SP_DASOBO-106664_ Amd-1_AASHTOWare SoftwareSvcs_Approved.pdf

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REQUEST FOR SPECIAL PROCUREMENT No.

REQ-DASOBO-00106664, Amendment No. 1

(Original SP-924-16)

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

1. Requesting Agency Name: Oregon Department of Transportation (“ODOT”)

2. Date of Request: November 25, 2024 3. Agency Number: 73000

4. Agency Contact Name: Maria Diaz 5. Phone: 503-586-8682

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

7. Amendment Time Period Requested: From: January 31, 2025 To: January 31, 2045

8. Total Estimated Cost for Amendment Time Period: $10,000,000

Note: The Original SP-924-16 approved an Estimated Cost of $8,870,000. With approval of this SP_Amd-1, the cumulative Total Estimated Cost will be $18,870,000.

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

Information technology (“IT”) professional services listed below (collectively “Services”) for existing and new AASHTOWare® software applications, modules, and products (collectively “Software”) acquired through ODOT’s Membership Agreement with American Association of Highway Transportation Officials (“AASHTO”).

IT Professional Services

• Planning

• Assessment

• Installation

• Configuration

• Customization – including Enhancements

• Implementation

• Training

• Ongoing Maintenance and Support – not including Services available under ODOT’s

Supplemental Software License Agreement(s) with AASHTO.

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

a. Amendment Request:

ODOT requests approval of this Special Procurement (“SP”) No. DASOBO-106664, Amendment 1 (“SP_Amd-1”), originally SP No. 924-16, which seeks:

1. to extend the SP Time Period an additional twenty (20) years, through January 31, 2045.

2. to increase the SP Estimated Cost an additional $10,000,000.

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3. to continue the ability to directly award Services contract(s) to MSE (Maintenance, Support, Enhancement) Contractors for existing and new Software acquired through AASHTO as available in the current AASHTOWare® Catalog.

b. Background:

FHWA – AASHTO Connection: The U.S. government began its relationship with the American Association of State Highway Engineers (now known as AASHTO) in 1914, with the goal of promoting collaboration among state highway departments. AASHTO’s role expanded over time, especially after the establishment of the Federal Highway Administration (“FHWA”) in 1967, to provide technical expertise and support for highway planning, design, construction, and maintenance. AASHTO’s relationship with the federal government grew as it became a key partner in implementing federal transportation policies, notably through its work on standards and guidelines for roadways, which helped shape the development of the U.S. interstate system and other major transportation projects. Although the federal government does not mandate states to be members of AASHTO, most choose to be members because of the influence it offers in shaping national transportation policy, standards, and best practices. Today, AASHTO represents:

• highway and transportation departments in all fifty (50) states, the District of Columbia and Puerto Rico. ODOT joined AASHTO as an active, voting member in 1922 (AASHTO Membership Agreement No 10039; ODOT internal Agreement No. 30117-01).

• all five (5) transportation modes: Air, Highways, Public Transportation, Rail and Water.

AASHTO Membership Benefits: Each state pays annual dues to AASHTO, which vary based on the size and budge of the state’s transportation department. These dues help fund AASHTO’s activities, research, and services. As a member, ODOT has access to several benefits and opportunities such as:

• participating on committees and subcommittees for a variety of initiatives, such as those dealing with highway safety, planning, engineering, funding, and environmental considerations.

• access to AASHTO’s resources, including research reports, manuals (e.g., design and construction standards), and best practice guidelines, which are critical for state-level transportation planning and project implementation.

• access to AASHTO organized events, workshops, and conferences that provide educational opportunities and foster networking between states and federal agencies.

• access to the AASHTOWare® products and services catalog (“AASHTOWare® Catalog” or “the Catalog”), which is issued each fiscal year. The 2025 FY catalog is viewable at:

https://www.aashtoware.org/wp-content/uploads/2024/05/FY-2025-AASHTOWare- Catalog_web.pdf. The process for purchasing from the Catalog is as follows:

o ODOT reviews the Catalog and selects the software products and modules it needs for the upcoming year.

o Once ODOT submits completed forms, AASHTO prepares the corresponding Supplemental License Agreement(s) (as described in the Membership Agreement) and invoices ODOT for all related fees (if any).

https://www.aashtoware.org/wp-content/uploads/2024/05/FY-2025-AASHTOWare-Catalog_web.pdf https://www.aashtoware.org/wp-content/uploads/2024/05/FY-2025-AASHTOWare-Catalog_web.pdf

SP_DASOBO-106664, Amd-1 AASHTOWare Software & MSE Services Page 3 of 7 o ODOT signs the Supplemental License Agreement with AASHTO for each selected software product and module.

