SP_DASOBO-125130_QuestysSystemLicensingServices_Approved.pdf

SP DASOBO-125130 Questys Solutions ECMx Document Mgt Software Page 1 of 5 Licensing & Services

REQUEST FOR SPECIAL PROCUREMENT No. DASOBO-00125130

PART A.

1. Requesting Agency Name: Department of Administrative Services (“DAS”), State Procurement Services (“SPS”) on behalf of Oregon Construction Contractors Board (“CCB”)

2. Date of Request: April 2, 2025 3. Agency Number: 10700

4. Agency Contact Name: Kim O’Neill 5. Phone: (971) 349-0114

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

7. Time Period Requested: From: July 1, 2025 To: June 30, 2035

8. Total Estimated Cost: $215,000

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

Questys Solutions ECMx Document Management Software Licensing, Maintenance, and Support Services (collectively “Licensing and Services”)

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

a. Request:

SPS—on behalf of CCB—requests approval of this Special Procurement Request DASOBO-00125130 (the “SP”) to direct award a Service Agreement to QSI 2011, Inc.—DBA Questys Solutions—(“QSI” or Questys”) for ongoing ECMx Document Management Software Licensing and Services.

b. Background:

CCB is the state licensing agency for more than 50,000 contractors who perform work on residential and nonresidential structures in the state of Oregon. Since 2001, CCB has used Questys document management software (the “system”) to store, retrieve, view, and print documents related to its licensing, enforcement, and accounting business processes and workflows. Currently, there are over 4.9 million CCB records stored in the Questys system, and it continues to grow.

In 2018, SPS—on behalf of CCB—submitted Special Procurement 1061-18 (“SP-1061-18”) requesting approval to upgrade the system from Questys Enterprise to Questys ECMx, the comprehensive platform for Questys’ enterprise document management solution. The request also included the addition of Questys’ Capture module, which automates data entry by extracting information from scanned documents using Optical Character Recognition (“OCR”) and other advanced techniques.

• September 14, 2018: DAS approved SP-1061-18.

• March 5, 2019: SPS—on behalf of CCB—issued Service Agreement 9400 (“Agreement 9400”) to

QSI.

• In accordance with the provisions of Agreement 9400, Section 15(a), the Agreement expired upon

QSI’s “Completion of Services” (i.e., QSI’s delivery—and CCB’s acceptance—of the successfully upgraded system.

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c. Current Need:

Agreement 9400, Section 9 (Support and Maintenance), states—among other provisions—that upon termination of the Agreement, CCB may obtain continued system Services through a separate Questys “Annual Support and Maintenance Plan.” As such a plan is not currently in effect, and given that the system is proprietary to Questys, SPS—on behalf of CCB—is requesting approval through this SP to directly award a Service Agreement to Questys for the required system Licensing and Services.

The following Table 10.c.1 sets out the estimated projected annual and cumulative costs for the system Licensing and Services over the 10-year Time Period requested in section 7 above. Each Annual Renewal Period has been calculated to include an estimated 5% increase over the prior year.

Table 10.c.1

Annual Renewal Period Estimated Annual Cost Estimated Cumulative Total

07/1/2025 – 06/30/2026 $19,011 $19,011 07/1/2026 – 06/30/2027 $19,961 $38972 07/1/2027 – 06/30/2028 $20,960 $59,932 07/1/2028 – 06/30/2029 $22,007 $81,939 07/1/2029 – 06/30/2030 $23,107 $105,046 07/1/2030 – 06/30/2031 $24,263 $129,309 07/1/2031 – 06/30/2032 $25,476 $154,785 07/1/2032 – 06/30/2033 $26,750 $181,535 07/1/2033 – 06/30/2034 $28,088 $209,623

Note: The Total Estimated Cost of $215,000 listed in Section 8 above, includes a ‘contingency fund’ of $5,337 for unforeseen price increases exceeding 5% (if any).

d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, SPS will issue a public notice (the “Notice”) of this SP approval on OregonBuys for a period not less than 7 calendar days.

