SSJF Part II DHS B-35652.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 5

Bulletin Reference Number 23-444DHS-MIS44-B-35652

Requesting Agency/University Illinois Department of Human Services

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

Department/Bureau/Section: Mental Health

Need Identified Date: Mar 15, 2023 Supply/Service Need By Date: Jul 1, 2023

Project Title: RxWorks Software and Support

Vendor: ARxIUM, Inc.

Provide a description of the supplies or services required: Rx Works Pro Software with Maintenance and Support for Rx Works drug inventory system.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 122,152.5

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: Jul 1, 2023

Estimated Contract End Date: Jun 30, 2024

Number of Potential Renewals:

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):

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

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Bulletin Reference Number 23-444DHS-MIS44-B-35652

Requesting Agency/University Illinois 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 01/10/2019 06/30/2019 61,036.85 RxWorks Software and Support MIS0000922 Small Purchase

2 07/01/2019 06/30/2020 99,000 RxWorks Software and Support MIS0001005 Small Purchase

3 07/01/2020 06/30/2021 78,000 RxWorks Software and Support MIS0002123 Small Purchase

4 07/01/2021 06/30/2022 99,000 RxWorks Software and Support 4100144638 Small Purchase

5 07/01/2022 06/30/2023 114,375 RxWorks Software and Support 4100163666 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:

Software is propriety and there are no resellers of this software. This software is used for the drug inventory system at the Dept. of Human Services Mental Health and Developmental Centers. It must be purchased from ARxIUM, Inc. RxWorks Pro Software with Maintenance and Support for RxWorks drug inventory system.

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

RxWorks License Fees - Inventory Management. This is needed to assure the latest software updates and any issues discovered get addressed and corrected, any performance issues that keep the system from running to the highest level get resolved. EDI (Electronic Data Interface) charges are also included that allow the vendor to update the drug product catalog and electronic invoice pricing updates that occur throughout the FY.

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 inventory system was purchased by DHS in 2015 for the inventorying of drugs and medication for 14 State Operated pharmacies.

This system has to be updated and maintained by ARxIUM as the software the system uses is proprietary software and can't be updated or maintained by any other company.

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:

Proprietary software that is necessary to operate the drug and pharmaceutical inventory system (RxWorks). Without the RxWorks License, the system would not operate and the Bureau of Pharmacy would not be able to operate without an inventory system in place.

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

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Bulletin Reference Number 23-444DHS-MIS44-B-35652

Requesting Agency/University Illinois Department of Human Services

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

The entire inventory system would have to be replaced at a cost of roughly $5 million dollars or more. This was estimated based on original costs of the system and inflation from time of purchase.

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?

Price was negotiated this year but the cost has increased by 6.8% for FY24. This is in line with the rising rate of inflation. We have also estimated the number of electronic data transactions so that they will be covered under the procurement and not result in a separate procurement later in FY24.

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 entire inventory system would have to be replaced at a cost of roughly $5 million dollars or more. DHS would also not have a drug inventory system in place and could not track roughly $6 million dollars worth of drugs annually creating numerous audit findings for the State of Illinois.

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

N/A

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Bulletin Reference Number 23-444DHS-MIS44-B-35652

Requesting Agency/University Illinois 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 Mar 24, 2023

Printed Name Julie Gillmore E-mail Address julie.d.gillmore@illinois.gov

Phone Number 217-557-0833

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 jean.sandstrom@illinois.gov

Phone Number 217-557-9298 Date Mar 24, 2023

Printed Name Jean Sandstrom

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 217-720-6771 Date Mar 24, 2023

Printed Name Kylie D. Carter E-mail Address Kylie.Carter@Illinois.gov

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Bulletin Reference Number 23-444DHS-MIS44-B-35652

Requesting Agency/University Illinois Department of Human Services

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

Project Title RxWorks Software and Support

Vendor ARxIUM, Inc.

Initial Date of Procurement Bulletin Posting 3/27/2023

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