SSJF B 17344 SPO Approved .pdf

Sole Source Justification Form

Version 7.01 Page 1 of 5

Bulletin Reference Number 21-416CMS-BOSS4-B-17344

Requesting Agency/University CMS

Sole Source Justification Form - Part I Section I - General Information

Department/Bureau/Section: Central Management Services - Bureau of Strategic Sourcing

Need Identified Date: May 29, 2020 Supply/Service Need By Date: Nov 20, 2020

Project Title: SS JPMC INCONTINENCE PRODUCTS SUP

Vendor: Developmental Services Center

Provide a description of the supplies or services required: Standard and premium incontinence products in multiple sizes (including bariatric)

Value: Estimated Value of Initial Term, this Change Order or Amendment: 829,400

Will this Sole Source amend a Professional or Artistic Services contract? Yes No

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Type: New Sole Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Nov 20, 2020

Estimated Contract End Date: Nov 19, 2021

Number of Potential Renewals: 0

Length of Each Renewal in Months: 0

Total Value of All Renewals: 0

If a Term Contract, does the term, including renewals, exceed 12 months? Yes No

Section III - Funding Source Select the type of funding to be used (Check all that apply): State Appropriate Funds Federal Funds Other (Explain):

Section IV - Sole Source Justification

This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)

This is the only vendor approved by the State Use Committee to provide these supplies.

Are there secondary justification(s) for this sole source? Yes No

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Bulletin Reference Number 21-416CMS-BOSS4-B-17344

Requesting Agency/University CMS

Section V - Purchase History

Has the Agency or University Purchased these supplies or services in the past? Yes No

Term Term From Term To Value Description Contract Number Type

1 Nov 20, 2015 Nov 19, 2017 1,786,241.1 PSD Incontinence Products SUW Statewide Master PSD4018199 IFB

2 Nov 20, 2017 Nov 19, 2019 1,786,241.1 PSD Incontinence Products SUW Statewide Master PSD4018199 Renewal

3 Nov 20, 2019 Nov 19, 2020 781,300 JPMC Incontinence Products SUP PSD4018199 Renewal

If more than 10, or if other comments, explain:

Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

To establish a new 1-year State Use, sole source, joint purchase master contract to purchase both standard and premium incontinence products under Sections 20-25 (Sole source procurements) and 45-35 (Not-for-profit agencies for persons with significant disabilities) of the Illinois Procurement Code. Incontinence products are a continuing need procured on multi-year contracts.

2. Provide a list and describe in detail the specifications required to satisfy the need:

Standard and premium incontinence products in multiple sizes including bariatric.

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

This contract will allow all governmental units and qualified not-for-profit agencies to experience a cost savings from a State Use contract which in turn provides work for persons with developmental disabilities. This State Use vendor is offering the same pricing established in 2015 and 2016, despite Internet retail prices having risen from 13% to 47% in costs for similar items in the same case quantities and packaging.

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

This State Use vendor, Developmental Services Center (DSC), is a qualified not-for-profit agency for persons with significant disabilities.

DSC employs persons with disabilities to fulfill the requirements of the current contract (PSD4018199) in accordance with 30 ILCS 500/45-35 and have done so satisfactorily during the current term (11/20/15 - 11/19/20). DSC agreed in 2016 to a price reduction on five lines of the contract. In 2017, at the time of the 1st renewal, DSC’s pricing remained firm and DSC did not request a price increase.

In 2019, at the time of the 2nd and final renewal, DSC’s pricing remained firm yet again, nor did DSC request a price increase. However, DSC is offering for this new 1-yr contract the same pricing established in 11/2015 despite the rising retail costs of similar incontinence products from 13% to 47%.

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Bulletin Reference Number 21-416CMS-BOSS4-B-17344

Requesting Agency/University CMS

5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

Covidien, McKesson and MD Supplies products via the internet were evaluated.

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

A comparison of some retail costs vs the State Use vendor's proposed pricing for same case quantities and same product sizes disclosed the following:

Line 1: Pad, moderate, 14.5", 42/bag, 168/cs, McKesson's price is 14% higher.

Line 6: Brief, medium 32" - 44", 24/bag, 4 bags/cs., Covidien's price is 14% higher.

Line 16: Pull-on premium, 34" - 44", 80/cs, 20 packages of 4 bags, McKesson's price is 13% higher.

Line 19: Pull-on premium bariatric, XX-Lg 68"- 80", 48/cs, 12 packages of 4/bags, MD Supplies' price is 47.5% higher.

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

Internet inquiries for similar products in the same case quantities.

6. Are there resellers or distributors?

Yes No N/A

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

The State Use vendor's proposed pricing is significantly lower than retail. Retail prices ranging from 13% to 47% higher costs.

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

Yes No

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

The financial impact to the State if not approved and competitively bid will result in higher costs ranging from 13% to 47%. In effect multiple small high retail purchases would add to the State's deficit on top of the unknown and burdensome expenses due to COVID-19. In addition, the State Use vendor would lose contract revenue which in turn would result in of loss of training and job opportunities for persons with disabilities.

