SP-DASOBO-62629_NMTFishSuppliesSvcs_ODFW_Approved.pdf

SP_DASOBO-00062629_NMT Fish Tagging Supplies & Services Page 1 of 6

REQUEST FOR SPECIAL PROCUREMENT No. REQ-DASOBO-00062629

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 Oregon Dept. of Fish and Wildlife (“ODFW” or “Agency”)

2. Date of Request: February 14, 2024 3. Agency Number: 10700

4. Agency Contact Name: Nancy A. Doll 5. Phone: 971-349-2086

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

7. Time Period Requested: From: May 1, 2024 To: March 31, 2032

8. Total Estimated Cost: $8,000,000 (est. at $1,400,000 annually)

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

High Tech Fish and Aquatic Animal Tagging Supplies and Services - including the following (collectively “Supplies and Services”):

• Coded Wire Tagging and Recovery Equipment

• AutoFish Systems

• Visual Implant Tagging Equipment

• Related Supplies and Consumables

• Equipment Upgrade and Repair Services

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

a. Request:

DAS PS on behalf of ODFW requests approval of this Special Procurement Request #DASOBO-62629 (the “SP”) to directly award and negotiate an Agency-specific Price Agreement (the “PA”) with Northwest Marine Technology, Inc. (“NMT”) for the Supplies and Services outlined in Section 9 above.

b. Background:

ODFW’s mission is to safeguard and improve Oregon’s fish and wildlife, along with their habitats, for the benefit and enjoyment of current and future generations. Operating under Oregon Revised Statute (“ORS”) 506.036, ODFW protects, preserves, propagates, cultivates, develops and promotes all fishes under its jurisdiction, including regulating harvests and enhancing fish populations through habitat improvement. Tagging hatchery fish, including Chinook and Coho salmonoids, as well as other species such as native trout, is crucial for protecting and enhancing Oregon’s native fish. It also aids in tracking harvest and survival rates in the state’s streams, rivers, lakes, and the Pacific Ocean.

It is acknowledged that fish do not adhere to state borders and often traverse long distances, crossing at least one state border, if not many. To coordinate the protection and propagation of fish, Oregon participates in the federal interstate cooperative ‘Pacific States Marine Fisheries Commission’ (“PSMFC”), which aims to support policies and actions for the conservation, development, and management of fishery resources in California, Oregon, Washington, Idaho, and Alaska (“Member

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States”). PSMFC operates as a neutral party and provides multiple services to Member States and other organizations including:

• Providing for collective participation by the Pacific States to work on mutual concerns.

• Serving as a forum for discussion regarding Pacific coastal vital fisheries resources.

• Working for coast-wide consensus in cooperation with state and federal authorities.

• Addressing issues that fall outside state or regional management council jurisdiction.

• Acting as a primary contractor on grants and projects for states and other organizations.

• Dispersing monetary assets from the variety of federal, state, and other resources.

• Coordinating research and management projects related to interstate fisheries and making these data available.

• Participating as a non-voting member of the Pacific Fishery Management Council and the North

Pacific Fishery Management

Article VII of the PSMFC Compact Document, viewable at https://www.psmfc.org/resources/publications-maps-2/psmfc-compact, provides in part “The fisheries research agencies of the signatory States shall act in collaboration as the official research agency of the Pacific Marine Fisheries Commission.” One such collaboration is the use of coded wire fish tags, which is also utilized by British Columbia. Coded wire tags (“CWTs”) are produced as a spool of wire.

Individual tags are cut from the spool, each measuring 1.1 mm in length x 0.25 mm in diameter and are marked with rows of numbers denoting specific batch or individual codes. CWTs are injected into fish using a tagging system, primarily NMT’s ‘AutoFish System’. This tagging method allows for coordinated fish tracking among the Pacific Coast fisheries and the collection of data for:

• Resource Management: fish stock distribution and contribution to the various fisheries coastwide; harvest management; protection of threatened and endangered species.

