SP_REQ-DASOBO-00030542_Amd-1_OSH Pharmacy_Approved.pdf

SP_REQ-DASOBO-00030542 (formerly REQ-DASOBO-00018863), Amendment No. 1 Page 1 of 5 Omnicell Pharmacy Automation Equipment, Software, Services Master Agreement #PO-DASOBO-00004623

REQUEST FOR SPECIAL PROCUREMENT

No. REQ- DASOBO-00030542 (formally REQ-DASOBO-00018863)

Amendment No. 1

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

1. Requesting Agency Name: Oregon Department of Administrative Service, Procurement Services (“DAS PS”) on behalf of Oregon Health Authority (“OHA”), Oregon State Hospital (“OSH”) Division.

2. Date of Request: February 27, 2023 3. Agency Number: 443481

4. Agency Contact Name: Sara Stone 5. Phone: (971) 707-1658

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

7. Amendment Time Period Requested: From: May 1, 2023 To: November 30, 2032

8. Total Estimated Cost for Amendment Time Period: $10,000,000 Note: With approval of this SP Amd-1 Request, the cumulative amount approved under the SP will be $15,037,631 for procurements of new equipment under the Master Agreement.

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

Pharmacy Automation Equipment, Software and Services

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

a. Amendment Request:

DAS PS, on behalf of OHA/OSH, requests approval of this Special Procurement (“SP”) No. REQ- DASOBO-00030542 (formerly REQ-DASOBO-00018863), Amendment No. 1 (“Amd-1”) to amend Master Agreement No. PO-DASOBO-00004623 (formerly OHA-140842-17) (“Master Agreement” or “MA”) issued to Omnicell, Inc (“Omnicell” or “Contractor”), increasing the total not-to-exceed (“NTE”) Compensation an additional $10 million for procurements of new equipment.

b. Background:

• February 2011: Oregon Department of Human Services (“DHS”), on behalf of OHA/OSH, issued Request for Proposal (“RFP”) #DHS-3190-11 on the Oregon Procurement Information Network (“ORPIN”), the state’s former eProcurement system, seeking Pharmacy Automation Equipment, Software, and Services.

• December 2011: Omnicell prevailed with an award and OHA issued the Master Agreement effective December 20, 2011. Omnicell has been providing the Equipment, Software and Services since that date through a series of leases issued under the MA.

• 2021: DAS PS, on behalf of OHA/OSH, submitted SP Request #DASOBO-00018863, attached hereto as ‘SP_Attachment-1’, seeking the ability to amend the Master Agreement to:

• Extend the Term through November 30, 2032;

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• Add an NTE Compensation of $5,037,631 for procurements of new equipment under the MA; and

• Expand the scope to enable procurements of new equipment (in addition to equipment leases).

The SP was approved October 22, 2021 (see SP_Attachment-1), and Master Agreement Amendment #3 was executed 12/17/2021 reflecting the same.

For additional historical and background information see SP_Attachment-1

c. Current Need:

During 2021 and 2022 OHA staff were, to varying degrees, still diverted from normal day-to-day duties and activities in order to manage the impacts of - and safeguard Oregonians receiving OHA services through - multiple declared emergencies such as:

• Oregon’s 2021 ice storm

• excessive heat (heat wave) affecting 23 Oregon counties (2021)

• ongoing COVID-19 pandemic impacts (2021 and 2022)

• multiple state wildfires resulting in the evacuation and displacement of thousands of Oregon citizens, including the Bootleg Fire (2021), the Double Creek Fire (2022), and the Cedar Creek Fire (2022)

• Oregon’s statewide surge in respiratory syncytial virus (“RSV”) and influenza cases (2022) Given these exigent circumstances, procurements of new pharmacy automation equipment were temporarily put on hold, and the $5,037,631 approved in the original SP (SP_Attachment-1) was used to support OSH’s existing leased pharmacy automation equipment under the MA, as set out in the Excel 'Cost Sheet' attached hereto as ‘SP_Attachment-2’.