SP-924-16: In December 2016, ODOT submitted Special Procurement Request No. 924-16 (“Original SP”), attached hereto as ‘SP_Attachment-1’, seeking approval to directly award and negotiate Services contracts with MSE Contractors for AASHTOWare® Software acquired through AASHTO.

Oregon Department of Administrative Services (“DAS”) approved the Original SP on March 20, 2017, for an 8-year term, which will expire on January 31, 2025.

For additional historical and background information, see SP_Attachment-1.

c. Current Need:

FHWA has specific reporting and design requirements. It is most efficient for ODOT to use software for federally funded infrastructure projects (i.e., federal-aid projects) supporting the construction, maintenance, and improvement of transportation systems that meet all FHWA reporting requirements and fully comply with AASHTO design standards, per 23 CFR part 625.

• ODOT utilizes AASHTOWare® Software because it satisfies both the FHWA reporting requirements and the necessary AASHTO design standards.

• Currently, no other software products in the open market met the full range of these standards and reporting obligations.

Each year, ODOT receives approximately $700 million in FHWA funding for construction projects on the state’s roads, including the interstate, as well as planning and engineering. To ensure continued access to these substantial federal funds, ODOT requires ongoing access to AASHTOWare® Software and related MSE Services.

During the Time Period requested in this SP_Amd-1, ODOT forecasts the following potential Software and Services acquisitions, which is not an exhaustive list:

• AASHTOWare® Project Asset Tracking Module with implementation costs estimated at $4,000,000.

• AASHTOWare® AWP GIS functionality enhancements with implementation costs estimated at $1,000,000.

• AASHTOWare® Safety Software with implementation costs estimated at $4,000,000.

• AASHTOWare® Pavement Software with implementation costs estimated at $1,000,000.

Given the upcoming expiration of the SP on January 31, 2025, and FHWA’s software design and reporting requirements for federal-aid transportation projects, ODOT needs to amend the SP to extend its term (Time Period), increase the Estimated Cost and retain the ability to directly award Services contracts to MSE Contractors.

d. Proposed Contracting Procedure:

I. Special Procurement Public Notice

1. As required by OAR 125-247-0287, ODOT will issue a public notice (the “Notice”) regarding approval of this SP_Amd-1 on the OregonBuys eProcurement system for a period of seven (7) calendar days.

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2. The Notice will include provisions that any affected party may protest the approval of this SP_Amd-1.

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

4. If no protests to this Special Procurement are received and sustained, ODOT will, during the amended SP Term, follow the selection and contracting process to acquire AASHTOWare® Software and MSE Services as described in Section 10(d)(II) below.

II. AASHTOWare® Software and MSE Services Acquisitions

ODOT will follow the AASHTOWare® Software and MSE Services acquisition process as may be modified from time to time, and the terms of its AASHTO Membership Agreement, as may be amended from time to time, and as generally described below to enter into contracts with MSE Contractors.

1. Under its AASHTO Membership Agreement, as may be amended from time to time, ODOT has and will enter into a Supplemental License Agreement with AASHTO, in accordance with the terms of its AASHTO Membership Agreement, as may be amended from time to time, for various Software products, applications or modules (or any combination thereof) that it deems necessary. ODOT may direct award and negotiate a Services contract with the MSE Contractor and developer of the Software products, applications, or modules and request certain incidental services, including, but not limited to: planning, assessment, installation, configuration, customization (including enhancements), implementation, and training and ongoing maintenance and support.

2. ODOT will establish work plans and other terms and conditions directly with the AASHTOWare MSE Contractor and ensure compliance with its AASHTO Membership Agreement, as may be amended from time to time.

3. When ODOT and the MSE Contractor have established a work plan, the MSE Contractor will submit the agreed-to work plan to the applicable AASHTOWare® Project Manager to provide courtesy notice.

4. The AASHTOWare® Software Product Task Force will review the work plan(s) to ensure conformance with Task Force guidelines, as may be modified from time to time. AASHTO task forces are temporary groups that work on specific projects or activities for AASHTO.

Members of the task force include representatives from many different state DOTs.

a. For AASHTOWare® Project Software and Services, work plans are initially reviewed by the AASHTOWare® Project Manager who determines whether the plan requires formal Task Force review under applicable Task Force guidelines. Note that Task Force guidelines may not require a formal Task Force review.

b. Plans reviewed by the Task Force result in a written determination that will be provided to both ODOT and the MSE Contractor.

