SP_REQ-DASOBO-00050673_Amd-1_StandalonePortaleAVS_Approved.pdf

SP_REQ-DASOBO-00050673, Amd-1 (formerly SP-1049-18) Page 1 of 5 Stand-alone Portal & eVAS

REQUEST FOR SPECIAL PROCUREMENT No.

REQ-DASOBO-00050673, Amendment No. 1

(formerly SP-1049-18)

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

1. Requesting Agency Name: Oregon Department of Administrative Services, Procurement Services (“DAS PS”) on behalf of Oregon Department of Human Services (“ODHS”)

2. Date of Request: 11/29/2023 3. Agency Number: 10000

4. Agency Contact Name: Marc Monetti 5. Phone: (971) 301-0760

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

7. Amendment Time Period Requested: From: January 1, 2024 To: December 31, 2026

8. Total Estimated Cost for Amendment Time Period: $3,545,100

Note: The current Contact maximum not-to-exceed compensation (“NTE”) is $4-million. With approval of this SP Amd-1 and execution of the next, anticipated Contract Amendment (Amendment #4), the cumulative Contract NTE will be $7,545,100.

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

Stand-alone Portal and ongoing electronic Asset Verification Services (“eAVS”) that meet the federal Centers for Medicare & Medicaid Services (“CMS”) requirements.

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

a. Amendment Request:

Through this Special Procurement (“SP”) #REQ-DASOBO-00050673 (formerly SP-1049-18), Amendment #1 (“Amd-1”) Request DAS PS, on behalf of DHS, seeks to amend Contract #PO- 10700-00028094 (formerly DHS Contract #158352) issued to Public Consulting Group, Inc.

(“Contractor” or “PCG”) as follows:

1. Extend the Term for three (3) years through December 31, 2026; and

2. Increase the maximum not-to-exceed compensation an additional $3,545,100. The following Table 10.a.1 provides a breakdown of the estimated Annual Fees for the 3-year Term requested.

TABLE 10.a.1

Service 2024 2025 2026

Monthly AVS Fee $ 293,700 $ 293,700 $ 293,700 AVS Additional Transaction ($5.22 over 3,500 transactions) $ 576,000 $ 576,000 $ 576,000

Monthly Property Data / LexisNexis $ 84,000 $ 84,000 $ 84,000 Lexis Nexis Additional Transaction ($2.10 over 3,500 transactions) $ 228,000 $ 228,000 $ 228,000

Total $ 1,181,700 $ 1,181,700 $ 1,181,700

SP_REQ-DASOBO-00050673, Amd-1 (formerly SP-1049-18) Page 2 of 5

b. Background:

In 2018, ODHS submitted Special Procurement #1049-18, attached hereto as ‘SP_Attachment-1’, seeking approval of a bifurcated procurement process:

1. To direct award and negotiate a contract with PCG; or

2. To conduct an expedited procurement process if any other firm(s) demonstrated equivalent or better capacity than PCG to deliver the Stand-alone Portal and eAVS within the mandated timeframe.

The State Chief Procurement Officer (“CPO”) approved this Special Procurement Request July 19, 2018.

During the mandatory 7-day Public Notice posting of the approved SP-1049-18, competition was determined to exist. Accordingly, ODHS issued a limited recipient, expedited Request for Proposal (“RFP”) to PCG and Softheon, Inc. for the provision of a broad range of services related to implementation of a Stand-Alone Portal and eAVS, compliant with federal regulations and CMS guidelines. The purpose of the Stand-Alone Portal and eAVS was (and remains) to:

identify real property, and liquid assets held at various financial institutions by State’s Medicaid aged, blind, and disabled applicants; and enable ODHS to streamline the eligibility determination process and ease burdens on applicants and eligibility workers.

PCG prevailed with an award. The Contract was issued October 24, 2018, and the solution was fully integrated into ODHS’s existing ‘ONE’ (Oregon eligibility) system; the information technology system it uses to determine eligibility for certain State of Oregon health and human services benefit programs. The Contract has been amended three times to date.

For additional historical and background information see SP_Attachment-1

c. Current Need:

The Contract will expire on December 31, 2023. Through this SP Amd-1 Request, ODHS seeks to amend the Contract to extend the Term 3-years and increase the maximum not-to-exceed compensation for the related annual fees. The requested extension will maintain the Stand-alone Portal and eAVS services while ODHS completes a new procurement process currently underway.

d. Proposed Contracting Procedure:

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

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

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

4. If no protests to this SP Amd-1 are received or sustained, DAS PS – on behalf of ODHS - will proceed with amending the Contract as set out in Section 10.a above.

5. DAS PS will obtain EIS endorsement before executing the next Contract Amendment #4.

6. 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 Contract Amendment, as required.

SP_REQ-DASOBO-00050673, Amd-1 (formerly SP-1049-18) Page 3 of 5

11. Justification for use of Special Procurement:

Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

This SP Amd-1 will support uninterrupted services, which are mandated by 42 U.S.C. 1396w, while a new procurement effort is undertaken.

If this SP Amd-1 Request is not approved and the Contract expires December 31, 2023, ODHS will be out of compliance with federal law, and specifically the requirements under 42 U.S.C.

1396w as well as CMS guidelines that require states to have an electronic AVS in place for purposes of determining and redetermining Medicaid eligibility for aged, blind, and disabled individuals, including obtaining information directly from financial institutions. Failure to meet the federal requirements may result in penalties to ODHS’s Federal Medical Assistance Percentage (“FMAP”). FMAPs are the percentage rates used to determine the government’s share of expenditures and the matching funds rate for states or local governments, which are allocated annually to certain medical and social service programs in the USA.

In the absence of an eAVS, the financial eligibility determination would require manual financial asset verification reliant on documentation submitted by applicants. A manual process would significantly increase the administrative burden on applicants and ODHS resources, add several steps to processing activities, and expand the time requirements for benefit determinations. A manual process could also lead to insufficient asset information available to eligibility workers which could increase the possibility of inaccurate eligibility determinations.

The Contract resulted from approved SP #1049-18 (SP_Attachment-1) and is, therefore, tied to the SP for the life of the Contract. The only procurement method available through which the Contract can be amended as described in this SP Amd-1, is an amendment to the original, approved 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:

The Contract was established through SP-1049-18, which enabled providers of equal or better Goods and Services to compete for an award through an approved, expedited RFP process.

The 3-year Contract Term extension will maintain the existing Stand-alone Portal and eAVS, and support ODHS’s completion of a new procurement process currently under way.

o ODHS has commenced requirements gathering and development activities.

o The solicitation will be drafted to encourage maximum competition possible.

o All providers of the requisite Goods and Services will have the opportunity to compete for an award.

o The opportunity (RFP) is estimated to be issued on OregonBuys Q4 2024 or sooner.

and

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

SP_REQ-DASOBO-00050673, Amd-1 (formerly SP-1049-18) Page 4 of 5 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:

Approval of this SP Amd-1 Request supports:

ODHS’s compliance with federal regulations and CMS guidelines that require the use of

AVS.

Continued timely and efficient Medicaid Eligibility processing for applicants.

ODHS business continuity while allowing completion of a new procurement process currently being developed.

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:

SP_REQ-DASOBO-00050673, Amd-1 (formerly SP-1049-18) Page 5 of 5

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 amendment execution, if any.

APPROVED:

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