SSJF Teleserve FY24 signed 1~1.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 7

Bulletin Reference Number 24-427DES-INFOS-B-37114

Requesting Agency/University Department of Employment Security

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

Department/Bureau/Section: IT

Need Identified Date: Apr 3, 2023 Supply/Service Need By Date: Jul 1, 2023

Project Title: Teleserve IVR System Relocation and Continued Support and Maintenance

Vendor: First Data Government Solutions, LP

Provide a description of the supplies or services required:

Relocate the existing Teleserve IVR physical equipment from the IDES Computer Room at 33 South State Street, Chicago, Illinois 60603 to the DoIT Central Computer Facility in Springfield, Illinois; and upgrade the servers to Windows 2016 and SQL Server 2017 and the latest version of AccessNet and continued Software Maintenance and Support for FY 2024.

Value: Actual Value of Initial Term, this Change Order or Amendment: 185,063.64

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)

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:

Compatibility of Equipment, Accessories, Replacement Parts or Service

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Bulletin Reference Number 24-427DES-INFOS-B-37114

Requesting Agency/University Department of Employment Security

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 Jul 1, 2022 Jun 30, 2023 80,622.64 Teleserve IVR Support & Maintenance FY23 4100161240 Small Purchase

2 Jul 1, 2021 Jun 30, 2022 80,622.04 Teleserve IVR Support & Maintenance FY22 4100139017 Small Purchase

3 Jul 1, 2020 Jun 30, 2021 100,149.05 Teleserve IVR Support & Maintenance FY21 4100126225 Small Purchase

4 Jul 1, 2019 Jun 30, 2020 114,235.43 Teleserve IVR Support, Maintenance and Upgrade FY20 4100112843 Sole Source

5 Jul 1, 2018 Jun 30, 2019 114,235.43 Teleserve IVR Support, Maintenance and Upgrade FY19 4100101196 Sole Source

6 Jul 1, 2017 Jun 30, 2018 114,235.43 Teleserve IVR Support, Maintenance and Upgrade FY18 4100001390 Sole Source

7 Jul 1, 2016 Jun 30, 2017 114,235.43 Teleserve IVR Support, Maintenance and Upgrade FY17 17C13 Sole Source

8 Jul 1, 2015 Jun 30, 2016 114,235.43 Teleserve IVR Support, Maintenance and Upgrade FY16 16C04 Sole Source

9 Jul 1, 2014 Jun 30, 2015 114,235.43 Teleserve IVR Support, Maintenance and Upgrade FY15 15C05 Sole Source

10 Jul 1, 2013 Jun 30, 2014 114,235.43 Teleserve IVR Support, Maintenance and Upgrade FY14 FY14Maint22 Sole Source

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

FY 2013-$110,999.00; FY 2012-$127,548.00; FY 2011-$111,601.00; FY 2010-$111,602; FY 2009-$95,736.00 and FY 2008-$83,317.00

Section VI - Business Rationale

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Bulletin Reference Number 24-427DES-INFOS-B-37114

Requesting Agency/University Department of Employment Security

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

The Illinois Department of Employment Security's (IDES) objectives for this procurement is to continue to provide technical maintenance and support of the Teleserve Interactive Voice Response (IVR) AccessNet WinRIMS software for the fiscal year 2024.

However, the IDES Central Office located at 33 S. State Street, Chicago, Illinois 60603 is relocating to a new space in a State of Illinois owned facility and as a result, the IVR system which is currently located within the Central Office will be relocated to Springfield. In addition, the IVR server and software upgrade are needed because the current system is out of support. As a result of the IVR relocation, existing Teleserve IVR physical equipment that is currently located in the IDES Computer Room in Chicago, will be moved to the DoIT Central Computer Facility in Springfield, Illinois; and the servers will be upgraded to Windows 2016 and SQL Server 2017 as well as the latest version of AccessNet. The relocation to Springfield is because the Central Office lease is expiring in January 2024 and the server and software upgrade are because the current system is out of support. As of January 2020, Microsoft no longer supports Windows Server 2008 and extended support for Microsoft SQL Server 2008 ended in July 2019. The IDES application needs to be upgraded to work with Windows Server 2016 and SQL Server 2017 and the latest version of AccessNet. The system upgrades will ensure the current IDES application works with the new hardware and latest software in the new location/network and to ensure the IVR and the local admin web reporting systems maintain their current functionality. The Teleserve IVR is critical to the operation of the Agency's unemployment compensation system (Illinois Benefit Information System [IBIS]). This telephone certification application (in addition to an on-line certification process) allows claimants to certify as to their eligibility for continued unemployment benefits. The relocation project is anticipated to take take from 3 to 4 months depending on availability of the DoIT Datacenter staff. In any case it must occur well ahead of the relocation of DES’ Central Office.

