SSJF DHS B-43987.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 25-444DHS-MIS44-B-43987

Requesting Agency/University Department of Human Services

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

Department/Bureau/Section: Bureau of Pharmacy

Need Identified Date: 07/09/2024 Supply/Service Need By Date: 09/30/2024

Project Title: Sole Source - MedSelect Flex Machines Alton Choate

Vendor: ARxIUM, Inc.

Provide a description of the supplies or services required: Purchase of three (3) new MedSelect Stations for medication distribution at the Alton Mental Health Center and the Choate Mental Health Center.

Value: Actual Value of Initial Term, this Change Order or Amendment: 196,790.38

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

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)

Compatibility of Equipment, Accessories, Replacement Parts or Service

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

Version 7.01 Page 2 of 6

Bulletin Reference Number 25-444DHS-MIS44-B-43987

Requesting Agency/University Department of Human Services

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 01/20/2023 Jun 30, 2023 12,155 MedSelect Flex Drawer Module-Elgin 4100170817 Sole Source

2 11/01/2023 06/30/2024 106,929.64 MedSelect Flex Machines Choate/ Chester 4100185572 Sole Source

3 06/10/2024 6/30/2024 143,571.44 MedSelect Flex Machines-Chicago Read 4100195132 Sole Source

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:

Illinois Department of Human Services (DHS) operates residential facilities throughout the State and each of these facilities houses a pharmacy. Pharmacists do not work 24/7 shifts and supplemental prescriptions are required when they are not on site. DHS requires a method to securely store and distribute medicine to their residents when the Pharmacy is not staffed. The Choate Mental Health Center and Alton Mental Health Center require additional secure capacity for the administration of medications when the pharmacy staff is not available. The medications in their possession must be kept under lock and key. When medicine is dispensed, there must be a way to confirm that the proper formulary and dosage is administered; access is controlled; and an accurate inventory is maintained. The storage cabinet must limit access, provide appropriate dosages and offer a verification method to ensure the correct medicine and dosage was removed from the cabinet for the patient. The solution must be able to accommodate unusual sized items as well as blister pill packages as DHS pharmacies rely on blister packaging for individual dosing of tablets and require storage for odd shaped items such as syringes and liquid medicine. In addition, the cabinets must provide adequate storage for all packaging types as well as supporting the electronic inventory system in place. In order to properly manage controlled substances in a residential setting, a secured and inventoried system is necessary. To meet the regulations set by the Joint Commission, the monitoring agency for health services in Illinois, IDHS must maintain the ability to access supplemental medication when a licensed Pharmacist is not on site, and to monitor access to the controlled substances contained therein.

Version 7.01 Page 3 of 6

Bulletin Reference Number 25-444DHS-MIS44-B-43987

Requesting Agency/University Department of Human Services

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

DHS needs to purchase two (2 each) of the following components to expand the existing system at Alton:

New MedSelect Units - Due to security and authentication, the after-hours dispensing units are necessary to protect the medication and securely track how and what is being dispensed. The system tracks what medication is being stored, dispensed, and who obtained the items via a central server and real-time tracking.

MFUDM - Unit Dose Module - Unit Dosed Medication Storage (see above for reason) MFDM5 - Main Drawer Modules - Other Packaged Medication (see above for reason) MDT - Display Terminal - Touch Screen Dispense Terminal (see above for reason) MFSCM - Standard Cabinet Module - Other Medication Storage (see above for reason) MMOF - MedSelect MedOrder Configuration MFRPKI - MedSelect Flex Receipt Printer Kit - Field Installed MELC- MedSelect Electronic Lock Controller MFCDM- MedSelect Flex Compact Drawer Module

The following items (1 each) will be purchased for the Choate Pharmacy to supplement existing equipment:

MFDM5- MedSelect Flex Drawer Module - 5 Drawer MDT - MedSelect Display Terminal MMOF- MedSelect MedOrder Configuration MFUDM - MedSelect Flex Unit Dose Module MFRPKI - MedSelect Flex Receipt Printer Kit - Field Installed

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?

Due to security and authentication, the after-hours dispensing units are necessary to protect the medication and securely track how and what is being dispensed. The system tracks what medication is being stored, dispensed, and who obtained the items via a central server and real-time tracking. These are a proprietary items and run off of a central server that maintains all necessary data for the system to work correctly. These expansion items are the only possible remedy without replacing the entire system. Only ARxIUM MedSelect items can be added to the existing items. They communicate via proprietary software to the central server with any transaction that occurs at the MedSelect unit in the facility. The central server maintains all vital security information regarding dispensing and role base security options. (See attached Sole Source letter from the vendor.)

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:

The MedSelect dispensing system is used by DHS residential facilities to provide access to medication after hours. These after-hours dispensing units are necessary to protect the medication and securely track how and what is being dispensed. The computerized system tracks what medication is being stored, dispensed, and who obtained the items via a central server and real-time tracking.

These are a proprietary items and run off of a central server that maintains all necessary data for the system to work correctly. Other items are not compatible with the existing MedSelect system as explained in the attached sole source letter. No other product can access the proprietary system that would allow it to work with existing infrastructure. All dispensing systems communicate to a central server that controls all aspects of user access, medication, reporting, and maintenance to be completed. This will include project management, installation, and training that can only be done by the vendor. Due to security and authentication, the after-hours dispensing units are necessary to protect the medication and securely track how and what is being dispensed. The system tracks what medication is being stored, dispensed, and who obtained the items via a central server and real-time tracking.

