SSJF Part I SPO Signed B-49176.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 7

Bulletin Reference Number 26-448DOIT-INFOT-B-49176

Requesting Agency/University Department of Innovation & Technology ("DoIT")

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

Department/Bureau/Section: DoIT

Need Identified Date: May 8, 2025 Supply/Service Need By Date: Nov 5, 2025

Project Title: Corticon Enterprise Software, Licensing, Maintenance and Support for Integrated Eligibility System (IES)

Vendor: Matrix Systems Group, Inc.

Provide a description of the supplies or services required:

Department of Innovation and Technology (DoIT), desires to purchase two years of maintenance, support and unlimited licensing for Corticon Business Rules System.

Value: Actual Value of Initial Term, this Change Order or Amendment: 2,773,209.69

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: Nov 5, 2025

Estimated Contract End Date: Nov 4, 2027

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

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

The State originally procured an account subscription in 2013 which included the capability of unlimited licenses. Progress Software Corporation (OEM for Corticon) has since discontinued this account feature and will not allow the State to continue its use with a contract term of less than 24 months; if our subscription changes or lapses, the State would lose critical benefits - namely the aforementioned "unlimited licensing" - which would cause a significant waterfall of issues resulting in the ceased functionality of DoIT's Integrated Eligibility System ("IES"), the potential for millions of Illinois residents to lose access to necessary assistance (detailed below), and ultimately a potential economic impact in millions of dollars of unanticipated spending to fully and quickly compensate for losing our unlimited license account benefit.

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

This is paid with State funds and then federally reimbursed at approximately 50%

Section IV - Sole Source Justification

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Bulletin Reference Number 26-448DOIT-INFOT-B-49176

Requesting Agency/University Department of Innovation & Technology ("DoIT")

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

Software License/Upgrade/Maintenance

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

Another justification that this purchase is only available from a sole source is because it is:

Items are Copyrighted or Patented and the Items are Only Available from the Holder

Another justification that this purchase is only available from a sole source is because it is:

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 11/5/2023 11/4/2025 2,474,496.15 Corticon for Enterprise - SEFS CIT4175426 Sole Source

2 11/5/2021 11/4/2023 2,023,656.36 Corticon Enterprise CIT1241440 Sole Source

3 11/5/1019 11/4/2021 1,548,000 Corticon for IES SEFS CMT0372500 Sole Source

4 11/1/2018 10/31/2019 1,561,846.47 Corticon Maintenance-HFS P-5097 Sole Source

5 11/1/2017 10/31/2018 411,217 Corticon Maintenance-HFS 2018-62-017 Sole Source

6 11/12/2016 10/31/2017 411,217 Corticon Maintenance-HFS 2017-62-018 Sole Source

7 10/13/2016 11/11/2016 45,655.88 Corticon Maintenance-HFS 2017-62-019 Sole Source

8 9/26/2015 9/25/2016 388,127.53 Corticon Maintenance-HFS 2016-62-011 Sole Source

9 9/26/2014 9/25/2015 382,365.96 Corticon Maintenance-HFS 2015-62-009 Sole Source

10 9/26/2013 9/25/2014 1,561,846.47 Initial Purchase w/ 1yr support-HFS 2014-62-014 Sole Source

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

Section VI - Business Rationale

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Bulletin Reference Number 26-448DOIT-INFOT-B-49176

Requesting Agency/University Department of Innovation & Technology ("DoIT")

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

This procurement is for two years of unlimited licensing, maintenance, support and continued access to the Progress' Corticon Business Rules Engine software. This will be procured through Matrix Systems Group, Inc. Matrix is the only authorized reseller option for Corticon licensed products and services in Illinois for the IES. The Corticon software provides and ultimately is the business rules engine responsible for powering for the State's IES program. Support and upkeep of the software is needed to maintain business operations.

This maintenance also includes 24/7 technical support, either via phone or virtually, and this support is available at any long as contract is in effect.

"Business Rules Engine" - A business rule engine (BRE) is a component of software allowing non-programmers to change the business logic in a business process management (BPM) system. To carry out a business policy or procedure, a business rule or statement is required. Business logic uses data in a database and a sequence of operations to carry out the business rule.

Procurement of Corticon unlimited licensing, maintenance and support is necessary to ensure the State's ability to use both current and older versions of the Corticon software. Without the updated and maintained Corticon software, IES could incorrectly determine Medicaid, SNAP and TANF eligibility, resulting in the loss of federal funds. Entering into a two year contract term will provide uninterrupted use of the State's unlimited licensing which gives unlimited usage rights to agencies supported by the Corticon software.

In addition, annual software maintenance (version upgrades, patches) as well as vendor support (trouble tickets and resolutions through technical support) are included in this procurement.

