SSJF HDA Mythics B-54679 Part I SPO Signed.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 27-551HDA-FINAN-B-54679

Requesting Agency/University Illinois Housing Development Authority

Sole Source Justification Form - Part I

Section I - General Information

Department/Bureau/Section: Finance/Accounting

Need Identified Date: 9/28/2026 Supply/Service Need By Date: 12/1/2026

Project Title: Oracle Business Process Consultant Services

Vendor: Mythics LLC

Provide a description of the supplies or services required: Oracle Business Process Consultant Services

Value: Not to Exceed Value of Initial Term, this Change Order or Amendment: 597,096.5

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 Economically Feasible Source

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: 12/1/2026

Estimated Contract End Date: 11/30/2027

Number of Potential Renewals: 0

Length of Each Renewal in Months:

Total Value of All Renewals:

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):

Locally held funds at the Authority

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 27-551HDA-FINAN-B-54679

Requesting Agency/University Illinois Housing Development Authority

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 Aug 25, 2022 5/31/2026 2,451,126.28 Oracle Business Process Support Services - ROM P-17514:17

2 Jun 1, 2026 Nov 30, 2026 298,548.18 Oracle Business Process Support Services - ROM P-17514:132

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:

IHDA uses Mythics, Inc. as an integrated part of its operating model, supplementing its accounting function through Business Process Consulting Services (BPC) with services equivalent to ten direct staff. The team processes approximately 80% of IHDA's accounting activity and directly supports required financial reporting to IHDA's Board of Directors, the State Comptroller's Office, the Federal National Mortgage Association (Fannie Mae), and other federal agencies. Its daily, weekly, and monthly work spans debt and investment accounting, single family and multifamily loan transaction processing, lockbox processing, balance sheet reconciliations, payroll and AP check reconciliations, and related compliance review. The model delivers these services at approximately 34% of the cost of equivalent internal staff, generating more than $1 million in annual savings that IHDA reinvests in affordable housing across the State. With housing affordability needs at record levels, this lowest-cost model is a critical economic lifeline. It also supports IHDA's credit ratings and its ability to issue bonds for affordable housing on the most advantageous terms. Changing the model would take 12 to 18 months to unwind, and the resulting change in cost structure could place IHDA's funding model at risk.

Version 7.01 Page 3 of 6

Bulletin Reference Number 27-551HDA-FINAN-B-54679

Requesting Agency/University Illinois Housing Development Authority

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

Vendor agrees to provide dedicated accounting resources, including Staff Accountants, Senior Accountants, and an onsite Project Manager. The resources will have governmental and housing finance accounting experience and working knowledge of Oracle Fusion Cloud ERP, and will work within IHDA's secure remote desktop environment.

Vendor agrees to provide the following accounting services:

- Prepare monthly reconciliations of assigned general ledger and bank accounts, including the necessary journal entries

- Support monthly, quarterly, and year-end close, and prepare assigned audit schedules

- Process and balance daily lockbox, wire, pending payout, and other cash transactions, and post them to the general ledger

- Reconcile single family/ multifamily loan and escrow balances to the general ledger

- Analyze proprietary and governmental funds operating results and perform general ledger account analysis

- Collect, analyze, document, and report financial data for governmental programs, including financial statements and income statement, balance sheet, and intercompany analysis

- Review grant and loan receipts and disbursements across programs for proper recording

- Perform variance analysis of management reports and financial statements, and review revenue and expense operating results for commentary

- Continue to identify system enhancements and process improvements through existing and new tools Administration. Vendor agrees to provide monthly reporting on hours, transactions, and performance against IHDA-set benchmarks, maintain standard operating procedures (SOPs) for recurring processes, and provide onsite project management for escalation and coordination.

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?

The team was established under the State master contract with Mythics, which subcontracted the services to Oracle. Oracle has notified Mythics that it is exiting this business line, and the master contract is expiring with no confirmed extension date, duration, or terms.

Mythics will continue these business-critical services directly and will employ the current team, subject to a minimum 12-month commitment to support that investment, as confirmed in the attached Mythics letter. Over more than three years, the team helped build IHDA's Oracle Fusion Cloud ERP infrastructure and processes. Its systems knowledge keeps financial and accounting operations running, and it holds institutional knowledge of IHDA's funds, programs, chart of accounts, and bond structures. The team processes approximately 80% of IHDA's accounting activity, so retaining it at current cost directly preserves funding for affordable housing. A new vendor transition would take 18 to 24 months. IHDA requests this sole source as a 12-month bridge to avoid disrupting operations and commits to issuing a new Request for Proposals (RFP) during that period.

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:

More than three years embedded in IHDA operations. Engaged since August 2022, the team helped build IHDA's Oracle Fusion Cloud ERP infrastructure and processes and works across all four accounting functions. The team has IHDA specific knowledge and knows IHDA's funds, programs, bond structures, and chart of accounts, including complex accounts such as Government Administration Fees Receivable and the Contributions and Withdrawals clearing accounts. The team has built IHDA specific tools and a Finance Library, a coding automation tool, a Contributions and Withdrawals macro, and AP and Homeownership wire templates. It completed 14 IHDA specific SOPs, with 5 in progress, and performs against 18 IHDA set benchmarks. Audit and special project record: The team completed 13 audit and treasury projects, including external audit schedules. All team members operate in IHDA's tested and stable secure remote desktop environment. A new vendor would require new security provisioning and review. All positions are filled, including an on-site Project Manager.