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

Version 7.01 Page 4 of 6

Bulletin Reference Number 25-444DHS-MIS44-B-43987

Requesting Agency/University Department of Human Services

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

This system was initially purchased through an Invitation for Bid (IFB) during FY10. It was a competitive bid that listed specifications/ requirements for a system for the DHS Pharmacies (it did not specifically request a brand-name and/or proprietary product). It was awarded to a vendor that offered the best competitive price that met the agency's needs. The awarded vendor has since sold the company, and only ARxIUM, Inc. can sell the MedSelect products. (see attached sole source letter) There are no other resellers for these products, so there are no other options that will allow the medical staff to expand the existing MedSelect system already in use at the pharmacies. DHS currently has at least one after-hours dispensing system at each DHS Mental Health and Developmental Disabilities facility. These dispensing systems communicate with a central server that maintains all data elements related to the system. This central server also maintains all user information for security regarding access to the dispensing system as well as monitoring all items that are securely stored inside of the dispensing system. The only other alternative would be to replace the entire system with something new, which is not in the best interest of the State of Illinois or DHS.

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 agency requested the best possible price and received discounts of $3,387.98 off the the MSRP for the Alton order and $1,657.89 off of the Choate order.

Pricing for items required to meet the needs of the Choate and Alton facilites are:

MFUDM - Unit Dose Module - Unit Dosed Medication Storage -each $16,087.50 - this unit expands storage capacity to accommodate blister packaged medicine which may be required when the Pharmacists are not available.

MFDM5 - Main Drawer Module -5 Drawer- Other Packaged Medication -each $17,428.13-- this unit provides secure storage for medicines and medical devises that are not pill shaped.

MDT - Display Terminal - Touch Screen Dispense Terminal each $12,065.63 -- the terminal is integrated into these units and provides the input devise for data as well as the interface to the central IT storage.

MFSCM - Standard Supply Cabinet Module - Other Medication Storage each $8,714.06- this unit expands storage capacity to accommodate supplemental medicines which may be required when the Pharmacists are not available.

MMOF - MedSelect MedOrder Configuration each $576.47-- this is the software required for operation.

MFRPKI- MedSelect Flex Receipt Printer Kit - Field Installed-each $1,072.50 --needed to track dispensed medications.

MELC - MedSelect Electronic Lock Controller each $1,005.47-- needed to maintain security.

MFCDM- MedSelect Flex Compact Drawer Module each $9,116.25 -- needed for extra storage capacity.

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?

DHS will be responsible for replacing all of the dispensing system units which monitor inventory and access at the Alton and Choate facilities with a different system; or a round the clock pharmacy staff would be required to replace these units.

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

No.

Version 7.01 Page 5 of 6

Bulletin Reference Number 25-444DHS-MIS44-B-43987

Requesting Agency/University Department of Human Services

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 Jul 22, 2024

Printed Name Shannon Tribble E-mail Address shannon.tribble@illinois.gov

Phone Number 217-558-0949

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 stacy.howlett@illinois.gov

Phone Number 312-771-3893 Date 7/25/2024

Printed Name Stacy Howlett

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) 494-1351 Date 7/26/2024

Printed Name Adrienne Griver E-mail Address adrienne.grover@illinois.gov

Version 7.01 Page 6 of 6

Bulletin Reference Number 25-444DHS-MIS44-B-43987

Requesting Agency/University Department of Human Services

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

Project Title Sole Source - MedSelect Flex Machines Alton Choate

Vendor ARxIUM, Inc.

Initial Date of Procurement Bulletin Posting Jul 30, 2024

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 217-558-2231

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

New MedSelect Units - Due to security and authentication, the after-hours dispensing units are necessary to protect the medication and securely track how and what is being dispensed. The system tracks what medication is being stored, dispensed, and who obtained the items via a central server and real-time tracking.

MFUDM - Unit Dose Module - Unit Dosed Medication Storage (see above for reason) MFDM5 - Main Drawer Modules - Other Packaged Medication (see above for reason) MDT - Display Terminal - Touch Screen Dispense Terminal (see above for reason) MFSCM - Standard Cabinet Module - Other Medication Storage (see above for reason) MMOF - MedSelect MedOrder Configuration MFRPKI - MedSelect Flex Receipt Printer Kit - Field Installed MELC- MedSelect Electronic Lock Controller MFCDM- MedSelect Flex Compact Drawer Module

The following items (1 each) will be purchased for the Choate Pharmacy to supplement existing equipment:

MFDM5- MedSelect Flex Drawer Module - 5 Drawer MDT - MedSelect Display Terminal MMOF- MedSelect MedOrder Configuration MFUDM - MedSelect Flex Unit Dose Module MFRPKI - MedSelect Flex Receipt Printer Kit - Field Installed

Pricing for items required to meet the needs of the Choate and Alton facilites are:

MFUDM - Unit Dose Module - Unit Dosed Medication Storage -each $16,087.50 - this unit expands storage capacity to accommodate blister packaged medicine which may be required when the Pharmacists are not available.

MFDM5 - Main Drawer Module -5 Drawer- Other Packaged Medication -each $17,428.13-- this unit provides secure storage for medicines and medical devises that are not pill shaped.

MDT - Display Terminal - Touch Screen Dispense Terminal each $12,065.63 -- the terminal is integrated into these units and provides the input devise for data as well as the interface to the central IT storage.

MFSCM - Standard Supply Cabinet Module - Other Medication Storage each $8,714.06- this unit expands storage capacity to accommodate supplemental medicines which may be required when the Pharmacists are not available.

MMOF - MedSelect MedOrder Configuration each $576.47-- this is the software required for operation.

MFRPKI- MedSelect Flex Receipt Printer Kit - Field Installed-each $1,072.50 --needed to track dispensed medications.

MELC - MedSelect Electronic Lock Controller each $1,005.47-- needed to maintain security.

MFCDM- MedSelect Flex Compact Drawer Module each $9,116.25 -- needed for extra storage capacity.