• Fish Hatchery Evaluations

• Various Studies and Research Projects

PSMFC Member States use CWTs to mark hatchery lots of Chinook and Coho Salmon, as well as various types of trout, which are then released. The majority of fish marking (aka tagging) operations utilize automated fish sorting, tagging and fin marking technologies such as NMT’s ‘AutoFish System’; a mobile 5th wheel trailer equipped with computers and digital imaging to sort fish by size categories. The tags are subsequently sampled at various ocean and freshwater fisheries and hatcheries and recovered from various spawning locations. The data recovered from CWTs are made available to all fishery management agencies, Member States and Canada in the on-line ‘Regional Mark Information System’ (“RMIS”), which is hosted by PSMFC. The RMIS query system is viewable at: http://www.rmpc.org.

CWTs and the related marking equipment (Supplies) outlined in Section 9 above are manufactured solely by NMT as confirmed in the ‘Sole Source Letter’ attached hereto as ‘SP_Attachment-1’. ODFW has standardized on these NMT Supplies for 20+ years which meet the requirements for ‘Hatchery Record Keeping’ set out in Oregon Administrative Rule (“OAR”) 635-007-0547. ODFW’s continued use of NMT Supplies and Services will ensure continuity among PSMFC Member States and British Columbia in conserving, developing, and managing Pacific Coast fishery resources.

c. Current Need:

For the past 24-years, ODFW has consistently procured NMT Supplies and related Services under price agreements established by DAS PS on its behalf, as outlined in Table 10.c.1.

https://www.psmfc.org/resources/publications-maps-2/psmfc-compact http://www.rmpc.org/

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Table 10.c.1 NMT Price Agreements History

Price Agreement No. Term

0113 7/12/2000 – 7/11/2006

9191 3/10/2004 – 3/9/2007

6825 12/14/2006 – 12/13/2011

1512 12/22/2011 – 6/21/2024

As confirmed by NMT (SP_Attachment-1), the Supplies and Services sought through this SP are proprietary and are solely manufactured and distributed by NMT.

• Upgrades and repair Services for ODFW’s existing inventory of NMT equipment are only available from NMT.

• Ongoing use of NMT equipment and AutoFish Systems, including existing and new procurements of Supplies and Services, is essential for maintaining consistent and accurate sampling across the PSFMC Member States and British Columbia.

PA 1512 will expire on June 21, 2024. This SP Request seeks the ability to direct award and negotiate a new price agreement with NMT for the Supplies and Services specified in Section 9 above.

The estimated expenditure for Supplies and Services for the period of 2017-2032 is shown in Table 10.c.2 below. Between 2017 and 2020, the average annual expenditure increase was 26%, driven by new product acquisitions. Following a period of slowed growth, the estimated projected spend was calculated to increase 7% annually based on the last three years of ODFW spending.

Table 10.c.2 Estimated Expenditure

Fish Tagging Supplies and Services Vendor Year Agency Annual Spend Total Spend Spend % increase Projected Annual Spend Total Projected Spend Projected % Increase

NMT 2017 ODFW $ 164,856.60

NMT 2018 ODFW $ 704,161.65 $ 869,018.25 23%

NMT 2019 ODFW $ 969,010.75 $ 1,838,029.00 27%

NMT 2020 ODFW $ 753,087.85 $ 2,591,116.85 28%

NMT 2021 ODFW $ 875,214.00 $ 3,466,330.85 13%

NMT 2022 ODFW $ 909,574.50 $ 4,375,905.35 4%

NMT 2023 ODFW $ 960,363.60 $ 5,336,268.95 5%

NMT 2024 ODFW $ 1,027,589.05 $ 6,363,858.00 7%

NMT 2025 ODFW $ 1,099,520.29 $ 7,463,378.29 7%

NMT 2026 ODFW $ 1,176,486.71 $ 8,639,864.99 7%

NMT 2027 ODFW $ 1,258,840.78 $ 9,898,705.77 7%

NMT 2028 ODFW $ 1,346,959.63 $ 11,245,665.40 7%

NMT 2029 ODFW $ 1,441,246.80 $ 12,686,912.20 7%

NMT 2030 ODFW $ 1,542,134.08 $ 14,229,046.28 7%

NMT 2031 ODFW $ 1,650,083.47 $ 15,879,129.75 7%

NMT 2032 ODFW $ 1,765,589.31 $ 17,644,719.05 7%

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d. Proposed Contracting Procedure:

1. As required by OAR 125-247-0287, DAS PS will issue a public notice regarding approval of this SP Request on the OregonBuys eProcurement system for a period of seven (7) calendar days.