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Bulletin Reference Number 26-448DOIT-INFOT-B-49176

Requesting Agency/University Department of Innovation & Technology ("DoIT")

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

Detail Items as Follows:

New Perpetual License - Corticon Server+ 6.3 - Unlimited Core Supported Platforms Maintenance Type: Standard

Maintenance Type: Standard - Progress Software

Corticon Studio / Standard 6.3 - 10 Named User -Supported Platforms Maintenance Type: Standard

Corticon Studio / Standard 6.3 - Unlimited Named User - Supported Platforms Serial# 6024228

Corticon Server+ / Standard 6.3 - 8 Core Supported Platforms Serial# 6230223

Maintenance Update - Corticon Server+ / Standard 6.3 - 26 Core - Supported Platforms Serial# 6230224

Corticon Server+ / Standard 6.3 - Unlimited Core Supported Platforms Serial# 6230225

Corticon Server+ / Standard 6.3 - Unlimited Core Supported Platforms Serial# 6230226

Corticon Studio / Standard 6.3 - Unlimited Named UserSupported Platforms Serial# 6235460

Corticon Server+ / Standard 6.3 - Unlimited CoreSupported Platforms Serial# 6235461

Corticon Server+ / Standard 6.3 - Unlimited CoreSupported Platforms Serial #: 6272254

Corticon Studio / Standard 6.3 - Unlimited Named UserSupported Platforms Serial #: 6272255

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 Corticon products currently in use by the IES are the only Business Rules Engine products that can operate the existing IES system.

These products are integral in the daily operations of DoIT's IES program; IES supports programs that aide the neediest citizens such as the Supplemental Nutrition Assistance Program ("SNAP") to help low-income people buy food, the Temporary Assistance for Needy Families ("TANF") program to provide temporary financial assistance for pregnant women and needy families with young children for food and shelter, and the State's Medicaid program.

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:

Progress Software Corporation is the OEM (Origninal Equipment Manufacturer) of Corticon software. Progress has stated via their sole source letter that Matrix Systems Group, Inc., is the only authorized reseller option for Corticon licensed products and services to the State of Illinois. This software is essential to the operation of IES. If the State does not continue procuring this Corticon software, the support and maintenance of IES would be stopped, putting Illinois' residents at risk of not receiving their entitled coverage/benefits, and the State would be at risk of losing federal funds.

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Bulletin Reference Number 26-448DOIT-INFOT-B-49176

Requesting Agency/University Department of Innovation & Technology ("DoIT")

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?

This is a DoIT standard.

Technical Reference Model v5.0 APR 2025, Business View, D76.

Alternatives were not actively considered because it would be a giant enterprise shift to migrate away from Corticon; it would likely be a process that takes at least 12-24 months. Even if this decision were made, it would be required to ensure Corticon's functionality to maintain vital State business operations while transitioning to whatever new solution may be chosen. This would result in duplicative costs to setup and maintain a new environment until full transition can occur without impacting IES business operations.

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?

To make this cost effective DOIT was able to negotiate the continuation of the "unlimited licensing" model, which is saving the State of Illinois millions of dollars in additional licensing fees. The State of Illinois was able to negotiate licensing usage and support to continue using older versions no longer marketed by Progress. This allows the State of Illinois to run more than one version of the product without duplicative licensing costs.

Without the unlimited licensing, the State of Illinois DOIT and IES would have to revert back to legacy licensing models that only include 34 total CPU Cores (between production and non-production) and 10 user licenses. IES is in need of up to 300 Cores of licensing in order to be in compliance with this product on IES infrastructure. If DOIT on behalf of IES was only to do 1 year, the initial licensing to be compliant on 300 cores would cost an estimated $55,000 per core so an approximate total of more than $16,000,000 would be necessary for new licensing and 1 year of maintenance/support.

The State's proposed procurement costs $1,386,604.85 per year. If the State were required to enter into an agreement without the unlimited licensing feature, and was required to pay for the usage currently utilized by the State, the State would expect to pay ~approximately $16,500,000 in standard annual licensing costs. By engaging this two year procurement, the State stands to save approximately $15,262,751.92 per year.

To date, the State has invested $10,808,428.82 into the Corticon software and its functionality. If an alternative vendor were selected, this $10.8 million would be essentially wasted, and the State would still be required to procure Corticon for the next year or two while migrating away from it as a solution. Based on the usage of the Corticon cores of licensing listed above, it is safe to assume that the State may need to incur approximately $15-16million annually to operate another solution that doesn't offer the State the unlimited licensing model made available by this multi-year procurement with Corticon.

The annual prices provided by the vendor increase in line with the industry's stark spikes; confirmed by Gartner research (rep: Belle Lin).

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?

Converting this system to a new platform will cost the State millions of dollars in software, hardware, contractual resources, and would take many years to accomplish. It is economically more feasible to continue utilizing the present vendor software with unlimited licensing, maintenance and support in lieu of spending such large amounts of taxpayer dollars to conduct a solicitation for a new product as well as the operational and resource costs of operating two systems until a complete switch over can be made. The risk to the IES business application, the citizens of Illinois and the possible loss of Federal Funding is too great that it outweighs a change in vendor at this time.

