Special_Procurement_170-1407-23_SIGNED.pdf

Special Procurement 170-1407-23 Page 1 of 2

REQUEST FOR SPECIAL PROCUREMENT No. SP – 170-1407-23

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

1. Requesting Agency Name: Oregon State Treasury

2. Date of Request: 4/27/2023 3. Agency Number: 17000

4. Agency Contact Name: Josh Woodmansee 5. Phone: 503-378-6785

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

7. Time Period Requested: From: 10/1/2023 To: 9/30/2030

8. Total Estimated Cost: $650,000.00

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

Data Circuit, Offsite Backups for Disaster Recovery and Business Continuity, and BlackRock Connectivity

10. Request, Background and Proposed Contracting Procedure:

a. Request:

Oregon State Treasury requests approval of the Special Procurement to extend the Master Services Agreement with TierPoint, LLC. A best value analysis was completed in 2012, which identified TierPoint as the most cost effective vendor for the Disaster Recovery services of Oregon State Treasury.

b. Background:

Prior to 2012, Oregon State Treasury had a contract with SunGard under the statewide price agreement to provide certain disaster recovery services. Treasury also had a contract with Iron Mountain for off-site data storage. The contract with Sun Gard terminated in 2012, and Treasury’s IT department sought other providers. The IT department sought offers for disaster recovery services and compared the services from various companies providing disaster recovery services, including: SunGard, Bend Broadband.Vault, and TierPoint. TierPoint offered the best and most cost effective solution. Based upon that best value comparison, Treasury entered into a contract with TierPoint. The value of the contract was under $150,000.

Treasury transferred its full system backup to the TierPoint location and arranged the direct point to point circuit connection through BlackRock for business continuity. When Oregon State Treasury migrated to TierPoint and established the TierPoint site as its Disaster Recovery Site, Treasury was able to discontinue using the disaster recovery contract with SunGard and also discontinue its contract with Iron Mountain for the off-site tape backup storage, resulting in substantial savings. The initial cost from TierPoint was $1,350.00 per month, or $16,200.00 per year. Treasury anticipated that the contract with TierPoint would extend for 9 years, however, Treasury’s needs have increased due to the increase of data that is backed up at the TierPoint Disaster Recovery Site.

c. Proposed Contracting Procedure:

DocuSign Envelope ID: DED2F7AB-E419-400F-9023-1D2C31A3A6FE

Special Procurement 170-1407-23 Page 2 of 2

Oregon State Treasury intends to continue with the services and direct award a contract to TierPoint to ensure that Treasury’s disaster recovery plan remains in place.

11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation. Directly awarding and negotiating the contract with TierPoint is justified based upon the following:

1. Treasury anticipates that the cost savings from previous solutions will continue.

2. Treasury conducted a best value comparison among providers when it originally awarded the contract to TierPoint.

3. Continuing with the current vendor mitigates potential risks of establishing another Disaster Recovery Site and moving Treasury data.

4. The cost to change vendors and move Treasury’s Disaster Recovery Site is prohibitive.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

______ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because Treasury conducted a best value comparison in its initial award of the contract to TierPoint, has made significant time and resource investment in the new location, and Treasury has designed its Disaster Recovery Plan around the provision of the services by one vendor (TierPoint) rather than multiple vendors;

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:

The cost of new equipment, testing of solution is prohibited at this time. Oregon State Treasury is responsible for all banking transactions for all agencies. Oregon State Treasury is also responsible for all of the investments of PERS, Common School Fund, etc. If Oregon State Treasury did not have a reliable, working disaster recovery site, PERS recipients may not receive the monthly checks that they are expecting during a disaster.

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 Oregon Buys. Agency may elect to attach a signed Request.

Signature: ________________________ _________________ Type Name Date

DocuSign Envelope ID: DED2F7AB-E419-400F-9023-1D2C31A3A6FE

Michael Kaplan

5/9/2023