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

3. DAS PS will respond to and resolve all protests, if any.

4. If no protests to this approved SP Request are received or sustained, DAS PS, on behalf of ODFW, will direct award and negotiate a new Price Agreement with NMT as set out in Section 10.a above.

5. 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 new Price Agreement, as required.

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

ODFW has acquired an inventory of NMT equipment (Supplies) through DAS-issued price agreements, which must be maintained and, at times, upgraded and repaired.

• Only NMT can provide upgrade and repair Services for its proprietary products.

• ODFW has, to a large degree, standardized on the NMT Supplies set out in Section 9 above. Efficient utilization of existing Supplies requires the acquisition of compatible Supplies and Services, which are only available from one source, NMT.

• As a Member State of PSFMC, it is important for ODFW to maintain consistency in fish marking processes and data gathering with other Pacific Coast Member States, including British Columbia.

• Although similar products are available in the open market, none can automatically remove the adipose fin from juvenile fish using specialized equipment like NMT’s. All other types of fish tags available in the open market must be removed manually.

• In its ‘Sole Source Letter’ (SP_Attachment-1), NMT provides in part “…to the best of our knowledge, we are the sole producer of this type of tagging and fish handling technology in the world.”

• There are two procurement methods available through which Sole Source Procurements can be conducted:

o ORS 279B.075 and OAR 125-247-0275 Sole-Source Procurements.

o ORS 279B.085 and OAR 125-247-0287 Special Procurements.

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:

• According to ODFW’s ‘Fish Propagation Annual Report 2022’ (the “Report”), viewable at https://www.dfw.state.or.us/fish/hatchery/docs/2022%20Fish%20Propagation%20Annual%20Report.pdf, its "Fish ID Section program operates and maintains 9 mobile marking trailers [NMT AutoFish Systems] including their respective electronic sorters, tag injectors, and quality control devices.

In 2022, over 40 million Oregon hatchery fish were fin clipped, with 6.6 million of those fish also tagged with a CWT.” Manually tagging over 6 million fish is impractical, necessitating ODFW’s use of highly automated processes and equipment.

• For over 20 years, ODFW has procured NMT Supplies worth an estimated $25 million under price agreements established by DAS PS on its behalf.

https://www.dfw.state.or.us/fish/hatchery/docs/2022%20Fish%20Propagation%20Annual%20Report.pdf

SP_DASOBO-00062629_NMT Fish Tagging Supplies & Services Page 5 of 6 o ODFW lacks the budget to replace its existing NMT equipment, and it wouldn’t be practical to do so since NMT is the exclusive producer of this technology worldwide including:

CWTs AutoFish System Visible Implant Elastomer (“VIE”) Tagging System Visible Implant Alphanumeric Tag

• The Supplies and related Services outlined in Section 9 above are proprietary to NMT, manufactured exclusively by NMT, and available only from NMT (see SP_Attachment-1). This includes repair parts and Services.

and

__X__ (b)(i) will result in substantial cost savings to the contracting agency or to the public because:

The cost of replacing the current equipment owned by the State of Oregon would be substantial.

There is an estimated $25,000,000.00 worth of NMT equipment currently in use by ODFW.

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:

• ODFW has made a substantial investment in NMT equipment (Supplies) including CWTs and CWT Recovery Equipment, AutoFish Systems and VIE Tagging Systems, as well as related supplies and repair parts. Maintaining this equipment and the monetary investment to date demonstrates good stewardship of public funds.

• Article VII of the PSMFC Compact Document states, in part, "The fisheries research agencies of the signatory States shall act in collaboration as the official research agency of the Pacific Marine Fisheries Commission.” Accordingly, PSMFC Member States and British Columbia utilize the same CWT, readers and reporting system software. Maintaining this continuity:

o upholds the mandates of the Compact.

o supports cohesive fish tagging and fish propagation processes among Member States.

o supports the retrieval and dissemination of coherent data, which is reported and shared among the Member States and British Columbia. This data aids ODFW and the Member States in regulating endangered fish species, fish propagation, and enhancement of fish populations and habitats, which substantially promotes public interests.

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 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. 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:

Jay Jackson, Procurement Policy Officer Date Department of Administrative Services

05/19/2024