10. Is there any additional information you would like to add to justify this sole source?

In accordance with CPO Notice 2020.01 regarding Not for Profit Agencies and Joint Purchasing. Pursuant to Section 4.05 of the Governmental Joint Purchasing Act, when a State agency procures a Joint Purchase Master Contract (JPMC) from a qualified not-for-profit agency for persons with significant disabilities, the agency shall use the sole source method of procurement and follow the same procedures for sole source contracts in the Illinois Procurement Code. The Chief Procurement Officer for General Services (CPO) justifies a qualified not-for-profit agency for persons with significant disabilities as a sole economically feasible source due to the organization’s employment and empowerment of persons with disabilities.

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Bulletin Reference Number 21-416CMS-BOSS4-B-17344

Requesting Agency/University CMS

Section VII

Requesting Department Representative

Requesting Department Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

Date Sep 17, 2020

Printed Name Linda Tribbet E-mail Address Linda.Tribbet@Illinois.gov

Phone Number 217-557-4306

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed)

E-mail Address ron.wilson@illinois.gov

Phone Number 217-557-2412 Date Sep 18, 2020

Printed Name Ron Wilson

Agency Bureau/Division Head or University Purchasing Director and Not a Designee

SPO Approval and Signature Required

I have reviewed and understand the contents of this Sole Source Justification and agree with the State Agency or University determination.

I have reviewed and understand the contents of this Sole Source Justification and do not agree with the State Agency or University determination. As a result, the State Agency or University must explore other sourcing methods to satisfy their need.

State Purchasing Officer Signature Phone Number 217-299-4919 Date Sep 30, 2020

Printed Name John H.H. Demien, CPPB E-mail Address john.demien@illinois.gov

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Bulletin Reference Number 21-416CMS-BOSS4-B-17344

Requesting Agency/University CMS

Sole Source Justification Form - Part II Section I - General Information

Project Title SS JPMC INCONTINENCE PRODUCTS SUP

Vendor Developmental Services Center

Initial Date of Procurement Bulletin Posting

Was a Sole Source hearing held per 30 ILCS 500/20-25?

Yes - Complete Section II and III below (Section II will only be visible when this option is selected)

No - Section II not required, go to Section III below Section III - CPO Approval and Signature Required

Based on my review, I authorize the Agency/University to proceed in accordance with the published Notice referenced above.

Based upon my review, I authorize the Agency/University to proceed with the following Changes.

Based on my review, the Agency/University is not authorized to proceed with this sole source as presented and my recommendation is that it be cancelled.

Other

CPO Signature CPO Phone 312-415-9612

Printed Name Ellen H. Daley Date

CPO E-mail Ellen.H.Daley@Illinois.gov

Version 7.01 Page of Sole Source Justification Form - Part I Section I - General Information Will this Sole Source amend a Professional or Artistic Services contract?

If yes, what was the original contract value?

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Section II - Proposed Term If a Term Contract, does the term, including renewals, exceed 12 months?

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

Section III - Funding Source Select the type of funding to be used (Check all that apply):

Section IV - Sole Source Justification Are there secondary justification(s) for this sole source?

Section V - Purchase History Has the Agency or University Purchased these supplies or services in the past?

Term Term From Term To Value Description Contract Number Type Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

2. Provide a list and describe in detail the specifications required to satisfy the need:

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

5. Has the Agency or University considered alternative supplies or services to satisfy their need?

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

5a. If no, why weren't alternatives evaluated?

6. Are there resellers or distributors?

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

8a. If yes, please provide details regarding future obligations and/or needs:

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

10. Is there any additional information you would like to add to justify this sole source?

Section VII Requesting Department Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed) SPO Approval and Signature Required Sole Source Justification Form - Part II Section I - General Information Was a Sole Source hearing held per 30 ILCS 500/20-25?

Section II - Sole Source Hearing Details The State posted to the Illinois Procurement Bulletin a description of the State's need, the justification for the sole source decision, and information regarding the opportunity to submit comments and testify at a public hearing. Notice of the hearing was also posted outside of the hearing room 48 hours prior to the hearing.

The public hearing was conducted for the purpose of receiving testimony regarding the sole source determination. The Hearing Officer recommends the following:

The following relevant documents are attached:

Section III - CPO Approval and Signature Required 9.0.0.2.20101008.1.734229 Ellen.H.Daley@Illinois.gov

Line 1: Pad, moderate, 14.5", 42/bag, 168/cs, McKesson's price is 14% higher.

Line 6: Brief, medium 32" - 44", 24/bag, 4 bags/cs., Covidien's price is 14% higher.

Line 16: Pull-on premium, 34" - 44", 80/cs, 20 packages of 4 bags, McKesson's price is 13% higher.

Line 19: Pull-on premium bariatric, XX-Lg 68"- 80", 48/cs, 12 packages of 4/bags, MD Supplies' price is 47.5% higher.