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

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Bulletin Reference Number 26-448DOIT-INFOT-B-49176

Requesting Agency/University Department of Innovation & Technology ("DoIT")

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 Aug 29, 2025

Printed Name Amber Wright E-mail Address Amber.Wright2@Illinois.gov

Phone Number 312-350-3696

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 christopher.brinkmeyer@illinois.gov

Phone Number 217-524-7057 Date Aug 29, 2025

Printed Name Chris Brinkmeyer

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 217-685-9312 Date Sep 2, 2025

Printed Name Joshua Sergent E-mail Address joshua.sergent@illinois.gov

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Bulletin Reference Number 26-448DOIT-INFOT-B-49176

Requesting Agency/University Department of Innovation & Technology ("DoIT")

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

Project Title

Vendor

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

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

"Business Rules Engine" - A business rule engine (BRE) is a component of software allowing non-programmers to change the business logic in a business process management (BPM) system. To carry out a business policy or procedure, a business rule or statement is required. Business logic uses data in a database and a sequence of operations to carry out the business rule.

Procurement of Corticon unlimited licensing, maintenance and support is necessary to ensure the State's ability to use both current and older versions of the Corticon software. Without the updated and maintained Corticon software, IES could incorrectly determine Medicaid, SNAP and TANF eligibility, resulting in the loss of federal funds. Entering into a two year contract term will provide uninterrupted use of the State's unlimited licensing which gives unlimited usage rights to agencies supported by the Corticon software. In addition, annual software maintenance (version upgrades, patches) as well as vendor support (trouble tickets and resolutions through technical support) are included in this procurement.

Q2Answer: Detail Items as Follows:

New Perpetual License - Corticon Server+ 6.3 - Unlimited Core Supported Platforms Maintenance Type: Standard

Maintenance Type: Standard - Progress Software

Corticon Studio / Standard 6.3 - 10 Named User -Supported Platforms Maintenance Type: Standard

Corticon Studio / Standard 6.3 - Unlimited Named User - Supported Platforms Serial# 6024228

Corticon Server+ / Standard 6.3 - 8 Core Supported Platforms Serial# 6230223

Maintenance Update - Corticon Server+ / Standard 6.3 - 26 Core - Supported Platforms Serial# 6230224

Corticon Server+ / Standard 6.3 - Unlimited Core Supported Platforms Serial# 6230225

Corticon Server+ / Standard 6.3 - Unlimited Core Supported Platforms Serial# 6230226

Corticon Studio / Standard 6.3 - Unlimited Named UserSupported Platforms Serial# 6235460

Corticon Server+ / Standard 6.3 - Unlimited CoreSupported Platforms Serial# 6235461

Corticon Server+ / Standard 6.3 - Unlimited CoreSupported Platforms Serial #: 6272254

Corticon Studio / Standard 6.3 - Unlimited Named UserSupported Platforms Serial #: 6272255 Q3Answer: The Corticon products currently in use by the IES are the only Business Rules Engine products that can operate the existing IES system.

These products are integral in the daily operations of DoIT's IES program; IES supports programs that aide the neediest citizens such as the Supplemental Nutrition Assistance Program ("SNAP") to help low-income people buy food, the Temporary Assistance for Needy Families ("TANF") program to provide temporary financial assistance for pregnant women and needy families with young children for food and shelter, and the State's Medicaid program.

Technical Reference Model v5.0 APR 2025, Business View, D76.

Alternatives were not actively considered because it would be a giant enterprise shift to migrate away from Corticon; it would likely be a process that takes at least 12-24 months. Even if this decision were made, it would be required to ensure Corticon's functionality to maintain vital State business operations while transitioning to whatever new solution may be chosen. This would result in duplicative costs to setup and maintain a new environment until full transition can occur without impacting IES business operations.

Without the unlimited licensing, the State of Illinois DOIT and IES would have to revert back to legacy licensing models that only include 34 total CPU Cores (between production and non-production) and 10 user licenses. IES is in need of up to 300 Cores of licensing in order to be in compliance with this product on IES infrastructure. If DOIT on behalf of IES was only to do 1 year, the initial licensing to be compliant on 300 cores would cost an estimated $55,000 per core so an approximate total of more than $16,000,000 would be necessary for new licensing and 1 year of maintenance/support.

The State's proposed procurement costs $1,386,604.85 per year. If the State were required to enter into an agreement without the unlimited licensing feature, and was required to pay for the usage currently utilized by the State, the State would expect to pay ~approximately $16,500,000 in standard annual licensing costs. By engaging this two year procurement, the State stands to save approximately $15,262,751.92 per year.

To date, the State has invested $10,808,428.82 into the Corticon software and its functionality. If an alternative vendor were selected, this $10.8 million would be essentially wasted, and the State would still be required to procure Corticon for the next year or two while migrating away from it as a solution. Based on the usage of the Corticon cores of licensing listed above, it is safe to assume that the State may need to incur approximately $15-16million annually to operate another solution that doesn't offer the State the unlimited licensing model made available by this multi-year procurement with Corticon.

The annual prices provided by the vendor increase in line with the industry's stark spikes; confirmed by Gartner research (rep: Belle Lin).