diversity by promoting opportunities for disadvantaged business enterprises, minority-owned businesses, woman-owned businesses, businesses owned by service-disabled veterans and emerging small businesses.

For additional historical and background information see SP_Attachment 1 and SP_Attachement-2

c. Current Need:

The last time the MSA’s were amended to extend the Terms, the procurement professional erroneously made a misstep in not seeking an extension to the term of the SP first. When a contract is issued or amended in accordance with an approved SP, that contract becomes tethered to the SP for the duration. Although the MSAs are still in effect, the SP expired December 31, 2022, at which point the MSAs should have expired as well.

Oregon Revised Statute (“ORS”) 279A.015(2) provides that a sound and responsive public contracting system should “Instill public confidence through ethical and fair dealing, honesty and good faith on the part of government officials and those who do business with the government.” The MSA Holders worked in good faith and partnership with the State to amend the MSAs and keep them

SP_REQ-10700-00051320, Amd-2_Computing and Networking Supplies & Services Page 3 of 5 in effect through their current Terms. It is in this spirit as well as transparent and corrective action, that DAS PS – on behalf EIS - requests approval of this SP Amendment No. 2 to:

extend the term of the SP through May 13, 2025.

sync up the MSA(s) and the SP.

amend four (4) of the MSAs to extend their Terms through May 13, 2025, making all five (5) MSAs coterminous.

The modest MSA Term extensions will support the conduct of a new RFP solicitation to establish a new set of MSAs for the Supplies and Services set out in Section 9.

d. Proposed Contracting Procedure:

1. As required by OAR 125-247-0287, DAS PS will issue a public notice (“Notice”) of this approved SP Amendment #2 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 Amendment #2.

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

4. If no protests to this SP Amendment #2 are received or sustained, DAS PS will move forward with amending the MSAs as detailed in Sections 10.a and 10.c above.

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

The MSAs were established through the SP and are, therefore, tied to the SP. The MSAs cannot extend beyond the term of the SP. The only way to obtain retroactive approval for the procurement activities to date, extend the term of the SP, and obtain approval to further amend the MSAs Terms is through a SP Amendment Request. There is no other procurement method through which this can be accomplished.

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 State must possess the necessary technology to operate its state data center, which supports multiple state agencies and their clients. The MSAs provide EIS-DCS the tools it needs to quickly and efficiently procure system hardware, equipment, and services essential for the State's computing and networking needs. Extending the term of this SP, and subsequent amendment of the four (4) MSAs identified in this SP to extend their Terms as well, will provide sufficient time for the State to conduct a formal procurement process to establish a new set of MSAs for the same or substantially similar Supplies and Services set out in Section 9 above.

DAS PS estimates that it will issue the RFP on OregonBuys, the State’s current eProcurement system, in the Spring of 2024.

The RFP will be drafted to promote maximum competition possible.

The RFP will seek to issue one or more MSA awards.

All providers of the requisite Goods (Supplies) and Services set out in the planned RFP will be able to compete for an award.

SP_REQ-10700-00051320, Amd-2_Computing and Networking Supplies & Services Page 4 of 5 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:

EIS-DCS is responsible for supporting, maintaining and delivering managed information technology services including Wide Area Networking/Internet Access, Colocation and Cloud Brokering Services to eleven major Oregon state agencies including:

o Department of Administrative Services o Department of Consumer and Business Services o Department of Corrections o Department of Education o Department of Forestry o Department of Housing and Community Services o Department of Human Services o Oregon State Police o Department of Revenue o Department of Transportation o Department Veterans' Affairs

EIS-DCS also supports numerous smaller state agencies, boards and commissions, and other public entities statewide (collectively “DCS Customers”). Its services help all DCS Customers to operate at top efficiency and carry out their distinct missions for the benefit of all Oregon citizens.

Information Technology (“IT”) and the demand for IT continues to change and evolve at a rapid pace. For instance, the processing capacity of technology doubles every 18 months (approx.). The MSAs are in place to support DCS’s infrastructure and operations decision-making and its ability to quickly adapt to new and changing technologies and new and changing needs of DCS Customers.

Approval of this SP Request substantially supports and promotes the best interests of the State of Oregon, EIS-DCS, DCS Customers and all Oregonians.

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:

SP_REQ-10700-00051320, Amd-2_Computing and Networking Supplies & Services 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 MSAs Amendments, if any.

4. Upon completion of the Notice (section 1) approval applies retroactively to December 31, 2022.

APPROVED:

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