SP_REQ-DASOBO-00028496_Employee Engagement Tool Subscription_Approved.pdf

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REQUEST FOR SPECIAL PROCUREMENT No. REQ-DASOBO-00028496

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

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

2. Date of Request: 8/17/2022 3. Agency Number: 73000

4. Agency Contact Name: Diana Koppes 5. Phone: 503-798-2541

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

7. Time Period Requested: From: 10/29/2022 To: 10/29/2023

8. Total Estimated Cost: $71,925

Note: The current Contract Maximum Not-to-Exceed (“NTE”) Compensation is $93,500. With approval of this Special Procurement (“SP”) Request No. REQ-DASOBO-00028496 the cumulative Contract Maximum NTE Compensation will be $165,425.

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

Employee Engagement Tool Subscription and Professional Services (collectively “Services”)

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

a. Request:

ODOT requests approval of this Special Procurement (“SP”) Request #REQ-DASOBO-00028496 to reinstate and amend Contract B38149 (“Contract”) issued to Qualtrics, LLC (“Qualtrics” or “Contractor”) as follows:

1. Reinstate the Contract as of October 29, 2022.

2. Extend the Contract Term for one (1) additional year through October 29, 2023; and

3. Increase the Maximum NTE Compensation an additional $71,925.

In the interest of transparency, this Special Procurement also seeks to clarify the procurement process utilized to establish the Contract, which did not fully comply with the requirements of Oregon Administrative Rule (“OAR”) 125-247-0270, Intermediate Procurements.

b. Background:

ODOT is organized into four functional areas:

• Operations

• Revenue, Finance and Compliance

• Government and External Relations

• Social Equity

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The divisions and sections within these functional areas work across divisional boundaries, operating together as ‘One ODOT’ to provide better solutions and ensure alignment in its work. Part of the alignment is driven by ODOT’s Strategic Action Plan (the “Plan”), which prioritizes ODOT’s service delivery and operations.

The 2021-2023 Plan, approved by ODOT’s Leadership Board (i.e., agency director, assistant director, division administrators), was distributed to ODOT’s Workforce Council for implementation of work environment, leadership development and employee engagement recommendations. This work, which is still ongoing, requires assessment tools to gather data through:

• annual employee engagement surveys

• leader competency baselining assessments

• ongoing leader competency evaluations

The data obtained from employee surveys and leader assessments is then used to inform ODOT employee and leader development efforts and to measure program impacts.

When the 2021-2023 Plan became operational, ODOT did not have an assessment tool to support the workforce recommendations set out therein and conducted a type of Request for Quotes (“RFQ”) process.

• RFQ #34582 was emailed to three (3) qualified providers of assessment tools.

• Two (2) Quotes were submitted and evaluated in accordance with the evaluation criteria set out in the RFQ.

• As the highest scored Quoter, Qualtrics prevailed with an award and Contract B38149 was issued for a 1-year term, 10/29/2021 – 10/29/2022, and a Maximum NTE Compensation of $93,500.

The RFQ was erroneously not posted on the State’s eProcurement system (formerly ORPIN, currently OregonBuys) or any other Electronic Procurement System approved by the State Chief Procurement Officer, as required in OAR 125-247-0270 (2)(e).

During the performance of the Contract, ODOT has experienced several staff turnovers including the roles of Contract Administrator and Project Manager. Consequently, this delayed ODOT’s conduct of a new procurement process for assessment tools and Services, which is now in progress. ODOT’s Leadership has continued need for the existing Services until such time as it completes the formal procurement process currently underway, which anticipates awarding a new contract with a 5-year term.

c. Current Need:

Contract expiration is imminent (October 29, 2022). This SP Request seeks to extend the existing Contract Term one additional year, during which ODOT will conduct a formal Request for Proposals (“RFP”) procurement process. Solicitation (RFP) drafting activities are already underway. ODOT anticipates issuing the RFP on OregonBuys in Q4 2022.

d. Proposed Contracting Procedure:

1) ODOT will issue a public notice on OregonBuys for a period of seven (7) calendar days, as required by

OAR 125-247-0287, regarding approval of this Special Procurement.

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

Special Procurement.

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3) Oregon Department of Administrative Services, Procurement Services (“DAS PS”), working with ODOT, will respond to and resolve protests, if any.

4) If no protests to this Special Procurement are received and sustained, ODOT will proceed with reinstating and amending the Contract as set out in Section 10.a above.

5) ODOT will work with DAS Enterprise Information Services (“EIS”) and obtain its endorsement prior to executing the Contract amendment, if required.

6) Pursuant to OAR 137-045-0015, ODOT will work with Oregon Department of Justice (“DOJ”) and obtain its legal sufficiency approval prior to executing the Contract amendment, as required.

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

• The Qualtrics Employee Engagement Tool supports the efforts of ODOT’s Workforce Council to implement the work environment, leadership development and employee engagement recommendations set out in the 2021–2023 Plan. Losing access to the important data captured by and reported through this electronic Tool would have ODOT staff revert back to manual processes, which is neither efficient nor realistic given ODOT’s current workforce of approximately 5,000.

• The Contract was solicited - and issued - for a maximum Term of 1-year. The only way to amend the Contract Term for additional time beyond October 29, 2022 and increase the Maximum NTE Compensation is through an approved Special Procurement process.

• The 1-year Contract Term extension sought in this SP Request will support the timely completion of the outcomes ODOT’s Leadership has identified in the 2021-2023 Plan while the formal procurement process, currently underway, can be completed.

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:

• ODOT is currently developing a new, formal solicitation (RFP) which will seek Employee Engagement Tool Subscription and Professional Services

• The RFP will be structured to encourage maximum competition to the extent possible. All providers of the requisite Survey Tools and Services will be able to compete for a contract.

• The RFP will be issued on OregonBuys in Q4 2022.

• The resulting Contract will be issued for a Term up to 5-years, at minimum.

• Qualtrics implemented the survey platform currently used by ODOT and created a dashboard customized to ODOT’s requirements for the conduct of surveys and assessments. It is unlikely that a different contractor would be able to step in to provide seamless, uninterrupted services while ODOT completes the formal, competitive procurement process currently underway.

• An award of a “bridge contract” for a term less than 1-year with no opportunity for follow-on Services may not be appealing to other survey platform providers.

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:

This Special Procurement Request supports the public interest through employee engagement and manager development, which is crucial to the unified performance of the agency as a whole (One ODOT). The data collected through the Qualtrics survey tool under the existing Contract directly supports milestone criteria established in the agency's 2021 – 2023 Strategic Action Plan under its Equity priorities.

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: _______________________________________________8/26/22______________________ 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. 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. EIS Compliance. Authorized Agency shall comply with all Enterprise Information Services (“EIS”) conditions and requirements prior to contract amendment execution, if any.

4. Retroactive Approval. Upon completion of the Notice (section 1) approval applies retroactively to October 29, 2022.

APPROVED:

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