March 17, 2022, Former Governor Kate Brown issued Executive Order (“EO”) 22-03, which officially terminated the COVID-19 State of Emergency in Oregon. Although long-term management and recovery efforts are still underway, OSH has reprioritized its project to replace (leased) legacy pharmacy automation equipment. This SP Amd-1 seeks the ability to amend the MA and increase the NTE Compensation an additional $10 million for procurements of new equipment.

d. Proposed Contracting Procedure:

• As required by Oregon Administrative Rule (“OAR”) 125-247-0287, DAS PS will issue a public notice of the approved SP Amd-1 on the OregonBuys eProcurement system for a period of seven (7) calendar days.

• The public notice will include provisions that any affected party may protest the approval of the SP Amd-1.

• DAS PS will respond to and resolve protests of SP Amd-1, if any.

• If no protests to this SP Amd-1 are received and sustained, DAS PS, on behalf of OHA/OSH, will proceed with amending the Master Agreement as set out in Section 10.a above.

• Pursuant to OAR 137-045-0015, DAS PS will work with Oregon Department of Justice and obtain legal sufficiency approval prior to executing the MA amendment, as required.

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

• OSH’s mission is to provide therapeutic, evidence-based, patient-centered treatment focusing on recovery and community reintegration, all in a safe environment. Without approval of this SP Amd-1:

o OSH will be unable to procure the necessary new equipment.

o Existing legacy equipment could fail, jeopardizing OSH’s ability to provide timely pharmaceutical services to the patients it serves.

o OSH and the State could be exposed to litigation.

• With approval of the original SP (SP_Attachment-1) and execution of Master Agreement Amendment #3 in 2021, the Master Agreement became interrelated (linked) to the SP.

Therefore, the only procurement method available, through which additional funds can be amended into the Master Agreement, is a Special Procurement, or in this case, 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 Master Agreements or to substantially diminish competition for public Master Agreements because:

• The Master Agreement was awarded pursuant to a competitive procurement conducted on ORPIN, which held a roster of 40,000+ registered Suppliers.

• The original SP (SP_Attachment-1) approved:

o extending the Master Agreement Term through November 30, 2032, making it coterminous with the leases issued under it.

o amending the scope to include procurements of new equipment in addition to leasing equipment.

• Under the Master Agreement, Omincell has provided all OSH leased pharmacy equipment. OSH intends to update its pharmacy operations, replacing the (leased) legacy equipment over the next nine (9) years with new equipment that will be procured (not leased). The new and old equipment must be able to work (integrate) together for seamless delivery of OSH pharmacy services.

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:

Pharmacy automation equipment is comprised of large and complex robotics modules that support pharmacy operations by creating efficiencies and safety in the disbursement of medications to Oregonians with mental health needs. This equipment is stabilized by being mounted to adjacent walls and floors and is integrated within the OSH system across multiple shared systems.

SP_REQ-DASOBO-00030542 (formerly REQ-DASOBO-00018863), Amendment No. 1 Page 4 of 5

Replacement of this equipment with another brand of equipment would require extensive time and considerable cost for removal, installation, integration and training. This would create an exponential increase in OSH’s budget and a massive strain on internal resources, which are already constrained and at capacity after dealing with the Pandemic and other declared emergencies.

Losing access to this equipment (i.e., legacy equipment failures; inability to replace legacy equipment with same brand (Omnicell) equipment, which would introduce compatibility issues; etc.)

would cause a disruption to OSH pharmacy operations and could result in:

• Disruption of patient medication schedules or serious medication errors that may harm patients and jeopardize OSH’s ability to promote safety and stability for its patients.

• Loss or claw back of federal grant funds and other monies.

• Loss of inventory.

• OSH and the State being exposed to litigation.

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 executing the Master Agreement amendment, if required.

APPROVED:

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