The current contract for Maintenance and Support expires on 6/30/23 with no renewal options. If support is not maintained, claimants will be unable to certify as to their continued eligibility for benefits and could not claim their bi-weekly unemployment benefits to which they are entitled. Because the current system is out of support, IDES is running the risk that if there is a server failure, it could not be remediated. There is no need to purchase the required servers or operating systems as the hardware will be provided by DoIT at the Datacenter in Springfield. DoIT will also be responsible for setting up the severs so they meet the requirements to run the Teleserve application, network assistance for firewalls and also perform user acceptance testing. First Data will provide project management for the relocation and perform the AccessNet framework custom application installation as well as continued support and maintenance.

This will save the agency money on support and maintenance costs in the long run.

The relocation of the IVR system is required due to the agency's central office move to a new location and the lack of space to house the system in the new facility. The upgrade of the servers to Windows 2016, SQL Server 2017 as well as the latest version of AccessNet are required because the current system is out of support which puts the agency at risk. If Teleserve fails, the telephone certification application will malfunction and thousands of claimants will not be able to certify and will not be paid the benefits to which they are entitled. Consequently, there is a need for support and maintenance from First Data who custom-developed and owns the Teleserve IVR (telephony, AccessNet, specific Win RIMS custom applications) software. IBIS was designed and implemented to ensure Teleserve, and IBIS applications continue to function properly with minimal downtime. First Data is the only licensed, authorized provider for Maintenance and Support of the IVR system.

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

The agency will be responsible for relocating the servers and making sure they meet the requirements to run the Teleserve applications.

IDES will also need to provide the vendor access through its firewalls. First Data will handle the installation and configuration of their software and provide support and maintenance for that software. First Data will provide Project Management and Business Analyst functions to provide specifications for the new hardware environment to be established at the State's Central Data Center as well as operating system software. After the environment is built they will review application code and identify and code changes that may be required because of the hardware and software upgrade. First Data will then test any changes made prior to deployment to the production environment. In conjunction with Data Center staff the vendor will install the application software to the new environment.

First Data will also provide continued Support and Maintenance.

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Bulletin Reference Number 24-427DES-INFOS-B-37114

Requesting Agency/University Department of Employment Security

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?

In addition to continued Software Maintenance and Support for the Interactive Voice Response system the purpose of this procurement is the deployment of the application software to a new State supported environment on up to date hardware and operating system software. However, the application code is proprietary to the vendor. IDES is not seeking a rewrite or redesign of the application just the migration to a new environment. First Data developed the original application and database using its trademarked AccessNet development platform. It is the sole owner of AccessNet and will not authorize any other vendor to service its AccessNet based applications. Accordingly, there is no other company that can support the Teleserve application as the application is proprietary and supported solely by the vendor. In order for the relocation of the IVR system to be successful, the vendor must be able to manage the relocation and hardware/software upgrade.

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:

-AccessNet: a trademarked system for providing payment processing via online databases which allows for UI claim benefits to be processed and for eligible claimants to be paid through full integration with IDES' customized IBIS application.

-WinRims: the client which determines the content type of the HTTP response from the destination computer.

-Interactive Voice Response (IVR): voice and touch-tone response integration allow for the delivery of up-to-date, real-time IBIS account information; available ports precisely calculate to ensure minimal UI benefits certification call time.

-Telephony: allows for the electronic transmittal of information between two, distant parties.

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?

Research done by the IDES Procurement unit indicates that while there are telephone, telecommunications, and Voice over Internet Protocol (VoIP) providers, none of these providers would be able to configure a telephone service with the Agency's IBIS system due to First Data's legal and proprietary ownership of AccessNet and WinRIMS software, would be required. Another service provider would be required to create an entirely new software system and IBIS would need to be replaced. Therefore, the agency would be required to replace both its Teleserve system, as well as it's UI claimant benefits system.

This telephone certification application is proprietary to First Data Government Solutions. Accordingly, there is no other company that can provide upgrades to the AccessNet application because First Data is the sole owner of AccessNet and First Data does not authorize any other vendor to service its AccessNet-based applications. There are other solutions. However, IDES is satisfied with the current application and does not see a need for another vendor to develop a new application at a much higher cost than it would cost the agency to just simply relocate the current software on to up-to-date server hardware at the DataCenter. IDES does not currently have the available funds to establish an entirely new system that would come with conducting a competitive solicitation.

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?

IDES believes that the vendor's rates for the relocation are standard industry rates for this type of engagement. In fact, the rates are comparable to similar IDES project management contracts such as DSN for IBIS support and Fast Enterprises for Gentax and Short-time Compensation contracts. In addition, it should be noted that IDES will not have to purchase the upgraded server hardware as it will be provided by the State, i.e. DoIT. It is the most current version of Windows servers available and meets DoIT standards. There is no need to purchase the required servers or operating systems as the hardware will be provided by DoIT at the Datacenter in Springfield. The vendor will be providing their proprietary dialogic software that basically interfaces between the Telco Provider’s service and the voice servers that operate the application software. The FY24 rate for support and maintenance is the same as the previous fiscal year and less than FY08 through FY21.

