SP S-10700-00004184_uWork-dba Covendis_Approved~1.pdf

REQUEST FOR SPECIAL PROCUREMENT No. S-10700-00004184

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 the State of Oregon state agencies and OrCPP members.

2. Date of Request: 8/22/2022 3. Agency Number: 107090

4. Agency Contact Name: Debbie Davis 5. Phone: (971) 707-1100

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

7. Time Period Requested: From: 9/1/2022 To: 8/31/2025

8. Total Estimated Cost: N/A Price Agreement

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

• Information Technology contingent workforce and services related to vendor management

• Information Technology contingent workforce and services

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

a. Request:

The Department of Administrative Services, Procurement Services, on behalf of state agencies and ORCPP members (“Authorized Purchasers") requests approval of this Special Procurement (“SP”) Request #S-10700-00004184 to direct award a contract (“Contract”) to uWork.com dba Covendis for Information Technology contingent workforce and services and related vendor management services.

b. Background:

These services were originally made available through a National Association of State Procurement Officials (“NASPO”) cooperative agreement, Master Agreement #14PSX0338AA. The State of Connecticut (“CT”), Department of Administrative Services issued a Request for Proposal #14PSX0338 to solicit responses for Information Technology Vendor Managed Services (“Contractors”). Connecticut awarded master agreements to three Contractors to deliver an end to end technology solution. The Master Agreements may be used by members of NASPO, including state governments (including departments, agencies, institutions), institutes of higher education, political subdivisions (e.g. colleges, school districts, counties, cities), the District of Columbia, and territories of the United States.

These awarded providers have state government experience managing the information technology temporary workforce. They provide managed service provider (MSP) services, which allows states to realize an increase in overall workforce quality, speed in delivery of IT professional needs and procurement through the implementation and configuration of a web-based vendor management system (VMS).

The Department of Administrative Services, Procurement Services (“DAS PS”) elected to participate in the cooperative procurement. DAS PS, on behalf of Authorized Purchasers in Oregon conducted a second round competitive selection process and on or about October 1, 2018, awarded a Participating Addendum to one of the three NASPO awarded Contractors, uWork.com dba Covendis (“Covendis”), State of Oregon PA 9436. Covendis performs the overall program management and candidate engagements for an IT contingent workforce for Authorized Purchasers in the State of Oregon. Covendis’ responsibilities include program reporting and tracking, and candidate evaluation and selection. Covendis also provides supplier management tool(s), performance oversight, need analysis and consultation, as well as consolidated billing and help desk support.

The initial term of the NASPO Master Agreement with CT was three years, with a one-year renewal provision. One extension has already been provided by CT and CT just recently advised all Participating Addenda holders that no further extensions of the Master Agreements are allowed by CT rules.

c. Current Need:

Oregon’s participation in the NASPO IT Vendor Managed Service Master Agreements, PA #9436, will expire on 8/31/2022 and because CT cannot extend the Master Agreement, the Oregon PA cannot be further extended. NASPO and CT have encouraged Participants to explore extending their own Participating Addendums or develop other short-term solutions which may be available under their statutes to continue services. A new solicitation for CT is still under review and has not been advertised yet.

The State of Oregon, much like the rest of the country, is experiencing workforce resource constraints. The disruptions of the last few years have caused many individuals to explore options for work and as a result, the State faces a shortage of experience Information Technology staff.

Recruitments are underway but, in the meantime, the State is relying on contingent workforces.

Under the existing agreement with Covendis, the State is able to obtain the MSP services and professional IT services through Covendis’ network of providers.

DAS PS seeks approval of a Special Procurement to permit a direct award of a Contract not to exceed 36 months to Covendis to continue to provide these necessary services until such time as Connecticut completes its competitive process and awards new Master Agreements and DAS PS can enter into a new Participating Addendum with one or more of the awardees once the State of Connecticut competitive process or, in the alternative, DAS PS can complete a full blown competitive procurement for these IT services.

d. Proposed Contracting Procedure:

1. As required by Oregon Administrative Rule (“OAR”) 125-247-0287, DAS PS will issue a public notice (“Notice”) of the approved SP 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 Request.

3. DAS PS will respond to and resolve all protest(s), if any.

4. If no protests to this SP Request are received or sustained, DAS PS will proceed with directly awarding and negotiating a Contract with uWork.com, dba Covendis.

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 Contract, as required.

11. Justification for use of Special Procurement:

NASPO notified Oregon directly on August 8, 2022and advised all NASPO members that the Master Agreement for IT professional services could not be further extended under Connecticut law. Oregon does not have time to complete a procurement and enter into a new contract before the current NASPO master Agreement expires. So, conducting a Special Procurement to enter into a direct contract with Covendis is the only alternative to avoid a disruption in IT services, and is in the best interest of the state.

The current and future need for IT professional services is dire. State agency (and local entity) staff are stretched thin. Currently, there are thirty-three (33) active WOCs under the Covendis PA, with thirty-one (31) that extend past the 8/31/2022 expiration date of the current PA. In addition to that, several state agencies have, between them, twelve (12) active recruitments underway and eight (8) Work Order Contracts (WOCs) waiting for final signatures. This IT support will be lost or severely hampered unless a replacement for the Covendis PA is created.

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:

Authorized Purchasers have been working with Covendis for over three years under the current PA.

The contract with Covendis, while new, actually is an extension of the services and preserves the status quo, The Master Agreement and PA were the result of a competitive cooperative procurement conducted by CT with the follow-on selection conducted by Oregon. CT does intend to conduct a replacement competitive solicitation. Oregonintends to participate in the upcoming NASPO solicitation or conduct its own solicitation to replace these very necessary services as soon as possible.

NASPO is currently evaluating issuing a new competitive solicitation for these services. Should NASPO opt not to move forward, the State of Oregon will issue a competitive solicitation with the goal of replacing the direct award agreement within 36-months with new, competitively solicited contracts.

and

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

or

_____ (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:

DAS PS will be unable to complete the competitive procurement process and onboard a new vendor before the current PA 9436 expires. The sudden loss of these IT professional services and the MSP services Covendis provides would be devasting to information technology projects across the State.

Authorized Purchasers would incur exorbitant additional costs associated with trying to fill vacancies and/or replace existing WOC resources.

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:

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. 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:

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

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