5. On receipt of the written determination, if required, and any final adjustments to the work plan as may be required by the Task Force, ODOT and the MSE Contractor will execute a Services contract.

6. ODOT will work with DAS Enterprise Information Services’ (“EIS”) and obtain its endorsement before executing MSE Services contract(s) or contract amendment(s), as required.

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7. As required by Oregon Revised Statute (“ORS”) 291.047 and related administrative rules, ODOT will work with Oregon Department of Justice (“DOJ”) and obtain its legal sufficiency approval before executing MSE Services contract(s) or contract amendment(s), as required.

8. ODOT will issue amendments to existing contracts as necessary, including MSE Contract No.

B37436 issued to InfoTech, Inc., if any, in accordance with the terms of this SP, as amended, and Delegation Agreement No. 1080-20, as amended.

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

• To avoid jeopardizing the $700 million in federal funds ODOT receives annually, it must maintain continuous access to AASHTOWare® Software and MSE Services, which are exclusively available through AASHTO (a single source). Additionally, the ability to directly award multiple contracts without a competitive procurement process, as defined by statute, can only be authorized through a special procurement.

• With approval of the Original SP (SP_Attachment-1) and ODOT’s subsequent execution of the Proposed Contracting Procedure defined therein, the resulting MSE Services contracts became bound to the terms of the SP. Therefore, the MSE Services contracts cannot be amended beyond January 31, 2025, nor can ODOT issue any new MSE Services contracts after this date without first obtaining DAS approval through an amendment to the SP.

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:

• AASHTO conducts competitive procurements every fiscal year in accordance with AASHTOWare® Policies, Guidelines, and Procedures, viewable at https://www.aashtoware.org/wp-content/uploads/2021/07/Policies_Guidelines_Procedures- June-2021.pdf, to establish Software products and MSE Contractors and Services, which are published in the AASHTOWare® Catalog and made available to both AASHTO members and non-members. AASHTOWare’s procurement philosophy provides, in part:

“The procurement process for joint development services must be one which is competitive, and all potential contractors should normally be solicited through an open competitive process. It is also necessary to understand that circumstances may arise in which sole source selection of a contractor is the most prudent course and in AASHTO's best interest.”

• FHWA has specific reporting and design requirements. It is most efficient for ODOT to use software for federal-aid projects supporting the construction, maintenance, and improvement of transportation systems that meet all FHWA reporting requirements and fully comply with AASHTO design standards, per 23 CFR part 625. AASHTOWare® Software satisfies both the reporting and design standards requirements. ODOT is not aware of any other software products or providers in the open market that currently meet the full range of these obligations.

and

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(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:

These statutes (ORS 279B.055 – 279B.070) set forth the laws applying to Small, Intermediate, and competitive sealed (aka ‘formal’) procurements. Through this SP_Amd-1, ODOT seeks the continued ability to direct award multiple Services contracts to the MSE providers (contractors) solicited by AASHTO and made available to its members in the AASHTOWare® Catalog.

• AASHTO conducts competitive procurement processes in accordance with AASHTOWare® Policies, Guidelines, and Procedures to establish a pool of Software products, Services, and MSE contractors every fiscal year.

• ODOT adheres to the procurement process outlined in the AASHTOWare® Catalog and complies with the terms of its Member Agreement with AASHTO.

MSE Contractors are also the Software developers, possessing the deepest knowledge and expertise with their own products. As such, it is reasonable to expect that they are best suited to provide the Services related to the Software products and modules licensed to and used by ODOT. Furthermore, since some or all of these Software products may be proprietary, the Services must be delivered by the MSE Contractors to prevent invalidating (voiding) any warranties.

As discussed throughout this document, AASHTOWare® Software and related MSE Services satisfy the mandatory reporting and design standards requirements levied by FHWA on federal-aid projects. The risk of ODOT’s non-compliance could cost the state hundreds of millions of dollars in lost federal funds The domino affect would have existing construction projects halted, resulting in potential bridge or roadway closures, continued or worsened traffic congestion, unfinished pavements on roadways, etc.

These impacts would be far reaching to all Oregonians including, but not limited to contractors, construction supply business owners, construction workers, state employees, Oregonian transit commuters, first responders, and so on.

Approval of this SP_Amd-1 substantially promotes the public’s interests.

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:

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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 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 contract or contract amendment execution, if any.

4. ODOT must review and report any changes to the circumstances and findings that form the basis of this SP_Amd-1 at least every 5-years.

APPROVED:

Jay Jackson, Procurement Policy Officer Date DAS State Procurement Services

01/23/2025