The cost of the Server Relocation Project will be $104,441.00 with $13,500.00 spent on project management, $47,250.00 spent on Development and Installation, $36,941.00 spent on Licenses and $6,750.00 spent on Quality Assurance. First Data will also be providing annual support and maintenance at the cost of $80,622.64. That makes the total amount for Fiscal Year 2024 $185,063.64.

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Bulletin Reference Number 24-427DES-INFOS-B-37114

Requesting Agency/University Department of Employment Security

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

Yes No

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

IDES would continue to need Software Support and Maintenance for the Teleserve IVR system.

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?

IDES relies on two portals to intake unemployment compensation claimants' bi-weekly eligibility certifications. Certification that claimants are available and actively seeking employment is required by the State Unemployment Insurance Act and UI benefits cannot be paid without certifications. Claimants may certify online or by using the Teleserve Interactive Voice Response telephone certification application process. Many claimants are unable or do not feel comfortable certifying on-line. This critical application which allows approximately 20,000 unemployment insurance claimants to certify for their payments each week would be in danger of not working as the existing hardware and software would be out of support and there is no sufficiently suitable space to relocate the system to in IDES' new Chicago facility.

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

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Bulletin Reference Number 24-427DES-INFOS-B-37114

Requesting Agency/University Department of Employment Security

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 Thomas Revane E-mail Address Thomas.Revane@illinois.gov

Phone Number 312-793-9130

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 Nia.D.Imani@illinois.gov

Phone Number 312-793-2825 Date

Printed Name Nia Imani

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 217-720-6643 Date

Printed Name David Papp E-mail Address David.Papp@illinois.gov

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Bulletin Reference Number 24-427DES-INFOS-B-37114

Requesting Agency/University Department of Employment Security

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

The current contract for Maintenance and Support expires on 6/30/23 with no renewal options. If support is not maintained, claimants will be unable to certify as to their continued eligibility for benefits and could not claim their bi-weekly unemployment benefits to which they are entitled. Because the current system is out of support, IDES is running the risk that if there is a server failure, it could not be remediated. There is no need to purchase the required servers or operating systems as the hardware will be provided by DoIT at the Datacenter in Springfield. DoIT will also be responsible for setting up the severs so they meet the requirements to run the Teleserve application, network assistance for firewalls and also perform user acceptance testing. First Data will provide project management for the relocation and perform the AccessNet framework custom application installation as well as continued support and maintenance. This will save the agency money on support and maintenance costs in the long run.

The relocation of the IVR system is required due to the agency's central office move to a new location and the lack of space to house the system in the new facility. The upgrade of the servers to Windows 2016, SQL Server 2017 as well as the latest version of AccessNet are required because the current system is out of support which puts the agency at risk. If Teleserve fails, the telephone certification application will malfunction and thousands of claimants will not be able to certify and will not be paid the benefits to which they are entitled. Consequently, there is a need for support and maintenance from First Data who custom-developed and owns the Teleserve IVR (telephony, AccessNet, specific Win RIMS custom applications) software. IBIS was designed and implemented to ensure Teleserve, and IBIS applications continue to function properly with minimal downtime. First Data is the only licensed, authorized provider for Maintenance and Support of the IVR system.

Q2Answer: The agency will be responsible for relocating the servers and making sure they meet the requirements to run the Teleserve applications. IDES will also need to provide the vendor access through its firewalls. First Data will handle the installation and configuration of their software and provide support and maintenance for that software. First Data will provide Project Management and Business Analyst functions to provide specifications for the new hardware environment to be established at the State's Central Data Center as well as operating system software. After the environment is built they will review application code and identify and code changes that may be required because of the hardware and software upgrade. First Data will then test any changes made prior to deployment to the production environment. In conjunction with Data Center staff the vendor will install the application software to the new environment. First Data will also provide continued Support and Maintenance.

-WinRims: the client which determines the content type of the HTTP response from the destination computer.

-Interactive Voice Response (IVR): voice and touch-tone response integration allow for the delivery of up-to-date, real-time IBIS account information; available ports precisely calculate to ensure minimal UI benefits certification call time.

-Telephony: allows for the electronic transmittal of information between two, distant parties.

This telephone certification application is proprietary to First Data Government Solutions. Accordingly, there is no other company that can provide upgrades to the AccessNet application because First Data is the sole owner of AccessNet and First Data does not authorize any other vendor to service its AccessNet-based applications. There are other solutions. However, IDES is satisfied with the current application and does not see a need for another vendor to develop a new application at a much higher cost than it would cost the agency to just simply relocate the current software on to up-to-date server hardware at the DataCenter. IDES does not currently have the available funds to establish an entirely new system that would come with conducting a competitive solicitation.

The cost of the Server Relocation Project will be $104,441.00 with $13,500.00 spent on project management, $47,250.00 spent on Development and Installation, $36,941.00 spent on Licenses and $6,750.00 spent on Quality Assurance. First Data will also be providing annual support and maintenance at the cost of $80,622.64. That makes the total amount for Fiscal Year 2024 $185,063.64.