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

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

IHDA did not conduct a market evaluation for this request. The services depend on a team embedded in IHDA's operations since 2022, with institutional knowledge, IHDA built tools and SOPs, and secure system access already in place. Bringing the work in-house would take 12 to 18 months and eliminate the cost savings. A new vendor transition would take 18 to 24 months. Rather than risk disruption now, IHDA will use the 12-month term to conduct a competitive RFP. In addition, IHDA confirmed with DoIT on 10/16 via a TEAMS meeting that DoIT would be pursuing a 6 month extension of the current Master Contract and the 6 month contract term is not long enough to meet IHDA's needs and to allow IHDA enough time to conducts its own competitive procurement without a disruption to these critical services.

Version 7.01 Page 4 of 6

Bulletin Reference Number 27-551HDA-FINAN-B-54679

Requesting Agency/University Illinois Housing Development Authority

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 BPC model costs approximately 34% of equivalent internal staff, generating more than $1million in annual savings over the 12-month term. Pricing is consistent with the rates under IHDA's existing agreement with Mythics, established through the State master contract, which determined the best possible price. The 12-month cost of $597,096 is based on the current monthly rate. Monthly reporting lets IHDA verify hours delivered against rates paid.

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?

IHDA would lose the team when the current agreement expires, creating a gap across approximately 80% of its accounting activity, including Board, State Comptroller, and federal reporting. Bringing the work in-house would take 12 to 18 months and eliminate more than $1 million in annual savings. A new vendor transition would take 18 to 24 months. Either path raises the risk of delayed closes, missed reporting deadlines, and audit findings, and could pressure IHDA's credit ratings and funding model.

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

Mythics requires a minimum 12-month commitment to retain the dedicated team and absorb the cost of employing it; a shorter term risks losing the team entirely. Twelve months also gives IHDA a realistic timeline to prepare, issue, evaluate, and award a competitive RFP and transition if needed. The 12 month contract term holds current rates, preserves more than $2 million in savings, and avoids the cost and risk of repeated short-term extensions. Mythics has been IHDA's contracting partner since 2022 and was vetted under the State master contract. It will employ the same team, so IHDA retains its institutional knowledge, tools, procedures, and secure system access without new onboarding or security provisioning. As of 10/16/2026, DoIT has expressed they will pursue a 6 month extension of the Master Contract which is not long enough to retain the current IHDA team.

Moving to a TOPS contract would require IHDA to change vendors, as Mythics is not a TOPS vendor. A vendor change is not feasible within the current timeline without significant operational and financial risk. The current Mythics team has supported IHDA since 2022 and helped implement IHDA's Oracle Fusion Cloud ERP, and now performs approximately 80% of IHDA's accounting activity, supporting required reporting to IHDA's Board, the State Comptroller's Office, Fannie Mae, and other federal agencies. There was an 18 month ramp up period to onboard and integrate co-sourcing into the current operating model, which makes up 40% of the total accounting function. To change that model would take a comparable period of time and present significant operational and financial risk. A new vendor would need to learn IHDA's funds, programs, chart of accounts, bond structures, and Oracle-based processes, adopt the team’s IHDA specific procedures and tools, and templates the current team developed. It would also need new security provisioning and onboarding into IHDA's systems. That transition would take significant time, during which IHDA's own staff would have to train the new team while maintaining daily operations. During that period, IHDA would face a material risk of delayed month-end and year-end closes, missed reporting deadlines, and audit findings. Those outcomes could affect IHDA's credit ratings and its ability to issue bonds for affordable housing. The transition would also disrupt a model that costs approximately 34% of equivalent internal staff and generates more than $1 million in annual savings.

Version 7.01 Page 5 of 6

Bulletin Reference Number 27-551HDA-FINAN-B-54679

Requesting Agency/University Illinois Housing Development Authority

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

Printed Name Seth Runkle E-mail Address srunkle@ihda.org

Phone Number 312-836-7345

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 kfaust@ihda.org

Phone Number 312-836-5314 Date

Printed Name Kristin Faust

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 Date

Printed Name Heather Crain E-mail Address heather.crain@illinois.gov

Seth H Runkle Digitally signed by Seth H Runkle Date: 2026.10.26 09:50:19 -05'00'

10/26/2026

10/27/2026217-970-0598

Version 7.01 Page 6 of 6

Bulletin Reference Number 27-551HDA-FINAN-B-54679

Requesting Agency/University Illinois Housing Development Authority

Sole Source Justification Form - Part II

Section I - General Information

Project Title Oracle Business Process Consultant Services

Vendor Mythics LLC

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

Printed Name Date

CPO E-mail