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

3. SPS will respond to and resolve all protests of this SP, if any.

4. If no protests to this SP are received and sustained, SPS—on behalf of CCB—will proceed with direct award and negotiation of the Service Agreement as set out in Section 10.a above.

5. SPS and CCB will work with DAS Enterprise Information Services (“EIS”) and obtain its endorsement prior to executing the Service Agreement, if required.

6. Pursuant to Oregon Revised Statute (“ORS”) 291.047 and related OAR 137-045-0015, SPS will work with Oregon Department of Justice (“DOJ”) and obtain legal sufficiency approval prior to executing the Service Agreement, if required.

11. Justification for use of Special Procurement:

• Questys Documents Management Software is a proprietary sole source product, manufactured, sold and distributed exclusively by Questys Solutions.

SP DASOBO-125130 Questys Solutions ECMx Document Mgt Software Page 3 of 5 o Based on available information, Questys Solutions primarily offers its ECMx software platform and related modules directly to customers, without a publicly listed network of authorized resellers or partners.

o The company’s official website emphasizes direct engagement for product information, demonstrations, and procurement options.

• Oregon’s Public Contracting Code (the “Code”), set out in ORS Chapters 279A, 279B, and 279C, is predicated on the principles of competition. However, it has been established that the Questys Licensing and Services outlined in Section 9 (above) are only available from Questys Solutions.

Therefore, outside of ORS 279B.065 Small procurements, which limits the maximum compensation of a direct awarded contract to $25,000, there are only two procurement methods defined in statute through which the request articulated in this document can be solicited and approved:

o ORS 279B.075 Sole-source procurements o ORS 279B.085 Special procurements

• CCB uses this software to track and maintain data for over 50,000 Contractors licensed in Oregon.

The system is critical to CCB in the conduct of its daily activities and regulatory responsibilities, to Oregon Construction Contractors, and to the citizens of Oregon who rely on the 4.9+ million records currently stored in the system.

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 Questys document management system is the proprietary technology of Questys Solutions.

o System Licensing is only available from Questys Solutions.

o Other than Questys Solutions, SPS and CCB are not aware of any other services providers that can provide the necessary system Services without jeopardizing system warranties.

• CCB’s upgraded Questys system has been in place for approximately five years. At this time, CCB is not considering a system replacement, nor does it have the budget allocated for procuring a new system.

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:

• Single Source: Statutes 279B.055 through 279B.070 set forth the laws applying to Small, Intermediate, and competitive sealed (aka ‘formal’) procurements. This SP requests the authority to directly award a Service Agreement to Questys Solutions without competition, based on the findings

SP DASOBO-125130 Questys Solutions ECMx Document Mgt Software Page 4 of 5 that Questys holds proprietary ownership of the intellectual property (i.e., ECMx and the Capture Module), and that the required Licensing and Services are exclusively available from a single source (i.e., Questys Solutions).

• Questys ECMx Document Management System Investment: The average lifespan of a major IT document management system is 7-10 years, though upgrades, patches, and integrations can extend its usability. CCB’s upgraded ECMx system was fully implemented to the benefit of the State in 2020 (approx.). After just five years in service, CCB has no plans to transition away from the system, reaffirming its investment to date.

• Public Interest Advancement: The Oregon CCB document management system benefits citizens by providing a central, searchable platform for information about construction contractors, including their license status, bond information, and insurance coverage. This information can improve understanding of contractor obligations and reduce the risk of scams and fraud. Citizens can also use the system to report complaints or disputes with contractors, which supports accountability and can potentially facilitate resolution.

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:

SP DASOBO-125130 Questys Solutions ECMx Document Mgt Software Page 5 of 5

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 execution, if any.

APPROVED:

Jay R. Jackson, Procurement Policy Officer Date Department of Administrative Services

04/29/2025